October 13, 2017
Asset-intensive industries are behind the curve when it comes to modernizing their maintenance operations.
A McKinsey study shows that many asset-intensive industries such as oil and gas, chemicals, utilities, public sector, and construction are lagging other sectors in digitization of the asset management function. This trend has been especially pronounced since 2009 when these industries began underinvesting in enterprise asset management (EAM) because of the crash, and it correlates strongly with reduced productivity growth today.
Return on net assets (RONA) is the key metric used to assess performance. Capgemini studies show that in recent years, RONA is declining in many of these industries.
These organizations can hold more than half of their balance sheets in physical assets. Their ability to fulfill their business mission depends on asset availability, which becomes a critical factor in profitability, ability to serve constituents, and revenue growth. So, it’s clear that asset management needs to become more sophisticated, but knowing how to make that happen is not as evident.
Many organizations hope to jump right in and adopt the most sophisticated tools and techniques available. But every firm’s asset management practices need to mature on a predictable path to achieve the full value from improved asset management.
Progressing towards maintenance maturity
Every EAM action plan should begin by assessing the organization’s current asset management maturity level. You can’t successfully leap to the most sophisticated level of asset management before mastering the entry and intermediate levels—just as you can’t master calculus without understanding algebra, which you can’t master without knowing arithmetic.
Asset maturity starts at the reactive or run-to-fail stage and progresses to execution excellence, a level at which predictive maintenance, IoT, live OEE data, and a focus on reliability are embedded into the maintenance process.
Assessing where you stand and how to get to where you need to be is Capgemini’s mission. Providing a best-in-class, cloud-based asset management system with specialized industry functionality is Infor’s specialty. The partnership of the two companies provides you with a compelling opportunity to improve RONA by taking your organization to maintenance maturity.
Please contact Infor to learn more about initiating your own assessment.