Enterprise Asset Management Mark Gibbison

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Enterprise Asset Management Mark Gibbison

  1. 1. Enterprise Asset Management Mark Gibbison SAP UK Industry Principal Local Government, Health and Higher Education
  2. 2. Workshop Outline <ul><li>What are you dealing with </li></ul><ul><li>Effective Asset Management </li></ul><ul><li>Potential for Cost Savings </li></ul><ul><li>Typical Pain Points </li></ul><ul><li>Enterprise Asset Management </li></ul><ul><li>Drivers and Benefits </li></ul>
  3. 3. What are you dealing with <ul><li>Local authorities in Scotland control land, property, plant and equipment worth an estimated £18 billion </li></ul><ul><li>Constitutes the second highest cost on revenue budgets after employee expenses </li></ul><ul><li>Improvement in the strategic and operational management of capital assets could have a real impact on financial resources </li></ul><ul><li>Efficiencies and options for reinvestment </li></ul>
  4. 4. Enterprise Asset Management Pain Points <ul><li>Lack of visibility of operation data including maintenance costs </li></ul><ul><li>Not able to accurately determining whether to repair, refurbish or replace equipment </li></ul>Operating Expenditure <ul><li>Incomplete Asset Registers </li></ul><ul><li>Unknown Value of Assets </li></ul><ul><li>Unknown condition of assets </li></ul><ul><li>Limited visibility of depreciation </li></ul>Asset Value/Condition <ul><li>Disconnected systems not linking critical data between design and purchasing costs </li></ul><ul><li>Lack of software tools that would reduce design time and validate proper equipment selection </li></ul><ul><li>Lack of data. Not knowing what the life of equipment is and therefore full project life cycle costs </li></ul>Capital Expenditure Key Observations Typical Pain Points
  5. 5. Enterprise Asset Management Pain Points (Continued) <ul><li>Lack of consistency and data transparency across the company </li></ul><ul><li>Lack of data auditability </li></ul><ul><li>Lack of central data source for health and safety </li></ul><ul><li>Lack of integration with employee, HR, data </li></ul>Health, Safety and Environmental (HS&E) Performance <ul><li>Lack of timely and accurate preventative maintenance data </li></ul><ul><li>Poor, inadequate planning and scheduling data of personnel and maintenance activities </li></ul>Asset Utilisation Key Observations Typical Pain Points
  6. 6. Enterprise Asset Management . . . An Evolution Computerized Maintenance Management Systems <ul><li>Asset Registers </li></ul><ul><li>Asset Valuations </li></ul><ul><li>Asset Maintenance Schedules </li></ul><ul><li>Procurement and Inventory </li></ul><ul><li>Inspection and Calibration </li></ul><ul><li>Asset Condition Monitoring </li></ul><ul><li>Mobile Inspection </li></ul><ul><li>Project Management </li></ul><ul><li>Redeployment/Disposal </li></ul><ul><li>Alignment with Business Strategy </li></ul>Full Enterprise Asset Management <ul><li>Core Financials </li></ul><ul><li>Financial Optimisation </li></ul><ul><li>Capital Investment Planning </li></ul><ul><li>Human Resources </li></ul><ul><li>Time and Payroll </li></ul><ul><li>Skills Management </li></ul>
  7. 7. Enterprise Asset Management Enterprise <ul><ul><ul><li>Looks at more than one plant, but is flexible enough to accommodate local variations </li></ul></ul></ul><ul><ul><ul><li>Uses standard business practices and KPI's </li></ul></ul></ul>Asset <ul><ul><ul><li>Focuses on assets and optimization, not just on maintenance </li></ul></ul></ul><ul><ul><ul><li>Optimizes equipment lifecycle decisions </li></ul></ul></ul>Management <ul><ul><ul><li>Balances performance, risk, and cost to achieve maintenance excellence </li></ul></ul></ul><ul><ul><ul><li>Looks at maintenance in a business context to drive company profits </li></ul></ul></ul>
  8. 8. EAM – Potential for Cost Savings Maintenance Cost Escalation in the US Key Observations Source: “Benchmarking Best Practices in Maintenance Management,” Terry Wireman, 2004 Total maintenance spend is over $2 trillion Approximately one third of the total maintenance spend is unnecessary Maintenance workers spend fewer than 4 hours per day performing hands-on work Downtime costs from lost production outweigh direct maintenance costs by a ratio of 4:1 Maintenance costs have risen 10-15% per year for the past 25 years Necessary Wasted 0 200 400 600 800 1000 1200 1400 1600 1800 2000 2000 1979 USD in Billions 1990
