Maximo Asset Management

MAXIMO ASSET MANAGEMENT
Dissertation submitted in partial fulfillment of the

requirement for the
Degree Of
BACHELOR OF TECHNOLOGY
IN
ELECTRONICS AND COMMUNICATION
ENGINEERING
BY
SACHIN TAKYAR - 151055
UNDER THE GUIDANCE OF

Mr. SHEETAL RAMCHANDRA GADALE
Department of Electronics and Communication Engineering
i
Sensitivity: Internal & Restricted
Table of Contents
Declaration………….………………………………………………………………………...iv
Certificate…………………….………………………………………………………………..v
Acknowledgement...…….……………………………………………………………………………………vi
Abstract………………………………………………………………………………………………………….1
Chapter 1 Introduction.....................................................................................................................................2
Chapter 2 Asset Management……….……………………………………………………….5
2.1 Creating New Assets

2.2 Asset Subassemblies
2.3 Failure Codes
2.4 Meters
Chapter 3 Preventive Management……………...……………………………………………..15
3.1 Preventive Maintenance
3.2 Job Plan Sequencing

3.3 PM Forecast
3.4 PM Hierarchies
Chapter 4 Inventory Management……………………………………………………………...26
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4.1 Inventory Locations
4.2 Stock Tools in Inventory
4.3 Inventory Cycle Count
4.4 Inventory Transactions
4.5 Reservations
4.6 Internal Shipments

4.7 Inventory Reorder Theory
Future Scope.…………………………………………………………………………………...45
Conclusion……………………………………………………………………………………...46
References……………………………………………………………………………………...47
iii
DECLARATION
I hereby declare that the project work entitled “IBM MAXIMO 7.6.0” submitted to the
Department of Electronics and Communication, Jaypee University of Information
Technology, Solan is a record of an original work done by me. This project work is submitted
as a part of partial fulfilment for the award of the degree of Bachelor of Technology under
Jaypee University of Information Technology.
Sachin Takyar
151055
Department of Electronics and Communication Engineering
Jaypee University of Information Technology, Waknaghat, India
Date: 22 MAY, 2019.
iv
JAYPEE UNIVERSITY OF INFORMATION
TECHNOLOGY
(Established by H.P. State Legislative vide Act No. 14 of 2002)
P.O. Waknaghat, Teh. Kandaghat, Distt. Solan - 173234 (H.P.) INDIA
Website: www.juit.ac.in
Phone No. (91) 01792-257999
Fax: +91-01792-245362
CERTIFICATE
This is to certify that the work titled “IBM MAXIMO 7.6.0” submitted by Sachin Takyar
in partial fulfilment for the award of degree of Bachelor of Technology in Electronics and
Communication Engineering of Jaypee University of Information Technology, Solan has
been carried out under my supervision.
Signature of Supervisor
Name of Supervisor - Mr. Sheetal Ramchandra Gadale
v
ACKNOWLEDGEMENT
I take this opportunity to express my gratitude to my supervisor Mr. Sheetal Ramchandra

Gadale for his insightful advice, motivating suggestions, invaluable guidance, help and
support in successful completion of this project and also for her constant encouragement and
advice throughout our Bachelors programme.
The in-house facilities provided by the
company throughout the training programme are also equally acknowledgeable.
Sachin Takyar
151055
vi
ABSTRACT
IBM Maximo is the Enterprise Asset Management product that provides the process of
managing an organisation’s assets throughout their life cycle-from purchase to
decommissioning. The word ‘enterprise’ refers to several organisations, multiple
departments, and functions and in some cases, business units. ‘Assets’ is defined as any
equipment or facility that plays a key role in the core business of the enterprise.
‘Management’ refers to improving the utilisation and performance of an asset, and thereby
improvising Return on Investment (ROI).The asset life cycle typically contains the following
phases:
● Requisition – It can be referred to as a formal request for an asset by a company that

can be procured from a vendor or it can be inter-departmental transfer.
● Procurement – This phase includes the whole complete process of purchasing the
asset, it includes creating Purchase Requisitions, Request for Quotations, Invoices and
generating Purchase Orders, receiving assets at locations, etc.
● Commissioning – In this phase asset is allocated to its respective location, user or

user group. The cost of asset is now on the owner of the asset and asset availability is
the responsibility of the owner which includes proper maintenance of the asset from
time to time in order to ensure that the asset is up and running whenever needed.
● Retirement – It is last phase and is also called as ‘Decommissioning’ phase, this is

