July 26, 2011

Jim Dieter – ASTM E2452 Overview

Eric Fassett – Contractor Implementation

Rick Shultz – Non-adoption of Standard

Earl Evans – Management Considerations

Equipment Management Process Maturity (EMPM) Model

Maturity LevelsDefinition

1.0 Basic Processes that are chaotic, undocumented, and inconsistent, typically the starting point of a process.

2.0 Structured Processes that have been defined and are understandable, documented, and capable of being repeated.

3.0 Consistent Processes that are prescribed and consistently performed at the organizational level with consistent results.

4.0 Managed Processes that are systematic, have process performance established, and are predicable.

5.0 Optimizing Processes that are embedded within an organization and are supported through all levels of management.

Assessments should be conducted in such a way that another assessment conducted independently would achieve substantially the same results

Assessments should be substantiated and documented adequately to allow independent review and verification of the results

Assessments and Measures

6

• A process for the assessment and reporting of an entity’s overall equipment management process maturity

• The highest value is placed on continuous improvement• Designed to be applicable and appropriate for all

equipment-holding entities

The standard addresses two fundamental levels of Equipment Management activity within the entity: ◦ Process Management◦ Operations

The equipment lifecycle as addressed in the standard encompasses three fundamental lifecycle phases: Acquisition Use Disposition

EM Life CycleEM Life Cycle

Process Management

OperationsEMPM

Lifecycle Maturity Level

1.0 Acquisition 3.2 2.1 2.72.0 Use 2.9 3.0 3.03.0 Disposition 1.5 1.9 1.7

EMPM Maturity Levels 2.5 2.3 2.4

The EMPM provides assessment results that are easy to understand and communicate

Areas requiring additional resources become apparent and thus can be more readily addressed

Improvement can be tracked in meaningful ways Assessment detail allows attention to be drawn to processes of

exceptional maturity

Our Corporate Property Council decided that we would prepare an annual assessment to benchmark our five sector’s property management processes

A team was formed with representatives from all sectors Reviewed the maturity levels and assessment criteria Simplified maturity levels to address how we assess each

criteria, e.g. procedures, evaluations, metrics, best practices

Determined that Process Management was redundant across the three life cycles (135 to 45)

Reviewed criteria for applicability and best value for effort expended

Agreed upon 61 criteria that would best represent our property management processes

Targeted initial assessment for September 2010 Conducted training of sector representatives Compiled data for corporate rollup number Results showed that across the board we had procedures

for almost everything and measured, or performed metrics, on a majority of the criteria

2011 effort is to review initial assessment Baseline effort for to level assessment Second Evaluation July 2011 Add columns for basis of assessment and location where

backup documentation resides Column on form to compare to previous years Added .5 philosophy where there were different scores for

customer and company property GSC, Security, ITAR, ESH, Risk Management consulted

EMPM Process Maturity Framework

Documented People Trained Process Monitored

A – B - C

A – B - C

A – B - C

Process Ownership Repeatable & Standardized Stakeholders Involved

Managed with Data Predictable Metrics with Targets

Continuous Improvements

Process Maturity

Optimizing

Managed

Consistent

Structured

Basic

A – B - C C - A – B

How do you do this?

I Don’t Know!

Undocumented Inconsistent

Trend Analysis Embedded/Supported

Min.

Goal

Meeting

Minimum

Lack of value added in my current environment Lack of management support

If you need resources, you may be in trouble!◦ We find ourselves in a difficult budgetary environment right now◦ With this model, you can (within certain parameters) design an

approach that provides benefit without a significant demand for new resources

What are you proposing?◦ More specifically, why are you here?◦ Is this something new?◦ Why weren’t you doing it before?◦ Is anyone else doing it?◦ Who developed it?◦ What does the customer think about it?

Is the juice worth the squeeze?◦ Management will want to know:

What is it going to cost? There will be non-recurring cost There will also be recurring cost

Why are we doing it? What will it do for me?

◦ The questions will likely be asked whether you are proposing additional resources or not

Aha, a rating! Do we pass or fail?◦ Not the issue; this is a process improvement model◦ Can be converted to a self-assessment model

You need to get management “buy-in”◦ You will need it to ensure support from other functional

organizations◦ A risk assessment / benefit analysis is important

Have Your (Technical and Planning) Act Together◦ Know the model and be able to explain it fully◦ Have an implementation plan (approach and timing)◦ Know where you have flexibility◦ Know:

Your customer’s position (where appropriate) The approach of related entities

◦ Clarity and brevity are generally good ideas