How Should the CMMS be Designed and Supported to Optimize ROA?

(1) Selecting the right CMMS is important. But, what if you are not sure exactly where you want to end up?

Asset intensive industries need a CMMS to manage assets, but are they maximizing it’s potential? Do they understand the potential benefit beyond just making work orders? Not all sites understand the significance of a true asset management system supported by a properly configured CMMS. The technology is essential but it is the surrounding process and procedure where 80% of all potential improvement resides.

A CMMS can be implemented in a matter of months but it takes years for the collective majority to become a master in the asset management – which is really a life-long journey. Just as RCM analysis encourages on-going refinement of maintenance strategies, the CMMS should be tailored to support new requirements as reliability leaders become more informed. Therefore, it is wise to?select a system which is configurable?so that the software can grow with you.

Unfortunately, some organizations fail to move beyond the CMMS go-live milestone. Maybe they never created a core team. Maybe they never understood the importance of advanced training in asset management. As a result, leadership never realized the importance of industry best practices or the significance of reliability engineering concepts.

When is the best time to pursue industry best practice (BP) knowledge???

Answer: Pursue BP knowledge after CMMS implementation and once everyone is comfortable with navigation.

Very few organizations are able to simultaneously implement a CMMS and pursue industry best practices at the same time - nor should they. The time required to understand concepts in asset management and reliability framework will usually exceed the technical implementation. However, once this knowledge is acquired, then reliability leaders can?configure the system?accordingly. Although all CMMS products create work orders, the differences usually reside in the power features they offer (if any), along with configurability options. Example power features include automatic PM-WO generation, automatic inventory reorder of spare parts, part reservations, sparepart auto add (to asset where used list), and electronic workflow. It should be noted that, some organizations decide?not to activate?these features.

Begin your Reliability Journey

Most CMMS vendors do not design their product with the intent of supporting reliability engineering - but they should. As an organization learns more about asset management (versus managing assets), it may require the ability to configure their CMMS in support of industry best practices. Therefore, when choosing a CMMS product, it would be wise to find one that allows configurability.

Basic versus Advanced Configuration

Should an organization modify their process to fit the software, or, do they modify the software to fit their process? If they decide to modify the software they will need to perform configuration. Basic configuration?can be defined as creating location hierarchies and populating asset registries, as well as, set-up of work order priorities, work categories, and job status values.?Advanced configuration?includes adding new fields to tables and screens, designing new reports, and creating new applications. The best-in-breed products will support advanced configuration. Note that both types of configuration are upgradable whereas customization is not.

(2)?????Advanced Processes Offer the Best Shot at Excellence

Advanced Processes vs Best Practices

Advanced processes are at a higher level than best practices. Chronic failure analysis, for example, has several best practices supporting it: (a) failure mode captured on the work order, (b) bad actor report with valid sort metric, (c) ability to dynamically drill-down on a 3-piece failure mode, and (d) reliability team that runs the bad actor report and drills down on cause.

Advanced Processes can have Complexity

Advanced processes, if successfully implemented, offer the greatest potential payback in terms of efficiency, productivity, ease-of-use, and cost savings.?Their complexity is usually due to the combined requirements of software configuration, procedure development, process/role training, data loading and culture (i.e., acceptance). Although they are more complex to implement, they offer the greatest rewards.

What makes a process to be labelled as advanced? Historically speaking, organizations struggle to create a weekly maintenance schedule; use the CMMS for failure analysis; establish the ideal maintenance strategies (e.g., from RCM); overcome bad data in the CMMS; automate warehouse operations; capture work order feedback; and set up integrated project management for large projects. Hence, process improvements in these areas are considered to be advanced.

(3) There will Always be Challenges

DATA QUALITY: Ask anyone, "How good is your CMMS; can you depend on the data to make decisions? And if the data is bad, can you trust the reports which come out of the system?"

LEADERSHIP: Does leadership understand asset management? Does anyone have certification in reliability? Is the endgame clear? Does a core team exist? A CMMS does not run itself; nor does it prevent bad data from being entered. Simply installing a CMMS does not improve reliability.

CULTURE: A CMMS can be misused. For example, leadership may focus solely on tracking workers time as opposed to true asset management. When this scenario occurs, the working level quickly learn management’s intent, and begin to dislike the CMMS. Eventually, a tipping point occurs where all trust is lost. It would be much wiser for management to focus on bad actors (i.e., assets) and figure out ways to reduce failure.

(4)?????A CMMS Utilization and Data Quality Plan are Essential

Successful organizations promote optimum use of the assets, but a poorly utilized CMMS does little to add value, and could actually be a detriment.

