Whats Your SAP EAM Roadmap?

Benjamin J Mansi, PE B j i J. M i Vesta Partners, LLC April 22 A il 22, 2010

Session Overview

Takeaways

1. We can use SAP EAM as our tool implement basic to g g advanced maintenance management strategies and solutions 2. Hmmm I t 2 H Interesting i l ti implementation approaches t ti h 3. We can use SAP EAM better than we have in the past there is room to improve and optimize 4. We are pretty good at how we use SAP EAM but recognize there are more opportunities

Agenda Roadmap to SAP EAM and Maintenance Excellence

The SAP EAM Decision
Functional Considerations Quick Demo Hidden Features - Exposed

The Implementation Approach

Big bang Phased approach Pilot and roll-out A l t d model Accelerated d l

SAP EAM Optimization EAM Continuous Improvement

Why SAP EAM? The Decision

Master Data Work M W k Management Process P Identify, Evaluate, Approve, Plan, Schedule, Execute, Complete, Analyze/Report Preventive / Predictive / Condition Maintenance Hidden features

Master Data The Basics

SAP

Functional Locations Multi level hierarchy Equipment Sub-Equipment Multi level Bills of material Multi level Material Serialization Components Work centers

Structured Master Data in SAP

Functional Locations = Locations

What are they?

Provide a place for things to operate Multi level hierarchy of p plant locations
By physical location Spatial Production line based, process based Linear Accounting / Cost Center g based Area based Single asset based g Simple or complex

Industry Applicability
ALL

Industry Limitations
NONE

Functional Location = Location

Why Flocs?
Organization of Data Roll up of costs p Tracking LOCATION and USAGE history in addition to equipment history i hi Free data in work management g One time set up and simple mass change if needed Total security as needed

Equipment = Equipment/Asset

What is an Equipment?
Physical assets Production equipment Medical equipment IT Equipment Buildings and grounds g g Rotables Utilities and infrastructure Fleet, Transportation Etc.

Industry Applicability
ALL

Industry Limitations
NONE

Equipment = Equipment

Wh create? t ? Why
Core / fundamental reason why many companies are in business ! Document physical asset details and specifications C ll t and track lifecycle cost history Collect d t k lif l t hi t Collect and track lifecycle technical history Track capital work (modifications and improvements) k l k ( df d ) Track location and use Track uptime (or downtime) Coordinate preventive, predictive & condition maint. Disposal

Bills of Material = Spare Parts List

What is a BOM?
In maintenance, list of common repair parts

Industry Applicability
ALL

Why?
Facilitate planning of repairs

Industry Limitations
NONE

Work Centers = Crafts, Equipment

What is a WC?
Identifies the type of skills and list of available resources to do work

Industry Applicability
ALL

Industry Limitations d
NONE

Why
Support capacity planning, scheduling and dispatching of resources

MRO Materials and Components; Serialization

Components
Purchased Stored in i St d i inventory t MRP relevant Costed Quality inspected Flexible UO e b e UOM Linked to Documents Used on Bills of Materials for planning

Serialized Components
Purchased Stored in i St d i inventory t MRP relevant Costed Tracked individually Warranty tracking option a a y a g op o Lifecycle history Commonly Repairable Might not be equipment Be careful gauge level of effort!!

Work Management Process

1) Work Identification 2) Evaluation 3) Approval 4) Planning 5) Scheduling 6) Dispatching Di t hi 7) Completion 8) Rework k 9) Work Analysis and 10) KPI Reporting
SAP

One Page Planned Work Order

Proactive Maintenance

Preventive Maintenance
Maintenance plan

Single cycle plan

Strategy plan

Multiple counter plan

Time based Time-based

Performance based Performance-based

Just about all scenarios Some exceptions like aging equipment

Hidden Features

Integration Intuitive nature Scalability Traceability Audit trail Ease of use Visibility Security Open Architecture Standard business processes

Integration Pre-wired and real time

Integration between modules is pre-wired, seamless and real-time.

CO MM
- Material master - Inventory management - Purchasing - Contractor - Cost center controlling Order -Od controlling

PS
- Project structure and controlling - Budgets

AM
- Asset master - Depreciation - Capitalization

PM
- Technical objects - Resource - Planning + processing of tasks - History + Analysis

PP
- Availability check for production resources

QM
- Test equipment - Calibration tasks - Calibration results

MM-BD HR
- Qualifications - Manpower planning - Documents - Archiving

Integration with Material Management

Work Management and Material Integration: BOM Selection Material Availability

Integration with Internal Cost Controlling

Integration with Project System

Simple assignment on the work order provides full logistic integration with a simple or complex project.

Project Report

Integration with Asset Management

Integration between maintenance equipment and i t d financial assets a simple synchronized master record data point.

