Enterprise Asset Management Software Optimizes OEE

Enterprise
Asset
Management
SU M ME R E D I T I O N
Contents
3 — Conduct asset performance management with a software-

based approach
10 — Enterprise Asset Management Software for a New Era
11 — ERP and CMMS: The ties that bind
14 — How to Prevent Equipment Failure Before it Happens
29 — Should assets be monitored in-house or in the cloud?
35 — Leverage digitalization for asset integrity management
42 — RFID, asset management a powerful combo
2
Conduct asset performance
management with a software- Conduct asset
performance
based approach management with

a software-based
approach
Unite separate parts of the organization, allowing teams to work collectively Enterprise Asset
Management Software for a
M anufacturers embrace digital transformation to boost operational efficiency, New Era

minimize risk and improve productivity. Many accomplish these goals through ERP and CMMS: The ties that
better understanding of asset performance. The most common metric for measuring bind
manufacturing productivity is overall equipment effectiveness (OEE), which identifies How to Prevent Equipment
the percentage of truly productive production time. In other words, productive time is Failure Before it Happens
where good parts are made at optimum efficiency, without downtime. Should assets be monitored
in-house or in the cloud?
First popularized in the 1960s by Seiichi Nakajima, founder of the total productive main- Leverage digitalization for
tenance system, OEE is a function of a unit’s availability, performance compared to de- asset integrity management
signed capacity and product quality. OEE is commonly thought of as a manufacturing RFID, asset management a
key performance indicator (KPI) in that it provides a thorough evaluation of asset pro- powerful combo
ductivity, whether it be for a manufacturing line or entire plant. Quantification, i.e., data,
gives production managers greater visibility into where and how effectiveness is lacking.
Addressing these shortfalls in effectiveness is one of the best ways to improve plant produc-
tivity. For OEE, equipment productivity loss is categorized as the “Six Big Losses” as follows:
Availability:
• Equipment failure
3
Conduct asset performance management with a software-based approach
• Setups and adjustments. Conduct asset

performance
management with
Performance:
a software-based
approach
• Idling and minor stops
Enterprise Asset
• Reduced speeds. Management Software for a
New Era
Quality: ERP and CMMS: The ties that
bind
• Process defects How to Prevent Equipment
• Reduced yield. Failure Before it Happens
Should assets be monitored

The Six Big Losses provide detail into the factors that undermine manufacturing pro- in-house or in the cloud?
ductivity and guidance as to what specific areas are best targeted for making improve- Leverage digitalization for
ments. In this sense, OEE offers a framework for uncovering the core issues limiting asset integrity management
efficiency. RFID, asset management a
powerful combo
Since the inception of OEE, digital technologies have enhanced measurement accu-
racy and efficient application of improvements. And, with the ability to unlock insights
from thousands of data points, advanced analytical tools like asset performance man-
agement (APM) software give operators the ability to make incremental OEE improve-
ments, and thereby, productivity enhancements. Today, APM software offers solutions
to optimize OEE even further.
The next evolution in APM software allows manufacturing facilities to collect and in-
tegrate historical data to build a dynamic model — a digital twin — that ingests new
4
data to predict the remaining useful life of critical plant assets. As a virtual representa- Conduct asset
tion of a plant’s assets, a digital twin is modeled from past performance data, real-time
performance
management with
present data, and “future” data supplied by machine learning algorithms and guidance
a software-based
from engineers. approach
Enterprise Asset
A digital twin is valuable for its ability to detect bottlenecks, facilitate predictive main- Management Software for a
tenance programs and identify benchmarking opportunities for informing OEE efforts. New Era
ERP and CMMS: The ties that

On a business level, APM software also can offer greater understanding of real bind
cost-of-production and return on investment, which will help businesses optimize How to Prevent Equipment
end-pricing to customers, making them more competitive. Failure Before it Happens

Predict remaining useful life in-house or in the cloud?
A digital twin built from APM software allows mimicking of asset lifecycles, simulating Leverage digitalization for
their remaining useful life. In manufacturing environments, this approach understand- asset integrity management
ing the current state of critical assets and predicting how they will fare in the future. By RFID, asset management a
simulating forward — using historic data trends and current operational dynamics as a powerful combo
guide — a digital twin delivers a view into the future.
By modeling outcomes that would result from changing key parameters, digital twin
technology provides important insights for optimizing OEE and driving continuous
improvement.
In addition, virtual representation models can be designed for the component level, the
system level, i.e., for an entire production line or the process level (the entire manufac-
turing process). If a model estimates the period remaining before the asset is likely to
5
break down or reach the Conduct asset

end of its useful life, engi-
performance
management with
neers can stress-test input
a software-based
changes or take preemp- approach
tive action to prevent fail-
Enterprise Asset
ure before it happens. As Management Software for a
adjustments or repairs are New Era
made, this data can be fed ERP and CMMS: The ties that
back into the digital twin bind
to determine whether the How to Prevent Equipment
future state of the com- Failure Before it Happens
ponent, asset, system or Should assets be monitored
process thereby changes. in-house or in the cloud?
With performance, availability and quality
measurements, manufacturers can generate OEE Leverage digitalization for
Detect bottlenecks benchmarks of their assets and production lines asset integrity management
to understand which areas of their operations are
Bottlenecks impede material flow — and the most productive and where improvements RFID, asset management a
hence, productivity — in manufacturing facili- need to be made. Courtesy: CFE Media powerful combo
ties and constitute the weak points in any sup-
ply chain operation. The throughput at a bottleneck determines the pace on a manu-
facturing line and is the limiting factor for efficiency in a facility.
The root issues of bottlenecks generally include process and machine limitations, such
as outdated, inefficient or faulty equipment requiring continuous repairs and resulting
in slower production and downtime. However, bottlenecks are not always apparent.
The outcomes of a bottleneck — for example, production shortfalls — might be pain-
fully obvious, but where and why it is occurring might not be.
6
In these cases, a virtual twin assembled from historical data is a tool for uncovering Conduct asset
bottleneck sources. By examining trends across the data record, such as equipment
performance
management with
performance or production data corresponding to each manufacturing line, facility
a software-based
managers can discover those factors that impact plant efficiency. For example, chronic approach
underperformers can be identified or historical data can indicate how often a line has
Enterprise Asset
run out of a certain raw material or packing supply. Management Software for a
New Era
What makes bottlenecks difficult to document is that root causes may not be readily ERP and CMMS: The ties that
apparent. But with a clearer view of the facility, managers can better discover their un- bind
derlying cause. How to Prevent Equipment
Failure Before it Happens
Take the example of a brewery. If historical data reveals that a pasteurizer can produce Should assets be monitored
a greater volume of beer compared to what can be handled by the packaging line (the in-house or in the cloud?
next step in the production process), the bottleneck’s root cause will be evident. But if Leverage digitalization for
that packaging line is being pushed to operate at maximum capacity and absorb ev- asset integrity management
erything coming from the pasteurizer to meet a target output, the brewery might be RFID, asset management a
more likely to see the bottleneck as arising from equipment failure on the packaging powerful combo
line. This scenario might also result in shortened asset lifecycles. With access to this in-
sight, a facility manager might realize the best course of action is to invest in enlarging
the packaging line rather than running equipment at its design limits.
Predictive maintenance
Creating a virtual asset representation from historical data and simulating performance
forward under varying scenarios allows operators to anticipate exposure, wear on com-
ponents, risk factors and where failures are most likely to occur. Simulations developed
from historical knowledge also can include contextual data about an asset’s mainte-
7
nance schedule — corrective maintenance performed, repairs and replaced parts. This Conduct asset
can be merged with further information such regarding performance records, operat-
performance
management with
ing environment and newly available IIoT data collected from the physical asset.
a software-based
approach
By combining all this data, predictive models can advise as to maintenance actions for
Enterprise Asset
minimizing unplanned downtime and potentially eliminating the need for fixed mainte- Management Software for a
nance schedules. New Era

