Ten Pitfalls to Avoid When Selecting a CMMS/EAM presented by: David Berger Western Management Consultants 1

About WMC and 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

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

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 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

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 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

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: 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

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

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

Flexibility 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

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

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, 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

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 licenses, implementation, training, upgrades, ongoing maintenance and support and hardware. “Web-architected solution” ranked #19 of 21 in PS Survey

Benefits Realization 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

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 3