Shared knowledge is key to asset management

The new report from Ultimo is based on rigorous research in the field of EAM, aimed at identifying important developments, understanding asset managers’ challenges and gaining insights to help solve them. It builds on knowledge gained from previous Ultimo studies in 2016 and 2020.

For those unfamiliar with it, EAM is a systematic approach to managing and maintaining the physical assets of a business throughout their lifecycle from design to decommissioning. These assets include fixed items like machines, facilities and buildings, as well as mobile assets such as vehicles. EAM software especially focuses on planning, optimisation, execution and tracking of all the necessary maintenance activities, and takes account of a company’s associated priorities, skills, materials, tools and information.

At best, these technologies can help businesses gain better control over their assets, improving productivity, knowledge sharing, cost control, and Health, Safety and Environment (HSE) compliance. However, based on the findings of the report, many companies still have a long way to go before they can fully leverage the potential EAM offers.

Biggest challenges

The results of the survey revealed that when it comes to KPIs, little has changed since 2016. As in previous surveys, uptime, efficiency and cost-control continue to be key KPIs for asset managers across all sectors. However, the report also showed that there is still a lot of room for improvement when it comes to hitting these targets.

Despite asset managers being measured on performance in these crucial areas, over 60% had experienced unplanned downtime in 2021. Moreover, 80% of the survey respondents did not know the cost of an hour of downtime for their organisation, demonstrating a knowledge gap between the maintenance and management teams. Of the minority that did know the cost, it varied from between 1,000 and 45,000 euros per hour – with the average being 4,860 euros per hour.

Overall, it appeared that cost-control, even though an important performance indicator, was challenging to achieve. The majority of asset managers reported having budgets well in excess of 500k euros, yet nearly a third had exceeded their budget in 2021.

Clearly, both uptime and cost control can be enhanced by managing assets and maintenance more efficiently. While uptime is critical, improvements should not be gained at the expense of excessive spending on maintenance, yet the appropriate safety level needs to be guaranteed, so an appropriate balance is needed. Soundly based decisions on where and how to cut costs most effectively, without adversely affecting operations, depend on good information.

Fortunately, many respondents were planning future investments in technologies that could positively impact both cost-control and uptime. Big data, cloud computing and IoT technologies were the top areas for investment planned within the next 12 months.

Information and communication barriers

Issues around communication, knowledge-sharing and availability of information are a recurring theme in the research results. For example, when asked what their organisation needs to do to enhance its response to unprecedented events, the top answer was ‘improve knowledge sharing and retention’. When asked to name the single most important step needed to future-proof the business, the majority wanted to focus on ‘improving co-operation across the organisation’, followed by ‘investing in the workforce’. The latter could prove vital in the future, as the abundance of older workers retiring is putting pressure on companies to find and retain fresh talent.

Worryingly, over 70% had experienced difficulty recruiting, with 54% giving the main reason as ‘lack of candidates with suitable experience’. This suggests a serious skills gap already exists, making the sharing and retaining knowledge even more essential.

However, the survey revealed a potential obstacle in adopting new technologies that facilitate connected working and more accessible knowledge sharing between teams and facilities. Nearly a third of the asset managers surveyed said that they were uncomfortable using App-based EAM solutions. While over 60% of respondents were already using EAM, there was reluctance to embrace the most recent and advanced technology, with 35% of respondents indicating that they shun cloud-based technologies because they prefer more traditional alternatives. These results could link to the fact that older, potentially less technology-orientated employees nearing retirement age form a significant part of the workforce in many industries, highlight the emerging skills gap.

The lack of accessible data on which to base decision-making can be a major obstacle to efficient asset management and maintenance. With some businesses still relying on traditional methods for tracking asset health and various daily maintenance tasks, holding their information in spreadsheets, in paper-based systems, or even in employees’ heads, it becomes difficult to share and use. At the same time, lack of connection between different information collections means there is no holistic overview of the company’s assets, activities and costs.

The survey highlighted that many asset managers still juggle fractured systems that don't meet their needs. 45% of respondents indicated that they did not have the data they needed. At the same time, a similar number reported that the mix of systems used within their businesses is not integrated - which inevitably leads to silos of information and inefficiencies in the work processes.

Embracing better efficiency

Digitalisation and integration of all data in an EAM system can help overcome many of the above challenges. The software provides a framework for recording, sharing, analysing and making good use of data, enabling companies to gain better visibility over their assets, optimise uptime, increase maintenance efficiency and improve cost control. The EAM system gathers all relevant data across single or multiple departments, divisions and sites into one place and can link to other business systems. Through functionalities including EHS management, autonomous maintenance and shift handover, it can prove invaluable when it comes to improving communication between maintenance, production and safety departments.

Advanced cloud-based EAM solutions, such as Ultimo, ensure that every authorised user has easy access to EAM information and functions via desktop, laptop, tablet or smartphone. This means that they can use their mobile devices to connect with assets, oversee maintenance and add records. Pre-set procedures and checklists guide users through each work process so that different individuals, teams and sites carry it out in a consistent way. In effect, the system captures knowledge from users, retains it, and makes it available across the organisation.

A connected future

The results of the Trend Report 2021 highlight that a greater degree of understanding and communication within organisations is needed to realise greater efficiencies and meet the requirements of uptime and cost control in the short and long term. The combination of EAM systems with mobile and connected solutions undoubtedly has a major role in helping businesses future-proof their assets. It is positive to note that many of the survey respondents appear to be working towards a higher level of digitalisation, with digital and mobile technologies featuring prominently in asset managers’ investment plans for 2022. Technologies such as EAM provide businesses with valuable tools to extend asset life and to improve operational efficiency. They can also prove vital in addressing some of the future challenges by serving as a simple way to share, embed and retain valuable practical knowledge for the benefit of existing and new employees.

Chris van den Belt is team leader product management at Ultimo

To download the Ultimo Enterprise Asset Management (EAM) Trend Report 2021, free of charge, visit www.ultimo.com