Asset Management Solutions
Helping you succeed
IBM Global Business Services
Plant and productionPower stations, pharmaceuticals, textiles, chemicals, petroleum,
electronics, consumer goods.
Real estate and facilities Land, offices, industrial facilities, warehouses, retail space, schools,
housing, hospitals.
Mobile assets and transportationMilitary, airlines, fleet management, shipping, rolling stock, public
transport, intelligent transportation.
Information technologyComputers, routers, networks, software, auto discovery, service desk.
Infrastructure and utilitiesRailways, electricity/gas distribution, highways, telecoms, water, wastewater.
Asset classes
Physical assets dominate the balance sheet of many companies, are a major corporate cost and are vital to operational performance. Asset Management is the holistic management of all asset classes that allows organisations to optimise performance. Getting Asset Management right can increase shareholder value, reduce costs, increase return on capital employed, support the core business, manage risk and deliver business flexibility. We have an execellent reputation for asset management consultancy and an extensive coverage of asset classes, with capabilities to manage change programmes spanning across the whole lifecycle.
Our expertiseWe have two decades’ experience in delivering solutions that are tailored to meet
our clients’ needs, across all asset classes. We can help you to improve your
performance through:
IBM is taking our clients to the next generation of Asset Management through strategy, process and technology programmes. These address emerging trends such as sustainable (green) asset management; collaborative asset supply chain management; intelligent assets and condition-based analytics; mobile workforce management; capital programme portfolio management; business process outsourcing; and Asset Management systems consolidation along with through–life application management.
Our expertiseWe have two decades’ experience in delivering solutions that are tailored to meet our clients’ needs, across all asset classes. We can help you to improve your performance through:
BETTEr rEal EsTaTE manaGEmEnT and faciliTiEs manaGEmEnT• POrTfOlIO STrATeGy And PlAnnInG • PrOcureMenT STrATeGy And IMPleMenTATIOn • PrOceSS And OrGAnISATIOnAl deSIGn • SuSTAInABle reAl eSTATe And fAcIlITIeS MAnAGeMenT
BETTEr assET manaGEmEnT• STrATeGy And dIAGnOSTIcS • STrATeGIc PrOcureMenT And OuTSOurcInG • SuSTAInABle ASSeT MAnAGeMenT• WOrkfOrce MAnAGeMenT
BETTEr assET manaGEmEnT sysTEms• ASSeT MAnAGeMenT cOnSulTInG • ASSeT MAnAGeMenT SySTeMS IMPleMenTATIOn • IBM MAxIMO ASSeT And ServIce MAnAGeMenT
BETTEr PrOGrammE and cHanGE manaGEmEnT• cAPITAl PrOGrAMMe MAnAGeMenT • BuSIneSS cASe develOPMenT • PrOcureMenT STrATeGy And MAnAGeMenT• cHAnGe MAnAGeMenT
Better real estate management and facilities management• POrTfOliO sTraTEGy and PlanninG • PrOcurEmEnT sTraTEGy and imPlEmEnTaTiOn • PrOcEss and OrGanisaTiOnal dEsiGn • WOrkPlacE TransfOrmaTiOn • susTainaBlE rEal EsTaTE and faciliTiEs manaGEmEnT
Many organisations fail to make the best use of offices, factories and warehouses.yet property assets are probably one of the largest items on your balance sheet. In our experience, introducing best practice shows that you can improve the way you use your property and reduce your costs by as much as 15-20%.
Southwest OneProperty and facilities management transformation
Southwest One is a joint venture company comprising IBM,
Somerset County Council, Taunton Deane Borough Council
and the Avon and Somerset Constabulary. As part of a
broad transformation agenda, we are working with the client
bodies to transform property and facilities management from
three separate organisations with a total of over 200 staff
into a single, customer-facing organisation. In addition, we
are rationalising over 100 property related systems into a
streamlined and integrated property management solution.
Our team is looking to repeat the success it has
had delivering significant property savings in the past.
Previous examples include reducing facilities management
spend for a global manufacturer and rationalising the IBM
UK property portfolio. In both cases, savings in excess of
10% were achieved.
