Home > Articles > Asset Manager

Voices: Asset Manager

Energy management and the CMMS

David Berger, P.Eng., contributing editor, says what it represents will be here long after "Green" is gone.

By David Berger, P.Eng.

One of my favorite questions to pose to participants of the many conferences and seminars for which I’m asked to speak is, “Do you think Green is the latest flavor of the month, or is it here to stay?” For the past few years, about 50% of participants in this informal survey are convinced that Green is a passing fad, and will no doubt be eclipsed by some other business concept with a fancy buzzword or three-letter acronym. Perhaps they are right about the term “Green,” but I would strongly argue that what this term represents is definitely here to stay. For example, energy management, a key component of Green, continues to grow in importance. Consider:

• MRO spending: U.S. companies spend about $100 billion annually on capital equipment and services
• Energy spending: U.S. companies spend about $400 billion annually on energy, and that number is climbing
• Next to personnel, the single greatest cost for a typical manufacturing facility is energy
• Tighter regulations regarding greenhouse gas emissions are likely in the near future — in anticipation of this, some companies are viewing efficient and effective energy management as a strategic imperative to stay competitive

This begs the question as to whether many companies are truly focused on the right things. Many operations and maintenance managers aren’t reporting regularly on simple measures such as energy consumption for key assets. Utility bills for electricity, water and fuel tend to aggregate costs so they are difficult to identify and manage for individual loads, production lines or assets. Additionally, invoices arrive and are analyzed long after the fact. Relevant tools such as your CMMS aren’t being used optimally to monitor and analyze usage and condition data. This means opportunities for improvement are most certainly missed.

Conduct an audit: A useful first step in identifying and capitalizing on improvement opportunities is to conduct an audit of your operations and facilities. Many third-party companies specialize in this and might even be willing to base their fees on savings identified and realized. As well, energy product vendors (eg, lighting or power generation equipment suppliers) might be willing to conduct a more limited audit as it relates to their product lines, at no cost to you.

Whether performed by internal or external resources, the audit typically begins with examination of your consumption and spending for electricity, water, steam, gas, air and liquid fuels. Other areas investigated for improvement potential as part of the energy audit are detailed in the accompanying sidebar.

In many cases, a modern CMMS can provide some of the data. Audit results are then compared against industry and universal benchmarks to determine the gap, both qualitatively and quantitatively.

Monitor usage and analyze data: Energy consumption can be monitored using automation tools such as programmable controllers, SCADA, building management systems or specialized monitoring equipment the OEM built into the asset. Of course, sophisticated CMMS packages have features and functions that can aid in data collection and analysis from all sources. The CMMS can act as the central depository of enterprise-wide asset management information, to support more strategic decisions based on an asset’s complete lifecycle. Features to look for in a CMMS include:

• Ability to track energy use by asset and asset type, for electricity, water and gas, including rate detail at the meter level and consolidation of data along the asset hierarchy for the enterprise
• Ability to analyze use data to determine patterns and identify anomalies for an asset type, age, location, product/process being run, maintenance program in place and so on
• Condition-based monitoring functionality to ensure process variables remain within user-defined limits, thereby optimizing energy consumption
• Notification, alarming or alerts to draw attention to when an asset is trending out of control, for example, an asset that is overheating, fuel consumption rising beyond expectation or a component moving out of alignment
• Nested and hierarchical problem, cause and action codes to assist in diagnosing a problem such as excessive energy consumption, and determining what action to take, ie, what action codes are applicable to which root causes, and in turn, which cause codes to which problems
• Analytical tools such as Pareto capability to determine the most frequent or costly problem codes (eg, power surge) associated with an asset or asset type; correlation capability to determine if the problem code relates to environmental conditions, asset characteristic, equipment age, etc.; and root cause analysis to determine why the problem is likely occurring (eg, faulty installation)
• Ability to establish performance measures and targets for improvement (eg, asset performance, energy consumption) and track progress against the targets
• A library of standard reports, such as electricity consumption by asset, that can be filtered, sorted and easily configured, as well as a report and graphics generator for customized reports and ad hoc queries
• Sophisticated reporting tools such as a user-definable dashboard for getting the big picture on asset condition, quickly identifying areas that need management attention and drilling down on data for determining root cause

E-mail Contributing Editor David Berger, P.Eng., partner, Western Management Consultants, at david@wmc.on.ca.

---

More Voices

Energy management and the CMMS
03/08/2010
David Berger, P.Eng., contributing editor, says what it represents will be here long after "Green" is gone.

The growing value of a CMMS
02/03/2010
David Berger, P.Eng., contributing editor, explores how to build the business case for better asset management.