Benchmark for OEE bind
Digital simulations also are used to conduct benchmarking between sites and assets How to Prevent Equipment
for optimizing OEE efforts. By benchmarking real-time production and performance Failure Before it Happens
metrics, regional managers can make accurate comparisons at the asset, system and Should assets be monitored
process levels. in-house or in the cloud?
Leverage digitalization for

Benchmarking data can be used to compare chemical treatment programs in different asset integrity management
regions or the performance of cooling towers, boilers or specific water treatment tech- RFID, asset management a
nologies across multiple sites. In a packaging scenario, benchmarking data provides powerful combo
plant managers with greater visibility into output, cost and investment performance of
each packaging line within a facility.
With performance, availability and quality measurements, manufacturers can generate

OEE benchmarks of their assets and production lines to understand which areas of
their operations are the most productive and where improvements need to be made.
These evaluations also can be extended to the entire facility, allowing OEE benchmark
comparisons at a larger scale.
8
Improve financial performance Conduct asset

performance
OEE also offers tremendous value as a business KPI. Applied as a business metric, OEE management with
enables companies to view their operations in financial terms, helping them under- a software-based
stand where to deploy resources for improving cost performance. approach
Enterprise Asset
Here, APM software provides benefit by delivering deeper insights into how improve- Management Software for a
ments can reduce manufacturing costs, increase profit margins and enhance ROI. New Era
Armed with more detailed cost awareness in terms of their business operations, com- ERP and CMMS: The ties that
panies can better optimize product end-pricing to advantage. bind
How to Prevent Equipment

However, recognize that achieving efficiency gain in core operations and improved Failure Before it Happens
financial performance does not follow from simply adopting APM software and target- Should assets be monitored
ing OEE enhancements alone. Companies must first focus on enacting mature APM in-house or in the cloud?
software programs based on connecting systems and technology across the enterprise. Leverage digitalization for
asset integrity management
As the “glue” to bring previously siloed areas together, such as enterprise resource RFID, asset management a
planning, digital supply networks and enterprise asset management systems, the value powerful combo
of APM software lies in its capacity to unite separate parts of the organization, allowing
different teams to work collectively as one unit. Applied in this way, field-level results
drive enhanced performance, which translates into financial results through topline
growth, cost reduction, safety, quality and capital efficiency.
Emrah Ercan
Emrah Ercan serves as global director of digital solutions at SUEZ Water Technologies
and Solutions and is a member of the company’s innovation and digital board of direc-
tors. He is responsible for strategic direction, commercialization and development of
the company’s digital solutions.
9
Enterprise Asset Management Software for a New Era

management with a software-
based approach
Enterprise Asset
Management Software
for a New Era
bind



RFID, asset management a

powerful combo
Enterprise Asset Management Software

for a New Era
10
ERP and CMMS:
The ties that bind Conduct asset performance
based approach
A best-of-breed computerized maintenance management system can fulfill Enterprise Asset
requisite integration with an enterprise resource planning system to share Management Software for a
New Era
cost data and reduce redundant data entry.
ERP and CMMS: The
W hether you follow engineer-to-order (ETO), make-to-order (MTO), batch pro- ties that bind
cess, or any other manufacturing style, there’s an enterprise resource planning How to Prevent Equipment
(ERP) strategy to fit your firm. Manufacturers invest in ERP to gain control of major busi- Failure Before it Happens
ness processes. Depending on the size of their organization, manufacturers can pick Should assets be monitored
and choose from a range of ERP systems with a choice of modules to automate both in-house or in the cloud?
business and production processes—from sales, service, inventory, and accounting, to Leverage digitalization for
production, supply chain, and shop floor management. asset integrity management

But not all ERP modules are created equal. When it comes to maintenance manage- powerful combo
ment, ERP may fall short in ease of use and quick implementation. Expensive custom-
ization can be required to fit the ERP’s enterprise asset management (EAM) system to
the maintenance organization’s workflow, including routine preventive maintenance
(PM), work orders (WOs), and detailed asset-maintenance analysis.
However, maintenance managers do have a choice. A best-of-breed computerized

maintenance management system (CMMS) that has proven to cut maintenance costs
and increase machine uptime can often stand alone and act independently from an
ERP system, but it also has the capability of integrating with the ERP if your organiza-
tion wishes to integrate asset information. At the same time, the CMMS can be faster
to implement and produce better return on investment (ROI).
11
ERP and CMMS: The ties that bind
A best-of-breed CMMS tends to have functionality that can be comparable to an ERP Conduct asset performance
EAM module, yet packaged in an easier-to-use interface. The CMMS ties togeth- based approach
er asset documentation, maintenance production, and parts inventory. Its database
Enterprise Asset
can handle a heavy load of information about an asset, and users can easily add cus- Management Software for a
tom fields to append images, schematics, manual instructions, and more. A powerful New Era
CMMS also turns a simple WO into an asset’s audit trail for repair history, safety main-
ERP and CMMS: The
tenance, and contractor relations. ties that bind
An ERP EAM tends to naturally be more complex, given its operational breadth. Its Failure Before it Happens
functionality may require many more steps to enter a piece of equipment, like adding
a PM or issuing a WO. This is an important point, whereas best-of-breed CMMS should in-house or in the cloud?
shorten the learning curve for users, from implementation to routine, daily usage to
asset maintenance analysis, with a modern intuitive interface that enables them to ac- asset integrity management
complish their goals in as little steps as possible.
powerful combo
This comes by way of vertical scrolling and few horizontal tabs. Modern CMMS solu-
tions enable users to scan for information instead of searching through numerous tabs
at the top of a screen to get to other pages. While this type of vertical scrolling is com-
monplace on smartphones and tablets, modern CMMS user interfaces are adapting to
present-day user behavior.
But a best-of-breed CMMS also fulfills requisite integration with an ERP, shares cost
data related to maintaining assets, and reduces the need for redundant data entry.
Take spare parts, for example. Within two or three clicks of a mouse, the user scans the
part into a WO and the CMMS automatically adjusts inventory.
12
ERP and CMMS: The ties that bind
Best-of-breed CMMS can also sync with ERP purchasing, inventory, and order manage- Conduct asset performance
ment, and share cost information related to asset maintenance. When a WO requires based approach
spare parts to be used, those parts are noted in the WO, and the CMMS seamlessly
Enterprise Asset
adjusts inventory and order management on the ERP side and generates or shares an Management Software for a
ERP purchase order if parts need to be replaced. New Era
ERP and CMMS: The

