Wednesday, 8 June 2016

Delivering continuous return on investment (ROI) with IBM Maximo

Disparate systems cause widespread organizational inefficiencies


The use of different systems and solutions caused widespread organizational inefficiencies across Johnson & Johnson. To maximize return on investment for both its physical and human assets, Johnson & Johnson needed to establish an enterprise asset management standard across Vision Care.

The complexities associated with multiple asset management systems from different vendors prevented the organization from driving improvements at a macro level for two reasons. First, the use of disparate systems and isolated practices made benchmarking virtually impossible; and secondly, many of the existing systems and solutions had a non-validated state that created compliance risks, obsolete software and hardware, in addition to inconsistent usage. In order for Vision Care to take advantage of standard processes, naming conventions and workflows, it needed a solution built on standards.

A single EAM solution


Johnson & Johnson’s Vision Care selected IBM Maximo to be the single enterprise asset management solution across all of its sites. Standardization is helping Vision Care reduce costs, while driving continuous improvements.

Using IBM Maximo as a single, unified asset management solution, Johnson & Johnson is able to address two of its main challenges – to maintain and upgrade systems in a consistent way, making validation easier and less expensive; and, to identify and share best practices across all their sites.

A foundation for the future


IBM Maximo provides the foundation for standards on which future process and operational improvements can be based – successfully positioning the organization for future innovation and business transformation across many different Johnson & Johnson sites.

The benefits of standardization


Cost Savings
  • Headcount reduction
  • Optimization of PMs
  • Reduction in Site PC License Costs
Turnaround time on improving job plans
  • Maximo vs. Local Quality System
Access to information out on the field
  • Spare parts consolidation
Asset Identification & Tracking
Accurate Asset costing (Repair vs Replace)
Audit Readiness

Scope and scalability


The eight-year project plan consisted of three-phases. The first, entitled Enterprise Computerized Maintenance Management System (ECMMS), focused on configuring Maximo 7.5 to align with the Johnson & Johnson asset management program. Each site roll out was considered a separate project – with an estimate of 6 to 9 months to complete the program per site.

Return on investment - ROI, IBM Maximo
Figure 1: Johnson & Johnson implementation project plan

Over the course of the six to nine month project, the program was divided into specific areas which included process and data assessment; internal and external compliance requirements; data alignments; assessment of cost savings opportunities; validation of data migration, user training and go live support.

Aligning best practices


The adoption of Maximo as the single asset management solution aligned Vision Care with the Johnson & Johnson asset management best practices program. Implementing a best practice strategy at Vision Care that aligned to the best practices program within Johnson & Johnson, resulted in Vision Care experiencing higher asset utilization rates – for both physical assets – equipment, and the organization’s human capital – its employees. In addition, both Vision Care and Johnson & Johnson experienced much needed improvements in sector and regional compliance requirement levels.

A future with analytics


Innovation has always been a critical aspect of Johnson & Johnson’s operating principles. Adopting a holistic analytics solution which can help the organization discover new ways to expand Johnson & Johnson’s market share is critical to the evaluation.

Critical learning


Based on the experiences gained from the last five years of rolling the program out, Johnson & Johnson realize now how critical using the right terminology is to the transformation project’s successful buy-in and adoption. Starting with value and return on investment (ROI) concepts can help to avoid delays for future evaluations and decisions.