The CMMS Utilization Plan would identify the applications and power features that will be used. In some instances data needs to be populated or cleaned (after go-live) before utilizing the power features.

A Data Quality Plan (DQP) can be created to ensure the right data is collected and verified correct. The DQP might include a RACI chart, proactive error checks, and process flows.

(5)?????Different Ways to Apply Risk Management

Risk management starts with assigning criticality to assets. The best way to do this is with formulas that account for likelihood of failure, consequence and mitigation. Ranking the backlog of work is next. As work orders are created, whether from PM generation or needed repairs, the backlog needs to be periodically ranked as to importance as everything cannot be priority one. In addition, this ranking process, needs to be done via a WO matrix as no human can accurately rank hundreds of work orders. In order to automate weekly schedule selection, the backlog needs to be accurately ranked.

(6)?????CMMS Process & Procedure Provide Direction

ISO-55001 is the standard that references asset management plans by asset class which identify expected service level, and repair/replace criteria. This standard identifies goals, objectives, and subsequent initiatives. As assets fall below their service level, they can be placed into a 5-year capital improvement plan where they will either be renewed or replaced.

CMMS standard operating procedures (SOPs) can be set up in a hierarchy of documents. They add clarity to what the process involves and who is responsible for entry. Procedures are especially important for "advanced processes" such as establishing asset criticality, performing RCM analysis, performing an RCFA, performing chronic failure analysis, creating a weekly maintenance schedule, and updating a work order at job completion.

(7)?????Strategic Roles Support Operational Excellence

Leadership teams should always be thinking about how to improve, such as: How can we better use the CMMS to make more informed decisions? How can we reduce reactive maintenance; or reduce work altogether? How can we automate weekly maintenance scheduling? whereby it creates a "set of work" in seconds? How can we focus on bad actors and drill-down on failure mode to arrive at cause?

A fine-tuned organization engages all levels of the organization on the journey for reliability. Input can come from any level to enhance asset performance, improve work force productivity, add efficiency, reduce hazards, and optimize costs.

Tactical and Strategic

There are tactical roles such as maintenance technicians, operator roles, and planner/schedulers. There are also strategic roles such as asset manager, core team, reliability team, business analyst, and gatekeeper. These strategic roles help average organizations optimize return on asset.

The significance of a core team cannot be overstated. Too many organizations have a one-guy administrator which is the fault of leadership. Either they don’t care or they don’t know what’s involved. A core team would be responsible for the success (or failure) of the CMMS in terms of extracting value to support asset management. Membership would include the asset manager, reliability engineer, business analyst, CMMS admin, gatekeeper, chief planner/scheduler, HSE representative, and materials management representative. This group would maintain a punchlist for issues and enhancements. They would also maintain the long range plan; organize training; and conduct periodic surveys/audits.

(8)?????The Real Truth about Maintenance Scheduling

As mentioned earlier, one of the major weaknesses within the CMMS product and user community is the ability to create a weekly maintenance schedule. If it were to be manually created, this process would be quite time consuming and rely heavily on subjectivity. But, if it were automated, then any size organization could instantly create a weekly schedule. Note: This is an “ease of use” factor.

There are many books written on planning & scheduling. Plus, there are many industry professionals who teach planning & scheduling. All too often, the emphasis is more on planning and not scheduling. Planning is absolutely important but I believe there is general weakness in setting up a weekly maintenance schedule (and process) that is practical. As to why this is quagmire exists, there are numerous reasons:

RLP here .

Sorry, but there is No Product which Handles all Forms of Scheduling

Currently, there is no single scheduling tool that performs all of the functions needed to support whole-scale project scheduling. Therefore, the prospective buyer must be real clear as to what it is they want to do - and very few are aware.

Any Size Organization

There now exists a resource leveling program (called the RLP) which resides inside the CMMS and creates a "set of work". The planners then convert this set of work to fully-planned work orders. The RLP ensures the right amount of work is selected - and scheduled. This means any size organization can create a weekly maintenance schedule. For more information, contact Maintenance Group Inc ., Halifax, Nova Scotia.

(9)?????Major Projects (and STO) Require an Integrated Cost/Schedule Solution using a WBS with Cost Accounts

In the world of asset management, there are some projects that require careful attention to detail. In order to perform this necessary level of management, the proper toolkit needs to be applied to ensure scope, schedule, and cost boundaries are met. Examples of major projects include power plant outages, facility shutdowns, oil/gas turnarounds, building refits/alterations, new construction, and IT projects. In the case of a nuclear power plant outage there is an outage manager. He is responsible for the outage scope and timeline. The corporate level (e.g., CFO) is responsible for the overall cost.