And when the user closes out the WO, the CMMS automatically adds the spare parts ties that bind
to a bill of materials.
At the end of the day, there are options when it comes to maintenance management,
particularly within an organization utilizing a corporate ERP system. Today’s best-of- in-house or in the cloud?
breed CMMS solutions can come with the integration points necessary to bridge the
gap between maintenance operations, accounting, inventory, and other organizational asset integrity management
functions—all while providing the simple user interface, powerful functionality, and
quick implementation maintenance managers need to ensure their department stays powerful combo
on target.
Paul Lachance
Paul Lachance is president and chief technology officer for Smartware Group.
13
How To Prevent Y ou already know equipment failure is costly, but how
much is it costing your manufacturing plant?
Equipment It’s literally a million-dollar question.
Failure Before it A global study of 450 field service professionals across in-
dustries found the average unplanned downtime incident
Happens
lasted four hours and cost businesses:1
The costs of returning broken or damaged equipment to

normal operations go beyond just the direct costs. There
are always added labor costs to bringing equipment back
online, and if the failure resulted in a safety hazard, there
my be injuries or fines involved. Then there are opportunity
costs, including lost time and lost revenue.
Preventing equipment failure requires a multi-pronged

strategy. Implementing a comprehensive preventive mainte-
nance (PM) plan is a good start, but for most manufacturing
companies, it doesn’t go far enough. Conducting regular
inspections to identify potential failure points is much more
effective. However, this is bound to cause friction when your
operations team is focused on maximizing production.
How to Prevent Equipment Failure Before it Happens
In this resource, we’ll explore the three stages of preventing equipment failure, how to Conduct asset performance
implement them, and how to achieve better cooperation from your maintenance and based approach
operations teams along the way.
Enterprise Asset
STAGE 1: Implementing a Preventive Maintenance Strategy New Era
You already know preventive maintenance is important. The alternative — a run-to-fail- ERP and CMMS: The ties that
ure, reactive maintenance strategy — is much more costly in the long run. bind
How to Prevent
Research by best-in-class machinists Equipment Failure
found reactive maintenance costs to be Before it Happens
three to nine times higher than planned Should assets be monitored
maintenance due to overtime costs and in-house or in the cloud?
other related expenses. Leverage digitalization for
However, not everyone at your organization may view preventive maintenance in a pos- RFID, asset management a
itive light. Your operations team might see PM activities as redundant obstacles that powerful combo
hinder production.
A 2019 Plant Engineering study of over 300 manufacturers found 59% perceive it as
a cost, with 7% of respondents referring to it as a “necessary evil.” Only 34% said it
could contribute to improved profitability.3
On average, respondents said they spent about 20 hours a week on preventive mainte-
nance activities.
Nearly half said they lacked the resources or staff to perform adequate preventive
maintenance, while 26% said 85% they lacked support from management.
15

Advantages of Preventive management with a software-
Maintenance based approach
The same study showed preventive main- Enterprise Asset
tenance leads to significant benefits for Management Software for a
New Era
manufacturers.
While maintenance professionals typi- bind
cally understand the advantages of this How to Prevent

strategy, those benefits may not be as Equipment Failure
widely understood by the operations Before it Happens
team. Should assets be monitored
That may be because only about one in Leverage digitalization for
five operations personnel are also responsible for maintenance duties, according to asset integrity management
the Plant Engineering Maintenance Report. RFID, asset management a
powerful combo
That’s why it’s so im-
portant to develop a
strategic preventive
maintenance plan
that improves up-
time without contrib-
uting to unnecessary
downtime.
16

4 Keys to a Cost-Effective Preventive Maintenance Strategy management with a software-
To ensure your approach to preventive maintenance is truly benefiting your bottom based approach
line without draining your budget, follow these best practices. Enterprise Asset
1. Be selective New Era
Focus on the most critical assets, those with the highest likelihood of failure, and ERP and CMMS: The ties that
those that are most expensive to repair. Sometimes this will be obvious. Motorized bind
equipment typically has more moving parts that can break down, so it makes sense How to Prevent
to perform routine maintenance on it. It requires more attention than handheld, bat- Equipment Failure
tery-powered devices, for example, which are generally easier to repair. Before it Happens
And mobile assets like vehicles are more exposed to weather and other factors in-house or in the cloud?
outside your control, so they require a different set of checks compared to fixed Leverage digitalization for
assets. asset integrity management

Keep in mind the safety hazards and the cost of unplanned downtime that can result powerful combo
from equipment failure as you assess your priorities.
2. Set maintenance thresholds

For equipment you use daily, it makes sense to schedule preventive maintenance ac-
tivities at regular intervals, based
on the manufacturers’ recom-
mendations.
Equipment that operators use

less frequently may not need
17
maintenance based on a set number of days or weeks. In these instances, it’s the us- Conduct asset performance
age that triggers maintenance activities. based approach
Enterprise Asset
Forklifts are a good example. Management Software for a
New Era
3. Document your strategy and your efforts ERP and CMMS: The ties that
If your preventive maintenance strategy isn’t in writing, it’s probably in someone’s bind
head. And when that person leaves your organization, your entire plan may, too.
How to Prevent
Equipment Failure
Documenting your preventive maintenance strategy is an important step to ensure you Before it Happens
capture and transfer institutional knowledge, but it’s also essential for transparency and Should assets be monitored
accountability. in-house or in the cloud?

Using preventive maintenance software allows you to organize your comprehensive PM asset integrity management
strategy, assign tasks to team members, and document the status, such as priority or
completion. powerful combo
4. Assign clear roles and responsibilities

Everyone on your team is responsible for implementing your preventive maintenance
plan. Take the time to clarify roles and responsibilities, and ensure each person is
trained accordingly.
While these roles may differ depending on your industry and the size of your organiza-
tion, it’s important to set clear expectations for everyone.
Here’s how that might look for your plant:

18

Machine operators
Perform routine maintenance tasks and inspection (e.g., cleaning, tightening bolts, and based approach
lubricating equipment) to reduce the likelihood of breakdowns.
Enterprise Asset
Floor supervisors New Era
Review and approve the maintenance log. ERP and CMMS: The ties that
bind
Safety supervisors How to Prevent
Ensure machine operators adhere to the safety checklist and identify compliance issues. Equipment Failure
Before it Happens
Service technicians Should assets be monitored
Trained with more advanced knowledge than machine operators, perform preventive in-house or in the cloud?
maintenance. Leverage digitalization for
Reliability engineers RFID, asset management a
Look at equipment maintenance metrics and perform data analysis to fine-tune your powerful combo
equipment maintenance strategy (such as adding or deleting items from the inspection
checklist or changing the frequency of maintenance schedules).
Senior manufacturing leaders

Support PM activities by establishing training and standard operating procedures, as
well as investing in automated systems that simplify these processes.
STAGE 2: Conducting Inspections to Identify Failure Points

