ROI of Maximo AAM
Maximo AAM is a turn-key cloud-based EAM solution that provides everything you need on day 1 to unlock new value from your enterprise assets.
Improve productivity and expand revenue!
Maximo AAM clients can expect transformative improvement to many aspects of their business resulting in direct savings and revenue growth opportunities.
Contact TRM today for more information on this solution or free access to a demo environment.
Lower costs of work by increasing ratio of Planned : Unplanned Work
Lower inventory spending due to improved standards and planning
Higher labor productivity due to parts on Job Plans
Higher productivity of maintenance workforce due to adopting Mobile
Higher labor productivity by due to better scheduling
Less PM work due to increasing meter based PMs
Increase production due to reducing equipment downtime
Lower costs of work by increasing ratio of Planned : Unplanned Work
Increase asset availability
Increase in aervice life of assets due to PM program improvements
Increase in warranty recoveries
Reduction in unplanned maintenance with real time condition monitoring and advanced analytics
Lower costs of work by increasing ratio of Planned : Unplanned Work
Increase in health, safety and regulatory compliance.
Reduction in inventory carrying Costs
Reduction in annual Inventory costs
- Reduced Workforce Personnel
Maximo AAM helps increase productivity and realize budget savings. Organizations also gain further through continuous improvement, looking at equipment history, tweaking job plans, relative costs to maintain, repair vs replace, long term capital expenditures planning
- Increased Planned Work / Planner Productivity
Increased percentage of planned vs. corrective and emergency work indicative of workforce and asset management ‘best practices’. Planner productivity is critical to the operational efficiencies of all other organizational groups within the site. Maximo supports this goal through providing easy to use software tools, with detailed planning and scheduling functionality and full integration of supply chain information, to find parts quickly, create demand, track orders and receipts, and schedule work accordingly, without wasted labor time.
- Increase Wrench Time
Maximo supports this in many ways; well-planned work enables more tightly scheduled crews, who are provided details of the jobs at start of shift, with correct parts identified. Work can commence almost immediately at start of shift
Pick tickets printed in storerooms in advance by Maximo can be staged and ready for pickup when crew member arrives to pick up parts, reducing waiting again.
Many organizations will also deliver parts on shift before to job site, called “staging”, so crews go directly to equipment or location to begin work.
To enable the work crews to view their jobs and all details in a mobile device, also enabling them to complete labor hours, notes and completion of job while in transit to next job.
- Increased workforce productivity
Tighter planning and scheduling of work enables all levels of workforce, form trades person to planners to management to produce greater output in their respective jobs, i.e.., more time spent on actual wrench time for crafts, more time doing analysis and adjustments to past work performed for planners or supervisors, and with more accurate and real-time data on performance, more effectiveness management decision making for continuous process improvements and plans for long-term equipment capital expenditures.
In general, Maximo’s ease of use, its start center, inbox and “push” maintenance concept of pushing the work to the workforce all support increased productivity at all levels. It is designed for work environments which do not have the time to spend any more time than necessary in searching for information or entering data in multiple places.
- Reduced Overtime Labor
Maximo features which support best practices of work planning and scheduling result in more work being performed by the existing workforce within current work schedules, with less wasted idle time, reducing need for overtime to keep up with uncontrolled buildup of work backlog
These features include detailed task level planning on each work order, graphical scheduling, copy features from job plan library, attached documents, mobile work management, illustrated parts catalog for more efficient finding of parts for unplanned work, more effective planning of labor requirements and spare parts with work plans, among many others.
- Reduced Contract Labor
More efficient labor management with Maximo reduces the need for regular or periodic supplement to the workforce for work it can routinely perform. Contract labor should be utilized only when specific skills are required which are not practical to have in-house, or during outage or overhaul activity. Minimal use of contract labor is a best practice and indicative of a well-run maintenance organization in full control of their resources.
- Reduced Storeroom Staffing
Maximo supports inventory best practices to provide all the ROI benefits by better management of inventory levels and availability, but also may enable clients, in some circumstances, to reduce number of personnel needs to manage these facilities.
- Reduced CapEx Equipment Replacement
Improved Maintenance Programs supported by Maximo detailed Asset history, its job plan library and robust PM schedule flexibility provides organizations with lifecycle extensions of equipment, thereby deferring replacement costs by years, depending on equipment types. This is an accepted ‘best practices’ model within the EAM industry.
Operating equipment, similarly, may have its lifecycle costs not only reduced through detailed and appropriate planning and scheduling, but extend its useful life within this class of assets.
- Reduction in Unplanned Downtime
Unplanned downtime clearly impacts production schedules and finished products. This is clearly more important in a process industry, where shutdown and startup may require a day or two of lost time. Maximo, as part of its best practices, addresses this through all the core functionality of work planning, preventive maintenance and detailed job plans, but also from being able to monitor, predict and prevent downtime. This is done through extensive support for RCM failure codes, root cause and remedy feedback which builds history on equipment for trending analysis , but also provides Condition-Based Monitoring applications, which accepts readings from real-time control systems into Maximo, which can trigger various forms of alarms, escalation and troubleshooting work plans, to prevent catastrophic failures before they occur.
