© 2001 Net Results Inc. Return on Investment Measuring the MAXIMO ® ROI.

© 2001 Net Results Inc.

Return on Investment

Measuring the MAXIMOMeasuring the MAXIMO®® ROI ROI


Net Results: Doing Business In

• Africa

• Europe

• Middle East

• North America

• South America

• United Kingdom

• Africa

• Europe

• Middle East

• North America

• South America

• United Kingdom


Net Results: Doing Business With

• Aerospace• Automotive• Consumer Products• Electric, Water and Gas Utilities• Facilities Management• Food & Beverage• Government & Military • Industrial Distribution• Oil and Gas Production and Refining• Specialty Chemical• Telecommunications

• Aerospace• Automotive• Consumer Products• Electric, Water and Gas Utilities• Facilities Management• Food & Beverage• Government & Military • Industrial Distribution• Oil and Gas Production and Refining• Specialty Chemical• Telecommunications


Why Invest in Information Technology

• Better InformationBetter Information……improved decision makingimproved decision making

• Improved ServiceImproved Service……process information faster - 24x7process information faster - 24x7

• Increased ProductivityIncreased Productivity……do more in less timedo more in less time

• Competitive AdvantageCompetitive Advantage……our customers prefer us!our customers prefer us!


Why MAXIMO®?

• Why did you or would you buy MAXIMOWhy did you or would you buy MAXIMO®®??• Here is what we hear?Here is what we hear?

– We need a systemWe need a system– Needed to issue and track work ordersNeeded to issue and track work orders– We don’t know what we are spending and We don’t know what we are spending and

where we are spending itwhere we are spending it– Wanted to replace our old systemWanted to replace our old system– Can’t get any support from IT on our legacy Can’t get any support from IT on our legacy

systemsystem– What do you mean… What do you mean… “Why MAXIMO“Why MAXIMO®®?”?”


Ultimately what are we trying to do?

• Revenue Revenue

• Costs Costs • Risk Risk


MAXIMO® Impact Areas

• Salable Capacity Salable Capacity RevenueRevenue• Labor Labor CostsCosts• Materials Materials CostsCosts• Asset Life Asset Life CostsCosts• Risk Risk Revenue & Revenue &

CostsCosts• Opportunity CostsOpportunity Costs Revenue & Revenue &

CostsCosts


MAXIMO Impact on Operating Statements

Operating StatementsOperating Statements

Strategic MRO “Big Six”Strategic MRO “Big Six” Income StatementIncome Statement Balance SheetBalance Sheet Cash Flow StatementCash Flow Statement

1.1. Asset LifeAsset Life ±Operating ExpenseOperating Expense0Property, Plant, and EquipmentProperty, Plant, and Equipment0Accumulated DepreciationAccumulated Depreciation

0Depreciation Depreciation CAPEXCAPEX

2.2. Saleable Saleable CapacityCapacity

+Incremental EBITIncremental EBIT+Accounts ReceivableAccounts Receivable+Accounts PayableAccounts Payable+InventoryInventory

+Accounts ReceivableAccounts Receivable+Accounts PayableAccounts Payable

3.3. LaborLaborOperating ExpenseOperating Expense+Incremental EBITIncremental EBIT

+CASHCASH +Net IncomeNet Income

4.4. MaterialsMaterialsOperating ExpenseOperating Expense+Incremental EBITIncremental EBIT

+CASHCASHInventoryInventory

+Net IncomeNet IncomeInventoryInventory

5.5. RiskRiskOperating ExpenseOperating Expense+Incremental EBITIncremental EBIT

+CASHCASH Net IncomeNet Income

6.6. Opportunity Opportunity CostsCosts

+Other IncomeOther Income +CASHCASH

Accounts PayableAccounts PayableShort Term DebtShort Term DebtLong Term BorrowingLong Term Borrowing+Cash DividendsCash Dividends

(+) Increase, (–) Decrease, (±) Depends, (0) No Definable Effect


Wisdom

• Knowledge of your current practices is Knowledge of your current practices is GOODGOOD..

• Knowledge of Knowledge of WhatWhat you should or could you should or could be doing is be doing is GREATGREAT..

• Knowledge of Knowledge of HowHow to do to do WhatWhat you need you need to do is to do is VALUABLEVALUABLE..

• DoingDoing it is it is PRICELESSPRICELESS!!