the phase where the asset is replaced or removed but in certain cases the residual cost
of the asset is calculated and maintained in order to benefit the company.
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CHAPTER 1
INTRODUCTION
IBM Maximo is the Enterprise Asset Management product that provides user with the
capability to manage the maintenance, repair and other operations of any asset and its types
throughout its life-cycle in order to prevent early shutdown of the asset and to help the
organisation to take up as much benefit from the asset as possible. Maximo has the following
modules:
● Asset Management – It helps an organisation to efficiently track the assets

throughout their lifecycle, this includes location of the asset, and safety related
information, meter and meter readings of the assets which are used in Predictive
and Preventive Maintenance of the asset.
● Work Management – It helps an organisation to manage both planned and
unplanned work activities such as Preventive Maintenance in case of planned
scenario or in an unplanned scenario Emergency Maintenance. It enables the
planner/scheduler to identify labour, material, services and tools required to
complete the work as well as check the availability of those items.
● Inventory/Material Management – It helps an organisation to ascertain the
details related to inventory and its usage, this includes available balances, any
issues and transfers, vendor details, economic order quantities.
● Purchase Management – It supports all the phases of the supply chain from
vendor and item management to generating records such as a Purchase Request,
Purchase Order, Invoice, etc.
● Contract Management – It helps in managing a number of contract types offered
by vendors to the organisation these contract types include Purchase, Lease,
Rental, Warranty, Labour Rate and User defined contracts.
● Service Management – It helps an organisation to define the service offerings,
establish SLA (Service Level Agreement) and more proactively monitor the
service level delivery.
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● Customer Management – It helps an organisation to effectively and efficiently
manage its customers by providing proper services as per SLA, providing proper
billing, etc.
Following is snippet depicting the services provided by IBM Maximo are as follows:
Following is the snippet of the Start Center of MAXIMO 7.6.0:
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CHAPTER 2
ASSET MANAGEMENT
Asset is anything that has a value to the company and its lifecycle is monitored and
maintained by the company in order to attain maximum benefit. An asset has the following
status when under an organisation:
● Not Ready – It is the default status for any asset, other names for this status are
Installed, Commissioned, etc.
● Operating – This status denotes that the asset is being used, other names for this
status are Active, Limited Use, etc.
● Decommissioned – This status denotes that the asset is now no longer used, other
names for this status are Broken, Inactive, Missing, Sealed, Out-of-Service, etc.
There are two types of assets:
● Rotating Assets – An assets is a rotating asset if it is interchangeable such as motors,

pumps, PC, etc.
● Non-rotating Assets – An asset is a non-rotating asset if is it consumed of the course

of time, in simpler words asset that is use and throw and these don’t move in or out of
the storeroom.
Every asset has two numbers associated with it:
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● Inventory Item Number – This number helps in tracking asset as a group that move
in or out of the inventory or other applications.
● Asset Number – This number is unique for each and every asset and it is used to find
out the location, individual instances, etc. for an asset.
An asset if of following types based upon its usage in area:
● Production
● Fleet
● Facilities
● IT
An asset has a user or a custodian, a user is the person that uses the asset while custodian is a
person responsible for taking care of the asset.
2.1 Creating New Assets
Asset can be created by three methods:
● Asset Application – It is used to create, edit and delete an asset. Search, view,
modify, add and delete records of asset. Manages Hierarchy, Subassemblies, Safety
Records, Meters and Specification of assets.
● Asset Template – It is used to create new, modify existing assets. Manages
Datasheets, Meters, Specifications and PM’s.
● Receiving Application – It is used to receive items as rotating or non-rotating assets.
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Steps to create an Asset using Asset Application:
1. In the start center, go to Assets module.

2. Go to Assets application.
3. Click on New Asset button.
4. In the Asset field enter a new name (number or alphanumeric word).
5. Select the site for the asset.
6. Select the type of asset.
7. Select the manufacturer for the asset.
8. Enter the needed information in the given fields as per the need in the given tabs.
9. Change the status of asset to Operating and the click on Save.
Following is the snippet of the New Asset created in MAXIMO 7.6.0:
Steps to create Asset using Asset Template:

2. Go to Asset Template application.
3. Click on New Asset Template Record button.
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4. In the Asset Template field enter a new name (number or alphanumeric word).
5. Select the type of asset.
6. Select the manufacturer for the asset.
7. Select the vendor for the asset.
8. Enter the needed information in the given fields as per the need in the given tabs.
9. Change the status of asset to Operating and the click on Save.
Following is the snippet of the New Asset Template created in MAXIMO 7.6.0:
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2.2 Asset Subassemblies
It is used to attach Item Assembly Structure (IAS) to both rotating and non-rotating items. An
IAS includes spare parts, subassemblies or both that are needed to build an item for location
requirement. IAS can only be applied to an asset or to an operating location if the parent item
is a rotating item. There are some rules to apply IAS and they are as follows:
● If parent is a rotating item then IAS can be applied to both rotating and non-rotating
items.
● If parent is a non-rotating item then it can add only non-rotating item to the IAS.
Following is the snippet of IAS example in MAXIMO 7.6.0:
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Steps to add a Rotating Item and Spare Parts to a rotating item:
1. In the start center, go to Inventory module.

