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SAP EAM / Plant Maintenance: Best Practices
SAP EAM / Plant Maintenance: Best Practices
SAP EAM / Plant Maintenance: Best Practices
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Best Practices
www.dts-global.com
www.ivara.com
TM
www.omcsinternational.com
www.mrgsolutions.com
Supporting Organizations
www.reliabilityweb.com
www.uptimemagazine.com
www.cmmscity.com
www.maintenance.org
Table
of Contents
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Executive Summary
General Information
Planning
Training
Reporting
Summary
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks
or registered trademarks of SAP AG in Germany and in several other countries all over the world.
Figures
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Figure 9: Those That Did / Did Not Change Their Work Process Compared to the
Level of SAP PM Satisfaction Handling Maintenance
Figure 10: Percentage of Work Orders Tracked in SAP EAM / PM vs. Satisfaction
Figure 11: Percentage of Spare Parts Tracked in SAP EAM / PM vs. Satisfaction
Figure 12: What Product Do You Use to Plan Maintenance Work?
Figure 13: Number of Respondents Using SAP and Excel / Project for Planning
Figure 14: Failure Codes Percentage by Who Developed the Codes
Figure 15: Failure Code Development Strategies vs. Satisfaction
Figure 16: Comparison Staff Training vs. SAP PM Satisfaction
Figure 17: Comparison Maintenance Employee Training vs. SAP PM Satisfaction
Figure 18: Use of SAP PM Reporting vs. Satisfaction
Figure 19: Comparison of SAP PM Report Use / Satisfaction and Staff Training
Figure 20: Use of Other Software in Conjunction with SAP PM
Figure 21: Use of Other Software with SAP PM vs. Satisfaction
Figure 22: Use of Other Software Products In Conjunction with SAP PM
Figure23: Membership in SAP User Group (ASUG)
The promises
of an integrated
Enterprise Asset
Management System
(EAM) such as
SAP include:
Executive Summary
Second only to energy, maintenance costs are a significant
portion of every companys expense budget. Recognizing this fact,
companies have implemented strategies to alter the perception
that maintenance is a necessary evil to one where maintenance
is considered a strong contributor to the companys profitability.
One of these strategies is the integration of the computerized
maintenance management system (CMMS) into the companys
information and decision-making network utilizing tools such as
SAP Plant Maintenance.
In order to gain a better and deeper understanding of the use of
SAP PM as a profitability partner, Reliabilityweb.com surveyed 700
maintenance managers and reliability professionals. This report
will provide insight into the use of SAP PM by those surveyed as
well as provide suggestions for further improvement to increase
value, not simply for the maintenance organization but for the
company as a whole.
Significant Insights
The survey results showed that 65% of the respondents felt that SAP PM
was a good to excellent tool for managing maintenance activities. This is
somewhat different than the industry perception that SAP is not a good
maintenance management tool. This will be explored further throughout
this document. The companies that have successfully utilized SAP PM in the
maintenance arena have included the following in their business strategy:
Software was aligned with the internal work processes. In many cases
this required customization which was achieved with the use of outside
consultants in order to utilize their extensive experience.
All work orders and spare parts information was included in the system
along with the elimination of legacy tools that previously supported
these processes.
Extensive training was provided both during implementation and after
deployment to enhance understanding and gain acceptance.
Visible
maintenance
processes
Standardized
maintenance
processes
Visible
maintenance
performance
metrics
SAP PM
This report refers to the popular and past name for the SAP Plant
Maintenance (PM) module. The term SAP EAM is the current form.
In this report - the use of SAP PM is synonymous with SAP EAM.
Give people
data and they
will use it.
Provide
communication
and it knocks
down walls.
General Information
Figure 1: Percentage of Users at
Various SAP PM Maturity Levels
(Note: Those respondents not using SAP PM are excluded from this chart.)
100%
80%
Laggards thought
they were simply
installing a
software tool.
