erp versus cmms[1]

8/6/2019 Erp Versus Cmms[1]

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2007 Shire Systems Limited

ERP Asset Management

systems versus best-of-breed CMMS


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Im telling you,youll use the

ERP system!

Its crap formaintenance! I

need my CMMS


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ERP versus CMMSERP versus CMMS

Needs

The Engineering Manager seeks toThe Engineering Manager seeks tostreamline maintenance activities,streamline maintenance activities,

automate admin tasks and accessautomate admin tasks and access

comprehensive decisioncomprehensive decision--making, problemmaking, problem

solving, planning and control informationsolving, planning and control information

Senior management seeks integration ofSenior management seeks integration of

the enterprise with consolidated financialthe enterprise with consolidated financialreportsreports


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CMMS is primarily a forwardCMMS is primarily a forward--looking, technicallooking, technicalmanagement system. It addresses practical, realmanagement system. It addresses practical, real--timetimemaintenance needs in the workplace. It is an essentialmaintenance needs in the workplace. It is an essential

tool, aiding increased effectiveness and efficiency of worktool, aiding increased effectiveness and efficiency of workmanagement and asset care. It drives more and bettermanagement and asset care. It drives more and betterquality output, regulatory compliance and optimalquality output, regulatory compliance and optimaloperating costsoperating costs

ERP is primarily a backward-looking, financialmanagement system. It is concerned with enterpriseis concerned with enterpriseoverview and business process integrationoverview and business process integration -- humanresources, payroll, inventory, financial management andsupplier collaboration

The advantages offered by the two systems are veryThe advantages offered by the two systems are verydifferent and, by and large, mutually exclusivedifferent and, by and large, mutually exclusive


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CMMS is primarily a forwardCMMS is primarily a forward--looking, technicallooking, technicalmanagement system. It addresses practical, realmanagement system. It addresses practical, real--timetimemaintenance needs in the workplace. It is an essentialmaintenance needs in the workplace. It is an essential

tool, aiding increased effectiveness and efficiency of worktool, aiding increased effectiveness and efficiency of workmanagement and asset care. It drives more and bettermanagement and asset care. It drives more and betterquality output, regulatory compliance and optimalquality output, regulatory compliance and optimaloperating costsoperating costs

ERP is primarily a backward-looking, financialmanagement system. It is concerned with enterpriseis concerned with enterpriseoverview and business process integrationoverview and business process integration -- humanresources, payroll, inventory, financial management andsupplier collaboration

The advantages offered by the two systems are veryThe advantages offered by the two systems are verydifferent and, by and large, mutually exclusivedifferent and, by and large, mutually exclusive

The net effect on the bottom line is what mattersThe net effect on the bottom line is what matters


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ERP advantagesERP advantages

There is ONE


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ERP advantagesERP advantages

There is ONE

Enterprise integration!


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ERP disadvantagesERP disadvantages

There are many


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There are many

Creates complexity and rigidityCreates complexity and rigidity

Clumsy usability impedes and slows down usersClumsy usability impedes and slows down users-- especially maintenance users doing criticallyespecially maintenance users doing criticallyvaluable work.valuable work. Google it and read about theirGoogle it and read about their

misery!misery!

Unsuitable for smaller companies whereUnsuitable for smaller companies whereflexibility, agility and slick administration are vitalflexibility, agility and slick administration are vital

to competitivenessto competitiveness

The initial and onThe initial and on--going cost of ownership isgoing cost of ownership ishugehuge

more


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Heavy customisation is necessary to shapeHeavy customisation is necessary to shapethem to an organisationthem to an organisations needss needsthe changesthe changesare usually complicated and costlyare usually complicated and costly

Upgrades are complexUpgrades are complexbecause the systembecause the systemsssource codesource codeoften has to be changedoften has to be changed

Consultants are usually involvedConsultants are usually involvedtheir fees aretheir fees arehigh and theyhigh and theyre notorious for not transferringre notorious for not transferringknowknow--how to their customershow to their customers