When your preventive maintenance strategy is based on maintaining equipment at
regular intervals, it’s easy to schedule and automate tasks.
19
Simply set reminders for your team on a regular basis, such as daily, weekly, monthly, or Conduct asset performance
by asset use. based approach
Enterprise Asset
However, in many cases, it’s more efficient and cost effective to identify potential fail- Management Software for a
ure points in real time and perform maintenance based on those triggers. New Era

This is known as condition-based maintenance. Condition-based maintenance is one bind
example of a reliability-centered maintenance strategy with a well-established history
How to Prevent
of success. Equipment Failure
Before it Happens
It dates back to at least 1978, when research by Nowlan and Heap showed different Should assets be monitored
equipment failure patterns. One example is age-related failures, which don’t require
5
intervention until they reach a certain wear-out point. Understanding if a certain piece
of equipment falls into this category helps you save unnecessary maintenance costs asset integrity management
while reducing the risk of adding new errors.
powerful combo
Other failure patterns occur randomly, making it impossible to determine the mean
time between failure (MTBF). In fact, 80% of failures fall into this intermittent category.6
Conducting routine inspections can help you identify anomalies in the equipment’s
condition that indicate potential failure, such as vibration, friction, and fluid levels.
The Benefits of Condition-Based Maintenance

Condition-based maintenance significantly improves safety, efficiency, and equipment
effectiveness. In some cases, it’s even more effective than preventive maintenance.
20

based approach
Enterprise Asset
New Era

bind
The graph below shows a closer look at how different equipment maintenance strate-
gies compare. How to Prevent
Equipment Failure
Before it Happens


powerful combo
21

How to Develop a Condition-Based Maintenance Strategy management with a software-
1. Identify condition metrics based approach
First, you’ll need to determine the metrics that indicate potential equipment failure. Enterprise Asset
These could include multiple factors depending on the equipment, such as: Management Software for a
• Air pressure New Era
• Electrical amperage ERP and CMMS: The ties that
• High temperature (which could indicate friction) bind
• Unexpected vibration (which could indicate malfunction) How to Prevent
Equipment Failure
You’ll need to reference the asset manufacturer’s operating guidelines and establish Before it Happens
baseline measurements so your maintenance technicians will know the normal range. Should assets be monitored
2. Conduct regular inspections Leverage digitalization for
Next, establish a cadence of regular inspections to record these metrics. Ideally, your asset integrity management
technicians should be able to log RFID, asset management a
this information in an enterprise powerful combo
asset management system like
ManagerPlus.
By monitoring inspections in real

time, you can ensure any asset
that fails an inspection will be ad-
dressed quickly so it’s back online
as soon as possible, boosting your
asset availability.
22

3. Use failure codes to trigger automatic work orders
A major advantage to using asset management software is the ability to generate work based approach
orders based on inspection data. An asset management platform that creates automat-
Enterprise Asset
ic work orders for corrective action and tracks the repair process will close the loop on Management Software for a
inspections. New Era

For instance, if an operator notes that a machine has a loose cutting blade, that ma- bind
chine would fail the inspection. Instead of holding up production waiting for a work or- How to Prevent
der, then the corrective action, then the reinspection, your asset management platform Equipment Failure
can trigger each action automatically. Before it Happens
STAGE 3: Using Predictive Maintenance Tools in-house or in the cloud?
Predictive maintenance is a more advanced form of condition-based monitoring. Leverage digitalization for
It uses Industrial Internet of Things (IIoT) sensors embedded in equipment to continu- RFID, asset management a
ously collect data on temperature, friction, and other condition metrics. powerful combo
The ability to predict when equip-

ment will fail offers tremendous val-
ue. According to research from the
Deloitte Analytics Institute, predic-
tive maintenance:8
While predictive maintenance is ap-

pealing, its success depends on access to real-time data and technicians who are able
to interpret it correctly and quickly address the issue.
23
Sensors provide this data, but there are Conduct asset performance
up-front costs involved in implementing based approach
them. Only 34% of manufacturing plants use
Enterprise Asset
sensors, according to a 2018 study by Plant Management Software for a
Engineering.9 Most use a combination of New Era
manual and visual inspections instead. ERP and CMMS: The ties that
bind
And just implementing sensors on critical
How to Prevent
pieces of equipment isn’t enough. Sensors Equipment Failure
will tell you when something is operating Before it Happens
outside of the normal range, but they won’t Should assets be monitored
tell you why. Your maintenance team needs in-house or in the cloud?
to be trained to interpret sensor data correctly and respond appropriately.
When using predictive maintenance to enhance the reliability of your assets, Gartner
recommends starting with equipment that will degrade over time at a reliable rate.9 powerful combo
Start with the most critical equipment, where unexpected failure carries the highest
stakes and costs to repair.
You will need a strong inspection strategy to support a successful predictive mainte-
nance program.
Technicians need to be able to refer to failure codes and checklists, which give them
specific actions to take when a certain condition is detected. And operators need to
see these actions are taking place so they can plan accordingly.
24

How to Improve Collaboration Between Maintenance management with a software-
and Operations based approach
To ensure your approach to preventive maintenance is truly benefitting your bottom Enterprise Asset
line without draining your budget, collaboration is important. Management Software for a
New Era
When something breaks, your maintenance team often takes the blame, even if oper- ERP and CMMS: The ties that
ator error contributed to the equipment failure. The operations team believes mainte- bind
nance activities are slowing them down, and your maintenance team is tired of making How to Prevent
the same fixes over and over. Equipment Failure
Before it Happens
Fortunately, there are a few ways to get both teams to take ownership of equipment Should assets be monitored
issues — and have a better working relationship. EAM software can play a key role in in-house or in the cloud?
this as it brings transparency to maintenance activities and inspections, allowing both Leverage digitalization for
teams to collaborate toward common goals. asset integrity management

The following recommendations will help keep operations and maintenance on the powerful combo
same team.
1. Define common KPIs

Key performance indicators for the operations team are often easier to define because
they lead directly to the bottom line. But it’s just as important to measure equipment
downtime, maintenance costs, and the percentage of planned maintenance activities
compared to reactive maintenance.
Establish common KPIs both teams will be responsible for improving. Once you’ve
identified them, you can set up a dashboard in your enterprise asset management
(EAM) software to review regularly.
25

2. Use a shared calendar for maintenance
activities based approach
One of the biggest frustrations for your operations
Enterprise Asset
team is being unaware of scheduled equipment Management Software for a
downtime. You can create a shared calendar using New Era
the planning board within your EAM software that ERP and CMMS: The ties that
both teams can access so there aren’t any surprises. bind
How to Prevent
3. Make it easy for operators to record in- Equipment Failure
spection details Before it Happens
Regular inspections can significantly reduce un- Should assets be monitored
planned downtime. Your operations team should log in-house or in the cloud?
inspection details and note any issues so the mainte- Leverage digitalization for
nance team can be alerted right away. A mobile app asset integrity management
makes this much easier. RFID, asset management a
powerful combo
4. Establish failure codes
Identifying the most common causes of unplanned maintenance can help you stream-
line communication between technicians and operators. Develop a list of potential
reasons for equipment failure and add them to your EAM software.
A few examples include electrical faults, mechanical issues, operator error, weather,
and vandalism. Once you’ve identified the most common failure codes for your orga-
nization, you’ll have the data you need to track failure types and create a new strategy
for improvement.
26

