SAP Plant MaintenanceSAP Plant MaintenanceBest PracticesBest Practices

By Terrence O’Hanlon, CMRPPublisherReliabilityweb.com and Uptime Magazine

© Copyright 2010 Reliabilityweb.com

SummarySummary A survey of 700 maintenance managers A survey of 700 maintenance managers

and reliability engineers on their and reliability engineers on their implementation and use of SAP Plant implementation and use of SAP Plant MaintenanceMaintenance

SummarySummary The role of the maintenance managers The role of the maintenance managers

and reliability engineers does not include and reliability engineers does not include decision to implement SAP Plant decision to implement SAP Plant MaintenanceMaintenance

Most decisions to use SAP were made Most decisions to use SAP were made outside the maintenance managers and outside the maintenance managers and reliability engineers sphere of influencereliability engineers sphere of influence

SummarySummary The maintenance managers and reliability The maintenance managers and reliability

engineers must adapt and master SAP engineers must adapt and master SAP Plant Maintenance to as a management Plant Maintenance to as a management and decision support tooland decision support tool

SAP Plant Maintenance Best Practices:  Is your company running the latest version of SAP?

Is your company running the latest version of SAP?Is your company running the latest version of SAP?

YesYes

NoNo

Additional CommentAdditional Comment

384 (63 %)384 (63 %)

228 (37 %)228 (37 %)

0 (0 %)0 (0 %)

SAP Plant Maintenance Best Practices:  How long has your company been using SAP Plant Maintenance (PM)?

How long has your company been using SAP Plant Maintenance (PM)?How long has your company been using SAP Plant Maintenance (PM)?

Not using SAP PMNot using SAP PM

Less than 1 yearLess than 1 year

11--5 years5 years

More than 5 yearsMore than 5 years

69 (11 %)69 (11 %)

74 (12 %)74 (12 %)

249 (40 %)249 (40 %)

234 (37 %)234 (37 %)

Comment Comment --

Slide 6 Slide 6 –– shows that the majority of shows that the majority of the respondents to the survey were the respondents to the survey were ““MatureMature”” users users –– Having been on Having been on SAP for more than 1 year.SAP for more than 1 year.

SAP Plant Maintenance Best Practices:  Did your company ever run a "best of breed" CMMS that was not part of the SAP ERP Package?  If so ...

Did your company ever run a "best of breed" CMMS that was not paDid your company ever run a "best of breed" CMMS that was not part of rt of the SAP ERP Package? If so the SAP ERP Package? If so -- please enter the name of the software (i.e. please enter the name of the software (i.e.

DatastreamDatastream 7i, MRO etc...) in the comments box7i, MRO etc...) in the comments box

YesYes

NoNo

Additional CommentAdditional Comment

200 (34 %)200 (34 %)

387 (66 %)387 (66 %)

0 (0 %)0 (0 %)

SAP Plant Maintenance Best Practices:  Why did your company replace the best of breed CMMS with SAP PM? (check all that apply)

Why did your company replace the best of breed CMMS with SAP PM?Why did your company replace the best of breed CMMS with SAP PM? (check all (check all that apply)that apply)

We have always run on SAP PMWe have always run on SAP PM

Better integration with financial softwareBetter integration with financial software

Better integration with human resourcesBetter integration with human resources

Better integration with material managementBetter integration with material management

Better MultiBetter Multi--location site managementlocation site management

Better ReportingBetter Reporting

Other, please specifyOther, please specify

183 (34 %)183 (34 %)

225 (41 %)225 (41 %)

102 (19 %)102 (19 %)

207 (38 %)207 (38 %)

162 (30 %)162 (30 %)

136 (25 %)136 (25 %)

105 (19 %)105 (19 %)

CommentComment

2 of the 3 top reasons for 2 of the 3 top reasons for replacement was integration related replacement was integration related •• There was no replacements due to There was no replacements due to

functionalityfunctionality Clearly, the cost of maintaining Clearly, the cost of maintaining

integrations when either vendor integrations when either vendor updates their software is a updates their software is a consideration for Best of Breed consideration for Best of Breed replacementsreplacements

SAP Plant Maintenance Best Practices:  Please describe your use of failure codes in SAP‐PM at your company?

Please describe your use of failure codes in SAPPlease describe your use of failure codes in SAP--PM at your company?PM at your company?

