Wednesday, August 18, 2010

EAM versus CMMS: What's Right for Your Company? Part Two: Integration Concerns

Many of the benefits from enterprise asset management (EAM) software result from the ability to exchange data from other systems and subsystems. These interfaces are not trivial in design or construction. For example, one of the simpler interfaces involves inventory. Namely, EAM software needs access to inventory to determine the availability of repair parts, whereas your manufacturing system needs access to inventory to dispense ingredients or bills of material (BOM). Typically, EAM software will have its repository of inventory consisting of repair parts. On the other hand, a manufacturing ERP system will have its repository of inventory, which can accommodate ingredients, BOM, and repair parts. Designers of manufacturing systems are not that short-sighted to think that every company has computerized maintenance management systems (CMMS) or EAM software.

Some basic questions include

* Where is the official inventory maintained?

* How do you keep the inventories in sync?

* What flares will go off when they go out of sync?

* How do you put them back in sync?

However, in the software development world, these are difficult questions to answer and design for; moreover these are just the tip of the interface iceberg. The table below lists some of the potential EAM interfaces.

Granted some of these may be overkill, but, even if only half are needed or desired, the interface issues and construction represent a major commitment of time and resources, now and in the future. The good news is that if you can satisfy all of your software needs from a single source, which can be done through IFS and Intentia, your interfaces are most likely already resolved for you*. Again, this is a strong selling point for IFS and Intentia.

However, while most companies recognize the value of EAM software, many have not even taken the first step. These companies, of necessity, already have existing systems to control their inventory, payables, manufacturing, payroll, and other functions and, due to time and monetary considerations, are not likely to give to them up for new, fully integrated software. The bottom line? Companies selecting a new ERP system should include a review of the EAM functions in each product, particularly in process and asset intensive industries where good EAM is frequently seen as being critical to the business. However in most cases, companies will acquire EAM software but the interfaces to external systems will have to be constructed.

When providing a stand-alone solution, vendors may oversimplify the interface issues by suggesting the availability API's (application programming interfaces) or software-based integration services. They may also pressure you into buying more modules than you need. These statements may have validity. However, in the case of interfaces, it may be wise to be the "Doubting Thomas as you move to Missouri, the show me'" state: this is clearly a case where you must do your homework beforehand and not solely rely on the claims of the provider. Request references from clients who have actually created interfaces; determine the time and effort required; check the cost of any customization to meet your specific needs as a so-called "standard" interface rarely meets these; and verify that there are no degradation of performance on either side of the interface—existing and EAM software.

This is Part Two of a four-part note.

Part One defined EAM and CMMS.

Parts Three and Four will present an analysis of two major vendors.

*In this note offerings from software vendors IFS AB (XSSE: IFS) and Intentia (XSSE: INT B), two fellow Swedish providers of enterprise business applications for mid-size and large enterprises, are used to help illustrate some of the advanced features of EAM.




source
http://www.technologyevaluation.com/research/articles/eam-versus-cmms-what-s-right-for-your-company-part-two-integration-concerns-17212/

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