Mapping A Route To Asset Man 325833

This research note is restricted to the personal use of pgpm2017.praveen@spjimr.org.
Mapping a Route to Asset Management and

Reliability
Published: 11 May 2017 ID: G00325833
Analyst(s): Kristian Steenstrup, Nicole Foust
For organizations to maximize equipment reliability, CIOs can provide a

variety of systems for different circumstances, but all will depend on
sustainable integration to the IoT and OT data collection, and the EAM
systems used for execution. CIOs must provide a roadmap to clarify the
best route.
Key Challenges
Organizations need to source data from the Internet of Things (IoT) and operational technology
(OT) systems most of which is outside the IT domain, and in some cases, owned or restricted
by equipment vendors.
Companies must manage multiple reliability solutions and business needs to complete a viable
roadmap.
A viable roadmap requires integration with legacy enterprise asset management (EAM) systems
and development of new interfaces for sustainable data and effective, timely process
integration.
Recommendations
CIOs aligning IT, IoT and operational technology investments should:
Support IT-OT alignment and integration by building relationships with engineering and
operations.
Ensure compatibility with the technical and process needs of reliability systems by getting
involved in the planning of IoT monitoring of plants and equipment.
Classify equipment criticality, health and safety impact, and time to replace/repair by working
with operations.
Build a basic preventative maintenance capability within your EAM system. Use time- and
usage-based preventative maintenance where appropriate.

Protect critical equipment by moving to condition-based maintenance and predictive

forecasting using an asset performance management (APM) product.
Ensure that first five levels of the roadmap are successfully deployed before undertaking Levels
6 and 7.
Table of Contents
Introduction............................................................................................................................................ 2
Analysis.................................................................................................................................................. 5
Level 1 Run to Failure (Reactive Maintenance)..............................................................................5
Level 2 Time-Based Preventative Maintenance............................................................................ 6
Level 3 Usage-Based Preventative Maintenance.......................................................................... 8
Level 4 Condition-Based Maintenance......................................................................................... 9
Level 5 Predictive Forecasting Strategy........................................................................................ 9
Level 6 Reliability-Centered Maintenance................................................................................... 11
Level 7 Financially Optimized..................................................................................................... 14
Summary........................................................................................................................................14
Conclusion..................................................................................................................................... 17
Gartner Recommended Reading.......................................................................................................... 17
List of Tables
Table 1. Reliability Strategy Summary................................................................................................... 16
List of Figures
Figure 1. Major System Relationships .................................................................................................... 4

Figure 2. Asset Management and Reliability: A Viable Roadmap............................................................. 5
Introduction
There is no single best strategy for CIOs looking to link IT, the IoT and OT investments for asset
management and reliability. A combination is needed to support a variety of asset types and
situations. This research is designed for CIOs of asset-intensive companies who need to
understand the basics and the scope of reliability systems to be able to work with operations in
lines of business to map out a strategy.
Page 2 of 19 Gartner, Inc. | G00325833

For asset-intensive industries, efficient and reliable operation of equipment and machinery is a vital
and ongoing enterprisewide concern. However, the best options for optimum equipment operation
often vary by department and operational area. To work best with the business, CIOs of asset-
intensive organizations should understand the various options and help the organization toward
strategic reliability in a way that creates transparency of equipment performance.
Today's equipment has embedded sensors enhanced by the IoT. "The voice of the machine" is
adding a new enabler for a corporatewide strategic approach to asset management. Even in
existing plants and equipment, sensors are increasingly easy to add after the fact.
No single vendor offers an all-encompassing tool, so solutions end up being a combination of