  9. 9. Asset Management Activity Tracking Source: Aberdeen Research, Enterprise Asset Management Benchmarking Report, 2003 % of respondents … .organisations are not thoroughly tracking some of their most important maintenance activities, leaving significant untapped opportunity to save operating costs…. Depreciation planning Facility utilization Maintenance planning Ad hoc asset maintenance Spare parts management Fleet assignment Component configuration 65.5% EAM – Potential for Cost Savings 0 10 20 30 40 50 60 70 53.6% 49.6% 45.2% 35.3% 26.6% 26.2%
  10. 10. Enterprise Asset Management Business Drivers Increase asset productivity and speed up repair cycles Drive continuous improvement through Analytics Improve visibility and control over expenditures
  11. 11. Enterprise Asset Management . . . A complex business process MRO Procurement & Inventory Asset Maintenance Financial Optimization & Reliability Reporting Inspection & Calibration Human Resources RFID and Mobile Devices Asset Health Monitoring Materials Requirements Planning Project Management Core Financials
  12. 12. EAM – A Complex Business Process Enterprise Asset Management is a complex operation involving multiple processes, departments, and business partners… MRO Procurement & Inventory Asset Maintenance Financial Optimization & Reliability Reporting Inspection & Calibration Human Resources RFID and Mobile Devices Asset Health Monitoring Materials Requirements Planning Project Management Core Financials
  13. 13. EAM – A Complex Business Process …… requires a complete business solution for all the important facets of your Enterprise Asset Management operations…...
  14. 14. EAM – A Complex Business Process … middleware technology and Enterprise Services Architecture provide an open integration, application, and composition platform . . . Middleware Middleware
  15. 15. EAM – A Complex Business Process . . . enabling the only completely integrated, end-to-end Enterprise Asset Management solution. 3rd Party Systems Legacy Systems Enterprise Systems Middleware 3 rd Party Systems Legacy Systems Enterprise Systems
  16. 16. <ul><li>Design & Specify </li></ul><ul><ul><li>Business planning </li></ul></ul><ul><ul><li>Investment management </li></ul></ul><ul><ul><li>Collaborative specification and design </li></ul></ul><ul><ul><li>Maintenance engineering </li></ul></ul><ul><ul><li>Interfacing CAD systems </li></ul></ul><ul><ul><li>Project management </li></ul></ul><ul><ul><li>Maintenance cost planning </li></ul></ul>An EAM should Support . . .
  17. 17. <ul><li>Procure & Build </li></ul><ul><ul><li>Supplier qualification and candidate selection </li></ul></ul><ul><ul><li>Bidding and contract management </li></ul></ul><ul><ul><li>Procurement process </li></ul></ul><ul><ul><li>Document management </li></ul></ul><ul><ul><li>Project management </li></ul></ul><ul><ul><li>Collaborative construction </li></ul></ul><ul><ul><li>Project and investment controlling </li></ul></ul>An EAM should Support . . .
  18. 18. <ul><li>Operate & Maintain </li></ul><ul><ul><li>Asset Register </li></ul></ul><ul><ul><li>Financial Integration </li></ul></ul><ul><ul><li>Preventive and predictive maintenance </li></ul></ul><ul><ul><li>Maintenance planning and scheduling </li></ul></ul><ul><ul><li>Work order management </li></ul></ul><ul><ul><li>Mobile asset management and RFID </li></ul></ul><ul><ul><li>Contractor management </li></ul></ul><ul><ul><li>MRO and services procurement </li></ul></ul><ul><ul><li>Work clearance management </li></ul></ul><ul><ul><li>Shutdown planning </li></ul></ul><ul><ul><li>Interfacing GIS and SCADA </li></ul></ul>An EAM should Support . . .
  19. 19. <ul><li>Decommission & Dispose </li></ul><ul><ul><li>Asset transfer and disposal </li></ul></ul><ul><ul><li>Collaborative disposal management </li></ul></ul><ul><ul><li>Document management </li></ul></ul><ul><ul><li>Project management </li></ul></ul><ul><ul><li>Waste management </li></ul></ul><ul><ul><li>Asset compliance </li></ul></ul><ul><ul><li>Asset re-marketing </li></ul></ul>An EAM should Support . . .
