LESSONS LEARNED IN
IMPLEMENTING CORPORATE
PROPERTY AND LOGISTICS
MANAGEMENT SYSTEMS COUPLED
TO LARGE ERP SYSTEMS
NPMA National Educational Seminar
June 15, 2010
Myrtle Beach, SC
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A s s e t S m a r t®
SMART asset management software
Introduction
Many large organizations have consolidated
their financial, HR and manufacturing
operations under ERP Enterprise Resource
Planning Systems. However, most ERP
packages lack robust asset management
functionality, presenting a serious challenge
for asset management professionals.
Why might you consider a bolt-on solution in
this situation, and how do you make it work
for your organization?
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A s s e t S m a r t®
SMART asset management software
Key Topics
• Why Choose the Bolt-On Route?
• How Do You Get There?
• Common Risks and Pitfalls
• Conclusion
• Q&A
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A s s e t S m a r t®
SMART asset management software
Why Choose the Bolt-On Route?
• Address ERP Functional Gaps
• Knock-Down Information Silos
• Open-up Access to Asset Data
and Functions
• Maintain More Direct Influence
and Control Over the System
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A s s e t S m a r t®
SMART asset management software
Custom Development or COTS?
• Three Basic Options:
1) Customize the ERP System
2) Build from Scratch
3) Obtain a COTS Solution
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A s s e t S m a r t®
SMART asset management software
Advantages of COTS Software
• Substantially Reduces Total Cost of Ownership
• Specialized Implementation Help is Available
• Improves Continuity of Updates and Support
• Leverages Industry Best-Practices
• Guards Against Technological Obsolescence
• Accelerates Implementation and Lowers Risk
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A s s e t S m a r t®
SMART asset management software
How Do You Get There?
Key Elements of Asset System Implementations
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Project Management
Requirements
Resources
Process Analysis
Data Migration
Integration
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Reporting
Security
Performance
Testing
Training
Ongoing Support
A s s e t S m a r t®
SMART asset management software
First Steps
Plan the Work, then Work the Plan
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Define & Document Requirements
Assign a Project Manager
List and Estimate Detailed Tasks
Allocate Resources to Tasks
Set Realistic Schedule and Budget
Rinse and Repeat
(Revisit the Plan Frequently)
A s s e t S m a r t®
SMART asset management software
Do Not Just Automate a Poor Process!
“The first rule of any technology
used in a business is that automation
applied to an efficient operation will
magnify the efficiency.
The second is that automation
applied to an inefficient operation
will magnify the inefficiency.”
- Bill Gates
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A s s e t S m a r t®
SMART asset management software
Process Analysis and Mapping
• What do your Asset Management
Professionals and other Customers or
Stakeholders do on a Regular Basis?
• Can and Should it be Tracked or
Automated by the New System?
• How Can we Improve the “Old Way”?
• Exactly How will the New System
Perform Each Function?
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A s s e t S m a r t®
SMART asset management software
Data Migration
• Identify ALL Sources of Data
• Enlist Subject Matter Experts
• Assess Data Integrity and
Completeness – Be Honest!
• Load Using High-Level Tools that
Enforce Validations if Feasible
• Require Stakeholders to Validate
their Data after Loading
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A s s e t S m a r t®
SMART asset management software
Potential Integration Points
• Potential Inbound Integration Points
(into Asset System from ERP)
• New Asset or material receipt from
procurement
• Master/Reference Data
• Contracts, Account/Charge Numbers,
Employee Data, Vendors/Suppliers
• Maintenance/PM Information
• Fixed Asset Data, Depreciation, Book
Value, Useful Life
• Shop-Floor Tool Damage or Scrappage
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A s s e t S m a r t®
SMART asset management software
Potential Integration Points (cont’d)
• Potential Outbound Integration Points
(into ERP from Asset System)
• Current Asset Location, Organization,
Status and User
• Departmental Charges (Calibration, Repair,
Mods)
• Material Orders or Re-Orders
• Bidirectional
• Special Tooling Fabrication & Cost Details
• Capital Asset Disposition
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A s s e t S m a r t®
SMART asset management software
Integration Techniques
• Vendor-Provided Tools
– Web Services and other API’s
– Canned Interfaces / Adapters
– Import Tools for Excel, etc.
• Database Views, Stored
Procedures or Triggers
• Conventional Custom
Programming
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A s s e t S m a r t®
SMART asset management software
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Reporting
• Three Basic Flavors:
1) Built-In Application Queries or
Standard Forms/Reports
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Examples: Asset Lists by Status,
Site, Contract, DD1149 Form
2) Custom Canned Reports
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In-House Management Reports
Produced on a Regular Schedule
3) Ad-Hoc Queries/Reports
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Unpredictable “One-Off” Queries
A s s e t S m a r t®
SMART asset management software
Security
Typical Application Security Layers
Authentication
(ID &
Password)
Functional
Access
(Security
Roles)
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Data Access
(Partition /
Global)
Data Access
(Record Level)
Business Logic
Audit Trail
(Approval
Authority)
(Transaction
Register)
A s s e t S m a r t®
SMART asset management software
Performance
• Performance is Critical to User
Acceptance of the System
• Involve IT Staff and Vendors Early
• Set Target Response Times
• Collect Data During Testing Cycles
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A s s e t S m a r t®
SMART asset management software
Testing
• Develop Written Test Plans from
your Business Process Maps
• Also Ensure that all Interfaces and
Security Controls are Tested
• Use Realistic Data Values and
Volumes
• Configure Test Environment as
Similar as Possible to Production
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A s s e t S m a r t®
SMART asset management software
Training and Change Management
Do not Underestimate Human Inertia!
Change Management is Crucial
“It must be considered that there is
nothing more difficult to carry out nor
more doubtful of success nor more
dangerous to handle than to initiate a
new order of things”
- Machiavelli
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A s s e t S m a r t®
SMART asset management software
Common Risks and Pitfalls
• Lack of Strong Management Support
• Imbalance in Goals vs. Available
Resources
• Perpetuation of Outdated Processes
• Inadequate Testing
• Incomplete/Unclear Documentation
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A s s e t S m a r t®
SMART asset management software
Conclusion – Key Takeaways
• Set Realistic Goals and Timelines for the
Project – Define Success at the Onset
• Rigorously Apply Project Management
Principles – Who Will do What by When
• Re-Visit All Legacy Data and Processes –
Always Question the Status Quo!
• Document, Document, Document!
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A s s e t S m a r t®
SMART asset management software
Q & A / OPEN DISCUSSION
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A s s e t S m a r t®
SMART asset management software
For Additional Information
PMSC
2800 28th Street
Santa Monica, CA 90405
310.450.2566
www.assetsmart.com
info@assetsmart.com
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A s s e t S m a r t®
SMART asset management software