software from different vendors, which can introduce data exchange hurdles. Reliability systems sit
in the divide between engineering-designed OT systems and the business platforms of IT. CIOs
looking to coordinate these various methods into a corporatewide strategy face a number of
challenges. For example, the change-out rate for equipment is usually measured in years
sometimes decades.
There are cultural obstacles, as well, the most common of which is the "IT/OT divide." IT
departments typically manage the enterprise software that models how the entire organization
works. Often, they find they are culturally separated and at cross-purposes with the engineering and
operations departments, which "own" OT. OT systems that is, the predominantly technical
process control and monitoring systems are distinct and separate from the IT systems and are
derived from different vendors (see "The Importance of Operational Technology in Business Unit IT
Strategies").
There are many ways to monitor and maintain assets (plant, equipment, machines or facilities).
Organizations have tended to have a siloed approach, where only one view was important to a
specific department or an operational unit. However, to get maximum value from an asset, you need
to obtain multiple views. Doing so enables the balancing the values and needs of differing parts of
the organization, which in turn, leads to more informed decisions. The procurement and materials
supply chain, for example, is enhanced if there is better predictability and forecasting of parts
requirements.
Maintenance philosophy has evolved considerably beyond reactive maintenance, when we fixed
things when they broke. The Industrial Age gave rise to preventative maintenance. That's when we
began to track and account for wear and tear on machinery so we could fix it before it failed. Now,
with the advent of the IoT and digitalization, maintenance has moved from reactive to preventative
to predictive and beyond to financial optimized. The future will bring autonomous and prescriptive
maintenance. Three domains of systems are in play (see Figure 1):
OT, which is extended and augmented by the IoT, is the source of data concerning a physical
asset.
APM applications calculate and optimize reliability, fed by data coming out of the machines.
Gartner, Inc. | G00325833 Page 3 of 19

Enterprise asset management (EAM) and the earlier, more limited computerized maintenance
management system (CMMS) applications provide transactional execution tools to manage
equipment, assign resources and record costs.
Figure 1. Major System Relationships
Source: Gartner (May 2017)
Different asset management strategies have emerged over time each for specific purposes and
situations. They were usually developed by engineering or operations groups and tended to be
siloed. They include:
Detection of failure
Planned maintenance (based on the calendar or actual usage)
Condition-based maintenance
Predictive maintenance
Reliability-centered maintenance
Financial optimization based on risk or asset investment planning
This research will explore these methods as levels on a maturity roadmap as illustrated below (see
Figure 2). The lower levels tend to be intrinsic to EAM and CMMS applications. The upper levels are
gradually coalescing into APM systems. Other standards have also emerged such as ISO 55001
(see Note 2).

Figure 2. Asset Management and Reliability: A Viable Roadmap
Analysis
Level 1 Run to Failure (Reactive Maintenance)
Reactive maintenance involves run to failure or "breakdown repair." Software to support these
activities should detect failures remotely and instantly, should allow for easy job entry and
scheduling, and should trigger assigned resources readily to prioritize work. It is also beneficial to
link to a data repository of failures for future pattern detection, to forecast inventory requirements for
unplanned jobs, and to harness analytics for failure review and forecasting. Having tools and an
understanding about when to use them is critical:
Tools: The ability to detect a failure immediately using IoT sensors, if available, or existing OT
systems, in combination with your EAM and CMMS applications.
When to Use: When equipment is redundant (alternatives exist), can be quickly replaced and
costs the same in failure as it does in controlled replacement (e.g., a pen or general purpose
light bulb).
On the face of it, this approach seems to call for no technological needs or planning. However, like
all the levels on the chart, reactive maintenance can be an effective component of maintenance
strategy when it is applied to the right circumstances and when it leverages the right technology.

Like all methods, it needs to be used in context and in concert with other approaches to create an
optimal environment of balancing the cost of maintenance with the availability of equipment.
Reactive maintenance can also be a starting point by building an historic database of failures when
no data is available for optimizing maintenance intervals. Ideally, using run to failure or breakdown
repair, requires a systemic process to detect failures and trigger a response. For example, a
supervisory control and data acquisition (SCADA) system will detect and trigger a response if there
is a component failure. Properly implemented, the run-to-failure approach will guarantee that you
are not overservicing basic equipment; rather, you are using it only on noncritical components that
do not overly impact health, safety or production.
To get the best value from run-to-failure strategies:
Classify your equipment and components to determine which strategy works best for the
characteristics of the equipment. If failure will cause health and safety problems, this is not the
strategy to use. Look at higher levels in the roadmap.
Consider the impact on production and output. Use this method when the equipment or
component has process redundancy in some way, so that an alternative device or process can
be used while it is being replaced.
Assess the costs for a failure replacement, including lost production (how quickly the
component can be replaced). If it is a uniquely engineered component requiring a long lead time
for ordering, or if it is inaccessible because it is buried or installed deep within a plant, then
methods with longer planning horizons are needed.
Level 2 Time-Based Preventative Maintenance