5. Conduct a failure analysis
Set aside time to conduct a failure analysis quarterly or an- based approach
nually to gain insight into why equipment failures are hap-
Enterprise Asset
pening at your organization. This will give you the data you Management Software for a
need to justify any next steps. New Era

For instance, if a significant portion of your equipment fail- bind
ures occurred due to extreme temperatures, you may need How to Prevent
to take additional steps to weather-proof your most valuable Equipment Failure
equipment. Before it Happens
Collaboration starts with the right EAM in-house or in the cloud?
software Leverage digitalization for
ManagerPlus’ EAM software is the essential foundation for preventive, condi- asset integrity management
tion-based, and predictive maintenance and creates a continual feedback loop be- RFID, asset management a
tween technicians and operators. powerful combo
Your maintenance team can keep track of critical

asset details, such as age, production runs, and
warranty expiration date. They can also respond
to automated work orders for routine preventive
maintenance tasks based on recommended trig-
gers.
Operators can record inspection details and

prompt the appropriate corrective actions when
27
necessary to get the assets back online as soon as possible. Asset management soft- Conduct asset performance
ware with real-time inspections reporting improves asset availability. based approach
Enterprise Asset
If a piece of equipment is down, the operations team will know why almost immediate- Management Software for a
ly. They can see the failure code the maintenance team has entered and what actions New Era
they’re taking to address the failure. If a part needs to be replaced, both teams can see ERP and CMMS: The ties that
whether it’s in stock just by looking at the digital inventory log. bind
How to Prevent
Whether you’re in the early stages of preventive maintenance or your strategy is evolving Equipment Failure
to include real-time data collection, ManagerPlus enterprise asset management software Before it Happens
provides the essential tools you need to manage your total maintenance strategy. Should assets be monitored
Schedule a Free Demo
Resources
1. After the Fall: Costs, Causes and Consequences of Unplanned Downtime (Vanson Bourne Research
powerful combo
Study)
2. Be Proactive to Break the Vicious Cycle of Maintenance, American Machinist (September 2014)
3. Plant Engineering Maintenance Report (March 2019)
4. The 10 Step Guide to Lift Truck Oil Changes (Toyota Material Handling guidelines)
5. Reliability Centered Maintenance By Nowlan and Heap (December, 1978)
6. How To Use A Condition-Based Maintenance Strategy For Equipment Failure Prevention (Lifetime
Reliability Solutions)
7. 2019 Plant Engineering Maintenance Report
8. Predictive Maintenance: Taking Proactive Measures Based On Advanced Data Analytics To Predict
and Avoid Machine Failure (Deloitte Analytics Institute)
9. 2018 Plant Engineering Report
10. Mapping A Route To Asset Management and Reliability (Gartner, May 2017) 28
Should assets be monitored in-house
or in the cloud? Conduct asset performance
based approach
Wireless sensors and specialized software deliver options for Enterprise Asset
improved effectiveness. Management Software for a
New Era
I t might seem like the internet has been around forever, but even many millennials can
remember its infancy. Using internet technologies for industrial applications has been
a more recent development, as it took time for users to be convinced of its value and
bind

suitability in manufacturing contexts, particularly in process industries. This historical Failure Before it Happens
digression reminds us that the tools offered by the Industrial Internet of Things (IIoT) Should assets be
are relatively new. Just a few years ago, any facility wanting to implement manufactur- monitored in-house or
ing asset condition and performance monitoring would have had to undertake those in the cloud?
efforts internally or use specifically dedicated products. Leverage digitalization for
The IIoT is indeed here, and the outlook is much different. More choices are available RFID, asset management a
to support monitoring functions. Communication options have expanded, providing powerful combo
more opportunities for processing facilities wanting to implement such an asset moni-
toring program.
Start simple
Monitoring helps companies determine two things about an asset. First, its physical
condition, so it is possible to know if it is running well or headed for a breakdown
— hopefully before there is a failure that can interrupt production. Second, it can de-
termine how an asset is performing and doing its job within the larger process. Both
monitoring methods, used effectively, deliver financial returns to justify their cost.
29
Should assets be monitored in-house or in the cloud?
Let’s look at a simple and straightforward example — pressure relief valves (PRVs) — to Conduct asset performance
illustrate the differences between asset condition monitoring and performance moni- based approach
toring. In most situations, PRVs operate without anyone paying much attention. They
Enterprise Asset
open during an overpressure event and then reseal when the process returns to nor- Management Software for a
mal, but it isn’t unusual when they don’t reseal completely due to a worn seat, debris New Era
on the seat or other mechanical issue. Condition monitoring looks for valves leaking ERP and CMMS: The ties that
slowly without closing fully. Identifying which PRV has operated and for how long is bind
critical to identify the root cause of a process mis-operation. The challenge is to pin- How to Prevent Equipment
point one or a few bad actors among thousands of PRVs in a timely manner because Failure Before it Happens
most of them discharge into an enclosed collection system, such as a flare.
Should assets be
monitored in-house or
This is simple enough. The instrument creates data that shows what the PRV is doing in the cloud?
and the network delivers it. But how does a company turn this data into information
able to support decision making? The question has two possible answers: asset integrity management

• In-house project with on-premise data collection and analysis powerful combo
• Cloud-based monitoring with subscription-based analysis.
Let’s examine these two approaches and determine if the situation must be one or the
other.
Doing it in-house
Until recently, the in-house approach was really the only choice, and for many process-
ing facilities, it is still preferred. The difference between today and even five years ago
is the number of tools available to make such a program easier to deploy and use.
30
Traditionally, even if the wireless acoustic transmitters and supporting wireless net- Conduct asset performance
works were available, the plant would have to integrate this project into a larger his- based approach
torian platform where extensive interpretation is required, or, absent that, bring in a
Enterprise Asset
system integrator to create custom automation software to perform the data analysis Management Software for a
and historization. Fortunately, there is a growing range of new options. Here’s a typical New Era
scenario: ERP and CMMS: The ties that
bind
Data from the acoustic transmitters is carried to the gateway where it can be differ- How to Prevent Equipment
entiated from the process instrumentation data communicated on the same network. Failure Before it Happens
Therefore, data from the acoustic transmitters does not need to go to the process
Should assets be
automation system, only the alerts, so it can be sent directly to the reliability and main- monitored in-house or
tenance group, along with the environmental reporting group. Here software designed in the cloud?
specifically to monitor PRVs collects the relevant data. The software can identify which
valves are open due to an incident and which are fully closed. asset integrity management

