Maximo

BLOG 1a: Know Your Assets -  Tips, Tricks & Practical Use Case

In this next piece on BLOG1, we're going to explore the nitty-gritty of setting up a reliable asset register and dissecting assets, along with highlighting the key distinctions between product lifecycle management and asset lifecycle management. I'll also share some useful principles and approaches. Let’s start with a visual to explain the life from a product or an asset (from cradle to grave):

The difference between PLM and ALM

IBM Maximo implementation projects have been quite the journey for me. One thing that stood out to me This is how the engineering and asset structures can get a bit tangled up, creating a breakdown structure that feels like a maze. It can get to a point where you're not even sure what's what anymore - whether it's an asset, a product, a spare part, or even just a disposable or consumable item. Before diving into setting up a solid Asset Breakdown Structure for implementing Asset Management supported with an EAM system, it's important to have a good grasp of the differences and similarities between PLM and ALM. This awareness is key to prevent ending up with an overly complicated breakdown.

Product Lifecycle Management (PLM) and Asset Lifecycle Management (ALM) are both crucial processes in handling a company's resources, but they each have their own unique areas of focus. Let's dive into the distinctions between the two:

1. Definition and Focus

• Product Lifecycle Management (PLM):

  • Definition: PLM is all about overseeing a product's entire journey, starting from the initial idea, moving through design and production, and ending with service and disposal.

  • Focus: PLM is mainly concerned with bringing a product to life, managing its development from concept to market. This involves everything from design and production to enhancing the product, all while focusing on innovation, speed-to-market, and meeting customer demands.

  • Key Areas: Product design, research and development (R&D), engineering, prototyping, production planning, product launch, and ongoing enhancements.

• Asset Lifecycle Management (ALM):

  • Definition: ALM revolves around handling an organization's physical assets throughout their lifecycle, starting from acquisition, moving through operation and maintenance, and finally, disposal or replacement.

  • Focus: ALM is all about efficiently managing and maintaining physical assets to maximize their value, efficiency, and longevity. The goal is to cut costs, minimize downtime, and ensure assets perform as needed throughout their entire lifecycle.

  • Key Areas: Asset acquisition, deployment, maintenance, operation, repairs, upgrades, and retirement.

2. Scope of Application

• PLM:

  • Scope: Product Lifecycle Management (PLM) is a key player in industries like automotive, aerospace, electronics, and consumer goods. It's all about guiding products from the drawing board to store shelves.

  • Examples: Think overseeing the journey of a fresh car model, a sleek smartphone, or a heavy-duty industrial machine, right from the initial idea to hitting the market.

• ALM:

  • Scope: Asset Lifecycle Management (ALM) steps in to keep things running smoothly in sectors like manufacturing, utilities, transportation, and healthcare. It's all about ensuring operational efficiency and asset reliability.

  • Examples: Picture handling the lifecycle of machinery in a factory, power generation equipment, IT infrastructure, or a fleet of transportation vehicles.

3. Lifecycle Phases

• PLM Lifecycle Phases:

  1. Concept: Idea generation, market research, and feasibility analysis.

  2. Design and Development: Detailed design, engineering, prototyping, and testing.

  3. Production and Manufacturing: Mass production, quality control, and scaling.

  4. Launch: Marketing, distribution, and sales.

  5. Service and Support: Post-launch improvements, customer service, and product upgrades.

  6. End of Life: Product discontinuation, recycling, or disposal.

• ALM Lifecycle Phases:

  1. Planning and Acquisition: Identifying asset needs, procurement, and financing.

  2. Deployment: Installation, commissioning, and integration into operations.

  3. Operation and Maintenance: Regular use, preventive maintenance, and repair.

  4. Monitoring and Optimization: Condition monitoring, performance optimization, and predictive maintenance.

  5. Decommissioning: Disposal, recycling, or replacement of the asset.

4. Goals and Objectives

• PLM:

  • Innovation: Let's drive product innovation to keep up with market demands.

  • Time-to-Market: We should work on reducing our time to market to stay ahead of the competition.

  • Cost Control: It's important to manage development costs effectively to ensure profitability.

  • Customer Satisfaction: Our goal is to make sure our product meets customer expectations and quality standards.

• ALM:

  • Asset Efficiency: We need to maximize asset utilization and performance for optimal results.

  • Cost Management: Let's focus on minimizing the total cost of ownership (TCO) by optimizing maintenance and reducing downtime.

  • Reliability and Safety: Ensuring that our assets are reliable and safe throughout their lifecycle is key.

  • Compliance: We must meet all regulatory requirements related to asset management and safety.

