Asset Based Management Systems What to ask, what to expect, what to measure

This presentation will share the lessons learned from 5 years of direct experience sourcing, configuring, implementing and

leveraging an online asset based management system. We will walk through each phase of a project and provide useful watch

outs and considerations

“We can’t manage what we can’t measure” - Executive Teams everywhere

• Operations • Internal Technician

• Vendors • Accounting

• Risk • Fixed Assets

• Tax • Facilities

• Finance • IT

• Capital Control • Purchasing

• Crop. Project teams • Construction

• Accountability • Preventative Maintenance program

• Performance management • Budget to actual/forecast tracking

• Cost control/savings • Contract management

• Standardization of processes • Warranty utilization

• Issue escalation • Service validation

• Root Cause identification • Trend analysis

• Life Cycle cost of assets • Paperless process

• Automate dispatching • Tracking of projects

• Outsourcing • Parts management

• Mobile users • Call Center

• Business Case

– Start with objectives

– Talk to peers in industry

• Project Governance

– Executive sponsorship and oversight

– Who owns project

– Who makes final decision and how

• Project Management

– Use appropriate tools and disciplines that match your organizations size, structure and resources

• Resource identification

– Identify resources for development, implementation and system maintenance

– Cross functional team – Operations, Accounting, Training, IT, Facilities, Tax, Internal Audit, Finance, Purchasing, etc.

Four areas of process improvement

opportunities with these types of solutions

• Work order/Invoice management • Vendor management

• Internal Technician management

• Asset management

Document current work flow processes

• Very important as this will define the detailed requirements for many policies and procedures

• Engage the persons that actually do the work (the devil is in the details)

• Identify a point person for each process (part of project team)

• Identify gaps and inconsistences across different markets – will need to be addressed as part of the change management process

• Be open to changes that will facilitate the technology choices available

• Vendor Standard Operating Procedures

– What are your vendor SOPs today and why?

– What is missing?

– IVR – check in and out of work order (how does system track)

– Sign-off of work order by manager on duty

– Not To Exceed (NTE) process

– Quotes

– Disputed invoices

– Document requirements for vendors and communication plan

– Compliance with processes – what is your position on this and who and how will this be enforced?

• Vendor Support

– Who trains vendors and how?

– Where can they go for help?

– What are the benefits for the vendors?

• Vendor reporting

– Score card

– Invoice review (is this provided)

• Vendor onboarding process

– Cost

– Setup

• In system

• In your accounts payable

– Contracts

– Insurance

– W9

• Performance management

– Score card

– GPS tracking

– Dispatching

– Time card

– On-call/vacation routing

• Parts

– Inventory management

– Replenishment process

– Search other technicians inventories

• Mobile Application

– Create work orders

– Reassign work orders

– Custom fields

– Real time tracking

– Work order history

– Fix incorrect asset

– Filter work orders by location

– Alerts

– Work offline

• Asset identification during work order creation

– Equipment tagging

– Graphic identification in Customer Portal

– Hierarchy of assets in Customer Portal (terminology)

– Process to identify and correct asset selected

• Asset attributes

– Model - Install Date

– Serial - Condition

– Manufacture - Warranty

– Refrigerant

• Different types of assets

– Key Operating Equipment (KOE)

– Non-KOE

• Maintenance of the assets in the system

– When a new asset is installed (like for like replacement)

– New Store Opening

– National roll out of a new asset

– Tracking of life cycle cost

– Warranty setup, flagging and reporting

– Root cause analysis

• Accounts Payable

– Vendor invoices

– Vendor Payment

• General Ledger

– Technician invoices

• Store debit

• Technician Credit

– Accruals

• Internal

• External

• Tax

• Risk (insurance claims)

• Fixed Asset (capital)

• Payroll

• Users (hierarchy)

• Locations (hierarchy)

• Internal Audit

– Reporting requirements (SOX)

– Is there SAS 70 requirement • Historical Data

– What do we have?

– How will this add value in new system?

– Effort to import

– Any constraints to objectives by adding historical data?

• Call Center

– Augment technology

– Vendor compliance of system use

– Escalations – 24/7 monitoring • Customer Portal

– Accountability

– Lower cost

– Self help

– Approval of invoices

– Customer Feedback

• System compliance

– How is it tracked

– What tools are available to enforce

• System maintenance

– Sites

– Users

– Assets

– Providers

– Integration

• Reporting

– What fields are available for reporting

– How are reports created

– Can they be auto run and distributed and how does this work

• Analysis

– Does solution provider do analysis and how

• Prepare a thorough RFI

– Based on objectives and known requirements

– Are you doing it today with a client in a production environment?

– Can I contact them?

• Summary of vendor responses with rating for each

– Completeness of information

– Reference interviews

– Penetration into your specific segment of restaurant industry

– Penetration into of your specific facilities model

• From RFI choose top 3 or 4 vendors to demo their systems

– Allow plenty of time for demos

– Create script using current work flows (be open to changes that accomplish objective)

– Create score card for cross functional project team to use to capture notes and rate each vendor in a consistent way on each aspect of work flows

– Summary of all score cards complied to discuss with project team

• Understand how changes made to system and by whom

– User interface

– Work Flows

– Approval limits

– Users and locations

– Custom Fields

– Track special projects

• Change Management - do not under estimate the need for continuous education

• What’s in it for me - the more compelling reasons for the operators to want to use the system the better

• On-going Training - build system training into standard manager training process

• Policies and Procedures - document and communicate policy and procedural changes as you go

• User Guides - have a place that all users can access and keep them cuurent

“Information is not knowledge” - Albert Einstein

Focus on SMART metrics

• Simple – to understand, collect, manage

• Meaningful – worth the effort (ROI)

• Accurate – exceptions less than 10%

• Real – reflection of desired behaviors

• Timely – enough to impact behaviors

• Operations

– Invoice approval

– Proper prioritization

– Dispatching

– Duplicate work orders

– Deferred maintenance

– Self help resolution

• Vendors

– Customer satisfaction

– On time response

– On time completion

– IVR compliance

– On time invoicing

– Average invoice

– Contract compliance

– Repeat calls (first time repairs)

– Warranty compliance

• Technicians

– Customer satisfaction

– On time response

– On time completion

– Time card hours to hours billed

– Stores per week

– Average invoice

– Repeat calls (first time repairs)

– PMs completed

• Assets – root cause analysis

– Manufacturing issue

– Equipment design/selection

– Operations training

– Technician Training

• Preventative maintenance ROI

– PM completion versus created

– PM to demand ratio

– PM average cost to demand average cost