Optimizing Your Equipment’s Life Cycle Bo Hagler – Director, R&D, QAD Nancy Majure – Director...
-
Upload
sharleen-mclaughlin -
Category
Documents
-
view
216 -
download
2
Transcript of Optimizing Your Equipment’s Life Cycle Bo Hagler – Director, R&D, QAD Nancy Majure – Director...
Optimizing Your Equipment’s Life CycleBo Hagler – Director, R&D, QADNancy Majure – Director EAM N.A., QAD
Optimizing Equipment Lifecycle: Enterprise Asset Management
2
Safe Harbor Statement
Optimizing Equipment Lifecycle: Enterprise Asset Management
The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD.
3
As much as 50% of capital investment in new equipment is made to compensate for the under−performance of existing equipment.• Reputation• Customer satisfaction• Repeat business• Competitive advantage
Why Focus on Asset Reliability
Optimizing Equipment Lifecycle: Enterprise Asset Management
4
What is Equipment Life Cycle?
Optimizing Equipment Lifecycle: Enterprise Asset Management
Commission
Operate
Maintain
Retire / Replace
Design
Construct
Equipment & Asset Life-Cycle
5
• 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?
Optimizing Equipment Lifecycle: Enterprise Asset Management
6
• Project controls• Asset management
- Plant maintenance- MRO / spares inventory - MRO purchasing
How QAD EAM Assists
Optimizing Equipment Lifecycle: Enterprise Asset Management
EAM Project Controls
EAM Asset Management
Commission
Operate
Maintain
Retire / Replace
Design
Construct
Equipment & Asset
Life-Cycle
7
• AP recorded, spreadsheets• Last updated?• Purchase costs only? • Internal labor?• Internal materials?• Subcontractor services?• True acquisition cost?
Project Engineering Challenges
Optimizing Equipment Lifecycle: Enterprise Asset Management
8
• Spending control- Electronic workflow approval- Spending alert notification- Provide segregation of duties
• Project work breakdown structure
• Customer projects - Customer reimbursements - Scheduled supplier payments- Margin
EAM Project Controls: Key Capabilities
Optimizing Equipment Lifecycle: Enterprise Asset Management
EAM Project Controls
EAM Asset Management
Commission
Operate
Maintain
Retire / Replace
Design
Construct
Equipment & Asset
Life-Cycle
9
• Manufacturing- Inventory master- Work order costs- BOM
• Service and support management
EAM Project Controls: Roadmap
Optimizing Equipment Lifecycle: Enterprise Asset Management
EAM Project Controls
EAM Asset Management
Commission
Operate
Maintain
Retire / Replace
Design
Construct
Equipment & Asset
Life-Cycle
10
• Overall equipment effectiveness (OEE)- Global average is 55%
• Average unplanned / reactive work is 55%- World class is <10%
• Operating environment- 40% of failures are a result of operator error
• Production losses due to breakdowns- Average range 5% to 10%
• Average overtime is 10% to 20%
Typical Asset Management Challenges
Optimizing Equipment Lifecycle: Enterprise Asset Management
11
• Supports preventative maintenance (PM) / PDM
• PM’s triggered based on actual production
• Analyze repair costs for labor, material and contractor expenses
• Measure mean time between failure (MTBF)
• Breakdown alerts via email or page
EAM Plant Maintenance: Key Capabilities
Optimizing Equipment Lifecycle: Enterprise Asset Management
EAM Project Controls
EAM Asset Management
Commission
Operate
Maintain
Retire / Replace
Design
Construct
Equipment & Asset
Life-Cycle
12
• Share scheduling information with production scheduler- MSW/PSW
• Graphical EAM work order scheduling- Visibility into equipment
availability from production
EAM Plant Maintenance: Roadmap
Optimizing Equipment Lifecycle: Enterprise Asset Management
12
EAM Project Controls
EAM Asset Management
Commission
Operate
Maintain
Retire / Replace
Design
Construct
Equipment & Asset
Life-Cycle
13
• Annual MRO purchases can equal 1% to 5% of revenue
• 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
Optimizing Equipment Lifecycle: Enterprise Asset Management
14
• Manage company catalog for MRO items
• Automatic stock replenish• Supplier price schedules• Consignment inventory• Transfer parts across plants• Request for quote (RFQ)• Requisition approval
workflow
EAM MRO: Key Capabilities
Optimizing Equipment Lifecycle: Enterprise Asset Management
EAM Project Controls
EAM Asset Management
Commission
Operate
Maintain
Retire / Replace
Design
Construct
Equipment & Asset
Life-Cycle
15
• Share RFQ with suppliers via SC Portal
• Contract purchasing
EAM MRO: Roadmap
Optimizing Equipment Lifecycle: Enterprise Asset Management
EAM Project Controls
EAM Asset Management
Commission
Operate
Maintain
Retire / Replace
Design
Construct
Equipment & Asset
Life-Cycle
16
• Make better decisions• Support “intentional” decision
making- from preparation- to decision making- to implementation
• Manage by Fact• Improve shareholder value
EAM: Business Intelligence
Optimizing Equipment Lifecycle: Enterprise Asset Management
17
• An out-of-the-box, performance management tool that instantly transforms transactional data from EAM into visually-depicted trends.
EAM Roadmap: Business Intelligence
Optimizing Equipment Lifecycle: Enterprise Asset Management
18
• Start with a high-level KPI
EAM Roadmap: Business Intelligence
Optimizing Equipment Lifecycle: Enterprise Asset Management
19
• Drill-down to further detail
EAM Roadmap: Business Intelligence
Optimizing Equipment Lifecycle: Enterprise Asset Management
20
• Drill-down to further detail
EAM Roadmap: Business Intelligence
Optimizing Equipment Lifecycle: Enterprise Asset Management
21
• Data can also be analyzed through cubes• September release will include mobile device
access to QAD BI data
EAM Roadmap: Business Intelligence
Optimizing Equipment Lifecycle: Enterprise Asset Management
22
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 cash
flow
• Actual vs. Budget
• Top cost center by % of budget
EAM Roadmap: Business Intelligence
Optimizing Equipment Lifecycle: Enterprise Asset Management
23
Maintenance• Top equipment by cost and
by MTBF
• Top equipment failures
• Top reason by downtime
• Planned vs. Unplanned work orders
• Planned vs. unplanned labor 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
EAM Roadmap: Business Intelligence
Optimizing Equipment Lifecycle: Enterprise Asset Management
24
• March 2011: general available (GA)• Supported versions
- 2007 SE through 2010 SE- 2007 EE through 2011 EE
QAD EAM Status
Optimizing Equipment Lifecycle: Enterprise Asset Management
25
• 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
Optimizing Equipment Lifecycle: Enterprise Asset Management
26
Metrics Affected
Optimizing Equipment Lifecycle: Enterprise Asset Management
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, best price
•- 5 to 10%
Control project costs •Manage costs within budget
•Save services
27
• Get involved in customer advisory groups• Stop by the EXPO for a demo• Ask your account manager for an EAM
Q−Scan
Next Steps
Optimizing Equipment Lifecycle: Enterprise Asset Management
28
• Bo Hagler [email protected]• Nancy Majure [email protected]
Questions & Answers
Optimizing Equipment Lifecycle: Enterprise Asset Management