Technicians see the data on a dedicated PRV condition/performance dashboard. If powerful combo
there is a problem, the software initiates notifications to technicians. Furthermore,
once an event occurs, plant personnel can receive that alert immediately on their mo-
bile device for prompt response. The software also interfaces with larger asset man-
agement and computerized maintenance management systems (CMMSs) that can
issue work orders for repairs or replacement as appropriate.
All of this is supported and maintained in-house on the company’s servers, with data
carried by internal networks and decisions made at the plant. Implementations like this
can be approached incrementally, beginning small and scaling up as the ROI is proven.
The supporting software platforms are flexible and easy to adjust as changes are need-
31
ed. The most difficult challenge for most companies deciding to handle everything Conduct asset performance
in-house is finding the internal personnel to support it, but this challenge is addressed based approach
to a large extent by the monitoring software’s ease of use.
Enterprise Asset
These platforms are not maintenance-intensive, but key individuals must watch the New Era
larger picture and make decisions. A PRV application will likely not be a plant’s only ERP and CMMS: The ties that
monitoring project once it gets going. Many other classes of assets will likely undergo bind
similar digital transformations. The support of these systems requires internal resourc- How to Prevent Equipment
es. In many cases, this can be personnel formerly tasked with monitoring these assets Failure Before it Happens
manually.
Should assets be
monitored in-house or
However, if this type of solution is not practical with existing personnel, it might make in the cloud?
more sense to engage specialized outside help.
To connected services RFID, asset management a
Internet access adds new options for implementing a monitoring program. First and powerful combo
foremost, it is no longer necessary to do all the work in-house. Parts or all of it can be
issued to subject-matter experts outside the organization on a subscription-based con-
tract. Remaining with our PRV example, the same acoustic transmitters would be used,
still communicating, but they might be owned and installed by the service provider.
The service provider uses specialists to perform the analytical services and deliver rec-
ommended actions, including recommending work orders for individual maintenance
tasks. The provider even can staff technicians at the company’s site to carry out the
hands-on service work.
32
While real-time information is available from the service provider to any authorized Conduct asset performance
individuals within the company via mobile devices or a portal, there will also be peri- based approach
odic summary reports. Providers with extensive experience can offer observations on
Enterprise Asset
how the company is performing on a given metric compared with industry benchmarks. Management Software for a
Since all the software and data storage are managed by the provider, there is no main- New Era
tenance required by the end user, and the solution is scalable. ERP and CMMS: The ties that
bind
A process plant might begin a monitoring program as an in-house project. However, How to Prevent Equipment
early successes frequently lead to a rapid increase in the number of monitored points, Failure Before it Happens
and the desire to expand into a wider range of areas so even greater returns can be
Should assets be
realized. Leading assets typically monitored in process plants include: monitored in-house or
in the cloud?
• Heat exchangers
• Centrifugal pumps asset integrity management
• Cooling towers
• Steam traps. powerful combo
As deployments grow, management will have to determine how it wants to apply in-
house resources. At this point, many companies find it much easier to engage a service
provider to move forward.
Best of both worlds

Projects may take advantage of both in-house and cloud-based methods (Figure 4).
Once data is collected, it may go to analytics platforms at the company or a service
provider. A company may determine that it wants some of the processing in-house but
leave the more complex and specialized analysis and report generation to the service
33
provider. In most cases, a company must decide what functions it can and should keep Conduct asset performance
in-house based on asset criticality and availability of internal resources. Consulting with based approach
an established provider is a good first step if the end user doesn’t know where to start.
Enterprise Asset
For example, a large gas turbine necessary to drive an entire facility will likely have lo- New Era
cally supported monitoring for the sake of immediacy and quick response to incidents, ERP and CMMS: The ties that
while also using remote monitoring for asset optimization. bind

In-house driven projects are still a viable approach and the right choice for many com- Failure Before it Happens
panies thanks to the wide range of tools now available. However, adopting a cloud-
Should assets be
based subscription service can often bring projects online faster and with fewer lessons monitored in-house or
learned the hard way. Fortunately, either is a viable choice today, or even a combina- in the cloud?
tion of both.
This article appears in the IIoT for Engineers supplement for Control Engineering and
Plant Engineering. See other articles from the supplement below. powerful combo
Brian Joe
Brian Joe is a wireless product manager for Emerson Automation Solutions in Sha-
kopee, MN, responsible for analytic apps and solutions. He has a BSME from Purdue
University and a BS in economics from Butler University. Brian has worked with multiple
Emerson businesses in various marketing, business development, strategy and opera-
tions roles.
34
Leverage digitalization for asset
integrity management Conduct asset performance
based approach
Select the right management technologies for modernization. Enterprise Asset
B y harnessing the Industrial Internet of Things (IIoT), industrial companies can digi- New Era
talize their asset integrity management (AIM) processes. This is especially true for ERP and CMMS: The ties that
the upstream oil & gas sector, where operators must manage a wide variety of equip- bind
ment types — both fixed and rotating — across many remote sites. How to Prevent Equipment
Most companies aren’t up to date. Instead, they rely on dated technology to manage Should assets be monitored
assets, placing safety and integrity at risk. Further, as other companies around the in-house or in the cloud?
world embrace digitalization and modernize their plants, it is easy to fall behind – im- Leverage digitalization
peding overall profitability. for asset integrity
management
Technology advance can make a remarkable difference in production capability, RFID, asset management a
profitability, and optimized inspection and maintenance scheduling. It’s possible powerful combo
to garner actionable intelligence from asset data – in real time, all the time – which
changes the game for decision making. It significantly reduces unplanned shutdowns
and inspection costs, while paving the way for machine learning (ML) and artificial
intelligence (AI).
Understanding AIM
The upstream sector of the oil & gas industry faces unique, inherent challenges just by
the nature of operations: having to manage a wide variety of equipment types across
an equally varied distribution of location sites. Installations that include compressor or
pumping stations, filter skids, well batteries and pipelines entail a wide range of typical
35
Leverage digitalization for asset integrity management
fixed and rotating equip- Conduct asset performance

ment. Often the instal- based approach
lations are cookie cutter
Enterprise Asset
in nature with the same Management Software for a
equipment and the same New Era
equipment numbers at ERP and CMMS: The ties that
each location. bind

It is common for equip- Failure Before it Happens
ment to be moved fre- Should assets be monitored
quently from one location in-house or in the cloud?
to another. With facilities
With all the moving parts in enterprise Leverage digitalization
often spread out over for asset integrity
asset management, there’s little room many remote sites, often management
for inefficiencies. hundreds of miles apart,
it’s a challenge to track powerful combo
ManagerPlus makes it easy to: equipment at all locations.
Plan and execute asset maintenance, inspections, and work orders This makes it difficult to
Keep staff connected and empowered, no matter where they are find assets quickly when
Leverage asset information to gain insights and fuel business decisions
they need to move to
another location. It also
Work faster so you can get your assets back up impedes the efficacy and
and running faster. efficiency of inspection
planning.
managerplus.iofficecorp.com
Traditional and dated AIM