We use the standard failure codes We use the standard failure codes from SAP PMfrom SAP PM

We developed our own failure We developed our own failure codes in housecodes in house

We had a consultant develop We had a consultant develop failure codes for our usefailure codes for our use

Other, please specifyOther, please specify

164 (29 %)164 (29 %)

252 (45 %)252 (45 %)

67 (12 %)67 (12 %)

75 (13 %)75 (13 %)

Failure Codes Failure Codes --

Failure codes were developed by/for Failure codes were developed by/for the user companies the majority of the user companies the majority of the time (57%)the time (57%)•• This highlights the need for improved This highlights the need for improved

tracking and reporting mechanisms to tracking and reporting mechanisms to enable some of the advanced reliability enable some of the advanced reliability tools and techniques.tools and techniques.

SAP Plant Maintenance Best Practices:  Have you changed your maintenance work process to “fit” SAP PM?

Have you changed your maintenance work process to Have you changed your maintenance work process to ““fitfit”” SAP PM?SAP PM?

YesYes

NoNo

356 (60 %)356 (60 %)

233 (40 %)233 (40 %)

Work PracticesWork Practices

If the majority of the respondents If the majority of the respondents had to change their work processes:had to change their work processes:•• They did not have good work practices They did not have good work practices

to start with to start with –– oror•• They were given SAP preThey were given SAP pre--configuredconfigured

Did they have input into configuration?Did they have input into configuration? Was it configured and then given to them to Was it configured and then given to them to

use?use?

SAP Plant Maintenance Best Practices:  What products do you use to plan maintenance work?

What products do you use to plan maintenance work?What products do you use to plan maintenance work?We do not have a formal maintenance plannerWe do not have a formal maintenance planner

SAPSAP

Microsoft ExcelMicrosoft Excel

Microsoft ProjectMicrosoft Project

PrimaveraPrimavera

PrometheusPrometheus

Other, please specifyOther, please specify

53 (9 %)53 (9 %)

463 (78 %)463 (78 %)

200 (34 %)200 (34 %)

147 (25 %)147 (25 %)

60 (10 %)60 (10 %)

10 (2 %)10 (2 %)

45 (8 %)45 (8 %)

SchedulingScheduling

There are a lot of companies using There are a lot of companies using secondary packages to schedule secondary packages to schedule maintenancemaintenance•• Excel Excel ––•• ProjectProject

SAP Plant Maintenance Best Practices:  What percentage of the maintenance staff have received SAP PM training over the past 12 months?

What percentage of the maintenance staff have received SAP PM trWhat percentage of the maintenance staff have received SAP PM training over the aining over the past 12 months?past 12 months?

100%100%

>75%>75%

>50%>50%

>25%>25%

>5%>5%

00

64 (11 %)64 (11 %)

115 (19 %)115 (19 %)

109 (18 %)109 (18 %)

113 (19 %)113 (19 %)

120 (20 %)120 (20 %)

75 (13 %)75 (13 %)

TrainingTraining

More than More than ½½ (52%) did not receive (52%) did not receive any SAP training in the last yearany SAP training in the last year

Are they trained sufficiently to really Are they trained sufficiently to really optimize their ROI in the product or optimize their ROI in the product or are they just are they just ““Getting ByGetting By””??

SAP Plant Maintenance Best Practices:  On average, how many days per year of SAP PM training does each maintenance employee receive?

On average, how many days per year of SAP PM training does each On average, how many days per year of SAP PM training does each maintenance employee receive?maintenance employee receive?

No formal trainingNo formal training

1 day1 day

22--5 days5 days

over 5 daysover 5 days

221 (37 %)221 (37 %)

151 (25 %)151 (25 %)

172 (29 %)172 (29 %)

51 (9 %)51 (9 %)

TrainingTraining

62% receive 1 day or less of training 62% receive 1 day or less of training in the last year in the last year ––•• Again, how proficient will anyone be Again, how proficient will anyone be

with the software with that level of with the software with that level of training?training?

SAP Plant Maintenance Best Practices:  What percentage of your maintenance work orders are tracked in SAP?

What percentage of your maintenance work orders are tracked in SWhat percentage of your maintenance work orders are tracked in SAP?AP?

100%100%

Less that 75%Less that 75%

Less than 50%Less than 50%

Less than 25%Less than 25%

359 (62 %)359 (62 %)

114 (20 %)114 (20 %)

40 (7 %)40 (7 %)

66 (11 %)66 (11 %)

Data AccuracyData Accuracy

Only 62% tracked 100% of all of Only 62% tracked 100% of all of their data in SAPtheir data in SAP•• How accurate will the reporting/ data How accurate will the reporting/ data

analysis be for the other 38% of the analysis be for the other 38% of the companies?companies?

•• What if only 62% of the companies What if only 62% of the companies tracked 100% of their financial data?tracked 100% of their financial data? The IRS would love to visit themThe IRS would love to visit them

SAP Plant Maintenance Best Practices:  What percentage of your MRO spares are tracked in SAP?

