Asset Performance Management for Manufacturing
Mary Gorczynski 1100006B54 firstname.lastname@example.org | | Tags:  tivoli maximo asset-management service-management eam manufacturing
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This is a blog posting is from Eric Luyer, Market Manager for IBM Asset Management, Industrial Manufacturing.
Hello there. Time is going fast and I just returned from a busy week at the Pulse Conference in Las Vegas; I finally found some quiet moments to write this. This time I will be talking about Asset Performance Management or APM for short - which is a great topic with a lot of attention today for many people – varying from end users, management and software solution vendors.
In the manufacturing industry with its current volatile market conditions, increasing regulatory requirements and growing competition globally and pressures to lower cost, there are ever-increasing expectations for higher return from assets as well as the need for better and faster decision making. In any manufacturing environment there is the need to have better overall asset performance that contributes to the business success, and this involves the optimal use of a sophisticated EAM system, ideally integrated with “surrounding” systems as MES and other operational systems as well as the ERP system to fully support the information flow from “the shop floor to the top floor”.
I want to quote AMR Research when they did a study on asset performance in 2007, in which they said, “To respond to these pressures, 'Asset Performance Management (APM) is an approach to managing the optimal deployment of assets to maximize profitability and predictability in product supply, focusing on real margin contribution by asset by product code. Rather than looking at an asset on the basis of market value or depreciated value, companies can see how the asset is contributing to their profitability by looking at how individual assets are performing--whether inventory or Plant, Property, and Equipment (PP&E)--and developing a vision of how they want to allocate resources to assets in the future. More broadly, it looks at the whole lifecycle of an asset, enabling organizations to make decisions that optimize not just their assets, but their operational and financial results as well.'”
APM drives efficiency while leveraging common processes and approaches to improve profitability. How? By integrating key internal and external applications and processes to effectively manage the life cycle of critical business assets. APM enables companies to put strategies in place for improving equipment performance and reducing operational risk, manage compliance and to ensure that your reliability processes are aligned with your business goals. The biggest benefit of an APM solution is for organizations that can now react much more dynamically to changing plant conditions than was previously possible.
A full operational Asset Performance Management system should provide:
Asset strategies tied to corporate KPIs give a clear understanding of a common goal and alignment of resources. When targets are not met, a process can be put in place to analyze the results and determine if the strategies for a specific asset need to be changed. A closed-loop business process can now be put into place that is flexible enough to quickly address performance issues or change corporate objectives.
With all functionality currently available in the IBM Maximo Asset Management solution, the integration capabilities with other systems like Manufacturing Execution Systems or other operational systems as well as support of advanced manufacturing concepts as RCM, TPM and Lean Manufacturing, it creates tremendous opportunities for manufacturing organizations to achieve better return of all assets and more overall added value to their business.
Thanks for reading and looking forward to my next blog!
Eric Luyer, Market Manager Asset Management (Industrial/Manufacturing), IBM - Tivoli