HIGH PERFORMANCE ASSETS REVVING UP YOU REVENUE GENERATING ENGINES

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1 HIGH PERFORMANCE ASSETS REVVING UP YOU REVENUE GENERATING ENGINES Charnvithya Sresthadatta IBM Tivoli, Advisory Sales Specialist

2 2 Agenda Overview of Enterprise Asset Management (EAM) Manufacturing Industry Market Dynamics Maximo Asset & Service Management Customer Stories

3 Asset Management Challenges Reduce Asset Downtime Extending Asset Life Scheduling Preventive Maintenance Implementing Capital Saving processes such as Warranty Management and Streamlined Procurement 3

4 4 What Is Enterprise Asset Management (EAM)? Enterprise Asset Management (EAM) is an integrated solution used to design, build, procure, operate, maintain, modify and dispose an enterprises assets such as the buildings, real estate, facilities, fleet and plant equipment, IT equipment and networks over the assets life cycle, as well as the inventory and human resources associated with maintaining those assets. Examples of Assets tracked and managed by an EAM Solution Utilities... plants, pumps, generators, and substations Transportation organizations crews, mixers, and sub-contractors... Fleet trucks, buses, heavy equipment, rail cars Seaports ships, cranes, platforms, and forklifts Airlines... planes, cargo handling equipment... Facilities buildings and grounds... Healthcare... hospitals, health care equipment Pharma FDA compliance mfg.. IT. servers, workstations, software, help desk

5 What is Maximo? Maximo is a Solution for Enterprise Asset Management. Manage critical assets from a single platform. It supplies you with tools to optimize operation of your organization by (some samples); Reduce Maintenance cost by Improve maintenance procedures Better utilize resources Reduce Inventory cost by Measure and predict material usage Optimize storeroom levels by analyzing historical transactions Optimize Return on Asset by Better utilize existing assets Expand lifecycle by better maintenance

6 Leading Suppliers of Enterprise Asset Management IBM Source: ARC Advisory Group, 2007

7 Magic Quadrant for Enterprise Asset Management for Transmission and Distribution, 2007

8 Magic Quadrant for Power-Generating Company EAM Software, 2007

9 Industry Short List: Work and Asset Management for Energy Delivery Market

10 Maximo Strong Market Position 7 of the 12 largest ENERGY companies in the world are using Maximo Software 8 of the 10 largest OIL & GAS companies in the world are using Maximo Software 7 of the 9 largest AEROSPACE & DEFENSE companies in the world are using Maximo Software 6 of the 6 largest AUTOMOTIVE companies in the world are using Maximo Software 13 of the 13 largest PHARMACEUTICALS companies in the world are using Maximo Software 6 of the 9 largest COMPUTERS & OFFICE EQUIPMENT companies in the world use Maximo Software 11 of the 15 US Federal Cabinet Agencies use Maximo Software

11 1 1 Maximo has broad industry appeal

12 1 2 Agenda Overview of Enterprise Asset Management (EAM) Manufacturing Industry Dynamics Asset & Service Management Customer Stories

13 Market Dynamics Economic Pressures Do more with less Sweat the Assets Maintain Product Quality Manage Waste Labor Resources Raw Materials Energy Grow the Business The Goal: Highest amount of Throughput at the desired level of Quality at the target cost Environmental Concerns Green is Gr$$n Operational Hurdles Globalization/Multi Site Cultural Change Manage to Production Schedules Data Risk Management Regulatory Compliance Health & Safety Customer Expectations Competition Technological Challenges Short & Long term Costs Siloed Systems Justifying Focus on Maintenance, Repair & Operations

14 Enabling New Services/Revenue Sources Tear down Corporate Silos (operations & maintenance) Treat Asset Mgmt as a Service to the Customer (internal & external) Agree on Enterprise and Local Metrics & Service Levels (SLAs) Establish Proactive Means to meet SLAs Level 5 Level 4 Value Level 1 Chaotic Level 2 Reactive Level 3 Proactive Calendar & Meter Based Maintenance Predictive Condition Based Maintenance Enterprise Service Mgmt Maturity

15 Value Creation Economic Pressures Redefining Core Business. Back to Basics Reevaluating Processes Rationalizing Systems Benchmark & Measure Create New Sources of Revenue ASSET ASSET MANAGEMENT PLANNED PLANNED WORK WORK GENERATION GENERATION WORK REQUEST GENERATION WORK ORDER MANAGEMENT MANAGEMENT RESOURCE MANAGEMENT UTILITIES FACILITIES UTILITIES VEHICLES VEHICLES EQUIPMENT EQUIPMENT FACILITIES FACILITIES NFADB ALFA APMM NFADB ALFA APMM NFADB MAINS MAIN SAVER SAVER E/S E/S N FTS NF FTS AINTENANCE PLANNED SYS MA AINTENANCE STEM Single Platform Maximo MANUAL FORMS MANUAL FORMS PLANNED M SYST TEM CM CM E/S E/S AIS LRMP ESTIMATER AIS LRMP ESTIMATER E/S E/S DESIGN DESIGN SKED SKED CONT CIS CIS CONT QRW QRW EST TIMATER SPACE MA ANAGEMENT HRMSLABOR LABOR MATERIAL MATERIAL EQUIPMENT EQUIPMENT CONTRACTS CONTRACTS DOGSHEETS CTARS MRI MIP CMARS DOGSHEETS CTARS CTARS MRI MIP CMARS LABOR MATERIAL EQUIPMENT EQP EQP SPS SPS HUMAN RES MNG SPS SPS HAZMAT MNG HUMAN OTHER RES MNG HAZMAT MNG ESTI MEANS MATER M EANS ME EANS JOB ORDER COSTING FINANCIAL FINANCIAL REPORTS REPORTS PC PC DATABASES DATABASES SPREADSHEETS SPREADSHEETS FINANCIAL MANAGEMENT CUBIC FINANCIAL FINANCIAL SYSTEM FINANCIAL SYSTEM SYSTEM (Future ERP)