More Wisdom

• Knowing how much you spent last year Knowing how much you spent last year is is GOODGOOD..

• Knowing what you are going to spend Knowing what you are going to spend next year is next year is GREATGREAT..

• Knowing the cost drivers is Knowing the cost drivers is VALUABLE.VALUABLE.

• Positively impacting the cost drivers is Positively impacting the cost drivers is PRICELESSPRICELESS!!


Next Year… I will need

• _____ electricians. _____ electricians.

• to conduct _____ amount of planned to conduct _____ amount of planned maintenance activitiesmaintenance activities

• _____ money for MRO materials._____ money for MRO materials.

• _____ money for maintenance services._____ money for maintenance services.

• to replace _____ assets because of to replace _____ assets because of their projected cost of operations.their projected cost of operations.


Asset ManagementAsset Management• I will need 8 electricians because of I will need 8 electricians because of

expected asset demandsexpected asset demands• I will conduct 7,500 planned I will conduct 7,500 planned

maintenance tasks based on maintenance tasks based on inspection results and analysis.inspection results and analysis.

• I will spend $1.8 million based on I will spend $1.8 million based on MRO material consumption pattern, MRO material consumption pattern, and inventory objectives.and inventory objectives.

• I will spend $500,000 based on smart I will spend $500,000 based on smart planning and contractor management planning and contractor management strategiesstrategies

• I will spend 8% of my book asset I will spend 8% of my book asset value based or $1.6 million based on value based or $1.6 million based on improved asset managementimproved asset management

Activity ManagementActivity Management• I will need 10 electricians because I I will need 10 electricians because I

have 10 on staff.have 10 on staff.• I will conduct 10,000 planned I will conduct 10,000 planned

maintenance tasks according to my maintenance tasks according to my schedule.schedule.

• I will spend $2.5 million on MRO I will spend $2.5 million on MRO supplies based on last year’s buying supplies based on last year’s buying practices and results. practices and results.

• I will spend $750,000 in outside I will spend $750,000 in outside maintenance services per a general maintenance services per a general service agreement.service agreement.

• I will spend 10% of my book asset I will spend 10% of my book asset value or $2 Million in capital value or $2 Million in capital improvements.improvements.

The Strategic MRO Imperative

Activity v. Asset Management

$1,600,000

$250,000

$150,000

$700,000

$250,000

$250,000


MRO Software’s Value Impact Assessment

• The VIA uses a systematic approach to The VIA uses a systematic approach to extracting the value proposition of extracting the value proposition of MAXIMOMAXIMO®® and Associated Technology. and Associated Technology.– Discovery MeetingDiscovery Meeting

– Pre-Assessment ActivitiesPre-Assessment Activities

– On-site AssessmentOn-site Assessment

– Report Generation and PresentationReport Generation and Presentation


Demand Supply Compression™ (DSC) Goal “To achieve the “absolute economic advantage” in the marketplace.”

$0

Tot

al C

ost

of O

pera

tions

time

The DSC Goal is achieved by The DSC Goal is achieved by an intense focus on making an intense focus on making progress towards theprogress towards the Future Perfect ObjectivesFuture Perfect Objectives

Only Produce Exactly What is Consumed in the Market

Only Invest in Assets Necessary to Produce Exactly What is Consumed in the Market

Only Invest in Assets that Never Fail over their Useful Life

Achieve the Lowest Total Cost of Ownership (TCO) for all Assets

Only invest in resources that enable the first four future perfect objectives

Current

State

Better

Practice

Best

Practice

$$$

$$

$

Future Perfect

ProgressRegress

Spinningour

Wheels

Continuous Continuous ImprovementImprovement

Technology Technology InterventionsInterventions


Value Impact Assessment

• The VIA follows the Strategic MRO, The VIA follows the Strategic MRO, powered by DSC™ Guiding Principles.powered by DSC™ Guiding Principles.– Define the Value StreamDefine the Value Stream

– Connect the Asset to the Value StreamConnect the Asset to the Value Stream

– Connect Demand to the AssetConnect Demand to the Asset

– Connect Supply to Demand Connect Supply to Demand

– Compress Demand Supply ConnectionsCompress Demand Supply Connections


Define the Value Stream

U N I T Of V A L U E

• Your company creates value. For example:Your company creates value. For example:– Water CompanyWater Company– Automotive ManufacturerAutomotive Manufacturer– Mobile TelecommunicationsMobile Telecommunications– Military Base OperationsMilitary Base Operations– Truck Load Freight CompanyTruck Load Freight Company– Chemical CompanyChemical Company

• Your MAXIMOYour MAXIMO®® and Associated Technology Investments and Associated Technology Investments must advance the value creation of your organization. must advance the value creation of your organization. Period!Period!


