Enterprise Asset Management 101

Asset Inspections After the Virginia Earthquake

Stuart Smith — Wed, 24 Aug 2011 19:58:00 GMT

We have touted the use of inspection checklists on many occasions as important tool for maintenance operations but also as a tool to prepare and react to natural disasters such as Hurricanes or Earthquakes. Yesterday's earthquake, centered in Virginia, is a great example of why inspection checklists are important to government, businesses and homeowners alike.

Surprisingly and happily, I was pleased to see that the Federal and some State governments sprang into action immediately after the 5.9 magnitude earthquake struck at 1.51 PM SSW of Mineral, Virginia. The earthquake was followed by 4 aftershocks ranging from 2.2 to 4.2 magnitude. The strongest of these was enough to shake indoor items.

Inspections After the Earthquake

The primary course of action for governments and industry is to break out their emergency plans and set forth teams to inspect assets for damage. Some of the notable actions that were taken by governments and industries included:

A quick inspection of national monuments discovered a crack near the top of the Washington Monument as well as damage to the National Cathedral. In the case of the Washington Monument, it has been closed indefinitely.
The New York State Department of Transportation referred NYDOT officials to a report issued June 30,2011, on how to respond to bridge and road damage. The report suggests driving all state highways in the affected areas using pre-defined priority routes followed by detailed bridge inspections.
FEMA reposted their Helpful Hints on How To Spot Earthquake Damage. This particular piece is an excellent starter checklist for all building and facility managers.
All rail traffic was slowed as rail lines were inspected for damage.

The common factor among those who sprung into action was the use of inspection checklists. I don't think there is any doubt that some level of preparedness has been spurred by the recent Japan earthquake disaster. The key point is inspection checklists enable government and business leaders to quickly access asset conditions and set a course of action.

Not All Inspection Checklists are Created Equal

Inspection checklists can be as simple as a printed list of assets to be checked on or a computer generated checklist using a CMMS system. The difference in the two comes down to how fast inspection results can be obtained, organized and analyzed.

The advantage of a CMMS generated checklist is that it can be accessed using handheld devices and transmitted back to asset managers for faster decision making. In addition, all information is then stored electronically ensuring that the records won't be lost.

For business or governments wanting to restore full operation as soon as possible, a CMMS system is the best tool to have for emergency preparedness. Because a CMMS will track inspection results from one inspection to the next, it allows asset managers to note changes that might otherwise have been missed.

Earthquakes and Facility Management

Can an Earthquake happen to you? The short answer is yes. The west coast from California to Alaska has long been a hotspot for earthquakes. However, as the map below shows, 39 of 50 States are moderate to high risk areas for seismic activity.

Prepare your organization for emergencies by creating inspection checklist today using a CMMS.

Share with us how your organization is prepared to handle inspections. If you liked this article, you may also enjoy reading:

Morton's Has Nothing On Us

Chris Kluis — Wed, 24 Aug 2011 12:52:00 GMT

Morton's Steakhouse apparently has excellent customer service. Peter Shankman (whom you may or may not know as the guy behind HARO) recently traveled to Clearwater for a business trip.

He tweeted he would love a steak at the airport. Morton's actually brought him a steak at the airport. It's really a good article to read on how to use social media for customer service.

Here's the thing Morton's probably has great customer service all the time... but not everyone gets a steak brought directly to them when they want it. Guess what, all of our customers get the best Customer Service. All of them. Why do I think Mintek has the best Customer Service of any cmms provider... scratch that... any software provider?

The reason we have the best customer service is our fanatical attention to tech support. Why does tech support matter so much? If you have a problem we want to help and here's how:

We are real live people and we answer the phones.
We try to answer the phones within 4 rings when possible.
Ever had a hard time explaining what your problem was to someone in tech support? Not a problem for us, we'll remote in and fix your problem immediately (on our old desktop/server software). Yes, that's right all of our staff can fix the majority of the problems immediately without 3 hours of explanation of the problem. We almost always fix problems on the first call.

Time is money. Don't let an under supported product cost you money. Make sure you know the terms of your support agreement before you enter into a long-term relationship with a SaaS provider.

Do you have any tech support nightmares you recall?

That Loud Thumping Sound Cannot Be Good

Stuart Smith — Mon, 22 Aug 2011 17:20:00 GMT

I was at my son's school for open house the other night on a very hot and humid day here in Florida. After getting out of the car at the far end of the parking lot, I immediately heard a loud thumping sound that sounded like a an out-of-balance washing machine except it was 1,000 times louder.

Approaching the walkway to the lunch hall, I noticed that the sound was originating from a monstrous cooling tower for a chiller unit at the back of the school. I may not be an engineer but I know when a piece of equipment is not on the receiving end of a quality school maintenance management program.

School Budget Crisis is Not an Excuse

Most of us are aware that schools around the nation are facing budget shortfalls with every department expected to take a hit. However, not all cutbacks are created equal. This is especially true when maintenance budget cutbacks result in the accelerated failure of assets that may costs several hundreds of thousands of dollars to replace.

"School districts perpetually struggle to budget appropriately for operations, maintenance, and capital projects. High-dollar capital projects are the first to go when budgets are cut, and trimming maintenance expenditures is more palatable to school boards than cutting instructional staff."
Source: Energy Star

The key to change is convincing school board members and administrators to make better long term asset and maintenance management decisions. In the modern world, there is no excuse for not making use of technology solutions such as an EAM CMMS system to properly maintain school assets.

The Cost of Major School Asset Failures

Getting back to the loud thumping noise, whatever is making the sound will eventually break. Before it breaks, the school will have higher energy costs as poorly maintained equipment needs more power to operate than properly maintained equipment.

"The result is an accumulation of deferred maintenance, which leads to higher energy costs and more equipment malfunctions. Lack of preventive maintenance reduces the operational life of building equipment, hastening the need to invest in costly capital retrofits....Increasingly, facility condition is being recognized as an important factor for student learning. Lawsuits regarding inadequate funding for education in dozens of states have shifted the focus from spending per school or per student to the condition of school buildings "
Source: Energy Star

When the unit does fail, it will either result in an expensive temporary fix such as a temporary unit plus labor or require the asset to be replaced. The cost of replacing the unit can range from $100k-$500K (noting that equipment cost are only a fraction of the total cost). Even if the unit is rebuilt the cost is still significant.

Other costs of the units failure include, liability from students suffering from the heat and humidity and more than a few angry parents. It will be parents that any elected school board should fear. Upset parents will start asking the logical question of how many teachers, clubs or activities could have been funded with that money? More importantly, they can vote out short sighted administrators.

The EAM CMMS Maintenance Solution

School asset and maintenance management should be planned as well as approached with common sense. Breakdown management is not an answer, it is just an obvious sign of not thinking through the consequences of mismanagement. An EAM CMMS can help school systems by giving them the tools to perform proactive asset and maintenance management.

By initiating a proactive maintenance management plan, school systems will see substantial expense reductions as the result of:

7 Reasons for a School EAM CMMS

Assets lasting longer through preventive maintenance.
Automated work management including work orders, work requests, inspections and rounds.
A reduction in energy costs as equipment performance is optimized and door/windows are better maintained.
A reduction in capital expenditures as equipment breaks down less often.
A reduction in labor costs as maintenance staff is able to do more work with the same amount of resources.
Long term asset management that results in standard operating procedures across schools as well as better vendor and contract management.
Fewer liability claims that result from accidents caused by asset neglect.

An EAM CMMS software solution is just a tool. The first step is for School Boards to recognize the need for better asset and maintenance management both on a short-term and long-term basis.

Tell us the condition of your school's assets. If you liked this article you may also want to read:

7 Reasons Mines Need an EAM CMMS System

Stuart Smith — Tue, 16 Aug 2011 12:48:00 GMT

Mining is Asset Intensive

Mining is one of the most capital intensive industries in the world today. Much of the costs of mining is an investment in heavy equipment which needs to be kept in optimal working condition to maximize productivity as well as ensure mining safety.

Due to the enormous costs of starting and closing a mine, most mining is dominated by large, multi-national organizations. Many of these mining organizations also operate multiple mines or exploration projects with each operation having millions of dollars in assets that require detailed asset management.

Why Use an EAM CMMS System for Mining

Managing mining assets from initial planning through mine closing can be handled using an EAM CMMS system because of the organization, inspection, maintenance and information management tools that an EAM CMMS provides. Seven of the more notable reasons to use an EAM CMMS system are:

7 Reasons Mines need an EAM CMMS

Lifecycle asset management: All assets have a useful lifecycle which starts at the planning phase and continues through the assets retirement or replacement. Each stage of the asset's lifecycle will have different maintenance needs as well as costs. An EAM CMMS tracks the condition and work history of each asset from their beginning to ensure asset managers are always aware of the condition of assets.
Inspecting heavy equipment: Mining operations contain some of the largest and most expensive assets in industry. Inspections of heavy equipment will help identify potential problems that may cause the asset to fail. Asset failure will result in production downtime or may even result in a terrible disaster.
Inspecting tailing impoundments: Most mining operations result in a substantial amount of waste product once the mined material has been removed. Often this waste is stored in tailing ponds (impoundments). Regular inspections using EAM CMMS tools can prevent these impoundments from leaking into the ecosystem or failing.
"Ore mills generate large amounts of waste, called tailings. For example, 99 tons of waste are generated per ton of copper, with even higher ratios in gold mining. These tailings can be toxic. Tailings, which are usually produced as a slurry, are most commonly dumped into ponds made from naturally existing valleys. These ponds are secured by impoundments (dams or embankment dams). In 2000 it was estimated that 3,500 tailings impoundments existed, and that every year, 2 to 5 major failures and 35 minor failures occurred."
Source: Wikipedia
Inspections of safety equipment: Mining accidents like airline accidents seem to draw a lot of media attention. On top of the tragic loss of life, each accident increases public concern and government oversight. Inspecting safety equipment from ventilation shafts, fans, gas detection devices, emergency gear, elevators and so on is not an option, it is a requirement. An EAM CMMS system can make sure all assets are scheduled for regular inspections as well as scheduling preventive maintenance and repairs.
Mine closing: Most developed nations require mine closing plans to be developed before production can start. One of the purposes of this is to ensure that mines are closed up properly but also to make sure that assets left behind do not corrupt the ecosystem (ex: tailing ponds). This can be achieved using an inspection checklist for assets that are to be examined and then scheduled for work after a mine closes.
Standard operating procedures: Larger mining organizations may operate several, even dozens, of mining operations at one time. An EAM CMMS software solution enables asset and maintenance managers to review the work history of common equipment and determine best practices for their care. By establishing standard operating procedures across operations, maintenance will be more cost effective, efficient and have better overall controls.
Vendor and document management: One of the fastest ways to lose productivity is to spend precious time in search of vendor contracts or documentation for an asset. EAM CMMS allow vendor contracts and documents such as blueprints, photos, schematics, diagrams etc. to be scanned , uploaded and attached to an asset. Using an EAM document system for this will also enable vendor consolidation as contracts can be viewed by corporate contract administrators for duplication of effort or pricing.