The management of major projects usually requires the integration of a work breakdown structure, CMMS, and full-service scheduling tool. The WBS is set up to document all of the deliverables. It defines scope as cost elements with the lowest being the cost account – where the budget value is stored. The WBS also freezes project scope and cost for comparison after the fact. Request for new scope is fully documented and approved by outage manager. Cost/schedule reporting occurs within the WBS structure. The CMMS work order contains all actual costs tied to a work order. One or more work orders can link up to the project code which identifies the WBS project. The schedule status (activity progress) comes from the scheduling tool whereby detailed activities summarize up to the WBS CA and optionally to a WO number. The scheduling tool also identifies the critical path, total float values, progress reporting, and is resource leveled to provide an overall project finish. Management reports show roll-up costs along with ETC; changes in scope; and movement of dollars from contingency to other cost elements.

Note: a weekly maintenance schedule does not have any logic ties; nor does it require a bar chart.

(10)??Embed Safety Through-out the Software and Process

In order for safety to be embedded through-out the CMMS, the surrounding process must be supportive. Worker safety is improved when maintenance supervisors emphasize safety. This education starts with a JSA/JHA at start of shift briefing where the daily plan is handed out. Together, O&M staff conduct lock-out, tag-out procedures. In addition to LOTO, the maintenance worker should go through a safety checklist once at job site. Planners build job plan libraries where they can attach safety plans and PPE requirements. Planners also have the responsibility of identifying potential hazards in the work plan. Schedulers create a weekly maintenance schedule which should be fully planned. By issuing this schedule in advance all supporting departments have advance notice. Schedulers should also emphasize working the schedule and discourage doing routine work outside of the schedule. Leadership should be especially wary of reactive maintenance where there is a higher probability of accidents and injury. At job completion the worker may report feedback which helps to improve job steps, safety measures, and unidentified materials.

The maintenance supervisor has the responsibility of assigning the right staff to the job. Special tasks may require special skills and qualification. The supervisor is also responsible for tracking requalification. The supervisor should also track overtime for the crew and make sure no one is overloaded.

Complex Outage Work has Increased Risk

In addition to on-line maintenance, there can be scheduled outages. Ideally, this scope should be fully planned and materials are staged. Sometimes, complex jobs have mock-ups made before outage start to help staff improve coordination. At completion of the outage, there can be a Post Outage Review where lessons learned are documented.

TIP: By having a formal weekly schedule (or outage schedule), the HSE representative can be notified in advance such that he shows up for any high-risk event. He may be required to verify all personnel are at safe distance in case there is an operational failure.

(11)??Analytical Reports and Failure Analysis support Management by Exception

When there are hundreds, maybe thousands, of records in the database no human can quickly search records to find what they are looking for. And, without analytical reports, the user is left to simply guess. Staff may be keen to offer a guess as to what the worst performing asset (repair wise) is, but if you ask the same question to multiple people you will most likely get multiple answers. The trick is to get the CMMS to provide the answer.

Different Groups have Different Purposes

The maintenance staff uses it to search failure history and analyze previous problems with this asset. An RCFA team will conduct interviews and study completed repair (and PM) work in detail to determine possible cause. A reliability team will run a bad actor report to help them focus on worst offenders. By focusing on worst offenders then a reliability team can effectively manage by exception. The bad actor report can be sorted using various metrics, but my favorite sort metric is, the #1 SMRP Economic Indicator:

Average Annual Maintenance Cost divided by Replacement Cost

(12)??Create a Living Program for RCM Inside the CMMS

Operations?wants high availability. Maintenance?staff wants to manage the backlog. Planners want to plan. But, if you ask the?reliability professionals, they wish that some day the CMMS community would help them promote reliability, availability, maintainability and and track worst offenders. But, is this even possible, and how would the CMMS be designed to help achieve these goals?

A good place to start is by documenting maintenance strategies - called Reliability Strategy Development (or RSD). ?Maintenance/reliability professionals perform RCM analysis against critical assets to document functions, functional failures, failure effects, likely failure modes and suggested maintenance tasks. Lower priority assets will rely on PM optimization, OEM guidelines and senior staff input. Either way, it is best to document these strategies in one place. Tip: Use the CMMS.

Regarding worst offenders, you need to design-build your own Bad Actor Report. Sorry, but the odds are, your CMMS doesn't have this report. Everyone understands the value in RCFA, but the fact of the matter is, you shouldn't be doing this on every breakdown that occurs. It is the smaller failures that are contributing to the greatest O&M cost. If you can focus each day on these problematic assets you will be doing the best you can to reduce breakdowns and become more proactive.

