Sage X3

Enterprise Asset Management

Background
In today’s world, in the face of ever changing business conditions, companies are under increasing pressure to re-
duce costs, meet tougher performance and production targets as well as meet environmental, regulatory compliance
and service targets. Successful asset management is recognised as pivotal in a modern profitable business practice –
reliability and availability of these assets is crucial to a company’s success.

A powerful solution is needed to ensure optimal Return on Investment in a company’s operational equipment. You
need a solution which will deliver a significant return on assets by allowing your team to focus on how best to utilise
and maintain those assets to increase productivity. Enterprise Asset Management (EAM) software provides a com-
pany with greater visibility into its operations and planned maintenance of physical assets to help trim inefficiencies,
improve productivity, optimise inventory levels and purchasing costs, reduce costly downtime and thereby increase
profits. Improved asset related decision making becomes quicker and easier.

Enterprise Asset Management is a broad term used to describe software that enables companies to view company-
owned assets holistically. EAM means the whole life optimal management of the physical assets of an organisation
to maximize value. The whole life approach spans all aspects of the asset’s life cycle - specification, design, commis-
sioning, construction, operations and maintenance to disposal. It means the whole life management of these assets
across the enterprise – departments, locations, facilities and business units. Ultimately companies will improve utilisation
and performance, reduce capital costs, extend asset life and improve ROA.

Historically many companies have taken a reactive approach to control of assets but they are now beginning to un-
derstand the benefits of a new, collaborative and integrated approach across the enterprise which yields significant
savings. They are progressing from maintenance management to Enterprise Asset Management having realised the
enterprise wide impact of asset performance, staff productivity and lifecycle costs as embodied by the British Stand-
ards specification PAS 55 (requirements specification for the optimal management of physical infrastructure assets).
PAS 55 is receiving significant attention from companies worldwide seeking to demonstrate a high level of profession-
alism in the whole life cycle management of their physical assets.

In capital-intensive industries physical assets (buildings, infrastructure and equipment) form a significant proportion
of the total assets of the organization. Industries such as process/discrete manufacturing, aerospace and
defence, automotive, chemicals, mining, petroleum, transportation, healthcare, government and public sectors
face the harsh realities of operating in highly competitive markets and dealing with high value assets and equipment
where each failure iis disruptive and costly. At the same time, they must also adhere to stringent occupational and
environmental safety regulations. It is therefore essential that they maximise the return on investment from their as-
set base, the objective must be to extract maximum productivity from the asset and minimise total costs of its acquisi-
tion, operations and maintenance – known as LCAM (Life Cycle Asset Management). LCAM too, provides guidance
on whether it is more cost effective to continue maintaining, dispose and/or replace the asset.

Enterprise Asset Management comes into play when considering the entire asset portfolio of an organisation. As busi-
ness and market requirements are dynamic, the output specifications for the organisation’s assets change constantly.
EAM provides the framework for capital and labour allocation decision processes across the competing categories of
equipment in order to meet business needs. Correspondingly, it merges the collective LCAM efforts and re-evaluates
decisions based on long and short-term economic considerations at the enterprise level.

EAM by definition is the optimisation of a physical asset. These requirements are very different to the management of
a financial asset as defined by IFRS (International Financial reporting Standards).
 Transactions
The need to create transactions can be resource intensive so integration throughout ERP is essential. The transaction
triggers should be batch driven, so that a client can define if they want to create transactions in real time, by batch or
per schedule.

Transaction Flow

Failure Odometer/ Resource • Resource Recovery

Job Card
Analysis Meter Reading Planning • Inventory Issues
Fixed Assets
• Inventory Receipts
• Internal Sales Orders
Equipment Warranty Bulk Stock • Purchase Orders
Setup • Purchase Requisitions
Master Tracking Management
• Inventory Request for
issue
Inventory Multi-Job • Return to supplier
Preventative Location • Job Card
card
Management Management • Ledger Costs
Management