• Plan• Design• Build• Acquire• Install• Use• Maintain &

Repair• Overhaul• Dispose

Connect the Asset to the Value Stream




• Asset Criticality Classes

• Asset Profiles• Asset Portfolio

Management• Tracking Indirect

Costs per Asset• Labor• Material• Special

Equipment• Integrated to

Accounting systems enables full financial planning

Asset Lifecycle Types of Assets MAXIMO® Value


Connect the Asset to the Value Stream




Asset Lifecycle

• Asset Performance Forecasting and Tracking

• Availability Analysis• Drives Supply

Response• Overall Equipment

Effectiveness• Supports TPM, RCM,

ZBM initiatives

• Early Equipment Management

Types of Assets MAXIMO® Value


MAXIMO ROI

• In Connecting the Asset to the Value

Stream we start by estimating the Total

Cost of Ownership for an Asset.• Knowledge of TCO and Availability

Requirements is used to support target

costing programs. • The goal is to drive down possession

costs.• 10% TCO reduction for the asset in

question.• Lots of Assets to go!Lots of Assets to go!

Ac

Pu

Po

Di

Ac

Pu

Po

Di

Purchase Price

Acquisition

Possession

Disposal

TC

O $

A to VSVS


Connect Demand to the Asset




Asset Lifecycle

• Failure Modes:• Safety/Env.• Availability• Quality• Performance • Cost

• MTTR Expectations v. Actual

• Reliability Analysis• Real Time FMEA

Asset Demands MAXIMO® Value

• All Failures Not Equal

• Asset Availability Requirements

• Frequency of Demand• Sporadic vs.

Chronic


Connect Demand to the Asset




Asset Lifecycle

• Demand Criticality Classification (ranking System)

• Real Time Performance Tracking• CBM• SCADA, DCS• OEE

Asset Demands MAXIMO® Value

• Proactive Demand vs. Reactive Demand

• Goal is to Extend Demand Lead Time for PM and CM


MAXIMO ROI

• In connecting demand to

the asset we attempt to

increase Reliability to

increase Availability

(capacity), resulting in

increased Earnings

Potential• Increased Reliability

reduces cost of

maintenance labor and

MRO supplies.

Ac

Pu

Po

Di

Ac

Pu

Po

Di

Purchase Price

Acquisition

Possession

Disposal

TC

O $

A to VSVS

Ac

Po

Di

D to A

EaEarnings

Pu


Connect Supply to Demand - Labor




Asset Lifecycle

• Matching Labor with Demand• Location

Hierarchies• Crew Locations• Repair Shops

• Matching Labor with Demand• Job Plans• Craft Designations

Supply - Labor MAXIMO® Value

• Labor Positioning• To Asset• To Labor

• Labor Skills• Multi-skilling• Autonomous

Maintenance


Connect Supply to Demand - Labor




Asset Lifecycle

• Mobile Communications

• Smart Planning• Asset Criticality• Demand Criticality• Geographic Density• Skill Density• Opportunity