2. Go to Item Master application.
3. In Description filed enter pump.
4. Select the pump.
5. Go to IAS tab.
6. In Children tab add new row and add items.
Following is the snippet of the IAS tab of Item Master Application in MAXIMO 7.6.0:
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2.3 Failure Codes
A failure code is an element of failure hierarchy, a failure code can have one or more child
failure code. Failure codes are specified on asset and location records. Failure codes are
linked in parent child relationship to form a failure hierarchy. A failure hierarchy is a set of
data on the problems, the causes and the remedies for the asset failures and for the operating
location failures. A failure hierarchy is identified by its failure class. Using failures hierarchy
can help construct an accurate history of problem that leads to asset and location failures.
Failure codes are at organisation level. Following three failure reports can be seen from Asset
application:
1. Details of Asset Failure

2. Summary of Asset Failure By Location
3. Drilldown of Asset Failure
Reports are used to analyse failure trends and take preventive measures to help reduce future
failures.
Following is the snippet of Failure Class hierarchy in MAXIMO 7.6.0:
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2.4 Meters
Meters in Maximo are same as normal meters i.e. they are used to measure any quantity.
Maximo 7.6.0 offers 3 types of meters to the user:
1. Continuous Meter- These are the cumulative meters that are used for measuring
consumption or accumulation.
2. Gauge Meter- These meters are used for performing condition monitoring on assets
or locations, they are used for measuring range of values.
3. Characteristic Meter- These are the observational meters that have a list of possible
values derived from the domains in Maximo.
Following is snippet that depicts what all these Meters measure in MAXIMO 7.6.0:
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Steps to add a new Meter:
1. In the start center, go to the Assets module.

2. Go to the Meters application.
3. Click on the New Meter button.
4. Enter the name in Meter field (oilpress).
5. Select the type of meter.
6. Enter the value in Unit of Measure field.
7. Save.
Following is the snippet of a new Meter added in MAXIMO 7.6.0:
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Steps to add a Meter to an Asset:

2. Go to Asset application.
3. Search and open any asset.
4. Open Meters tab for that asset.
5. Click on Add New Meters button.
6. Search for the required meter and add.
7. Save.
Following is the snippet of a Meter added to an asset in Maximo 7.6.0:
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CHAPTER 3
PREVENTIVE MANAGEMENT
Reliability Centred Maintenance (RCM) is an analytical process used to determine an

optimum maintenance strategy for physical assets. It is an advanced maintenance strategy for
increasing asset availability by minimizing downtime caused by failures, reducing an asset in
total cost of ownership and increasing overall equipment effectiveness. Following are terms
used in maintenance:
● Equipment- These are the physical tangible items.
● Assets- These ae the physical item equipment, component, machinery, facilities and
infrastructure.
● System- A series of equipment that function together as a single unit such as

production line, chilled water system etc.
● Function- These are the actions or requirements that a component/system must

accomplish.
RCM acknowledges 3 principal maintenance strategies plus mitigation of run to failure to

failure modes that are as follows:
1. Predictive Maintenance- These are the maintenance task performed to detect

impending failures by using both non-intrusive testing techniques such as visual
inspection and performance to assess equipment condition. On condition techniques
dictates that maintenance should only be performed when certain indicator shows signs
of decreased performance and face below the established acceptable limits.
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2. Preventive Maintenance- It is the process of performing maintenance tasks to
minimize the probability and severity of lost or degraded functions. These tasks are
performed on a recurring bass related to calendar time, equipment age or operating
time without regard to equipment condition.
3. Proactive Maintenance- Failure finding tasks are performed on a region basis to

detect hidden failures that have yet to fail or have failed without giving evidence of
pending failure.
4. Reactive Maintenance- In this run to failure is a deliberate decision to run the

equipment to failure and fix it when it fails.
Failure Mode and Effective Analysis (FMEA) is a methodology central to the RCM process.
It is structural format to ascertain a detail description of the asset function, the possible
failures of the function, causes, etc.
Following is the snippet showing Maintenance Strategies in MAXIMO 7.6.0:
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3.1 Preventive Maintenance (PM)
Preventive Maintenance is planned maintenance of facilities and equipment that is designed