Typically, this involves maintenance based on manufacturers' schedules or for regularity
compliance. As most maintenance organizations evolve, they will carry out preventative
maintenance based on time, due to external demands and the benefits of simplicity. But there are
also valid reasons to do time-based inspections for assets with progressive, predictable linear
degradation. Evaluate your operations and types of equipment for their compatibility with a time-
based maintenance strategy and consider:
Tools: Location support tools (knowing where the asset is at a given time) and condition
reporting (was the repair early, late or on time for future adjustment), in combination with your
EAM and CMMS applications.
When to Use: When there are external requirements (warranty or regulations); when an asset
has progressive, linear wear over time, rather than on usage; or when usage is constant. This
will also be used for inspections to record condition.
Time-based maintenance is an important tool to have and refine, if it is done well. Too often, though,
the actual time periods will not be of your choosing, due either to an OEM mandate or a regulatory
requirement. While a calendar is an obvious starting point, work order suppression for
overlapping jobs that coincide warranty tracking and forward inventory planning are the parts to
get right. Time-based maintenance strategies are well-established and supported by all major EAM

suites. They also aid in supply chain forecasting, since the consumption of parts becomes a known
factor.
As most maintenance organizations evolve, they start to carry out preventative maintenance based
on time (that is, based on hours, days or months, regardless of usage). This can be a simple
process, but there are repercussions if it is not done well due to the equipment dependencies of the
commercial environment. An assembly may have thousands of components, some of which may be
reused in other equipment, changed out over time to different locations or refurbished externally.
Moreover, many pieces of equipment sourced from suppliers will have some warranty over them.
This needs to be tracked in detail, since the service obligations of periodic maintenance are usually
a requirement of warranty-based service.
Time-based preventative maintenance is a tactical component of a more sophisticated strategy.

When equipment fails, an inspection and maintenance history is usually required to prove that all
obligations were met. When this is part of an overall governance, risk and compliance (GRC)
obligation, the dedicated GRC systems will need input from the maintenance records. The systems
that provide this input are usually also linked to work planning and inventory systems. As due dates
approach either for inspections or component replacements a planning system needs to
schedule this work against the constraints of available resources and ensure materials inventory
levels are forecast correctly.
The driver for time-based maintenance is likely to come from one of three sources: OEM
specifications, government or regulatory mandates, or an assessment of progressive, linear
degradation:
OEM specifications When equipment is acquired and installed, there is usually a

maintenance regimen associated with it that needs to be adopted. An OEM won't have perfect
insight into your operating conditions and usages. OEMs would prefer overservicing to
underservicing, since that ensures increased parts sales and longevity of equipment. Therefore,
the "default setting" is usually shorter than needed time-based intervals for recurring
maintenance tasks. If the equipment is used intermittently, time-based maintenance can be
woefully inefficient and incorrect.
Regulatory mandates If your industry is heavily regulated, there are likely to be required
inspection and replacement regimens. Because of this imposed obligation, record keeping is a
factor, and a well-documented maintenance history is auditable evidence of having done the
right things.
Progressive degradation if you have equipment or assets that are in constant use, or in an
exposed environment, their degradation will often be a constant, at least for simple assets. (The
more complex the equipment, the more parts there are, and the more variation in wear there will
be.) Simple wooden poles, concrete pads and steel towers usually degrade in a predictable and
linear way. So, once having established a safe-life assessment for a particular piece or class of
equipment or component, that safe life can be used as the criterion for a regular inspection or
replacement. More recently, however, we are seeing more companies use weather and
environmental data to determine the pace of degradation, based on location.

