Transforming Enterprise Asset Management for HISD … · (PLM305 - Managing Technical Objects) is...
Transcript of Transforming Enterprise Asset Management for HISD … · (PLM305 - Managing Technical Objects) is...
Transforming Enterprise Asset Management for HISD Construction
and Facilities Services
SAP Collaborative Value
Assessment for Houston
Independent School District
(HISD)
ENABLING ENTERPRISE VALUE
August 2, 2013
SAP CONFIDENTIAL - Page 2 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions
contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.
1. Executive Summary
2. Objectives and Challenges
3. Value Proposition
4. Next Steps
5. Appendix - Implementation Scope and Assumptions
Agenda
SAP CONFIDENTIAL - Page 3 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions
contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.
Why Does HISD Need
SAP Plant Maintenance
and Mobile
Solutions?
Construction and Facilities Services’ (CFS) maintenance and operations personnel have
issues in how they currently utilize the SAP Plant Maintenance solution
Need exists for better education and training on maintenance processes and system
capabilities for School personnel, planners, schedulers and field staff
Lack of real-time information on asset and work orders hinders ability to service assets
effectively
Field workforce need ability to review work order assignments, view task lists, pull specs &
parts lists, and create service request notifications from anywhere
How Can SAP Plant
Maintenance and Work
Manager Help?
Conduct assessment of current technician capabilities and education/training needs
Provide School and maintenance personnel with improved education and training on
processes and system functionality
Enhance maintenance infrastructure master for better planning and scheduling
Improved reporting and analysis capabilities
Establish business processes, improve employee knowledge, and build infrastructure to
support SAP Work Manager for mobile access and data entry for work orders
Provide guided input fields on mobile devices to make data entry as easy as possible
Provide workers ability to check work order assignments from field locations
What Benefits Can Be
Realized?
Top benefit areas:
Increase Work Order Capacity and Productivity
Increase Customer Service by Improving Work Order Turnaround Time
Improve First-Time Fix Rates
Eliminate Duplicate and Manual Data Entry Into ERP
Minimize Overtime Costs
Reduce total cost of ownership
Executive Summary
SAP CONFIDENTIAL - Page 4 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions
contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.
1. Executive Summary
2. Objectives and Challenges
3. Value Proposition
4. Next Steps
5. Appendix – Detailed Roadmap and Findings
Agenda
SAP CONFIDENTIAL - Page 5 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions
contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.
HISD, Like Many Organizations, Face Key
Challenges in Their Field Service Value Chains
Lack of Optimized
Inventory
Demand variability
results in volatile
inventory patterns
Lack of optimized
control “within the
four walls” results in
excessive inventory
carrying costs
High Customer
Expectations
Increasingly
sophisticated
customers expect
higher levels of
service
Increased mobility of
internal customers
means customers
demand better
service
Long Service Cycles
Lack of available
inventory to mobile
field force results in
excessive trips to
find “the right part at
the right time”
Longer service
cycles results in
fewer work order
completions per day
and increased
backlog
Inefficient Asset
Maintenance
Lack of real-time
information on asset
and work orders
hinders ability to
service assets
effectively
Excessive
“turnaround” times
that lead to lower
asset utilization
SAP CONFIDENTIAL - Page 6 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions
contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.
Top Business Challenges Impacting HISD's
Maintenance Goals and Objectives
Maintenance Work
Order Management
Maintenance infrastructure is not defined properly with functional locations and
equipment details
Lack of proper education and training related to maintenance processes and SAP
capabilities, (i.e., planner/dispatchers)
Internal HISD review of employee skill-set needed to better match to user role
requirements and education and training needs
Maintenance process and organization is reactive rather than proactive.
Currently no accurate feedback/information on where crews are and their current
activities
Separate WEB problem reporting application is used
Maintenance process needs to be refined to provide notification feedback, prevent
duplicate entry, and enhance steps to accomplish work
Lack of complete integration to Purchasing, Inventory, Human Resources, and
Financials.
Need better leverage of inventory to plan materials, assign materials, and expense
to maintenance work order
Preventive maintenance not utilized to its full extent.
Inaccurate reporting due to overall maintenance inefficiencies
Business process and resource issues are not streamlined.
Infrastructure and process deficiencies do not allow for mobile device deployment
to assist in enhancing the maintenance process, track location of field crews, and
facilitate planning, scheduling and work execution
Business Processes Pain Points
SAP CONFIDENTIAL - Page 7 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions
contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.
What Does This Mean For the HISD?