5. Technology and Tools

• PLM:

  • Tools: PLM software like Siemens Teamcenter, PTC Windchill, and Dassault Systèmes' ENOVIA are used to manage product data, collaborate on designs, and streamline product development processes.

  • Integration: Often integrates with Computer-Aided Design (CAD) systems, Product Data Management (PDM) tools, and Enterprise Resource Planning (ERP) systems.

• ALM:

  • Tools: ALM systems like IBM Maximo Application suite are used to manage the entire asset lifecycle, from procurement to maintenance and decommissioning.

  • Integration: Typically integrates with systems for condition monitoring, predictive maintenance (e.g., IoT sensors), ERP, Financial Systems, Geographical Systems (like ESRI), BIM Systems to support digital twinning, etc.

6. End Users

• PLM:

  • Users: Typically used by product managers, engineers, R&D teams, designers, and manufacturing planners.

• ALM:

  • Users: Used by asset managers, maintenance teams, operations managers, facilities managers, and finance departments.

Summary

Product Lifecycle Management (PLM) is focused on managing the lifecycle of a product from its initial idea to its withdrawal from the market, emphasizing innovation, design, and development. Asset Lifecycle Management (ALM), on the other hand, is concerned with managing the lifecycle of physical assets used by an organization, focusing on maximizing asset efficiency, minimizing costs, and ensuring reliability and compliance. While both processes involve lifecycle management, PLM is about creating and managing products, and ALM is about optimizing the performance and value of assets throughout their lifecycle.

Example: Schematic Breakdown Structure according to PLM and ALM

In this example a very schematic overview of the simple breakdown concept of rolling stock.

Asset Breakdown Structures

An Asset Management, an Asset Breakdown Structure (ABS) is a hierarchical framework that organizes assets into categories and subcategories, making it easier to manage, track, and maintain them. The breakdown structures are typically designed to reflect the complexity of assets within an organization and can vary depending on the industry and specific organizational needs. Here are some of the most common or standard Asset Breakdown Structures:

1. Functional Breakdown Structure (FBS)

• Description: This structure organizes assets based on their functional purpose within the organization. It breaks down assets according to the roles they play in achieving operational goals.

• Example: In a manufacturing plant, an FBS might include major functions like production, quality control, and logistics, with each function further broken down into specific assets like machines, testing equipment, and transportation vehicles.

2. Geographical Breakdown Structure (GBS)

• Description: Assets are organized based on their physical location or geographical area. This is particularly useful for organizations with assets spread across multiple sites or regions.

• Example: A utility company might use a GBS to categorize assets by city, district, or even by specific facilities, such as power plants or substations within those areas.

3. System Breakdown Structure (SBS)

• Description: This structure categorizes assets according to systems or subsystems they belong to, making it easier to manage interrelated components within a system.

• Example: In an aerospace context, an SBS might include systems like propulsion, avionics, and landing gear, with each system further broken down into its constituent parts and components.

4. Product Breakdown Structure (PBS)

• Description: Often used in manufacturing or product-oriented industries, the PBS organizes assets based on the end products they contribute to.

• Example: In an automotive factory, a PBS might categorize assets by vehicle models, with subcategories for engines, chassis, interiors, etc.

5. Asset Class Breakdown Structure (ACBS)

• Description: Assets are grouped according to their class or type, such as fixed assets, IT assets, or intangible assets. This is a more traditional approach that aligns with accounting and financial reporting needs.

• Example: An organization might classify assets into categories like buildings, vehicles, machinery, software, and intellectual property, each with its own subcategories.

6. Lifecycle Breakdown Structure (LBS)

• Description: This structure categorizes assets based on their lifecycle stages, from acquisition to disposal. It helps in managing the lifecycle costs and maintenance schedules of assets.

• Example: A company might use an LBS to organize assets by stages such as procurement, operation, maintenance, and decommissioning.

IBM Maximo Manage supports all mentioned breakdown ... an more!

BM Maximo Manage offers support for various combinations of the structures mentioned above through the location systems feature. This allows stakeholders in the Asset Lifecycle to access different perspectives. For example, a Reliability Engineer can view a functional breakdown, while Planning & Dispatching can focus on a physical (or geographical) breakdown, and Operations can analyze a process decomposition.

Example Process Breakdown

Example Functional Breakdown

Industry Specific Standards

Since way back when, a ton of regional, national, international, and global standards have been laid out to guide folks on setting up a solid asset register using various breakdown techniques. And guess what? On top of all that, there are even more custom "twists" thrown in by customers because, hey, everyone likes to think they're doing something special. Take the Water Management Industry, for instance, where 10 similar water treatment companies could easily have 11 different takes on how they break down their assets.

lets pick one standards to explain in more detail:

1. NEN-EN2767

NEN-EN 2767

The NEN-EN 2767 standard, commonly referred to as EN 2767 (European Standard) or ISO 55000 series, outlines requirements and guidance for the implementation, maintenance, and improvement of an Asset Management System (AMS). It is part of a broader set of standards aimed at ensuring that assets are managed effectively to deliver value to an organization, balancing performance, risks, and costs throughout their lifecycle. This standard is primarily used in the infrastructure, real estate, and utilities sectors. It is particularly prevalent in industries where the maintenance and management of physical assets, such as buildings, infrastructure, and utility networks, are critical to operational success. Here’s a more detailed breakdown:

1. Infrastructure (Transportation and Civil Engineering):

   • Usage: NEN 2767 is widely used in the management of roads, bridges, tunnels, railways, and other transportation infrastructure. It helps organizations in assessing the condition of these assets, planning maintenance activities, and ensuring that the infrastructure remains safe and functional over its lifecycle.

   • Example: A national highway authority might use NEN 2767 to assess the condition of roads and bridges, determining when maintenance or replacement is necessary.

2. Real Estate and Facility Management:

   • Usage: In real estate, NEN 2767 is used for the condition assessment of buildings and other facilities. It supports asset managers in maintaining buildings, optimizing maintenance schedules, and ensuring compliance with safety and regulatory standards.

   • Example: Property management firms use NEN 2767 to systematically evaluate the condition of residential and commercial buildings, aiding in long-term maintenance planning and budgeting.

3. Utilities (Water, Energy, and Telecommunications):

   • Usage: Utility companies use NEN 2767 for managing extensive networks of physical assets such as water pipelines, electrical grids, and telecom infrastructure. The standard helps in ensuring the reliability and efficiency of these essential services.

   • Example: A water utility company might use NEN 2767 to assess the condition of its pipeline network and prioritize maintenance activities to prevent service disruptions.

NEN-EN 2767 supports a sound Asset Breakdown Structure (ABS) by providing a standardized approach to asset condition assessment and management, ensuring that assets are categorized, monitored, and maintained effectively. Here’s how it does this:

1. Standardized Condition Assessment:

   • Systematic Evaluation: NEN 2767 offers a uniform method for assessing the condition of assets, which can be consistently applied across different asset categories. This standardization is crucial for building a reliable ABS, as it ensures that all assets are evaluated using the same criteria.

   • Condition Scores: Assets are assigned condition scores based on their physical state, performance, and remaining useful life. These scores can then be used to categorize assets within the ABS, allowing for easy identification of assets that require maintenance or replacement.

2. Hierarchical Asset Structuring:

   • Categorization by Function and Type: NEN 2767 encourages the breakdown of assets into logical categories and subcategories based on their function, type, and criticality. This hierarchical structuring aligns with the principles of an ABS, making it easier to manage assets at different levels (e.g., systems, subsystems, components).

   • Prioritization: By categorizing assets according to their condition and importance, organizations can prioritize maintenance efforts within their ABS, focusing resources on critical assets that require immediate attention.

3. Lifecycle Management:

   • Alignment with Lifecycle Phases: NEN 2767 helps organizations track assets through their entire lifecycle—from acquisition to disposal. The ABS can be designed to reflect these lifecycle phases, ensuring that each asset is managed appropriately at every stage.

   • Cost and Risk Management: The standard facilitates the integration of cost and risk considerations into the ABS. By linking assets to their condition and performance data, organizations can better predict maintenance costs and manage risks, ensuring that the ABS supports long-term sustainability.

4. Integration with Asset Management Systems:

   • Software Compatibility: NEN 2767 is often integrated into asset management software systems that support ABS, such as IBM Maximo or similar tools. These systems can use the condition assessment data from NEN 2767 to populate the ABS, automate maintenance schedules, and generate reports.

   • Data Consistency: The standard ensures that data across different assets is consistent, which is crucial for maintaining an accurate and reliable ABS. Consistent data allows for better decision-making and more efficient asset management.

NEN-EN2767: a logical decomposition and condition assessment framework

Examples of a NEN-EN2767 breakdown for a road company in Maximo Manage:

NEN2767 Condition Score Example (IBM Maximo Health)

Conclusion

NEN 2767 is predominantly used in industries where the condition and performance of physical assets are critical to operational success, such as infrastructure, real estate, and utilities. The standard supports a sound Asset Breakdown Structure by providing a standardized approach to condition assessment, facilitating hierarchical asset categorization, aligning with lifecycle management, and ensuring data consistency across asset management systems. This enables organizations to effectively manage and optimize their assets, ensuring long-term value and reliability.