EAM Assessment Methodology A

Graphical Viewpoint
http://www.genesissolutions.com/eam-assessment-methodology-a-graphical-viewpoint/

GenesisSolutions has developed a proprietary methodology for evaluating and implementing a

comprehensive enterprise asset management strategy for organizations in a wide array of
industries. The approach utilized for our customers today is one that has been developed over the
last 10 years.

In a career spanning 35 years in both engineering and reliability engineering, Mike Greenholtz,
Vice President of Reliability Solutions, has developed a global, standardized approach to EAM
Master Plan implementation. Expanding on the processes he created at an industry-leading
pharmaceutical company, Mike and his team, including Quinton GoForth, Director of Reliability
Services and Lean Six Sigma Black Belt, has helped GenesisSolutions replicate this process for
hundreds of customers in nearly every asset-intensive industry imaginable. In essence, the
process is about understanding where a company is at present in terms of asset management,
where it wants to go and how the strategy can help it get there.

The EAM Process and Value Proposition

When he started at GenesisSolutions, Mike took the standardized process of EAM strategy
implementation he created and combined it with the idea of identifying key reliability
imperatives and used that to replicate his global process for all of our customers. This is how
Mike and his team adopted the DMAIC Define, Measure, Analyze, Improve and Control
approach to EAM Master Planning.

A lot of big companies Fortune 500 companies certainly have a lot of technical know-how.
They have engineers, certified maintenance reliability engineersthey have all these things, but
they still struggle to implement a successful reliability program. And I think its because of two
things: One, they dont have a set implementation process, and two, they dont have a clear value
proposition, Mike said.

In addition to giving businesses a proven process for a comprehensive EAM implementation,

Mike helps our customers understand the why, or value proposition, behind the process. This
could be a variety of business goals, from improved safety, to a more efficient operation and
increased profitability thanks to less downtime.

Theres a reliability imperative thats what I like to call it. Each business needs to understand
what the driver is to embark on the journey of enterprise asset management. For me, it was
helping to protect a franchise that provided our customers with life-saving medicines like
vaccines. So that was our value proposition, Mike said.

Why Its Worth Investing in EAM Master Planning

EAM is in large part about streamlining maintenance operations to make a business more
efficient as a whole. But most businesses havent even made the investment in EAM, and that
means theyre constantly stuck in a reactive mode without a set process or Master Plan that is
costing them money in the long run. This is primarily caused by the fact that they have no asset-
related data that tells them where they are or what they can improve. Thats why Mike feels that
only 5 percent of businesses already have world-class maintenance. The other 95 percent are
working with EAM policies and strategies that to some extent, are archaic.

Its a very small investment, and it pays off. In my experience, for every dollar spent improving
EAM, you typically get about $7 back. Mike said. One of the biggest challenges is the fear of
transformation, the fear of change. Weve always done it this way, people would say. But by
educating business leaders on how important EAM is to their overall mission and how the
DMAIC process can support that, I find it hard to believe that someone wouldnt see that its just
a small investment.

The following infographic gives a wireframe look at the five steps in the DMAIC process in
regards to implementing an EAM Master Plan:
Define Taking An Organization-Wide Look At Reliability and EAM Maturity

The first step involves defining the EAM Maturity continuum, as shown below:
Every business starts out somewhere on the EAM Maturity continuum and must work its way up.

The continuum runs from reactive maintenance to predictive and condition-based maintenance,
with the latter signifying a more efficient asset management program.

The maturity continuum is based on asset management Best Practice criteria. Professional
standards such as those from the Society of Maintenance and Reliability Professionals as well as
PAS 55 and ISO 55000, amongst others, have been incorporated into the assessment criteria.
This wide breadth of influences on the EAM Maturity continuum make it something that can be
applied to the whole enterprise, not just what happens on the shop floor.

Just recently, weve taken the ISO 55000 standard and weve integrated it into the DMAIC
approach. We did this because we felt that based on recent experience with a customer who
wanted us to use ISO 55000 to assess its operations. I didnt want to do it without combining it
with our approach. I felt that they wouldnt be satisfied with the output from the standalone ISO
55000 assessment. ISO 55000 gives you a good read into how senior management sees asset
management in terms of governance and having the right metrics in place, but what it doesnt get
to is the shop floor level, Mike explained.

From that project, Mike decided that the best way to move forward was to use the ISO 55000
standard to define EAM maturity from an upper management perspective, while using the
DMAIC approach to analyze workflows, planning and scheduling, etc.
Measure Quantitatively Assessing Operational Performance

This step is about determining where the customer is on the EAM Maturity spectrum. We
quantitatively examine the following areas known as the seven foundational maintenance
elements:

Organizational Readiness
CMMS Functionality and Utilization
Work Management
Maintenance and Reliability Strategy
Inventory Management
Planning and Scheduling
Metrics and Performance Improvement

Essentially, we want to see how the maintenance organization is currently positioned to

maximize the utilization of the Computerized Maintenance Management System (CMMS) and
RBM (Reliability Based Maintenance) strategies to support the companys stated business
objectives.

Our measurement process is collaborative. Its not an audit. We conduct surveys, we look at the
maintenance organization and their customers and get a holistic view of the entire network,
Mike said.

Analyze Finding the Path to Achieving EAM Goals

Once weve measured the performance across the seven foundations, we analyze the results to
see where the organization is and how we can move them from where they are to where they
want to be. This is essentially the structured roadmap to the desired state and is a documented
project plan detailing the time required, number of resources and required milestones to achieve
the future state goal.

We do the assessment to see not only where we reside on the EAM continuum, but find the
areas of opportunity and prioritize those areas for improvement. And we dont start by taking the
most difficult areas to begin with. We save those for later. We pick the low-hanging fruit first
because thats how you get those early wins and get everyone to buy into the process early on,
Mike explained.

Improve Implementing The Master Plan

This is where the rubber meets the road and the implementation begins. This is where we choose
what parts of the Master Plan we will implement according to their priority as it pertains to
achieving the goals laid out in the earlier steps of the process. All stakeholders are involved here
so the stage can be set for continuous improvement across the entire business.

We follow the Master Planning process where we address foundational elements. This goes
back into continuous improvement. What we want to do is build a strong foundation. Ive seen a
lot of failures because customers want to go for the fruit at the top of the tree. But theyre not
investing in training or devoting the appropriate resources. You cant have world-class planning
and scheduling if you dont have work order processing or a CMMS that supports planning and
scheduling, Mike said.

Control Using Management Controls and Reporting to Track Performance

Fostering continuous improvement is the end result of the implementation. We appoint an Asset
Management Council that will ensure management controls and reporting systems continue to
utilize key performance indicators to measure and monitor the impact of the program.

Mike concluded: As I said, the program I developed 10 years ago is still running. That comes
from management control systems and governance processes. As part of our implementation
model, we create a maintenance council that takes ownership of the Master Plan. Were looking
to see if we have the continuing commitment of resources or an expense budget. What are the
milestones we established with the Master Plan and how have we reached them? Thats what Im
looking for.