Level 3 Usage-Based Preventative Maintenance

Preventative maintenance based on operational data adds a further level of sophistication. For
many assets, equipment use will be a more reliable predictor of failure than time. Consider:
Tools: The actual rate of usage and work through statistical and meter accumulation. The IoT is
increasingly used to capture and transmit usage (hours, distance, cycles), in combination with
EAM and CMMS applications.
When to Use: When equipment has variable usage that is not predictable, such as with
heating/ventilation, vehicles, rotating equipment.
Preventative maintenance, based on operational data, is a valuable tool for failure prevention, since
it does not need invasive monitoring or an understanding of the physics of a component. For many
assets, equipment use is a more reliable predictor of failure than time since last service. Examples
could include service vehicles, power generation equipment (including turbines and rotating
equipment), conveyors and pumps. A simple example of combining time and usage is motor oil,
which must be replaced, either every year or 10,000 miles, whichever comes first. Usage variations
can be unpredictable though, leading some organizations to take the usage data and apply
predictive planning models (see Level 5) to determine future maintenance events.
Also, consider that the multiple factors may be gathered from different data sources. Older
equipment will have fixed mechanical or electromechanical meters attached to them. This requires a
regimen of plant inspections and walking around to gather the data and capture the relevant
statistics, usually based on a time cycle as in Level 2.
It is common to use mobile workforce devices to capture the data if direct telemetry is not available.
In many cases, timing (cadence of inspections) is a significant factor. Delayed meter readings could
cause a delay of hours or days in capturing the data, which can sometimes mean the equipment will
go beyond its planned maintenance window, resulting in failure. More modern equipment allows for
automated data gathering from the equipment itself, either through a direct connection or through a
wireless transponder.
As equipment moves to a more modern and connected environment, the use of workers doing
visual inspections is declining in favor of automated means. However, that brings new challenges.
The accumulation of relevant data from equipment in data historians is increasingly common, and
data historians are increasingly being interfaced with the EAM system of choice. This IT-OT
integration project, will be a challenge if IT and engineering have not already taken steps to be
aligned in their methods and planning.
There is also a potential challenge with accumulated trigger points for service overlapping or being
out of phase for a given piece of equipment. For example, we have seen conflicting schedules to
both inspect and replace a component. If you had a badly integrated maintenance system, you
could very well maintain something and then be instructing staff to replace it the next day. The
solution to this is the "suppression" of tasks, which is in the scope of most EAM systems. It should
be possible to suppress a certain task if another is done. For example, if you replaced a bearing in
January, it would obviate the need to grease that bearing in February.

Level 4 Condition-Based Maintenance

As companies capture more data on their assets and have a more complete picture of failure
contributors, there is an opportunity to measure the condition of assets as a way of intervening
before failure. Consider:
Tools: Sensors to monitor and measure the condition of the asset in real time. This includes
condition-assessment tools within some EAM systems or condition-based maintenance (CBM)
products from specialist companies such as IPS-Energy, and DNV GL (Cascade), and those
listed in the APM Market Guide (see "Market Guide for Asset Performance Management").
When to Use: When equipment has telltale physical signs and measures of extreme usage or
parametric limits, for example, a predetermined level of vibration, sound, pressure or
temperature has been reached.
CBM is ideal for circumstances in which a measurable parameter is a good proxy for impending
problems. These are typically put into a range of tolerances for the different physical parameters.
For rotating equipment, such as turbines, generators and pumps, there may be multiple parameters
such as temperature, pressure, vibration and sound. Equipment manufacturers will specify an
acceptable operating range, and departures from this will indicate a problem.
More advanced EAM systems support not only a single parameter, but also multiple levels of alert
(for example, providing a "warning/inspection alert" at a lower threshold than a "replace/repair/
maintain" alert).
The time cycle for CBM turnaround (the testing or evaluation of the signal) and the cadence of
observations (the rate at which they are taken, if not continuous) are important factors. Ideally,
conditions will be continuously monitored in real time, and any exception will cause a trigger for an
inspection or a corrective action. However, in cases like oil analysis, real time will not always be
possible, so companies need to determine the optimal intervals and use their time-based (or usage)
maintenance to manage a schedule of inspections. With the advent of high-speed data transmission
from remote locations, this has become less of a problem. IT departments working on a CBM
strategy need to take into account communications and system turnaround time. It is advantageous
to do this online and with automated data feeds to avoid the time lag with manual input.
The cost must also be considered. While every part of a company's machine portfolio will have
some condition that can be monitored as an indicator of imminent failure, it is impractical to do
them all. CBM is not without cost, but it can help avoid high costs through excessive interval-based
maintenance.
Level 5 Predictive Forecasting Strategy

