Driving Excellence in Enterprise Asset Management - SAP · 2017. 2. 23. · Enterprise Asset...

Driving Excellence in Enterprise Asset ManagementInsights from SAP Performance Benchmarking

© 2012 SAP AG. All rights reserved. 2

Powerful Trends Are Driving Change in EnterpriseAsset Management (EAM)

Globalized Competition

Budgetary constraints

CAPEX and business strategy alignment

Reliability programs

Uncertain Markets Sustainability

Eroding margins

Maintenance outsourcing

Asset availability and utilization balance

Compliance risks

Safe Operations

Energy and emissions management

Maximize Return on Physical Assets to Survive with Limited Investments

Drive Competitiveness with Excellence in Operations and Maintenance

Manage EHS* Performance and Asset-Related Risks


Executive QuestionsWhat Does This Mean for Your Business?

How do I maximize asset productivity and return on physical assets?

How can I reduce maintenance costs while ensuring better asset availability?

How can I drive safe and sustainable asset operations?


Enterprise Asset ManagementKey Objectives: Significant Gap between Importance and Achievement

Source: SAP EAM Benchmarking 2011, based on data f rom over 60 participants (including SAP customers)Objective’s Importance and Ac hievement are on Likert Scale (1-5)

Maximize Asset Productivity Reduce Cost Drive Safe and Sustainable Operations

-

1,00

2,00

3,00

4,00

5,00

Importance Achievement

1.52 1.551.20


Measuring Value: Enterprise Asset Management

Operating Equipment Effectiveness

Return On Assets

Unplanned Outages

Maximize Asset Productivity

Reduce Cost

Annual OSHA Related Incidents

Drive Safe Operations

Annual Service and Maintenance Cost

Planned Maintenance Budget vs. Actual Cost

Recordable Accident Frequency Rate

i


What Is Leading Performance? Maximize Asset Productivity

Operating Equipment Effectiveness (%)

Unplanned Downtime/ Outages (%)

88.0% Best 1.0% Best20.4% Best

Return OnAssets (%)

“Best run assets have 35% higher operating equipment effectiveness”

“Best run assets witness7 - times lower unplanned downtime/ outages”

“Best performers realize 3.5-times higher return on assets”

Note: “Best” = Top 25%, “Worst” = Bottom 25%

Source: SAP EAM Benchmarking 2011, based on data f rom over 60 participants (including SAP customers)


What Is Leading Performance? Reduce Cost

Annual Service and Maintenance Cost

(% of revenue)

Planned Maintenance Budget vs. Actual

Cost (%)

1.5 Best 98% Best

“Best performers have6- times lower annual service and maintenance cost”

“Best performers are well within the planned maintenance budget”




What Is Leading Performance? Drive Safe Operations

Recordable Accident Frequency Rate (per

200K work hours)

0.7 Best

“Safe run assets witness 75% lesser accidents”


Annual OSHA Related Incidents (per total man hours worked)

2.6 Best

“Best performers have15-fold less OSHA related incidents”



High-Impact Strategies

Reduce Costs

Improve Asset Productivity and Reliability1Integrate Asset Management with Enterprise Operations2

Leverage Cross-Enterprise Processes and Data3

Enable Safe And Sustainable Asset Operations4

Maximize Asset Productivity

Drive Safe Operations


Improve Asset Productivity and Reliability

How to do This?

Implement preventive/predictive maintenance scheduling

Optimize assets performance level

Enable labor balancing

Balance in-house and outsourced maintenance

Best Practices and Their Impact?

1

“Organizations generating maintenance work orders from preventive maintenance inspections have on average 42% higher return on assets”

“Organizations using reliability based maintenance procedures and tools tend to have 36% higher average age of assets”

15,8 19 21,5

Low Medium High

Avg. Age of Assets (in years)

2 3 41

11,1 13,7 15,7

Low Medium High

Return On Assets (%)

+42%

+36%


Shell Exploration and Production Co implemented “STARS” (SEPCo Total Asset Reliability Solutions) to introduce new and improved ways of working to address maintenance, production optimization, and operational effectiveness goals.

Reactive work decreased 6%

Deferred production reduced from 10.3% to 6.4%

Labor utilization increased 20%

Schedule attainment increased 18%

Cost reduction through efficiency improvement

Source – SAP Customer Success Story


Best Practices and Their Impact?How to do This?

Optimize asset life cycle through long term asset planning, utilization and upgrades

Align asset management goals, objectives, and metrics with operations

Establish continuous improvement teams focused on EAM

2 Integrate Asset Management with Enterprise Operations

“Organizations which track accurate maintenance costs for all assets have on average 32% lower annual service and maintenance costs”

5,94,3 4

Low Medium High

Annual Service & Maintenance Cost (% of Revenue)

-32%

2 3 41


Eastern Municipal Water District needed a scalable system in place to support fact-based decision making throughout the enterprise

Reduced annual labor cost for water delivered by US$1 M and wastewater delivered by US$1.3 M

Cut Annual Maintenance Cost by US$390 K

Managed mid-year cost-reduction effort for all 26 district departments

Created Reusable Dashboard Template That Integrates withData Warehouse

Built metrics administrator to reduce long-term maintenance cost

Enhanced customer and employee satisfaction Source – SAP Customer Success Story


Best Practices and Their Impact?

3 Leverage Cross-Enterprise Processes and Data

How to do This?

Standardize maintenance processes across enterprise/ plants

Leverage cross-plant data to rationalize equipment and spare parts inventory

Leverage corporate procurement for equipment, spare parts and services cost reduction

2 3 41

“Organizations where maintenance systems are integrated with enterprise systems (inventory, purchasing and finance) have on average 10% higher weekly maintenance schedule attainment rate”

79,182,2

86,8

Low Medium High

Weekly Maintenance Schedule Attainment Rate (%)

+10%


Conectiv Energy was in need of automation technology for lean operations and lacked experience with advanced IT infrastructure and portal resulting in low user acceptance

Acceleration of Operational Readiness

Lean Operations with Cutting Edge Technology

50% maintenance & operations time savings

Greater focus on planning and value added tasks

Increase in user acceptance

24x7 work order prioritization and tracking made possible



4Best Practices and Their Impact?

Enable Safe and Sustainable Asset Operations

How to do This?

Establish and monitor strong safety measures for people and assets

Monitor personnel skills and certifications for regulatory requirements, safety and efficiency

2 3 41

“Organizations that assign personnel based on qualification, availability and tasks to be performed have 32% lower OSHA related expense”

27,58

18,76 18,54

Low Medium High

OSHA Related Costs per FTE (‘000)

-32%

Source: SAP MAN and EAM Benchmarking 2011, based on data f rom over 200 participants (including SAP customers)

Pemex required ability to examine production, environmental, health, safety, compliance or maintenance data in single dashboard

Greater visibility to production operations, compliance and maintenance across corporation

Greater receptivity and interest from production workers

Greater compliance through improved controls

Superior data management functionality

Overtime reduced by 50%

Internal customer satisfaction increased by 80%



What’s Next?

Experience

it yourself at the next SAPPHIRE or World Tour

Initiate

the benchmarking process with a free Value Assessment at valuemanagement.sap.com/

Ask

your account team to schedule an Executive Briefing

Thank You!


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© 2012 SAP AG. All Rights Reserved.

SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, 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 other countries.

Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company.

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All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG.

Source of Benchmarks provided in this document: SAP Performance Benchmarking.

Benchmarking Disclaimer: This information is provided by SAP on an "as-is" basis without warranty of any kind, and subject to the "General Disclaimer" and other terms of use stated at http://www.sap.com/company/legal/copyright/. Any results or comparisons shown are for general information purposes only and any particular data or analysis should not be interpreted as demonstrating a cause and effect relationship. Comparable performance on one given key performance indicator does not guaranty comparable performance on another key performance indicator.

Driving Excellence in Enterprise Asset Management - SAP · 2017. 2. 23. · Enterprise Asset...

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