BT10 Hagler Optimizing Equipment Life Cycle Enterprise Asset Management

8/6/2019 BT10 Hagler Optimizing Equipment Life Cycle Enterprise Asset Management

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As much as 50% of capital investment in newequipment is made to compensate for theunderperformance of existing equipment.

Reputation Customer satisfaction

Repeat business

Competitive advantage

Why Focus on Asset Reliability

Optimizing Equipment Lifecycle: Enterprise Asset Management


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What is Equipment Life Cycle?


Commission

Operate

Maintain

Retire / Replace

Design

Construct

Equipment & Asset

Life-Cycle


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Cost savings

- Reduction in maintenance expense 10% to 30%

Areas of savings

- Increase in production yield 3% to 5%- Reduced maintenance downtime 20% to 40%

- Reduced scrap / rework 5% to 10%

- Reduction in annual purchases 5% to 15%

- Improved labor utilization 10% to 30%

- Increased equipment service life 2 years

Why Optimize Equipment Life Cycle?



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Project controls

Asset management

- Plant maintenance

-

MRO / spares inventory- MRO purchasing

How QAD EAM Assists


EAM Project Controls

EAM Asset Management

Commission

Operate

Maintain

Retire /

Replace

Design

Construct

Equipment& Asset

Life-Cycle


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AP recorded, spreadsheets

Last updated?

Purchase costs only?

Internal labor? Internal materials?

Subcontractor services?

True acquisition cost?

Project Engineering Challenges



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Spending control

- Electronic workflow approval

- Spending alert notification

- Provide segregation of duties

Project work breakdownstructure

Customer projects

- Customer reimbursements

-Scheduled supplier payments

- Margin

EAM Project Controls: Key Capabilities




Commission

Operate

Maintain

Retire /

Replace

Design

Construct

Equipment& Asset

Life-Cycle


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Manufacturing

- Inventory master

- Work order costs

-

BOM Service and support

management

EAM Project Controls: Roadmap




Commission

Operate

Maintain

Retire /

Replace

Design

Construct

Equipment& Asset

Life-Cycle


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Overall equipment effectiveness (OEE)

- Global average is 55%

Average unplanned / reactive work is 55%

-

World class is


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Supports preventativemaintenance (PM) / PDM

PMs triggered based on actual

production

Analyze repair costs for labor,material and contractor

expenses

Measure mean time between

failure (MTBF)

Breakdown alerts via email orpage

EAM Plant Maintenance: Key Capabilities




Commission

Operate

Maintain

Retire /

Replace

Design

Construct

Equipment& Asset

Life-Cycle


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Annual MRO purchases can equal 1% to 5% ofrevenue

In most cases, MRO is expensed at receipt

Unnecessary or incorrect purchases can range

from 10% to 25%

As much as 30% of MRO inventory is obsolete

Typical MRO Environment



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Manage company catalogfor MRO items

Automatic stock replenish

Supplier price schedules

Consignment inventory

Transfer parts across plants

Request for quote (RFQ)

Requisition approvalworkflow

EAM MRO: Key Capabilities




Commission

Operate

Maintain

Retire /

Replace

Design

Construct

Equipment& Asset

Life-Cycle


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Share RFQ with suppliers via SC Portal

Contract purchasing

EAM MRO: Roadmap




Commission

Operate

Maintain

Retire /

Replace

Design

Construct

Equipment& Asset

Life-Cycle


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Make better decisions

Support intentional decisionmaking

- from preparation

- to decision making

- to implementation

Manage by Fact

Improve shareholder value

EAM: Business Intelligence



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An out-of-the-box, performance management toolthat instantly transforms transactional data fromEAM into visually-depicted trends.

EAM Roadmap: Business Intelligence



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Start with a high-level KPI




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Drill-down to further detail




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Drill-down to further detail




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Projects

Cash flow forecast

Expenditure analysis

Budget summary

Indirect purchasing Spending analysis

Spending by equipment

Purchases by vendor

Purchases by commodity

Rush orders

Late receipts

MRO inventory

Inventory turns

Slow moving inventory

Inventory value trends

Stock out analysis

Financials

Operational expense cashflow

Actual vs. Budget

Top cost center by % ofbudget




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Maintenance

Top equipment by cost andby MTBF

Top equipment failures

Top reason by downtime Planned vs. Unplanned work

orders

Planned vs. unplannedlabor hours

PM vs. CM work orders

Work order count by priority

Equipment availability

Maintenance (by period)

Total maintenance cost

Service request count

Work order backlog

Count

Labor hours

Average days open

PM compliance




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March 2011: general available (GA)

Supported versions

- 2007 SE through 2010 SE

- 2007 EE through 2011 EE

QAD EAM Status



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Project controls- Bring projects in on-time and within budget

- Control excessive spending

Plant maintenance

- Increase equipment efficiency

- Lower cost of repairs

MRO inventory and purchasing

- Right-sizing inventory lowering obsolete items

- Minimize stock-out thereby limited equipment

downtime

- Eliminate unnecessary purchases

Review



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Metrics Affected


Process Benefit Value

Manage PM Production yield

Scrap / rework

Equipment service life

+10 to 20%

-20 to 50%

+10 to 20%

Manage labor resources Labor utilization +10 to 25%

Manage uptime Maintenance downtime

Production yield

-20 to 50%

+10 to 20%

Optimize inventory Inventory value - availability,common across plants

Stock-outs

-20 to 30%

-30 to 50%

Manage spend Annual purchases -10 to 20%

Officially source items Approved suppliers, bestprice

- 5 to 10%

Control project costs Manage costs withinbudget

Save services


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Get involved in customer advisory groups

Stop by the EXPO for a demo

Ask your account manager for an EAM

QScan

Next Steps



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BT10 Hagler Optimizing Equipment Life Cycle Enterprise Asset Management

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