Create a 3-Way Match inside the CMMS in support of an RCM Living Program

The CMMS can be designed to?store the results of RCM analysis. With this data being inside the CMMS, new failure modes from completed repair work can easily be analyzed and updated (in the RCM application). The RCM app is then used to build the PM/PdM records in the CMMS creating a "defendable" database which links the failure mode back to the RCM failure mode.

This entire process is possible because of the validated 3-piece failure mode that consists of a failed component, component problem and cause code. This failure mode resides on the work order, the RCM application and the PM application (each record) making easy electronic comparison using join statements. This unique design provides a best-in-class approach to advanced asset management.

(13)??Benchmarking Should be an On-Going Activity

Benchmarking is an excellent way to pursue continuous improvement. The objective is to find ways to add efficiency; improve productivity; promote job safety; and optimize costs. But what exactly is benchmarking, and why is it important? Five examples shown below:

1. Perform self-evaluation of current process and technology looking for ways to improve.
2. Seek expertise from co-workers & management.
3. Conduct extensive research by yourself or as a group, using books; trade magazines; library; Internet, e.g., LinkedIn; on-line forums; podcasts.
4. Attend training venues and conferences
5. Visit other companies and industries

But how do you know when you discover a “good idea” or industry best practice? The person performing this analysis should have a good understanding of company goals and objectives. He should also be aware of current processes - and challenges. Plus, it helps to have an idea as to what defines industry best practices. With that background the surveyor can have an idea of what to look for, however, sometimes you discover something unexpected.

The next decision point becomes, “Is this process (or technology) applicable to our organization. Will it add value?” Not every discovery fits the company goals. But when it does then leadership needs to see where it fits into their long-range plan.

(14)??Sustaining Excellence with a Long Range Plan

There is no such thing as the perfect organization. Hence, every organization should have a list of things to do which help them improve. But because each initiative takes time and has a cost, priorities must be assigned. And sometimes, it is important to identify the shortest path to value. Large organizations may have a 5-year plan whereby each year has a list of projects.

A 5-year plan (actually a schedule), posted on the wall, helps leadership stay focused. Milestone leaders use this schedule to show a timeline, but more importantly, the prerequisites to reach completion.

Collective Organizational Change

The more important question is .... How do you know when an organization is on-board with organizational change?

Answer: Collective organizational change is in place when . . . all levels of the organization understand that continuous improvement is essential. Work order feedback is regularly provided by the working level to identify issues - and provide suggestions. Defect elimination program is strongly supported; operators understand and support an ODR process. Accurate data is captured in CMMS to make more informed decisions and manage by exception. All stakeholders willingly support improvement initiatives as laid out in the long range plan.

Long Range Plan - what is it?

The following illustration shows year 1 of a 5 year plan. The core team identifies which milestones add the greatest value to this overall improvement plan. Each milestone can have a project leader and associated sub-schedule.

Some organizations request outside assistance to perform an overall assessment to build the “list of actions” and help leadership prioritize the list. The project leader should also have industry best practice knowledge so that this could be referenced when building the gap analysis.

The Two Most Significant Benefits of Any CMMS

If I could only choose two,?the two most significant benefits of any CMMS?would be to?create a living program for RCM to optimize maintenance strategies?and to provide an automated, resource-leveled, weekly maintenance schedule.?I singled these out because this is where the greatest shortfall currently resides in the CMMS community going back 30 years.

Culture Eats Strategy for Breakfast

The hardest part about seeking improvement may not be the technology - or process. Rather, it might be the surrounding culture that needs to be fixed. If procedures aren't followed, this is culture. If goals are not aligned, this is culture. If feedback is minimalistic, this is culture. Lastly, technology (as in CMMS interaction) cannot prevent bad data by itself. The staff has to want to do the right thing.

It's Your Decision

In general, reliability professionals and the CMMS community struggle to communicate due to a lack of understanding. The CMMS industry promotes technological venues and the reliability professionals attend maintenance/reliability conferences. Consequently, there is no intersecting vision.

Best-in-class organizations recognize the importance of change. They understand that change is constant. It can originate from within or it can be forced upon you, i.e., due to external circumstances. The goal should be to constantly learn using a benchmarking process where you can discover the right change which delivers the greatest benefit. The litmus test for every large organization will be when they have accomplished collective organizational change whereby all levels understand that continuous improvement is essential – as survival is not guaranteed?

This following training plan explains how to properly use a CMMS to optimize return on asset. This training medium could add significant value to your profession.

https://www.dhirubhai.net/pulse/essential-elements-cmms-optimization-john-reeve