IBM Maximo Asset Management Software helps Guangzhou Metro lead China’s transformation to a mass transit society

Guangzhou Metro leadsChina’s transformationto a mass transit societyIn the midst of an economic transformation that is unprecedented inboth scope and complexity, China has taken center stage in the worldOvervieweconomy. China became the world’s third-largest economy (behind theThe NeedUnited States and Japan) on the strength of its rapid, export-drivenGuangzhou Metro needed to transformgrowth. Of the many byproducts of China’s rising economic tide, per-the way it managed its swelling base ofhaps the most evident is the growth of its cities. Drawn by the promiseassets to extend their life and maximizeof prosperity, China’s citizens have flocked to the fast-growing indus-rider safety and convenience.trial cities that dot the country’s coastal region. In addition to overallThe Solutionpopulation growth, the continued prosperity of these cities has led toGuangzhou Metro worked with IBM tothe emergence and growth of a thriving middle class—a key ingredientdeploy an integrated asset managementfor China’s long-term prosperity.solution flexible enough to track assetsacross the lifecycle.While these factors indicate a maturation of China’s economy, theyWhat Makes it Smarteralso point to a new set of challenges to the country’s ongoing develop-Guangzhou Metro has the means to conduct predictive maintenance of itsment, with traffic congestion at the top of the list. The question isn’tfast-growing assets—before breakdownswhether China’s urban citizens will demand more mobility, but howoccur—ensuring a smoother, safer andthey’ll meet that need. The fact that automobile sales have grownmore reliable experience for its two mil-lion riders.nine-fold since 2000 suggests China is at a turning point, with more ofits increasingly affluent, urban citizens poised to choose the conven-The Resultience of private transportation. Recognizing that exploding automobile“Our goal is to turn the public trans-usage—and the resulting increase in emissions and traffic congestion—portation system into an environmentallyfriendly, intelligent and digitalized trans-pose a direct threat to economic growth and quality of life, theportation system. With IBM’s technologyChinese government is funding massive investments in public transportand expertise, we’ve put ourselves oninfrastructure to provide a convenient, safe and efficient travel alterna-the pathway to realizing that vision.”tive. Guangzhou, China’s third largest metropolitan area and the – Ding Jianlong, general manager,capital of Guangdong Province, is a powerful case in point.Guangzhou MetroGaining control over fast-growing assetsWith funding support from the municipal government, GuangzhouMetro, the city’s rapid transit system, is undertaking a huge infrastruc-ture build-out designed to double its capacity to four million passen-gers per day, before the opening of the Asian Games in 2010. Thesheer pace of its expansion—combined with the complexity and diver-sity of its business structure—was making it increasingly difficult forGuangzhou Metro to manage, monitor and maintain the swelling baseof assets (rolling stock, track, tunnels and stations) it was putting inplace.To achieve the safety, reliability and efficiency it demanded,Guangzhou Metro engaged IBM to redesign its asset management Business Benefitssystems and processes so that assets could be tracked at every stage of● Increased safety and reliability of thetheir lifecycle—from initial construction to ongoing operations—andGuangzhou Metro network throughplant and equipment maintenance performed on a predictive basis. Topredictive maintenance capabilitiesfurther strengthen Guangzhou Metro’s budgeting and decision-making● Extended life of fixed asset investmentscapability, IBM also integrated the company’s asset management and● Improved process efficiency by virtueERP systems. In addition to enabling more efficient processes, thisof asset management and ERPintegration provides Guangzhou Metro’s managers with both a finan-process integrationcial and physical perspective on asset management decisions that has● Improved cost efficiency through thecoordinated management of partsthus far been elusive. inventories● Improved asset management decision-making through improved informationOne measure of the complexity of Guangzhou Metro’s business is thetransparencyrange of ancillary businesses it operates, including advertising, propertydevelopment, telecommunications and consulting services. A moretelling measure, however, takes into account the asset managementchallenges related to the rapid growth of its core transportation equip-ment and facilities. In contrast to more mature rail networks, those inhigh-growth mode—such as Guangzhou Metro—commit a high pro-portion of their resources to construction, relative to the operationsand maintenance sides of their business. As new track, tunnels and stations are brought online, those assets are, in essence, handed offfrom Guangzhou Metro’s construction business unit to its operationsand maintenance units, respectively. Because each of these units hadtheir own systems, processes and even parts taxonomies, maintainingseamless management continuity across these handoffs was not a prac-tical possibility.Breaking down process wallsIBM’s first step in addressing this was to create a standardized taxon-omy for all of Guangzhou Metro’s assets across all business units andprocesses. Using IBM Maximo® Asset Management and leveraging theSmarter Rail:Managing a subway network’s assets