The preceding list represents just the tip of the iceberg for helping mining organizations get a handle on asset and maintenance management. Other benefits include lower maintenance labor and energy costs, reduced theft opportunity and more accurate capital budget projections.

Tell us where your mining operation needs the most help. If you liked this article you may also enjoy reading:

What Does Mobile TCO Really Mean

Stuart Smith — Wed, 10 Aug 2011 20:49:00 GMT

Sometime ago, I wrote an article about making sure the selection of EAM mobility options took into consideration durability, reliability, ease of use and the technology platform. Now, a recent study by the VDC Research group provides greater detail why understanding mobile device TCO is critical to maintenance operations as well as achieving the ROI for your investment in an EAM system.

Defining TCO for Mobile Handheld Device

Most enterprise asset managers are aware that consumer grade mobile devices such as smart phones, PDAs etc. cost less than commercial/enterprise grade mobile devices. However, the purchase price is not the only factor that should be considered because the Total Cost of Ownership (TCO) averages 42.6% more for consumer grade mobile devices.

To understand why the TCO is so much higher for consumer grade mobile devices you first need to understand the components of TCO. TCO for mobile devices is composed of hard costs and soft costs. Hard costs generally include the purchase price and cost of maintenance contracts. Soft costs include support time, lost productivity and device maintenance.

"Replacement costs only tell a small part of the TCO story because the purchase price of a device accounts for less than 30 percent of its total cost of ownership. Lost productivity when devices fail costs businesses more than the price to repair or replace them."
Source: Intermec

The VDC Survey reports that when hard and soft costs are added together, consumer grade devices have a TCO of $3,895 versus commercial rugged devices which average $ 2,730. The reason for the variance can be attributed to the failure rate of non-rugged consumer grade devices which fail on average 3.5 as many times as their rugged counterparts.

Ruggedness Makes a Financial Difference

Ruggedness/durability represents the ability of mobile devices to withstand shock, water, dust and use damage. True rugged and durability ratings can be found on commercial devices that describe their Ingress Protection (IP) rating. IP ratings are used to define certain levels of ruggedness and durability. For example, no warehouse or distribution center should be using a mobile device rated less than IP54. In another example, Mintek just set up a client in a Port that required a IP rating of 67 for their handheld devices.

Every time a device fails, is taken out of service to receive a software update or replaced is lost productivity. According to the survey, on average mobile workers lose 75 minutes each time there is an issue with their mobile device. How many inspections or preventive maintenance tasks can be accomplished in this time?

"Device failure remains a critical issue for mobile computers with annual failure rates often exceeding 30 percent....Lost productivity is responsible for nearly half of the total cost of ownership for mobile devices, and a variety of other factors account for the other half."
Source: Intermec

The Software and Support Difference

The second highest soft cost for mobile handheld devices is the costs of software and support. As described in our prior post, consumer grade mobile devices don't last long if used in commercial applications. In addition, smart phones and PDAs etc. are often discontinued which can leave organizations trying to manage, update and support various brands and operating systems.

Other TCO factors

TCO factors may vary by industry such as manufacturing, cable or retail as each industry has different applications. However, in general other TCO factors include but are not limited to:

Lost revenue: Dissatisfied customers waiting for inventory, price and services checks may go away should the mobile devices fail.
Ease of use: Commercial mobile devices are usually optimized for screen input, bar code scanning and navigating enterprise applications.
Power management: Cell phone batteries last only a fraction as long as commercial grade handheld devices.
IT support: Commercial grade handheld devices are designed interface with EAM applications, requiring less IT support, can be accessed remotely and can be set to prevent unauthorized uses (data and non-business use).

In summary, failure to pay attention to TCO for mobile handheld devices may cost an organization 2-3 times more per device than they planned. Just like the concept of preventive maintenance, you can pay a little more now or a lot more later. Most importantly, the use of poorly constructed mobile devices work against the labor cost savings that an EAM system will bring.

Tell us your experience with different mobile handheld devices. If you liked this article you may also want to read:

The New Era of Cable Asset Management

Stuart Smith — Wed, 03 Aug 2011 11:58:00 GMT

For the last several decades the focus of cable operations has centered around the movement and tracking of customer premise equipment (CPE) in and out of warehouses. As a result of their enormous growth, Cable Multi-System Operators (MSO)s have significant asset management challenges.

10 Cable Asset Management Challenges

Some of the more notable Cable MSO assets include multiple warehouses, fleet vehicles, communication towers, signal amplifiers, headend equipment, power supplies, CPE and office facilities. In addition, many assets are spread throughout a large geographic region leaving cable asset management challenges such as:

Accurate Asset Tracking: Cable asset managers must be able to know the location and condition of assets across field facilities at any given point in time.
Establishing Standard Operating Procedures: Establishing standard operating procedures for maintenance management across multiple facilities. This will help reduce time spent recreating the wheel as well as easing the transfer of acquired knowledge.
Having a proactive maintenance plan: Achieving a sufficient level of proactive maintenance work so that staff is not constantly fighting fires.
Eliminating Manual Work Process: Finding a way to reduce or eliminate manual work request and work order processes enables quicker response times, provides the tools for tracking work history and puts maintenance staff in the field for a greater amount of time.
Improving Document Handling: Keeping track of vendor contracts, machine schematics, blueprints and any other asset documentation is very time consuming especially if documents are lost or cannot be retrieved quickly.
Better Capital Budgeting: Rolling up the maintenance history of multiple facilities into manageable reports for better capital analysis.
Controlling MRO Costs: Keeping labor, emergency repair and energy expenses under control as assets age.
Improved Maintenance Planning: All maintenance work should be planned in order to make sure the proper resources are used in the most cost effective manner.
Making better Repair, Refurbish or Replacement Decisions: Cash flow is critical for Cable MSOs, these types of decisions require accurate asset knowledge.
Managing Asset Lifecycle TCO: Not all asset management systems are created equal. Lower initial costs must be weighed against ease of use, scalability, durability, customized functionality and long term benefits.

These are only ten challenges for cable asset managers. There are many more, however, these ten represent the vast majority of cost/benefit decisions that must be made.

Breaking Traditional Maintenance with an EAM System

As the legendary Bob Dylan once said, "Times They Are A-Changin" and this is very true for the Cable Industry.

The age of clipboards, 2-3 part forms, tracking assets with spreadsheets and endless rooms of file cabinets has passed. The EAM system tools available in the market today have enabled cable MSOs to take control of asset and maintenance management from the planning process through an assets eventual retirement/replacement.

A quality Enterprise Asset Management EAM system addresses each of ten cable asset management challenges listed above. This is accomplished by:

Creating a computerized database of all assets including but not limited to: location, description, date purchased, vendor, cost, serial number, model and so on.
Recording all work management including work requests, work orders, inspections, repairs as well as their results. This enables maintenance managers to review what works best in order to develop SOPs. The knowledge gained through the EAM can also be used for training.
Enabling maintenance managers to schedule proactive maintenance such as inspections and preventive maintenance activities.
Automating work requests and work orders by using a computer and mobile handheld devices. Paper flow is sharply reduced as work can be submitted and recorded on handheld devices and then transmitted back to maintenance management.
EAM software allows virtually any document to be scanned and attached (linked) to an asset. Documents are no longer lost, document retrieval is a mouse click away and document storage costs drop like a rock.
The EAM system records the work history of all assets. This gives asset managers the ability to review an assets maintenance history and better project when it may need capital replacement.
Through automation and proactive scheduling, reactive (unplanned) maintenance is reduced and proactive maintenance increases. This lowers labor and repair costs as there are fewer unplanned repairs and overtime is reduced. In addition, better maintenance assets require less energy to operate lowering energy costs.
An EAM software solution enables maintenance management to accomplish more with the same amount of resources. Maintenance planners now have the resources and tools to plan and schedule system wide maintenance activities.
CPE theft and inventory control are the not the only variables affecting cash flow. When work management results are recorded properly the information that is gathered by the EAM system will enable asset and maintenance managers to work together to determine if an asset should continue to be repaired, refurbished or retired.
The value of an EAM is directly related to the bottom line impact that it can bring to a Cable MSO. Cost of EAM systems vary greatly as does quality and support. Best TCO results are normally achieved using a web-based EAM system.

Share with us how your cable operations juggle warehouse management systems and asset management. Do they work together and compliment each other? If you liked this article you may also enjoy reading:

How to Avoid Buying a Worthless CMMS Solution

Stuart Smith — Fri, 29 Jul 2011 10:52:00 GMT

With so many choices available for a CMMS solution, how can you tell one product is better than the next? Do you distinguish based on price, the smoothness of the Sales pitch, a magazine rating or do you rely on a consultant with ties to 1-2 two specific CMMS vendors?

The value of a CMMS is directly proportional to the problems it solves. Not all CMMSS solutions are created equal so let us take a look at each of these and see if there isn't a better way to choose a CMMS.

Price Based CMMS Decisions

Purchasing a CMMS system based primarily on price (high or low) is ultimately going to cost you more. This is because either the off-the-shelf CMMS is inflexible and won't meet your needs or the premier software package comes with costly features that you may never need. In both cases making changes always adds to the cost quickly.

The Smooth CMMS Sales Pitch

I have run across some exceptional salespeople over time that could sell you anything. Great salespeople are smooth and polished in their presentations (as they should be). More importantly, they are experts at establishing a relationship. One result of this is that the more expensive the CMMSthe more polished the sales pitch.

However, no matter what the price of the CMMS, salespeople are paid to tell you what you want to hear, stroke your ego and convince you that their product is the best thing since sliced bread. The key is to not be swayed away from your organizations core needs.

The CMMS Magazine (Website) Rating

The Internet is the first stop for most people these days when it comes to comparing products and doing their due diligence on CMMS systems. One way for internet sites to attract visitors is to offer reviews of products and companies which they then rank. Unfortunately, the Internet magazines often only rate software products of companies that are willing to pay them in order to be listed.

Consultant Recommendations

The use of consultant recommendations are one of my favorites subjects. There are some very good consultants in the market today. The key in using a consultant is making sure they have exceptional industry knowledge in your industry as well as a solid base of various CMMS vendors.