Integration with Production Planning

In SAP show equipment master and PP confirmation

Integration with Quality Management - Calibrations

Intuition Built in to SAP Environment Menu (or double click) ( )

In SAP show IH01

Traceability and Audit Trail Status Changes

Traceability and Audit Trail - History

Traceability and Audit Trail Action Log

Ease of Use The User Interface

Many options to simplify the user interface

Standard configuration Custom transaction Adobe Forms P Portal screens l SAP I&I (Integration and Intelligence) GUI T screens S GUIxT Synactive D i ti Designer Tool T l 3rd party solutions NRX-VIP (Visual Information for Plants)

Best B t practice Si lif high use screens ti Simplify hi h

Work Identification W k Completion Work C l ti

One Screen Order (Plan and Schedule)

One Screen for All Master Technical Objects

Visibility and Security

d l Reporting and KPIs across plants
Business objects BOBJ Business Intelligence

All master data managed consistently in one data base across plants Change in one plant while view of other plants Flexible and robust authorization and security

In SAP show BW report example

Implementation Roadmap

Making the decision then what Roll out Roll-out options

Big bang Ph d approach Phased h Pilot and roll-out Accelerated model

Big Bang EAM

Definition Multi-site/plant go live at all sites at once

Considerations
Data sources - >1 legacy g y Data Conversion Training Security Support Team bandwidth

Phased Approach Groups of Plants/Sites

Considerations
Si il or different plants Similar diff t l t
Size Organization Change management Training resources

Legacy systems
Common across or disparate Support

Pilot site
Choosing location
Representative plant Plant size Legacy conside ations Legac considerations Mature in processes or in most need? How many relevant sites?

Ability t t d di Abilit to standardize Controlled roll-out with overlapping teams!! Advantages

Less time to implement Leverage project team for roll outs roll-outs Test the design Reduced risk Better end user support and coverage Retire legacy sooner

Disadvantages
Longer time to go-live Larger implementation team How many relevant sites?

More risk thinner resource coverage Legacy costs

Accelerated Implementation

Generally speaking [3 - 6 months] Considerations

Single plant Pilot for other locations Business processes in place little change mgt Single legacy with full data Standard use of SAP Pre configuration Pre-configuration of best practices Custom development

Project Delivery Approach Thought

Project success is rarely a g , result of one great idea, but many good ideas. TEAMWORK!!!!!!!

Session Summary

Optimized? Life Cycle decisions

Does Finance know that we deactivated the equipment? q p

Decommission and Disposal

Specify and Design

What was it designed to do do?

Continuous Improvement

Modify and Improve

Operate and Maintain Procure and Build

Details on start up issues

What are the operating conditions?

SAP EAM Health and Usage Check

I your current EAM solution t l ti Is providing the expected performance? Was your system configured with best practices in mind? Consistent is data entry: For Equipment, Materials Co p ete a d deta ed preventive a te a ce o Complete and detailed p e e t e maintenance work instructions Overhauls - pre-planned as task lists Complete and updated BOMs Check parts issued to orders and check to see if missing on reference object BOM Performance based PM s instead of Time Based PMs Condition based instead of performance and/or time based Master data warranty tracking Equipment level vs. y g q p component level

SAP EAM Health and Usage Check

I your current EAM solution providing th expected t l ti idi the t d Is performance? Tracking to >75% proactive <25% reactive maintenance Above >>>>>
enables longer term planning/scheduling g p g/ g allows a leaner workforce translate into higher reliability and less downtime Maximize M i i OEE?

Completion of PMs on time Creation and sharing of KPI s across all plants KPIs

PM Optimization

Life cycle information Cost and technical Able to measure and maintain reliability/equipment health Schedule and capacity Assignments to resources Material requirements planning Reporting C Corporate level KPIs l l Maintenance Dept level KPIs Optimization

Optimized? People - Schedule and capacity

Focus on the M Management Good schedules are very important Job J b assignments, skills planning i t kill l i Are you planners really properly trained in using SAP? Did you set up good scheduling in SAP?
Proper configuration? Time to revisit? MRS ? Multi-resource scheduling Interface?

Optimized? Inventory - Get it right with

Organized MRO storeroom All parts bar-coded Consider visual BOMs or catalogs Revisit MRP and your planning process Refurbishment of critical and repairable spares

Optimized? Have you created catalog profiles?

Functional Location

Catalog Profile Each functional location/equipment can have a specific list of Cat Codes The Catalog Profile displays the Codes for that class of equipment

3000

Optimized? Symptom Coding

Symptom code Symptom code Usually entered by Production Global list of choices

Symptom

Optimized? Failure coding

1. 2.

Object Part 1. Rotary valve? ota y a e 2. Motor? Object Part 3. Breaker?

