Aberdeen: Manufacturers Must Integrate MES/CMMS with ERP to Improve Asset Management
September 21, 2007 // Published as a news service by IHS
| |
| IHS Parts Solutions |
| Source parts, manage obsolescence, comply with regulations and speed time-to-market. For more information and a price quote, please complete the form below. |
|
Manufacturers that integrate a manufacturing execution system/ computerized maintenance management system (MES/CMMS) with enterprise resource planning (ERP) are twice as likely to achieve top status as manufacturers that do not, according to an enterprise asset management benchmarking report by Aberdeen Group.
Aberdeen surveyed more than 230 manufacturers worldwide and classified them as top (20%), industry average (50%) or laggard (30%) performers according to their on-time delivery, plant throughput and overall equipment effectiveness.
According to Aberdeen's findings:
- Seventy-seven% of respondents said reducing manufacturing costs is the foremost market pressure they face. At the same time, they need to address customer demand for quality and shorter lead time.
Because of these and other pressures to remain competitive, many companies look to improve asset management to reduce manufacturing costs and manage spare parts and warranty costs.
According to Aberdeen, interoperability between CMMS and ERP is critical with regard to asset management and performance and determines whether a company ends up in the top-performing or laggard category.
- Manufacturers that have integrated CMMS and ERP - thereby linking their business systems and plant floor systems - also tend to be more mature than their peers without such integration when it comes to adopting process and organizational capabilities. Aberdeen found that although companies with integrated capabilities enjoy executive ownership of their asset management initiatives, these initiatives are implemented and managed at the local level.
In addition, such companies typically collect asset and spare parts usage data in real time and then use ERP to communicate that data enterprisewide so it can be used to assess asset performance and condition and spare parts usage.
- In addition to linking technology applications, integration enables manufacturers to streamline maintenance and production planning, improves the ability to replenish spare parts and schedule labor and facilitates companywide visibility of the asset lifecycle so that companies can be more responsive and make better asset management decisions and future purchases.
With these findings in mind, Aberdeen recommends that the 45% of companies that have yet to integrate MES/CMMS and ERP:
- Obtain executive support for asset management initiatives while allowing managers at the local level to implement and manage the programs.
- Automate asset data collection to capture real-time information about asset condition as well as stay on top of spare parts replenishment.
- Integrate their MES/CMMS and ERP systems to improve maintenance operations and enhance insight into the asset lifecycle.
For more information about the Benchmarking Enterprise Asset Management Report, go to http://www.aberdeen.com.
Source: Aberdeen Group.