ERP Asset Management
systems versus best-of-
breed CMMS
© 2007 Shire Systems Limited
I’m telling you,
you’ll use the
ERP system!
It’s crap for
maintenance! I
need my CMMS
© 2007 Shire Systems Limited
ERP versus CMMS
Needs…
The Engineering Manager seeks to
streamline maintenance activities,
automate admin tasks and access
comprehensive decision-making, problem
solving, planning and control information
Senior management seeks integration of
the enterprise with consolidated financial
reports
© 2007 Shire Systems Limited
ERP versus CMMS
CMMS is primarily a forward-looking, technical
management system. It addresses practical, real-time
maintenance needs in the workplace. It is an essential
tool, aiding increased effectiveness and efficiency of work
management and asset care. It drives more and better
quality output, regulatory compliance and optimal
operating costs
ERP is primarily a backward-looking, financial
management system. It is concerned with enterprise
overview and business process integration - human
resources, payroll, inventory, financial management and
supplier collaboration
The advantages offered by the two systems are very
different and, by and large, mutually exclusive
© 2007 Shire Systems Limited
ERP versus CMMS
CMMS is primarily a forward-looking, technical
management system. It addresses practical, real-time
maintenance needs in the workplace. It is an essential
tool, aiding increased effectiveness and efficiency of work
management and asset care. It drives more and better
quality output, regulatory compliance and optimal
operating costs
ERP is primarily a backward-looking, financial
management system. It is concerned with enterprise
overview and business process integration - human
resources, payroll, inventory, financial management and
supplier collaboration
The advantages offered by the two systems are very
different and, by and large, mutually exclusive
The net effect on the bottom line is what matters
© 2007 Shire Systems Limited
ERP advantages
There is ONE…
© 2007 Shire Systems Limited
ERP advantages
There is ONE…
Enterprise integration!
© 2007 Shire Systems Limited
ERP disadvantages
There are many…
© 2007 Shire Systems Limited
ERP disadvantages
There are many…
Creates complexity and rigidity
Clumsy usability impedes and slows down users
- especially maintenance users doing critically
valuable work. Google it and read about their
misery!
Unsuitable for smaller companies where
flexibility, agility and slick administration are vital
to competitiveness
The initial and on-going cost of ownership is
huge
more…
© 2007 Shire Systems Limited
ERP disadvantages
Heavy customisation is necessary to shape
them to an organisation’s needs – the changes
are usually complicated and costly
Upgrades are complex – because the system’s
‘source code’ often has to be changed
Consultants are usually involved – their fees are
high and they’re notorious for not transferring
know-how to their customers
The aggregated costs in ERP systems disallow
proper detailed analyses of activities and
events. There is inadequate support for
continuous improvement initiatives
more…
© 2007 Shire Systems Limited
ERP disadvantages
They’re not intuitive, easy to pick up, or user-
friendly. This demoralises users and fosters
resentment – which can cripple the system
implementation and totally defeat its purpose
Additional resources have to be be invested in
‘driving’ the system – because an ERP
implementation does not gather a natural
momentum of its own
And finally, despite their popularity, few ERP
implementations have proven to add net value to
a business – they’ve provided no positive ROI!
© 2007 Shire Systems Limited
CMMS advantages
Simple and flexible – provides users with practical
help and workflow discipline without stifling them
Crafted to fit precisely with the way engineers wish
to work
Easy to use and intuitive for the casual user
Can be straightforwardly configured to the needs
of individual organisations without changing the
source code – there’s no need for expensive
customisation
Low initial cost – very, very low with FrontLine and
Pirana
Low continuing cost of ownership
© 2007 Shire Systems Limited
CMMS advantages
Upgrades can be installed simply, without the
need for IT experts
The cost information available in CMMS is much
more detailed than in ERP systems. This
enables powerful, forward-looking what-if
analyses and targeted continuous improvement
Morale amongst users is higher because the
system is both user-friendly and helpful to them
in carrying out their daily tasks
© 2007 Shire Systems Limited
CMMS advantages
Less management effort is needed to drive the
system because the users are not hostile – they
are much less likely to look for ways of
minimising and defeating its use and so become
more aware of its benefits and supportive of its
purpose
© 2007 Shire Systems Limited
Engineering managers ALWAYS choose
best-of-breed CMMS, whereas ERP
maintenance systems are imposed on
them from on high – and against their
protestations and better judgement
© 2007 Shire Systems Limited
Engineering managers ALWAYS choose
best-of-breed CMMS, whereas ERP
maintenance systems are imposed on
them from on high – and against their
protestations and better judgement
© 2007 Shire Systems Limited
Using ERP for maintenance is a bit like this…
© 2007 Shire Systems Limited
Using ERP for maintenance is a bit like this…
© 2007 Shire Systems Limited
Using ERP for maintenance is a bit like this…
Sir, I am a
specialist! For the
best outcome I
need to work with
a scalpel
© 2007 Shire Systems Limited
Using ERP for maintenance is a bit like this…
Sir, I am a
specialist! For the
best outcome I
need to work with
a scalpel
who is really best
placed to decide?
© 2007 Shire Systems Limited
The ERP decision
Driving forces
Enterprise ERP
integration ‘kudos’
Decision
High High Difficult Difficult Frustrating
initial cost on-going cost to install to upgrade to use
Restraining forces
© 2007 Shire Systems Limited
The ERP decision
So and so’s got one -
so it must be good -
so I want one too!