3. 3

Object Part

Optimized? Failure coding

Damage and Cause codes

Damage

EAM is more than just PM

Improve what you have done
BW KPI Reporting

Basic Basic Maintenance CMMS

MRO MM and Basic Procurement Procurement and Inventory PMAsset Module Maintenance

HR Human Resources

Full Enterprise Asset Management

CO reporting Company Core Financials

PS Project Management

MRP Materials Requirements Planning

QM Inspection(s) and Condition Information

The Asset Management Pyramid

Benefits from Maintenance Management e e ts o a te a ce a age e t Benefits from Management of Information Benefits from Management of Knowledge and Innovation

Return on Asset Optimization Asset Life Cycle Optimization Technical Automation Advanced Maintenance Planning Preventive Maintenance Reactive Maintenance

Financial Optimization Reliability Project Analysis and Management Optimization SCADA Integration MRP Condition Monitoring RFID, Mobile Skills

Integrated Procurement

Capacity Planning

Plant Maintenance Maintenance Plans, Task Lists

Session Summary

TECHNOLOGY - Continuous Improvement

dd l d l Additional SAP Modules supporting EAM Mobile
Remote work execution Operator rounds

Bar Coding Portals Counter based preventive maintenance MII and MES shop floor integration driving condition based Refurbishment and rotable spare tracking Management of External Contractors Reliability and Failure analysis xAPPs Workflow BAPIs (Get list) ( )

Additional SAP Modules for EAM Continuous Improvement

WCM - Work clearance management
Lock out Tag out

EHS Environmental Health and Safety

MSDS

DMS Document Management System

Work instructions, Drawings, P&IDs

Warranty Claims Management

Details of warranty

SRM Supplier Relationship Management

Optimize and simplify MRO part purchases

BobJ Business Objects

Special reporting

Rotables Management
Cockpit to manager repairable spares

Enterprise Asset Management . . . A complex business process

Asset Maintenance MRO Procurement & Inventory

SAP Enterprise Systems

Human Resources Inspection & Calibration

Asset Health Monitoring

RFID and Mobile Devices

SAP NetWeaver Application and Integration Platform Pl tf

3rd Party Systems

Project Management

Materials Requirements Planning

Legacy Systems

Core Financials

Financial Optimization & Reliability Reporting

Technology - Have you thought about mobile?

Link maintenance activities with asset performance and process control information Mobile Access to SAP is becoming much more viable today y Use technology to help improve wrench time of the work force Operator Rounds - Early failure identification

Bar-coding Orders and Operations

Reduces typing errors Self directed crew enablement Expedites E pedites time confirmations confi mations

Bar-coding Materials

Reduces typing errors Expedites issue/return process Accurate inventory

New Portal content - Usability

Direct Access Confirmation

Sample screens
Create your own work list selections Personalize your work list

Print shop floor papers, enter t confirmations, change and display work list items

Process

Which is your organization? Has the company really settled into the use of SAP? Often a need for some follow up training

Or
Credit: Rusty Jarrett/Getty Images

Business Information - BI
Do you have well developed and agreed on KPIs that can be traced back to the corporate KPIs? Do you have agreed coding for FMEA type information and are your people trained in how to use these codes? Are you really getting the reports you need?

Assets - Moving more to reliability

The basic PM functions or simple preventive maintenance will often not stop the failures

00 00 00 00 00 00 00 00 0

Work Order Distribution for a Typical Midsize industrial Complex

Average Maintenance Cost = $3,963

Average PM Cost = $432

Failures

Preventive

Mis

RCMO/SAP Process Flow

SAP EAM
Equipment Master Data Maintenance Planning Maintenance Execution & Documentation

BW
Maintenance Analysis

RCMO

FMEA Strategy Definition

Optimize Strategies St t gi

System Definition

Risk Evaluation

Strategy Evaluation
Establish Evaluation Criteria

RCM

Condition Monitoring
(Future Integration)

Operator O t Rounds Condition Monitoring

Operational Performance Evaluation

Current xAPPS applicable to EAM

RCMO RCMO is a Powered by SAP NetWeaver solution. Through tight integration with SAP PM, RCMO provides the framework for defining maintenance strategies based upon RCMO and Failure Modes Effects and Criticality Analysis (FMECA) principles. VIP Role-based Portal views that are easily configured to adapt to y g p changing work processes. A unified workspace enables speed-ofexecution and quality decision-making. MII Manufacturing Integration and Intelligence (SAP MII) is a composite application that helps organizations to become more adaptive by connecting the mySAP EAM solution to the plant floor in realtime and delivering actionable intelligence to production personnel

Session Summary

Takeaways

1. We can use SAP EAM as our tool implement basic to g g advanced maintenance management strategies and solutions 2. Hmmm I t 2 H Interesting i l ti implementation approaches t ti h 3. We can use SAP EAM better than we have in the past there is room to improve and optimize 4. We are pretty good at how we use SAP EAM but recognize there are more opportunities

Thanks for Attending!

Questions?

Ben Mansi Vesta Partners 610-420-1891 bmansi@vestapartners.com