60%
44%
42%
1 - 5 years
40%
20%
14%
0%
Based on the survey data, the majority of the respondents were mature SAP
PM users with 86% using the application for more than one year, and almost
half of the survey respondents using SAP PM for more than five years.
The Percentage of
Respondents Using
SAP By Year
Poor
Fair
Good
Excellent
>5
28%
58%
1 to 5
<1
2%
4%
7%
1%
Often user maturity level does not guarantee that the application
adequately supports maintenance management activities. To clarify the
relationship between maturity and use, the respondents were asked
about the ability of SAP PM to manage maintenance. Fifty-eight percent
of the mature respondents, and an additional 8% using the application
less than one year, rated the system either good or excellent in support of
maintenance. This high rating of the application in support of maintenance
100%
80%
63%
60%
37%
40%
20%
0%
Yes
No
Another area of general interest is the question of whether or not the user
community is staying current with the vendors software releases. This is
important on two fronts. First, new releases provide improved functionality
which enables the application to address the needs of the users in their
performance of the work. Second, new releases often provide patches to
correct issues discovered in the current release either by the vendor or the
user community. Both of these benefits make staying current an attractive
alternative to not staying current. The issues that often delay the migration
to the most current release are the time it takes to integrate what is being
delivered into the current work process, training the users in the new
functionality, and last but not least, testing the release to make certain that
when deployed it will not cause problems. It is encouraging to see that the
survey indicates that 63% of the respondents are using the current version
of the application which indicates that these issues are being addressed.
100%
80%
75%
60%
40%
25%
20%
0%
Used Consultant
353
250
200
353
240
150
100
50
68%
124
77
113
47
62%
Used Consultant
Did consultant support actually add value? The data is inconclusive (68%
used a consultant, while 62% did not) and really does not answer this
question. While those who felt satisfied with SAP as a maintenance tool
and did not use a consultant in the process may feel satisfied, the following
questions need to be addressed to clarify the issue:
Did the effort without a consultant in a support role take longer and
actually cost more internal dollars than the cost of the external support?
Were all of the work processes addressed and modified using best
practices? While internal resources may have a firm understanding of
these practices, external consultants have a broad range of experience
and can add value possibly not even considered internally.
Was the training of high quality and did the students learn the tricks
of the trade? These tricks, or best methods, to utilize the software are
things that internal resources would not know since they would have no
prior knowledge of the software. Consultants, on the other hand, bring
this experience to the table.
If the answers to the above questions were not yes, then the rationale for
consultant use in a software work process implementation effort is sound.
While the survey did not answer these questions, the data indicating that 68%
(353) of those surveyed employed consultant support validates the approach.
Insight
The following general
insights are pertinent to
the use of SAP PM as a
maintenance management
tool:
66% of the survey
population rated SAP
PM good to excellent in
supporting maintenance
work processes. This high
percentage of positive
feedback goes a long way
towards dispelling the
myth that maintenance
is not supported by the
application.
Two-thirds of those
surveyed are running the
current version of SAP PM.
This supports the recognition
by the user community that
there is value in staying
current with new releases.
It also supports the fact that
the software releases are
of good quality. If this were
not the case, the percentage
of users not current would
be higher. It doesnt take
the user community long to
recognize software release
quality problems and delay
upgrades.
The use of consultant
support is value-added if
handled correctly. This
is evidenced by the fact
that three-quarters of the
surveyed population used
consultant support in the
SAP PM implementation.
However, 30% of those
using a consultant still
rated SAP PM in support
of maintenance either fair
or poor. There could be a
multitude of reasons for
this result including how
the consultant support was
utilized, among others. If
a consultant is going to be
used in support of this type
of initiative, role clarity is
important. Both external
and internal resources bring
value; it is how they are
blended into an effective
work team that counts.