Maintenance

• Contractor Management

Supply - Labor MAXIMO® Value

• Labor Communications• Real time

• Prioritization of Work

• Contractor Services


Connect Supply to Demand - Materials




Asset Lifecycle

• Warranty, Repair and rotating equipment tracking

• Inventory Availability Analysis

• Consumption Based ROP, ROQ

Supply - Materials MAXIMO® Value

• Consumables, Spares, and Repairs Strategy

• Stock v. Non-Stock

• Inventory Optimization






Asset Lifecycle

• Stocking Locations and Materials tied to Asset and availability requirements

• IT Asset Management

• Three way match initiates AP transaction

Supply - Materials MAXIMO Value

• Smart Storeroom

• IT Assets

• Smart Payment






Asset Lifecycle

• Spend Analysis data through Asset Catalog

• Online Commerce Services

• Catalog Management

• Workflow

Supply - Materials MAXIMO® Value

• Strategic Sourcing

• Supply Transparency

• Order Fulfillment

• Decentralized Sourcing


Connect Supply to Demand




Asset Lifecycle

• Asset Portfolio data• Replacement

value• Indirect Costs• Safety/

Environmental findings

• OEE Tracking

• Connect to asset register in accounting system

Asset Value MAXIMO® Value

• Condition Assessment

• Asset Disposal


MAXIMO ROI

• In connecting supply to

demand we attempt to

reduce the TCO components

associated with Labor and

Materials• Increased Earnings through

improved availability• Reduced labor through

improved scheduling• Material costs reduction

through standardization,

price reductions, reduction in

consumption, reduction in

minimum stock levelsAc

Pu

Po

Di

Ac

Pu

Po

Di

TC

O $

A to VSVS

Ac

Pu

Po

Di

D to A

Ea

Ac

Pu

Po

Di

S to D

EaEarnings

Disposal

Possession

Purchase Price

Acquisition


Compress Demand Supply Connections




Asset Lifecycle

• Asset Lifecycle Management

• Work Management• MRO Supply Chain

Management

• Better Information• Improved Service• Increased

Productivity• Competitive

Advantage

DSC Guiding Principles

MAXIMO Value

• Define the Value Stream

• Connect Assets to the Value Stream

• Connect Demand to the Asset

• Connect Supply to Demand – Labor & Materials

• Compress Demand Supply Connections


Materials LaborSalable Capacity

CAPEX

OpportunityCosts

OpportunityCosts

OpportunityCosts

1 2 3 5

RISK

OpportunityCosts

4

High Level Practical Paths Forward

6 6 6 6


Materials

Asset Reliability

1

DemandResponse

2

• Reliability Centered Maintenance• Total Productive Maintenance• Design for Serviceability• Zero Breakdown Maintenance

• Strategic Sourcing• Line of Sight Procurement• E-procurement• E-catalogs

Compression Strategies Value Driver Value Impact

ProcurementPractices

4

•Demand Driven Maintenance• Asset Criticality Classifications• Demand Criticality Classifications• Demand Response Strategies• Smart Planning and Scheduling

Storeroom & Inventory Management

3• Smart Storeroom• Consumption Driven Inventory Management• Consumable, Spare, and Repair Designations• Asset Based Inventory Purging

Develop Detailed PPF - Materials


Common Findings

• Salable Capacity / Mission CapacitySalable Capacity / Mission Capacity– 1% - 5% increase in Salable Capacity if preventable downtime would 1% - 5% increase in Salable Capacity if preventable downtime would

have occurred.have occurred.• LaborLabor

– 10-20% reduction in maintenance labor straight time and overtime 10-20% reduction in maintenance labor straight time and overtime through improved scheduling techniques, failure reduction, through improved scheduling techniques, failure reduction, integration with materials planning, and a formal contractor integration with materials planning, and a formal contractor management process. management process.

– 5%-50% reduction in production labor overtime due to improved 5%-50% reduction in production labor overtime due to improved maintenance practices.maintenance practices.

• MaterialsMaterials– 25% to 75% reduction in inventory investment through improved 25% to 75% reduction in inventory investment through improved

stocking and replenishment practices.stocking and replenishment practices.– 5% to 50% reduction in production related scrap and rework due to 5% to 50% reduction in production related scrap and rework due to

improved maintenance practices.improved maintenance practices.


Reasons Not to Trust ROI Results

• Based on Industry Benchmarks versus true understanding Based on Industry Benchmarks versus true understanding of existing processes.of existing processes.

• Assessor not grounded in realityAssessor not grounded in reality– engineering practicesengineering practices– maintenance practicesmaintenance practices– purchasing practicespurchasing practices– distribution practicesdistribution practices

• Lack of understanding of better and best practices and their Lack of understanding of better and best practices and their applicability to your operations.applicability to your operations.

• Unclear Adoption Strategy and RatesUnclear Adoption Strategy and Rates• Slicing and dicing People without understanding true nature Slicing and dicing People without understanding true nature

of their effortsof their efforts• Unable to distinguish role of technology from process Unable to distinguish role of technology from process

changes or leadership decisions.changes or leadership decisions.


KitBa CAB Inc.


