Plant Safety, Asset Availability and Corporate Social Responsibility Driving Asset Management Strategy, according to Lawson Software Study
Research suggests a formal, strategic, integrated systems approach can help reduce cost, provide higher security and lower risk
ST. PAUL, Minn., March 28, 2007 – According to a new study sponsored by Lawson Software (Nasdaq: LWSN), concerns about plant safety, increased demand for asset availability and reliability, and environmental issues are having the most impact on organizations’ asset management strategies. The global study, “Strategic Asset Management Across the Organization Delivers a Compelling Return” was sponsored by Lawson and conducted by Industry Direct Ltd. (IDL). The study included 189 participants from Europe, Australia/New Zealand and the United States, representing utilities, discrete manufacturing, mining, process manufacturing and transportation industries.
The study found concerns about the environment and other corporate social responsibility (CSR) issues are increasingly influencing strategic asset management decisions. Ninety-seven percent of survey respondents said they have at least one CSR initiative in place. Such initiatives include improved energy management programs, ethical business practices surrounding procurement and emission reduction.
“A strategic, integrated approach to asset management can play a big role in addressing corporate social responsibility and the other asset issues,” said Suzanne Benn, marketing director, Lawson. “As examples, an integrated enterprise asset management solution will support these efforts helping to ensure that a company’s assets operate efficiently within environmental guidelines, and a preventive maintenance program can help to lengthen the lifespan of spare parts and assets, save natural resources and reduce waste.”
A company’s view on maintenance can impact an asset management strategy, budget and the adoption of best practice techniques such as reliability centered maintenance (RCM). Among the study’s findings, many early adopters of asset strategy and policy view maintenance as a profit opportunity instead of a cost center issue. In the study, 39 percent of respondents say their company strongly believes that maintenance is a worthwhile investment.
The study suggests that if companies do not adopt strategic asset management policies, executives in areas such as finance and procurement may not see maintenance as an investment. That view can impact the amount of budget allocated for asset maintenance. According to the final study report, results showed that more than 70 percent of study respondents spend less than half of their asset maintenance budget on preventive work and only pursue a “fix it when broken” strategy.
Respondents that lost more than 11 percent of their production or operation time annually to unplanned downtime spend more of their maintenance budget on corrective measures. According to the study, “This tactical and reactive approach is not sustainable and companies must formalize policy and strategy for asset management to improve operational performance, as regulations increase and society becomes intolerant of failure or accident statistics.”
Reliability centered maintenance is an approach that helps develop and maintain the most effective and economically beneficial maintenance strategy for each critical asset. The study also shows that respondents that have adopted RCM spend 40 percent or more of their maintenance budgets preventing failures before they happen. Conversely, 70 percent of the respondents that spend more than 80 percent of their budget on corrective maintenance said that RCM had either a small or no role in their business.
“Based on the numbers, the study shows that progress is being made with companies moving toward an integrated systems approach to help reduce cost, provide higher security and lower their risk,” said Benn. “At Lawson, our integrated enterprise asset management solution can help organizations worldwide maximize asset availability, reduce asset lifecycle cost and deliver a better return on asset investment as well as address growing corporate social responsibility concerns.”
Interested organizations can download the full report “Strategic Asset Management Across the Organization Delivers a Compelling Return” and participate in a related online survey by going to www.lawson.com/IOB. Respondents will receive a free online personal benchmark report that compares their answers to the overall results of the IDL study.
About the Study
IDL, based in Hertfordshire, United Kingdom, with offices around the world, received 189 valid responses for the survey from October 2006 to January 2007. Target decision makers included directors of maintenance and facilities, head site engineer and plant manager/director.
About Lawson Software
Lawson Software provides software and service solutions to 4,000 customers in manufacturing, distribution, maintenance and service sector industries across 40 countries. Lawson’s solutions include Enterprise Performance Management, Supply Chain Management, Enterprise Resource Planning, Customer Relationship Management, Manufacturing Resource Planning, Enterprise Asset Management and industry-tailored applications. Lawson solutions assist customers in simplifying their businesses or organizations by helping them streamline processes, reduce costs and enhance business or operational performance. Lawson is headquartered in St. Paul, Minn., and has offices around the world. Visit Lawson online at www.lawson.com.
Forward-Looking Statements
This press release contains forward-looking statements that contain risks and uncertainties. These forward-looking statements contain statements of intent, belief or current expectations of Lawson Software and its management. Such forward-looking statements are not guarantees of future results and involve risks and uncertainties that may cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company is not obligated to update forward-looking statements based on circumstances or events that occur in the future. Risks and uncertainties that may cause such differences include but are not limited to: uncertainties in Lawson’s ability to realize synergies and revenue opportunities anticipated from the Intentia International acquisition; uncertainties in the software industry; uncertainties as to when and whether the conditions for the recognition of deferred revenue will be satisfied; global military conflicts; terrorist attacks; pandemics, and any future events in response to these developments; changes in conditions in the company's targeted industries; increased competition and other risk factors listed in the company's most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission. Lawson assumes no obligation to update any forward-looking information contained in this press release.
Lawson Software
Joe Thornton
+1-651-767-6154
joe.thornton@us.lawson.com
Lut Verschueren
Europe Media
+32-9-236-16-36
Lut.verschueren@be.lawson.com
Lannette Cox
Australia/New Zealand Media
+61-2-8437-5803
Lannette.cox@au.lawson.com
Zon Lim
Asia-Pacific Media
+65-6349-3569
zon.lim@sg.lawson.com
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