FRAMEWORK FOR ACHIEVING TOTAL ENTERPRISE ASSET MANAGEMENT

Terry Wireman, Vesta Partners

Stamford, CT +1 203 517 0400 Burlington, YOUR PREMIER SAP EAM PARTNER ON +1 289 337 1793

1 The Hague, NL +31 (0) 70 220 9720

Melbourne, AU +61 3 8676 0672

ENTERPRISE ASSET MANAGEMENT

! What is it?
Asset Management at an Enterprise Level

! What is Asset Management?

PAS-55 and ISO-55000 will help your understanding

! How do we do this at an Enterprise Level?

Organizationally and Processes

YOUR PREMIER SAP EAM PARTNER

PAS 55 ASSET MANAGEMENT STANDARD

YOUR PREMIER SAP EAM PARTNER

LESSONS LEARNED FROM PAS-55

! Since PAS-55 has existed since 2004, what are some of the lessons that can be learned ! How will this information help companies striving to improve asset management in the future?

YOUR PREMIER SAP EAM PARTNER

PAS 55 SURVEY

YOUR PREMIER SAP EAM PARTNER

PAS 55 SURVEY

YOUR PREMIER SAP EAM PARTNER

PAS 55 SURVEY

YOUR PREMIER SAP EAM PARTNER

PAS 55 SURVEY

YOUR PREMIER SAP EAM PARTNER

THE EVOLVING ISO-55000 STANDARD

! Since ISO-55000 is on track to become a standard, how will it impact companies trying to achieve enterprise asset management

YOUR PREMIER SAP EAM PARTNER

ASSET MANAGEMENT/ ASSET MANAGEMENT SYSTEM

YOUR PREMIER SAP EAM PARTNER

10

ISO - 55000

YOUR PREMIER SAP EAM PARTNER

11

FRAMEWORK TO ACHIEVE PAS-55 AND ISO-55000 DRAFT

! Asset Management ! Systems Engineering

Life Cycle

! How do we achieve it? ! Eating the Elephant Strategy

YOUR PREMIER SAP EAM PARTNER

12

VTEAM FRAMEWORK
Identify Business Drivers for Change D ev elop Vis ion an d S trategies
Fundamentals Effectiveness Efficiency

Asset & Project Management Maintenance & Work Management Foundation & Integration Software & Technology
.

Measure & Manage Education & Change Vesta Project Management

Education & Change

YOUR PREMIER SAP EAM PARTNER

13

A KEY FIRST STEP

Iden%fy Business Drivers for Change Develop Vision and Strategies

YOUR PREMIER SAP EAM PARTNER
14

IMPROVEMENT EFFORTS TAKE TIME AND PHASES

Fundamentals

Effectiveness

Efficiency

! After the survey and assessment are completed and the final report is developed, a decision can be made as to what elements of the VTEAM framework are suitable for the improvement process and will provide the maximum financial benefit ! A phased approach is typically appropriate and should be staged/ timed with a related SAP-EAM system implementation/change ! Since every company environment and situation is different, it would be necessary to plan a strategy session following the assessment to determine next steps for the specific company, based on their needs
YOUR PREMIER SAP EAM PARTNER
15

