Keywords: EAM, FSM, IBM, Maximo, TRIRIGA.
IBM's tagline for the company's recent Pulse event was "Optimizing the World's Infrastructure." Themes included cloud, mobility, and analytics technologies, plus the need for a "smarter" physical infrastructure. ARC Advisory Group's coverage of the event focuses on enterprise asset management (EAM).
IBM's Pulse Conference Included a New Acquisition
The four-day event drew over 8,000 attendees, with about a third of these involved with IBM's Maximo EAM solution and the company's TRIRIGA facility/real estate management software. Many of the presentations were by Maximo users with a broad range of industry and technology applications. The recent acquisition of TRIRIGA brought a following of customers with their insights for real estate management.
The exhibits area at the conference featured members of IBM's extensive IBM Tivoli ecosystem, which includes about 107 partners in all. Exhibitors included Tata Consultancy Services (TCS) and Infosys, two partners with particularly large Maximo consulting practices.
The conference general session addressed technologies and user case examples on a variety of timely topics:
Cloud topics included change management, provisioning, monitoring, scheduling, virtualization, cloud computing
Mobility delved into applications across the enterprise with visibility, control and automation for new services
The security track addressed compliance challenges and secure business processes with cloud, mobility, social business, and data having quantity, speed and a variety of formats
Smarter physical infrastructure covered intelligent integrated physical and digital infrastructures for managing assets, buildings, campuses and cities
The IBM keynote presentations weaved together these capabilities for delivering quality services (cloud and mobility), managing risk (security), and optimizing infrastructure while achieving business growth. Customers also provided keynote presentations by Michelin, GE Real Estate, and other users.
Ken Bodine, Michelin, explained the company's "Michelin Way" lean program, in which one of the practices is to standardized business processes. Michelin employs a single application for maintenance across its global facilities. One Maximo instance serves all locations via a private cloud, helping keep all 70 plants "on the same page," and providing all stakeholders with visibility into MRO inventory. In the plants, the company installed Wi-Fi networks to provide all maintenance personnel (nearly all of whom are mobile) with access to the system to improve maintenance productivity and coordination.
David Kontra, GE Real Estate Operations, reviewed the company's extensive global real estate operations. These include 4,500 sites -- 65 percent of which are offices and 35 percent manufacturing sites -- with 1,200 real estate transactions (buy, sell, or lease) per year. The company uses IBM's TRIRIGA facility management solution to help manage its real estate purchase and sales activities, construction activities, and property operations property. David reported that the solution helped GE improve its overall real estate management, which he estimates saved the company $1 billion.
In a related presentation by Stan Tims, who came to IBM with TRIRIGA, lease accounting will shortly become a huge new compliance requirement. A long-term lease represents an extended financial commitment similar to a loan, and the new International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) accounting rules will require public companies to represent this on their balance sheets. Under Sarbanes-Oxley, misrepresentation could result in "fine, imprisonment or both." This threat tends to get C-suite attention, and real estate lease management has gained higher levels of executive interest. ARC believes this will generate interest in this type of solution from public companies worldwide.
With over 100 sessions by Maximo clients, ARC could not attend all. Some highlights from a few interesting sessions that we did attend follow.
Maximo Work Management and Supply Chain Benefits in the Oil & Gas Industry
Petrofac and the Williams Companies collaborated on this presentation.
Petrofac, Inc. reviewed EAM and ERP integration with SAP for purchasing, inventory, and financial management, and Maximo for maintenance work management. The custom solution provided tools to identify duplicate part numbers and allowed MRO items to appear in a pick list when adding items to work plans and job plans. Benefits included:
Improved planning and scheduling
Better min/max/safety stock levels
Facilitates identification for purchase orders
Improved purchasing processes and volume buys
The Williams Companies, Inc. has Oracle PeopleSoft for ERP and Maximo for EAM – each with a single instance hosted in the company's private cloud. The integration goals were to reduce operational complexity with no incremental general and administrative costs. Benefits included:
Higher information value with correct input providing credible reports
Centralized and reliable location for information
Automated accounting accrual process
EAM in the Transportation Industry
Presenters from Encada Inc., and its Maximo systems integrator, Accenture, explained the rail industry's EAM needs and drivers, which include:
Availability to support train service and uptime
Asset management lifecycle cost control requirements
Need to comply with Passenger Rail Investment and Improvement Act of 2008 (PRIIA) legislation by measuring service performance and costs
The new regulation requires states of good repair (SOGR), meaning rail assets function as designed and are sustained with regular maintenance. The regulation drove organizations to develop business process maps, which typically include steps for requirements, data, integration, and process flows. Process integration requirements encompassed procurement, materials management, mechanical, financials, human relations, payroll, transportation, and controls. The Maximo implementation evolved into a complete systems modernization involving standardized business processes and integration with ERP, in this case, SAP and Maximo.
Maintaining Rolling Stock in the Rail Industry
This session had two presentations on this topic.
Bombardier implemented and Bombela administers Maximo for Gautrain in South Africa. Maximo was installed in 2009 and upgraded in 2011. The upgrade includes Maximo Asset Configuration Manager (MACM). For the ticketing vending machines (TVM), MACM manages information for the mechanical and electrical components. An unusual and interesting addition includes tracking software versions for the IT components. Previously, Gautrain did not have a way to know which upgrades occurred on a particular TVM. Incompatibilities caused ticketing machine downtime, which resulted in lost ticket sales, and upset customers. According to the presenters, MACM helps reduce IT version control and reliability issues.
NedTrain also presented on using Maximo for high-speed rolling stock maintenance and service. NedTrain maintains trains for the government in more than 30 locations in The Netherlands. At the Amsterdam headquarters, the Maximo pilot started in 2009, progressed to the go-live pilot in 2011, and was completed by 2012. NedTrain plans to have Maximo rolled out to all locations by 2014. SAP provides logistics, purchasing, and finance functionalities. IBM provides Maximo asset configuration management and the Maximo Transportation industry solution. Maximo manages the key processes, and the technicians process work orders using mobile tablet devices.
IBM's Pulse event included an excellent combination of strategic presentations by IBM, tactical guidance by the user community, and exhibits by IBM's solution partners. For Maximo, the audience size and user participation were impressive. Maximo users and companies in this ecosystem should plan on attending next year.
With the broader adoption of mobility and cloud, applications for field service management (FSM) are transitioning to enterprise-level solutions. A new class of applications are emerging which offers new opportunities for a comprehensive EAM application such as Maximo.
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