16 1 6 Agenda Overview of Enterprise Asset Management (EAM) Manufacturing Industry Dynamics Maximo Asset and Service Management Customer Stories

17 1 7 Maximo Enterprise Suite

18 1 8 Maximo Enterprise Suite Asset Work Materials Purchasing Contract Service Management Management Management Management Management Locations Asset Failure Codes Condition Monitoring Meters Meter Groups Job Plans Routes Service Requests Service Items Work Order Tracking Safety Quick Reporting Labor Qualifications Lock-Out/Tag-Out Tools /Crafts/Companies Preventive Maintenance Master PM Assignment Manager Item Master Storerooms Inventory Lot Management Kitting Issues & Transfers Condition Codes Stocked Tools Service Items Request for Quotation Receiving Receiving Inspections Purchase Requisitions Invoices Purchase Orders Desktop Requisitions Purchase Contracts Master Contracts Warranty Contracts Lease/Rental Contracts Labor Rate Contracts Payment Schedules Service Catalogs SLA Management Incidents Problems Changes Releases Solutions Enhanced Workflow Event Driven, Context-based / Escalation Manager KPIs / Reporting / Analysis Security & Administration

19 1 9 How Does An EAM System Fit Into The Enterprise Landscape? Human Resources Procurement ERP General Ledger Payroll Fixed Assets Accounts Payable Accounts Receivable Inventory Management Integrated For Optimal Enterprise Performance Calibration & Inspections Bar Code Systems & RFID EAM Asset Tracking Reporting & KPI s Work Management PM, PdM & RCM Inventory Management Electronic Document Management

20 IBM Maximo Mobile Work Manager Standard Features Asset & Location Details History, soy, Meters, Spare Parts, etc. Multiple Assets and Locations on Work Orders Move/Swap/Modify Job Plans Safety plans Scheduled Dates & Priorities Identify and Create Work Orders, Service Requests Route/Rounds Management Reporting Actuals Labor Time Asset Downtime Meter Readings Observations & Inspections Failure Reports Attached Documents Barcode / RFID support Supports Work Orders, Service Requests, Incidents, Problems, Changes and Releases Calibration Option Calibration data entry Datasheets

21 IBM Maximo Mobile Inventory Manager Physical Count of Items in Storerooms Issue of parts to work orders and laborers Return of parts to storeroom Transfer of inventory between storerooms PO Receiving (With inspections & serialization) Barcode / RFID** support

22 IBM Maximo Screenshots

23 Self Service Applications for Service Requests

24 Startcenter tailored to the role, and can be configured by end user

25 Management views with KPI s

26 Trending Analysis and comparing KPI s

27 Defining your SLA s definitions and commitments

28 Included reports for analysis Total 140 reports across ITSM, ITAM and EAM Automated Escalations for Pro-active Service Management

29 Use Drag/Drop to build your Workflow process

30 Configure your screens with Drag/Drop and field parameters, lookups etc.

31 Sample ERP integration Customers Using Maximo

32 3 2 The Value of Asset Management Reduce downtime Maximize output Improve planning & scheduling Manage risk Highest reliability Compliance Framework Maximizing Return on Assets Limited Resources Retain Knowledge Visibility Comply with Regulations Lowest cost Reduce labor costs Reduce Inventory

33 3 3 Moving forward Taking you from here to here.

34 3 4 Its not just about the asset it s about what the asset does it s about service delivered to the customer

35 3 5 Customer Benefits and Demonstrated Value Labor Utilization UP 10-20% Asset Utilization UP 3-5% Equipment purchases DOWN 3-5% Warranty recoveries UP 10-50% Inventory needs DOWN 20-30% Inventory carrying costs DOWN 5-20% Material costs REDUCED 5-10% Purchasing labor REDUCED 10-50%

36 Manufacturing Value Proposition - Case Study The Company Volvo Car Corporation Vehicle Manufacturer Production capacity of 230,000 cars (2004) The Challenge The Solution To achieve an annual cost savings target of 5% 31% of downtime results in lost production Increasing production line automation: robots and computercontrolled equipment Maximo Asset and Work Management The Benefits Reduction of the risk of production stoppage Material cost reduction of high budget maintenance function Expand effective asset life on complex tools such as paint shop robots Break even achieved in less than 2 years

37 3 7 Why Maximo? Market Leadership in Enterprise Asset Management Leadership position in Gartner Magic Quadrant Market share leader Strong Industry Solutions State-of-the Art Technology J2EE (re)configurability to improve agility Thought Leadership & Vision Convergence of Asset & Service Management Convergence of Information (IT) and Operational Technology (OT) Compliant with ITIL (and other) best practices Part of the world s largest technology company: IBM Leadership Innovation Client Value

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