Ten Pitfalls to Avoid When
Selecting a CMMS/EAM
presented by:
David Berger
Western Management Consultants
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About WMC and David Berger
David Berger
• Professional Engineer and MBA
• Written more than 350 articles on strategy, operations/IT
improvement, and organizational design
• Extensive industry experience including 2 manufacturers, and an
Executive with one of North America’s largest financial
institutions
• Worked as consultant with numerous clients from all industries in
area of specialization – maintenance, asset management,
CMMS/EAM
Western Management Consultants (WMC)
• 30+ years in the general management consulting business
• Multiple offices across Canada
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Introduction
• How can you get more out of your operating assets?
• CMMS/EAM software is key
• Long history of poor research, selection, and
implementation of the right CMMS/EAM solution
• 10 of the more common mistakes to avoid when
looking for a new or replacement CMMS/EAM
• The mistakes are listed in no particular order
• Recent survey by Plant Services magazine
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User-Centered Design
Mistake #1 – You are far too focused on the software’s “look
and feel”.
• “Intuitive User Interface” ranked #1 importance in PS survey
• Significant progress by most vendors in this area in recent years
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Configure look and feel with screen painters
Tailor menus, tabs, screens, etc. to focus on priority work
Navigation tools like “favorites”, cookie trail, screen history
Data entry and reporting aids like comprehensive filters/sorts,
flexible form/report configurator
• Most vendors have user groups, human factors expertise, and
modern development tools that ensure proper user interface
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Vendor Partnership
Mistake #2 – You are purchasing software based on
functional fit only.
• “Ease of implementation” ranked #2 in PS survey
• EAM vendor = partner through implementation and beyond
• Key vendor support services include
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assessment of organizational readiness and gap analysis
process design expertise
knowledge of industry best practices
assistance in establishing key performance indicators (KPIs)
facilitation of data analysis and decision-making
longer term upgrades, additional modules, add-ons
• Examine financial health, track record and corporate culture
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Real-time Knowledge Management
Mistake #3 – You think your CMMS/EAM is just a static data
and reporting system.
• EAM = real-time monitoring & control system including:
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notification feature (eg, escalate severe KPI variances)
alarming or alert management
sophisticated workflow engine
advanced planning functionality such as real-time monitoring and
trend analysis for conditions, energy consumption, emission levels,
regulatory compliance, etc
• “Planning and scheduling” ranked #3 in importance in PS Survey
• “Notification and workflow” ranked as second-worst in terms of
how well their current CMMS/EAM package performs
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Decision Support
Mistake #4 – You are hung up on the slicing and dicing of
CMMS/EAM data.
• “Maintenance optimization” & “Analysis tools” are
ranked #4 & 5 in importance in PS Survey
• Analysis capability is the differentiator, not reporting
• Key decision support features to look for include:
- configurable KPIs
- dashboards and business intelligence
- advanced analytics, maintenance optimization tools
- comprehensive risk-management / compliance tools
- advanced warranty-management functionality
• Look into notification and workflow functionality
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Energy Efficiency & Environmental Control
Mistake #5 – You believe “green” functionality is today’s
“flavor of the month”.
• U.S. companies invest > $100B per year in capital equipment &
services; but spend > $400B per year on energy
• “What current trends do you think will have the most impact on
operations in U.S. manufacturing plants?” – Energy prices #1
• Clear competitive advantage for companies that can monitor and
control energy costs
• Key sustainability features to look for in a CMMS/EAM are
- measure energy use at the asset level
- compare carbon footprint of assets, products, product lines, etc.
- incorporate maintenance practices and standards that ensure energy
efficiency of assets are optimal
• “Health, Safety & Environment” ranked #6 in importance in PS survey
• “Comprehensive energy tracking” ranked #17 in importance, and worst
in terms of how well packages perform
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Flexibility
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Mistake #6 – You are focused solely on how the CMMS/EAM
will satisfy your current needs.
CMMS/EAM requirements should cover 3+ years out
Consider requirements of departments other than maintenance,
(operations, engineering, purchasing, finance, IT…)
Specs should ensure flexibility to make changes to the software
as stakeholder needs change
Flexibility = configurability. Ranks #7 in importance. Includes:
- quick and easy configuration to meet the specific needs of users
- workflow engine to quickly redefine key maintenance process logic
- configurable KPIs for easily changing priority measures for analysis
and reporting
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Enterprise Thinking
Mistake #7 – You tend to focus on how the CMMS/EAM
benefits your location, instead of what benefits the
organization overall.
• Select a CMMS/EAM package that can accommodate the needs
of each plant, as well as the overall enterprise
• Strategic asset management functionality satisfies needs of
- all levels in your company, from corporate to the shop-floor,
- along the entire asset life cycle (i.e., design, procurement,
installation, maintenance, disposal), and
- for any asset class (i.e., plant equipment, facilities, fleet,
infrastructure or linear assets, and IT)
• “multi-site” and “strategic asset management” ranked #20 and
#16 in importance in PS Survey – shows local plant bias
• Millions of dollars savings potential for multi-plant organizations
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Best of Breed versus Single-Vendor Suite
Mistake #8 – You think implementing a single vendor ERP/EAM
solution translates into the most “fully integrated” solution.
• Multiple best-of-breed solutions: too much software to support and integrate
• Select a single, best-fit, enterprise-wide, best-of-breed CMMS/EAM that
integrates well with corporate ERP suite, i.e., strong open systems
• “Open systems” ranked #7 in importance & 3rd worst in current performance
• May want access to information & processes outside CMMS/EAM, eg,
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aligning maintenance and production schedules
integrating labor data entry for both asset history and payroll purposes
integrating with applications specific to mobile devices
handling chargebacks for third-party billing
accounting properly for large capital projects involving maintenance
• Some best-of-breed CMMS/EAM packages are easier to integrate than suite
solutions -- tend to be more open and flexible, and by necessity have always
had to integrate with corporate and other systems
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Total Cost of Ownership
Mistake #9 – You think it is always better to own and control
your hardware, software and support services.
• “Payment cash flow flexibility” ranked last in PS survey
• Consider payment & deployment options that are more cost-effective,
improve cash flow, lower total cost of ownership (TCO)
• “SaaS” or “Software as a Service”: provides flexibility to pay monthly per
named user, incl. hosting, training, consulting and other start-up costs;
• Be wary of long-term risks if vendor outsources to third-party
• Consider web-architected solution with lower TCO, i.e., cost of
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licenses,
implementation,
training,
upgrades,
ongoing maintenance and support and
hardware.
• “Web-architected solution” ranked #19 of 21 in PS Survey
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Benefits Realization
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Mistake #10 – You celebrate the day the CMMS/EAM system
goes live.
When would you consider the CMMS/EAM system successfully
implemented – after a successful go-live?
Success = benefits realized, not system installed
Success must be defined in terms of performance measures and
targets; the CMMS/EAM tracks progress
“Benefits realization” is ranked only #8 of 21 in PS survey
In my view, the most important criterion in selecting a
CMMS/EAM vendor and its software solution is ability to
facilitate achievement of target benefits
• All other criteria must then align and support benefits realization
• Your CMMS/EAM vendor is an important partner in ensuring
success over the long term
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Q&A and Contact Information
David Berger
Western Management Consultants
Phone: 416.362.6863 ext 237
Email: david@wmc.on.ca
To get more information about Infor EAM solutions:
www.infor.com/eam
1.800.397.6413
infoEAM@infor.com
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