KitBa CAB’s Value Stream

• The KitBa CAB plant is a stock production The KitBa CAB plant is a stock production operation with 2001 sales estimated at $60 million. operation with 2001 sales estimated at $60 million.

• The current product lifecycle is estimated at 10 The current product lifecycle is estimated at 10 years, before a significant model change is years, before a significant model change is experienced. experienced.

• All product sales are through distributors, thus All product sales are through distributors, thus KitBa CAB manufactures and ships to distributor KitBa CAB manufactures and ships to distributor stock. stock.

• The current distribution channel structure does not The current distribution channel structure does not require the KitBa CAB operations to produce and require the KitBa CAB operations to produce and deliver stock cabinets to specific consumer orders. deliver stock cabinets to specific consumer orders.


KitBa CAB’s Stated Objectives

• Want to standardize asset management strategies and practicesWant to standardize asset management strategies and practices

• Want to develop a KitBa CAB Asset Management System that is deployable and Want to develop a KitBa CAB Asset Management System that is deployable and certifiablecertifiable

• Want to standardize on supporting technology, i.e., CMMS – EAM? Want to standardize on supporting technology, i.e., CMMS – EAM?

• Implement Autonomous Maintenance where it makes senseImplement Autonomous Maintenance where it makes sense

• Integrate Asset Management Strategy with Lean/6 Sigma effortsIntegrate Asset Management Strategy with Lean/6 Sigma efforts

• Share maintenance best practicesShare maintenance best practices

• Lower cost of operations in response to market price pressuresLower cost of operations in response to market price pressures

• Improve manufacturing performanceImprove manufacturing performance

• Have spent considerable money on new assets want to do a better job at Have spent considerable money on new assets want to do a better job at maintaining them. maintaining them.

• Want to leverage MRO spendWant to leverage MRO spend

• Want to eventually connect to supply chain using e-commerce technologyWant to eventually connect to supply chain using e-commerce technology


What to Do? Practical Path Forward

• MAXIMOMAXIMO®® technology uniquely aligns with technology uniquely aligns with Lean Enterprise and Six Sigma Initiatives.Lean Enterprise and Six Sigma Initiatives.– Guiding Principles Guiding Principles – Future Perfect ObjectivesFuture Perfect Objectives

• Lead Time ReductionLead Time Reduction• Elimination of Waste and Non-Value Adding activitiesElimination of Waste and Non-Value Adding activities• Cost ReductionCost Reduction• Quality ImprovementQuality Improvement• Variation Reduction – Asset PerformanceVariation Reduction – Asset Performance

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2.5.1 Alignment ofStrategic Asset

Management withLean/Six Sigma

Activities.


KitBa CAB Plant, Property, & Equipment

AssetAsset CostCost Accumulated DepreciationAccumulated Depreciation Book ValueBook Value

Property Property $352,096$352,096 $106,628$106,628 $245,468$245,468

PlantPlant $3,990,072$3,990,072 $922,708$922,708 $3,067,364$3,067,364

EquipmentEquipment $13,226,221$13,226,221 $6,876,089$6,876,089 $6,350,132$6,350,132

Computers, etc.Computers, etc. $935,045$935,045 $403,314$403,314 $531,731$531,731

TotalTotal $18,503,434$18,503,434 $8,308,739$8,308,739 $10,194,695$10,194,695

The fixed asset turnover ratio, based on an estimated $60 million in sales, is $60,000,000/$10,194,694 = 5.88. The industry ratio for NAICS code 337 Furniture & Related Product Mfg is 3.69. This would suggest that KitBa CAB is producing value using less invested cost in its assets, and/or that its assets are older than the average of the industry.


KitBa CAB Asset Cost Tracking

Repair Cost Per Cabinet (FY01 & FY 02)

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

Month

01 Act $0.521 $0.439 $0.370 $0.515 $0.419 $0.223 $0.323 $0.333 $0.305 $0.380 $0.312 $1.018

02 Tgt-mo $0.362 $0.417 $0.359 $0.385 $0.365 $0.336 $0.372 $0.362 $0.332 $0.353 $0.353 $0.344

02 Act $0.224 $0.271 $0.464 $0.328 $0.454 $0.375 $0.438 $0.570 $0.398 $0.528 $0.602

J an Feb Mar Apr May J un J ul Aug Sep Oct Nov Dec


KitBa CAB - Practical Path Forward

• Defining Critical Assets Defining Critical Assets

• Managing Asset Profiles and PortfoliosManaging Asset Profiles and Portfolios

• Applying Asset StandardsApplying Asset Standards

• Doing it right the first time, every time!Doing it right the first time, every time!

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3.5.1Asset CriticalityClassification

3.5.2Asset PortfolioManagement

3.5.3Asset

ConfigurationManagement

3.5.4Asset

Standardization

3.5.5Installed Asset

Profiles

3.5.6OEM, EPC, and

Plant EngineeringCollaboration


KitBa CAB’s Equipment Downtime & WO Statistics

Plant 4 - Component PlantPlant 4 - Component Plant

Equip. #Equip. # Equipment NameEquipment Name Downtime Downtime Hrs.Hrs.

04-04-5768057680

Moldow dust collectorMoldow dust collector 18.518.5

04-04-5769257692

Conv. finish line - Conv. finish line - generalgeneral

11

04-04-5769357693

Conv. finish line ovenConv. finish line oven 00

04-04-5769457694

Conv. finish line Conv. finish line conveyorconveyor

1.51.5

04-04-5813458134

Dodds mortiserDodds mortiser 13.2513.25

04-04-5820658206

52" Timesaver - door 52" Timesaver - door lineline

31.2531.25

04-04-7720077200

E'static finish line - E'static finish line - generalgeneral

10.7510.75

04-04-9811598115

Progressive tenoner Progressive tenoner #2#2

19.7519.75

04-04-9811698116

Torit dust collector #4Torit dust collector #4 2.752.75

04-04-9811798117

Northwood routerNorthwood router 1111

04-04-9840098400

New sticklineNew stickline 12.7512.75

04-04-9848498484

Bacci mortiser #3Bacci mortiser #3 24.2524.25

04-04-9848698486

Costa panel sanderCosta panel sander 16.516.5

04-04-9848798487

Delle Vedove #3Delle Vedove #3 11.2511.25

807.45807.45

#2 Torwegge Double End Tenoner#2 Torwegge Double End Tenoner

Work Order TypeWork Order Type AmountAmount

EMER CountEMER Count 1717

MISC CountMISC Count 22

PM CountPM Count 1919

PROJECT CountPROJECT Count 66

REPAIR CountREPAIR Count 3030

SCHEDULED CountSCHEDULED Count 44

TotalTotal 7878

#2 Torwegge Double End Tenoner#2 Torwegge Double End Tenoner

Work Order PriorityWork Order Priority AmountAmount

Priority 1Priority 1 6363



TotalTotal 7878

Priority Priority

Total AllTotal All 11 22 33

EMER CountEMER Count 1717 1717 00 00

MISC CountMISC Count 22 22 00 00

PM CountPM Count 1919 1212 11 66

PROJECT CountPROJECT Count 66 55 00 11

REPAIR CountREPAIR Count 3030 2424 55 11

SCHEDULED CountSCHEDULED Count 44 33 11 00

TotalTotal 7878 6363 77 88

Percentage of TotalPercentage of Total 80.8%80.8% 9.0%9.0% 10.3%10.3%


KitBa CAB’s Practical Path Forward

• Demand Criticality ClassificationDemand Criticality Classification

• Failure Codes and Diagnostic InformationFailure Codes and Diagnostic Information

• Location and Asset-based Failure AnalysisLocation and Asset-based Failure Analysis

• TPM, ZBM, RCMTPM, ZBM, RCM

• Formal Asset Condition Assessment ProcessFormal Asset Condition Assessment Process

• Early Equipment ManagementEarly Equipment Management

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4.5.1TPM, ZBM, RCM

4.5.2Failure Codes and

DiagnosticInformation

4.5.3Formal Asset

ConditionAssessment

Process

4.5.4Early Equipment

ManagementProgram

4.5.5Demand Criticality

Classification

4.5.6Location andAsset-based

Failure Analysis


KitBa Cab Work Order Process & Results

• In FY02, KitBa CAB In FY02, KitBa CAB conducted 2,911 conducted 2,911 scheduled work scheduled work orders, of which orders, of which 1,737 were 1,737 were completed on time; completed on time; for a performance for a performance level of 59.7%. level of 59.7%.

Work Order Process: KitBa CAB Operations

Wor

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Data EntryClerk

PurchasingArea

SupervisorMaintenanceSupervisor

MaintenanceTechnician

StoreroomClerk

Employee

RequestMaintenance Support

CommunicatesMaintenance need via

Radio

ReceivesMaintenance Request

Inputsrequest

into MP2

AssignsPriority

and Tech

Print WO

Receive WO

ConductDiagnostic

Activity

Need Materials Pull MaterialsStock

Create MaterialRequest

Process MaterialRequest

Create PurchaseOrder

Non/Out of Stock

Materials ArriveComplete Work

Complete WOInputCompleted

WO Info

ApprovePO

Send PO

Source Materials


KitBa CAB’s Practical Path Forward

• Proactive v. Reactive Strategy ManagementProactive v. Reactive Strategy Management

• Smart Planning and SchedulingSmart Planning and Scheduling

• Work Order AnalysisWork Order Analysis

• Mobile TechnologyMobile Technology

• Maintenance Practice Compliance Maintenance Practice Compliance

• Technician Skill DevelopmentTechnician Skill Development

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5.5.3 TechnicianSkill Development

5.5.1 Proactive v.Reactive

MaintenanceStrategies

5.5.2 MaintenancePractices

Compliance

5.5.4 SmartPlanning andScheduling

5.5.5 MobileTechnology

5.5.6 Work OrderAnalysis


KitBa CAB: Materials


KitBa Cab’s Practical Path Forward

• Strategic SourcingStrategic Sourcing

• Smart Storeroom ManagementSmart Storeroom Management

• Smart Inventory ManagementSmart Inventory Management

• Requisition & Purchase Order ProcessRequisition & Purchase Order Process

• Warranty TrackingWarranty Tracking

• Payment ProcessPayment Process

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6.5.1 MRO SupplyChain

Management

6.5.4 PaymentProcess

6.5.3 Requisition &Purchase Order

Process

6.5.6 SmartStoreroom

Management

6.5.2 WarrantyTracking and Cost

Recovery

6.5.5 SmartInventory

Management


Practical Paths Forward – KitBa CAB

KitBa CAB: Strategic MRO powered by DSC™ Practical Path Forward

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Activities.



3.5.3Asset


3.5.4Asset

Standardization


Profiles

3.5.6OEM, EPC, and


4.5.1TPM, ZBM, RCM



4.5.3Formal Asset

ConditionAssessment

Process


ManagementProgram


Classification


Failure Analysis





Compliance





Management



Process


Management


Recovery


Management


PPF Phases for KitBa CAB

KitBa CAB: Strategic MRO powered by DSC™ Practical Path Forward

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De

fine

the

Va

lue

Str

eam






Management


3.5.6OEM, EPC, and





Activities.


Recovery

3.5.4Asset

Standardization

4.5.1TPM, ZBM, RCM




Management


3.5.3Asset



Failure Analysis


Compliance


ManagementProgram


4.5.3Formal Asset

ConditionAssessment

Process


Management


Process


Profiles


Classification


Phase 1

Pha

se 2

Pha

se 4

Phase 3 Phase 5


And the results are!

Sec. DescriptionSavings Estimates

TotalYear 1 Year 2 Year 3

5.5.4 Smart Planning and Scheduling $0 $200,565 $601,695 $802,260

6.5.1 MRO Supply Chain Management $115,965 $413,295 $413,295 $942,555

6.5.5 Smart Inventory Management $162,350 $626,675 $907,505 $1,695,530

Total $278,315 $1,240,535 $1,922,495 $3,441,345

Five Plant MAXIMO® Proposal


SAMMSAMMStrategic Asset Management MethodologiesStrategic Asset Management Methodologies

ServicesServices

MRO Software


Strategic MRO, powered by DSC™

Contact your MRO Software Contact your MRO Software Service Provider orService Provider or

Contact us at – Contact us at – www.netresultsgroup.comwww.netresultsgroup.com

Email: Email: [email protected]@netresultsgroup.com

[email protected]@netresultsgroup.com

Phone: Phone: +1 502.228.5519+1 502.228.5519

www.productivityinc.com

© 2001 Net Results Inc. Return on Investment Measuring the MAXIMO ® ROI.

Documents

net results

cash net income

inspection results

net income inventory

maximo roi slide

planned maintenance

cash inventory

mro materials