Top executive issues
How do I better manage my operations to
reduce excessive inventory and
maintenance costs?
How do I increase productivity and
efficiency while maintaining the highest
quality of service delivery?
How do I enable an increasingly mobile
workforce with the right tools to get the job
done?
SAP CONFIDENTIAL - Page 8 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions
contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.
1. Executive Summary
2. Objectives and Challenges
3. Value Proposition
4. Next Steps
5. Appendix – Detailed Roadmap and Findings
Agenda
SAP CONFIDENTIAL - Page 9 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions
contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.
Key Opportunities to Support HISD's
Maintenance Goals and Objectives
Maintenance Work
Order Management
New maintenance technician user role in Enhancement Pack (EHP) 5/6 provides
easier access to carry out daily work
Maintenance master data enhancement will incorporate the proper infrastructure to
better support maintenance activities - a classroom and virtual training class
(PLM305 - Managing Technical Objects) is available
SAP Plant Maintenance supports the complete life cycle of a work request (planning,
scheduling, dispatch, notify, work, track, complete, and report) - a classroom and
virtual training class (PLM300 - Business Processes in Plant Maintenance) is available
Integrate the existing WEB reporting application into the SAP environment with the
open interface provided through SAP’s native technology
Maintenance integration with inventory provides visibility to material availability and
lead times to release work, as well as issuing inventory at time of consumption.
Other benefits of SAP integration include:
Enterprise-wide visibility to inventory stock status
Requisitions and material reservations automatically generated to purchase from
the work order.
Single point of entry for time tracking reduces data entry and improves data
integrity
Fully integrated to financial postings for accuracy and up-to-date information
SAP Work Manager supports remote and mobile asset management and reduces
software total cost of ownership with an integrated system
Mobility solutions are integrated and not a 3rd party bolt-on that does not
communicate and enhance existing SAP infrastructure – 3rd party integration costs
are high and not timely
Areas of Opportunity How SAP Plant Maintenance and Work Manager Can Help
SAP CONFIDENTIAL - Page 10 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions
contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.
How SAP Plant Maintenance and Work Manager
Impact the Service Value Chain
Benefits
Reduce amount of trips to/from job sites to complete repairs
Cost-Efficient Service Delivery
Benefits
Reduce time it takes for a problem to be fixed
Increased satisfaction from more accurate first-time fixes
Customer Satisfaction
Optimize Inventory Utilization
Parts Logistics /
Warehousing
Enterprise
Assets
Field Service
Customer
Service
Finance /
Controlling
Benefits
Lower maintenance costs
Higher equipment uptime
Optimized Asset
Maintenance
SAP Work Manager
SAP Plant Maintenance
SAP Plant Maintenance and Work Manager Provide Insight into Enterprise Data at the
“Point of Service” to Increase Efficiency and Effectiveness
Benefits
Mobile receiving of deliveries
Mobile goods movement entry
Paperless cycle counts
Accurate inventory counts
SAP CONFIDENTIAL - Page 11 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions
contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.
Reduce Costs
Value Source
Increase
Productivity
Value of
SAP Plant
Maintenance
and Work
Manager
Realized or Expected Improvement
From SAP Mobile Apps
SAP Plant Maintenance and Work Manager
Drive Value in Multiple Areas
SAP Mobile App
• Work Manager
• Inventory Manager
Benefit Range
Eliminate Administrative Time of
Manual Paper Orders 90% - 100%
Increase Work Order Capacity 20% - 30%
Minimize Overtime Costs 40% – 60%
Reduce Inventory Carrying Costs 5% - 10%
Eliminate Manual Data Entry into ERP 90% - 100%
Reduce Spare Parts Inventory 10% - 15%
Reduce Pick Errors 25% - 50%
Improve First-Time Fix Rates 15% - 20%
Reduce Unplanned Downtime 20% - 30%
Source: Value estimates are based on SAP customer experiences, SAP Value Engineering studies,
and other industry benchmarks.
SAP CONFIDENTIAL - Page 12 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions
contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.
Achieving Value: A Proposal for Deployment
Phase 1: Stabilize Foundation Phase 2: Extend Functionality
ILLUSTRATIVE
Phase 1: Stabilize Foundation
Education and Training Conduct assessment of current technician
capabilities and education/training needs Conduct end-user education on end to end
maintenance processes Conduct training on SAP Plant Maintenance
functionality (School and Field Maintenance Personnel)
Reporting & Analytics
Implement dashboard reporting and query
tools from Business Objects for improved
maintenance reporting and analysis
Plant Maintenance Master Data
Enhance material and service master
records
Plant Maintenance
Enhance Plant Maintenance functionality
Phase 2: Extend Functionality
Mobile Work Manager Implement mobile work order
solution
Phase 1: Stabilize Foundation Phase 2: Extend Functionality
Phase 3: Continuous Improvement/Innovation
Phase 3: Continuous
Improvement/Innovation
TBD (e.g., Reliability-Centered
Maintenance)
SAP CONFIDENTIAL - Page 13 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions
contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.
