Achieving Enterprise Asset Management requires a holistic approach. It involves not only a multi-plant and enterprise approach, but asset management must cover the entire life cycle of an asset. Additionally, as the international community

organizations are beginning to look for a “framework” or “structure” that will assist in developing an asset management system. This framework cannot be one dimensional, since true asset management involves People, Processes, and Technology.

In the Final Draft of the ISO-55000 document, an “asset” is something that has potential or actual value to an organization. This indicates that the value contribution for any asset must be clearly understood and communicated throughout an organization for the asset management system to be successful. A diagram, such as the one pictured below, could be developed and used as a tool to communicate this concept to the entire organization.

organization’s business goals with the actual activities that will lead to completion of the goals. Diagrams, such as this, can be used by executives to provide clear communication to the people who are necessary to ensure their complete alignment throughout the organization.

Once the alignment of the organization’s vision of asset management is underway, the next step will be to develop the processes necessary to achieve asset management. These processes will include (but are not limited to):• Developing business cases for assets• Purchasing or building the assets• Installing/commissioning assets• Operating/maintaining assets• Restoring worn or underperforming assets• Decommissioning and disposing of assets

organization, but the goal is to have a clear understanding of the processes necessary to achieve the business goals and provide a return on investment to the shareholders or owners.

also necessary to examine various technologies to optimize the processes. This will begin with SAP as the foundational business system. It will also be necessary to review technologies, such as enhanced usability features and mobile.

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ENTERPRISE ASSET MANAGEMENT AND THE VTEAM FRAMEWORK

REAL. WORLD. EXPERIENCE.

A Rizing Company

For the organization to avoid developing silos, it is necessary to develop an integrated framework. If an integrated framework is not implemented, then the engineering department will design and procure assets and the assets will be commissioned without proper turnover of documentation. The operations department will then attempt to utilize the asset without understanding the operational parameters and

of the assets, negatively impacting the Return On Assets (ROA). Once the maintenance/reliability department needs to maintain or refurbish the assets, they do not have the proper documentation, including manuals and drawings. This leads to unnecessarily frequent asset failures and extended service outages. Again, the ROA is negatively impacted and the shareholder’s investment is sub-optimized.

How can a “Framework” prevent this “silo-ing” of an organization’s people, processes, and technology? It is only by having an integrated framework that insures that all parts of an organization are focused on deriving the maximum return on investment from the asset, while still meeting the organization’s risk objectives. For example, Vesta’s VTEAM integrated framework consists of six focus tracks that are key to eliminating organizational silos. The six focus tracks are:1. Asset and Project Management2. Maintenance and Work Management3. Foundation and Integration4. Software and Technology5. Measure and Manage6. Education and Change

All efforts in the six focus sections are all managed simultaneously by the Vesta Project Management methodology. Since all six sections require time to progress from development to maturity, the VTEAM framework divides the six focus areas into three levels of maturity: 1. Fundamentals2. Effectiveness

that comprise the six focus areas allows for a progressive return on investment throughout the life of the VTEAM improvement process. The following diagram highlights this concept. The concept can be further highlighted by examining

only hits the highlights of two of the tracks but will be

MAINTENANCE AND WORK MANAGEMENTThis framework track focuses on the maintenance and reliability foundation necessary to control expenses that occur during the maintenance phase of an asset’s life cycle. While the

phase of the life cycle, they are not actually incurred until the

and effective maintenance policies and practices are key to avoiding excessive costs in this area. The following information provides some tactical insight into the maintenance and work management track.

PM PROGRAMS AND INSPECTIONSThis framework element is designed to provide stability to the maintenance and operations departments by reducing

organizations engage in during a production cycle. The goal is to design a preventive maintenance program that will eventually reduce the amount of reactive work to less than 20% of the total maintenance activities. While these activities will be reevaluated later in Phase Two activities, it is essential that a robust Preventive Maintenance program be developed as a foundation. As the less than 20% reactive resource deployment goal is achieved, the next elements in the VTEAM framework section can begin.