The aggregated costs in ERP systems disallowThe aggregated costs in ERP systems disallowproper detailed analyses of activities andproper detailed analyses of activities andevents. There is inadequate support forevents. There is inadequate support forcontinuous improvement initiativescontinuous improvement initiatives

more


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TheyTheyre not intuitive, easy to pick up, or userre not intuitive, easy to pick up, or user--

friendly. This demoralises users and fostersfriendly. This demoralises users and fosters

resentmentresentmentwhich can cripple the systemwhich can cripple the system

implementation and totally defeat its purposeimplementation and totally defeat its purpose

Additional resources have to be be invested inAdditional resources have to be be invested in

drivingdriving the systemthe systembecause an ERPbecause an ERPimplementation does not gather a naturalimplementation does not gather a natural

momentum of its ownmomentum of its own

And finally, despite their popularity, few ERPAnd finally, despite their popularity, few ERPimplementations have proven to add net value toimplementations have proven to add net value to

a businessa businesstheytheyve provided no positive ROI!ve provided no positive ROI!


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CMMS advantagesCMMS advantages

Simple and flexibleSimple and flexibleprovides users with practicalprovides users with practicalhelp and workflow discipline without stifling themhelp and workflow discipline without stifling them

Crafted to fit precisely with the way engineers wishCrafted to fit precisely with the way engineers wish

to workto work

Easy to use and intuitive for the casual userEasy to use and intuitive for the casual user

Can be straightforwardly configured to the needsCan be straightforwardly configured to the needsof individual organisations without changing theof individual organisations without changing thesource codesource codetheretheres nos noneed for expensiveneed for expensivecustomisationcustomisation

Low initial costLow initial costvery, very low with FrontLine andvery, very low with FrontLine andPiranaPirana

Low continuing cost of ownershipLow continuing cost of ownership


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Upgrades can be installed simply, without theUpgrades can be installed simply, without the

need for IT expertsneed for IT experts

The cost information available in CMMS is muchThe cost information available in CMMS is much

more detailed than in ERP systems. Thismore detailed than in ERP systems. This

enables powerful, forwardenables powerful, forward--looking whatlooking what--ifif

analyses and targeted continuous improvementanalyses and targeted continuous improvement

Morale amongst users is higher because theMorale amongst users is higher because the

system is both usersystem is both user--friendly and helpful to themfriendly and helpful to themin carrying out their daily tasksin carrying out their daily tasks


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Less management effort is needed to drive theLess management effort is needed to drive the

system because the users are not hostilesystem because the users are not hostiletheythey

are much less likely to look for ways ofare much less likely to look for ways ofminimising and defeating its useminimising and defeating its useand so becomeand so become

more aware of its benefits and supportive of itsmore aware of its benefits and supportive of its

purposepurpose


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Engineering managers ALWAYS chooseEngineering managers ALWAYS choose

bestbest--ofof--breed CMMS, whereas ERPbreed CMMS, whereas ERP

maintenance systemsmaintenance systems are imposed onare imposed onthem from on highthem from on highand against theirand against their

protestations and better judgementprotestations and better judgement


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Engineering managers ALWAYS chooseEngineering managers ALWAYS choose

bestbest--ofof--breed CMMS, whereas ERPbreed CMMS, whereas ERP

maintenance systemsmaintenance systems are imposed onare imposed onthem from on highthem from on highand against theirand against their

protestations and better judgementprotestations and better judgement


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Using ERP for maintenance is a bit like thisUsing ERP for maintenance is a bit like this


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Sir, I am aspecialist! For the

best outcome Ineed to work with

a scalpel


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Sir, I am aspecialist! For the

best outcome Ineed to work with

a scalpel

who is really bestplaced to decide?