Predictive forecasting is an important strategic capability. It is rapidly becoming a popular
investment as more and more companies develop an understanding of data analytics and predictive
modeling. Predictive forecasting should be applied to long-lead-time assets, service-interrupting
assets and difficult-to-access assets. Essential underlying prerequisites to a predictive forecasting
strategy include investments in sensors, networking, mobile technology and other data-capture

tools, as well as in interfacing to EAM. However, all of this presupposes a stream of good-quality
operational data over an extended length of time, which could be an obstacle for some. In cases
where there is a history of failures, the forensic examination of condition data and inspections may
yield answers, so retention of data has significant value. A degree of machine learning and artificial
intelligence is emerging in many products so that the software can "learn" what imminent failure
looks like.
Predictive maintenance involves projections of wear characteristics. One form of predictive

maintenance uses wear characteristics and wear rates or degradation to predict the point of failure
or suboptimal performance. (A variation of this can also be predicting when variable usage meets a
maintenance threshold based on hours of operation or distance traveled). This can be highly
valuable information for assets that progressively wear or degrade over time and use. Consider:
Tools: Accumulating and projecting the rate of change in degradation, wear or residue.
Condition recording and storage and algorithm projection from APM providers listed in the APM
Market Guide (see "Market Guide for Asset Performance Management") or specialists like IPS-
Energy.
When to Use: When equipment has a progressive degradation of factors that can be observed
and measured such as with turbines and transformers.
If the characteristics of failure are significant and predictable from various data anomaly sources,
then a replacement plan can minimize interruption. This is especially important for long-lead-time
assets, and when physical access is the challenge such as replacing buried pipes or wires, or
removing the side of a building to replace turbines or boilers. Replacing such assets requires
significant logistical planning and preparation. It also aids in supply chain forecasting since the
consumption of parts becomes a known factor.
For asset-intensive industries, there are two overriding drivers for investment:
Long lead times: There is little value for a company to solely use condition-based strategies.
By the time it becomes clear that a turbine is failing and needs to be replaced, it's too late.
These are often made to order, and replacing one requires a very long lead time, so a longer-
term forecast of failure is necessary. Even if one could be stocked as a spare (prohibitively
expensive), the project time for replacing it would be significant. The same is true for many
types of assets such as transformers, switchgear, pumps and conveyors.
Interruption of service: This can impact reputation and revenue by coming from unplanned
replacement of assets such as turbines, transformers, switchgear, pumps and conveyors.
Outages need to be planned and managed, and in some cases, a temporary provision needs to
be in place.
In practice, most companies practice a form of predictive analysis by erring on the conservative
side and preordering key equipment well in advance of replacement needs. This can result in a more
wasteful inventory strategy than if a calculated prediction of the equipment's life span is employed.
Sources of data for predictive maintenance are many and varied, depending on the equipment
being maintained. IoT and OT systems are the wellspring of data, so IT-OT integration is a

cornerstone of this approach. Managing the time series and event data requires access to a suitable
data historian. Throughout, there is a presumption of tight data integration with the OT data source
or, at least, a data transfer that takes place in a timely manner. The cadence of data acquisition,
which is so important in CBM, is less of an issue with predictive forecasting, since it is a longer-term
approach and can be done offline, in the cloud or as a service. The data will be acquired over a long
period of time (months) and applied over an equally long forecast period.
The key to using this strategy is statistical analysis and pattern recognition, so specialized software
products are available for predictive forecasting.
Many of these tools support multiple forms of trending analysis, so they can be used for different
pieces of equipment or on different factors for the same equipment. These products are not EAM
solutions, however, and that creates a potentially fragmented product strategy. CIOs and IT
departments will need to work with the business to determine:
The candidate equipment

The OT datasets
The nature of the data to be analyzed
The analytical tool that is best suited
An integration with the EAM system so that, when patterns are detected, the trigger for
intervention work and the associated parts ordering are managed through a common EAM
system
Level 6 Reliability-Centered Maintenance

