Enterprise Facility and Asset Management Business Process Improvement and System Implementation Lessons Learned Presented By: ACI-NA Operations and Technical Affairs Committee Facilities and Maintenance Working Group March 2017
Team Introductions Mr. Ed Clayson, Ed.Clayson@slcgov.com Director of Maintenance, Salt Lake International Airport Ms. Jill Geboy, Jill.Geboy@jacobs.com Project Manager, Jacobs Mr. Joseph Mahaz, jmahaz@edatai.com President & CEO, EDI Mr. Chris Rospenda, cjrospen@us.ibm.com Global Aviation Leader, IBM IoT
Presentation Goals The goals of this presentation is to outline the detail found in the Enterprise Facilities and Asset Management Business Process Improvement and System Implementation Lessons Learned document dated September 2016. Additionally, this presentation will provide you with insight into the lessons learned by various organizations during their implementation or upgrade of business processes and technology improvements of their facilities and/or enterprise asset management program/systems.
Background This document is part of the Facilities and Maintenance Working Group s overall 2016 2017 work plan. This presentation outlines the facilities and asset management working group s portion of the sustainable facilities framework illustrated below.
Vision The Working Group s vision is to be the recognized and authoritative Voice of Airports in the fields of enterprise facilities and asset management leadership.
Objectives Provide strategic education and insight through the sharing of best practices pertaining to enterprise facilities and asset management. Create and sustain learning and continuous improvement where airports can share best practices and learn from each other.
Objectives Continued Create a comprehensive reference library for airport facilities and maintenance management departments to use as a guide i.e., sample outside services contracts, energy efficient equipment, best practices repair materials, maintenance contracts at other airports, maintenance management systems, performance contracts, etc. ACI-NA Working Group Portal
Objectives Continued Provide information and resources to support technical leadership training and certification in the areas of enterprise facilities and asset management.
Objectives Continued Encourage airports to participate in, and contribute to, the Facilities and Maintenance Working Group (FMWG) content, which will produce real benefit to all of our airports.
What is Facilities/Asset Mgmt. Systematic and coordinated activities and practices through which an organization optimally and sustainably manages its assets and asset systems, their associated performance, risks and expenditures over their life cycles for the purpose of achieving its organization strategic plan. (ISO 55000 Primer)
Why is EFM and EAM Important Asset management value proposition relates to and covers the life cycle management of the assets and, in particular, the assets that are core to an organization's purpose, such as utility networks, power stations, railway or road systems, oil and gas installations, manufacturing and process plants, buildings and airport airside and landsides. A facility or asset management system is therefore vital for organizations that are dependent on the function and performance of their physical assets in the delivery of services or products, and where the success of an organization is significantly influenced by the stewardship of its assets.
Why Should You Care If this happens one time Suddenly Asset Management Becomes an Urgent Priority for You!!
Facilities/Asset Mgmt. Journey Enterprise Facilities and/or Asset Management is a Journey not a Sprint
The Journey What Happens In Vagueness Stays In Vagueness Ensure that your Enterprise AM/FM Program vision and goals are communicated to all Stakeholders early and often!!
New Technology to Support The Journey The Good News New technology such as IoT can help you on your Journey!!
What Is Internet of Things (IoT) The Internet of Things (IoT) is the network of physical objects or "things" embedded, with electronics, software, sensors, and connectivity to enable objects to exchange data with the production, operator and/or other connected devices. Experts estimate that the IoT will consist of almost 50 billion objects by 2020
How Does IoT Work Cognitive Analytics 3 5 1 2 4
Practical Application of IoT (GTAA) IoT Real Time Asset Health Monitoring Merged With Cognitive Analytical Results GTAA Pilot Project
What is Cognitive Analytics?
Cognitive Analytics can Produce Intelligent Assets
The Road Blocks There are many factors that can contribute to an airport s failure when implementing life cycle facility or asset management. Some of these factors include: Poor and undocumented business processes Absent of insufficient change management processes Inability to bring about culture change (overall resistance to change) Lack of strong sponsorship for the program Insufficient funding of the program Lack of airport knowledge on the implementation team Absent or insufficient historical data Haste to implement the program too quickly Lack of or no development of success criteria Absent or insufficient development of key performance indicators Too much too soon Insufficient training
The Journey Lessons Learned 1. Decision Making Too often asset management decisions, especially those made reactively, are made in a vacuum. For example: o Cost During the design phase of a facility often times long-term operational and o maintenance requirements are not considered. Risk - Often organizations do not consider the Consequence of Failure of an asset. Therefore, in many cases too much rigor is placed on a particular asset. Performance - Establish asset life expectation based on historical data and build a program to optimize the assets useful life. Winners and Losers: o All stakeholders within an organization must understand the overall vision and goals of the organization as it relates to a successful implementation or upgrade of an enterprise facility or asset management system. Ensure that all stakeholders understand the bigger picture. Data Management and Transparency o It is better to make decisions with no data than with bad data Data should be treated as an asset o Establish and maintain an overall data management strategy Internal staff and external vendors should capture and record all asset data in accordance with an established data management strategy. External vendors should be required to record all maintenance activity data into the owner s system. Facility or asset management data is an asset in itself, it should be maintained, audited and safe guarded.
The Journey Lessons Learned 2. Organizational Change Management Enterprise vision should be communicated at all levels Change can be required for many reasons including: o Government Regulation o Market Changes o Bonding Requirements o Airlines o Tenants All departments should have a voice Set the right expectations Leadership must set the example for collaboration and supporting change
The Journey Lessons Learned 3. Enterprise Facility and/or Asset Management Systems Continuous Improvement Plan - Establish and communicate policies and procedures Do Follow established policies and procedures Check - Ensure policy and procedure compliance Adjust Revise policies and procedures as required
The Journey Lessons Learned 4. Talent Planning Tribal knowledge capture Succession planning Employee recruitment Employee development Employee retention
The Journey Lessons Learned 5. Metrics and Standards Establish Overall Implementation/Upgrade Success Criteria Design and Build Performance Metrics Design and Build Organization Key Performance Indicators
Why Take The Journey The Value Proposition There are two types of Return-On-Investment from the successful implementation of a life cycle asset management program, Tangible and Intangible. The intangible returns are not always obvious as in many cases they are minor and major failures that never happen because the program is working. However, the intangible benefits are hard, if not impossible, to document or quantify. The Tangible benefits include: Labor utilization up by 10-15% Asset utilization up by 3-5% Increased planned maintenance by 50-80% New equipment purchases down by 3-5% Lost warranty recoveries up by 10-30% On-hand inventory needs down by 20-30% Inventory carrying costs down by 5-15% Material costs reduced by 5-10% Purchasing labor reduced by 10-30%
Why Take The Journey - Benefits Enhanced customer satisfaction from improved performance and control of product or service delivery to the required standards; Improved health, safety and environmental performance; Optimized return on investment and/or growth; Long-term planning, confidence and performance sustainability; Ability to demonstrate best value-for-money within a constrained funding regime; Evidence, in the form of controlled and systematic processes, to demonstrate legal, regulatory and statutory compliance; Improved risk management and corporate governance and a clear audit trail for the appropriateness of decisions taken and their associated risks; Improved corporate reputation, the benefits of which may include enhanced shareholder value, improved marketability of product/service, greater staff satisfaction and more efficient and effective procurement from the supply chain;
Why Take The Journey - Benefits Additionally, cognitive predictive failure analytic information will: Minimize unscheduled asset downtime o Ability to perform corrective action on your terms Minimize asset failure; o Cognitive analytics provide ability to optimize asset performance Extends asset life Reduce operating costs o Reduced operating costs helps stabilize airline rates and charges Increased customer service
Presentation Reference Material Enterprise Facilities and Asset Management (EFM) (EAM) Business Process Improvement and System Implementation Lessons Learned ACRP 69 PASS 55 ISO 55001-55002 BOMA Building Owners and Managers Association Standards Mr. Terry Wiremen s Computerized Maintenance Management Systems (First and Second Additions) Angela Lewis and Bradley Brooks, Fundamentals of Building Operation, Maintenance and Management Anthony M. Smith, RCM Gateway to World Class Maintenance Anthony Kelley, Maintenance Strategy Ramesh Gulati, Maintenance Best Practices IAM Asset Management Journey Video ACI-NA Working Group Web Site https://acina-opstech.groupsite.com/login
Thank You Questions & Discussions