Enterprise Asset Management (EAM)

Enterprise Asset Management (EAM) has come up over the past 5 – 10 years as the new buzz word. Internet of Things (IoT), Business Excellence, Enterprise Content Management (ECM), Enterprise Resource Planning (ERP) and the list goes on. EAM is simple and considers a life cycle view of physical assets. Structured Change challenges this by suggesting that EAM applies to non-physical assets such as Human Capital, Branding and Intellectual Property (IP).

Enterprise Asset Management (EAM) – An Enterprise Asset Management (EAM) system is a data-centric, information technology platform that supports an Asset Management System. it is not the Asset Management System in its own right. EAM considers the whole of life (Cradle to Grave) of an asset. It considers the Fit, Form, and Function of an asset as well as the supporting Cost, Risk and Performance the asset is trying to provide. A good Asset Management System coupled with an EAM will allow demand to be translated into an organization and converted to value for stakeholders. A well configured EAM will assist an organization to understand what needs to occur, on what, when, and for the more advanced EAM platforms how an asset-centric task is executed. From data design through to process design and blueprinting Structured Change has experience in many of the major EAM platforms.

ERP vs EAM – A challenge every organization faces when it moves to a large scale Enterprise Resource Planning (ERP) platform or Asset Management (EAM) platform is striking a balance between managing the whole of life cost of an asset and the accumulated cost that often settles to a Cost Centre.

There is a top-down bias from Top management to understand the operational cost and assign it to Cost Centres in order to track and underpin decision making. Or is it the other way around from Reliability Engineers, Engineers, Supply Chain, Maintenance and operations who seek to learn how much an asset is actually costing them? Cost can be masked against internal labor rates, stock on hand, damaged equipment, incorrect operating parameters and many more.

Structured Change has real on the ground experience who understands and appreciates that all organizations work in brownfield conditions and to change toward Asset Management is not simply a flick of a switch in a system. It needs to be understood that to get asset information out of a system, data has to get into a system.

Master Data Management and Master Data Governance – Data is king for any organization and the design and management of data structures lay the foundation for informed decision making. Master Data Management (MDM) and Master Data Governance (MDG) are often an afterthought. MDG needs to come before MDM but it is often a result of configuration loss (or recovery) that the need for MDG is truly understood.

Did you know that ISO8000 is one such standard that brings enterprise data under one umbrella? Imagine having IT and core Business embrace the importance of data and information for the same reasons! An organization needs to understand what its data requirements are BEFORE embarking on any EAM journey.

Information is an Asset in its own right. It needs to be designed, created, maintained, operated (used) and eventually, it will become redundant and can be disposed of when it is no longer required for decision making.

Role and Competency Management – Section 7.2 of ISO55001 discusses the requirements for competency management. An EAM will need to be aware of what and how roles in the organization are deemed competent to undertake tasks that support assets. (this extends to supporting processes as well). A well designed EAM will link competencies to tasks then skills to people creating an integrated competency management system.

Structured Change has experience in the design and implementation of Functional and Composite system roles. Effective Role design allows an organization to leverage Human Capital as opposed to chasing it. The design, development, and treatment of workforces as an “Asset” is a critical consideration and one that is often overlooked. Human Resource departments are often blamed for the lack of competency management but it is the organization collectively that needs to embrace Human Captial Management (HCM) holistically, and not just the simple illustration of an organizational chart.

Process Management and Process Improvement – Go hand in hand but Data (Information) needs to find its way back through the Asset Management System in order to close the loop. The distinction between process and workflow and value streams needs to be understood in our engagements with the wider business. Data is evidence of a transaction taking place. Information is the interpretation of data in a given context. Knowledge is what people possess (“experience and insight”) and wisdom is the ability to respond to any situation with the inherent confidence that your underlying decision-making process combines Data, Information, and Knowledge.

Data, Information, Knowledge, Wisdom

System workflow and Business Process – Does an organization change a business process to suit a system, or do they choose to modify a system to accommodate a process?

Experience has shown that a system will only influence behavior so far. If people do not believe in the underlying system they will find another way! “Water runs to the path of least resistance”. Structured Change understands this and has strategies in which to assist in the alignment of an organization in terms of values, behaviors, and culture.

Structured Change understands workflow and how to determine the correct balance on the back of Asset Management principles. (see SIPOC as a tool) Understanding how business process supports the value streams of an organization must take place before venturing into system functionality. Organisations that do this in the reverse order are likely to regret the decision after implementation.

Enterprise Architecture

Structured Change adopts Enterprise Architecture as a means for capturing the elements that make up an organization. Process, documentation, business systems, information technology, people, skills, business motivation, people motivation, market forces etc. By collecting these elements and connecting them visually an organization is placed in a position to visualize their operation and see the available levers for sustained change. Structured Change provides all models created on behalf of a customer at $0 (zero) charge. Our change framework is ours, but your intellectual property (IP) is yours and as such we do not charge accordingly.