SUPPORT THE ENTIRE LIFECYCLE OF THE ASSET

HQ

Plan
V.P. Opera%ons Maintenance Engineering

Audit/ Re%re

Design/ Engineer

Opera%ons

Acquire Construct Operate Commission

Maintain

YOUR PREMIER SAP EAM PARTNER

16

Enterprise Asset Management

Plan Plant Management Maintenance Engineering Audit/ Re%re

HQ

Design/ Engineer

Opera%ons

V.P. Opera%ons
Maintain Construct Commission Operate

Acquire

Plan

Plant Management Maintenance Engineering Audit/ Re%re

Design/ Engineer

Opera%ons

Acquire Construct Commission Operate

Maintain

Plan

Plant Management Maintenance Engineering Audit/ Re%re

Plan

Plant Management Maintenance Engineering Audit/ Re%re

Design/ Engineer

Opera%ons

Design/ Engineer Maintain

Opera%ons

Acquire

YOUR PREMIER SAP EAM PARTNER Operate Construct

Commission

17

Acquire Construct Commission Operate

Maintain

Enterprise Asset Management The Requirement for Success

Plan Plant Management Maintenance Engineering Audit/ Re%re

Chief Asset Ocer

HQ
V.P. Opera%ons V.P. Maintenance

Design/ Engineer

Opera%ons

Acquire Construct Commission Operate

Maintain

V.P. Engineering

Plan

Plant Management Maintenance Engineering Audit/ Re%re

Design/ Engineer

Opera%ons

Acquire Construct Commission Operate

Maintain

Plan

Plant Management Maintenance Engineering Audit/ Re%re

Plan

Plant Management Maintenance Engineering Audit/ Re%re

Design/ Engineer

Opera%ons

Design/ Engineer Maintain

Opera%ons

Acquire

YOUR PREMIER SAP EAM PARTNER Operate Construct Commission

18

Acquire Construct Commission Operate

Maintain

V-TEAM LIFE CYCLE MANAGEMENT

Asset Design Capital Projects Operations and Maintenance

Asset Portfolio Management Asset Business Requirements Asset Capabilities New Asset Specifications New Asset Designs

Asset Project Management Project Planning Project Execution/ Construction Project commissioning As-Built Project Evaluation

Asset Life Value Activities Operations Inspections Maintenance and Work Management processes Data Tracking and Documentation Decommissioning and Disposal Tracking

YOUR PREMIER SAP EAM PARTNER

19

VTEAM FRAMEWORK Process and Technology links

Identify Business Drivers for Change and Develop Vision and S trategies
Asset & Project Management

Fundamentals

Effectiveness

Efficiency

Critical Assets Defined and level maintained

Standard Process for Health Index

Program Development

Vendor/ Contractor Selection

Project Planning and Budgeting

Project Scheduling and Execution

Program Scoring and Ranking

EVA Earned Value Assessment

Maintenance & Work Management

PM Program & Inspections

Stores and Procurement

Work Order Discipline

Planned & Scheduled Maintenance

Work Assignments and Dispatching

Work Order Documentation and Closing

PDM/ CBM Programs

Reliability Strategies (RCM)

Foundation & Integration

Master Data Definition & Standards

Document Management

Management of Change

EH&S Fundamentals

Master Data Management

Operations Involvement

TPM Total Productive Maintenance

Asset Lifecycle Management

Software & Technology

Core SAP EAM with Integration

Enhanced Planning & Scheduling

Project Systems and Portfolio Management

Enhanced Software with integration

Enhanced Reporting

Advanced Usability & Mobility

Expand Usage including Asset Lifecycle Tracking

Decommission and Disposal Data Tracking

YOUR PREMIER SAP EAM PARTNER

20

VTEAM FRAMEWORK People and Other Enablers

Identify Business Drivers for Change and Develop Vision and S trategies
Measure & Manage

Fundamentals

Effectiveness
Staffing Allocations (including Contractors)

Efficiency

Critical Equipment/ Process

Benchmarks and Financials

KPIs for Processes

Cost Management

Enhance KPIs for Processes

Financial Optimization

Continuous Improvement

Education & Change

Leadership, Communication and Change Process

Roles and Responsibilities with Clear Accountability

Training & Qualification Needs Analysis

Systems and Work Process Training

Knowledge Capture

Ongoing Training & Qualification Activities-focus new processes

Advance Workforce Deployment And Training

Review and Revise continual change process

VPM Vesta Project Management

Project Requirements, Scope, Planning & Controls

Project Risk, Quality & Customer Satisfaction

Prototyping & Knowledge Transfer

SAP EAM Full Lifecycle Project Methodology

SAP Optimization Project Methodology

Technical Project Methodolgy

YOUR PREMIER SAP EAM PARTNER

21

IN SUMMARY
! VTEAM is a set of enablers to help a company not just implement software for EAM but achieve full value or Total EAM ! A key first step is setting the right business drivers with a vision and a strategy of the end goals ! A phased approach is necessary unless a company has already completed many of the foundational steps ! It is not a cook book but a set of tools that can be used to accelerate improvements for maintenance and asset management

YOUR PREMIER SAP EAM PARTNER

22

QUESTIONS?

! Terry Wireman ! VestaPartners, LLC ! Twireman@vestapartners.com ! ! ! ! ! ! Brian Moore Vice President Vesta Canada +1 416.805.6625 (mobile) +1 289.337.1793 (office) bmoore@vestapartners.com

YOUR PREMIER SAP EAM PARTNER

23