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ERP Asset Management
systems versus best-of-breed CMMS
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Im telling you,youll use the
ERP system!
Its crap formaintenance! I
need my CMMS
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ERP versus CMMSERP versus CMMS
Needs
The Engineering Manager seeks toThe Engineering Manager seeks tostreamline maintenance activities,streamline maintenance activities,
automate admin tasks and accessautomate admin tasks and access
comprehensive decisioncomprehensive decision--making, problemmaking, problem
solving, planning and control informationsolving, planning and control information
Senior management seeks integration ofSenior management seeks integration of
the enterprise with consolidated financialthe enterprise with consolidated financialreportsreports
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ERP versus CMMSERP versus CMMS
CMMS is primarily a forwardCMMS is primarily a forward--looking, technicallooking, technicalmanagement system. It addresses practical, realmanagement system. It addresses practical, real--timetimemaintenance needs in the workplace. It is an essentialmaintenance needs in the workplace. It is an essential
tool, aiding increased effectiveness and efficiency of worktool, aiding increased effectiveness and efficiency of workmanagement and asset care. It drives more and bettermanagement and asset care. It drives more and betterquality output, regulatory compliance and optimalquality output, regulatory compliance and optimaloperating costsoperating costs
ERP is primarily a backward-looking, financialmanagement system. It is concerned with enterpriseis concerned with enterpriseoverview and business process integrationoverview and business process integration -- humanresources, payroll, inventory, financial management andsupplier collaboration
The advantages offered by the two systems are veryThe advantages offered by the two systems are verydifferent and, by and large, mutually exclusivedifferent and, by and large, mutually exclusive
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ERP versus CMMSERP versus CMMS
CMMS is primarily a forwardCMMS is primarily a forward--looking, technicallooking, technicalmanagement system. It addresses practical, realmanagement system. It addresses practical, real--timetimemaintenance needs in the workplace. It is an essentialmaintenance needs in the workplace. It is an essential
tool, aiding increased effectiveness and efficiency of worktool, aiding increased effectiveness and efficiency of workmanagement and asset care. It drives more and bettermanagement and asset care. It drives more and betterquality output, regulatory compliance and optimalquality output, regulatory compliance and optimaloperating costsoperating costs
ERP is primarily a backward-looking, financialmanagement system. It is concerned with enterpriseis concerned with enterpriseoverview and business process integrationoverview and business process integration -- humanresources, payroll, inventory, financial management andsupplier collaboration
The advantages offered by the two systems are veryThe advantages offered by the two systems are verydifferent and, by and large, mutually exclusivedifferent and, by and large, mutually exclusive
The net effect on the bottom line is what mattersThe net effect on the bottom line is what matters
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ERP advantagesERP advantages
There is ONE
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ERP advantagesERP advantages
There is ONE
Enterprise integration!
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ERP disadvantagesERP disadvantages
There are many
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ERP disadvantagesERP disadvantages
There are many
Creates complexity and rigidityCreates complexity and rigidity
Clumsy usability impedes and slows down usersClumsy usability impedes and slows down users-- especially maintenance users doing criticallyespecially maintenance users doing criticallyvaluable work.valuable work. Google it and read about theirGoogle it and read about their
misery!misery!
Unsuitable for smaller companies whereUnsuitable for smaller companies whereflexibility, agility and slick administration are vitalflexibility, agility and slick administration are vital
to competitivenessto competitiveness
The initial and onThe initial and on--going cost of ownership isgoing cost of ownership ishugehuge
more
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ERP disadvantagesERP disadvantages
Heavy customisation is necessary to shapeHeavy customisation is necessary to shapethem to an organisationthem to an organisations needss needsthe changesthe changesare usually complicated and costlyare usually complicated and costly
Upgrades are complexUpgrades are complexbecause the systembecause the systemsssource codesource codeoften has to be changedoften has to be changed
Consultants are usually involvedConsultants are usually involvedtheir fees aretheir fees arehigh and theyhigh and theyre notorious for not transferringre notorious for not transferringknowknow--how to their customershow to their customers
The aggregated costs in ERP systems disallowThe aggregated costs in ERP systems disallowproper detailed analyses of activities andproper detailed analyses of activities andevents. There is inadequate support forevents. There is inadequate support forcontinuous improvement initiativescontinuous improvement initiatives
more
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ERP disadvantagesERP disadvantages
TheyTheyre not intuitive, easy to pick up, or userre not intuitive, easy to pick up, or user--
friendly. This demoralises users and fostersfriendly. This demoralises users and fosters
resentmentresentmentwhich can cripple the systemwhich can cripple the system
implementation and totally defeat its purposeimplementation and totally defeat its purpose
Additional resources have to be be invested inAdditional resources have to be be invested in
drivingdriving the systemthe systembecause an ERPbecause an ERPimplementation does not gather a naturalimplementation does not gather a natural
momentum of its ownmomentum of its own
And finally, despite their popularity, few ERPAnd finally, despite their popularity, few ERPimplementations have proven to add net value toimplementations have proven to add net value to
a businessa businesstheytheyve provided no positive ROI!ve provided no positive ROI!
