The CMMS industry is divided into various styles of system providers, all of which are defined within the book CMMS: A Timesaving Implementation Process. For the requirements of this position paper we will only be speaking about the two main types. Those are ERP (Enterprise Resource Planning) and EAM (Enterprise Asset Management) style systems.
Figure 1.
This is Part Two of a three-part article that is based on the book, CMMS: A Timesaving Implementation Process by Daryl Mather.
Part One discussed the strategic importance of Maintenance Management.
Part Three will present a template for successful implementations of CMMS.
ERP Systems
The modern day ERP system is built on the needs of management of production planning and the optimization of resources to carry out these plans. Effectively they are the products of the MRP and MRP2 theories and methodologies. There has been an enormous expansion in the use and implementation of these systems due to various factors. Principally however the manufacturing sector, at a global level, is immense. Secondly there has been the trend towards financial management requirements as detailed above. ERP systems tend to be outstanding performers in these two areas in particular. However it needs to be understood that the management of maintenance is not, and never has been, a part of the MRP methodologies.
Thus the implementation of these systems is generally not done with the requirements of the maintenance function in mind. Some of these style systems have developed reasonably strong maintenance management functionality, but the overall focus is not on the management of resources and information in the manner required by maintenance professionals.
EAM Systems
EAM systems have descended from the needs of maintenance in capital intensive industries. When we commonly refer to as CMMS we are, more often than not, referring to the functionality that is encapsulated in the large EAM style systems. Today they are truly enterprise level systems and include the relevant sub systems for managing finances, materials, human resources and even sales in some systems.
The EAM system is unique in its model for management of materials for capital intensive industries, and maintenance functionality in general. This is further given credibility by recent moves of major ERP producers to develop and market EAM style systems.
The Market
The market has grown increasingly competitive in both these areas. In the beginnings of the industry it was very much a vendors market, however today it is more and more a market determined by the buyer. The options among the low, medium, and high-end systems are staggering.
Within the next few years those CMMS providers that do not comply with the basic requirements of maintenance, will find themselves on the declining end of the CMMS market, or even extinct. Maintenance can and should be more demanding regarding CMMS functionality and pricing, the ability to find a good deal among providers is greater than ever and is set to become increasingly so. Yet the great many of the buyers in today's sales are blissfully unaware of many of these factors and distinctions, leading even further towards the failure of systems and to their outright overpricing in many instances.
During the last two years in particular the sales of large end CMMS systems has dropped off significantly. There is a large amount of discontent and disillusionment over what benefits can be provided and how much needs to be invested to receive these benefits. There are a great number of CMMS disasters also. These include projects that do not deliver the promised benefits or the promised changes in the operations that clients were originally offered. Although this market is starting to pick up again, it remains an area of doubt and of overriding discontent.
Recent development in this area is the employment of web-based functionality to deliver the maintenance administration function. The implications in this area are immense, and will see the emergence of a whole new range of services that will be offered and that will lend themselves to outsourcing style arrangements. However current technology leaves a great deal to be desired in terms of delivering comparable functionality
Conventional views on software development and sales tell us that this will be not allow ASP's to be truly competitive in today's marketplace. However recent surveys by respected commentators in the area show major increases in the application and use of ASP systems — mainly in the small to medium range companies. This appears to be due mainly to the expense and complexity of major large-scale systems.
Therefore it can be seen that the advanced functionalities of the major large-scale systems may have reached the point of diminishing returns, whereby companies are deciding to buy systems with less functionality due to price considerations.
source
http://www.technologyevaluation.com/research/articles/cmms-templates-for-effective-implementations-part-two-the-cmms-industry-and-erp-16919/
Figure 1.
This is Part Two of a three-part article that is based on the book, CMMS: A Timesaving Implementation Process by Daryl Mather.
Part One discussed the strategic importance of Maintenance Management.
Part Three will present a template for successful implementations of CMMS.
ERP Systems
The modern day ERP system is built on the needs of management of production planning and the optimization of resources to carry out these plans. Effectively they are the products of the MRP and MRP2 theories and methodologies. There has been an enormous expansion in the use and implementation of these systems due to various factors. Principally however the manufacturing sector, at a global level, is immense. Secondly there has been the trend towards financial management requirements as detailed above. ERP systems tend to be outstanding performers in these two areas in particular. However it needs to be understood that the management of maintenance is not, and never has been, a part of the MRP methodologies.
Thus the implementation of these systems is generally not done with the requirements of the maintenance function in mind. Some of these style systems have developed reasonably strong maintenance management functionality, but the overall focus is not on the management of resources and information in the manner required by maintenance professionals.
EAM Systems
EAM systems have descended from the needs of maintenance in capital intensive industries. When we commonly refer to as CMMS we are, more often than not, referring to the functionality that is encapsulated in the large EAM style systems. Today they are truly enterprise level systems and include the relevant sub systems for managing finances, materials, human resources and even sales in some systems.
The EAM system is unique in its model for management of materials for capital intensive industries, and maintenance functionality in general. This is further given credibility by recent moves of major ERP producers to develop and market EAM style systems.
The Market
The market has grown increasingly competitive in both these areas. In the beginnings of the industry it was very much a vendors market, however today it is more and more a market determined by the buyer. The options among the low, medium, and high-end systems are staggering.
Within the next few years those CMMS providers that do not comply with the basic requirements of maintenance, will find themselves on the declining end of the CMMS market, or even extinct. Maintenance can and should be more demanding regarding CMMS functionality and pricing, the ability to find a good deal among providers is greater than ever and is set to become increasingly so. Yet the great many of the buyers in today's sales are blissfully unaware of many of these factors and distinctions, leading even further towards the failure of systems and to their outright overpricing in many instances.
During the last two years in particular the sales of large end CMMS systems has dropped off significantly. There is a large amount of discontent and disillusionment over what benefits can be provided and how much needs to be invested to receive these benefits. There are a great number of CMMS disasters also. These include projects that do not deliver the promised benefits or the promised changes in the operations that clients were originally offered. Although this market is starting to pick up again, it remains an area of doubt and of overriding discontent.
Recent development in this area is the employment of web-based functionality to deliver the maintenance administration function. The implications in this area are immense, and will see the emergence of a whole new range of services that will be offered and that will lend themselves to outsourcing style arrangements. However current technology leaves a great deal to be desired in terms of delivering comparable functionality
Conventional views on software development and sales tell us that this will be not allow ASP's to be truly competitive in today's marketplace. However recent surveys by respected commentators in the area show major increases in the application and use of ASP systems — mainly in the small to medium range companies. This appears to be due mainly to the expense and complexity of major large-scale systems.
Therefore it can be seen that the advanced functionalities of the major large-scale systems may have reached the point of diminishing returns, whereby companies are deciding to buy systems with less functionality due to price considerations.
source
http://www.technologyevaluation.com/research/articles/cmms-templates-for-effective-implementations-part-two-the-cmms-industry-and-erp-16919/
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