36
processes preclude improvement areas that owner-operators might not be aware ex- Conduct asset performance
ist; for example, time-based inspection planning methods as opposed to risk-based. based approach
Time-based methods rely on a calendar alone to establish inspection frequency, with-
Enterprise Asset
out factoring into consideration the unique profile of the asset, its condition and asso- Management Software for a
ciated inherent risk. Owner-operators could be wasting capital resources on unneces- New Era
sary inspection frequencies. ERP and CMMS: The ties that
bind
Using intelligent analytics such as risk-based inspection (RBI), all asset data is assessed How to Prevent Equipment
for the probability of failure versus the consequence of failure – generating intelligent Failure Before it Happens
inspection schedules that allocate resources to the most critical equipment, while re- Should assets be monitored
ducing inspection frequency for non-critical items. in-house or in the cloud?
Leverage digitalization
Another tendency is to be reliant on a multitude of different tools to manage asset data. for asset integrity
It’s common to have different programs for different asset types, or different programs management
at different facilities. This creates unnecessary chaos in data retrieval and assessment. It’s
difficult to readily access key information for any given asset in a timely fashion – impact- powerful combo
ing both daily decision-making and inhibiting generating an audit trail. Communications
and operations suffer if the left hand doesn’t know what the right is doing.
That is where IIoT comes in. It connects all the physical variances into one “brain”–
managing all data, equipment types and locations from a single continuously updating
data source.
Harness a solution
Digitalization addresses these challenges by closing the gaps among physical assets
technology. Operators then address the following:
37
• Organize inspections per location to eliminate unnecessary site trips Conduct asset performance
based approach
• Smart planning of asset inspections
Enterprise Asset
• Allocate capital to the most critical assets, without wasting budget resources New Era

• Predict and prevent equipment failure or unplanned shutdown bind

• Organize and retrieve asset data from multiple locations instantly, at any time Failure Before it Happens

• Garner useful intelligence from asset data in a timely manner to maximize business in-house or in the cloud?
decisions for optimal production capability and long-term profitability
for asset integrity
For AIM, this comes to fruition as a single tool – typically a software as a service (SaaS) management
application focused on comprehensive mechanical integrity management. When it
comes to a solution, however, one size does not fit all. Especially when factoring in powerful combo
challenges unique to oil & gas. Key features to look at include:
RBI for improved scheduling and planning. Look for configurable RBI, with the abil-
ity to create a unique risk model that fits the company’s profile. It should also offer
pre-configured models to choose from. Quantitative, qualitative, semi-quantitative, or
combination models should be available. Moreover, it should include the flexibility to
choose one model for equipment/piping, another for tanks, yet another for pipelines,
and so forth. OPEX and CAPEX resources are maximized while ensuring greater integ-
rity and operational safety.
38
Integrity operating windows (IOW) continuously monitor asset conditions, providing Conduct asset performance
early alert notifications if those conditions approach or breach pre-defined corrosion based approach
boundaries. This technology can be used in tandem with distributed control systems
Enterprise Asset
(DCS) and data historians. IOW can analyze the operational parameters to provide feed- Management Software for a
back on asset conditions in real-time. This enables operators to quickly step in when an New Era
asset is approaching risky operating conditions, allowing them to utilize predictive main- ERP and CMMS: The ties that
tenance instead of far costlier reactive repair after the asset has already failed. bind

A single, robust database can manage all equipment types across all locations simul- Failure Before it Happens
taneously – to keep track of where the assets are and quickly find them when needed. Should assets be monitored
GPS capabilities for pinpointing the exact, accurate locations of all equipment at any
given time. Save time and effort that would otherwise be spent organizing and manag- for asset integrity
ing where installations are and tracking their movement. management
Smart inspection planning capabilities to know what equipment needs to be inspect- powerful combo
ed reduces returns to a remote site due to equipment being missed. Look for a soft-
ware with the ability to organize inspections per location, to create an inspection plan
prior to arriving to save time and money.
Mobile technology for field data management includes the ability to manage field
inspection management via mobile tablet. It allows inspectors to download work to
their tablet and then synchronize results immediately from the field – facilitating com-
munication and collaboration, expediting the ability to make business decisions.
Ensure regulatory compliance by having all data pertaining to equipment, work, schedul-
39
ing, and inspection results continuously allocated and updated on a single database. Look Conduct asset performance
for a software that is already configured to populate data according to major regulatory re- based approach
quirements, such as API, ASME, ISO, etc. In the case of audit, the operator should be able
Enterprise Asset
to generate a customized, tailored report with the simple click of a button. Management Software for a
New Era
Use the checklist specified in table 1 when vetting technologies for these purposes. ERP and CMMS: The ties that
bind
In addition, look for a How to Prevent Equipment
company that provides Failure Before it Happens
real implementation, Should assets be monitored
training, and ongoing in-house or in the cloud?
technical support. At a
minimum, they should for asset integrity
offer professional consul- management
tants with proven expe-
rience who will support powerful combo
implementation at every
level. This includes com-
ing onsite, assessing your
current program, assisting
in locating and filtering
all legacy data, and de-
veloping a plan of action.
They should help establish
the implementation plan
and support your com-
40
Table 1: Integrity management system
checklist. Courtesy: Metegrity Inc.
pany through the process. They should also provide robust training to ensure that all Conduct asset performance
personnel are best equipped to utilize the software effectively. Finally, ongoing technical based approach
support should always be available to manage the profitability of the software moving
Enterprise Asset
forward. Pay attention also to whether the company provides regular software updates, Management Software for a
as you’ll want to remain on the cutting edge of this technology as it continues to rapidly New Era
evolve. ERP and CMMS: The ties that
bind
Final words How to Prevent Equipment
IIoT changes the game for those in the upstream oil & gas sector. It eliminates the Failure Before it Happens
challenges inherent with so many varying physical assets by connecting them digitally. Should assets be monitored
For AIM, the benefits of digitalization are exceptionally apparent, as it empowers oper- in-house or in the cloud?
ators with the ability to gain actionable intelligence from data. Constant awareness of Leverage digitalization
the full picture at any time supports key business decisions in a proactive manner. This for asset integrity
is made more possible with the latest advances in mobile technology. management
More and more companies are embracing the technological revolution and digitalizing powerful combo
processes for rapidly improved profitability. The sooner companies digitalize, the more
competitive they’ll remain – and the more ready for future advancements like machine
learning and artificial intelligence.
Dave Maguire and Richard Fish

Dave Maguire is an asset integrity specialist with Metegrity Inc. He worked with Shell
Canada for 30 years in inspection, corrosion, major projects and process operations. He
is a long-time member of NACE, the National Association of Corrosion Engineers. Rich-
ard Fish is an API consultant with Metegrity Inc. His background includes 30 years with
Shell Canada in API inspection co-ordination, maintenance and process operations.
41
powerful combo Conduct asset performance
based approach
A more connected enterprise can use both technologies. Enterprise Asset
F rom office supplies and tools to manufacturing components and machines, fixed New Era
assets are a part of day-to-day business operations across almost every industry. ERP and CMMS: The ties that
Although a small piece in the grand scheme of operations, asset tracking is vital for bind
enterprises seeking to maximize their resources and increase efficiency. How to Prevent Equipment
Yet, traditional methods of asset tracking—including barcode-scanning systems and Should assets be monitored
the pen and pencil—require user interaction and costly line-of-sight efforts. For en- in-house or in the cloud?
terprises looking to accurately manage assets without adding labor, radio frequency Leverage digitalization for
identification (RFID) coupled with enterprise asset management (EAM) software can be asset integrity management
highly effective. RFID, asset
management a powerful
RFID tags: an overview combo
While there are several kinds of RFID tags, the type of tag used depends on the char-
acteristics of the assets you are tracking. There’s a difference between tracking large,
low-volume assets like machinery and small, high-volume items, such as manufacturing
parts or components in returnable containers. Here’s a comparison between the two
most common tags under the RFID umbrella: active and passive.
Active RFID tags. With read ranges up to 300 ft, active RFID tags are used for tracking
high-value assets with variable movement throughout large, open facilities. These tags
use battery power to transmit their signals to RFID readers. However, active tags can
be costly and their batteries must be replaced every three to five years.
42
RFID, asset management a powerful combo
Passive RFID tags. For tracking a large volume of low-value items, passive RFID tags Conduct asset performance
are best. Unlike active tags, passive tags depend on a reader’s energy (rather than a based approach
battery) to charge the chip/antenna and then reflect data back to the reader. With a
Enterprise Asset
read range of about 10 ft, passive RFID tags are smaller and less costly than active Management Software for a
tags. But, if greater read ranges are needed, battery-assisted passive (BAP) tags are New Era
an excellent alternative. These tags contain a battery that charges the chip to transmit ERP and CMMS: The ties that
and receive information. bind

Passive RFID technology Failure Before it Happens
With lower costs and a smaller size, passive RFID tags are the most commonly used in Should assets be monitored
the realm of asset management. In a passive RFID system, the RFID reader transmits its in-house or in the cloud?
electromagnetic energy to the tag, “waking it up.” The tag then harvests the power of Leverage digitalization for
the reader to respond by sending its data over the electromagnetic radio waves back asset integrity management
to the reader (this is called “backscatter”). RFID, asset
Then, the reader receives the radio waves, interprets the data and passes it through combo
the server to the appropriate business application. As assets migrate through read
zones, RFID readers can read hundreds of tags at a time, capturing location data and
other information—which become viewable within an organization’s system of record.
Within a passive system, users typically rely on either specialized handheld readers or
fixed-position readers. Specialized handheld readers are usually mobile computers
with built-in RFID readers and antennas. Because they capture data from many tags at
once, these devices are frequently used for auditing or counting functions. Notably,
Bluetooth-attached readers are gaining traction as less costly alternatives to traditional
handhelds. By attaching a Bluetooth RFID reader to existing mobile computers or tab-
43
lets, it is possible to capture read events and transfer the data through mobile devices Conduct asset performance
directly to servers. based approach
Enterprise Asset
On the other hand, fixed-position RFID readers enable staff to automatically capture Management Software for a
read events. Just as their name implies, fixed-position readers are “fixed,” or mounted New Era
to a doorway or threshold in an open area. Without the need for user interaction, fixed ERP and CMMS: The ties that
readers log the read event for presence detection or to trigger a notification when an bind
asset moves from point A to point B. How to Prevent Equipment
Regardless of the type of reader deployed, passive RFID technology adds value to as- Should assets be monitored
set management by reducing audit and counting time (often up to 6.5 percent), there- in-house or in the cloud?
by generating savings in labor costs. RFID also provides the benefit of automating Leverage digitalization for
the update of an asset’s location. For instance, if fixed-position readers are automat- asset integrity management
ically and continuously updating the locations of tagged assets, then staff can begin
RFID, asset
a search function from an asset’s last known location instead of wasting valuable time management a powerful
and resources searching for a particular item. combo
Optimizing asset tracking

While RFID systems can simplify search functions and audits, they do not actually
“manage” the assets throughout their lifecycle. This is where EAM software comes
into play. Specifically, EAM software tracks the entire lifecycle of assets, which includes
financial, physical and contractual information, such as the asset’s price, depreciated
value, location and warranty information. EAM software also tracks calibration, mainte-
nance and chains of custody; supports workflows based on conditions; and automates
compliance and decision-making reporting. With these functions, users can determine
the appropriate course of action for a particular asset.
44
Implementing RFID with EAM software, whereby data collected from the RFID system Conduct asset performance
feeds into the software system, offers a number of benefits. First, you can obtain en- based approach
terprisewide visibility into physical assets to improve operations: What assets do you
Enterprise Asset
have? Where are they located? Who has custody of them? Management Software for a
New Era
Second, you can streamline data entry and reporting, therefore, saving labor hours and ERP and CMMS: The ties that
minimizing risks. How? Physical assets are often purchased via a procurement system, bind
in which information such as the item’s model number and price is recorded. If the as- How to Prevent Equipment
set is above a particular threshold, it is entered into a fixed asset-management system. Failure Before it Happens
From there, that item begins to depreciate until it is retired. Should assets be monitored
During that time, neither the fixed asset-management system nor the procurement Leverage digitalization for
system has any idea where the assets are located, their condition or which employee asset integrity management
checked them in or out. And, if an item is retired or goes missing, the systems do not
RFID, asset
know until staff performs time-consuming, expensive, manual physical-inventory audits. management a powerful
This headache can be eliminated by feeding purchase orders into the EAM systems. combo
In this way, manufacturers fill the gap between the procurement or ERP system and the
fixed asset-management system. The EAM data also can be fed into financial systems
to prepare for depreciation or tax reporting.
To better understand the benefits of combining RFID and EAM software, consider the
following example: Whenever assets entered its facility, an automotive supplier was
manually entering data into a paper-based records system. Not only was this process
time-consuming, but it also created challenges associated with finding, tracking and
inventorying materials, parts and equipment.
45
By implementing an RFID system integrated with EAM software, this automotive com- Conduct asset performance
pany has since reduced its storage area and eliminated daily cycle count and overtime based approach
hours for inventory audits. In fact, the supplier calculated 460% ROI in the first year
Enterprise Asset
alone. Management Software for a
New Era
RFID technology with EAM software is a powerful combination. As you effectively track ERP and CMMS: The ties that
and manage assets throughout their entire lifecycle, you can reduce labor hours and bind
costs spent on locating and auditing assets. In addition, you can leverage the insight How to Prevent Equipment
collected to assist in decision-making that impacts your entire organization. The end Failure Before it Happens
result is a more efficient, accurate and connected enterprise. Should assets be monitored
Tom O’Boyle Leverage digitalization for
Tom O’Boyle is director of RFID for Barcoding Inc. asset integrity management
RFID, asset
combo
46
Enterprise Asset
Mangement
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Enterprise Asset Management Software Optimizes OEE

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Enterprise

3 — Conduct asset performance management with a software-

10 — Enterprise Asset Management Software for a New Era

11 — ERP and CMMS: The ties that bind

14 — How to Prevent Equipment Failure Before it Happens

29 — Should assets be monitored in-house or in the cloud?

35 — Leverage digitalization for asset integrity management

42 — RFID, asset management a powerful combo

based approach management with

M anufacturers embrace digital transformation to boost operational efficiency, New Era

• Setups and adjustments. Conduct asset

Should assets be monitored

ERP and CMMS: The ties that

Should assets be monitored

break down or reach the Conduct asset

ERP and CMMS: The ties that

Leverage digitalization for

With performance, availability and quality measurements, manufacturers can generate

Improve financial performance Conduct asset

How to Prevent Equipment

Conduct asset performance

How to Prevent Equipment

Should assets be monitored

RFID, asset management a