Leveraging Your CMMS – From Selection to Daily Use

John Gould

Sr. Principal Consultant, JFC & Associates

Learning Objectives:

1. Identify the proper selection criteria for a CMMS

2. Establish the tools to aide in defining your CMMS functional requirements

3. Describe the difference between integration and enterprise application integration

4. List the best practice considerations for CMMS

Food for thought…

You cannot manage something you cannot control.

You cannot control something you cannot measure.

Defining CMMS A CMMS is part of the information, management and control system for the maintenance function, whose purpose is to maintain facilities and buildings in working order so that they are capable at all times of meeting their design intent in an efficient and economical manner.

The computerized management tool is thus an aid to tracking, archiving, analyzing, and decision-making.

By The Numbers

What is a 1% Improvement Worth? • Energy (what do we spend on utilities?) • Asset availability (are we operating 24/7?) • Operator/trades utilization & efficiency (are we labor intensive?) • Asset life (are we capital intensive?) • Response time (how spread out are our facilities?) • Safety (what do we pay in workers comp?) • Production line speed/output (can we push through more volume

with better asset performance?) • Spare parts inventory level/turns (are we inventorying the right

spares to avoid catastrophic downtime?) • Inventory service level (are parts there when we need them?) • Quality of output, i.e. rejects, rework, returns, loss, giveaway,

shrinkage, yield and waste (what is cost of poor quality?)

Where does your organization stack up?

The Goal

Start with a SMARTER Goal

• Specific

• Measurable

• Attainable

• Relevant

• Timely

• Evaluate

• Reevaluate

Benchmark

You need to know where you are now, to know if you are getting where you want to be.

FAILING TO PLAN = PLANNING TO FAIL

Selection Criteria • Develop the selection committee

– Functional, technical and managerial

• Review current system

• Review business processes

• Homework – research alternatives

• Engage all users who ‘touch’ the CMMS

• Organizational Analysis – Top level view of the organizational processes mapped to current system

• Define data deliverables (reports, KPI’s, external analysis)

Selection Criteria • Define new key requirements (must haves) • Determine mobility roadmap (if not yet

determined/being used) • Communicate the vision with all the stakeholders • Field Trips – visit similar/leading practice sites with

various CMMS in place • Request onsite demonstrations from Vendors • Define requirements for RFP

– Do you need to have a system capable of integrating with other enterprise level systems?

• Put out to bid / up for recommendation

Integrations vs. Enterprise Application Integration

• Integrations – The term data integration refers to reducing data

redundancy and establishing "links" (relationships) between data objects in order to get to all of the data that was previously not easily accessible.

• EAI – EAI stands for Enterprise Application Integration. EAI is

middleware that allows one application or database to "communicate" with another application or database, which creates a "bridge" between existing systems.

Enterprise Application Integration

• Enterprise Application Integration is important only if you’re willing to develop the process

• Valuable when performing real-time analytics

• Benefits for financial integrations (billing, internal and external invoicing)

• Takes multiple sources of data entry and reduces to one location to be consumed by multiple systems.

Functional Requirements • What is your business and the processes that surround

the maintenance function? • Do you require mobility in your workforce? • What type of reporting do you need to make

information based maintenance decisions? • Who is managing the data and data entry/validation

process? • What type of real time analytics are you performing? • Do you require integrations with other systems? • Are you using other tools currently that could be

combined into a single platform?

Defining Functional Requirements • Establish Key Stakeholders – communicate the

desire to implement/change CMMS • Coffee sessions / cross functional • Whiteboard sessions • Flowcharts of current business process • Flowcharts of desired business process

improvements • Establish standards for Data

– Needs to happen prior to installation

• Communication

Closing Thoughts on Selection • Implementing or upgrading a CMMS is as much a

technology project as it is a change management project.

• Most organizations only realize 9% of the full functionality of the CMMS due to a variety of different factors. – First on the list – those who implement not considering the

impact to the culture of the organization.

• Take the time to make the project as much about the function of the business process as you do the technology behind it.

Implementation • Get buy in and commitment from management

– Both financial and attitude

• Define requirements including goals, expectations, hardware, and timelines. – Down to the team member level

– Accountability is key

• Provide visibility into the project – Set project milestones that everyone can see

– Shared documentation

Implementation • Training – ensure that you have the right blend of

training for the right people at the right time

• Documentation – document everything that you do! Process, agendas, schedules. The good and the bad!

• Go Live with the system when you are absolutely ready, not just a date that you pick.