Reliability-centered maintenance (RCM) is a complex and intricate strategy. When used in
conjunction with EAM and other tools, it provides an outcome-oriented process to improve
equipment availability and production capability. However, it does require constant feeding of data
to achieve these improvements. The missing disciplines of capturing that failure code and causal
data are often the downfall of an RCM deployment project in the long term. It is also essential that
the reliability strategies of Levels 1 through 5 are well in place sustainable, controlled and
repeatable since they will be the "levers of adjustment" to improve on the results being measured
in RCM.
For enterprises with high-value, long-lived assets, the available reliability-centered maintenance
strategies can assist in improving reliability by engineering out future failure. Consider:
Tools: Assessing the failure cause, timing and effect of problems. Failure cause analysis, risk
analysis and "what if" scenarios from APM companies specializing in RCM as listed in the APM
Market Guide (see "Market Guide for Asset Performance Management").
When to Use: When planning the optimal maintenance regimen for the most critical and
expensive assets, such as a generator.

RCM is formally defined in SAE JA1011, Evaluation Criteria for Reliability-Centered Maintenance
(RCM) Processes. It is oriented toward results and outcomes rather than toward planning and
recording a sequence of tasks. RCM cannot be done well until all Level 1 through Level 5
capabilities' standard processes and clean asset data are in place. When companies "fail" at RCM,
even after acquiring an RMC product, it is usually because they did not have a well-managed and
repeatable capability for Levels 1 through Level 5.
With an outcome-oriented strategy, there are seven key questions:
1. What is the item supposed to do, and what are its associated performance standards?
2. In what ways can it fail to provide the required functions?
3. What are the events that cause each failure?
4. What happens when each failure occurs?
5. In what way does each failure matter?
6. What systematic task can be performed proactively to prevent, or to diminish to a satisfactory
degree, the consequences of the failure?
7. What must be done if a suitable preventative task cannot be found?
One of the key outcomes from RCM is the failure mode analysis. When done correctly, the outcome
should be information that may alter the maintenance approach taken to date to try to avoid future
failures or threats as listed above. So, for example, the interval between inspections may be
shortened or lengthened, or the threshold of tolerance for a condition reading might be raised or
lowered. In that sense, RCM becomes a management tool and a "feedback loop" for the other
maintenance strategies.
Cost, complexity and time required for implementation are the most common objections to RCM.
Although the software is not necessarily expensive, RCM is a particularly data-intensive approach
and requires strong discipline in capturing accurate data.
For each repair event, there needs to be an entry of failure code and cause formally called failure
mode and effect analysis (FMEA, see Note 1). Not all EAM products have the capability to store the
necessary failure/cause data in a structured way, and that can be the cause of a failed project.
When EAM software can support structured FMEA, it's important to align what is in the EAM tables
with what is in the RCM product. There must be realistic limits on the choices of codes for failure
and cause. More than 10 codes to choose will be onerous for operators. Additionally, there should
be a logical relationship between the failure code and the available cause codes. Free-text fields will
not work in this circumstance because a company won't get a consistent set of answers over time.
Increasingly, mobile workforce platforms are being employed for the capture of inspection data in
the field in the form of operating statistics and condition data. These are crucial building blocks for
RCM analysis (see Levels 3, 4 and 5).

In addition to EAM-RCM integration, there is also the potential for the outcomes to alter other
procedural areas. Consideration needs to be given to capturing changed instructions as a result of
the analysis of failure causes. Such possibilities include:
Changes to the maintenance tasks to be performed, the intervals and which parts to use. These
will need to be captured as updated work order and task information in the EAM system.
Altered operating instructions for the operating personal, regarding equipment limits, times for
activities, observations and inspections. These will need to be captured as changed operator
instructions.
Changes to the components, redesigns and alterations to the actual equipment. In this case,
there may be product life cycle management (PLM) system inputs or change documents and
consequent redesign tasks.
The best candidate for RCM is equipment that:
Is critical for operations, with little to no redundancy like a turbine in a generation plant
Has a high impact on operational cost or consequence in safety or environmental impact
like a transformer in a substation
Has an expected long life in operation and, therefore, "tuning it" over time will be beneficial
like a generator or steam turbine
Is unique or custom-made and, therefore, the operating and maintenance plan may need to be
altered over time and experience
Is likely to impact production in the event of failure
Key infrastructure of a nuclear operation is an example of a good justification for an RCM strategy,
as this will aid documenting the reasoning behind any changes or alterations to the configuration.
Companies investing in renewable energy, including wind and solar, find that there is often an
inadequate industry history of the performance of equipment in a range of conditions. For that
reason, the "learning and improving process" of RCM is well-suited to complex and critical
deployments for which there has not been a long track record of performance.
The primary tool will be an RCM product itself, of which there are a number from which to choose
some that include predictive maintenance to form an APM solution with slightly differing
capabilities, industry focus and experience. However, as noted above, the integration to the EAM
system is critical to ensure that the equipment register and component hierarchy are accurately
reflected, and the task and interval changes can be captured and turned into altered future actions.
Another benefit of the EAM integration will be to assess the cost impact of shorter or longer
maintenance intervals.
If a company was also planning to do equipment alterations as a result of RCM findings, then the
use of electronic document management, and even a full-scale PLM product, would be needed, not
just an EAM integration for work planning.

Level 7 Financially Optimized

At the highest level of analysis, we see companies combining financial and failure data to optimize
the focus and execution of maintenance. This takes two main forms:
1. Asset investment planning is used to forecast future failure characteristics across a fleet of like
assets for the purpose of budget forecasts. This has been prevalent in power and water utilities,
which have to provide a forward budget of asset replacement and decisions about repair versus
replace for the purpose of a rate case for an increase in power or water charges.
2. Risk-based maintenance (or inspection) assessments are done where the value or importance
of an asset is assessed to determine the maintenance regimen to be followed. This takes into
account the production impact of an asset. For example, a pump that is used for a critical
cooling circuit in an enterprise would be treated differently than a pump that is used for the
fountain in front of the head office even if the latter is exactly the same model. Companies in
high-risk environments like oil and gas use risk-based assessments to drive their maintenance
planning by looking at production and failure consequence in the bigger picture and not just the
mechanical failure probability, which the other methods use.
Because of the inclusion of financial data, there is a need to interface these solutions not just to
EAM, but also to the ERP in order to capture financial information related to production output.
Consider:
Tools: Asset investment planning (AIP) tools such as Copperleaf, Clevest, PowerPlan and
SEAMS, and RBM/RBI tools.
When to Use: When combining financial and failure data to optimize the focus and execution of
maintenance for the purpose of budget forecasts.
A number of standards exist around RBI concepts;
API 580 Risk-Based Inspection Recommended Practice

ASME PCC-3 Inspection Planning Using Risk-Based Methods
API 581 Risk-Based Inspection Technology
DNV-RP G101 Risk-Based Inspection of Offshore Topsides Static Mechanical Equipment
API 571 Damage Mechanisms Affecting Fixed Equipment in the Refining Industry
Summary
Looking at the wide range of options and potential vendors involved in asset management and
reliability seems to call for a complex roadmap. However, it can also be presented as a step-by-step
plan, with a complete repertoire of capability built over time. This can be used where and when it is
needed across an organization. Many of the methods here have been available for years, but the
advent of connectivity, data processing and algorithms embedded in software make it much more
achievable than even a few years ago.

As a planning tool, this roadmap can be used not only for system investment planning and
integration development, but also to plan data access. If you were to map out these seven
strategies as columns in a spreadsheet, with a row for each major component or equipment, not
every cell would be populated. Pick the right strategy (or strategies) for each piece of equipment,
and determine what data is needed to fulfill that strategy. Each cell would then be your data
shopping list and allow for a planned and methodical approach to data gathering and interfaces to
support this overall strategy.

Table 1. Reliability Strategy Summary
Mode Tools Vendors When to Use Historic Illustration
1. Reactive IoT sensors or existing EAM and When equipment is My chariot wheel fell
OT systems, if available CMMS redundant (alternatives off midcharge.
exist), quickly replaced
EAM and CMMS and costs the same in
applications failure as it does in a
controlled replacement
2. Time-Based Location support tools EAM and When there are external Check my wheels
CMMS requirements or an asset every two months.
Condition reporting has progressive wear
based on time rather
EAM and work than on usage, or when
management systems usage is constant
3. Variable Rate of usage and work EAM and When equipment has Check my wheels
Usage through statistical and CMMS variable usage that is every fourth attack.
meter accumulation not predictable
EAM and work