Driving forces
Enterprise ERP
integration ‘kudos’
Decision
High High Difficult Difficult Frustrating
initial cost on-going cost to install to upgrade to use
Restraining forces
© 2007 Shire Systems Limited
The ERP decision
Driving forces
Enterprise ERP
integration ‘kudos’
Decision
High High Difficult Difficult Frustrating
initial cost on-going cost to install to upgrade to use
Restraining forces
© 2007 Shire Systems Limited
The ERP decision
Hmm! What’s the
bottom line ROI and
ROA for this ERP?
Driving forces
Enterprise ERP
integration ‘kudos’
High High Difficult Difficult Frustrating
initial cost on-going cost to install to upgrade to use
Restraining forces
© 2007 Shire Systems Limited
The ERP decision That may well be the right
Hmm! What’s the question! But it’s necessary to seek
bottom line ROI and out and weigh all opinion to ensure
ROA for this ERP? fantasy doesn’t prevail over fact
Driving forces
Enterprise ERP
integration ‘kudos’
High High Difficult Difficult Frustrating
initial cost on-going cost to install to upgrade to use
Restraining forces
© 2007 Shire Systems Limited
The ERP decision
Driving forces
Enterprise ERP
integration ‘kudos’
High High Difficult Difficult Frustrating
initial cost on-going cost to install to upgrade to use
Restraining forces
From where I’m
standing, the
choice is obvious!
© 2007 Shire Systems Limited
The ERP decision
Logically, it
appears that we
should have both!
Driving forces
Enterprise ERP
integration ‘kudos’
High High Difficult Difficult Frustrating
initial cost on-going cost to install to upgrade to use
Restraining forces
© 2007 Shire Systems Limited
ERP rivals – SAP, Infor & IBM
© 2007 Shire Systems Limited
ERP rivals – SAP, Infor & IBM
By producing their own PM system, SAP
have bravely ventured into an area that
their US-based rivals avoided
In the USA, SAP rivals bought out best-of-
breed asset management software
companies to augment their ERP
portfolios – Infor bought Datastream and
IBM bought MRO Maximo
© 2007 Shire Systems Limited
ERP rivals – SAP, Infor & IBM
By producing their own PM system, SAP
have bravely ventured into an area that
their US-based rivals avoided
In the USA, SAP rivals bought out best-of-
breed asset management software
companies to augment their ERP
portfolios – Infor bought Datastream and
IBM bought MRO Maximo
Who do you think got it right?
© 2007 Shire Systems Limited
SAP PM
From published
accounts, blogs and
comments, as far as
usability is
concerned, many
maintenance
professionals see this
particular ERP
maintenance
management system
as a bit of a…
© 2007 Shire Systems Limited
SAP PM
From published
accounts, blogs and
comments, as far as
usability is
concerned, many
maintenance
professionals see this
particular ERP
maintenance
management system
as a bit of a…
© 2007 Shire Systems Limited
SAP PM
The evidence is
right there on
© 2007 Shire Systems Limited
Summing up…
The maintenance process is a technical assurance
process and fundamentally different from the supply
chain, accounting and material transformation
processes in an MRP-ERP system
Whilst labour and material reconciliation may be
important, its much less important than having a
friendly, fast and agile technical management support
tool
CMMS is the practical and proven tool for supporting
the Engineering Manager and the maintenance team in
the workplace
Maintenance system implementation is a maintenance
project not a software project
© 2007 Shire Systems Limited
Summing up…
Users will always recognise when a system is poor.
And they resent doing things for which they see no
value or which are clumsy, overly time-consuming and
cause them grief
If a system is uncomfortable and unfriendly, users will
shun it. They won’t make it work. They’ll avoid using it
When a system is painful to use, users will resent
management for inflicting it on them
If a system is complicated, learning continuously
evaporates – intuitiveness consolidates the learning
curve
Customised software is difficult to upgrade and the
cost of ownership is high
© 2007 Shire Systems Limited
Summing up…
The most successful maintenance practices across
asset-intensive organisations in many industries are
incorporated in a standard best-of-breed CMMS.
Maintenance add-ons to ERP systems are inferior after-
thoughts
Using the configuration features, standard CMMS
software can be tailored to fit individual needs – there is
no change to source code and future upgrades are
unhindered and easy
With standard, non-customised CMMS software the
development cost is spread over thousands of users -
the cost of ownership is correspondingly very small
© 2007 Shire Systems Limited
Summing up…
Beware of abandoning the unique advantages of best-of-
breed CMMS software in pursuit of the idealistic dream
of having one system for everything. It won’t work
economically
Asset-intensive organisations need ERP and CMMS
because of their mutually exclusive advantages
Select a standard CMMS that most closely mirrors your
actual maintenance processes
Don’t customise software until you’re sure that it really
can’t do as you need AND you’re 100% certain the
business benefits outweigh the considerable initial and
on-going cost
© 2007 Shire Systems Limited
Summing up…
Software for maintenance management, whether ERP or
CMMS, isn’t a ‘silver bullet’ – it’s a practical tool – a
means to predefined end
Senior management must carefully define that end – the
‘expectation’ in terms of improved business performance
- then ensure the software tool selected is the most
appropriate one for the job
– What are the added-value aims of the initiative?
– How and where will the gains be made?
– Are the goals fantasy or an achievable reality?
© 2007 Shire Systems Limited
Summing up…
The actual savings and business gains from a
computerised maintenance system depend entirely on
the efforts of the Engineering Manager, his
maintenance team and close collaborators
With the right tool and on-going support, a competent
and motivated Engineering Manager will deliver the
gains senior management and the Board expects
Alienating the Engineering Manager and his team by
imposing an unwanted clunky system is just not good
business sense
© 2007 Shire Systems Limited
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© 2007 Shire Systems Limited
