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Page 1 A s s e t S m a r t ® SMART asset management software LESSONS LEARNED IN IMPLEMENTING CORPORATE PROPERTY AND LOGISTICS MANAGEMENT SYSTEMS COUPLED TO LARGE ERP SYSTEMS NPMA National Educational Seminar June 15, 2010 Myrtle Beach, SC
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Page 2 A s s e t S m a r t ® SMART asset management software Introduction Many large organizations have consolidated their financial, HR and manufacturing operations under ERP Enterprise Resource Planning Systems. However, most ERP packages lack robust asset management functionality, presenting a serious challenge for asset management professionals. Why might you consider a bolt-on solution in this situation, and how do you make it work for your organization?
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Page 3 A s s e t S m a r t ® SMART asset management software Key Topics Why Choose the Bolt-On Route? How Do You Get There? Common Risks and Pitfalls Conclusion Q & A
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Page 4 A s s e t S m a r t ® SMART asset management software Why Choose the Bolt-On Route? Address ERP Functional Gaps Knock-Down Information Silos Open-up Access to Asset Data and Functions Maintain More Direct Influence and Control Over the System
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Page 5 A s s e t S m a r t ® SMART asset management software Custom Development or COTS? Three Basic Options: 1)Customize the ERP System 2)Build from Scratch 3)Obtain a COTS Solution
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Page 6 A s s e t S m a r t ® SMART asset management software Advantages of COTS Software Substantially Reduces Total Cost of Ownership Specialized Implementation Help is Available Improves Continuity of Updates and Support Leverages Industry Best-Practices Guards Against Technological Obsolescence Accelerates Implementation and Lowers Risk
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Page 7 A s s e t S m a r t ® SMART asset management software How Do You Get There? Key Elements of Asset System Implementations Project Management Requirements Resources Process Analysis Data Migration Integration Reporting Security Performance Testing Training Ongoing Support
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Page 8 A s s e t S m a r t ® SMART asset management software First Steps Plan the Work, then Work the Plan Define & Document Requirements Assign a Project Manager List and Estimate Detailed Tasks Allocate Resources to Tasks Set Realistic Schedule and Budget Rinse and Repeat (Revisit the Plan Frequently)
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Page 9 A s s e t S m a r t ® SMART asset management software Do Not Just Automate a Poor Process! “The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.” - Bill Gates
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Page 10 A s s e t S m a r t ® SMART asset management software Process Analysis and Mapping What do your Asset Management Professionals and other Customers or Stakeholders do on a Regular Basis? Can and Should it be Tracked or Automated by the New System? How Can we Improve the “Old Way”? Exactly How will the New System Perform Each Function?
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Page 11 A s s e t S m a r t ® SMART asset management software Data Migration Identify ALL Sources of Data Enlist Subject Matter Experts Assess Data Integrity and Completeness – Be Honest! Load Using High-Level Tools that Enforce Validations if Feasible Require Stakeholders to Validate their Data after Loading
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Page 12 A s s e t S m a r t ® SMART asset management software Potential Integration Points Potential Inbound Integration Points (into Asset System from ERP) New Asset or material receipt from procurement Master/Reference Data Contracts, Account/Charge Numbers, Employee Data, Vendors/Suppliers Maintenance/PM Information Fixed Asset Data, Depreciation, Book Value, Useful Life Shop-Floor Tool Damage or Scrappage
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Page 13 A s s e t S m a r t ® SMART asset management software Potential Integration Points (cont’d) Potential Outbound Integration Points (into ERP from Asset System) Current Asset Location, Organization, Status and User Departmental Charges (Calibration, Repair, Mods) Material Orders or Re-Orders Bidirectional Special Tooling Fabrication & Cost Details Capital Asset Disposition
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Page 14 A s s e t S m a r t ® SMART asset management software Integration Techniques Vendor-Provided Tools – Web Services and other API’s – Canned Interfaces / Adapters – Import Tools for Excel, etc. Database Views, Stored Procedures or Triggers Conventional Custom Programming 14
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Page 15 A s s e t S m a r t ® SMART asset management software Reporting Three Basic Flavors: 1)Built-In Application Queries or Standard Forms/Reports Examples: Asset Lists by Status, Site, Contract, DD1149 Form 2)Custom Canned Reports In-House Management Reports Produced on a Regular Schedule 3)Ad-Hoc Queries/Reports Unpredictable “One-Off” Queries
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Page 16 A s s e t S m a r t ® SMART asset management software Authentication (ID & Password) Functional Access (Security Roles) Data Access (Partition / Global) Data Access (Record Level) Business Logic (Approval Authority) Audit Trail (Transaction Register) Security Typical Application Security Layers
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Page 17 A s s e t S m a r t ® SMART asset management software Performance Performance is Critical to User Acceptance of the System Involve IT Staff and Vendors Early Set Target Response Times Collect Data During Testing Cycles
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Page 18 A s s e t S m a r t ® SMART asset management software Testing Develop Written Test Plans from your Business Process Maps Also Ensure that all Interfaces and Security Controls are Tested Use Realistic Data Values and Volumes Configure Test Environment as Similar as Possible to Production
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Page 19 A s s e t S m a r t ® SMART asset management software Training and Change Management Do not Underestimate Human Inertia! Change Management is Crucial “It must be considered that there is nothing more difficult to carry out nor more doubtful of success nor more dangerous to handle than to initiate a new order of things” - Machiavelli
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Page 20 A s s e t S m a r t ® SMART asset management software Common Risks and Pitfalls Lack of Strong Management Support Imbalance in Goals vs. Available Resources Perpetuation of Outdated Processes Inadequate Testing Incomplete/Unclear Documentation
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Page 21 A s s e t S m a r t ® SMART asset management software Conclusion – Key Takeaways Set Realistic Goals and Timelines for the Project – Define Success at the Onset Rigorously Apply Project Management Principles – Who Will do What by When Re-Visit All Legacy Data and Processes – Always Question the Status Quo! Document, Document, Document!
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Page 22 A s s e t S m a r t ® SMART asset management software Q & A / OPEN DISCUSSION
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Page 23 A s s e t S m a r t ® SMART asset management software For Additional Information PMSC 2800 28 th Street Santa Monica, CA 90405 310.450.2566 www.assetsmart.com info@assetsmart.com
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