- Improved Forecasts and Cost Accounting
Maximo AAM easily integrates with Financial and ERP systems with pre-built adapters to ensure cost data in Maximo is accurate and budget forecasts are reliable.
- Reduced Parts Catalog line items
Maximo, in its catalog numbering options and stock item set up, supports the greatly reduced number of catalog items, during set up, as it reduces the number of duplicate items for the same identical parts, which causes replenishment of these dup items, thereby inflating quantities on hand, inventory value and tax liability. Conversely savings are realized when excess material can be returned to vendor for credit or sold for scrap. Eliminating duplicate catalog items also contributes to reduce the extra time taken for workers to locate the right parts.
- Greater inventory turnover
Maximo built-in replensihment algorithms include usage of stock over time, so that suggested reorder reports are based on accepted MRO material replenishment forecasting methods, so that inventory levels are reduced overall, with confidence. This reduction of inventory on hand can result in more frequent turns, in line with just-in-time MRO Supply chain principles
- Fewer inventory locations
Maximo supports greater control of inventory through increased confidence and reliability that parts needed to perform work will be reserved and available to the workforce. This will obviate the need for trades and supervisors having their own ‘safety stock’ in virtual and untracked locations, thereby creating artificially high inventory levels
- Reduced inventory value in stores
Among the greatest single ROI savings areas, Maximo enables and promotes dramatic reduction of inventory levels, through ID and elimination of duplicate line items, identification of scrap and obsolete inventory, and the JIT replenishment reordering algorithms for MRO supply chain which reduce levels on hand over time, while having very few stock outs.
- Better vendor pricing
Maximo supports this ROI due to the integrated nature of the system and the ability to manage large sets of information regarding past purchases, so that better prices may be negotiated. Because buyers are also freed up from fire fighting activity, they have more time to do vendor analysis and manage the relationships of the suppliers more effectively.
- Reduced stock-outs
Maximo will make stock outs a rare occurrence, as it will manage availability and reordering to optimal levels. The bottom-line impact of this is that stock-outs, when they occur, wreak havoc with the productivity of crews, who need to be rescheduled for work where parts are available and these delays waste time. Stock outs also spawn expenses in the way of emergency orders and expediting charges.
- Improved Requisition Tracking
Maximo supports this item through providing tightly integrated modules with the ability of work or spare parts requestor to track status of req faster and more effectively
- Improved Buyer Productivity
Overall, Maximo supports dramatic increases in productivity for buyers, through its strong integrated design, where processing of multiple products or success reqs into one or many POs, mass processing and status changes, RFQs and Contracts
- Reduced Expediting Expenses / Emergency Buys
Maximo supports best practices for advanced integrated work planning and scheduling and replenishment of Inventory, making inventory available when needed, reducing the occurrences of ‘fire drill’ emergency orders and the related costs
- Improved Purchasing Productivity
Maximo support this productivity gains through its tight integration in the whole supply chain process, from demand to requisition, PO to receipt, invoicing to approval for payment. Maximo provides automatic 3-way matching of PO to Invoice to Receipt. Exceptions can be identified quickly and correct matches are quickly processed and sent for timely payment. Research of mismatches or incomplete receipts can be tracked and resolved much quicker, with the PO and receipt data available on-line.
- Reduced invoice errors
Reduced errors and faster processing not only supports handling of more invoices, improving productivity, but also enables clients to take advantage of quick payment discounts and avoid late payment penalties, enabling clients to save money and avoid unnecessary costs at the same time.
- Improved Quality of Work Planning
Maximo supports this through provision of detailed history over time of work performed, labor resources, tasks, spare parts, tools, safety plans used and a library of job plans from which to select ‘templates’ to plan repetitive work. After 3 years of use, only about 5% of work performed would need to be planned from scratch.
In addition, planner productivity is so improved through use of Maximo that fewer planners need to be user for planning work, freeing them up to start doing more analysis of equipment reliability and adjustments to maintenance plans to reflect historical performance and industry best practices.
- Reduced emergency work
Better planning procedures, detailed PM schedules for Equipment, and Maintenance programs for specific types of equipment are supported so well by Maximo that unplanned breakdown of equipment occurs with less frequency, and becomes a much smaller percentage of work performed. Since emergency work is usually disruptive to workforce planning and scheduling, and is more expensive, reducing this percentage provides direct savings.
Emergency breakdowns are also minimized by the Condiiton-Based Monitoring features of Maximo, where integration with real-time control systems, when in production, reading outside or predtermined tolerances provide alerts and pro-active actions to be generated which may prevent unplanned or emergency breakdown work.
- Reduce PM Work
Implementing Condition based maintenance methods significantly reduces the frequency of PM work freeing up maintenance staff time and resources to reduce reduce maintenance backlog.
- Decreased Maintenance Backlog
Maximo support for better planning of PMs and job plans, better scheduling and work history reporting, predictive maintenance which provides fewer disruptive equipment incidents, all enable an organization to manage their backlog more efficiently.
- Repair vs. Replace Analysis
Organizations with detailed history of total costs to maintain assets, over time, equalized across like groups of assets, in Maximo, are able to query this history to provide information as to understand which assets are the best performing or reliable assets. It will also identify which assets may require closer inspection of its reliability issues, to determine its remaining useful life, and use the information to support and plan for its retirement and replacement.