Asset lifecycle management
01/08/2010
David Berger, P.Eng., contributing editor, says it's characterized by complexity, and it's driven by risk.

Improving shutdown management
12/07/2009
David Berger, P.Eng., contributing editor, says it's a matter of timing, scale and using the CMMS.

The best and brightest
11/06/2009
David Berger, P.Eng., contributing editor, says get more from your CMMS with effective recruiting and retention.

Prove it
10/08/2009
David Berger, P.Eng., contributing editor, explores CMMS strengths that help you handle regulatory compliance.

Planning versus scheduling
09/02/2009
David Berger, P.Eng., contributing editor, says think of it as "what" as opposed to "when."

Optimize spare parts
08/07/2009
David Berger, P.Eng., contributing editor, says get more from your inventory and suppliers.

Step by step
07/08/2009
David Berger, P.Eng., contributing editor, explains how to get more from your CMMS through process mapping.

Flexible, agile and scalable
05/26/2009
David Berger, P.Eng., contributing editor, details critical CMMS properties for organizations on the move.

CMMS provides real-time transparency
04/28/2009
David Berger, P.Eng., contributing editor, explains how your CMMS gives maintenance a clear view of the current situation.

The changing role of the CMMS vendor
04/07/2009
David Berger, P.Eng., contributing editor, says you should expect more than a shrink-wrapped box of software from your supplier.

The good and bad of OEE
03/09/2009
David Berger, P.Eng., contributing editor, says overall equipment effectiveness is a powerful, meaningful metric if you’re aware of what it excludes.

Keep maintenance up in a down economy
02/10/2009
Contributing Editor David Berger, P.Eng., says these techniques can help you avoid getting hurt by a sharp budget cut.

CMMS versus EAM
01/13/2009
Contributing Editor David Berger, P.Eng., says it’s the most frequently asked question during the past decade.

Aging workers
12/02/2008
Contributing Editor David Berger, P. Eng., shows you how to make the most of tough demographics.

Threats or opportunities?
11/10/2008
Here are seven trends that Contributing Editor David Berger, P. Eng., says you’d best address with your CMMS.

Change management
10/06/2008
In Part 2 of this article, David Berger, P.Eng., contributing editor, reminds you not to forget the human factor when designing a CMMS implementation process.

Change management
09/05/2008
Part 1: David Berger, P.Eng., contributing editor, says it's important to focus on getting universal buy-in when you’re trying to launch an initiative.

Where are your assets?
08/11/2008
Contributing Editor David Berger, P.Eng., says integrating GIS/GPS with your CMMS reveals where your assets are and much more.

Knowledge from a distance
07/07/2008
Contributing Editor David Berger, P.Eng., says RFID smart tags can minimize your data-entry drudgery.

Watch your language
06/09/2008
Contributing Editor David Berger, P.Eng., explains how communications planning is vital to the success of your CMMS project.

Avoid the rocks
05/08/2008
David Berger, P.Eng., contributing editor, says if you steer your CMMS project carefully, you’ll be able to manage the risks.

Grow greener plants
04/03/2008
Contributing Editor David Berger, P.Eng, says adopting an aggressive energy-management program is the right thing to do, regardless of rationale. Many of the initiatives under such a program are low-cost and easy to implement.

Enterprise thinking
03/07/2008
Companies stand to lose a lot by allowing individual sites to deviate from an enterprise-wide CMMS solution.

Asset Manager: Why Six Sigma?
02/05/2008
Because three isn’t enough, says Contributing Editor David Berger, P.Eng. Maintenance departments can benefit from Six Sigma programs.

Use people skills and your CMMS to build management excellence
12/10/2007
Contributing Editor David Berger, P.Eng., says frontline supervisors are absolutely critical in ensuring the success of any major change initiative, such as implementing a new CMMS or getting more out of an existing one.

Who are you going to call for CMMS help?
11/07/2007
CMMS software has progressed dramatically in learning and productivity aids for users. Take advantage of the help features in your CMMS package to find a better way to accomplish a task, or to find new features.

Treat your technicians right
10/08/2007
There are several different organizational approaches to managing your technical staff. Asset Management expert David Berger examines the pros and cons of each in his latest column.

Navigation features can differentiate CMMS
09/06/2007
Helping users navigate their way through the complex maze of today’s sophisticated software applications is clearly a priority for modern CMMS vendors. You should be aware of various navigation aids and the principles behind them.

CMMS can rank your critical assets
08/10/2007
Reliability-Centered Maintenance (RCM), Condition-based Monitoring (CBM) and Root Cause Analysis (RCA) can be overwhelming. David Berger offers some tips on how to get the most out of these advanced techniques.