On the other hand, you have to make sure that they have your best interest in mind and have recommended more than one vendor in their past. Without good due diligence on your part, your organization could end up in a situation like the Marion County asset management fiasco.

Making the Right CMMS Decision

In choosing a CMMS solution for your organization, asset and maintenance managers need to find a way to look past the obvious sales pitches, glitz and bargain deals. The best way to do this is to make sure the CMMS being sought is one that addresses at least 80% of the pain points of maintenance operations.

10 Qualities of Good CMMS Solutions

Identifying 80% of your maintenance pain points takes a fair amount of maintenance planning. Once you have identified where your pain is you may want to find a solution with CMMS features including:

The automation of manual work processes such as work request or work orders.
Records the work history of all assets for better maintenance planning as well as establishing standard operating procedures for work management.
Being scalable and flexible enough to be customized to meet your organization's needs.
The capability to help your organization transition from reactive to proactive maintenance.
Computerized scheduling tools for preventive maintenance and inspections.
Integrated mobile handheld technology to increase maintenance efficiency and effectiveness.
Management reports for maintenance work history analysis as well as capital budgeting.
Document management for contracts, vendors, blueprints, photos etc.
A web-based CMMS application to reduce the burden of in-house IT support.
Experienced and friendly technical support.

Last but not least, finding and choosing the right CMMS is relationship based. Your CMMS vendor's success should be dependent on your success. There is no advantage in being a small fish in a big pond. Will you be able to call the CEO of your vendor if a big issue arises?

The CMMS that is chosen should add value to your organization. If you have chosen correctly, your organization should be able to realize substantial labor, energy and capital expense savings. Without this value your CMMS selection will prove to be worthless.

How do you start? The best way to find this out is to talk to CMMS vendors or consultants with experience in your industry and that have a proven track record.

Tell us your experience with CMMS vendors. If you enjoyed reading this post you may also like:

How Maintenance Can Beat the Great Heat Wave of 2011

Stuart Smith — Tue, 26 Jul 2011 13:04:00 GMT

Last week much of the country suffered through extended uncharacteristically high temperatures that exceeded 100 degrees. The heat wave has been attributed to more than 30 deaths as well numerous power outages from Detroit to New York.

The prolonged heat and humidity has resulted in the nation's two biggest power grids, which serve over 100 million consumers, scrambling to provide for demand 10% higher than normal. In an effort to curb power outages, some electric utility companies have reduced the voltage available to customers or are busy performing reactive maintenance repairs on failed assets.

The Secret to Limiting Power Consumption

One would have to imagine that HVAC repair companies did well this past week as poorly maintained HVAC units failed due to overwork. It is well known that simple preventive maintenance can help avoid many HVAC problems. What is less well known is why poor maintenance affects HVAC units.

Why HVAC Units Eat Power

The answer is simple and straightforward. HVAC units under the greatest stress are those units having dirty filters, corroded parts, or otherwise inhibited heat exchange components (includes leaks, bad wiring). When air flow and/or heat exchange is inhibited, the HVAC unit requires more energy to produce the same amount of cooled air as it did when the unit was brand new.

When the heat wave arrives, this translates into the HVAC unit running for longer periods of time on top of the extra time it might normally run in order to cool a building.

The end result is additional wear and tear and if the HVAC unit's parts are also corroded, the situation could easily result in asset failure. Most importantly, the extra running time adds to the power demand of electric utilities.

CMMS and Fighting the Power Consumption Monster

The key to reducing energy consumption during an extended heat wave is getting the word out to facility, plant, government and residential customers that basic preventive maintenance and inspections can lower energy bills as well as help avoid emergency repairs and/or HVAC unit replacements costs.

For facility, plant and governments, scheduling inspections and preventive maintenance on HVAC units can be a daunting task if maintenance operations are not organized. One solution is to implement a CMMS system or make better use of an existing CMMS software solution.

A system will help organize all assets so that maintenance can be scheduled, performed and recorded in the most efficient and cost effective way. This is accomplished by:

Reducing the amount of time spent filling out paperwork to identify, schedule and report on maintenance issues through work management automation.
Organizing assets detail so that asset and maintenance managers always know where their assets are and the condition they are in.
Increasing mobility of maintenance through the use of handheld devices reducing office time as well as increasing response time.
Proactively scheduling preventive maintenance and inspections.

Saving Power, Labor and Replacement Dollars

Implementing a CMMS software solution does more than just lower energy costs. A properly implemented CMMS will give facility and maintenance managers the tools they need to:

Reduce labor costs by reducing the number of overtime hours to handle emergency repairs such as HVAC issues.
Reducing labor costs by allowing more work to be done with the same amount of resources which increases maintenance scheduling flexibility.
Reduce the number of emergency repairs and capital asset replacements through more proactive maintenance planning.
Review the work history of any asset and make better repair, refurbish or replacement decisions in preparation for the capital budget.
Lengthen the useful lifecycle of assets through proper maintenance and therefore not replacing them as often.

Utility Energy Savings

Industrial and government facilities are not the only organizations that can benefit from a CMMS. The electric utility company can also apply the same preventive maintenance techniques to make sure their energy conversion assets are operating at optimal efficiency.

Good maintenance practices of utility assets does more than just lower energy conversion costs. Better asset and maintenance management will also ensure that utilities have the capacity to handle the extra power demand during a monstrous heat wave.

When you consider that proactive maintenance will lower overall utility operating costs, CMMS systems become a must for utilities and industry.

Tell us how your organization coped with the heat wave. If you enjoyed reading this article you may also want to read:

Hotel Maintenance Planning Tips

Stuart Smith — Wed, 20 Jul 2011 15:26:00 GMT

Is your hotel faced with an ever increasing amount of backlog because it seems there is just not enough staff to go around? Does it seem like there is always something new that comes up and changes the schedule? This is usually the result of weak hotel maintenance planning.

The Impact of Maintenance Planning

Having great maintenance management tools such as an EAM CMMS system can certainly help hotels contain operational costs as well as manage the useful lifecycle of assets. However, even the use of the best EAM CMMS software in the world won't do a hotel much good if the tools they provide for maintenance planning are not being used properly.

Maintenance planning is much more than setting out a schedule of maintenance items and hoping that staff can accomplish as many as possible. Without good maintenance planning, hotel maintenance staff will seem disorganized or always seem to be fighting one fire after another. More importantly, operating costs start to increase due to the amount of unplanned/emergency repairs as well as accelerated capital replacements.

Three Components of Hotel Maintenance Planning

To have effective hotel maintenance planning, management goals must be balanced with the barriers to their accomplishment and then a course(s) of actions is determined that will provide the best care for assets. Looking at these individually:

Hotel Maintenance Management Goals

Management goals range from corporate margin expectations to attaining specified levels of efficiency. Some examples include:

Meeting capital budget expectations.
Achieving 100% on time completion of maintenance work orders.
Reduce backlog to less than 10% of outstanding work requests.
Achieving specified key performance indicators (KPI)s.
Reduce document storage and handling costs.
Establish standard operating procedures.
Eliminate overtime.
Have 80% of all work be proactive (inspections, preventive maintenance and repairs).
Reduce energy consumption by 15%.
Reduce customer complaints (maintenance related) by 30%.

Whatever the goals may be, it is important they be defined and be measurable. Once this is accomplished, hotel maintenance managers should then identify the barriers that may stop them from accomplishing their objectives.

Maintenance Planning Barriers

Barriers to better maintenance comes in many forms but can usually be categorized into 3 major groups and all touch on the 7 Deadly Sins of Asset Management:

People: This covers leadership and support issues at all levels of management, incorrect skills sets of maintenance staff (including maintenance planning) and a lack of training. Hotels must have the right mix of engineers, management and maintenance professionals.
Processes: This includes the use of manual processes, a reactive maintenance environment and a general lack of organization. Maintenance planning will not be effective if there is simply too much time being wasted on non productive maintenance tasks.
Tools: Barriers to better maintenance planning include the lack of work management automation, spreadsheet based maintenance scheduling, no computerized database of work history as well as poor vendor and document management. In a nutshell, not enough technology.

The key to all hotel maintenance planning is the ability to perform work effectively and efficiently while at the same time tracking the work history of all assets. The work history of assets is critical to maintenance planning (this is described below). Once the goals have been determined and the barriers overcome, the next step is to set a course of action in place.

Hotel Maintenance Planning Action Planning

Because each hotel or hotel chain is different there will always be more than one course of action to take. However, most hotel maintenance planning can follow the same general principles for setting up an action plan which are:

Follow the 80/20 rule for hotel maintenance.This means that 80 percent of hotel maintenance should be proactive and only 20 percent reactive.
Make better use of or implement an EAM CMMS. Hotel EAM CMMS systems provide the automation, scheduling, work history tracking and document tools needed for better asset and maintenance management.
Improve training to increase the skill sets of maintenance staff on both equipment and the use of EAM CMMS software. The cost of training is minimal compared to the replacement of a major chiller.
Measure all results against the management goals during the fiscal year. Hotel EAM CMMS software can provide the needed reports.
Review the work history of each asset including how many times it has had work done, by whom (or vendor), the results, costs, and current condition. This information is then used to make more accurate maintenance scheduling and repair or replace decisions. All information can be obtained from the EAM CMMS.
Use the knowledge gained from all prior steps to redefine roles, reset expectations and goals.

There is no easy button for more effective maintenance planning. The maintenance planner role is similar to that of a corporate staff person. In order to increase asset management visibility they must assume the authority to make a difference. Good execution of maintenance planning can save a hotel hundreds of thousands to millions of dollars per year.

Share with us how maintenance planning is done at your hotel. If you liked this article you may also enjoy reading:

Hitting the Reset Button on Maintenance Management

Stuart Smith — Tue, 12 Jul 2011 12:31:00 GMT

Maintenance management has been operating in closed silos for too long. The day has come for operations that run maintenance as an expense line item to wake up and realize that maintenance management is the core function of industry asset management.

Senior management that fails to recognize the evolution of the role of maintenance management will ultimately see their organization bleed until it goes out of business altogether. The good news is that it is not too late to hit the reset button but to do this; senior, operations and maintenance managers need to know what has changed and why.

The Old, Do It My Way or Hit the Highway Maintenance Management

The classic case of silo maintenance management is where maintenance is purely reactionary and based upon the principle that, If it ain't broke, don't fix it philosophy. The term silo refers to the fact that maintenance is viewed as a necessary evil, allocated a budget and forgotten about unless something goes wrong.