Information Regarding
Migration to SAP PM
Figure 6: Reasons for Migration to SAP PM
Improved integration
with financial software
225
207
We have always
run SAP PM
183
Better multi-location
site management
162
Better reporting
136
Other reasons
105
Improved integration
with human resources
102
0
50
100
150
200
250
100%
80%
67%
60%
40%
33%
20%
0%
No
Yes
10
Insight
It is clear from the
responses and from the
additional comments
provided that:
Management is
recognizing the business
value of system integration
and standardization not
only within a plant site but
enterprise-wide across
companies with multiple
plant locations. Clearly
the cost of providing
application integration is
considered by many to be a
Best of Breed approach.
The decision to migrate
from whatever system
was being used prior
to SAP PM appears not
to be a decision made
by the respondents
(maintenance managers
and reliability engineers).
This is supported by the
data in which 22% said
replacement was due to
corporate mandate, a new
owners mandate, or that
the decision was made by
another department.
With the decision to
migrate to SAP PM being
made by others, the
maintenance managers
and their constituents are
taken from the position
of decision maker to one
where they must adopt
the new system and adapt
to the manner in which
it functions. Often a
system is just as much a
part of the organizational
culture as other aspects
of the business. Change
is difficult and being
forced to move to a new
application by corporate or
other departments clearly
could explain why new
users less than one year
using SAP PM would be
evenly split in the systems
overall rating in support of
maintenance activity (see
Figure 2).
100%
80%
61%
60%
40%
39%
20%
0%
No
Yes
350
300
250
251
200
150
100
50
117
66%
135
86
61%
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Insight
For those who are planning
an SAP PM implementation,
the above information
provides an important
work process redesign
insight. Every maintenance
organization has a work
process. Prior information
in this report has indicated
that the decision to move
to SAP PM was determined
outside of the maintenance
arena. Therefore the
process in place needs
to adjust to the SAP PM
functionality. If you have a
highly developed process,
then most likely it will fit
the SAP PM work process
model. The question is:
What if you dont have a
robust process? Software
can be a powerful enabler
of change. New software
should give you the
opportunity to create a
new upgraded process
and use the software
implementation to support
it. Failure to put a new
process in place leads to
dissatisfaction with the
software when in reality it is
the process that is flawed.
This may account for
those who are dissatisfied
with the software and
changed their process
after implementation and
those who tried to maintain
the legacy process within
the context of improved
functionality.
Work Orders
and Spare Parts
Insight
45%
Poor-Fair
Percentage of Respondents
Tracking Work Orders in SAP
40%
Good-Excellent
35%
30%
25%
20%
18%
15%
12%
10%
7%
6%
4% 4%
5%
4%
0%
100%
<75%
<50%
<25%
It is critical to the success of any CMMS, especially one that has integrated
functionality, that all work orders are tracked within the system. Failure to
do so reduces the value of the software integration and the overall ability
to plan, schedule, and manage maintenance work activities. Additionally,
important historical information is lost along with the ability to conduct
reliability-centered analysis.
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36%
35%
Poor-Fair
Good-Excellent
30%
Percentage of Respondents
Tracking Spares in SAP
Insight
25%
20%
16%
16%
15%
10%
7%
7%
9%
7%
3%
5%
0%
100%
<75%
<50%
<25%
The data related to the tracking of spares within the CMMS is somewhat
different than that of work orders. Only 51% of those surveyed track all
of their spares in SAP PM, and only 36% have expressed good to excellent
satisfaction with the systems ability to manage maintenance. This raises
some significant questions: How and where is the data related to spare
parts tracked and stored? How do those who do not use SAP PM to track
spares acquire life cycle cost or reliability data for their assets? Clearly
information gaps of this nature can be serious leading to less than adequate
reliability analysis along with the possibility of making wrong business
decisions, each of which can seriously impact a companys bottom line.
Best Practice
A CMMS/EAM cannot support enhanced maintenance performance
or productivity without complete and accurate information. Imagine
the chaos created by a similar lack of detail in your company
accounting information system.
You must track 100% of your maintenance activity and 100% of
maintenance and repair spares in the CMMS/EAM to get the
greatest return.