• Continuous improvement: Review, renew, refine, and customize.

Always moving forward…

Yesterday's Excellence

is

Today's Standard

and

Tomorrow's Mediocrity

Important Considerations • Define needs and requirements clearly • Involve the IT department early • Evaluate all options and alternatives • Data conversion (transfer between systems)

– Both level of effort and costs associated with bringing data to the system

• Not enough testing prior to rollout • Bad legacy data brought to new system • Training…and more training!

– Not only training but timely training

• Explore the use of external professional services

Leading The Way • Web Based Applications • Asset Hierarchy • Spare Parts Management • Work Order Generation

– Automated? Phone Call? EAI?

• Transparency and Access To Information • Warranty Tracking • Procurement and Strategic Sourcing • Credentials and Qualifications Management • Lockout/Tagout / Hazards and Precautions and Safety Plans • Integration With Mapping (Google/Bing Maps)

Leading The Way – Process Management • Condition Monitoring

– Meter versus time based maintenance

• Escalation Management • Work Flow Process

– Has it been automated?

• MTBF, OEE, FMEA, TPM, BIM, GIS/Spatial • Data Governance

– Are you tracking 100% of all material use and labor transactions in your CMMS?

• Analysis – Whose job is it?

• Mobile work force – Why is it important?

Mobility And Information

Pyramid of Wisdom

Wisdom

Knowledge

Information

Data

Turning Data Into Wisdom • KPI’s – A financial or non-financial metric used to

help an organization define and measure progress toward organizational goals.

• Forms of KPI’s – Management dashboards – Reports run ad-hoc – Simple calculations – Scheduled reports

• Need to look at both Leading (doing right now) and Lagging (how we did) Indicators

Maintenance Related Measurement Units Frequency Definition

New Work Orders Number Daily/Weekly Total number of new work orders reported

Past Due Work Orders Number Daily/Weekly Total number of work orders past targeted start date

Current WO Backlog Labor Hours Daily/Weekly Total labor hours required for all remaining non PM work orders

Current PM Back Log Labor Hours Daily/Weekly Total labor horus required for all outstanding PM work orders

Reported vs. Completed

Number Daily/Weekly Number of work orders reported versus completed within a desired time frame

Maintenance Related Measurement Units Frequency Definition

Schedule Compliance Percent Daily/Weekly Work orders planned to be started divided by the actual work orders started in a defined period

Estimating Accuracy Curve Distribution curve of actual vs. estimated labor and material costs grouped by function

MTBF Number/Time Quarterly Average time between failures of a particular asset or asset class

Work Type Distribution

Pie Chart Weekly Distribution of Corrective, Breakdown, Capital Projects, Predictive and Preventive Work Orders.

Follow-up to PM Ratio Percent Monthly Measure of the effectiveness of the PM program (asset or asset class specific)

Supply Chain / Materials Management Measurement Units Frequency Definition

Total Value of Inventory

Dollar Weekly/Monthly The total dollar value of maintenance materials in stock (excludes process chemicals & fuels). Used to demonstrate effective stock utilization.

Number of Reserved Inventory

Number Daily/Weekly Total number of inventory reservations made in a given time period

Items above MAX Level

Number Quarterly Total number of items above maximum quantity defined in system

Supply Chain / Materials Management Measurement Units Frequency Definition

Inventory Turns Number Monthly Value of Inventory issued divided by the average inventory for the period.

Stocks Outs (aka Backorder)

Percent Monthly The percentage of inventory request that could not be fulfilled with inventory items in stock.

Potential Obsolete Parts

Number Quarterly Number of parts in the system not issued to work orders within a defined period of time.

Vendor Lead Time Compliance

Percent Monthly A vendor analysis metric that shows the actual lead time compliance compared to the promised lead time.

Other KPI Metrics To Consider • Percent of emergency work (% of work orders and % of total time) • Percent of maintenance work that is actually planned by a planner (% of

work orders and % of total time) • Percent of work orders that are started within a week of notification • Percent of work orders that are completed within a week of notification • Percent of work that is PM and PdM (% of work orders and % of total time) • Percent of PM and PdM work that is completed on time (% of work orders

and % of hours) • Percent of maintenance work that is overtime (budget and actual) • Percentage of maintenance work that starts on time, per the schedule (%

of work orders and % of total time) • Percentage of planned maintenance work that is completed within 10% of

estimated time

Bringing us back to…

Questions?

John Gould

JFC & Associates

Enterprise Asset Management Consulting

617-365-1158

jgould@jfc-associates.com