Getting the Basics Right with Enterprise Asset Management

Keywords: Asset Management, Artificial Intelligence (AI), Asset Performance Management (APM), Analytics, Machine Learning (ML), Enterprise Asset Management (EAM), Risk Management, Integrity Management, ARC Advisory Group.

Overview

Modern asset performance management (APM) combines traditional asset management practices with new digital technologies for transformational advances in reliability, maintenance execution, and business performance. Newer technologies have pushed the limits of traditional APM solutions to make them more flexible, effective and robust.  

At ARC Advisory Group's recent Industry Forum in Orlando, Florida, modern asset management was among the key topics discussed. The “Smart Asset Management to Realize Business Outcomes” and “Unlocking Performance with AI and Analytics” sessions discussed the key developments in the enterprise asset management (EAM) solutions and highlighted how APM has become a primary enabler of digital transformation for asset management among industrial companies. 

Starting Transformation at the Core with EAM

Senior Director of IT at Post Consumer Brands Jamie Hansen, discussed his company’s APM strategies during his presentation. Post is a leading American consumer packaged goods food manufacturer headquartered in Minnesota. One of the leading goals is to continue to grow through acquisitions. In the last four years, the company has acquired three leading brands, adding seven new plants to their portfolio. With the aim to realize synergies with the acquisitions, the company wanted to bring common asset management processes, procedures, and systems to its various plants. To achieve this, they need to start at the core and implement a modern enterprise asset management (EAM) solution. All plants needed more visibility into their maintenance activities and processes. Only then will they be able to work toward common goals.

The company worked with Hexagon and implemented their leading solution HxGN EAM at two plants in 2022. Post wanted to take a slow and steady approach to ensure they did it right. The company refined its processes and procedures at the two locations, and is now rolling out the implementation to one of its complex plants this year. By the end of next year, the company will have nine of its plants on the new system. 

In the last two years, Post has realized many benefits from adopting the advanced EAM system. All the key asset and maintenance data is now saved systematically and accurately so it can be leveraged for gaining insights, running analytics, and making data-driven decisions. The company has many high-end assets  in inventory, which different plants will now be able to share with one another since they have the visibility into the overall organization’s inventory. Overall, the company has reduced unplanned downtime by 2 percent and increased overall equipment effectiveness by 5 percent. Several other benefits included, more predictability and reliability in achieving their goals, clarity of employee roles and responsibility, improved employee satisfaction and labor relations. 

Becoming Proactive about Risk Management 

Manager of Planning and Scheduling at Southern Star Central Gas Pipeline Stuart Johnson shared details about the success they have achieved with their risk management initiatives with modern EAM systems. Southern Star is a leading transporter of natural gas with approximately 5,800 miles of natural gas transmission pipeline in the Midwest and Mid-Continent regions of the United States.

Southern Start began its digital transformation journey in 2017. In 2019 it started its initiative to strengthen its APM program beginning with EAM software. The company implemented the HxGN EAM solution and were able to bring many improvements to their APM programs. The company ensured that right data is saved and leveraged, proper maintenance plans are executed and evaluated in a timely manner, and resources are utilized properly. Within three years, Southern Star was able to achieve the ROI it expected and was able to put around 20-25 percent savings through efficiency gains back into asset management initiatives. 

ARC Advisory Group clients can view the complete report at the ARC Client Portal.

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You can learn more about APM at Asset Performance Management Market Analysis Research