management systems
4. Condition- Sensors to monitor and Some When equipment has My chariot wheel is
Based measure the condition EAM and telltale physical signs squeaky.
of the asset in real time most APM and measures of
extreme usage or
parametric limits
5. Predictive Accumulating and APM When equipment has a My chariot wheel is

projecting the rate of progressive degradation squeaking louder
change in degradation, that can be observed every week.
wear or residue and measured
Condition recording
and storage
Algorithm projection
6. Reliability- Failure cause analysis Some When planning the The chariot wheel fell
Centered APM optimal maintenance off after four charges,
Risk analysis regimen for the most so check it every
critical and expensive three charges and
"What if" scenarios assets use more grease.
7. Financial AIP Tools AIP and When needing to do We will run out of
Optimization RBI future budgeting or chariots at this rate
vendors balance maintenance unless we change our
cost against productive maintenance, and, oh
benefit by the way, check the
general's chariot
every day.

As you move up the hierarchy of capabilities, you have a more effective army to win the battle.
Conclusion
There are many valid strategies available for improving reliability and managing maintenance. These
should not be thought of as "good" and "bad," but rather as different approaches to the same
overall issue, targeting different circumstances. The objective of this roadmap should be to have a
broad array of skills and tools and then to match the needs of different asset classes to those tools.
Operations will have needs that fall into different categories within this structure, and the vendors
that may be suggested won't fulfill all possible levels and variations. Therefore, IT departments, in
conjunction with the business users, should determine a viable roadmap to expand the available
systems from where they are now to a full multilevel capability.
Gartner Recommended Reading

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"Your IoT Future Is Visible in the Mining Industry Today"
"Best Practices for Choosing an Asset Management Service Provider"
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"2017 CEO Survey: Digital Can Be a Hard Sell for CIOs in Asset-Intensive Industries"
"Use the IoT to Optimize Operating Costs and Maximize Asset Utilization"
"Aligning IT, IoT and Operational Technology Investments Primer for 2017"
"2016 Strategic Roadmap for IT/OT Alignment"
"The Importance of Operational Technology in Business Unit IT Strategies"
Note 1 FMEA
FMEA is an approach to anticipating likely product failures. Documenting these leads to design
requirements is intended to prevent those failures in the future and can even be used to produce
obsolescence to generate more sales.

Note 2 ISO 55001

ISO 55001 is a wide-reaching standard for asset care used in many industries. It arose from the
power utility standard PAS 55. Our guide is compatible with that standard, though it offers more
detail on maintenance and reliability techniques (seven, rather than four, categories).

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Mapping a Route to Asset Management and

Analyst(s): Kristian Steenstrup, Nicole Foust

For organizations to maximize equipment reliability, CIOs can provide a

This research note is restricted to the personal use of pgpm2017.praveen@spjimr.org.

Protect critical equipment by moving to condition-based maintenance and predictive

Table 1. Reliability Strategy Summary................................................................................................... 16

Figure 1. Major System Relationships .................................................................................................... 4

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No single vendor offers an all-encompassing tool, so solutions end up being a combination of

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Source: Gartner (May 2017)

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Figure 2. Asset Management and Reliability: A Viable Roadmap

Source: Gartner (May 2017)

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To get the best value from run-to-failure strategies:

Level 2 Time-Based Preventative Maintenance

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Time-based preventative maintenance is a tactical component of a more sophisticated strategy.

OEM specifications When equipment is acquired and installed, there is usually a

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Level 3 Usage-Based Preventative Maintenance

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Level 4 Condition-Based Maintenance

Level 5 Predictive Forecasting Strategy

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Predictive maintenance involves projections of wear characteristics. One form of predictive

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The candidate equipment

Level 6 Reliability-Centered Maintenance

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With an outcome-oriented strategy, there are seven key questions:

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The best candidate for RCM is equipment that:

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Level 7 Financially Optimized

A number of standards exist around RBI concepts;

API 580 Risk-Based Inspection Recommended Practice

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Table 1. Reliability Strategy Summary

Mode Tools Vendors When to Use Historic Illustration

EAM and work

5. Predictive Accumulating and APM When equipment has a My chariot wheel is

Source: Gartner (May 2017)

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Gartner Recommended Reading