What percentage of your MRO spares are tracked in SAP?What percentage of your MRO spares are tracked in SAP?

100%100%

Less that 75%Less that 75%

Less than 50%Less than 50%

Less than 25%Less than 25%

287 (51 %)287 (51 %)

130 (23 %)130 (23 %)

54 (10 %)54 (10 %)

91 (16 %)91 (16 %)

Material DataMaterial Data

If only 51% of the companies track If only 51% of the companies track all of their material data in SAP, how all of their material data in SAP, how are they tracking the rest of their are they tracking the rest of their data?data?

If they are not tracking it, how can If they are not tracking it, how can they do life cycle costing?they do life cycle costing?•• How would the parts cost be How would the parts cost be

accumulated?accumulated?

SAP Plant Maintenance Best Practices:  Is SAP used to generate all maintenance reports? (If not ‐ please use the comment box to indicate ...

Is SAP used to generate all maintenance reports? (If not Is SAP used to generate all maintenance reports? (If not -- please use the please use the comment box to indicate what product is used to generate maintencomment box to indicate what product is used to generate maintenance ance

reports)reports)

YesYes

NoNo

Additional CommentAdditional Comment

355 (62 %)355 (62 %)

222 (38 %)222 (38 %)

0 (0 %)0 (0 %)

ReportsReports

Most likely exporting the data to a Most likely exporting the data to a 33rdrd party software package for party software package for analysis.analysis.

SAP Plant Maintenance Best Practices:  Check all elements included in your use of SAP PM:

Check all elements included in your use of SAP PM:Check all elements included in your use of SAP PM:

Bar Code scannersBar Code scanners

RFIDRFID

Handheld Mobile devicesHandheld Mobile devices

GPSGPS

Vibration AnalysisVibration Analysis

Infrared ImagesInfrared Images

Ultrasound ReadingsUltrasound Readings

Oil Analysis reportsOil Analysis reports

126 (41 %)126 (41 %)

44 (14 %)44 (14 %)

89 (29 %)89 (29 %)

32 (10 %)32 (10 %)

160 (52 %)160 (52 %)

82 (27 %)82 (27 %)

66 (21 %)66 (21 %)

143 (46 %)143 (46 %)

Data ElementsData Elements

This was very encouraging to see This was very encouraging to see this type of data tracked in SAPthis type of data tracked in SAP•• It truly supports the EAM concept It truly supports the EAM concept

All data about the assets being tracked in 1 All data about the assets being tracked in 1 integrated systemintegrated system

SAP Plant Maintenance Best Practices:  Are you a member of ASUG?

Are you a member of ASUG?Are you a member of ASUG?

YesYes

NoNo

96 (16 %)96 (16 %)

486 (84 %)486 (84 %)

ASUG MembershipASUG Membership

Consider:Consider:•• If the company has an ASUG If the company has an ASUG

membership, is it the IS department or membership, is it the IS department or the Maintenance/ Reliability the Maintenance/ Reliability departments that sponsor the departments that sponsor the memberships?memberships?

•• Apparently there is a need (or Apparently there is a need (or opportunity) for more Maintenance and opportunity) for more Maintenance and Reliability Professionals to influence Reliability Professionals to influence ASUGASUG

SAP Plant Maintenance Best Practices:  Please provide your overall rating of SAP PM for managing maintenance

Please provide your overall rating of SAP PM for managing maintePlease provide your overall rating of SAP PM for managing maintenancenance

PoorPoor

FairFair

GoodGood

ExcellentExcellent

41 (7 %)41 (7 %)

150 (26 %)150 (26 %)

301 (53 %)301 (53 %)

80 (14 %)80 (14 %)

Rate the SystemRate the System

2/3rds of the respondents rate the 2/3rds of the respondents rate the system as excellent or good for system as excellent or good for managing maintenancemanaging maintenance

This is against the industry This is against the industry perception that SAP is not a perception that SAP is not a ““MaintenanceMaintenance”” systemsystem

SAP PM Best Practice SAP PM Best Practice SummarySummary

An analysis of the driving An analysis of the driving factors behind effective use of factors behind effective use of

SAP PMSAP PM

Key FindingsKey Findings

Satisfaction with SAP PM early in the Satisfaction with SAP PM early in the implementation process is lowimplementation process is low

Satisfaction is dramatically improved Satisfaction is dramatically improved by a number of key drivers:by a number of key drivers:•• Alignment of software with internal Alignment of software with internal

process (configuration of both)process (configuration of both)•• Utilization of external Utilization of external

resources/consultantsresources/consultants•• Commitment to employeeCommitment to employee--wide trainingwide training