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CMMS advantagesCMMS advantages
Simple and flexibleSimple and flexibleprovides users with practicalprovides users with practicalhelp and workflow discipline without stifling themhelp and workflow discipline without stifling them
Crafted to fit precisely with the way engineers wishCrafted to fit precisely with the way engineers wish
to workto work
Easy to use and intuitive for the casual userEasy to use and intuitive for the casual user
Can be straightforwardly configured to the needsCan be straightforwardly configured to the needsof individual organisations without changing theof individual organisations without changing thesource codesource codetheretheres nos noneed for expensiveneed for expensivecustomisationcustomisation
Low initial costLow initial costvery, very low with FrontLine andvery, very low with FrontLine andPiranaPirana
Low continuing cost of ownershipLow continuing cost of ownership
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CMMS advantagesCMMS advantages
Upgrades can be installed simply, without theUpgrades can be installed simply, without the
need for IT expertsneed for IT experts
The cost information available in CMMS is muchThe cost information available in CMMS is much
more detailed than in ERP systems. Thismore detailed than in ERP systems. This
enables powerful, forwardenables powerful, forward--looking whatlooking what--ifif
analyses and targeted continuous improvementanalyses and targeted continuous improvement
Morale amongst users is higher because theMorale amongst users is higher because the
system is both usersystem is both user--friendly and helpful to themfriendly and helpful to themin carrying out their daily tasksin carrying out their daily tasks
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CMMS advantagesCMMS advantages
Less management effort is needed to drive theLess management effort is needed to drive the
system because the users are not hostilesystem because the users are not hostiletheythey
are much less likely to look for ways ofare much less likely to look for ways ofminimising and defeating its useminimising and defeating its useand so becomeand so become
more aware of its benefits and supportive of itsmore aware of its benefits and supportive of its
purposepurpose
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Engineering managers ALWAYS chooseEngineering managers ALWAYS choose
bestbest--ofof--breed CMMS, whereas ERPbreed CMMS, whereas ERP
maintenance systemsmaintenance systems are imposed onare imposed onthem from on highthem from on highand against theirand against their
protestations and better judgementprotestations and better judgement
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Engineering managers ALWAYS chooseEngineering managers ALWAYS choose
bestbest--ofof--breed CMMS, whereas ERPbreed CMMS, whereas ERP
maintenance systemsmaintenance systems are imposed onare imposed onthem from on highthem from on highand against theirand against their
protestations and better judgementprotestations and better judgement
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Using ERP for maintenance is a bit like thisUsing ERP for maintenance is a bit like this
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Using ERP for maintenance is a bit like thisUsing ERP for maintenance is a bit like this
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Using ERP for maintenance is a bit like thisUsing ERP for maintenance is a bit like this
Sir, I am aspecialist! For the
best outcome Ineed to work with
a scalpel
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Using ERP for maintenance is a bit like thisUsing ERP for maintenance is a bit like this
Sir, I am aspecialist! For the
best outcome Ineed to work with
a scalpel
who is really bestplaced to decide?
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The ERP decisionThe ERP decision
Driving forces
Restraining forces
Enterpriseintegration
ERPkudos
Difficultto install
Frustratingto use
Highinitial cost
Highon-going cost
Difficultto upgrade
Decision
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The ERP decisionThe ERP decision
Driving forces
Restraining forces
Enterpriseintegration
ERPkudos
Difficultto install
Frustratingto use
Highinitial cost
Highon-going cost
Difficultto upgrade
Decision
So and sos got one -so it must be good -so I want one too!
