How to Manage a CMMS Project
in a Challenging Cultural and
Organizational Environment
June 15th, 2004
Don Dennis, P. Eng.
President, FmT Consultants Ltd.
Case Study
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University of Saskatchewan (U of S)
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Facilities Management Division (FMD)
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November 2001 to May 2002
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Copy of the presentation at www.fmt.ca
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Also a copy of the related presentation for the
APPA/NACUBO conference in Nashville in July 2003
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Learning Objective
“How to” use a non-traditional
project management process to:
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Select a software product for a facility
management information system
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Achieve cultural and attitudinal change
for organizational transformation
Technology as a catalyst for change.
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Format of the Presentation
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Background on the project
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FMD view of the project
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FmT approach to technology projects
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Project management process and
techniques
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Q&A
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About FmT Consultants
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Management consultants specializing in
facility management & technology
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Located in Calgary, Alberta
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Established in 1993
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Independent, objective consulting service
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Most Clients are post-secondary
educational institutions and other public
sector organizations
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Don Dennis, P.Eng.
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www.fmt.ca
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Experience the raw, gut-wrenching drama
of human conflict through Accounting
Preparing to do battle
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The thrill of victory
The agony of defeat
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Background on
the project
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FM Division
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Planning and Development
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Operations & Maintenance
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Custodial
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Grounds
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Utilities
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Purchasing
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Central Stores
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Finance
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Existing CMMS
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core business system for FMD
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customized version developed in 1991
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upgraded to base product in 1998
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Client/server application
Oracle database
Open VMS platform
Windows NT client o/s
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FM IS Review - summer 2001
FMS Component System Evaluations
No.
COMPONENT SYSTEM
1)
Syn – accounting
2)
Syn – fleet management
3)
Syn – inventory control
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Syn – project cost reporting
5)
Syn – purchasing
6)
Syn – timekeeping
7)
Syn – work orders/maintenance
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fmis – equipment inventory
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fmis – preventive maintenance
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CRIS classroom records
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DMS View
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Key management
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Insite space management
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Micro GDS CAD
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RECAPP renewals planning
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Resource 25 room scheduling
Manual
Some auto’n
Automated
Advanced
Maximum
Legend
current system
development
optimum system
development
0
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1.0
2.0
3.0
4.0
5.0
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FMIS Review
CMMS (1998 version)
purchasing, inventory control,
timekeeping
X work orders, accounting, project cost
reporting
X 1991 version still used for asset
management, preventive maintenance
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Problems with CMMS
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limited staff involvement in 1998 decision
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minimal use of WO’s
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no account or asset hierarchies
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limited management reporting capabilities
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inadequate financial reporting
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varied staff commitment to system
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Need for CMMS Project
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product support discontinued for the 1998
version
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internal staff attitudes towards the system
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FMD needs last assessed in 1990
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change in FMD leadership in 2000
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Effective CMMS was required to achieve
FMD strategic plan
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FMD View of
the Project
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Scanning Summary
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Our environment was rapidly changing
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We had not kept up
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Pressures to perform and justify existence
BUT
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No tool to manage our business (even though had
installed a CMMS twice)
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No data; no proof of stewardship or performance
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No cost reporting
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No cost benefit or life cycle costing
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No justification for funding requests
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“Real men do it in their head”
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O&M Department Size-up
Strengths
Operations process
- Dedicated staff
Risk management
issues
Use of technology
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Weaknesses
- Huge cultural and attitudinal
inertia
- Poor / no use of technology
- Poor productivity
- Unwillingness to change
- Insurance, safety and purchasing
procedures not in place
- Poor HS&E programs
- Poor project management
processes
- Some computerized
systems
- Good space mngt
system
- Fear and unwillingness to adopt
new methods and technologies
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Action for the CMMS Project
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Needed a comprehensive, broad, powerful,
useable facilities management tool (CMMS)
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Buy in was critical – this time it had to be USED
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Could not invest more $ without clear benefits
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Time pressure to improve business
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Project management expertise
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Why failed in the past; how to succeed this time
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Leadership = Buy-in = Transformation
The technology was just the catalyst for cultural,
attitudinal and organizational transformation
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Project Buy-in Strategy
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Credible project management
Multi-faceted education and repetition
Top led; bottom fed
What’s in it for me
Fear, threat, criticism, pride
Make the work easier
Improve ability to serve the customer
Job security
Protect “their” assets – tool FOR THEM, designed BY THEM
Bottom line direction that “this decision has been made now it’s
YOUR JOB to make it happen”
Consequence of non-compliance
Replacement of senior managers
Teams and team leaders
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Key Success Factors - CMMS Project
Key success factors
Driving forces
- Buy in and involvement of staff
- Embrace new technologies
- Empowerment and inclusion
- Funding rewards
- Reputation enhancement
- Job satisfaction
- Communications and
understanding
- Job security
- Funding levels
- Political interference
- Coordination and
leadership
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Staff Responses to CMMS Project
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I won’t understand how to use it
I don’t need it
It’s a waste of money
Just give me more men
I don’t want to report how I spend my budget
This is just a management tool
I’ll waste time with computers and paper
I need to run an operation, not use a computer
It will put work order bureaucracy in between our customers and
our service providers
We don’t have time to specify a new system
There is nothing wrong with our current systems and processes
I’ve always come in under budget, why do we need a new system
I don’t need a computer to tell me which roofs are bad
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FmT Approach to
Technology Projects
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FM Function
People
Processes
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Technology
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Situation in O&M - FMD
People
Processes
Technology
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Role of Technology in FM
Driver - Financial
FM
Enabler –
Technology
1990
2000
Evolution of FM
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Growth of Technology
1990
2000
Evolution of FM
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Desired FM Relationship
People
Technology
Processes
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Project Management
Process and
Techniques
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Parameters for the Project
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complete a needs assessment with
maximum staff participation
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issue RFP to public tender
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invite existing CMMS vendor to bid
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product evaluations and selection by FMD
staff
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FMD management retains control of the
project
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Project Management Objectives
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define a project management structure &
process
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define & maintain the project budget
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clearly define user needs (to the users &
bidders)
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prepare a detailed RFP
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complete an objective evaluation of proposals
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finalize contract and pricing details
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Change Management Objectives
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define the need for change
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build a strong support group
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maximize staff involvement in decision
making
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users define needs and priorities
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maximize opportunities for staff education
and training
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Project Management Process
Project
Initiation
Needs
Assessment
Draft RFP &
Evaluation Criteria
Complete RFP
& Criteria
Evaluate
Proposals
RFP tender
Select 8
bidders
Short list 3
Products
Software demos
& evaluations
Summarize
Proposals
& Evaluations
Final
Summary
Finalize Details
- test evaluation copy
Select a
Preferred Product
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Project Management Concept
Project Requirement
Team
Individuals
Roll Up Summary
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Team
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Step 1- Project Initiation
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treat as a project
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appoint a Project Manager
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prepare 33 step workplan (per the FmT
proposal)
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define objectives, deliverables and
schedule
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map the process for the project completion
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Project Management Structure
Steering Committee
Project Manager
Project
Sponsor
Project Team
User
Groups
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Steering Committee
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role
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seven members
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provide direction to the Project Manager
make management decisions
AVP, 4 Directors, 2 Managers
eight - 2 hour SC meetings
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Project Team
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role
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represent user groups
define staff needs
make technical decisions
evaluate products
make recommendations to the SC
ensure buy-in of user groups
14 members
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representing each major CMMS
function/module and other FMD work units
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First SC and PT meetings
PPT presentation
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objectives of the project
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Roles of the SC, PT and Project Manager
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communication channels
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stakeholders
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project management process
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schedule
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detailed workplan
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Step 2 - Needs Assessment
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Purpose - define needs, educate staff,
maximize staff participation and buy-in
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identified 12 user groups
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meet with Team Leader and staff in each
group
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prepare draft functional requirements
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review drafts with User Groups
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User Groups assign 1, 2, 3 priority
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Needs Assessment
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FMD information system requirements
7 mandatory modules
5 optional modules
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total of 847 functional requirements
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include functional requirements in RFP
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Excerpt from the Functional Req’ts
Functional Requirement
1.0
1/2/3
F/P/N
Comments
BASE – FMD SYSTEM REQUIREMENTS
1.1
Compatibility with FMD standards
.1
.2
.3
.4
.5
.6
.7
.8
.9
3 tier client/server architecture
Meta data based architecture
Oracle Developer Tools
OLE compound document interface
Import/export data in all major file formats
Compatibility with M/S Exchange 2000 electronic mail
M/S Internet Explorer v. 5.5 or higher web browser
M/S Office 2000 and Office XP desktop office suite
Provides a system administration module
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2
2
1
1
1
1
1
1
Provide description
Specify supported formats
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Step 3 -Prepare the RFP
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define mandatory FMD requirements
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background info on FMD, the project,
existing systems, needs
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Corporate capabilities - 20 questions
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Product capabilities - 83 questions
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Product pricing - 30 questions
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Define a “Year 1 software cost” for “apples
to apples” price comparisons
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Y/P/N vendor response for compliance to
each functional requirement
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Step 4- Prepare Evaluation Criteria
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six major factors (in RFP) 5% to 35%
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59 minor evaluation factors 0.25 to 3.0%
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each factor linked to specific questions
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prepare a rating guideline for each factor
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criteria & guidelines approved by SC & PT
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Allows completion of objective evaluations
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Allows single source completion / Team
review of the evaluations
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Excerpt from Evaluation Rating Guideline
D escrip tio n o f F acto r
R F P R ef.
M ax P ts R atin g G uid elin es
C O R P O R ATE C AP AB IL ITIE S
C orporate ability to handle this project
H .1.1 to .7
1.00
0.5 is acceptable
S tability of C M M S product
H .2.1 + .2
1.00
0.75 = 10 years
R esources to support C M M S product
H .2.3 to .5
1.00
0.5 is acceptable
C M M S product share of m arketplace
H .2.6 + .7
0.50
0 for no response
A vailability of C M M S user group
H .2.8 + .9
0.50
0.5 = yes; 0 = no
S uitability of local support
H .3.1 to .4
1.00
1.0 for office in W estern C anada
5.00
P R O D U C T C AP AB IL ITIE S
M eets all m andatory requirem ents
I.3
2.00
- 0.50 per each deviation
H as all desired optional m odules
I.4.1
1.50
- 0.25 per each no m odule
H as all additional optional m odules
I.4.2
0.50
0.25 per m odule
H as other optional m odules of interest
I.4.3
0.25
0.25 for 1 or m ore
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Step 5 - Preferred Bidders
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define mandatory bidder requirements
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reviewed 35 potential CMMS vendors
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recommended 9 vendors
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Step 6 - Issue to Tender
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post on public website with mandatory
requirements
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courier RFP to selected vendors
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3 + week tender period
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received six acceptable proposals
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Step 7 - Evaluate Proposals
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Obtain clarifications from bidders
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Spreadsheets prepared by project manager
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summary of all proposals
evaluation of each proposal
summary of all evaluations
spreadsheet calculation of vendor
response to the functional requirements
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Excerpt from the Summary of Proposals
No.
I.9
1)
2)
3)
4)
5)
RFP reference
S/W maintenance and support agreement
Agreement available
Annual cost
Agreement commences
Services included
Services by head office
Services by local office
6) Max # FMD staff who can use support
7) Software upgrades included
If not, cost of next upgrade
If not, date of next upgrade
8) Can meet FMD telecomm service time req’ts
Normal times of telecomm operation
9) Discount for multiple years
10) Can adjust scope and cost
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A
B
C
Yes
Yes
Yes
20% of MRP (6)
17% of MRP
18% of cost
Upon s/w installation upon s/w installation
on shipment
Tel support & updates
Tel support
tel support & updates
All
All
None
None
None
All
No limit
3
no limit
Yes
Yes
Yes
n/a
n/a
No (7)
No
Yes
8 hrs x 5 days
8 to 17:00 hrs EST
8 to 20:00 hrs EST
10%
Yes
Yes
Yes
Yes
Yes
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Excerpt from the Summary of the Ratings
No.
Description of Factor
1.0 PROPOSAL
1)
Overall quality
2)
Adherence to guidelines for content
3)
Responded to all requirem ents
4)
Provided clear, concise responses
5)
Com pleted required forms
2.0
1)
2)
3)
4)
5)
6)
CORPORATE C AP ABILITIES
Corporate ability to handle this project
Stability of CMMS product
Resources to support CMMS product
CMMS product share of marketplace
Availability of CMMS user group
Suitability of local support
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RFP
Reference
2.1
App A to D
H.1.1
H.2.1
H.2.3
H.2.6
H.2.8
H.3.1
to .7
+ .2
to .5
+ .7
+ .9
to .4
Max
Points
A
Vendor
B
C
Average
1.00
0.50
1.50
1.50
0.50
5.00
1.00
0.50
1.00
1.00
0.50
4.00
0.75
0.50
0.75
1.00
0.50
3.50
1.00
0.50
1.25
1.00
0.50
4.25
3.92
1.00
1.00
1.00
0.50
0.50
1.00
5.00
0.75
1.00
1.00
0.00
0.50
0.00
3.25
1.00
1.00
1.00
0.50
0.50
0.50
4.50
1.00
0.75
1.00
0.00
0.50
0.00
3.25
3.67
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Evaluate Proposals
Benefits
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consistent evaluations
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minimize subjective evaluations
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minimize FMD staff time
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allows group participation
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FMD staff focus on comparing responses
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Step 8 - Select Short List
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SC ranked the vendors
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PT independently ranked the vendors
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PT recommended 3 shortlist vendors
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SC approved the 3 selected vendors
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Step 9 - Software Demos
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detailed instructions to vendors
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same format and venue for each demo
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SC and PT approved evaluation factors and
weightings
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product evaluations completed by 11 user
groups and 1 “at-large” group
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demos attended by 35 to 45 FMD staff
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Software Demos
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the Team Leader for each user group must
attend all 3 sessions
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evaluations were completed at the end of
each day
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Team Leaders provided ratings after
consultation with his/her user group
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Software Demos
Benefits
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equal opportunity for each vendor
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fully transparent process
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maximized staff participation
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staff education on CMMS use
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staff exposure to the latest technology
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Step 10 - Summarize Evaluations
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prepare a total rating of the proposals and
demos for each vendor
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SC rated the vendors
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PT independently rated the vendors
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PT recommended
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one vendor eliminated
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further analysis of final 2 vendors
SC concurred
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Step 11 - Further Evaluations
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obtained clarifications from vendors on
additional details
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User groups prepared lists of additional
questions for each vendor
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3 hour Web-X demo by each vendor
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telephone 3 references for each vendor;
circulate minutes to SC and PT members
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Step 12 - Select the Product
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3 hour meeting of all SC and PT members
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project cost estimates not provided
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selection based on performance and
technical capabilities
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Team Leaders voted for his/her user
groups
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preferred product selected
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SC approved the selection and budget
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Step 13 - Purchase the Product
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final pricing negotiations with the preferred
vendor
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completed a final project cost estimate
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negotiate the contract with the preferred
vendor
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prepare an implementation schedule
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Were the objectives achieved?
Project Management
define a project management structure & process
define & maintain the project budget
clearly define user needs (to the users & bidders)
prepare a detailed RFP
complete an objective evaluation of proposals
finalize contract and pricing details
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Were the objectives achieved?
Change Management
define the need for change
build a strong support group
maximize staff involvement in decision
making
users define needs and priorities
maximize opportunities for staff education
and training
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Thanks for your
Attendance!
Questions?
For more information
[email protected]
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