Key FindingsKey Findings

Satisfaction is higher when reporting Satisfaction is higher when reporting is mastered using SAP native is mastered using SAP native capabilitiescapabilities•• 38% use Excel/Access to manage 38% use Excel/Access to manage

reports reports

Key FindingsKey Findings

Satisfaction with SAP PM is higher Satisfaction with SAP PM is higher whenwhen•• The higher percentage of work trackedThe higher percentage of work tracked•• The higher percentage of spares trackedThe higher percentage of spares tracked

Integration MotivationsIntegration Motivations

Integration with financial softwareIntegration with financial software Integration with human resourcesIntegration with human resources Integration with material managementIntegration with material management Better MultiBetter Multi--location site managementlocation site management Better ReportingBetter Reporting Sarbanes Oxley ComplianceSarbanes Oxley ComplianceOther, please specifyOther, please specify

SAP PM AdoptionSAP PM Adoption

SAP PM is recognized as a critical SAP PM is recognized as a critical component of plant maintenancecomponent of plant maintenance•• Over 90% of respondents were running Over 90% of respondents were running

some version of SAP PMsome version of SAP PM•• Advantages of deeper enterprise Advantages of deeper enterprise

integration outweigh challengesintegration outweigh challenges•• 34% moved from Best of Breed Point 34% moved from Best of Breed Point

Solutions to SAP PMSolutions to SAP PM

A Period of CustomizationA Period of Customization

SAP PM Implementation involves a SAP PM Implementation involves a period of period of ““customizationcustomization”” during during which satisfaction with the software which satisfaction with the software may be low:may be low:•• 60% of respondents indicated that they 60% of respondents indicated that they

had modified internal processes to had modified internal processes to better align with SAP PMbetter align with SAP PM

•• 57% of respondents indicated that they 57% of respondents indicated that they had developed custom failure codeshad developed custom failure codes

Hybrid TechnologiesHybrid Technologies

Part of the customization may Part of the customization may involve the utilization of thirdinvolve the utilization of third--party party technologies (i.e., a hybrid solution) technologies (i.e., a hybrid solution) to account for SAP PMto account for SAP PM’’s inability to s inability to meet plant needs or requirements:meet plant needs or requirements:•• 76% of respondents utilized secondary 76% of respondents utilized secondary

technology (i.e., Microsoft Access or technology (i.e., Microsoft Access or Microsoft Excel) to plan their Microsoft Excel) to plan their maintenance workmaintenance work

HYBRID

SOLUTIONS

The Impact of ConsultantsThe Impact of Consultants Consultants play a vital role in the Consultants play a vital role in the

implementation processimplementation process•• They have the benefit of being able to They have the benefit of being able to

view and assess plant processes to view and assess plant processes to better align SAP PM (via customizing the better align SAP PM (via customizing the software or the process) with plant software or the process) with plant workflowworkflow

Over 75% of respondents utilized Over 75% of respondents utilized consultantsconsultants

Over 50% of respondents who utilized Over 50% of respondents who utilized consultants were satisfied with the consultants were satisfied with the softwaresoftware

A Commitment to TrainingA Commitment to Training

Training plays a critical role in Training plays a critical role in satisfactionsatisfaction•• Without training, less than 50% of Without training, less than 50% of

respondents were satisfied with SAP PMrespondents were satisfied with SAP PM•• Satisfaction increased dramatically, Satisfaction increased dramatically,

12%, with even just 1 day of formal 12%, with even just 1 day of formal trainingtraining

•• Respondents with 100% of maintenance Respondents with 100% of maintenance employees receiving training showed employees receiving training showed improved satisfaction as well (75%)improved satisfaction as well (75%)

ConclusionConclusion

Satisfaction with SAP PM is Satisfaction with SAP PM is influenced by a number of factors:influenced by a number of factors:•• Tracking all work Tracking all work •• Tracking all sparesTracking all spares•• Reporting masteryReporting mastery

ConclusionConclusion

Satisfaction with SAP PM is Satisfaction with SAP PM is influenced by a number of factors:influenced by a number of factors:•• CustomizationCustomization——modifying SAP PM and modifying SAP PM and

internal plant process for better internal plant process for better alignment; use of thirdalignment; use of third--party party technologies to technologies to ““bridge the gapbridge the gap””

•• ConsultantsConsultants——use of outside consultants use of outside consultants to drive that customizationto drive that customization

•• TrainingTraining——training all maintenance training all maintenance employees and keeping up on employees and keeping up on continuing education regarding SAP PMcontinuing education regarding SAP PM