ISPM Equipment Warranty Solution for SAP

November 14, 2017
© Reliability Dynamics LLC 2017 Reliability Dynamics
ISPM Equipment Warranty Solution for SAP
Industry Standard Solution for Plant
Maintenance (ISPM®)

November 14, 2017
Value Proposition
Use standard SAP for end-to-end
equipment warranty management
 Fully-integrated with standard SAP work management
processes

November 14, 2017
Integrated Failure Reporting and Warranty
Processes
Failure reporting process based on international standard practices
 ISO 14224: Collection and exchange of reliability and maintenance data for equipment
Standard data collection, merging, and analysis processes
 End users and suppliers can use the same process, in essence a common “reliability
language” between them
 Failure reports double as warranty claim forms
 Warranty details explicitly given on both equipment records and failure reports
Warranty claim reconciliation
 Use PM order to confirm warranty credits have been processed by vendor
‘Return Material Authorization (RMA) master records
 One or more devices assigned to an RMA
 RMA data visible on equipment master records
 Complete lifecycle warranty tracking with rigor that eliminates claim duplicity

November 14, 2017
Pipeline Company Application

November 14, 2017
Demethanizer Bottoms Pumps
BOM and Warranty Master

November 14, 2017
Malfunction Report / Warranty Claim
Problem Report: Equipment-Level Details

November 14, 2017
Malfunction Report / Warranty Claim
Repair Report: Component-Level Details

November 14, 2017
Equipment Record

November 14, 2017
Malfunction Report = Warranty Claim Form

November 14, 2017
Caterpillar Field Power Generation Application

November 14, 2017
Oil Production Facility
Caterpillar Field Generator Sets
Equipment
 400 skid-mounted 3508 and 3512 Caterpillar diesel driven power generation units, providing
power for producing wells (oil gathering system)
Site facilities
 Central processing facility, with onsite Caterpillar repair shop
 Local Caterpillar dealer provided diesel mechanics onsite
Warranty
 Warranty cases were identified using SAP standard work management functionality,
notifications and orders
 PM orders used ensure warranty credits were applied for materials and labor.
 Criteria for a settled warranty were zero costs for Caterpillar labor and parts
 Warranty parts received were credited to repair orders on receipt

November 14, 2017
Onsite Repairs with Vendor Warranty Credits
and Core Credits
Warranty repair costs should be reimbursed by the vendor
The PM repair order is the mechanism used to confirm proper vendor credit
 All material transactions must be booked against the respective repair orders
 Goods issues of spare parts
 Goods return of remanufactured cores
– Credits must be reconciled against actual credits
 Failed components (if required by vendor)
 Replacement parts from vendor returned to inventory with credit to respective orders
 Credits for labor must be booked against the respective repair orders
The order balance:
 Should be approximately zero for warranty repairs (depending on terms)
 Should reflect core credits when using Caterpillar’s remanufactured parts “Reman Program”
(or equivalent program by other vendors)

November 14, 2017
PM Repair Orders List Report
Confirm Vendor Credits
Use transaction KOB1 - Orders: Actual Line Items

November 14, 2017
Advanced Metering Infrastructure Application

November 14, 2017
Warranty Process Overview

November 14, 2017
Warranty Master Records
Should contain one or more
provisions
 Each provision can be generic or
material master record specific
 Warranty provision documents can be
integrated with material master records
with document info records (DIR)
 Each provision has a counter and
duration based on counter units
 Provisions have a link operator (and/or
specification) that can be used to
specify when a subset of conditions
pertain to the overall warranty validity
Can be classified for additional
attribute data

November 14, 2017
Warranty Master Records

November 14, 2017
Equipment Master Record
Warranty Tab
Shows warranty master records,
provisions, and overall status
 Positive result
 Warranty master level: all provisions of
the warranty are valid based on the link
operator (and/or specification)
 Provision level: the individual provision is
valid
 Negative result
 Warranty master level: one or more
provisions of the warranty are invalid
with an “and” link operator
 Provision level: the individual provision is
invalid

