An interesting look at how South American companies are deploying Maximo solutions to track and manage physical assets.
Everyone has assets…….that’s a fact!
And we are seeing more and more “new” sectors engaging to use IBM Maximo Asset Management to manage their assets. Places where you might not have thought of previously. For example, in Latin America Maximo is now managing cattle, crystal, baked goods and cinemas, in addition to utilities, transportation, healthcare and the other more traditional sectors.
What is driving more and more “new” sectors to consider Maximo? It is simple, businesses are looking to improve efficiencies in hopes of improving the bottomline ROI. This trend is seen everywhere and even more important in difficult economic times.At the Brazilian Confederation of Agriculture and Livestock (C.N.A.), Maximo provides traceability for 24 Million “Live Assets” for Brazilian livestock producers. In 2010, revenue from foreign cattle exports for Brazil was $4.8B, with expectations of growing to $5.5B in 2020. The volumes and complexity of this market are mind boggling!Let’s take for example a few years ago when there were “mad cow” out breaks across the world. The main question that had to be answered for livestock producers was “is your cattle safe?” Cattle producers had to guarantee that their cattle was safe & not infected, and this was in addition to their normal processes for a dynamic market.The main business challenge was simple…..there was no end-to-end integrated system. The 3 main systems (Animal transfer protocol; traceability database; and health & quality control of food production) were isolated with different architectures.
Once C.N.A. implemented Maximo they were able to integrate all business supply chains (private companies, rural associations, government agencies) with a scalable and flexible solution for a growing business. Maximo provides traceability and reliability through clearly defined rules and responsibilities and process automation to enable operational cost reduction.
Now to answer your question of “how do I know if the beef I’m eating is safe”……..Maximo manages work orders for vaccines and through individual identification “chips” you have a record of all locations that each cow was in, thus guaranteeing it’s safety and providing the data required for government approvals prior to exportation.
In the future C.N.A. foresees expanding “chip” usage for traceability.
Next up, Cristal Chile, which is one of 3 players in the bottle market, with 76% of the domestic Latin American market in 2010, worth $210M. They have 2 main plants, 1 in Argentina with 11 production lines and 1 in Chile with 3 production lines. Currently they produce 2500 different bottles that require 5 production line changes a day. Interestingly, the majority are wine bottles (63%).The production of bottles for wine, soda, etc produces small profit margins and requires constant focus on reducing operating costs. Time is money, so just like with any manufacturing plant, high availability and reliability of production lines are crucial. Maximo plays a key role in Total Productive Maintenance (TPM) for Cristal Chile, from planned maintenance to preventive to predictive maintenance…….all play a role in delivering operational excellence. When “man and machine are in harmony” as they like to say, production lines are delivering product and revenue.
To learn more about their operations, check out the Cristal Chile presentation from Pulse 2011.
We have now gone from cattle to crystal, but I’d be remiss if I didn’t mention a few other sectors where Maximo is found in Latin America. Maximo can also be found at:
- Cinepolis, a leader in the entertainment industry in Mexico and Latin America. Maximo enables Cinepolis to implement best practices across their facilities (movie theaters, projection rooms, food and shopping venues). With Maximo, Cinepolis was able to cut corrective response times in half from 16 days in 2008 to 8 days in 2010. Their focus for the future will be to integrate Maximo with their ERP system and to create virtual modules for TPM and preventive maintenance. To learn more, check out their presentation at Pulse 2011: http://pulse.vportal.net/?auid=225
- Bimbo Group, the largest food company (in sales) in Mexico and bakery in the world, utilizes Maximo for Transportation to ensure on-time deliveries with their fleet of 44,000 vehicles across Mexico and the US. Logistics are key especially when you are talking about the freshness of baked goods!
- Vale, the 2nd largest mining company in the world and Brazil’s largest logistics provider, utilizes Maximo from end-to-end …… from the actual pelletization process, to the fleet requirements, to railroads (2nd largest railroad in Brazil), and finally to ports for exports. Having a comprehensive, integrated enterprise asset management system enables Vale to manage operations across 5 continents and across a diverse set of assets and plants. They find value in preventive maintenance and by having a system that is smart, they have been able to reduce labor costs by as much as 50%.