Maintenance in this type of organization doesn't have any real responsibility other than to keep assets up and running with maybe a touch of preventive maintenance such as changing HVAC filters or applying lubrication. Maintenance reports to a supervisor who then reports to some mid-level facilities or plant manager. Staff meetings consist of what is to be done for the day.

Work is requested and performed using a primarily paper based system and then recorded on rudimentary spreadsheets which may or may not be on a PC covered with coffee stains and grime. Paper and other documents are eventually filed in a storage room full of file cabinets. Does this sound like your organization?

We could debate the Pros and Cons of this type of maintenance management but what would be the point? The simple fact is that in today's competitive economy there is no place for reactive maintenance organizations. They are obsolete!

It Is Not Too Late to Hit the Reset Button for Maintenance Management

The most successful businesses in the world have had at least one major reorganization or shake up in order to stay competitive in the marketplace. In most cases, someone is promoted or brought in and handed the opportunity to show their abilities.

Major change can be for any number of reasons including a change in leadership, a need for creativity, product declines or profitability issues. It is the profitability issues that are the major focus over the last few years as many global and domestic economies have taken a beating.

For asset intensive industries, maintenance, repair and operations (MRO) are the most critical area where there is a need for better controls. MRO costs which include energy, labor and the capitalized purchase of assets can easily exceed 60% of expenses.

Stopping the Bleeding

The logical question is how can you stop the bleeding ($ going out the door) is there is no one in senior management with hands on maintenance management experience? Without experience in this field, the issues and ideas of asset management are left in the hands of bean counters that still see maintenance as an expense line item.

The answer is to start increasing asset and maintenance management visibility. This can be accomplished by understanding that the cost of asset management is directly related to the type of maintenance management put in place.

Changing the direction of your maintenance management team means a commitment to:

Maintenance being more proactive than reactive. This includes better preventive maintenance, asset inspections as well as using historical work management records combined with technology to project needs.
That all maintenance will be planned just like all production.
Increasing visibility by understanding how maintenance management impacts the performance of other business units.
Including maintenance management in business planning to understand how decisions in other functional areas impact the ability of maintenance management to be proactive.

How does this stop the bleeding? Better asset and maintenance management will:

Lower labor costs through the automation of manual processes, scheduling work, fewer emergency repairs and less overtime. Maintenance management can simply do more with the same amount of resources.
Lowers energy costs by making sure assets are in optimal working condition. Poorly maintained assets will draw more power to accomplish the same level of output.
Decrease document storage and handling costs as paper flow is reduced and important documents are stored on computers reducing the time spent retrieving, locating or copying files, photos, blueprints etc.
Extend the useful lifecycle of assets. Fewer breakdowns and better maintenance care equals assets that lasts longer. The longer assets can be productive the less capital funding is needed to replace or perform major repairs

The New Maintenance Manager

How does an organization go from fighting one fire after the next to a proactive maintenance operation? The first step is to rewrite the job description/expectations of the maintenance manager.

The new age maintenance manager has proven planning skills, access to technology tools, knows how to use numbers to justify decisions, recommendations and change. In addition, they have the social skills needed to convince others (up and down the corporate food chain) to be part of the change. In short, they are more tactical than technical but know how to get the job done at the lowest cost.

The Tools of the New Age Maintenance Manager

Technology is an important part of new age maintenance management. Basic maintenance management starts with the use of computerized maintenance management software (CMMS) but depending on the needs of the organization this can be expanded to include:

Predictive technology such as Infrared thermography, vibration analysis and ultrasound testing. A good CMMS is able to accommodate all of these technologies.
EAM Systems: Has a core CMMS base but great for asset and maintenance management from the planning through retirement. Provides tools to capture and analyze historical work management data for better capital analysis.
ERP , CBM, RCM, and other maintenance methodology software/tools. The point being, there is a tool available for almost any need.
IWMS which combines real estate planning, space/occupancy/planning, EAM, project management and sustainability to form a more comprehensive management tool for executives.

Lastly, one other important tool for the new age maintenance department is mobile handheld devices. The use of mobile devices not only decrease paperwork but enables maintenance staff to submit work request, receive work orders, inspections checklists but also transmit results back to management for faster analysis and decisions.

Is it time your organization hit the Maintenance Management Reset Button?

If you liked this article you may also enjoy reading:

Need Help in Calculating a CMMS System ROI?

Stuart Smith — Tue, 05 Jul 2011 14:12:00 GMT

When considering the purchase of enterprise level physical asset and maintenance management software the driving factor should be determining what type of return you will receive for your investment (ROI).This article will briefly discuss the more important ROI elements as well as how to use a ROI calculator to estimate the cash flow impact of a CMMS system.

Maintenance, Energy and Documents ROI

The ROI that is calculated should be based upon a combination of savings generated from each crucial cash drain area such as maintenance, energy or documents management. Each of these areas can be significantly impacted by a properly implemented CMMS system.

Maintenance

Maintenance is one of the core functions of every asset intensive industry ranging from amusement parks to wastewater utilities but also includes assets managed by Federal, State and Local governments. CMMS systems are an important tool for changing reactive maintenance programs into efficient proactive work management operations.

"As a general rule, for every dollar spent on preventive maintenance, you will save at least five dollars in subsequent expenses."
Source: Kansas State University

Good work management practices include the planning and scheduling of preventive maintenance, inspections, repairs and the flexibility to handle unscheduled maintenance as it arises. These maintenance practices can bring in between 12 and 18% in cost reductions for organizations relying on reactive maintenance.

The ROI math is (Annual maintenance costs) x (% savings)= Maintenance savings

Further expense reductions using a CMMS system can be realized by increasing the mobility of maintenance staff. Increasing mobility is employing the use of mobile handheld devices that reduce the amount of time filling out paperwork for work management tasks.

"Hospitality IT decision makers have made it clear that mobility is no longer an option but a necessity to survive in an increasingly competitive market... Motorola's hospitality barometer indicates that the mobilization of key applications enables organizations to save or recover a daily average of 44 minutes per employee"
Source: Frank Riso, Motorola

The ROI math is (# employees) x (hourly rate) x (# of workdays per year) x (minutes saved/60)= Time saved by mobile software.

Energy

Energy use in commercial buildings often accounts for more than 25% of operating costs. In some industries, such as Hotels, it is not uncommon for a moderate size hotel to spend $1 million annually on utilities (gas, water and electric).

"On average, America’s 47,000 hotels spend $2,196 per available room each year on energy. This represents about 6 percent of all operating costs. Through a strategic approach to energy efficiency, a 10 percent reduction in energy consumption would have the same financial effect as increasing the average daily room rate (ADR) by $0.62 in limited-service hotels and by $1.35 in full-service hotels."
Source: EnergyStar

Although each type of facility varies, HVAC is clearly one of the major opportunities where substantial energy savings can be found. Regularly scheduled cleaning or changing of filters, corrosion inspections and other preventive maintenance techniques allow HVAC equipment to operate at maximum efficiency using between 15-20% less energy.

The ROI math for a hotel is (# of rooms x energy cost per room) x (the amount of energy reduction) = HVAC energy savings

Document Storage and Handling

The costs of document management is one of the most overlooked expenses for organizations. Much of an organizations documents are a result of asset purchases and include items such as contacts, warranties, vendor information, blueprints and schematics.

"Companies spend $20 in labor to file a document, $120 in labor to find a misfiled document, and $220 in labor to reproduce a lost document."
Source: Coopers & Lybrand

Document handling costs may include storage, copying, search and retrieval as well as distribution. For most organizations determining the amount of time spent on each of these activities is an administrative nightmare. Fortunately, there has been a lot of research already done which indicate that costs associated with document handling can be broken down as follows:

Services, supplies and Space - 11%
Space and equipment - 19%
Labor 70% -

An CMMS document management tool can reduce the costs associated with asset management by allowing any document to be scanned and attached to an asset. Documents can then be retrieved or sent with a work order at the push of a button.

"U.S. managers spend an average of 4 weeks a year searching for or waiting on misfiled, mislabelled, untracked, or lost papers"
Source: AIIM, Forrester, Star Securities, US Department of Labor

The ROI math for document storage and handling is (cost of lost documents + the costs of misfiled documents)

A More Detailed Look at ROI

The ROI calculations shown above are simple views and do not include many of the intangible costs associated with a true investment decision. However, when the three areas of maintenance, energy and documents are combined they do provide a good estimate of the savings potential of implementing a CMMS system.

For more information on each of the three areas we have prepared a presentation for you that looks a little deeper into maintenance, energy and documents savings potential with an CMMS.

EAM CMMS ROI

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EAM Systems Can Help Prevent Your Brand From Dying

Stuart Smith — Tue, 28 Jun 2011 12:30:00 GMT

Every year, Wall Street analysts take a look at some global icons and place a few on a list of companies or brands expected to go out of business in the near future. More often than not, a low expectation of survival is a result of poor management that has led to a failure to react to a changing competitive environment.

Some examples of companies and brands that have fallen by the wayside include, Pontiac, Life Magazine, Blockbuster, House and Garden. Other brands and industries in dire shape include but are not limited to; soap operas, record stores, photo kiosks, Sears, Kellogg's Corn Pops, MySpace and print publishing (newspapers, magazines etc.).

In some industries such as textiles and manufacturing, sharp declines have occurred over the years as cheaper foreign labor has made domestic operating margins more difficult to achieve. However, for most industries including record stores and newspapers, it wasn't technologic change that spelled their doom, it is their inability to adapt and change that is sinking the ship.

Defining a Changing Competitive Environment

What is a changing competitive environment? A changing competitive environment describes the business dynamics every organization or part of an organization (such as a product line, business unit, subsidiary etc.) must adapt to in order to survive as a viable business entity.

Business Survival Necessities

An organization's ability to handle a changing competitive environment is dependent upon their:

Having adequate cash flow to make changes: Once a need for change has been determined, there must be enough resources to make it happen. Hindsight is great but it doesn't help a company survive.
Balance of sales and operations objectives: For some organizations the reason operational costs are out of control is because the company has always been sales focused with most development monies going toward the sales process. The balance is part of the company culture and must be addressed at the top in order to fix.
Operational flexibility: Underfunded operations in purely reactive or firefighting mode can never make the adjustments necessary to survive.
Understanding technology implications: Organizations should always be keeping an eye on changing technology. Ignoring technological change will not make it go away (just ask Blockbuster). Technology can also be used to improve sales and/or maintenance operations to remain competitive in a global economy.
Ability to make good long-term decisions: Many of today's companies got in trouble because they failed to plan accordingly. Decisions (acquisitions, adapting technology etc.) should be well thought out with an understanding to the organization's bottom line over the years to come.

