Tuesday, December 1, 2009

The Decline in Importance

The advent of the financial reporting and management capabilities of some modern day ERP systems has caused a shift in the focus and drive of companies purchasing CMMS systems. During the past three years I have been involved in the sale and implementation of three enterprise level management systems. (This is a rather long sales process) I am currently involved in the pre-sales evaluations of various others.

During all of this time, while maintenance have normally been consulted, it is the heads of departments such as financing and product sales departments that are either making decisions or are vetoing the selections of systems focused on reliability functionalities in favor of others. This trend, which I have seen in an exaggerated manner recently at lower levels within various organizations, is not only astounding but also somewhat disturbing.

The enterprise level system is starting to be aimed at financial managers One of the more successful ERP vendors, to my knowledge although I am sure there are others, actually considers it to be its corporate focus to cater to these positions of financial management in any enterprise. Even the amount of after sales support is focused on financial departments. While maintenance departments, where there are very real, very large, and very important issues to be managed are left to their own devices.

So in effect we are seeing, on a global scale, the subjugation of issues of reliability, safety, cost effectiveness, asset integrity, and corporate resource planning to the management of financial reporting and procedures. The recent Enron disaster and other similar recent events, it appears certain, will further enhance this perceived requirement in the financial areas.

I was once a firm believer in the coming age of the CRO, or Chief Reliability Officer as a permanent corporate position akin to that of the COO, Chief Operating Officer. Although still a firm believer in the necessity of this position, it no longer appears to be a possibility in the short to medium term.

Maintenance professionals need to put the case for reliability and management of maintenance firmly back on the corporate agenda so that we will be able to really achieve strong leaps forward in reliability, cost effectiveness, and strategic advantage in our organizations. As long as the reliability responsibilities of corporations are not understood or given low priority in overall goal setting, we are doomed to have many future decisions regarding the requirements of maintenance determined by decisions in other areas of corporate activity.

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