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Planning
Insight
482
Microsoft Excel
209
Microsoft Project
155
Primavera
61
No formal planner
59
Other
45
Prometheus
13
0
100
200
300
400
500
600
SAP PM Ranking
Project
Good to
Excellent
335
28%
22%
Fair to Poor
141
37%
25%
476
SAP
450
Excel
400
Project
335
350
300
250
200
150
Number
Using SAP for
Planning
149
141
96
100
53
50
115
79
36
0
FairPoor
Excellent Good
Total
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100%
A good set of
failure codes,
if used, can
provide insight
to reliability
issues.
80%
60%
46%
40%
29%
20%
12%
13%
Consultant
Developed
Codes
Other
See Note
0%
Codes
Developed
In-House
Used SAP
Standard
Codes
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This highlights
the need for
improved tracking
and reporting
mechanisms to
enable some of
the advanced
reliability
tools and
techniques.
Insight
(Note: Results in the Other column are excluded from the discussion since in
the majority of the cases failure codes were not developed or not used in the
maintenance process.)
300
250
200
186
150
100
50
82
69%
114
60
65%
45
26
Codes
Developed
In-House
Used SAP
Standard
Codes
}63%
Consultant
Developed
Codes
41
35
Other
See Note
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Training
Insight
Poor
Fair
Good
Excellent
100%
>75%
13%
36%
22%
29%
>50%
>25%
>5%
0
Poor
>5
2-5
1
0
Fair
1%
33%
Good
Excellent
8%
Insight
In many instances the workforce
has little access to the CMMS and
only receives training in the very
specific areas in which they need
to interact. In other companies,
the workforce has been enabled
to use the software as part of
the job, and while they do not
need the level of training that a
planner would receive, training
is still important. In either case,
the workforce would not require
a great deal of training which
explains the low number of days
of training per year. The level of
use could also explain the level of
satisfaction and dissatisfaction,
the enabled organizations having
a higher regard for the software
due to their ability to use it
extensively.
Best Practice
Training is a huge area for
software improvement and
gain. Training makes any system
easier to use, and if people
are comfortable using the
system, they are more likely to
participate in its success.
58%
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Reporting
Insight
Using Figure 19, we can
explore the use of SAP PM
reporting to bring another
element to the discussion
training. The left-hand chart
shows those who rated SAP
PM in support of maintenance
in the good to excellent range.
The x-axis lists the various
levels of staff training year
by year. Clearly those with
more training (>75% to 100%)
employed SAP PM reporting
far more than those who had
less training in the use of the
software. One would suspect
from this data that training
and report use go hand-inhand.
Is SAP Used to
Generate Reports?
(n = 586)
Poor - Fair
Good Excellent
Yes
18%
46%
No
16%
20%
120
120
105
100
100
80
80
55
60
53
60
38
40
26
20
20
26
28
40
20
29
16
18
14
18 20
27 28
0
>75% to 100%
>50%
>25%
>5%
>75% to 100%
>50%
>25%
>5%
Figure 18 clearly shows that there is a higher level of satisfaction with SAP
PM as a maintenance management tool among those who use SAP reports
(46% good to excellent rating vs. 18% fair to poor rating). The indication
from this statistic is that SAP PM reports deliver the information necessary
for monitoring, analysis, and other associated tasks that require good data.
The satisfaction levels provided by those who do not use the reports is more
evenly split 20% good to excellent vs. 16% fair to poor.
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164
149
133
90
Infrared Imaging
85
Ultrasound Readings
46
GPS
33
0
20
40
60
80
100
120
140
160
Fair
Fair--Poor
Poor
SAP
SAPRating
Rating
10
32
13
25
16
Excellent
Good - Exccllent
SAP
SAPRating
Rating
10
51
51
1
0
20
Good to Excellent
1 to 3
Applications
80
168
4 to 8
Applications
11
61
Fair to Poor
180
67
RFID
Insight
40
92
60
80
100
Number of Respondents
19
Other Products
Used with SAP PM
Insight
Microsoft Excel
436
Microsoft Project
198
Primavera
88
Other
46
Impress
24
MeridiumRCMO
23
Synactive GuiXT
21
PMO-2000
21
Meridium APM
18
Prometheus Group
17
OSIsoft PI
14
Ivara EXP
14
Mincom LinkOne
24/7 Tango
1
0
50
100
150
200
250
300
350
400
Number of Respondents
Microsoft Excel and Microsoft Project are registered trademarks of Microsoft Corporation.