  20. 20. ..and Give You the Ability to . . . <ul><li>Collaborate </li></ul><ul><ul><li>Design collaboration </li></ul></ul><ul><ul><li>Collaborative project management </li></ul></ul><ul><ul><li>Business partner web portals </li></ul></ul><ul><li>Analyze </li></ul><ul><ul><li>Integrated asset accounting </li></ul></ul><ul><ul><li>Asset and maintenance reporting </li></ul></ul><ul><ul><li>Damage analysis </li></ul></ul><ul><ul><li>Spend and supplier performance analytics </li></ul></ul><ul><ul><li>Budget tracking </li></ul></ul><ul><li>Optimize </li></ul><ul><ul><li>Asset performance management </li></ul></ul><ul><ul><li>Maintenance cost planning </li></ul></ul><ul><ul><li>Reliability-centered maintenance </li></ul></ul><ul><ul><li>Predictive condition monitoring </li></ul></ul><ul><ul><li>Operator dashboards </li></ul></ul><ul><ul><li>Underpin Corporate Business Strategy </li></ul></ul>
  21. 21. A Complete Enterprise Asset Management Solution MRO Procurement & Inventory Asset Maintenance Financial Optimization & Reliability Reporting Inspection & Calibration Human Resources RFID and Mobile Devices Asset Health Monitoring Materials Requirements Planning Project Management Core Financials Middleware Open Integration, Application, and Composition Platform 3 rd Party Systems Legacy Systems Enterprise Systems
  22. 22. Enterprise Asset Management Differentiators Complete Solution <ul><ul><ul><li>Covers all aspects of an asset’s complete lifecycle, including the needs of the maintenance organization…and much more </li></ul></ul></ul>Scalable Solution <ul><ul><ul><li>Supports local plant views while covering the enterprise’s entire asset portfolio </li></ul></ul></ul>Corporate Solution <ul><ul><ul><li>Enables common business practices across the enterprise, with the ability to perform global inventory checks </li></ul></ul></ul>Adaptive Solution <ul><ul><ul><li>Adapts with your business, fueling growth and empowering improved maintenance and reliability </li></ul></ul></ul>
  23. 23. An Adaptive Business Network … enables planning and execution of an optimal enterprise asset management strategy . . . PLAN EXECUTE
  24. 24. 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. PLAN SENSE EXECUTE RESPOND ADAPT
  25. 25. Integrated Enterprise Asset Management – Paybacks Tangible Benefits Source: “Benchmarking Best Practices in Maintenance Management,” Terry Wireman, 2004 Average improvement Increased planned maintenance 78% Reduced emergency work 31% Reduction on excess inventory 29% Improved asset availability 17% Increased maintenance productivity 29%
  26. 26. Summary <ul><li>Asset Management is a Corporate issue </li></ul><ul><li>Best addressed by an Enterprise Solution </li></ul><ul><li>Asset Management Strategy underpins Business and Financial Strategies </li></ul><ul><li>0.1% Saving on £18billion bottom line …….? </li></ul>
  27. 27. Enterprise Asset Management Mark Gibbison SAP UK Industry Principal Local Government, Health and Higher Education
  28. 28. <ul><li>No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. </li></ul><ul><li>Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. </li></ul><ul><li>Microsoft ® , WINDOWS ® , NT ® , EXCEL ® , Word ® , PowerPoint ® and SQL Server ® are registered trademarks of Microsoft Corporation. </li></ul><ul><li>IBM ® , DB2 ® , DB2 Universal Database, OS/2 ® , Parallel Sysplex ® , MVS/ESA, AIX ® , S/390 ® , AS/400 ® , OS/390 ® , OS/400 ® , iSeries, pSeries, xSeries, zSeries, z/OS, AFP, Intelligent Miner, WebSphere ® , Netfinity ® , Tivoli ® , Informix and Informix ® Dynamic Server TM are trademarks of IBM Corporation in USA and/or other countries. </li></ul><ul><li>ORACLE ® is a registered trademark of ORACLE Corporation. </li></ul><ul><li>UNIX ® , X/Open ® , OSF/1 ® , and Motif ® are registered trademarks of the Open Group. </li></ul><ul><li>Citrix ® , the Citrix logo, ICA ® , Program Neighborhood ® , MetaFrame ® , WinFrame ® , VideoFrame ® , MultiWin ® and other Citrix product names referenced herein are trademarks of Citrix Systems, Inc. </li></ul><ul><li>HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C ® , World Wide Web Consortium, Massachusetts Institute of Technology. </li></ul><ul><li>JAVA ® is a registered trademark of Sun Microsystems, Inc. </li></ul><ul><li>JAVASCRIPT ® is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. </li></ul><ul><li>MarketSet and Enterprise Buyer are jointly owned trademarks of SAP AG and Commerce One. </li></ul><ul><li>SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver 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. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves information purposes only. National product specifications may vary. </li></ul>Copyright 2005 SAP AG. All Rights Reserved

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