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The ERP decisionThe ERP decision
Driving forces
Restraining forces
Enterpriseintegration
ERPkudos
Difficultto install
Frustratingto use
Highinitial cost
Highon-going cost
Difficultto upgrade
Decision
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The ERP decisionThe ERP decision
Driving forces
Restraining forces
Enterpriseintegration
ERPkudos
Difficultto install
Frustratingto use
Highinitial cost
Highon-going cost
Difficultto upgrade
Hmm! Whats thebottom line ROI andROA for this ERP?
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The ERP decisionThe ERP decision
Driving forces
Restraining forces
Enterpriseintegration
ERPkudos
Difficultto install
Frustratingto use
Highinitial cost
Highon-going cost
Difficultto upgrade
Hmm! Whats thebottom line ROI andROA for this ERP?
That may well be the rightquestion! But its necessary to seek
out and weigh all opinion to ensurefantasy doesnt prevail over fact
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The ERP decisionThe ERP decision
Driving forces
Restraining forces
Enterpriseintegration
ERPkudos
Difficultto install
Frustratingto use
Highinitial cost
Highon-going cost
Difficultto upgrade
From where Imstanding, the
choice is obvious!
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The ERP decisionThe ERP decision
Driving forces
Restraining forces
Enterpriseintegration
ERPkudos
Difficultto install
Frustratingto use
Highinitial cost
Highon-going cost
Difficultto upgrade
Logically, itappears that we
should have both!
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ERP rivalsERP rivals SAP, Infor & IBMSAP, Infor & IBM
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ERP rivalsERP rivals SAP, Infor & IBMSAP, Infor & IBM
By producing their own PM system, SAPBy producing their own PM system, SAP
have bravely ventured into an area thathave bravely ventured into an area that
their UStheir US--based rivals avoidedbased rivals avoided
In the USA, SAP rivals bought out bestIn the USA, SAP rivals bought out best--ofof--
breed asset management softwarebreed asset management softwarecompanies to augment their ERPcompanies to augment their ERP
portfoliosportfoliosInforInfor bought Datastream andbought Datastream and
IBMIBM bought MRO Maximobought MRO Maximo
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ERP rivalsERP rivals SAP, Infor & IBMSAP, Infor & IBM
By producing their own PM system, SAPBy producing their own PM system, SAP
have bravely ventured into an area thathave bravely ventured into an area that
their UStheir US--based rivals avoidedbased rivals avoided
In the USA, SAP rivals bought out bestIn the USA, SAP rivals bought out best--ofof--
breed asset management softwarebreed asset management software
companies to augment their ERPcompanies to augment their ERP
portfoliosportfoliosInforInfor bought Datastream andbought Datastream and
IBMIBM bought MRO Maximobought MRO Maximo
Who do you think got it right?Who do you think got it right?
SAP PM
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SAP PMSAP PM
From published
accounts, blogs andcomments, as far as
usability is
concerned, manymaintenanceprofessionals see this
particular ERPmaintenancemanagement systemas a bit of a
SAP PMSAP PM
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SAP PMSAP PM
From published
accounts, blogs andcomments, as far as
usability is
concerned, manymaintenanceprofessionals see this
particular ERPmaintenancemanagement systemas a bit of a
SAP PMSAP PM
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SAP PMSAP PM
The evidence isright there on
S iS i
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Summing upSumming up
The maintenance process is a technical assuranceThe maintenance process is a technical assuranceprocess and fundamentally different from the supplyprocess and fundamentally different from the supplychain, accounting and material transformationchain, accounting and material transformationprocesses in an MRPprocesses in an MRP--ERP systemERP system
Whilst labour and material reconciliation may beWhilst labour and material reconciliation may beimportant, its much less important than having aimportant, its much less important than having afriendly, fast and agile technical management supportfriendly, fast and agile technical management supporttooltool
CMMS is the practical and proven tool for supportingCMMS is the practical and proven tool for supportingthe Engineering Manager and the maintenance team inthe Engineering Manager and the maintenance team inthe workplacethe workplace
Maintenance system implementation is a maintenanceMaintenance system implementation is a maintenanceproject not a software projectproject not a software project
S iSumming up
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Summing upSumming up
Users will always recognise when a system is poor.Users will always recognise when a system is poor.And they resent doing things for which they see noAnd they resent doing things for which they see novalue or which are clumsy, overly timevalue or which are clumsy, overly time--consuming andconsuming andcause them griefcause them grief