Improvements in CMMS data entry make systems more efficient
07/02/2007
CMMS vendors have developed data tools for helping you enter data as efficiently and painlessly as possible. These are especially useful, given the harsh environments some maintenance departments face.

CMMS budgeting and control functions help manage costs
06/07/2007
This second part of a two-part article discusses how your requirements have driven a few CMMS vendors to add more sophisticated functionality. These include advanced budgeting and cost management features, sayd David Berger in his latest column.

CMMS budgeting and control functions help manage costs
05/01/2007
You’ll find the level of sophistication of the budgeting and costing features integrated into many CMMS packages rivals any ERP or accounting package, says David Berger in this month's Asset Manager column.

Advanced failure analysis methodologies and techniques
04/07/2007
Use these advanced failure analysis methodologies, such as failure mode and effects analysis, realibility-centered maintenenance and root cause analysis to manage your risk, says David Berger in his monthly Asset Manager column.

Learn the basics of failure analysis techniques and risk mitigation
03/07/2007
As CMMS vendors search for ways to differentiate their products and services in light of increased competition, many have enhanced their offerings to include a variety of powerful failure analysis techniques and risk mitigation strategies. Asset Management Expert David Berger illustrates some of the more basic techniques and simple strategies to mitigate risk and exploit improvement opportunities.

People are your greatest asset
02/07/2007
Although most companies spend more money on hard assets such as facilities, equipment, and infrastructure, it’s unquestionably true that people are your greatest asset. How well management determines the business needs that drive job requirements, then matches the right people with the right jobs, affects profitability, says David Berger, P. Eng., in his latest Asset Manager column.

Maintenance initiatives to build a safer, more sustainable world
01/01/2007
Learn some of the ways a maintenance department can minimize waste, use more sustainable materials and systems, and use energy more efficiently.

Use CMMS features to optimize workflow
12/04/2006
If you’re looking for ways to improve maintenance department efficiency and effectiveness, and ultimately get more out of your assets, consider streamlining your critical workflows - work order management, PM and condition-based maintenance, scheduling and reporting.

There might be a place for manual CMMS
10/30/2006
Managing maintenance need not be costly or difficult. If you have plant with five or fewer technicians, it's possible to forego a formal CMMS and keep track of everything with good ol' fashioned paper and pencil, says David Berger, P. Eng., in his latest column.

Industry-specific features in CMMS
10/07/2006
As software functionality and user needs become more sophisticated, CMMS vendors are developing niche features, modules or entire product lines that cater to a given market segment. Contributing Editor David Berger, P.Eng., says for true industry specialization, look for CMMS vendors with industry experts on staff.

Incentive-based CMMS implementation
08/30/2006
Implementation is hard, especially with programs such as Lean, Total Productive Maintenance, Reliability-Centered Maintenance or CMMS. Learn the common pitfalls and how to successfully implement CMMS.

Six steps to condition-based maintenance
07/26/2006
An exciting trend in the world of CMMS is the increasing sophistication of condition-based maintenance (CBM) features and functions vendors offer and maintenance professionals actually use. Perhaps we’re finally turning a corner on the age-old firefighting mentality, replacing it with a more planned environment.

Keeping your yardstick consistent
06/05/2006
The demand for calibration from your CMMS product has increased dramatically in recent years, as competitive and regulatory pressures force manufacturers to become more vigilant about ensuring product quality.

Corporate social responsibility
05/01/2006
Corporate social responsibility (CSR) is a growing phenomenon worldwide that’s trying to change the role and nature of corporations. CSR deals with the thorny issues around a corporation’s responsibility to society, and how it relates to the company’s traditional commitment to maximize shareholder profits.

Control the life cycle
04/05/2006
Financial pressures often force companies to make hasty short-term changes, like cutting costs in maintenance and consulting. David Berger says in his monthly Asset Manager column that it's best to maintain focus and stick to a capital asset management plan.

Safety and the CMMS
03/06/2006
Software can help reduce the risk of personal injury, says David Berger in his monthly Asset Manager column.

Best practices start with training
02/07/2006
A popular best practice for maintenance management is employee motivation. Sometimes the best motivation is a solid training program.

Beyond the enterprise
01/02/2006
Contributing editor David Berger says it's wise to look at the MRO chain for additional efficiencies.

The best practices project
12/06/2005
Here’s an opportunity to benchmark using real-world data

2000 CMMS/EAM Software Review
03/08/2003
Successful implementation means getting beyond which software has the most features and functions.

2002 CMMS/EAM Software Review
04/04/2002
A detailed analysis of CMMS and EAM software packages and major trends.