Process and organisational design
The Home Officeestates organisation change programme
The Home Office managed its real estate operations of over
2,000 buildings within a mixture of small, local departments
and larger, business-focused operations. There was a desire
to amalgamate these functions into a shared-service ‘Centre of
Excellence’ for estates and a need to drive down costs in line
with Government targets. Our team:
• Rationalised the estates functions through the design and
implementation of an Estates Shared Service Centre model.
• Supported the re-procurement of facilities management,
estates and projects contracts.
The benefits were substantial. Annual savings of around
£40 million and the formation of an Estate shared services
organisation that aligned with industry best practice processes
and procedures.
SUSTAINABLE FACILITIES MANAGEMENT PROCUREMENT STRATEGy A major UK Government Department needed to re-procure its facilities management for 250 buildings and to reduce costs whilst improving environmental sustainability. In doing so, it sought to create mechanisms that incentivised the supply chain to reinvest savings into sustainability initiatives. IBM Asset Management:
• Compared the environmental performance of the buildings in their estate.
• Engaged with the facilities management-supply market to understand their ability to drive sustainability through a long-term contract.
• Developed a strategy for re-procuring facilities management incorporating sustainability performance measures.
• Assessed the maturity of the client’s property organisation in managing sustainability.
Benefits included estimated financial savings of 10% of core facilities management costs with additional savings identified for utilities and project costs. Included were realistic investment levels by the supply chain and a mechanism for driving sustainability through the property portfolio, over the period of the contract.
PROPERTy CARBON AUDITWe have developed a competitive diagnostic of an organisation’s real estate carbon contribution. Maturity profiling through staff interviews are combined with data analysis and benchmarking to identify carbon reduction opportunities. Our property management carbon fact sheet provides further details and can be found at ibm.com/services/uk/bcs/pdf/ibm_facilities.pdf
Portfolio strategy and planning
Better asset management
MOBIle ASSeTS And InfrASTrucTureIn addition to the traditional issues such as maintenance cost and availability, fleet managers must place increasing focus on rising fuel prices and capital management as a way to manage the total lifecycle cost of critical mobile assets. Achieving the desired levels of performance depends on successful integration of cross-functional interests, tasks and capabilities within an organisation. It is not just about the optimisation of the maintenance function – lowest maintenance cost does not mean lowest total cost.
recognising the trade-offs between capital and operating expenditure can reduce an organisation’s working capital and significantly impact its bottom line. IBM can help you increase asset utilisation, output, economic life, and the reliability of systems and components, while reducing capital investment, maintenance costs, and the total number of systems and components.
• PlanT and PrOducTiOn • sTraTEGy and diaGnOsTics • BusinEss TransfOrmaTiOn and PErfOrmancE imPrOvEmEnT • sTraTEGic PrOcurEmEnT and OuTsOurcinG • susTainaBlE assET manaGEmEnT • WOrkfOrcE manaGEmEnT
Strategy and diagnostics British Energynuclear Generation – Asset Supply chain Strategy
British Energy is an asset intensive, geographically dispersed
organisation in a safety critical industry. We worked with them
to reduce costs, improve performance and transform the Asset
Supply Chain, including:
• A rapid diagnostic to frame the issues.
• Development of a thorough Supply Chain strategy.
• Production of an implementation road-map.
• Introducing risk/reward partnering contracts.
Our work resulted in multi-million pound cost savings and
working capital reduction both in excess of business case
targets. In addition, Supply Chain safety performance
improved by 300%, the supplier base was rationalised from
12,000 to 1,600 and output-based incentivation contracts
were developed.
“A critical factor [in selecting IBM] was its unique Physical Asset Management expertise leveraged with skills in procurement, supply chain and inventory management.” John sexton, Head of supply chain for British Energy.
Ministry of Defence Asset performance improvement and cost reduction
The Ministry of Defence needed to reduce the cost of
delivering Defence Logistics outputs by 20% over a five-year
period. We worked with the Ministry of Defence to deliver
an asset performance management improvement
programme comprising:
• Spares inventory optimisation.
• Repair programme management.
• Contract rationalisation and management.
• Modification strategy review.
• Introduction of performance targets
and management.
Our approach resulted in a £600 million reduction in asset and
inventory levels with a further programmed cost reduction
of £100 million per year.
ChevronTexaco upstream petroleum – maintenance improvement programme
ChevronTexaco needed to reduce outsourced maintenance
spend by 25%, without impacting the reliability or availability
of its two principal North Sea producing platforms. We used
our business and asset maintenance experience to help
ChevronTexaco:
• Revise their maintenance strategy and tactics.
• Rationalise sub-contracted service provision and improve
contract management.
• Implement robust budget control.
• Enforce comprehensive use of SAP.
• Revise drill rig maintenance.
This comprehensive approach has put ChevronTexaco on
track to meet its financial targets and improved the reliability
and availability of valuable plant equipment.
Business transformation and performance improvement
THE WHITE PAPER‘An evaluation of the capability and capacity of the UK and global supply chains to support a nuclear build programme in the UK’, can be accessed online at ibm.com/services/uk/igs/pdf/05-igs-001615.pdf
Better asset management systems
• assET manaGEmEnT sysTEms cOnsulTinG • assET manaGEmEnT sysTEms imPlEmEnTaTiOn • iBm maximO assET and sErvicE manaGEmEnT
IBM can identify which Asset Management system best meets the needs of your asset class. We can make your existing systems work better for you and help you review your options. Our extensive knowledge of Maximo, SAP, Oracle, Tririga, GIS, cAd and many others can help you select and implement the right system.
Asset management systems consultingHome Office Estates ReviewSystems Strategy
IBM Maximo for asset and service management IBM Maximo asset and service management solutions are
helping organisations to manage better the complete lifecycle
of all assets strategic to their business – whether production,
facilities, transportation or IT assets.
Benefits include:
• Improved asset utilisation and asset life.
• Enhanced asset reliability and availability.
• A reduction in asset maintenance costs.
• Improved workforce productivity.
• Better managed and optimised spare parts inventory.
• Increased return on assets.
• Better data relating to assets’ energy consumption and
carbon footprint.
From traditional, asset intensive companies through to service
providers, organisations have a myriad of assets to manage
and maintain.
Whatever the industry, there is an IBM Maximo asset and service
management solution that is available to meet an organisation’s
specific requirements.
International PowerWe implemented a single maintenance management system
for over 40 plants across the world to support the business
model for future growth and to improve effectiveness and cost
control. Our solution provides:
• Real time access to up-to-date asset information.
• Greater visibility of information, assets and working structures.
• Excellent reporting enabling Sarbanes-Oxley compliance
requirements.
Tube LinesWith over 200 miles of track, 255 trains, 100 stations, 2,395
bridges and structures, 71 lifts and 227 escalators, Tube
Lines is constantly striving to implement more efficient and
effective ways of maintaining the entire infrastructure for three
of London’s tube lines. Our solution provides:
• Consistent and proactive approach to maintenance
management across 15 asset classes.
• Better understanding of trends in asset performance.
• Integrating asset maintenance activity and equipment
history with financial planning systems.
“creating a single source of all asset information has provided unprecedented visibility of asset performance across the three lines management Tube lines.”martyn capes, asset systems Technical manager, Tube lines.
Better asset management systems
The Home Office has an estate of over 2,000 sites across
the UK operated by over 40 independent property units and
served by over 200 contracts. We helped:
• Rationalise and consolidate into two property ‘Centres
of Excellence’ (one for offices, one for prisons).
• Produce an IT strategy to allow the new centres to extract
key performance data from their major suppliers.
• Produce a requirement specification and the business
case for the solution.
The Estate’s Management Information System was targeted to
centralise and improve the quality of information to enhance
planning, investment and decision-making.
PROPERTy PERFORMANCE MANAGEMENT SOLUTION (PPMS)IBM has 800 buildings across Europe, all supported by 3rd party service providers. We have built a new type of solution to manage the performance of our portfolio and our providers. We are now incorporating this capability into Maximo.
Better programme and change management
Organisations are increasingly looking at their capital programmes to support and drive the change agenda. We can help, across all asset classes, in two ways: defining and implementing strategic programmes and, through our “accelerator”, increasing dramatically the capability and performance of client teams. We have earned an excellent reputation for helping clients to deliver on their change journeys.
We have worked with our clients to improve programme management of all asset classes, helping them to develop their business cases, carry out options appraisals and set up and manage their capital programmes.
• caPiTal PrOGrammE accElEraTOr • sTraTEGic PrOGrammE manaGEmEnT • BusinEss casE dEvElOPmEnT • PrOcurEmEnT sTraTEGy and manaGEmEnT • PrOGrammE sTarT-uP
Procurement process management Ministry of defence – PfI Programme management
The Ministry of Defence established Project Allenby
Connaught as an £8 billion PFI to build, refurbish, manage
and operate living and working accommodation for 18,000
military and civilian staff at Aldershot and five garrisons on
Salisbury Plain. As lead advisor we:
• Developed the procurement strategy.
• Assisted with business case and programme management.
• Worked to determine the “sweet spot” to mitigate risk and
satisfy the Ministry of Defence, commercial bidders and the
funding institutions.
Workplace Transformation dvlA – Planning and Implementing Workplace Transformation
The Driver and Vehicle and Licensing Agency wished to
optimise the use of property assets within their campus site,
whilst promoting a more flexible and dynamic set or working
practices amongst their staff.
Our team:
• Developed a business case demonstrating net present
value savings of greater than £9 million over 10 years.
• Piloted a programme for 100 staff and rolled out the
arrangements amongst the remaining 6,000 staff.
• Successfully managed the change, communications,
technology and security programme to minimise the
potential adverse effects of change on the people
and the organisation.
The utilisation of the property assets increased by
approximately 30% and enhanced working practices and
productivity amongst the 6,000 staff. This project won the
CoreNet UK innovation award in 2006.
“IBM consultants played a pivotal role in developing the commercial framework for the project, developing and implementing procurement strategies, handling negotiations with commercial consortia and finalising contracts with the preferred bidder.” mike cooper, ministry of defence, Project manager.
Better programme and change managementMinistry of Defence Main Building redevelopment
The Ministry of Defence successfully used a 25-year PFI
programme to transform its Whitehall Headquarters to a bright,
modern, flexible and inspiring working environment for its 3,300
head office staff.
Our team supported the Ministry of Defence through
development of the business case, procurement, and
negotiation. We also continued to provide change
management support to shape, deliver and advise on the
change programme.
Ministry of Defence Main Building was delivered on budget,
ahead of schedule and the change programme has proved
a benchmark for others in supporting the transformation of
the workplace.
The programme:
• Reduced London Footprint from 8 to 3 buildings.
• Increased occupancy by 25%.
• Transformed the way the Head Office operated.
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Our team, our clients. With over 70 consultants in the UK and over 700 consultants worldwide, we
are ready to address the full lifecycle of your assets in alignment with your
corporate strategy.
Our consultants have experience across the full spectrum of industries and
sectors: communications, distribution, financial services, industrial, public
sector and utilities. Our clients include:
• ABN AMRO
• Barclays
• British Energy
• BP
• Carlsberg
• ChevronTexaco
• Department for Environment, Food and Rural Affairs
• Department for Work and Pensions
• Driver and Vehicle Licensing Agency
• Environment Agency
• International Power
• Lloyds TSB
• Local Government
• Home Office
• Ministry of Defence
• Ministry of Justice
• Nestle
• Shell
• Tube Lines
“The IBM team was essential to the success of our transformation. They provided a wealth of property management experience…they were able to benchmark against other organisations to help us size correctly and many times they helped us avoid unseen pitfalls by advising on the best way forward.”Tony Edwards, Head of General Property, Home Office.
Mark Richardson, Partner
IBM Global Business Services
+44 (0) 207 021 9019
Steven Hornsby, Partner
IBM Global Business Services
+44 (0) 117 929 5988
General queries: [email protected]
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