Enterprise Asset Management Lifecycle: The Digital Reality

Partnering Together to Help Customers Realise Operational Success and Value

Raj Singh
Director - eSC CoE EMEA
EAM & Operational Excellence
  Central hub for linking equipment in a
AIN collaboration ecosystem
Asset
Manufacturer 3D VE Service Provider

 Resource Allocation / Scheduling

 WO Scheduling
 Preventive Planning
 Maintenance Notification MRS/ClickSoftware
 Maintenance Order Creation
PdMS 3D VE  Measuring Point linked with MII
ERP
LAM

Assets Maintained
 Predictive Maintenance  Relevant Risks
in PM
 Asset Health Monitoring EHS  Safety Measures
 Vibration Analysis  Work Clearance
 Virtualization WCM
 Real time Asset Performance KPIs
MII 3D VE
 Condition-Based Maintenance Work Manager
 Automatic Actions upon events 3D VE
 Virtualization
 Measuring Point linked from PM
 Energy Monitoring

 Device Integration IoT Client PCo  Machine / Asset Integration  Maintenance Order Execution
 Visual work instructions
Assets in the Field (External Scenarios) Assets in Shop Floor / Operations (Industrial Scenarios)

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EAM Reality… Heaven or Hell?
What are we seeing in the EAM community
Excessive Paperwork…
• Work orders can be 100 pages or more!

• Forms are completed manually

• The keyed in by the technician at a PC

• Doubles the administration
• Reduces productivity

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Excessive Paperwork…
• Paper based manuals, diagrams and parts listings

• Parts consumption is all paper based

• Part numbers look the same

• Components often look the same could lead to

significant negative consequences

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Paper Safety Systems…

• Safety checklist on paper

• Doesn’t enforce the process

• Analysis in hindsight

• No real time situational context

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Manual Time Sheets…
• Time sheets filled in at the end of the
day…. or even at the end of the week!

• Time is rounded up to the nearest hour

or half hour

• No accuracy = no optimisation

• Planners and supervisors can’t track

progress of in progress maintenance
and service requests

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Sophisticated Planning Systems…

• Planning process are often manual

• Spreadsheets

• Spreadsheet + magnifying glasses

• Paper based planning

• …Even maintenance files in crates

being moved as the status changes!

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 Hand Written Labels – No Barcodes for Tracking

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Spare Parts and Inventory…

 Maintenance engineers lose time walking to the

stores to pick up parts
 Lose more time returning unused parts
 Stop work to go to the stores to pick up unplanned
parts
 Inside the stores:
 Spare parts are all barcoded
 No barcode scanning implemented
 Poor stock accuracy
 Operational as well as P&L impact

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SAP End to End Digital Reality
What can we do to improve things?
Broad Range of Mobility Use Case – Each Delivers Value
 Work order management
• Buildings and Grounds
maintenance
 Inventory management
• Calibrations
• Asset auditing
 Operator Rounds
• Create work requests and
notifications
 Inspections • Time and Attendance
• Viewing of advanced
 Equipment maintenance content
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• Asset condition monitoring
• Outage management and
repair
• Vehicle maintenance
• Meter management
• Equipment installation
• Construction
• Turnaround & Shutdown
Management
Public 13
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Mobile Simplifies Work Execution

 Eliminates paper!
 Ensures data accuracy and quality

 Increases workforce utilization

 Improves asset utilization
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 Transfield Services – Benefits and ROI

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Empowering Maintenance Technicians
To Inspect, Maintain and Repair Assets

SAP Work Manager SAP Inventory Manager SAP Rounds Manager

Asset Management Material Management Condition Monitoring

 Complete work orders and capture  Speed receipt / back-order  Take measurements and readings
all relevant data reporting to-and-from
 Historic standards and safe ranges
 Access to asset location, repair shipping/receiving
history, work order details, materials  Generate notifications
 Perform physical and cycle
needed on-the-spot
counts quickly
 Create notifications or work orders  Trend readings, points and
 Check availability of materials
on the spot sequences
while on-the-job
to avoid emergencies and outages
 Component Support  Accept & distribute incoming
 Guided Workflow materials by PO

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MRO Sourcing and Supply Chain Collaboration
Removing complex processes to increase visibility and improve plant productivity
MRO supply is a complex process which inhibits visibility into the
supply chain and reduces plant overhaul productivity
MRO Spend – Feeling the Pain
• Items are ordered in bulk and stored until they are needed by end users,
to avoid out of stock situations, leading to increased inventory costs
(overstocking) and high write-off rates
• 1,000s of SKUs and 100s of suppliers makes it hard to have bill of
materials-based inventory visibility globally (including alternatives)
• Lowers productivity of skilled plant personnel who spend time looking for
critical/ spare (50% of items unavailable when needed causing
equipment downtime/ loss of production capacity)
• High effort in plant buying with long PO processing cycles, high errors
and a high rate of delivery returns
• Current tools typically offer only basic automation capabilities and limited
visibility into critical supply transactions
• Cost and service level management is a challenge across large volumes
of supplier transactions
MRO expenses represent up to 15% of the cost of goods, but up to 60% of total requisitions, and
procure to pay costs represent half the total cost of MRO supplies
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What if you could…

...on a single ...across all

network... MRO processes
...in real-time... and spend … reduce MRO
categories ... supply chain risk
and contract
leakage…
...collaborate …while
with all your increasing
suppliers... visibility into
your supply
chain?

Create a real win-win-win for you and your suppliers ?

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Digital Transformation
MRO Sourcing and Supply Chain Collaboration
Expectations ↑ Responsive
Global Extended Supply Chain
 Digital Experience
 Faster Innovation Complex Efficient Inventory Operating
Expense
 Perfect Order Supply Chain
 Full Transparency Visibility

Ariba Business Network

$1 Trillion Spend Benefits for customers and suppliers
2 Million Trading Partners
Customer

Challenges Value

Plant Maintenance
$
1st Tier
Systems Collaborative Sourcing Suppliers • Lack of visibility, accuracy • Higher Service Levels
• Too much expediting • Expedites  by 40%
RFx, BOM’s, Compliance, Contracts, Pricing • Slow moving MRO stock • Increased inventory
• Paper processing of orders turns
N-Tier
• Increased automation
Suppliers

Collaborative Supply Chain Distribution

Partners
Forecast, Inventory, Supply Chain Visibility • Inventory , Lead time  • Lead time  by 10%
• Stock outs and Lost Sales • Inventory  by 30%
PO’s, Changes, Confirmations, ASN, Returns
3PL’s

• 25% plant maintenance planning improvement

• MRO Price Reduction 3-5%
• Compliance 60-75%
• Saves $1-$4 per document
Conclusion & Next Steps
Make a measurable difference to your EAM practices
Next Steps…
• Think bigger picture
- Business as usual?
- If we keep doing things in the same way we will get the same results

• Embrace the new digital reality

- Enterprise asset management is getting more sophisticated
- IOT, AIN, Connected Assets, Predictive Maintenance, Planning, Mobile

• Take a Step in the Journey

- New requirements, better ways of doing things
- Visit your plant and team build the case
- Work shop and move to POV/Jump Start and deployment

• It is a journey… make sure you have a (road)map

• Other companies are already doing it and gains are huge!

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Thank you - Let’s Take the Next Steps Together!

Raj Singh Frank Omare

Director - eSC CoE EMEA Director, Value Engineering,
EAM & Operational Excellence Procurement & Business Network

raj.singh01@sap.com francis.omare@sap.com
+971 56 141 9764 M: +44(0) 7583 770 506