to improve equipment life and avoid any unplanned maintenance activity. We can create a
PM for asset, location and route. PM’s are the templates for preventive maintenance work
orders that specify when, what and how often work must be performed. There are several
methods in which to automate the process related to the generation of PM work orders:
● Operator- In this there is the selection of upcoming or almost due PM’s. Setup and
enablement of Alert Notifications for upcoming PM’s in the Organisations
application.
● Crontask- In this system generates the work orders based on frequency data and
condition. Measure’s Passage of Time and Meter Usage on a PM record. Measure’s
Unacceptable Level and Condition on a Condition Monitoring record.
● Real Time- In this system generates work orders at that moment of time.
Master PM’s are PM’s that serve as a template for its associated PM’s i.e. whenever any
change is made in the Master PM, it is automatically transferred to its associated PM’s.
Master PM’s do not generate work orders.
Following is snippet showing Master PM and its associated PM’s in MAXIMO 7.6.0:
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3.2 Job Plan Sequencing
Every PM in Maximo has a job plan associated with it, with respect to the task for which that
PM is created. Job plan can be defined as the steps that are required to be carried out in
sequential/planned manner while performing a particular job. On the other hand, Job Plan
Sequencing allows more than one job plan to be used with an individual PM, Job Plan
Sequencing is used when we have different maintenance tasks with different intervals.
Maximo determines which job plan to use whenever a work order is generated from a PM.
There is one more term Nested Job Plan, this is used when tasks for each sequenced period
are so different that you create individual job plans for each sequenced period. Rules for
applying job plans according to situations:
● Use Individual Job Plan where tasks are dissimilar.

● Use Inclusive Job Plan where some prior tasks are included.
● Use Nested Job Plan when all prior tasks are included.
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Following is the snippet depicting where to use Individual, Inclusive, and Nested Job Plan in
MAXIMO 7.6.0:
Steps to create a PM with Sequenced Job Plan for monthly, semi-annually and annual work:
1. In the start center, go to Preventive Maintenance module,

2. Go to PM application.
3. Click on New PM button.
4. Enter name in PM filed.
5. Enter value in Location field.
6. Go to the Frequency tab.
7. In Time Based Frequency tab, enter 1 in Frequency field and months in Frequency
Units field and enter other details as per requirement.
8. Go to Seasonal Dates tab, uncheck the days on which you don’t work.
9. Go to Job Plan Sequence tab.
10. Click on New Row for Job Plan Sequence.
11. Select the Job Plan and enter 1 in Sequence field to run it monthly,
12. Again click on New Row, select the Job Plan and enter 6 in Sequence field to run it
semi-annually.
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13. Again click on New Row, select the Job Plan and enter 12 in Sequence field to run it
annually.
14. Change status to active.
15. Save.
Following is the snippet of Sequenced Job Plan in a PM in Maximo 7.6.0:
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3.3 PM Forecast
Forecast means predicting or estimating a future event or trend. PM forecasting enables the
maintenance organization to generate projected due dates for anticipated PM work without
having to generate work orders, this can be generated by PMForecast cron task or by using
Generate forecast.
Steps to add a Forecast to a PM:
1. In the start center, go to PM module.

3. Select any PM (For our instance we selected FCPM).
4. Go to Forecast tab.
5. Click on Generate forecast in more actions and enter details as per need.
6. Check the Reforecast Subsequent check box.
7. Save
Following is the snippet of Generate Forecast dialog box in MAXIMO 7.6.0:
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3.4 PM Hierarchies
PM Hierarchies generate an organised group of work orders for an asset or location hierarchy
and work is typically organised this way for inspections and large projects. A PM Hierarchy
is a group of PM’s with a parent-child relationships and you use a PM Hierarchy to schedule
the group of work orders.
Following is the snippet depicting PM Hierarchy Structure and Conditions in MAXIMO

7.6.0:
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Following is the snippet of PM Hierarchy Processing Rules in MAXIMO 7.6.0:
Steps to create a Top level/Parent PM:

4. Entre name in PM field (pmh-prnt).
5. Select asset in Asset field.
6. Enter PM in Work-Type field.
7. Check Required Asset Downtime check-box.
8. Select a value in GL Account field.
9. Go to Frequency tab.
10. Enter the details in fields as per need in Time Frequency sub-tab.
11. Save
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Following is snippet of the Parent PM created in MAXIMO 7.6.0:
Steps to create Child PM for the above Parent PM:

4. Entre name in PM field (pmh-ch-d).
5. Enter the same asset as entered in Parent PM above.
6. Select a value in Job Plan field.
7. Enter PM in Work-Type field.
8. Enter the GL Account as entered in Parent PM.
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9. Go to Frequency tab.
10. Enter the details as in Parent PM.
11. Go to PM Hierarchy tab.
12. In the Parent field enter Parent PM name (pmh-prnt).
13. Similarly create other child by using Duplicate PM option in more actions.
14. Save
15. Change the status of Parent PM to Active and select Roll New Status To All Child
PM’s check-box.
Following is the snippet of Child PM in MAXIMO 7.6.0:
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CHAPTER 4
INVENTORY MANAGEMENT
Inventory Management tracks materials needed for maintenance related work, it allows to
track items in Stock, Replenish, Balances, Procurement and Transactions. This all helps to
identify when item fails below user-defined reorder points, perform cycle counts and make
balance adjustment, create purchase requisitions and purchase orders to restock needed items.
Inventory Management helps balancing two opposing objectives:
● Maximize the availability of items for future work tasks and reduce excess inventory
balances with their relative carrying cost.
● To find a balance of inventory stock that lets the maintenance work be performed
with minimum delays due to unavailable materials and still keep unnecessary or
seldom used items of the shelf.
Following is the snippet depicting Inventory relationship with other modules in MAXIMO
7.6.0:
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Inventory application in Inventory module is used to manage and store information about all
aspects of inventory. It enables one to keep track of inventory items, it is also used to enter,
display and update information for a specific item at a specific storeroom location.
Organizations consume the items in inventory storerooms in different ways like Issues,
Transfers and Returns. Different costing methods available in the Inventory application are:
● Average Cost- It is average cost of inventory during a period, it is computed by

dividing the cost of goods in inventory by the number of goods in inventory.
● LIFO (Last In First Out)- This costing methods uses the receipt cost of the items
that were most recently purchased and are newest in the storeroom.
● FIFO (First In First Out)- This costing method uses the receipt cost of the oldest
items in the storeroom.
● Standard Cost- It is the estimated cost of the material, labor, overhead and other
costs for each unit of production or purchase in a given accounting period.
4.1 Inventory Locations
Inventory Locations are used to issue items and tools, transfer items and tools and stock
control. There are 4 types of inventory locations in MAXIMO 7.6.0:
● Storeroom- Each storeroom can be broken into bin system, a bin represents a specific
location within a storeroom and is broken into three parts: a row, rack and shelf such
as AA-22-BC. A storeroom is used a place to reorganize stock levels held within a
specific location.
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● Vendor- These locations are used when the rotable items are sent off site repair, this
again for total life tracking and accumulating repair cost.
● Labor- These locations are used to record an internal issue of specialized tools or
personal protective Equipment (PPE) rather than consumables from a storeroom.
● Courier- These locations are generally used for transiting items from one storeroom
to another, where it is then received in. This allows for total tracking of all the items
throughout its life.
● Holding- These locations are used to similar to a bond store where an item has been
received, but can’t go into its final location until it has been inspected and/or
serialized into an asset.
Following is the snippet depicting The Mathematics of Inventory in MAXIMO 7.6.0:
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Steps to create a New Storeroom:

2. Go to Storerooms application.
3. Click on New Storeroom button.
4. Enter name in the Location field (mystore).
5. Select a value in GL Account field.
6. Select a value in Shrinkage Account field.
7. Select a value in Cost Adjustment Account field.
8. Select a value in Invoice Variance Account field.
9. Select a value in Receipt Account field.
10. Select a value in Currency Account field.
11. Select a value in Tool Control Account field.
12. Select default storeroom check-box.
13. Save.
Following is snippet of the New Storeroom in MAXIMO 7.6.0:
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4.2 Stock Tools in Inventory
Tools are devices or can referred as to equipment’s that are used to carry out a certain tasks
or functions. Tools range from hammers to vehicles, they can be required to open, examine,
clear and test. In Maximo tools are non-consumables and can be assigned a qualification. All
tools are charges at hourly usage rate that is set at organizational level. There is a difference
between Tool and Stock Tool in Maximo and they are as follows:
● Tools are in Item Master application while Stock Tools are in Inventory application or
in Items in Storerooms.
● Tools are at set level can be used by one or more organization while Stock Tools are
at site level.
Following is the snippet depicting Tool statuses in MAXIMO 7.6.0:
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Steps to create a New Tool:

2. Go to Tools application.
3. Click on New Tool button.
4. Enter name in Tool field (fluke).
5. Check Rotating check-box.
6. Save.
7. In more actions, select Tools/Organization Details.
8. Enter a value in GL Account field.
9. Enter a value in Tool Rate field.
10. Click Ok and then click on Add Tools to Storeroom.
11. Select the storeroom.
12. In Default Bin field enter Tools.
13. Enter a value in Issue Unit field (each) and click Ok.
14. Change status to Active.
15. Now go to Storerooms application.
16. Go to Vendors tab, click on New Row.
17. Enter a name in Vendor field.
18. Enter a value in Order Unit field (box).
19. Save.
Following is the snippet of the New Tool in MAXIMO 7.6.0:
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Steps to Issue the tool to a Person or Work Order:

2. Go to Inventory Usage application.
3. Click on New Inventory Usage button.
4. Enter name in Usage field.
5. Enter a value in From Storeroom field (Garage).
6. Click on Select Items button.
7. Select the needed items (fluke).
8. Click on detail menu button.
9. Select a value in Rotating Asset field.
10. Select a value in Work Order field.
11. Enter a value in Issue To field (Schafer).
12. Change status to Complete.
Following is the snippet of New Inventory Usage in MAXIMO 7.6.0:
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4.3 Inventory Cycle Counts
Cycle Counts is a process of continually validating the accuracy of the inventory in the
system on a daily or weekly basis. There are some principles to perform a Cycle Count and
that are as follows:
1. List items to count.

a) No current balances needed.
b) Export to a mobile solution or use printed sheet.
2. Perform Cycle Count.
a) Record actual count.
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b) Update the physical count.
3. Review Discrepancies.
a) Recount where necessary.
b) Investigate further if needed.
4. Reconcile Balances.
a) Confirm the cycle count.
b) Maximo update current balance.
Cycle Counts in Maximo may use ABC concept, it is a method in which we categorize
inventory items into three groups: fast moving, average and low moving. This concept also
identifies the items that represent the greatest investment for the company in terms of
monetary value and turnover rate. Breakpoints percentage based on type are as follows:
● A type has a breakpoint of 30%.

● B type has breakpoint of 30%.
● C type has breakpoint of 40%.
A type has the highest valued items and lowest turnover while C type has the lowest valued
item and highest turnover.
Following is the snippet depicting ABC concept in MAXIMO7.6.0:
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Steps to perform Cycle Count on a rotating item:

2. Go to Inventory application.
3. Select any value in Item field (560-00).
4. In more actions, go to Inventory Adjustments.
5. Select Physical Count option.
6. Enter a value in New Count field.
7. In more actions, go to Inventory Adjustments.
8. Select Reconcile Balances option.
Following is the snippet of Cycle Count performed in MAXIMO 7.6.0
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4.4 Inventory Transactions
Inventory Transactions are the transactions that are related to the incoming or outgoing of the
items to and from inventory. There are three types of transactions in inventory and they are as
follows:
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● Receipts and Transfers- These transactions are about recording purchase receipts
and shipments receipts i.e. receiving an item into a storeroom or transferring from one
storeroom to another. It is instant for transfer type or intermediate for stage transfer.
● Issues and Returns- These transactions deal with items that have been issued from a
storeroom or returned to a storeroom.
● Adjustments- these transactions come from adding a new item into the storeroom or
entering a cycle count value i.e. physical count or have been adjusting the current
balance.
Following is the snippet depicting the Breakdown of Inventory Transactions in MAXIMO

7.6.0:
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There are four types of Adjustments and that are as follows:
1. INSERTITEM- It is when the item was first created.

2. PCOUNTADJ- It is when item was done and counted as a part of the stock.
3. CURBALADJ- It is when a manual adjustment of its balance in the store was
performed.
4. RECBALADJ- It is result of performing a reconciliation of the physical count
from the stock take.
Implications involved in Inventory Transactions are as follows:
1. A current balance adjustment will attract transaction that is expensive to company’s

bottom line.
2. An issue will decrease store’s value.
3. A return will increase store’s value.
4. A receipt will increase store’s value.
5. A transfer will decrease store’s value.
6. A physical count adjustment will do nothing in store’s value.
4.5 Reservations
Reservations are made in Maximo to ensure that inventory items and tools can be replenished
in the inventory stock on time. There are three types of reservation in Maximo:
● Hard Reservation- It is a request for materials that is defined by the need for an item
within a specific time frame, this type of reservation remains unless manually
changed by the requester. Backorder Reservations indicates that an inventory item
can have only hard reservation, in-order to use Backorder Reservation, organization
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must disallow negative availability. Backorder Reservation can be set manually or
automatically.
● Soft Reservation- It is a request for material that is not time sensitive and remains
until manually changed by the requester.
● Automatic Reservations- It is used for the system to decide whether it needs Soft or
Hard Reservation based on the date on which that material is needed.
Following is the snippet depicting types of Reservations and their information in MAXIMO
7.6.0:
Following is the snippet depicting Types of Automatic Reservations in MAXIMO 7.6.0:
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Steps to set Hard Reservation for an item:

2. Go to Inventory application.
3. Select any item in Item field (1002).
4. Check Requires Hard Reservation on Use check-box.
5. Go to Reorder Details tab.
6. Click on View Details icon.
7. Go to Work Order Tracking application.
8. Select work order in Work Order field (RESXP).
9. Go to Plans tab.
10. Click on View Details icon of (1002) item.
11. Select Hard Reservation in Reservation Type field.
12. Change status to Approved.
40
Following is the snippet of Item and corresponding Work Order set to Hard Reservation in
MAXIMO 7.6.0:
41
4.6 Internal Shipments
Internal Shipments in Maximo allows one to transfer inventory items or tools between
storerooms within the same site or across sites and organization and track their delivery
through use of shipment records. When the status of a usage record is changed to Shipped, a
Shipment is created along with financial transaction for the deduction from the supplying
room. There are three Shipment Receipt status and they are as follows:
● WINSP- Waiting for Inspection indicates that the item is in the process of being
received but is not entered in inventory.
● WASSET- Waiting for Serialization indicates that the item is rotating item and that
the review and acceptance of the asset number in the receipt is required.
● COMP- Complete indicates that the item has been received and if necessary
inspection and serialization of the item has occurred.
Following is snippet of Transfers via Shipments in MAXIMO 7.6.0:
42
Steps to create a Shipment:

2. Go to Inventory Usage application.
3. Click on New Usage button.
4. Enter a name in Usage field (1044).
5. Select a value in Usage Type field (Transfer).
6. Select a value in From Storeroom field (Central).
7. In the Usage Line tab, click on New Row button.
8. Select a value in Item field (61-2500).
9. Enter a value in Quantity field (20).
10. Select a value in To Site field (Fleet).
11. Select a value in To Storeroom field (Atlanta).
12. Change status to Shipped.
13. Create Shipment window opens.
14. Go to Shipment Receiving application in Inventory module.
15. Select the shipment (1012).
16. Click on Select Shipped Items button.
17. Select the line showing item (61-2500).
Following is the snippet depicting the Shipped Item in MAXIMO 7.6.0:
43
4.7 Inventory Reorder Theory
A store when replenishing its stock or to meet its forecast demand, places an order with an
external vendor or to an internal storeroom. The central storeroom and satellite storeroom
maintain their own reorder points. This creates a demand when their items balance falls
below their Reorder Point (ROP). Consignment items are considered in reorder process if the
reorder check-box is selected in inventory. The vendor is required for each consignment item
in each storeroom. The Maximo Reorder Point is the balance level that is set for an item
below which Reorder Process takes place.
Following is the snippet depicting the factors for Reorder Point (ROP) for an item in
MAXIMO 7.6.0:
44
FUTURE SCOPE
Maximo Asset Management has a wide scope in the industry as it provides very efficient
and effective solution to the client from ground level to the very top, it is a software that
will continue to provide new advancements to the user in different and easy ways,
moreover in latest seminar held to modernize user experience, the upcoming Maximo
updates include:
● Refreshed Look and Feel- A global approach will be used to refresh all
Maximo interfaces and work centers will be aligned to new updated style sheet.
● Supply Chain and Inventory- IBM is planning to introduce net new

capabilities to create and manage bins with storeroom and keep a record when
an item is not available.
● Asset Health- It will be improved in order to provide visibility to asset

conditions from lifecycle perspective and can offer visibility into the next
predicted failure.
● Machine Learning and Analytics- IBM plans to use machine learning and
analytics for operational data to build predictive maintenance models and to
manage reliability risks.
● Manage work effectively- IBM Maximo Scheduler and IBM Maximo

Scheduler Plus provide the ability to plan, schedule, dispatch and track work.
These products offer scenario-based work planning, graphical crew
management capabilities, optimized spatial scheduling, etc.
45
CONCLUSION
At the point when an organization centers around an appropriate assembling considering,