November 14, 2017
RMA Tab
Shows the last RMA master record
assignment
Details include other equipment
items that are also assigned to the
RMA
Equipment serialization
 Gives equipment a unique identity in
the field (PM) and the warehouse (MM)
 EQ# = MM# + Serial#
 Gives complete lifecycle tracking of
equipment
 Facilitates goods transfers of equipment

November 14, 2017
User Status
Equipment user status is set to
RMA “RMA processing” when
assigned to an RMA master record
 The status controls/restricts business
processes not allowed while the
equipment is out of service
 Once received back from the vendor,
the status is reset to the appropriate
setting

November 14, 2017
Notification
Equipment Failure Report
Failure reporting process based on
ISO 14224 and Reliability-Centered
Maintenance (RCM) methodologies
The notification doubles as a
failure reporting mechanism and
warranty claim form
 Warranty statuses are explicitly shown
on the first tab

November 14, 2017
Notification
Failure Report User Status
Usage:
 Administer RMA process
 Designate warranty claims
 Administer warranty disputes
 A notification cannot be closed if a
warranty dispute is unresolved

November 14, 2017
Notification
Level 1 Failure Assessment
Catalog coding is used to specify
functional failures:
 Multiple reporting parties can input their
findings, including the vendor
 One or more entries possible per
reporting party

November 14, 2017
Notification
Level 2 Failure Assessment
Use coding to specify:
 Component failure mechanism
 Root cause
 Error codes
 Reporting party
Codes 100% consistent with
vendor reliability coding process
(common “reliability language”)
 Customer and vendor failure findings
can be compared (and disputed)
programmatically
Level 2 coding can be maintained
in SAP front-end via characteristic
maintenance (CT04)

November 14, 2017
Notification
Failure Disposition Coding
Actions taken by customer and
vendor
Used to document what was done
to address:
 The failure (corrective actions)
 Warranty (if applicable)

November 14, 2017
RMA Master Record
Installed Base (IBase) functionality
used to create RMA master
records
 RMA is the vendor “Return Materials
Authorization”
 Used to administer equipment returns for
warranty and/or evaluation by vendor
 Change effectivity gives complete
lifecycle tracking of all changes and
updates to RMA records including
equipment assignments and removals
 Materials serialization allows complete
integration with material management
processes
 Tracking via goods movements
 Quality management processes
 Unique specification on SD orders

November 14, 2017
RMA Master Record
Temporal Limitation
 An equipment can be assigned to one
RMA record one time
 If you try to assign an equipment that is
already part of another IBase, you will
get the system message shown at right
 Effectivity gives you complete reporting
and details for every equipment IBase
assignment, E.g.:
– Equipment P101 may be assigned to RMA
record 001 from time A to time B, and then to
RMA record 002 from time C to time D
– Complete records for both RMA records and
assignments to those RMA records are
maintained by the system
 Ensures no duplicate submittals to
vendor

November 14, 2017
RMA Master Record
User Status
Used to administer RMA process

November 14, 2017
Tony Ciliberti
Principal Engineer | Reliability Dynamics
www.reliabilitydynamics.com
tony.ciliberti@rd-eam.com
Thank you

November 14, 2017
Reliability Dynamics LLC
Overview
Registered engineering and technology company, located in Indiana, USA
Specialize in equipment reliability and maintenance solutions for corporate software
with a focus on application of ISO 14224 methods and content in corporate software
Primary product is the Industry Standard Solution for SAP Plant Maintenance
(ISPM®).
Clients
 Precision Drilling Corporation
 Queiroz Galvão - Óleo e Gás (QGOG)
 Pembina Pipeline Corporation
 Nexen Energy
 Maersk Drilling
 Marathon Oil
 Fortis Alberta

November 14, 2017
Reliability Dynamics LLC
International and Industry Standards Involvement
 ISO TC 67/WG4: Reliability Engineering and Technology
 PG1 (US expert): ISO 14224 Collection and exchange of reliability and maintenance data
for equipment
 PT2 (US expert): ISO 20815 Production Assurance and Reliability Management
 Center for Chemical Process Safety (CCPS)
 Process Equipment Reliability Database (PERD) Project
 Host PERD central instance

ISPM Equipment Warranty Solution for SAP

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