The enterprise asset management suite integrates fully with the master files and operational elements of Sage X3.
This is essential to the delivery of up to date data and seamless transaction flows.
Strength of the solution
Operations
• Optimise cost of ownership
• Optimise efficiency of workshops
• Enhance production uptime of equipment
assets Improve stock management of spare
parts
• Predict reliability problems, prevention is better
than cure
Facilities Management
• Minimise downtime
• Plan resources required
• Optimise human and technical resources
• Manage maintenance and warranty contracts
• Plant maintenance
Fleet Management
• Optimise fleet performance and operational up
time
• Minimise costly unplanned breakdowns
Strategic planning
• Manage your assets so you can meet corpo-
rate performance goals
The ultimate solution
A comprehensive EAM system is dependent
on its data. This data is not only resident in the
core EAM module but is collected from a variety
of sources. It is for this very reason standalone
EAM systems do not work, and when they do, it
is usually with complex and costly integrations
into financial systems, creating high maintenance
activities and disabling the integrity of its data.
This Enterprise Asset Management solution is built
within the Sage X3 framework - it utilises all the
tables from Sage X3 to generate transactions
within Sage X3. It therefore conforms to Sage
X3 development procedures and quality with no
integrations to be managed or maintained.
Applications
It is in the presentation of the core EAM data. For
this reason, the following needs to be presented
Equipment master
• Multi tree level management (Parent child
relationships)
• Record costs against Financial cost centres,
company and actual location tracking
• Unlimited components
• Rotable items
• Equipment master separate from but reliant
on the Fixed Asset master
• Component tracking
• Multiple Measurements
• Serialised
• Warranty and many other contracts such
as:
• Insurance
• Replacement / repair information
(BOM)
• Odometer, meter & time
• Priority in the operations and repair
process
• Pre-defined dimensions when creating as-
sociated transactions
• Incident record recording
• Default supplier information
• Manufacturers information
• Location tracking of equipment and compo-
nents
•
Maintenance planning schedule
• Resources planning for different roles on job
card
• Warranty tracking
• Planned parts/Unplanned components
• Planning in a multitude of unit of measures
(e.g. Kilometres, Days, hours)
• Different bill of materials at different mile-
stones
• Rotatable & consumable management
• Management of dimensions
Instructions and Checklists
• Process from Job Cards
• Purchase Requisition (Replacement)
• Purchase Orders (Replacement No Stock)
• Inventory Request to issue
• Work Orders (Rebuilds) now done on job card
• Purchase Returns to suppliers
• Workflow triggers
• Instruction templates/groups
Maintenance Workflow
• Service work orders (including Fuel & other
sundries)
• Maintenance order (Planned & Unplanned)
(Corrective or Preventative or improvement)
• Manufacturing work order
• Purchase orders generation from work orders
• Resource utilisation
• Adhoc/one-time dashboard
• Internal/External job card management
• Complete fuel Depo management for fleet
consumption
Analysis and reporting
• Predefined Failure codes and failure analysis
by code, resolution and cause
• Analysis by component, component group,
brand etc
• Business decision that can be made on accurate
and complete data
• Tracking of incomplete Work orders, Sales
Orders, Purchase Orders, Use of Resources,
Time to repair (Actual vs Budget) vs Estimate
• Multiple Meter Readings
• Task list control
• Efficiencies of the workshops
Workflow requests
• Breakdown requests
• Improvement requests
• Progress follow ups
• Automated e-mail warning
• Equipment release notifications
Installation
• Configuration requirements pre-defined
• Data Import templates
• Use standard Sage webservices for integration
Environment
The Enterprise Asset Management is dependent upon
the following modules. These can influence and
generate transactions in Sage X3 and report
meaningful information across the product suite.
Fixed Assets
• Dependent on the Fixed Assets
• Financial assets are not necessarily the same
as operational assets, the components it
comprises and the value of that asset
• Fixed Assets must be locked from disposals
when work orders are open against the as-
sets components
General Ledger
• Realtime cost management
• The direct effect of the transactions that must
be created
• Cost management and analysis through
dimensions and cost accounts
• Labour recovery transactions
Inventory
• Bill of material to define part lists
• Management of components in reserve for
replacement
• Management of components location tracking
for repair
• Management of bulk inventory
Procurement
• External maintenance purchase order
• Procurement of external resources
• Procurement of components not in stock
Job cards and Material resource planning
• Service order
• Preventative maintenance work orders
• Corrective maintenance work orders
• Record actual components used
• Record actual time taken to complete
Quality assurance
• Quality on purchase order receipts
• Quality on work order completion
• Sales Orders
• Internal issues
• External charge
 The Sage Group plc. is a leading global provider of
business management software to small and medium
sized companies, creating greater freedom for them
to succeed. Sage understands how and why each
business is unique. We provide products and services
that suit varying needs, are a pleasure to use and

entered the FTSE 100 in 1999. Sage has over 6

million customers and more than 13,500 employees
in 24 countries covering the UK & Ireland, mainland
Europe, North America, South Africa, Australia, Asia
and Brazil.

For further information please visit www.sage.com

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Sage ERP Africa

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