Thriving with an EAM System

Organizations lacking in the listed areas run a significant risk of not being able to adapt and survive. The good news is that an Enterprise Asset Management (EAM) system can make an impact in 4 of the 5 variables.

Having adequate cash flow to make changes

The biggest cash drains in operations are labor, energy and repairs. A quality EAM solution will:

Lower labor costs by scheduling work. Scheduling allows time to be used more efficiently and effectively.
Reduce paperflow by automating manual processes such as work requests, work orders, inspections and rounds. Less paperwork enables maintenance management to accomplish more with the same amount of resources.
Better maintained assets require less energy to operate often bring an energy savings up to 30%.
EAM solutions have tools for document handling and storage. No more lost documents, making copies or spending hours trying to locate important information.

Operational flexibility

An EAM system allows maintenance management to be proactive instead of constantly fighting fires. This not only saves money but enables facility management to have greater flexibility in addressing new or old issues.

Understanding technology implications

Operating margins are not just determined by labor costs. More importantly, the proper use of EAM and mobile technology can add significant margin improvements by controlling costs, increasing uptime, lengthening the useful lifecycle of assets as well as increasing asset reliability.

Ability to make good long-term decisions

Implementing an EAM system is a long term decision with benefits that grow over time. For example, an EAM system keeps an accurate historical record of all work performed. Having an accurate work history database enables:

Better capital budgeting freeing up cash reserves in the process.
Establishment of standard operating procedures.
Liability claims to be contested by demonstrating consistent quality care of assets.

Tell us how your organization manages change. If you lied this article you may also enjoy reading:

I Have Seen Fire and I Have Seen Rain

Stuart Smith — Tue, 21 Jun 2011 12:46:00 GMT

Things We Can't Control

Every day in one part of the country or another there seems to be some sort of natural disaster occurring. Already in 2011 we have seen major flooding up and down the Mississippi River and a slew of tornados eat through the Midwest and east coast.

Now here we are the day before summer officially begins only to see that over 14 million acres have been burned and 6 States facing major flooding in the Missouri River Basin. In addition, as of today we also have two nuclear power plants under alert as a result of regional flooding.

"Record water levels in the Missouri River have put two nuclear power plants in Nebraska on flood alert. Additional flood prevention measures have been taken at the Fort Calhoun and Cooper plants...In addition to the existing flood-protection at the plant, OPPD employees and contractors have built earth berms (raised barriers) and sandbagged around the switchyards and additional buildings on site."
Source: World Nuclear News

How Using a CMMS Can Beat the Heat

As summer heats up, continued heat and the hurricane season will only add to our nation's weather woes. Obviously, no part of our country is immune from the impact of extreme weather conditions, however, every industry as well as organization can be better prepared using a CMMS.

Summer heats brings a different strain on maintenance staff. In the heart of the summer, few people really enjoy working outside in the heat and humidity. The good news is that maintenance staff can reduce the amount of time spent outdoors or in any harsh environment by using a CMMS.

CMMS software is the core of almost every well run maintenance operation. There are several ways that maintenance management and staff can take advantage of a CMMS solution to increase efficiency and effectiveness to beat the heat.

CMMS for Automating Manual Workflow

Filling out paper forms for creating work schedules, work orders and so on is as obsolete as tape decks and 8-tracks. Using a CMMS to reduce paperflow not only saves time and money but it eliminates the problems with paper storage, transcriptions and delays in finding out if the work was done as well as what supplies were used.

Automating the work management process has several other advantages including:

More time available for actual work such as preventive maintenance, inspections and repairs.
Fewer forms being turned back in that are covered with sweat, stains or otherwise unreadable.
Real-time notification of work in progress or completed.

Work Management Scheduling

One of the biggest advantages of having a CMMS solution is the scheduling tools enable maintenance management can take back proactive control of work. Automation frees up enough time so that proper preventive maintenance and inspections can start.

The more planned preventive maintenance and inspections performed, the fewer unplanned surprises occur. The object of a good maintenance program is to have between 60-80% of all work be scheduled.

When this is achieved one of the benefits will be the ability to schedule outdoor work in early mornings or at times when the heat is bearable. Other benefits include but are not limited to:

Lower labor costs as overtime is reduced.
Longer lasting assets as a result of better maintenance care.
Decrease in energy consumption as well maintained assets require less energy to perform the same amount of work.

CMMS Expedites Inspections.

Any asset exposed to the elements should be inspected periodically and especially just before and after severe weather strikes. If your organization has a fair amount of assets that are outdoors or are spread out over a large geographic area, then it makes good sense to be able to organize their maintenance.

A CMMS solution makes a great tool for inspections because an inspection checklist can be generated quickly with results reported using handheld devices. The use of handheld devices not only increase mobility but also gives management near real-time results and the ability to react faster to impending weather concerns.

For example, a CMMS could be used to generate a checklist of critical assets in the path of a wildfire or a list of levees to be checked as flood waters rise. As hurricane season approaches CMMS generated checklists can be used to make sure generators have fuel supplies or that assets are properly secured.

Keeping organized with a checklist will also reduce the amount of time needed to prepare as well as minimize the amount of time maintenance staff will need to be exposed to the elements.

Tell us what type of weather affects your operations the most? If you liked this article you may also enjoy:

Who Uses CMMS

Stuart Smith — Tue, 14 Jun 2011 13:51:00 GMT

In order to understand who uses computerized maintenance management software (CMMS) it is important to make sure you understand what a CMMS does. By definition CMMS is:

"A computerized system designed to enhance efficiency and effectiveness of maintenance activities. Also known as CMMS, typical features include planning, scheduling and monitoring of work orders and maintenance needs."
Source: Glossary of EAM and CMMS Terms

Who Makes use of CMMS

CMMS solutions can be found in almost every industries because they bring to the table substantial organization, maintenance planning, control of maintenance and cost savings. CCMMS users include facility and maintenance management, asset planners as well as maintenance staff.

15 Reasons Organizations Use CMMS Solutions

They can be found in any almost any type business across multiple industries wherever organizations:

Are managing a facility or maintenance staff responsible for the planning, upkeep and maintaining of assets/equipment.
Understand that good maintenance can make the difference between a profitable year and shutting down permanently.
Are tired of having their core operations interrupted by equipment or assets failing.
Have taken back control of unplanned maintenance that was causing overtime and/or eating away at profit margins.
Use to spend more than 20% of their maintenance time manually tracking or scheduling work management (preventive maintenance, repairs, rounds, inspections etc.).
Have virtually eliminated paper flow in work management.
Realized that liability from asset negligence can be mitigated by keeping accurate historical maintenance records.
Found a need to reduce energy expenses which can account for more than 30% of total operations expenses.
Have multiple locations and wanted to establish maintenance SOPs.
Have moved from a mostly reactive maintenance operation to proactive.
Are no longer willing to accept a run-to-failure operation.
Have realized that spreadsheets are extremely inefficient.
Understand the value of setting up an inspection schedule on critical assets.
Need to be able to shut down and restart operations quickly.
Have recognized the value of increased mobility for efficiency, professionalism and profitability.

The common thread for users is that organizations understand that good maintenance practices are not a option, they are a requirement in today's competitive world.

Industries Using CMMS

Typical industries where CMMS can be found include but are not limited to:

Manufacturing
Ports
Utilities
Federal, State and Local governments
Property Management and HOAs
Hotels and Resorts
Energy Plants
Oil, Gas and Mining
Hospitals and Clinics
Amusement Parks
Sports Stadiums and Arenas
Religious Institutions
Cable and Telecommunications
Building and Facility Management
Schools and Universities

The reasons CMMS solutions can be found in so many industries is because the CMMS is based on common sense. Common sense tells us there is no point doing something manually if it can be automated and reactive maintenance (pay me later) is always more expensive than planned maintenance (pay me now).

Share with us the reasons your organization needs a CMMS. If you liked this article you may also enjoy reading:

Using Maintenance Management to Challenge Hotel Star Ratings

Stuart Smith — Wed, 08 Jun 2011 11:53:00 GMT

When you see a hotel that has a * or 5 stars rating, different images of quality, luxury and costs comes to mind. For years different organizations have used various methods to assign a rating to hotels. Now it would appear many countries are aligning themselves with the The Hotelstars Union classification being widely used throughout Europe.

Understanding The HotelStars Union Classification

The Hotelstars Union's Classification scheme is based upon 21 core competencies covering 270 elements. Each item has a different point value and a minimum amount of points must be obtained along with a set of minimum qualifications to be assigned a Start level.

It is safe to say that no one category can put you at a certain ranking but it would appear that the three most important areas are:

Degree of luxury such as room size, individual room HVAC controls, spas, bathroom features, room amenities, lobby characteristics, bar, restaurant etc.
Degree of hotel services available such as length of time reception is open, room amenities, internet access, room service, mini bars, breakfast etc.
Level of guest services such as turndown service, ability to get extra bedding, business services, laundry services, frequency of linen changes etc.

The one item that does stand out is that in order to obtain a 3,4 or 5 star rating the hotel must have a systematic complaint management system. This is important because a good complaint system should interface with or be part of an asset and maintenance management system.

Why an EAM CMMS can Help a Hotels Rating

In a previous article we discussed the importance of hotel maintenance for making first impressions. In yet another article about hotel guest retention, we discussed the importance of being able to maintain luxury items using a systematic approach to maintenance. In addition, an EAM CMMS can be used to address the most common guest complaints of room noise, dirty rooms, HVAC issues and room smells using an organized system of inspections and work management.

As a fair amount of work requests is generated from guests or are on high profile assets it becomes critical to make sure that guest complaints and work orders are handled quickly and effectively.

An EAM CMMS system provides the computerization necessary to quickly record work request, schedule repairs and the ability for hotel management to provide exceptional customer service by informing guest when the work was completed. But the benefits of an EAM CMMS do not stop there for hotels and resorts. Other important benefits include:

Lengthening the useful life cycle of assets. This lowers capital replacement costs and increase cash flow
Better hotel sustainability enabling hotel to upgrade their services and luxury assets.
The ability to charge premium rates.

An EAM CMMS solution cannot single-handedly move you up to a higher star rating but it can give your hotel the foundation it needs to be able to afford the necessary changes to achieve a higher rating.

A couple of special notes: There is no worldwide accepted rating system and there are no hotels actually above a 5 star rating. Hotels designations as budget, economy, deluxe and first class have no bearing on their rating as these are hotels classification types rather than standards.

Tell us if your hotel is prepared to change rating levels and how you are preparing to do so. If you liked this article you may also want to read:

Is Waiting Until Equipment Breaks Good Asset Management

Stuart Smith — Mon, 06 Jun 2011 15:34:00 GMT

When we elect local government officials, we hope that they will make good long term decisions for the cities and towns that we live in. In an era of continual budget crises, this hope means that the intelligent long term care of municipal assets is not being sacrificed for immediate political gains.

Run to Failure Asset Management

One of the most common types of asset management is often called Run-To-Failure Maintenance or crisis maintenance. It is when assets are allowed to run until they breakdown before any attention is given to them.

"...data obtained in many studies over the past decade indicates that most private and government facilities do not expend the necessary resources to maintain equipment in proper working order. Rather, they wait for equipment failure to occur and then take whatever actions are necessary to repair or replace the equipment."
Source: U.S. Department of Energy

The reason that run-to-failure maintenance is so prevalent is that it is easy to do, takes very little thought and is completely devoid of long term maintenance planning. It is the Easy Button for government officials and asset managers.

The Easy Button for Maintenance

No one expects an elected official to be an engineer, utility expert or city planner. But elected officials are expected to know how to find solutions to the problems their communities face.

Short term financial impact

The short term impact of waiting for equipment to break before taking maintenance measures includes:

Higher emergency labor costs as assets rarely breakdown at convenient times.
Higher labor costs as equipment breakdown more frequently
Higher energy cost as poorly maintained equipment use more energy to accomplish the same results.
Increased risk of catastrophic repair, event or disaster as it is usually a minor issue that blossoms into a disaster.
A reduction in facilities or services available to the public as a result of unexpected closings

Long term financial impact

Higher capital budget requirements as assets will need to be replaced more often due to poor maintenance practices.
Higher liability and risk management costs as a result of accident lawsuits claiming negligence in asset care.
City and municipal assets deteriorate faster
Important asset systems such as water systems and stadiums etc. can reach a point where maintenance options are replaced by tear down and complete reconstruction.

The bottom line is there is no upside to waiting for assets to fail.

The EAM Smart Button

It is important for true leaders to visualize the long term when managing a city or town. In order to do this, elected officials need to know what are their assets are as well as where they are, the condition they are in and their maintenance history. This can be accomplished with an Enterprise Asset Management (EAM) system.

Short term impact

The short term impact of an EAM system is an almost immediate costs savings of all the short term impacts listed above for the Easy Button. This includes:

A reduction in emergency repairs as assets are scheduled for all work management including preventive maintenance and periodic inspections based upon their maintenance history.
Lower labor costs as manual processes and archaic means of tracking assets are replaced with computerized tools.
Lower energy costs as equipment is maintained better (ex: HVAC).
Reduced likelihood of catastrophic emergencies.
Lower unplanned downtime and closings as most maintenance can be scheduled during off hours.

Long term financial impact

Implementing an EAM system will help manage assets from planning through replacement. This can benefit the smart politician because it will:

Lower capital budget requirements thus freeing up resources need for new projects.
A safer city or town.
Landmarks, facilities, parks remain usable for a much longer period of time.
Voters can take pride in their city and effective leadership.
Smarter cities attract better business opportunities.

Waiting for assets to breakdown before reacting is not good asset management, good asset management includes making an EAM system the new Easy Button.

Tell us how your city manages if infrastructure. If you like this article you may also enjoy reading:

Reactive Maintenance, Pro-active Maintenance and Shades of Grey

Stuart Smith — Fri, 03 Jun 2011 11:57:00 GMT

First, I should admit that the idea for this article resulted from a discussion this morning about my upcoming root canal (ouch time). Whether the root canal could have been avoided is a non-issue, the pain exists, the reactive maintenance solution is a root canal.

However, is a root canal also a pro-active maintenance solution since it will stop further tooth decay as well as address the pain? Without a root canal, a person could potentially lose their teeth in addition to developing serious health risks. In this regard, a root canal can be considered pro-active maintenance.

Shades of Maintenance Grey

If reactive maintenance can be considered pro-active in certain situations how important is it to know the reason why the work was needed in the first place? This is not as simple a question as it seems. In fact, there are shades of grey in many work management issues.

Some examples where reactive maintenance work can be considered pro-active include:

Reactive/Pro-active Maintenance Examples

Fixing a leak - the leak could be caused by any number of problems but fixing it can stop major water damage from occurring.
Corrosion control - addressing corrosion issues can lengthen the time before piping/valves need replacement perhaps stop a major repair from an unexpected failure.
Opening Mississippi River spillgates - certainly a reactive solution to the rising flood waters but it also (pro-actively) prevented unwanted damage downriver in metropolitan areas.
Road Repair - classic case of potholes that can only be fixed after they occur. However, fixing them prevents accidents, lawsuits and unwanted constituent anger.
Common area maintenance - Fixing a broken door or cleaning up storm debris is reactive in nature but also prevents potential injury as well as reducing liability exposure.

The list of examples could go indefinitely, the point is almost every maintenance work order is a reaction to circumstances or events. The work performed is a reaction to a problem, expected problem, potential issue or need for preventive maintenance (such as changing an oil filter).

Understanding the Cause of Maintenance

In my root canal example above, I stated that the cause of the root canal was a non-issue. The solution was all that mattered because my mouth hurts and I just want it fixed. This is WRONG! Understanding what caused the problem is just as important as the root canal maintenance solution. A failure to learn from my mistakes will only lead me to repeat the behavior and suffer the same pain over and over.

Sadly, in many organizations the fix-it now reactive method of maintenance dominates the better asset and maintenance management that make pro-active maintenance a priority. Moving away from a highly reactive maintenance operation is painful but can be done.

The ability to shift the maintenance focus from reactive to pro-active starts with a EAM CMMS system that tracks assets from planning through replacement. The CMMS core engine of these software systems enables asset and maintenance managers to know the reason for each maintenance request.

Why is the Reason/Cause of the Maintenance Work Important?

The goal of any good maintenance management system is to reduce unplanned downtime, maximize uptime, reduce capital expenditures and make sure maintenance dollars are spent wisely. Knowing the reason behind every work request, work order or unplanned repair is the basis of all maintenance methodologies including PM, CBM, TPM and RCM.

Each methodology relies on acquired knowledge to predict and schedule maintenance. Acquiring knowledge about an assets work management history allows maintenance planners to develop the appropriate maintenance planning mix.

An EAM CMMS will schedule each work request, work order or unplanned maintenance activity. As activities are completed, the results are added to each assets history record. Asset and maintenance management can review these records to:

Identify recurring causes.

Adjust maintenance planning to focus the majority of maintenance resources on the 20% of assets that cause the most problems.

Schedule inspections and preventive maintenance based upon the work management history of assets.

Determine the cost/benefit of repair versus refurbishment or replacement.

Analyze vendor performance.

Ascertain maintenance skills levels and opportunities for EAM CMMS training.

Make better capital budget projections.

Unplanned Maintenance is a Fact of Life

Even the best maintenance planning will not be able to avoid unplanned or the occasional emergency repair as there are simply too many variables for 100% accuracy. However using an EAM CMMS system will give maintenance management enough time to conduct inspections and preventive maintenance to minimize unplanned disruptions.

Tell us how what your organization is doing to avoid a root canal. If you liked this article, you may also enjoy reading:

Why Aren't You Using a CMMS Checklist for Summer Storms

Stuart Smith — Wed, 01 Jun 2011 12:00:00 GMT

Don't Get Caught Without a CMMS

This Spring has been a nightmare for the nation's heartland as tornados and heavy downpours have caused countless lives and millions in damages. As Spring draws to a close, the Summer storm season is expected to bring as much havoc with exceptionally high hurricane projections.

"Information obtained through March 2011 indicates that the 2011 Atlantic hurricane season will have significantly more activity than the average 1950-2000 season. We estimate that 2011 will have about 9 hurricanes (average is 5.9), 16 named storms (average is 9.6), 80 named storm days (average is 49.1), 35 hurricane days (average is 24.5), 5 major (Category 3-4-5) hurricanes (average is 2.3) and 10 major hurricane days (average is 5.0). The probability of U.S. major hurricane landfall is estimated to be about 140 percent of the long-period average."
Source: Colorado State University, Dept of Atmospheric Science

Hurricanes don't just affect coastal regions, they often sweep inland bringing heavy rains to every area east of the Rockies. Industries and organizations impacted by storms include; Hotels, Schools, Parks, Amusement Parks, Hospitals and all levels of governments.

The I Don't Need CMMS Excuses

Asset managers always seem to have an excuse why they don't need a CMMS system. The top reasons with my response (this is why I am not in Sales) include:

The Asset Manager Excuses

We are already prepared
Storms don't hit major metropolitan areas
I could use the day off anyway
Insurance or the Federal Government will cover the losses
We can't afford it

The CMMS Reality Check Response

Being prepared is more than just having a emergency kit with a flashlight, batteries, water and food. Being prepared also means making sure your facilities can shut down quickly, survive the storm and start operations again as soon as the sun breaks out.
According to the NOAA, over half the population in the USA and worldwide live within 125 miles of the coastline. Further inland, tornados have hit almost every State and cities like Dallas, Oklahoma City, Wichita and most recently Joplin.
Everyday your facility is not in operation is lost revenue, production or services provided. In an already weak economic climate, damaged facilities may not be reopened if the costs is too high. Your extra day off may last for months or years.
Time to wake up from your dream. If and when you receive an insurance pay out or obtain government assistance the chance of the money covering your actual losses is slim to none.
CMMS software is not just for emergency planning for asset management. Once implemented, savings using a CMMS can range from 10-30% of annual MRO expenses each and every year.

How CMMS Features Impact MRO and Storm Preparedness

CMMS software is designed to organize and automate many of the manual processes that comprise work management. This includes work requests, work orders, inspections and unplanned maintenance. During implementation, asset detail is recorded such as location, description, serial number, date of install, vendor etc.

The benefits begin with a sharp reduction in paper flow as manual work requests disappear. Once work requests arrive, they can be viewed, prioritized and assigned using the CMMS scheduling features. Work is then completed by the assigned person and results are submitted via mobile handheld devices.

By automating the work management processes and making use of the scheduling features, asset and facility managers in all industries are able to have a more pro active maintenance function that reduces unplanned repairs, decreases downtime, lowers labor costs and increases energy efficiency.

The Value of CMMS Inspections

One of the keys for storm readiness is the ability to check critical assets and perform shutdown procedures quickly. CMMS software can generate checklists for inspections and send them to mobile handheld devices for rapid responses. Different inspection checklist can be used for before, during and after the storm passes.