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The ERP decisionThe ERP decision

Driving forces

Restraining forces

Enterpriseintegration

ERPkudos

Difficultto install

Frustratingto use

Highinitial cost

Highon-going cost

Difficultto upgrade

Decision


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Driving forces

Restraining forces


ERPkudos

Difficultto install

Frustratingto use

Highinitial cost

Highon-going cost

Difficultto upgrade

Decision

So and sos got one -so it must be good -so I want one too!


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Driving forces

Restraining forces


ERPkudos

Difficultto install

Frustratingto use

Highinitial cost

Highon-going cost

Difficultto upgrade

Decision


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Driving forces

Restraining forces


ERPkudos

Difficultto install

Frustratingto use

Highinitial cost

Highon-going cost

Difficultto upgrade

Hmm! Whats thebottom line ROI andROA for this ERP?


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Driving forces

Restraining forces


ERPkudos

Difficultto install

Frustratingto use

Highinitial cost

Highon-going cost

Difficultto upgrade

Hmm! Whats thebottom line ROI andROA for this ERP?

That may well be the rightquestion! But its necessary to seek

out and weigh all opinion to ensurefantasy doesnt prevail over fact


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Driving forces

Restraining forces


ERPkudos

Difficultto install

Frustratingto use

Highinitial cost

Highon-going cost

Difficultto upgrade

From where Imstanding, the

choice is obvious!


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Driving forces

Restraining forces


ERPkudos

Difficultto install

Frustratingto use

Highinitial cost

Highon-going cost

Difficultto upgrade

Logically, itappears that we

should have both!


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ERP rivalsERP rivals SAP, Infor & IBMSAP, Infor & IBM


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By producing their own PM system, SAPBy producing their own PM system, SAP

have bravely ventured into an area thathave bravely ventured into an area that

their UStheir US--based rivals avoidedbased rivals avoided

In the USA, SAP rivals bought out bestIn the USA, SAP rivals bought out best--ofof--

breed asset management softwarebreed asset management softwarecompanies to augment their ERPcompanies to augment their ERP

portfoliosportfoliosInforInfor bought Datastream andbought Datastream and

IBMIBM bought MRO Maximobought MRO Maximo


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By producing their own PM system, SAPBy producing their own PM system, SAP

have bravely ventured into an area thathave bravely ventured into an area that

their UStheir US--based rivals avoidedbased rivals avoided

In the USA, SAP rivals bought out bestIn the USA, SAP rivals bought out best--ofof--

breed asset management softwarebreed asset management software

companies to augment their ERPcompanies to augment their ERP

portfoliosportfoliosInforInfor bought Datastream andbought Datastream and

IBMIBM bought MRO Maximobought MRO Maximo

Who do you think got it right?Who do you think got it right?

SAP PM


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SAP PMSAP PM

From published

accounts, blogs andcomments, as far as

usability is

concerned, manymaintenanceprofessionals see this

particular ERPmaintenancemanagement systemas a bit of a

SAP PMSAP PM


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SAP PMSAP PM

From published

accounts, blogs andcomments, as far as

usability is

concerned, manymaintenanceprofessionals see this

particular ERPmaintenancemanagement systemas a bit of a

SAP PMSAP PM


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SAP PMSAP PM

The evidence isright there on

S iS i


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Summing upSumming up

The maintenance process is a technical assuranceThe maintenance process is a technical assuranceprocess and fundamentally different from the supplyprocess and fundamentally different from the supplychain, accounting and material transformationchain, accounting and material transformationprocesses in an MRPprocesses in an MRP--ERP systemERP system

Whilst labour and material reconciliation may beWhilst labour and material reconciliation may beimportant, its much less important than having aimportant, its much less important than having afriendly, fast and agile technical management supportfriendly, fast and agile technical management supporttooltool

CMMS is the practical and proven tool for supportingCMMS is the practical and proven tool for supportingthe Engineering Manager and the maintenance team inthe Engineering Manager and the maintenance team inthe workplacethe workplace

Maintenance system implementation is a maintenanceMaintenance system implementation is a maintenanceproject not a software projectproject not a software project

S iSumming up


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Users will always recognise when a system is poor.Users will always recognise when a system is poor.And they resent doing things for which they see noAnd they resent doing things for which they see novalue or which are clumsy, overly timevalue or which are clumsy, overly time--consuming andconsuming andcause them griefcause them grief

If a system is uncomfortable and unfriendly, users willIf a system is uncomfortable and unfriendly, users willshun it. They wonshun it. They wont make it work. Theyt make it work. Theyll avoid using itll avoid using it

When a system is painful to use, users will resentWhen a system is painful to use, users will resentmanagement for inflicting it on themmanagement for inflicting it on them

If a system is complicated, learning continuouslyIf a system is complicated, learning continuouslyevaporatesevaporatesintuitiveness consolidates the learningintuitiveness consolidates the learningcurvecurve

Customised software is difficult to upgrade and theCustomised software is difficult to upgrade and thecost of ownership is highcost of ownership is high



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The most successful maintenance practices acrossThe most successful maintenance practices acrossassetasset--intensive organisations in many industries areintensive organisations in many industries are

incorporated in a standard bestincorporated in a standard best--ofof--breed CMMS.breed CMMS.

Maintenance addMaintenance add--ons to ERP systems are inferior afterons to ERP systems are inferior after--thoughtsthoughts

Using the configuration features, standard CMMSUsing the configuration features, standard CMMS

software can be tailored to fit individual needssoftware can be tailored to fit individual needsthere isthere isno change to source code and future upgrades areno change to source code and future upgrades are

unhindered and easyunhindered and easy

With standard, nonWith standard, non--customised CMMS software thecustomised CMMS software thedevelopment cost is spread over thousands of usersdevelopment cost is spread over thousands of users --

the cost of ownership is correspondingly very smallthe cost of ownership is correspondingly very small



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Beware of abandoning the unique advantages of bestBeware of abandoning the unique advantages of best--ofof--breed CMMS software in pursuit of the idealistic dreambreed CMMS software in pursuit of the idealistic dream

of having one system for everything. It wonof having one system for everything. It wont workt work

economicallyeconomicallyAssetAsset--intensive organisations need ERPintensive organisations need ERP andandCMMSCMMS

because of their mutually exclusive advantagesbecause of their mutually exclusive advantages

Select a standard CMMS that most closely mirrors yourSelect a standard CMMS that most closely mirrors your

actual maintenance processesactual maintenance processes

Dont customise software until youre sure that it reallycant do as you need AND youre 100% certain thebusiness benefits outweigh the considerable initial andon-going cost



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Software for maintenance management, whether ERP orSoftware for maintenance management, whether ERP or

CMMS, isnCMMS, isnt at a silver bulletsilver bulletitits a practical tools a practical toolaa

means to predefined endmeans to predefined end

Senior management must carefully define that endSenior management must carefully define that endthethe

expectationexpectation in terms of improved business performancein terms of improved business performance

-- then ensure the software tool selected is the mostthen ensure the software tool selected is the mostappropriate one for the jobappropriate one for the job

What are the addedWhat are the added--value aims of the initiative?value aims of the initiative?

How and where will the gains be made?How and where will the gains be made? Are the goals fantasy or an achievable reality?Are the goals fantasy or an achievable reality?



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The actual savings and business gains from aThe actual savings and business gains from a

computerised maintenance system depend entirely oncomputerised maintenance system depend entirely on

the efforts of the Engineering Manager, histhe efforts of the Engineering Manager, hismaintenance team and close collaboratorsmaintenance team and close collaborators

With the right tool and onWith the right tool and on--going support, a competentgoing support, a competent

and motivated Engineering Manager will deliver theand motivated Engineering Manager will deliver thegains senior management and the Board expectsgains senior management and the Board expects

Alienating the Engineering Manager and his team byAlienating the Engineering Manager and his team by

imposing an unwanted clunky system is just not goodimposing an unwanted clunky system is just not goodbusiness sensebusiness sense


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erp versus cmms[1]

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