squander is expelled from the esteem chain and leaves solid assets as a flat out need for
business achievement. Maximo Asset Management gives a system to improving the
unwavering quality of assets while working in this kind of asset compelled condition.
Maximo Asset Management additionally gives lower cost of possession choices by
supporting the usage of a solitary stage over different asset classes. This gives management
better perceivability of asset execution and institutionalized work forms over the association.
The new updates made Maximo available on cloud and due to this it is accessible from
almost everywhere. The centralized functionality of Maximo Asset Management make sure
that the users have the control and visibility of asset processes and conditions to increase
productivity and decrease downtime. Maximo incorporates a full suite of tools, including
resource and stock administration, predictive and preventive maintenance, and work order
management on board. Online help assets and preparing pages enable clients to extend their
item learning at their own pace. Reporting, KPIs, and dashboards help managers work
together and see patterns.
46
REFERENCES
1. Zientara, Robert (18 April 2016). IBM Maximo Asset Management The Consultant's
Guide (1.8 ed.). ISBN 978-8394419226.
2. "The IBM Maximo roadmap: What it means for Enterprise Asset Management" (PDF).
2006. Archived (PDF) from the original on 1 April 2018. Retrieved 1 April 2018.
3. IBM, Maximo Preview Site 7.6.0, Maximo, Oct 2018. [Online]. Available: https://www-
01.ibm.com/support/docview.wss?uid=swg21697301
4. Sawyer, William J. (26 May 2010). "End of Support (EOS) Announcement for Maximo
6.0 and 6.1". IBM. Archived from the original on 1 April 2018. Retrieved 1 April 2018.
5. IBM, Maximo Simulations, Maximo. [Online]. Available: https://www.iot-

academy.info/index.php/en-us/ibm-watson-iot-badges/ibm-watson-iot-
badges#CourseBadges
47

Maximo Asset Management

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MAXIMO ASSET MANAGEMENT

Dissertation submitted in partial fulfillment of the

SACHIN TAKYAR - 151055

UNDER THE GUIDANCE OF

Department of Electronics and Communication Engineering

Chapter 2 Asset Management……….……………………………………………………….5

2.1 Creating New Assets

Chapter 3 Preventive Management……………...……………………………………………..15

3.1 Preventive Maintenance

3.2 Job Plan Sequencing

Chapter 4 Inventory Management……………………………………………………………...26

4.6 Internal Shipments

Department of Electronics and Communication, Jaypee University of Information

Jaypee University of Information Technology.

Department of Electronics and Communication Engineering

Jaypee University of Information Technology, Waknaghat, India

Date: 22 MAY, 2019.

Communication Engineering of Jaypee University of Information Technology, Solan has

been carried out under my supervision.

Name of Supervisor - Mr. Sheetal Ramchandra Gadale

I take this opportunity to express my gratitude to my supervisor Mr. Sheetal Ramchandra

● Requisition – It can be referred to as a formal request for an asset by a company that

● Commissioning – In this phase asset is allocated to its respective location, user or

● Retirement – It is last phase and is also called as ‘Decommissioning’ phase, this is

● Asset Management – It helps an organisation to efficiently track the assets

Following is the snippet of the Start Center of MAXIMO 7.6.0:

There are two types of assets:

● Rotating Assets – An assets is a rotating asset if it is interchangeable such as motors,

● Non-rotating Assets – An asset is a non-rotating asset if is it consumed of the course

Every asset has two numbers associated with it:

An asset if of following types based upon its usage in area:

2.1 Creating New Assets

Asset can be created by three methods:

1. In the start center, go to Assets module.

Following is the snippet of the New Asset created in MAXIMO 7.6.0:

Steps to create Asset using Asset Template:

1. In the start center, go to Assets module.

Following is the snippet of IAS example in MAXIMO 7.6.0:

1. In the start center, go to Inventory module.

1. Details of Asset Failure

Following is the snippet of Failure Class hierarchy in MAXIMO 7.6.0:

1. In the start center, go to the Assets module.

Following is the snippet of a new Meter added in MAXIMO 7.6.0:

1. In the start center, go to Assets module.

Following is the snippet of a Meter added to an asset in Maximo 7.6.0:

Reliability Centred Maintenance (RCM) is an analytical process used to determine an

● Equipment- These are the physical tangible items.

● System- A series of equipment that function together as a single unit such as

● Function- These are the actions or requirements that a component/system must

RCM acknowledges 3 principal maintenance strategies plus mitigation of run to failure to

1. Predictive Maintenance- These are the maintenance task performed to detect

3. Proactive Maintenance- Failure finding tasks are performed on a region basis to

4. Reactive Maintenance- In this run to failure is a deliberate decision to run the

Following is the snippet showing Maintenance Strategies in MAXIMO 7.6.0:

Preventive Maintenance is planned maintenance of facilities and equipment that is designed

● Use Individual Job Plan where tasks are dissimilar.

1. In the start center, go to Preventive Maintenance module,

Following is the snippet of Sequenced Job Plan in a PM in Maximo 7.6.0:

1. In the start center, go to PM module.

Following is the snippet of Generate Forecast dialog box in MAXIMO 7.6.0: