06conf fri SAP

Document Sample
06conf fri SAP Powered By Docstoc
					Enterprise Asset Management

Mark Gibbison
SAP UK
Industry Principal
Local Government, Health and
Higher Education
Workshop Outline
•   What are you dealing with
•   Effective Asset Management
•   Potential for Cost Savings
•   Typical Pain Points
•   Enterprise Asset Management
•   Drivers and Benefits
What are you dealing with
• Local authorities in Scotland control land, property, plant and
  equipment worth an estimated £18 billion
• Constitutes the second highest cost on revenue budgets after employee
  expenses
• Improvement in the strategic and operational management of capital
  assets could have a real impact on financial resources
• Efficiencies and options for reinvestment
Enterprise Asset Management Pain Points
  Typical Pain Points     Key Observations
  Capital Expenditure        Disconnected systems not linking critical data between design and purchasing costs
                             Lack of software tools that would reduce design time and validate proper equipment
                              selection
                             Lack of data. Not knowing what the life of equipment is and therefore full project
                              life cycle costs
  Asset Value/Condition      Incomplete Asset Registers
                             Unknown Value of Assets
                             Unknown condition of assets
                             Limited visibility of depreciation
  Operating Expenditure      Lack of visibility of operation data including maintenance costs
                             Not able to accurately determining whether to repair, refurbish or replace equipment
Enterprise Asset Management Pain Points
(Continued)


                         Key Observations
  Typical Pain Points
  Asset Utilisation         Lack of timely and accurate preventative maintenance data
                            Poor, inadequate planning and scheduling data of personnel and maintenance
                             activities


  Health, Safety and        Lack of consistency and data transparency across the company
  Environmental (HS&E)      Lack of data auditability
  Performance               Lack of central data source for health and safety
                            Lack of integration with employee, HR, data
Enterprise Asset Management . . . An Evolution



                          Computerized Maintenance
                            Management Systems

                              Asset Registers
                              Asset Valuations
                              Asset Maintenance Schedules
                               Procurement and Inventory



                   Full Enterprise Asset Management
      Human Resources       Inspection and Calibration    Core Financials
      Time and Payroll      Asset Condition Monitoring    Financial Optimisation
      Skills Management     Mobile Inspection             Capital Investment
                             Project Management             Planning
                             Redeployment/Disposal
                             Alignment with Business
                              Strategy
 Enterprise Asset Management




              Looks at more than one plant, but is flexible enough to accommodate
Enterprise     local variations
              Uses standard business practices and KPI's



               Focuses on assets and optimization, not just on maintenance
Asset          Optimizes equipment lifecycle decisions




Management
              Balances performance, risk, and cost to achieve maintenance excellence
              Looks at maintenance in a business context to drive company profits
        EAM – Potential for Cost Savings
        Maintenance Cost
                                        Key Observations
       Escalation in the US
2000
1800
                                        Maintenance costs have risen 10-15% per
1600                                    year for the past 25 years
1400
1200
1000
                                        Total maintenance spend is over $2 trillion
800
600
400
200                                     Approximately one third of the total
  0
       1979    1990     2000
                                        maintenance spend is unnecessary
                      USD in Billions

                                        Maintenance workers spend fewer than 4
                                        hours per day performing hands-on work
                           Necessary
                           Wasted
                                        Downtime costs from lost production outweigh
                                        direct maintenance costs by a ratio of 4:1

                                         Source: “Benchmarking Best Practices in Maintenance Management,” Terry Wireman, 2004
EAM – Potential for Cost Savings


                                                                      Asset Management Activity Tracking
                                                      70

….organisations are                                   60
not thoroughly
tracking some of their                                50




                                   % of respondents
most important                                        40

maintenance activities,
                                                      30
leaving significant
untapped opportunity                                  20

to save operating                                     10
                                                            65.5%       53.6%      49.6%       45.2%       35.3%       26.6%       26.2%


costs….
                                                      0




                                                           Source: Aberdeen Research, Enterprise Asset Management Benchmarking Report, 2003
  Enterprise Asset Management Business Drivers




Improve visibility and control over expenditures


Increase asset productivity and speed up repair cycles

Drive continuous improvement through Analytics
      Enterprise Asset Management . .   .
                   MRO
  Asset
               Procurement
Maintenance
                & Inventory




 Human         Inspection &
Resources       Calibration




Asset Health
 Monitoring
                 RFID and
                  Mobile
                                               A complex
                 Devices
                                            business process

  Project        Materials
               Requirements
Management       Planning




                Financial
    Core       Optimization
 Financials    & Reliability
                Reporting
EAM – A Complex Business Process


                                                      MRO
                                     Asset
                                                  Procurement
                                   Maintenance
                                                   & Inventory




                                    Human         Inspection &
                                   Resources       Calibration




 Enterprise Asset
                                   Asset Health     RFID and
                                                     Mobile
                                    Monitoring      Devices


 Management is a
 complex operation
 involving multiple                  Project        Materials
                                                  Requirements

 processes,
                                   Management       Planning



 departments, and
 business partners…
                                                   Financial
                                       Core       Optimization
                                    Financials    & Reliability
                                                   Reporting
  EAM – A Complex Business Process




…… requires a complete
business solution for all the
important facets of your
Enterprise Asset
Management operations…...
EAM – A Complex Business Process




                     Middleware




                                   Middleware




…middleware technology and
Enterprise Services Architecture
provide an open integration,
application, and composition
platform . . .
EAM – A Complex Business Process


                                   Enterprise
                                    Systems

                                                Enterprise
                                                 Systems

                      Middleware
                                   3rd Party
                                   Systems




                                   Legacy
                                   Systems

                                                  3rd
                                                 Party
                                                Systems

      . . . enabling the only
   completely integrated, end-
     to-end Enterprise Asset
      Management solution.
                                                Legacy
                                                Systems
An EAM should Support . . .




                              Design & Specify
                                Business planning
                                Investment management
                                Collaborative specification
                                 and design
                                Maintenance engineering
                                Interfacing CAD systems
                                Project management
                                Maintenance cost planning
An EAM should Support . . .



                              Procure & Build
                                Supplier qualification and
                                 candidate selection
                                Bidding and contract
                                 management
                                Procurement process
                                Document management
                                Project management
                                Collaborative construction
                                Project and investment
                                 controlling
An EAM should Support . . .


                              Operate & Maintain
                                Asset Register
                                Financial Integration
                                Preventive and predictive
                                 maintenance
                                Maintenance planning and
                                 scheduling
                                Work order management
                                Mobile asset management
                                 and RFID
                                Contractor management
                                MRO and services procurement
                                Work clearance management
                                Shutdown planning
                                Interfacing GIS and SCADA
An EAM should Support . . .




                              Decommission & Dispose
                                Asset transfer and disposal
                                Collaborative disposal
                                 management
                                Document management
                                Project management
                                Waste management
                                Asset compliance
                                Asset re-marketing
..and Give You the Ability to . . .

                                      Collaborate
                                       Design collaboration
                                       Collaborative project management
                                       Business partner web portals

                                      Analyze
                                       Integrated asset accounting
                                       Asset and maintenance reporting
                                       Damage analysis
                                       Spend and supplier performance
                                        analytics
                                       Budget tracking

                                      Optimize
                                       Asset performance management
                                       Maintenance cost planning
                                       Reliability-centered maintenance
                                       Predictive condition monitoring
                                       Operator dashboards
                                       Underpin Corporate Business
                                        Strategy
               A Complete Enterprise Asset Management Solution



                   MRO
  Asset
               Procurement
Maintenance
                & Inventory
                                                                     Enterprise
                                                                      Systems


 Human         Inspection &
Resources       Calibration
                                                      Middleware

                                                         Open
Asset Health    RFID and                              Integration,
 Monitoring
                 Mobile                                              3rd Party
                Devices                               Application,
                                                                     Systems
                                                          and
                                                      Composition
                                                       Platform
  Project    Materials
           Requirements
Management   Planning



                                                                     Legacy
                                                                     Systems
                Financial
    Core       Optimization
 Financials    & Reliability
                Reporting
   Enterprise Asset Management Differentiators


                      Covers all aspects of an asset’s complete lifecycle, including the
Complete Solution
                       needs of the maintenance organization…and much more




                      Supports local plant views while covering the enterprise’s entire
Scalable Solution      asset portfolio




                      Enables common business practices across the enterprise,
Corporate Solution     with the ability to perform global inventory checks




                      Adapts with your business, fueling growth and empowering
Adaptive Solution
                       improved maintenance and reliability
An Adaptive Business Network




  …enables planning and
  execution of an optimal
  enterprise asset
  management strategy . . .
An Adaptive Business Network




. . . at the same time
empowering you to sense
and respond to changes
in your business strategy,
creating an adaptive and
responsive business
network.
Integrated Enterprise Asset Management – Paybacks




         Tangible Benefits                                            Average improvement

Increased planned maintenance                                                           78%

Reduced emergency work                                                                   31%

Reduction on excess inventory                                                            29%

Improved asset availability                                                             17%

Increased maintenance productivity                                                      29%


                                Source: “Benchmarking Best Practices in Maintenance Management,” Terry Wireman, 2004
Summary
• Asset Management is a Corporate issue
• Best addressed by an Enterprise Solution
• Asset Management Strategy underpins Business and Financial
  Strategies
• 0.1% Saving on £18billion bottom line …….?
Enterprise Asset Management

Mark Gibbison
SAP UK
Industry Principal
Local Government, Health and
Higher Education

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:4
posted:6/27/2012
language:
pages:27