As part of this element, there may be some improvements to work order tracking and basic improvements to the storeroom, but it is vitally important that the proper focus stay on getting preventive maintenance under control and properly documented. A point to consider as part of the basics of a good program is the visual systems necessary to “mistake proof” the inspections and routine service performed by the maintenance and operations personnel. There may be a series of techniques utilized, such as gauge marking and inspection point detailing. The goal is to clearly identify each inspection and service point,

ensure zero errors.

STORES AND PROCUREMENTThis framework element is designed to develop a disciplined stores and procurement function that has the capability to support planned and scheduled maintenance. Once the amount

PM Program& Inspections

Stores and Procurement

Planned & Scheduled

Maintenance

Work Order Documentation

and Closing

Work Assignments

and Dispatching

Work Order Discipline

Reliability Strategies

(RCM)

PDM/ CBM Programs

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of reactive maintenance activities is less than 20%, this will allow for the proper use of controlled stores and procurement processes, thereby reducing maintenance materials costs. The goal to properly support maintenance planning and scheduling is to achieve a service level of 95 to 97%.

WORK ORDER DISCIPLINESThis framework element is designed to provide the disciplined approach to data collection and analysis necessary for planning and scheduling maintenance activities. With the reactive work at a low level and a high service level from the stores process, the organization has the time and resources to develop a focus on data collection. The goal of this framework element is that 100% of all maintenance activities, including reactive

equipment. This level of discipline will ensure that the data is available for trending all maintenance work. It is assumed that even with the implementation of PM and stores, basic work order tracking is taking place. This framework element is to focus the company on complete and accurate tracking of expenditures of maintenance resources work on work orders.

PLANNED AND SCHEDULED MAINTENANCEThis framework element is designed to reduce any waste of maintenance resources by focusing on planning and scheduling maintenance work activities. This ensures that the correct resources, such as maintenance technicians, spare parts, contractors, etc. are determined in advance to ensure that there are no work delays or unnecessary production disruptions while the work is being performed. The performance measurement for planning is to ensure that all work activities are completed within plus or minus 10% of the estimates.

In addition, this framework element focuses on the scheduling of all planned maintenance work activities. This ensures proper coordination with operation production and maintenance schedules, which improves the utilization of the personnel in both organizations. In addition, the coordinated scheduling will begin to optimize the utilization of the company assets. The goal is to have a schedule compliance of 90 to 95% on a weekly basis. It may at times be greater than even 95%, but it always has to be acknowledged that in many industries there will be some schedule-breakers that will prevent 100% compliance to schedule. Some of this can be factored into the utilization workloads that are planned.

WORK ASSIGNMENTS AND DISPATCHINGIn this framework element, the proper work assignment

roles. The processes necessary to dispatch work are also

WORK ORDER DOCUMENTATION AND CLOSING

processes necessary to collect the appropriate work order documentation. Also included are the work processes and job roles necessary to collect the information for the closing process.

PDM/CBM PROGRAMS In this framework element, the data gathered in phase one is utilized to develop a PDM program focused on eliminating unnecessary downtime to perform preventive maintenance activities. The focus will be to replace many of the preventive maintenance inspection and service tasks with predictive inspections utilizing the basic tools, such as vibration analysis,

analysis, and sonics. The goal is to increase equipment availability thereby increasing production capacity. In addition, PDM will give a longer lead-time for the planning and scheduling activities.

RELIABILITY STRATEGIES (RCM)In this framework element, reliability tools, such as Failure Effects Mode Analysis (FEMA) and Root Cause Analysis (RCA) are used to determine the true causes of equipment failures to eliminate any recurring failures. The techniques used in this framework element are progressively technical, leading to one of the varieties of Reliability Centered Maintenance (RCM) (traditional, streamlined, 80-20, etc.) that produces the best results for the type of equipment and processes utilized by the company. While the RCM process will initially focus on existing equipment, ultimately RCM will be applied to equipment in the design phase. The goal is to reduce equipment failures, thereby increasing equipment capacity. We also will coach the client in implementation of a management of change (MOC) process to further stabilize equipment reliability.

SOFTWARE AND TECHNOLOGYThis framework section focuses on the evaluation of additional software needs and technology to optimize SAP’s support for the asset/maintenance management policies and procedures. This framework section will ensure that there are no functional gaps between the company’s business needs and the software and technology they are utilizing.

CORE SAP EAM WITH INTEGRATIONThis framework element is vital to successful use of SAP for

for the effective management of maintenance and support of reliability programs. This framework element will provide the

orders types, quality coding, proper balance of usability and complexity, etc. Another key part of this framework element is

. Enhanced Reporting

AdvancedUsability &

Mobility

Project Systems and Portfolio Management

Enhanced Software

with integration

Core SAP EAM with Integration

Expand Usage including Asset

Lifecycle Tracking

Decommission and Disposal Data Tracking

Enhanced Planning & Scheduling

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has proven to be very effective to make sure the personnel involved understand the design and scope in realization.

While the focus is mainly built around PM (Plant Maintenance) and MM (Material Management), other key touch points like PS (Project Systems), QM (Quality Management), or other areas MII, MRS, Mobile, etc. will also be considered.

ENHANCED PLANNING AND SCHEDULINGPlanning and scheduling maintenance, along with other and reliability activities, are key to controlling maintenance costs. This framework element ensures that SAP is properly

scheduling as the company’s policies and practices mature.

PROJECT SYSTEMS AND PORTFOLIO MANAGEMENTSince managing acquisition and refurbishment projects is key to asset management, this framework element ensures that

element is to determine the appropriate level of SAP project and portfolio management functionality that is required to meet the current and projected business needs.

ENHANCED SOFTWARE WITH INTEGRATIONSAP implementations often have a multiple phase approach. It is possible that in the initial implementation the team has implemented “enhanced software” for SAP. This can at times be something as simple as a custom ABAP screen or a custom ABAP function. Customers may also opt to implement enhancements to the user interface. This area is always changing for SAP and the Vesta company as a whole takes great pride in being on the leading edge of options (with pros and cons) around the user interface. This VTEAM framework element ensures a team takes the time to evaluate other ways to enhance the base system.

ENHANCED REPORTINGAs a customer gets work history data into SAP, it is important to take a focused review on the reporting and how it might be valuable to improve. If a customer did not implement a data warehouse function for EAM data, this would be an excellent time to consider implementing these functions.

The VTEAM framework emphasizes that the team needs to be careful considering how to support reliability engineering. Often in the initial go live, the metrics are more focused around work management metrics: number of overdue work orders, PM’s not completed, etc. The goal in this framework element is make sure that SAP is receiving inputs of good “failure reporting” and that the reporting tools being used can help analyze failure trends. This work can be accomplished, to a degree, right in standard SAP tools. Customers often consider other partner applications to assist with some of these deeper asset performance management tools.

ADVANCED USABILITY AND MOBILITYThis framework element can be adapted to the system interface, especially as part of upgrades to the latest releases of SAP. This includes exploring the usage of mobile tools and software to complement SAP, ensuring full data collection and utilization.

EXPAND USAGE – INCLUDING ASSET LIFE CYCLE MANAGEMENTAsset Life Cycle tracking is certainly more than just tracking the maintenance and operation phase of an asset’s life. If Vesta has been involved from the beginning of an implementation with a customer, they will work to consider an asset’s life cycle during the initial implementation. If not fully factored in, at this

important to have the software support all phases of asset life. Some of this data may be in SAP but in many cases it may be working on improved integration with other systems.

There are a variety of areas to be reviewed here. Tracking how the equipment or process was designed. Is this information readily available in software? Is it linked in some way to maintenance and repair process? Is the system set up to link the purchase of the asset to the creation of the equipment

record? Etc…

DECOMMISSION AND DISPOSAL DATA TRACKINGAt the end of its life cycle, all assets will need to be disposed of, whether they are sold to another company or decommissioned and stored, or cannibalized for its component parts for other assets. Proper tracking of the information related to this phase is critical for all companies. Certain EH&S regulatory requirements create legal necessities to track all decommissioned and disposal information.

Vesta is prepared to discuss any questions related to how the VTEAM framework can be applied in your organization to assist in achieving EAM or to help with compliance with PAS-55 or in the future with the forthcoming ISO-55000 standard.

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