If a system is uncomfortable and unfriendly, users willIf a system is uncomfortable and unfriendly, users willshun it. They wonshun it. They wont make it work. Theyt make it work. Theyll avoid using itll avoid using it
When a system is painful to use, users will resentWhen a system is painful to use, users will resentmanagement for inflicting it on themmanagement for inflicting it on them
If a system is complicated, learning continuouslyIf a system is complicated, learning continuouslyevaporatesevaporatesintuitiveness consolidates the learningintuitiveness consolidates the learningcurvecurve
Customised software is difficult to upgrade and theCustomised software is difficult to upgrade and thecost of ownership is highcost of ownership is high
Summing upSumming up
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Summing upSumming up
The most successful maintenance practices acrossThe most successful maintenance practices acrossassetasset--intensive organisations in many industries areintensive organisations in many industries are
incorporated in a standard bestincorporated in a standard best--ofof--breed CMMS.breed CMMS.
Maintenance addMaintenance add--ons to ERP systems are inferior afterons to ERP systems are inferior after--thoughtsthoughts
Using the configuration features, standard CMMSUsing the configuration features, standard CMMS
software can be tailored to fit individual needssoftware can be tailored to fit individual needsthere isthere isno change to source code and future upgrades areno change to source code and future upgrades are
unhindered and easyunhindered and easy
With standard, nonWith standard, non--customised CMMS software thecustomised CMMS software thedevelopment cost is spread over thousands of usersdevelopment cost is spread over thousands of users --
the cost of ownership is correspondingly very smallthe cost of ownership is correspondingly very small
Summing upSumming up
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Summing upSumming up
Beware of abandoning the unique advantages of bestBeware of abandoning the unique advantages of best--ofof--breed CMMS software in pursuit of the idealistic dreambreed CMMS software in pursuit of the idealistic dream
of having one system for everything. It wonof having one system for everything. It wont workt work
economicallyeconomicallyAssetAsset--intensive organisations need ERPintensive organisations need ERP andandCMMSCMMS
because of their mutually exclusive advantagesbecause of their mutually exclusive advantages
Select a standard CMMS that most closely mirrors yourSelect a standard CMMS that most closely mirrors your
actual maintenance processesactual maintenance processes
Dont customise software until youre sure that it reallycant do as you need AND youre 100% certain thebusiness benefits outweigh the considerable initial andon-going cost
Summing upSumming up
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Summing upSumming up
Software for maintenance management, whether ERP orSoftware for maintenance management, whether ERP or
CMMS, isnCMMS, isnt at a silver bulletsilver bulletitits a practical tools a practical toolaa
means to predefined endmeans to predefined end
Senior management must carefully define that endSenior management must carefully define that endthethe
expectationexpectation in terms of improved business performancein terms of improved business performance
-- then ensure the software tool selected is the mostthen ensure the software tool selected is the mostappropriate one for the jobappropriate one for the job
What are the addedWhat are the added--value aims of the initiative?value aims of the initiative?
How and where will the gains be made?How and where will the gains be made? Are the goals fantasy or an achievable reality?Are the goals fantasy or an achievable reality?
Summing upSumming up
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Summing upSumming up
The actual savings and business gains from aThe actual savings and business gains from a
computerised maintenance system depend entirely oncomputerised maintenance system depend entirely on
the efforts of the Engineering Manager, histhe efforts of the Engineering Manager, hismaintenance team and close collaboratorsmaintenance team and close collaborators
With the right tool and onWith the right tool and on--going support, a competentgoing support, a competent
and motivated Engineering Manager will deliver theand motivated Engineering Manager will deliver thegains senior management and the Board expectsgains senior management and the Board expects
Alienating the Engineering Manager and his team byAlienating the Engineering Manager and his team by
imposing an unwanted clunky system is just not goodimposing an unwanted clunky system is just not goodbusiness sensebusiness sense
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