As inspection results are reported, asset managers can then compare the results against the asset information stored by the CMMS. Results can be used to prioritize and generate work orders that return operations to normal as quickly as possible.

When using a CMMS, storm preparation is just another day at work. Tell us what your organization has done to prepare for the summer storm season.

If you liked this article you may also want to read:

Newton's 3rd Law of Work Requests

Stuart Smith — Wed, 25 May 2011 11:58:00 GMT

Let's face it, we have all been in a situation where the temperature is either too warm or too cold. One person's comfort zone is another person's misery. But what happens when getting the temperature adjusted turns into a maintenance management nightmare?

Why Maintenance Management Goes Crazy

In some offices, the temperature can be adjusted by anyone, in other offices it takes a supervisor or someone with a key. In larger facilities like a casino, the temperature is controlled by casino management and the maintenance department as part of an overall operations plan to watch energy usage as well as keep casino guest comfortable.

When the environmental controls can only be adjusted by maintenance the normal procedure is to turn in a work request using a handheld device so that work can be scheduled as soon as possible. But what happens when similar requests are turned in just minutes apart. One work request asks for the temperature to be raised and the second work request asks for the temperature to be lowered.

When this happens it is commonly referred to as Newton's Third Law of Work Requests, which clearly states that for every work request there is an equal and opposite work request guaranteed to annoy the facilities management and maintenance team.

The Facilities Manager's Dilemma

When opposing work requests arrive, how do you tell which one to turn into a work order and which one to deny? The simple answer is to respond to the person that is higher up the management food chain. When this information is not available maintenance management must:

Track down the person who submitted the work request.
Ask for additional details such as area, reason such as if the request was guest proposed versus employee request.
Submit additional information to management for a decision.
Wait for the unhappy party to generate a third work request or have an executive override to come in.

Actually, the possibilities for action can be endless. The truth is, it is impossible to make everyone happy. The best that facility or maintenance management can do is make sure they have the best information available when accepting work requests. This can be accomplished by making sure all staff have been properly trained in submitting work requests using their EAM CMMS systems.

EAM and CMMS Facility Management Tools

EAM CMMS tools features include the ability to automate much of the work management lifecycle including work requests, work orders, inspections and preventive maintenance. However, their true value comes from increasing maintenance efficiencies, lengthening the lifecycle of assets and giving facilities management the ability to evaluate the work that has been completed to make better repair, refurbish or replacement decisions.

EAM CMMS tools are most effective when they are used properly. This means that the software has the needed asset detail in the system and that proper EAM CMMS training is conducted both during implementation and over the course of time. It is the facilities manager's job to make sure that all staff are using the system as it was intended to be used.

Applying EAM CMMS Tools to Newton's Third Law of Work Requests

The key to submitting work requests AND completing work orders is making sure that you have all the detail. For our Casino example, the information that is missing includes:

Which part of the Casino floor (lobby, slots, poker tables, restaurant...)
A better description of the problem such as how cold or warm and who is complaining (asking for the change (guest, employee).
More details including if the problem is related to a vent issue, a door stuck open or is the HVAC not working etc.

This is critical as one of the goals of facility maintenance management is to maintain the proper environmental conditions that lead to maximum productivity, guest satisfaction and energy savings. Having the proper temperature affects humidity which can affect the performance of equipment as well as lead to corrosion (if too humid).

Share with us how your facility handles Newton's Third Law of Work Requests. If you liked this article you may also enjoy reading:

CMMS Inspections Can Increase Response Time to Grímsvötn Eruption

Stuart Smith — Mon, 23 May 2011 18:34:00 GMT

On March 21, 2010 an eruption a volcanic eruption at Eyjafjallajokull, Iceland launched an ash cloud that effectively shut down European airspace for several weeks. Now a little over 14 months later, an even larger volcanic eruption at Grímsvötn, Iceland, is again challenging asset manager's ability to perform preventive maintenance and inspections quickly.

The Grímsvötn Eruption

The Grímsvötn volcanic, lies under the uninhabited Vatnajokull glacier in southeast Iceland and is Iceland's most active volcano. It is situated on the northern end of the Mid-Atlantic Ridge and is part of the Ring of Fire. This is the same ring of fire that was responsible for Japan's tragic earthquake on March 11,2011.

The eruption has already sent a plume of ash over 17km high which is twice as high as the Eyjafjallajokull eruption last year and early ejections were producing between 10 and 100 times as much material.

The good news is that the ejected material is a different composition than last year's eruption that paralyzed aviation and airports. The ejected material is only 50% silica as compared to last years eruption of 63% silica. This translates to larger, less stickier particles that fall to the ground faster.

The bad news is that there is more of it. The ash plume is expected to begin affecting British airspace today and tomorrow although the prevailing wind patterns should keep the bulk of the ash out of European airspace. How much mayhem and destruction will be caused is dependent on long the eruption lasts, the wind and how high. Eruptions can last hours or weeks so it is too early to tell what the damage may be.

Asset Management Preparedness

Last year's eruption put fine silica particulate matter into the atmosphere that could melt inside airline engines and stick to almost any surface. Asset and facility managers throughout Europe learned to perform inspections before operating equipment as well preventive maintenance on assets that make use of air filters.

Because of the sheer volume of the ash, asset managers should immediately put into action their emergency plans for scheduling inspections and preventive maintenance. Industries affected include, airlines, bus services, water utilities, energy plants, hotels and resorts as well as schools or any industry requiring ventilation.

All ash buildup should be removed before operating equipment that requires air intake such as engines or HVAC. In addition, assets that provide us water supplies should be monitored as sediment can easily clog water filters in water utility plants or waste water treatment plants.

Use a CMMS to Perform Work Management Functions Efficiently

Computerized Maintenance Management Software (CMMS) enables asset managers to know where all their assets are and in what condition they are in at any given point in time. This is critical knowledge when there is a need to react quickly to a disaster situation.

CMMS becomes an asset manager's best friend because of how it provides information to decision makers and maintenance planners. Key elements and benefits of using CMMS include:

The automation of manual work management processes such as work requests and work orders through the elimination of paperwork.
A reduction in labor costs as a result of better pro active maintenance planning.
Faster information flow of inspections or work order results as a result of increased mobility through the use of mobile handheld devices.
Fewer unplanned or emergency repairs as well as a reduction of capital replacement costs.
Lower energy costs because assets are not using more energy (clogged filters etc.) to accomplish the same performance.

The key to disaster response is being prepared. This was very evident with Japan's response to the tragic earthquake. Japan's readiness may have prevented countless more deaths and averted an even more disastrous nuclear catastrophe.

The first step in being prepared is having as much asset knowledge as possible and having a planned course of action. CMMS solutions enhance disaster planning by organizing asset data, identifying bottlenecks and making sure work crews can be scheduled quickly and efficiently.

Tell us how prepared you are for an emergency. If you liked this article you may also enjoy reading:

10 Things Asset Managers Can Accomplish Before Judgment Day 5.21.11

Stuart Smith — Fri, 20 May 2011 18:51:00 GMT

As many of you know, Judgment Day according to some interpretations of the Bible along with some creative math, will occur tomorrow, May 21, 2011 at 6:00 PM. I am sure that all asset management professionals all around the world are prepared, but just in case you are not you can take solace in the bucket list below.

"...when the clock says about 6 p.m., there’s going to be this tremendous earthquake that’s going to make the last earthquake in Japan seem like nothing in comparison. And the whole world will be alerted that Judgment Day has begun. And then it will follow the sun around for 24 hours. As each area of the world gets to that point of 6 p.m. on May 21, then it will happen there, and until it happens, the rest of the world will be standing far off and witnessing the horrible thing that is happening."
Source:Harold Camping in interview with New York Magazine,

The Asset Manager's Bucket List

Now that Judgment Day is imminent, asset managers need to take a moment and reflect on their work and life. Some suggestions for a bucket list for the next 24 hours include:

Tell the boss he is going to Hell for not buying an EAM system.
Give everyone the raise they think they deserve.
Mark all the outstanding work orders complete.
Drink a six pack and play "How close can I come to this turbine without getting sucked in."
Shut down all facilities - no sense on wasting money on dead people.
Tell your contractors to meet you at 6:05 PM to receive more work at double the rates.
Cancel all maintenance activity, take your staff for a ride on the lower Mississippi and buy them t-shirts saying "I survived the flood."
Place all your life savings on your final bet on The Preakness.
Pull the fire alarm at 5:55 PM to see if the fire department responds.
Jump off a cliff and see if your friends follow.

When/if you wake up on Sunday morning will it be like the final Newhart episode and you find out your life is just a nightmare. What will you do over the next 24 hours?

Top Ten School and University Maintenance Checklist for the Summer

Stuart Smith — Thu, 19 May 2011 18:04:00 GMT

It is that time of the year again, schools and universities are about to let out for the summer. With all the budget slashing still going on it is important that schools and universities use their maintenance resources wisely.

School Budgets, Maintenance and the Pareto Principle

Cause of School and University Budget Cuts

Our Nation's economy is complex yet it is simple to understand why our schools and universities are being hammered by a continuing decline in budgets. High unemployment rates lower the tax revenues available to States and local communities (yes, this is a very simple view).

Unemployment cuts State revenues because income taxes, sales taxes, and other revenue sources used to pay for these programs decline. As State revenues are reduced, States begin to cut spending, layoff employees, cut contracts and reduce benefits.

These actions, although they seem fiscally prudent actually have a negative impact as more people become unemployed and businesses tighten their spending belts. The monies available for education continue to dwindle as the tax revenue base becomes smaller and smaller.

The Impact to School and University Budgets

As States trim their budgets of services, educational funding and programs, the Federal government has attempted to mitigate the impact through a series of aid packages. Unfortunately, much of this aid is set to expire before the economy is expected to recover.

This have left States struggling to find ways to balance their budgets and is resulting in deeper educational cut backs for the coming 2011-2012 school year.

"At least 34 states and the District of Columbia have implemented cuts to K-12 education...At least 43 states have implemented cuts to public colleges and universities and/or made large increases in college tuition to make up for insufficient state funding."
Source: Center on Budget and Policy Priorities

Source: Center on Budget and Policy Priorities

The Pareto Principle

The Pareto principle is more commonly referred to as the 80-20 rule. The thought is that 80% of the effects come from 20% of the causes. For school and university maintenance this can be interpreted as 80% of the schools maintenance will come from 20% of the schools assets.

For example, during the course of the year, 80% of the door repair work orders will come from the 20% of the doors used most frequently. The same can be applied to carpet, windows, and all almost all wear and tear items.

Applying the Pareto Efficiency to Schools and Universities Maintenance Planning

The Pareto principle also known as the Pareto efficiency suggests that maintenance would be more efficient if efforts are concentrated on the 20% of assets causing the most work management. This means concentrating maintenance efforts on the most used school and university assets.

With budgets being reduced it is imperative that schools and universities try to get the most out of the maintenance resources they have at their disposal. Intelligent maintenance planning is the key to making sure that our schools and universities remain operational and safe when students return for the next school year.

Top Ten School and University Maintenance Checklist

Keeping the Pareto efficiency in mind, schools and universities should be using their CMMS to make sure that all maintenance work is scheduled and results recorded over the summer. Inspections checklist and work management should be scheduled for the following school and university assets:

Top Ten School and University Maintenance Items

Classrooms and Equipment
Common Areas
Doors and Windows
Playgrounds
Recreational Equipment
Plumbing and Fixtures
Lighting
HVAC
Fleet Transportation
Lighting

The use of a CMMS to organize and automate the work management process enables schools and universities to be more efficient and get more work done with the same amount of resources.

Share with us how your educational institution will handle maintenance this summer and what your top priorities are. If you liked this article you may also want to read:

Government Asset Management Improves With Mississippi River Flooding

Stuart Smith — Fri, 13 May 2011 19:44:00 GMT

We all remember the effect of Hurricane Katrina on New Orleans and the criticism hurled at Federal, State and Local government for not having better disaster management plans in place. It would appear that governments have made significant improvements as they manage the raging floodwaters of the Mississippi in what may be the worst flooding since 1937.

Following the Rising Mississippi Flood Waters

In just a little more than a two week stretch in April, snow melt combined with the after effects of two major storm systems that dumped over 600% above normal rainfall in many parts of the Ohio and Mississippi watersheds has caused the Mississippi River to swell to the second highest level recorded.

Water levels continue to mount as the river flows south and different locations along the path of the Mississippi River are expecting to see the river crest in their area over the next week. Southern Louisiana is expected to be hardest hit in areas like Baton Rouge and New Orleans that could receive up to 25 feet of floodwaters if the levees break.

River Crest Timeline

Arkansas City, Arkansas- May 15th
Natchez, Mississippi - May 21st
Baton Rouge, Louisiana - May 22nd
New Orleans, Louisiana - May 23rd

River Management by Government and the Army Corps of Engineers

In contrast to Hurricane Katrina, government asset management seem to be prepared for the river cresting's. Local and State governments have issued evacuation orders, formed sand bag teams, clean up crews and established emergency centers.

On the federal side the Army Corps of Engineers has been reinforcing levees with sandbags or high density polyethylene (HDPE) and opening spillways to reduce river water levels. The video below made by PBS is a little long but gives a great explanation of the levy and floodgate infrastructure.

Why Preventive Maintenance and Inspections are Necessary for Levees and Spillways

The current $13 billion system of levees and spillways along the Mississippi River were constructed after the great floods of 1937. In order for these systems to be effective they must work in a time of emergency.

"That's the biggest monster to a levee -- erosion...The Yazoo Backwater levee is designed to hold the Yazoo River and the Mississippi from flowing into the south Delta. If there were no levee, up to 2 million acres of land would be flooded,"
Source: Kavenaugh Breazeale, Spokesman for The Army Corps of Engineers

As with any natural disaster, there is not usually a whole lot of time to prepare asset management. The time that is available must be used effectively and not spent trying to repair an aging river infrastructure. Clearly the best way to accomplish this is to:

Perform periodic inspections for erosion and schedule repairs as necessary.
Schedule and perform preventive maintenance on river assets that are affected by corrosion or weakened by time so they last longer and cost less to repair.

How a CMMS Helps Governments Prepare for Natural Disasters

A CMMS enables governments to record the location, age description, date of installation and cost (and many other details) of all assets. Once asset detail is loaded into the CMMS database, assets from all locations can be then be scheduled for inspections, preventive maintenance, repairs or any other task.

When used correctly, the CMMS system will record all work management including work requests, work orders, inspections and their results. The historical information that is collected is priceless when it comes to long term planning and capital analysis.

We all hope that the levees hold over the next week and wish communities affected by the flood waters a swift recovery.

Share with how well your community is prepared for a natural disaster. If you liked this article you may also enjoy reading:

How RFID Technology Will Work With An EAM

Stuart Smith — Fri, 06 May 2011 12:35:00 GMT

Some technologies have the potential to completely change how operations are conducted in business. New ideas are constantly being generated and as they are researched new applications develop spreading the technology. Some examples are huge, such as the internet or the automation of manual work management processes through software. However, integrating this technology into everyday business did not occur overnight and in many cases took years to become part of our industrial fabric.

Great ideas find their path into business just as it does in everyday life. They start with one application and then grow as other uses come to light or are accepted into the mainstream. Radio-frequency identification (RFID) is one such technology that has a huge potential in today's industrial world.

Understanding RFID

RFID technology enables the transmission and receiving of radio waves between a tiny microchip (tag) and a reader. The chips contain asset information that can be used to identify it, track its movement or even its cost. Once an asset is tagged it can then be read by a reader for management review or action.

There are three primary RFID types; passive (no batteries), active (continuous broadcast with a battery) or be activated only when an RFID reader is in close proximity (requires a small battery). The greater the battery power the greater the cost. The price range for tags ranges from a few cents for the passive up to $100 for the more powerful actives. This makes the cost of individual tags a significant factor to consider.

In addition, there are two types of RFID classifications. The first is a fixed RFID which the reader is in a set position. The second is a mobile RFID where the reader may be part of a mobile handheld device. Because of the cost of active tags, many industries current use passive or battery assisted tags to monitor inventory.

Over the last few years technology has improved the amount of information that can be contained on the tags as well as the ability to transmit (read) the information at greater distances. Perhaps the greatest advantage to industry is that unlike bar codes which can only be read one at a time, RFID tags can be read in bulk, for example inside boxes or as a shopping cart goes by a reader in a store. Assets can also be read using mobile devices in more challenging locations such as assets buried underground.

Industries Using RFID Technology

RFID technology is currently in use by the health care industry, by companies to automate Sarbanes-Oxley compliance and for use in inventory tracking. New applications are being developed every day and are expected to be used by manufacturing, construction and the military.

One of the fastest growing areas is inventory control. Bulk and boxed reading is a significant advantage over bar code technology. For example, inventory reconciliations in a cable warehouse or on trucking fleets can be reduced to just a simple walk-through (without paper) making accounting staff and asset managers very happy with the labor and paper flow expense savings.

An example of RFID use in the retail industry has just been announced. Walmart recently announced the use of RFID for retail asset management specifically, to track clothing for better inventory. In addition to better inventory control, RFID tags will also enable stores to reduce theft by sending out a signal for unremoved RFID tags on store items.

Advancing RFID Toward EAM Applications

Future industrial applications for RFID technology will also benefit infrastructure management. One industry in great need of RFID type applications are utilities companies and any other industry that has assets in challenging locations. RFID tags can be used to locate underground assets or assets that are hidden.

The biggest challenges to cost effectively integrating RFID tags on hidden assets are improving the strength of signal detection and increasing the amount of data that a tag can hold. Current chips hold generally hold 2KB of information (smaller than the size of a photo). Some more advanced chips are holding up to 64KB.

We can expect microchip development to continue as they did in computers to hold much more information. New chips are sure to be able hold enough asset detail to transmit critical information to asset managers without having to dig up the pipes or cables for inspection.

As RFID capabilities improve a major breakthrough will occur when the tags are able to incorporate enough data that can be uploaded directly into EAM system for management review and analysis. The impact on asset and maintenance management will be profound for labor, planned maintenance effectiveness and capital analysis.

Share with us your view point on the use of RFID technology and how it may help your asset management. If you enjoyed this article you may also want to read:

Aircraft Boneyard Asset Management

Stuart Smith — Wed, 27 Apr 2011 11:54:00 GMT

Have you ever wondered what happens to aircraft when they become obsolete, are unable to fly, need too much repair or are no longer needed due to arms agreements? Many of the planes are either flown to or shipped to what is commonly called a Boneyard. These aircraft boneyards are not junk stations as the aircraft serve multiple purposes and require efficient work management tools.

Aircraft Boneyards

When aircraft are no longer in service many are placed in desert climates for storage. The primary reasons for desert storage is that the size of the aircraft makes hanger storage impractical and the lack of moisture reduce the rate of corrosion.

Once the aircraft have arrived, planes are normally stripped of salvageable parts that might be used for the repair of in-service aircraft. Engines, electronics and munitions are then warehoused while the skeletal remains of the aircraft are parked in the sun.

Desert storage also has a more practical application. Sometimes entire squadrons of military planes are stored in the desert due to a lack of need. These planes can then be reconditioned and made airworthy again. The reconditioning process is maintenance intensive but it is cheaper than purchasing new aircraft.

Using an EAM to Manage Aircraft Boneyard Assets

Looking at the sheer size of the aircraft boneyard it is clear that there should be an asset management system in place that uses mobile handheld devices to track as well as schedule work management on assets from arrival through deconstruction or refurbishment. An EAM system can help aviation asset managers by making sure they know where all their assets are, the condition they are in and their complete maintenance history.

EAM software works by collecting asset detail as aircraft arrive. At a minimum this includes a detailed description, location in the boneyard, reason for arrival (parts, scrap, moth balled) and serial numbers of parts. If the aircraft is to be disassembled, the EAM will schedule the work to be done.

The role of an EAM system continues as parts are warehoused or planes are reconditioned. EAM functionality gives asset and maintenance managers the tools they need to schedule all work management such as inspections, preventive maintenance, corrosion repairs, painting, testing etc.

EAM Work Management Tracking

Efficient and organized scheduling of work management is only part of benefits of implementing an EAM system. The value of an EAM system to asset managers increases as work management is recorded. When proper detail is included on completed work orders, boneyard managers can run reports to ensure that:

Standard operating procedures (SOPs) are being followed. Work management history can also be used to create SOPs.
They know the condition, location, maintenance history and work needed for all assets.
Make better capital repair decisions by determining if the condition of assets are repairable.
Maintenance operations work is done efficiently with increased mobility using mobile handheld devices. Handheld devices sharply reduces paper flow increasing efficiency as well as lowering administrative costs.
All assets can be inspected quickly as well as efficiently should climatic conditions change suddenly.

Tell us how you uniquely store aging assets. If you liked this article you may also enjoy reading: