HGK optimizes asset management and cuts costs

Enabling proactive identification of risks and issues

Published on 08-Nov-2013

Customer:
Häfen und Güterverkehr Köln Aktiengesellschaft (HGK)

Industry:
Travel & Transportation

Deployment country:
Germany

Solution:
Enterprise Asset Management, Asset Management, Information Integration, Smarter Planet

IBM Business Partner:
EAM Software

Overview

HGK is a public-private organization based in the German city of Cologne. Together with the Neuss-Düsseldorf port, HGK founded RheinCargo, a logistics company, and tasked it with running its port and rail operations, to bundle its resources and further increase the capacity of the ports. In its first year of business, RheinCargo increased the amount of freight transported to 27.7 million tonnes. Additionally, the company loads almost 8,000 ships every year in Cologne, Neuss and Düsseldorf.

Business need:
HGK has significantly expanded its business in the last ten years and needed a system to support operation of the ports and rail cargo units to help optimize asset management and enable preventative maintenance.

Solution:
By capturing data on all company assets and systems in both the ports and rail cargo units and feeding it along with materials and inventory management data into a centralized system, HGK gains a comprehensive view of all assets. The new solution enables the company to monitor assets throughout their lifecycle, identifying those needing maintenance or replacement before they fail, saving time and money.

Benefits:
Offers complete transparency of all repairs and maintenance. Improves visibility of costs. Reduces planning efforts due to comprehensive transparency of asset status and costs. Enables proactive identification of risks and issues. Increases efficiency as the system’s dashboard provides meaningful drawings, diagram and datasheets at the push of a button. Improves materials management and planning, enabling demand-oriented material orders. Optimizes cycle times in order processing.

Case Study

To read a German version of this case study, click here.

Smarter Transportation: Maximizing insight into asset status and cost

Instrumented
The new solution captures the data needed to support port and rail cargo operations. The data is fed into a centralized system that also integrates materials and inventory management data.

Interconnected
The centralized system contains data about all the company’s relevant assets, and can provide a comprehensive view of the status of each asset. The system is able to correlate data from the material management and inventory management system as well.

Intelligent
The solution continuously monitors all assets throughout their lifecycle. With extensive historical data, plant managers can identify patterns for wear and tear and abnormal performance. This enables them to carry out preventive maintenance on assets, and also predict where assets may start to break down in the future.


HGK is a public-private organization based in the German city of Cologne. Together with the Neuss-Düsseldorf port, HGK founded RheinCargo, a logistics company, and tasked it with running its port and rail operations, to bundle its resources and further increase the capacity of the ports. In its first year of business, RheinCargo increased the amount of freight transported to 27.7 million tonnes. Additionally, the company loads almost 8,000 ships every year in Cologne, Neuss and Düsseldorf.
To deliver its comprehensive logistic services, RheinCargo manages a fleet of 83 locomotives with 648 freight carriages, making it the largest privately-owned rail freight transport operators in Germany. The company transports goods by rail over more than 3.4 billion kilometers to reach destinations in across Germany and neighbouring countries. HGK provides the infrastructure, managing a network of around 100 kilometers. HGK Group employed around 630 people in 2012, and the company generates annual revenues of more than €120 million.

Business Need
HGK has significantly expanded its business in the last ten years. The company needed a system to support operation of the ports and rail cargo units to help optimize asset management and enable preventative maintenance. HGK wanted to gain transparency across all its assets. In addition it wanted to integrate all key processes and optimize material and inventory management. The company turned to IBM Business Partner EAM Software for help.

Solution Implementation
HGK implemented a solution based on IBM® Maximo® Asset Management to manage its heterogeneous asset portfolio comprising real estate, cranes, equipment to handle liquid bulk cargo (e.g. oil and fuel), dry bulk cargo (e.g. gravel, coal, grain, feed and scrap), break bulk cargo (e.g. automobiles, paper and forest products), chemicals (e.g. gas, acids, alkaline solutions and other dangerous goods), ramps, locomotives, cargo cars, containers and service vehicles.

IBM Business Partner EAM Software (formerly F’IS) supported the IT department of HGK with comprehensive services – from system installation to technical services to consulting. First, a detailed survey was conducted. As a result, HGK decided to consolidate maintenance and procurement processes for both the ports and freight trains in a single system. EAM Software assisted in mapping the complex plant structures and importing the data into the system.

The new solution is used not only for asset management and maintenance but also for inventory management in the ports unit and for material management in the rail cargo unit. In the ports unit, HGK decided to replace its existing SAP software with the new IBM Maximo software-based solution.

Maintenance planning and control and preventative maintenance are crucial tasks for HGK, as the company cannot afford to have malfunctioning equipment of any sort. Leaks in pipes or containers or overdue maintenance schedules of cranes or locomotives could have disastrous consequences for humans, the environment, HGK’s business and its reputation. This is especially true since the company handles oil, fuels, gas, acids and other dangerous goods. But even the breakdown of a crane or a locomotive is a big risk that HGK needs to avoid as it could result in serious injury to people.

The new solution provides HGK with complete transparency across all its assets. At the push of a button engineers can display the status of each asset, including all data on that asset (maintenance history, regulatory and compliance information and all other relevant specifics). A highly visual interface shows clearly if an asset’s performance or measured value deviates from the norm, either in a single instance or as a pattern. With this information, engineers can identify potential problems at a glance and take preventative action to fix any issues and prevent failures. It allows them to replace aging assets and better manage all assets throughout their lifecycles.

In addition, the new solution provides visibility of costs, combining all cost objects involved in maintenance, including work orders, maintenance orders, procurement, warehousing and tools into a single system. The solution can generate cost analyses on a department basis or as part of overall budget planning. Costs are linked to technology, which helps HGK to gain even more transparency.

Integrated with this information is the data from materials and inventory management systems. This allows HGK to immediately see the right tools or material that may be necessary for repairs and to take action in the event that it is not in stock.

Benefits

  • Offers complete transparency of all repairs and maintenance
  • Improves visibility of costs
  • Reduces planning efforts due to comprehensive transparency of asset status of costs
  • Enables proactive identification of risks and issues
  • Increases efficiency as the system’s dashboard provides meaningful drawings, diagram and datasheets at the push of a button
  • Improves materials management and planning, enabling demand-oriented material orders
  • Optimizes cycle times in order processing

For more information
To learn more about how IBM and its customers are building a Smarter Planet, contact your IBM sales representative or IBM Business Partner, or visit us at ibm.com/smarterplanet

For more information about EAM Software, please visit: www.eam-software.de

Products and services used

IBM products and services that were used in this case study.

Software:
Maximo Asset Management

Legal Information

© Copyright IBM Corporation 2013. IBM Deutschland GmbH, IBM-Allee 1, 71139 Ehningen, Deutschland. ibm.com/de. IBM Österreich, Obere Donaustrasse 95, 1020 Wien. ibm.com/at. IBM Schweiz, Vulkanstrasse 106, 8010 Zürich. ibm.com/ch. Produced in Germany. November 2013. IBM, the IBM logo, ibm.com, Let’s Build A Smarter Planet, Maximo and Smarter Planet are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the web at: www.ibm.com/legal/copytrade.shtml. This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. The client examples cited are presented for illustrative purposes only. Actual performance results may vary depending on specific configurations and operating conditions. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.