intelligentlyInstrumentedEvery asset in Guangzhou Metro’s network is tracked overits entire lifespan, including servicing guidelines and serv-ice history.InterconnectedIntegration of asset management with key enterprise func-tions improves decision-making and process optimization.IntelligentPerforming maintenance on a predictive basis extends thelife of assets, improves uptime and supports a rapidly grow-ing passenger base.new asset taxonomy, IBM Global Business Services designed andimplemented an integrated asset management solution that can beSolution Componentsextended to all of Guangzhou Metro’s business units, and has the capa-Frameworkbility to manage assets throughout their lifecycle. A key attribute of the● IBM Component Business Modelsolution is the integration (via IBM Maximo Enterprise Adapter) ofasset management functions with key enterprise applications like pro-Softwarecurement, financial management, inventory management and materials● IBM Maximo® Asset Managementmanagement. Prior to this, the separation of these functions created an● IBM Maximo Enterprise Adapterinherent inefficiency by erecting a virtual “wall” between processesServicesthat would—in an optimal setting—be linked in a coherent workflow.● IBM Global Business ServicesOn one side were the processes and systems that tracked and fore-casted plant and equipment maintenance requirements, on the otherwas Guangzhou Metro’s ERP system.The effect of this partition was twofold. First, it deprived GuangzhouMetro of the comprehensive and consistent picture of its asset manage-ment requirements—incorporating both physical and financial perspectives—it needs to efficiently manage the funding and executionof the project. Second, it posed a major barrier to achieving theprocess efficiency Guangzhou Metro needs to keep its trains runningand get the most return from its investments. Using the new solutionas a foundation, IBM Global Business Services also employed the“The continued IBM Component Business Model framework to assist Guangzhougrowth and success ofMetro in the optimization of its asset management processes. As a result of its process and data standardization efforts, GuangzhouGuangzhou depends onMetro was also able to consolidate its procurement activities into a sin-its ability to controlgle organization, running on a single system and serving the entiretraffic congestion enterprise. In addition to lower administrative costs, the company alsoexpects major improvements in the management of its parts invento-in the coming years.ries and better pricing via volume-based discounts.The safety and reliability ofAs the Guangzhou Metro network continues to grow, its asset mainte-nance obligations—along with safety risks—grow along with it. WithGuangzhou Metro’sthis new solution in place, Guangzhou Metro is far better able to meetnetwork is essential tothese obligations, keeping its passengers safer and its network morereliable. A big part of this capability is a move from reactive to predic-achieving this.”tive maintenance. By tracking and monitoring assets at every stage oftheir lifecycle, Guangzhou Metro expects to maximize the lifespan – Ding Jianlongof its assets, thus ensuring that the municipal government’s fundingproduces the maximum benefit in promoting the adoption of publictransportation and the minimization of traffic congestion.Going forward, the increased transparency afforded by the new solu-tion provides Guangzhou Metro with the ability to make better decisions regarding future asset investments as the company drives todouble the length of the network to 235.7 kilometers by next year.With each kilometer of network costing more than $60 million tobuild, the potential benefits from making the right investment deci-sions are enormous.Safety in the spotlightIn the meantime, Guangzhou Metro general manager Ding Jianlonghas his eye on a closer milestone—the 16th Asian Games to be held inGuangzhou in 2010. Ding believes that the Games will be a showcasefor the world-class safety, convenience and efficiency GuangzhouMetro aspires to achieve. “Our goal is to turn the public transportationsystem into an environmentally friendly, intelligent and digitalizedtransportation system,” says Ding. “With IBM’s technology andexpertise, we’ve put ourselves on the pathway to realizing that vision.”For more informationTo learn more about how IBM can help you transform your business,please contact your IBM sales representative or IBM Business Partner.Visit us at:ibm.com/governmentibm.com/travel© Copyright IBM Corporation 2009IBM Corporation1 New Orchard RoadArmonk, NY 10504U.S.A.Produced in the United States of AmericaDecember 2009All Rights ReservedIBM, the IBM logo, ibm.com, Smarter Planet, the planet icon and Maximo aretrademarks of International Business Machines Corporation, registered in manyjurisdictions worldwide. Other product and service names might be trademarks ofIBM or other companies. A current list of IBM trademarks is available on the Webat ibm.com/legal/copytrade.shtmlThis case study illustrates how one IBM customer uses IBM products. There is noguarantee of comparable results.References in this publication to IBM products or services do not imply thatIBM intends to make them available in all countries in which IBM operates.Please RecycleODC03149-USEN-00Document Outline

• Untitled
  • Guangzhou Metro leadsChinas transformat
  • Overview
  • Gaining control over fast-growing assets
  • Business Bene“ts
  • Breaking down process walls
  • Smarter Rail:
  • Solution Components
  • Safety in the spotlight
  • For more information