Asset-intensive organizations face the constant challenge of balancing production requirements, resource allocation, safety, and long-term sustainability. The decisions made in pursuit of this balance often result in trade-offs that can impact operational efficiency and profitability. Industry 4.0 continues to revolutionize the way we manage and maintain assets. The need for robust Asset Performance Management (APM) solutions has become more critical than ever to make more informed decisions.

However, implementing an APM solution is not a one-size-fits-all approach. Organizations must carefully evaluate the effectiveness and suitability of an APM solution before committing to a full-scale implementation. This is where APM pilots come into play. In other words, they provide a low-risk, high-value opportunity to assess the benefits and potential impact of APM on your operations. 

In this blog post, we will explore the best practices for conducting a successful APM pilot. We draw from our extensive experience in APM implementations and pilots. By following these guidelines, you can: 

  • Define clear objectives and success criteria for your APM pilot 
  • Select the right pilot type based on your organization’s needs and constraints 
  • Assemble a cross-functional team to ensure diverse perspectives and buy-in 
  • Leverage best practices and expertise to navigate common pitfalls and accelerate time-to-value 
  • Measure and communicate results to demonstrate the value of APM and build a strong business case for full-scale implementation 

As technology experts in the field of APM, we understand that the journey toward asset performance excellence can be complex and challenging. By sharing our insights and best practices, we aim to empower organizations like yours. Furthermore, we help you make informed decisions, optimize pilot outcomes, and unlock the full potential of APM in driving asset reliability, availability, and performance.

The Case for APM

Asset Performance Management is a strategic approach that encompasses a wide range of capabilities, including data capture, integration, visualization, and analytics, to improve the reliability and availability of physical assets. As defined by Gartner, APM “includes the concepts of condition monitoring, predictive forecasting, and reliability-centered maintenance (RCM).” 

The evolution of APM can be understood through the lens of the SDIPF (Specify, Design, Install, Potential Failure, and Failure) curve, developed by ReliabilityWeb to build upon the traditional PF (Potential-Functional Failure) curve. The SDIPF curve and ReliabilityWeb team emphasize the importance of proactive asset management. In addition, unlike the traditional curve, it starts from the early stages of specifying, designing, and installing assets. By adopting this holistic approach, organizations can optimize asset performance throughout its entire lifecycle, reducing the risk of potential failures and unplanned downtime.

ARC Advisory Group recognizes APM as “a primary enabler of digital transformation for asset management among industrial companies.” They highlight several key domain areas and practices within APM, such as: 

  • Asset Lifecycle Information Management (ALIM) 
  • Computerized Maintenance Management System (CMMS) 
  • Enterprise Asset Management (EAM) 
  • Predictive Maintenance (PdM) 
  • Reliability Centered Maintenance (RCM) 
  • Root Cause Analysis (RCA) 

As technology experts in the field of APM, we understand the importance of adopting a comprehensive approach to asset performance management. Additionally, one is needed that considers the entire asset lifecycle and leverages advanced analytics and methodologies to drive continuous improvement. In summary, by implementing APM, organizations can unlock significant value, reduce risks, and gain a competitive edge in today’s rapidly evolving industrial landscape.

APM Evaluation: Piloting for Success

Why: The Value of APM Pilot Projects

Embarking on an APM pilot project may seem like a significant investment of time and resources, but the benefits far outweigh the costs. Pilot projects provide a unique opportunity to test-drive an APM solution in a controlled environment. They allow you to assess its potential impact and make informed decisions about a full-scale implementation. 

As the Association for Project Management states, “The pilot project is an initial small-scale implementation that is used to prove the viability of a project idea. … The pilot project enables an organization to manage the risk of a new idea and identify any deficiencies before substantial resources are committed.” 

APM Value

By conducting an APM pilot, you can: 

  • Validate Technical Feasibility: Pilot projects allow you to test the APM solution’s compatibility with your existing systems, data sources, and processes. You can identify any technical challenges or limitations early on and work with the solution provider to address them before a full-scale rollout. 
  • Assess Potential ROI: An APM pilot provides a real-world demonstration of the solution’s capabilities and potential benefits. By measuring key performance indicators (KPIs) and comparing them to your baseline, you can estimate the expected return on investment (ROI) and build a stronger business case for a full-scale implementation. 
  • Gain Hands-on Experience: Pilot projects offer a unique opportunity for your team to gain hands-on experience with the APM solution. This experience can help build internal expertise, identify best practices, and foster a culture of continuous improvement. 
  • Mitigate Risks: By starting with a smaller-scale implementation, you can identify and mitigate potential risks associated with a full-scale rollout. This includes technical risks, organizational challenges, and user adoption issues. 
  • Build Stakeholder Buy-in: A successful APM pilot can demonstrate the tangible benefits of the solution to key stakeholders, including executives, managers, and end-users. By involving stakeholders throughout the pilot process and communicating the results, you can build stronger buy-in and support for a full-scale implementation. 

While pilot projects require an investment of time and resources, they ultimately help organizations make informed decisions, reduce risks, and maximize the value of their APM initiatives. By carefully planning and executing an APM pilot, you can lay the foundation for a successful full-scale implementation and accelerate your journey toward asset performance excellence. 

What: Choosing the Right APM Pilot Type

One of the important decisions in planning an APM pilot is selecting the pilot type that best aligns with your organization’s goals, resources, and constraints. Gartner identifies five common types of pilots: 

  • Lightweight Custom Demo: An extension of the vendor demo during the sales cycle, allowing you to experience the APM solution with a limited dataset and scope. 
  • Accuracy Competition: Focuses on testing the modeling capabilities of an APM solution, comparing the accuracy of different vendors’ models to identify a fault. 
  • Feasibility Study and Evaluation Workshop: Assesses the potential impact of an APM solution on your supply chain performance, identifying areas for improvement and estimating the expected benefits. 
  • Quick Start Blueprint: A smaller-scale version of a classical pilot, designed to rapidly demonstrate the value of an APM solution within a limited scope and timeline. 
  • Classical Pilot: A comprehensive, real-world implementation of an APM solution using your organization’s data, processes, and assets. This pilot type lays the groundwork for a broader rollout and helps prove the technology’s effectiveness in your specific context. 

Pilot Factors

To choose the right pilot type, consider the following factors: 

  • Objectives: Define the primary goals and success criteria for your APM pilot. Are you looking to validate the technical feasibility, assess the potential ROI, or gain hands-on experience with the solution? 
  • Scope: Determine the size and complexity of the pilot project. Consider the number of assets, sites, and processes to be included, as well as the duration of the pilot. 
  • Resources: Evaluate the available resources, including budget, personnel, and infrastructure. Ensure that you have the necessary support and expertise to execute the chosen pilot type successfully. 
  • Timeline: Establish a realistic timeline for the pilot, taking into account the planning, implementation, and evaluation phases. Consider any external deadlines or constraints that may impact the pilot schedule. 
  • Stakeholder Engagement: Identify the key stakeholders who need to be involved in the pilot, including decision-makers, subject matter experts, and end-users. Assess their availability and willingness to participate in the selected pilot type. 

By carefully evaluating these factors and aligning them with your organization’s priorities, you can select the APM pilot type that offers the best balance of value, risk, and feasibility. Keep in mind that the right pilot type may vary depending on your specific context and requirements, so it’s essential to engage with your APM solution provider to discuss the options and make an informed decision. 

How: Ensuring a Successful Pilot

Conducting a successful APM pilot involves several key steps, from planning and preparation to execution and evaluation. By following these best practices and considerations, you can ensure that your pilot project delivers meaningful results and informs your decision-making process for a potential full-scale implementation. 

Assemble a Cross-Functional Team and Select Partners 

The first step in conducting an APM pilot is to assemble a cross-functional team. The team includes key stakeholders and subject matter experts from relevant departments, such as maintenance, operations, IT, and finance. Clearly define the roles, responsibilities, and expectations for each team member to ensure effective collaboration and communication throughout the pilot. 

When selecting partners for your APM pilot, consider whether to engage with a single APM vendor for simplicity or multiple vendors for combined expertise and potential future partnerships. Additionally, explore funding options, such as grants or including the pilot in your Research & Development initiatives, to secure the necessary resources for the project. 

Plan and Execute the Pilot 

Develop a detailed project plan that outlines the milestones, deliverables, and resources required for the pilot. Allocate sufficient time and budget, taking into account any contingencies or potential delays. Ensure that the necessary infrastructure, data, and systems are in place to support the pilot, and provide training and support to pilot participants to ensure effective adoption and usage of the APM solution. 

Align goals and expectations with your APM vendor(s) and reach a consensus on the timeline and budget. This collaboration will help ensure that all parties are working towards the same objectives and that the pilot stays on track. 

Prepare for the Pilot 

Before launching the pilot, ensure that it aligns with your organization’s overall roadmap and strategy. Take a deep dive into the APM solution’s features and tools. Encourage team members to utilize the platform daily. Generate and share daily or weekly reports with findings to key stakeholders to maintain transparency and engagement. 

Complete a pre-pilot checklist that includes outlining a problem statement, determining the solution’s viability, engaging key stakeholders, meeting with vendor engineers, discussing the project with all involved members, and defining clear outcomes. This preparation will help set the stage for a successful pilot. 

Monitor and Measure Performance During the Pilot 

Throughout the pilot, perform daily and weekly activities to fully explore the APM solution’s capabilities. Analyze how the software improves day-to-day operations and productivity. Take advantage of vendor-provided check-ins and support to ensure that you are making the most of the pilot experience. 

Share progress and insights with necessary team members and stakeholders. Be sure to send reports to your APM vendor(s) to keep them informed of your progress. This ongoing communication will help maintain alignment and identify any potential issues or opportunities for improvement. 

Evaluate and Communicate Results After the Pilot 

Once the pilot is complete, compare operations before and after the pilot to determine the results and benefits realized. Communicate the pilot outcomes and value to decision-makers and key personnel. Furthermore, highlight the potential impact of a full-scale APM implementation. 

Use the analysis to determine if a full-scale implementation is the right decision for your organization. Consider factors such as the pilot results, organizational readiness, resource availability, and alignment with long-term goals when making this decision. 

By following these steps and best practices, you can conduct a successful APM pilot that delivers meaningful insights and informs your decision-making process for a potential full-scale implementation. Remember to remain flexible, communicate openly, and leverage the expertise of your APM vendor(s) throughout the pilot to maximize its value and impact. 

Pitfalls to Avoid in APM Pilots

While APM pilots offer numerous benefits, there are several common pitfalls that organizations should be aware of and take steps to avoid. By addressing these potential challenges proactively, you can ensure a smoother and more successful pilot experience. 

  1. Insufficient Time Allocation

    One of the most common pitfalls in APM pilots is not allocating enough time to fully evaluate the solution’s effectiveness and suitability for your organization. Rushing through the pilot or cutting it short due to time constraints can lead to incomplete or inaccurate assessments. Ensure that you allocate sufficient time to explore the APM solution’s features, gather data, and analyze results to make an informed decision. 

  2. Lack of Clear Objectives and Evaluation Criteria

    Without clearly defined objectives and evaluation criteria, it can be challenging to determine the success of your APM pilot. Before starting the pilot, establish specific, measurable goals. Also, define the key performance indicators (KPIs) that will be used to assess the solution’s impact. This clarity will help keep the pilot focused and provide a framework for evaluating its outcomes. 

  3. Limited Stakeholder Engagement

    Failing to engage all relevant stakeholders in the APM pilot can lead to a lack of buy-in and support for a potential full-scale implementation. Involve representatives from all departments that will be impacted by the APM solution. Include maintenance, operations, IT, and finance personnel. Regularly communicate progress, gather feedback, and address concerns throughout the pilot to maintain stakeholder engagement.

  4. Pilot Scope Creep

    It may be tempting to expand the scope of your APM pilot as you discover new features and possibilities. Although, this can lead to a phenomenon known as “pilot scope creep.” Scope creep can dilute the focus of the pilot, strain resources, and make it more difficult to evaluate the solution’s effectiveness. Stay focused on the original objectives. And resist the urge to add new elements to the pilot unless they are critical to the assessment. 

  5. Neglecting Data Quality and Integration

    APM solutions rely heavily on accurate, reliable data from various sources. Neglecting data quality and integration issues during the pilot can lead to misleading results and hinder the solution’s effectiveness. Ensure that you have a robust data management strategy in place. Also, work closely with your APM vendor to address any data quality or integration challenges that arise during the pilot. 

  6. Overemphasizing Short-Term Results

    It’s important to monitor and evaluate the APM solution’s impact during the pilot. However, avoid placing too much emphasis on short-term results at the expense of long-term considerations. Keep in mind that the full benefits of an APM implementation may not be immediately apparent. It may require time to materialize. Consider the long-term strategic goals of your organization when evaluating the pilot’s success. 

By being aware of these common pitfalls and taking proactive steps to avoid them, you can navigate the APM pilot process more effectively and make informed decisions about a potential full-scale implementation. Remember to allocate sufficient time, define clear objectives, engage stakeholders, manage scope, ensure data quality, and maintain a balanced perspective between short-term results and long-term goals. 

HanAra: Your Trusted Partner in APM Excellence 

At HanAra, we are committed to helping organizations unlock the full potential of their assets through our advanced APM solution, HanPHI. We have a proven track record of successful pilot projects and implementations. Our team of technology experts and engineers is dedicated to delivering customer-centric solutions that drive asset reliability, availability, and performance. 

By partnering with HanAra, you can leverage our expertise, best practices, and cutting-edge technologies. We help you accelerate your journey toward asset performance excellence. Contact us today to learn more about how our APM pilot programs can help you transform your operations and achieve sustainable success.Â