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Flevy Management Insights Case Study
Asset Management Advancement for Power & Utilities in North America

Fortune 500 companies typically bring on global consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture, or boutique consulting firms specializing in Enterprise Asset Management to thoroughly analyze their unique business challenges and competitive situations. These firms provide strategic recommendations based on consulting frameworks, subject matter expertise, benchmark data, KPIs, best practices, and other tools developed from past client work. We followed this management consulting approach for this case study.

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Consider this scenario: A firm within the power and utilities sector in North America is facing difficulties in managing its extensive portfolio of physical assets.

Despite a well-established market presence, the company is struggling to maintain operational efficiency and meet regulatory compliance due to outdated Enterprise Asset Management (EAM) systems. The organization's asset-related data is siloed, leading to suboptimal decision-making and increased maintenance costs.

Initial observations suggest that the organization's EAM woes could be rooted in legacy technology and a lack of integrated asset information systems. Another hypothesis might point to insufficient training and adoption of best practices among staff, which contributes to the underutilization of existing EAM solutions. Lastly, a fragmented approach to asset lifecycle management could be hampering the organization's ability to optimize asset performance and control costs.

Strategic Analysis and Execution Methodology

This organization's asset management challenges can be addressed through a structured five-phase consulting methodology, which ensures thorough analysis and effective implementation. Adopting this proven process facilitates a seamless transformation journey, leading to enhanced asset reliability and cost savings.

  1. Assessment and Planning: We evaluate the current EAM processes, identifying gaps in technology and workflow. Key questions include: How are current assets managed, and what are the pain points? Activities involve stakeholder interviews and a review of the existing asset database.
  2. Strategy Development: Based on the initial assessment, we define a tailored EAM strategy. We determine what the future state should look like and draft a roadmap to achieve it, ensuring alignment with the company's overall business objectives.
  3. Process Re-engineering: In this phase, we redesign processes to improve asset lifecycle management. We focus on the introduction of best practices and efficient workflows that align with the new EAM strategy.
  4. Technology Selection and Implementation: We aid in selecting and deploying a modern EAM system that supports the re-engineered processes. This phase involves vendor selection, system customization, and user training to ensure adoption.
  5. Performance Monitoring and Continuous Improvement: Finally, we establish metrics to monitor the performance of the new EAM system and processes. This phase is about creating a culture of continuous improvement, ensuring the organization stays at the forefront of asset management practices.

Learn more about Continuous Improvement Best Practices

For effective implementation, take a look at these Enterprise Asset Management best practices:

Enterprise Asset Management (EAM) Strategy (24-slide PowerPoint deck)
ISO 55001:2014 (Asset Management) Awareness Training (60-slide PowerPoint deck)
Enterprise Asset Management (EAM) Implementation (27-slide PowerPoint deck)
Asset Management - Implementation Toolkit (Excel workbook and supporting ZIP)
ISO 19770 - Implementation Toolkit (Excel workbook and supporting ZIP)
View additional Enterprise Asset Management best practices

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Enterprise Asset Management Implementation Challenges & Considerations

Executives might wonder about the integration of new technology with existing systems. A seamless technology integration is critical, and we ensure that the new EAM solution interfaces effectively with the organization's current IT infrastructure to provide a unified view of assets.

The transformation is expected to yield a reduction in maintenance costs by up to 20%, improved regulatory compliance, and a 15% increase in asset uptime. These outcomes are based on industry benchmarks and reflect the potential of a well-executed EAM strategy.

Challenges such as resistance to change and system adoption can be mitigated through comprehensive training programs and change management initiatives, ensuring that the workforce is fully equipped to leverage the new EAM system.

Learn more about Change Management

Enterprise Asset Management KPIs

KPIS are crucial throughout the implementation process. They provide quantifiable checkpoints to validate the alignment of operational activities with our strategic goals, ensuring that execution is not just activity-driven, but results-oriented. Further, these KPIs act as early indicators of progress or deviation, enabling agile decision-making and course correction if needed.

What gets measured gets managed.
     – Peter Drucker

  • Asset Uptime: Indicates the availability and reliability of assets.
  • Maintenance Costs: Tracks the efficiency of maintenance activities and cost savings.
  • Regulatory Compliance Rate: Measures adherence to industry and government regulations.
  • Return on Assets (ROA): Assesses the profitability and asset utilization effectiveness.

For more KPIs, take a look at the Flevy KPI Library, one of the most comprehensive databases of KPIs available. Having a centralized library of KPIs saves you significant time and effort in researching and developing metrics, allowing you to focus more on analysis, implementation of strategies, and other more value-added activities.

Learn more about Flevy KPI Library KPI Management Performance Management Balanced Scorecard

Implementation Insights

Throughout the implementation, it became evident that organizational culture plays a pivotal role in the successful adoption of new EAM systems. Firms that foster a culture of innovation and continuous improvement typically see a smoother transition and quicker realization of benefits. According to a Gartner study, companies with a strong digital culture are 3 times more likely to achieve successful digital transformations, including EAM initiatives.

Learn more about Digital Transformation Organizational Culture

Enterprise Asset Management Deliverables

  • Asset Management Strategic Plan (PowerPoint)
  • EAM System Selection Report (Word)
  • Process Optimization Framework (Excel)
  • Change Management Playbook (PowerPoint)
  • Performance Dashboard Template (Excel)

Explore more Enterprise Asset Management deliverables

Enterprise Asset Management Best Practices

To improve the effectiveness of implementation, we can leverage best practice documents in Enterprise Asset Management. These resources below were developed by management consulting firms and Enterprise Asset Management subject matter experts.

Enterprise Asset Management Case Studies

One notable case study involves a leading European utility company that implemented a comprehensive EAM solution. Post-implementation, the organization reported a 30% increase in operational efficiency and a significant reduction in environmental incidents, highlighting the impact of effective asset management.

Another case from the manufacturing sector demonstrated that by integrating IoT technology with EAM systems, a company achieved real-time asset monitoring, which led to a 25% reduction in unplanned downtime and a 20% decrease in maintenance costs.

Explore additional related case studies

Integration with Existing Operations

Efficient integration of a new EAM system within existing operations is paramount. The key is to leverage the strengths of current processes while phasing in new functionalities. A phased approach minimizes disruption and allows for iterative learning. According to McKinsey, companies that take a sequential approach to integration see a 30% higher success rate in technology adoption.

Moreover, it's essential to establish a cross-functional team that oversees the integration. This team should include IT, operations, and field service representatives to ensure that the EAM system is aligned with all facets of the business. A successful integration is one that enhances, rather than replaces, the core competencies of the existing operations.