Other trademarks are property of their owners.
20
450
500
84%
80%
60%
40%
16%
20%
0%
No
Yes
An additional factor resulting in the low participation in ASUG by maintenance reliability professionals is the apparent acquiescence of SAP EAM conference, networking
and learning space to commercial events with an SAP Plant Maintenance or SAP EAM
focus. There is an obvious need for SAP PM conferences that share case studies and
best practices. These commercial events drain attention, time, resources and revenue
from a potential audience that would normally serve to grow and support ASUG.
Further research supports the high level of interest in networking and learning related to SAP EAM based on the 4000+ Reliabilityweb.com opt-in e-mail subscribers
registering for an impendent SAP EAM publication. This is further verified by active
SAP EAM online communities and discussion groups at MaintenanceForums.com
(www.maintenanceforums.com) and the Association for Maintenance Professionals
(www.maintenance.org).
As there is a predisposition for companies that invest in SAP as an ERP platform to
support officially sanctioned software user groups, it appears ASUG has a large opportunity to assert its leadership in the maintenance reliability community where
SAP EAM market share is estimated to be between 30%-35% of all maintenance
management and asset management software systems in use. It is suggested that
ASUG can broaden its influence by offering user group conferences that add value to
SAP EAM users and ASUG as well as commercial supporters such as SAP AG and the
SAP supplier community.
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Insight
There are two other possible
answers to the low number
of ASUG members identified
in the survey. First, since
SAP is a software tool, IT
(Information Technology)
is representing the
organization within the
ASUG community. The
other reason is that the
company does not feel that
membership is necessary
and hence does not
participate. In either case,
valuable input and value is
being lost. Through user
conferences, special interest
groups, and local chapters,
this is the method by
which the user community
can influence product
development. It also
provides users within one
company to network with
their peers and improves
their utilization of the
software.
Summary
Work Process The work process must adapt to the new software
without loss of the value that existed in the former process, but gaining
the value offered by the new software.
take place about the effort. People are afraid of change, and without
information about what is happening, they create it, often to the
detriment of the effort.
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If you are a current SAP PM user, we hope you can use this
information to improve your use of this very valuable tool and the other
software tools that support it. This change for the better will vastly improve
not only the use of the software, but far more importantly, your maintenance
management work processes, productivity, reliability, and ultimately the
bottom line performance of your company.
If you are interested in learning more about the SAP PM Best Practices
Survey, please feel free to e-mail Terrence OHanlon at the address below.
Reliabilityweb.com PO Box 60075 Fort Myers FL 33906 USA
tohanlon@reliabilityweb.com www.reliabilityweb.com
Authors
This report was written by Steve Thomas
with additional insights by Terry Wireman, CPMM,
and Terrence OHanlon, CMRP
Steve Thomas
Terry Wireman
Terrence OHanlon
Terrence OHanlon, CMRP is the Publisher of Reliabilityweb.com and Uptime Magazine. He is a Certified
Maintenance & Reliability Professional and is the acting Executive Director
of the Association for Maintenance Professionals (AMP). Mr. OHanlon
is also a member of the American Society of Mechanical Engineers, The
Association of Facilities Engineers, Society of Maintenance and Reliability
Professionals and the Society of Tribologists and Lubrication Engineers.
Reliabilityweb.com is an online community of over 55,000 maintenance
and reliability professionals worldwide created in 1999. A free weekly e-mail newsletter with
tutorials, articles, tips and more is available online at: http://www.reliabilityweb.com
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