Next Steps
In order to maintain the momentum of the project and accelerate the
benefits to be achieved from the SAP Plant Maintenance and Work
Manager solutions, the HISD should move forward with the following:
Approve the maintenance improvement opportunities and provide
funding to the project for the acquisition and deployment of
resources and software solutions to meet HISD,s Construction
and Facilities Management goals and objectives
Engage “experienced” certified resources to begin planning for
the deployment of the SAP solutions and realization of identified
benefits and ensure knowledge transfer to the District
Develop and implement an integrated communication plan for
change including continuous education and training, and
process improvement
SAP CONFIDENTIAL - Page 14 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions
contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.
1. Executive Summary
2. Objectives and Challenges
3. Value Proposition
4. Next Steps
5. Appendix – Detailed Roadmap and Findings
Agenda
SAP CONFIDENTIAL - Page 15 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions
contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.
Maintenance Management Roadmap
Phase Process Area Initiative SAP ModuleLicense
Required?
Implementation
Complexity/Cost
Implementation
TimelineDependencies
1 Education and
Training
Conduct assessment of current technician capabilities and education/training needs
Conduct end-user education on end to end maintenance processes
Conduct training on SAP Plant Maintenance functionality for School and field maintenance personnel
SAP Productivity
Pak by RWD
Plant
Maintenance
No Low 2-4 Months SAP Productivity
Pak by RWD
ECC 6.0 EHP 5/6
1 Reporting & Analytics Implement dashboard reporting and query tools from Business Objects for improved maintenance reporting and analysis
Xcelsius/Web
Intelligence/
BOE
Unknown Low-Moderate 2-6 Months None
1 Plant Maintenance
Master Data
Enhance material and service master records
Plant
Maintenance
No Moderate 4-6 Months ECC 6.0 EHP 5/6
1 Plant Maintenance Enhance Plant Maintenance functionality Plant
Maintenance
No Moderate 4-6 Months ECC 6.0 EHP 5/6
2 Mobile Work
Manager
Implement mobile work order solution SAP Work
Manager
Yes Moderate 4-6 Months ¹ ECC 6.0
Scope/Initiative Phase I Phase II
Education and Training
Reporting & Analytics
Plant Maintenance Master Data
Plant Maintenance
Mobile Work Manager
X
X
X
X
X
Note: The License Required estimate indicates a need for licensing of this capability. It does not contemplate adequate existing user coverage in areas where
licensing of the capability is not required.
The estimates of complexity, cost, and timeline provided in this document are based on limited knowledge of HISD operations. They are provided solely as a
rough order of magnitude for planning purposes and would need to be revised after a more detail review of operations was performed. Actual experience of HISD
may differ when more knowledge is available.
¹ Rapid-Deployment Solution exists to accelerate deployment in shorter timeframe.
SAP CONFIDENTIAL - Page 16 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions
contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.
Maintenance Management Issues & Solution
Enablers
Pain Points/Needs/Requirements Solution Enablers
Master Data issue: Maintenance Infrastructure is not defined
properly with functional locations and equipment details
Lack of proper education and training related to maintenance
processes and SAP capabilities, (i.e., planner/dispatchers)
Internal HISD review of employee skill-set needed to match to
user role requirements and education and training needs
Maintenance process and organization is reactive rather than
proactive.
Currently no accurate feedback/information on where crews are
and their current activities
Separate application (WEB) used to get maintenance requests
and problem reports from schools
Maintenance process needs to be refined to provide notification
feedback, prevent duplicate entry, and enhance steps to
accomplish work
Lack of complete integration to Purchasing, Inventory, Human
Resources, and Financials.
Need better leverage of inventory to plan materials, assign
materials, and expense to maintenance work order
Preventive maintenance not utilized to its full extent.
Inaccurate reporting due to overall maintenance inefficiencies
Business process and resource issues are not streamlined.
Infrastructure and process deficiencies do not allow for mobile
device deployment to assist in enhancing the maintenance
process, track location of field crews, and facilitate planning,
scheduling and work execution
New maintenance technician user role in Enhancement Pack
(EHP) 5/6 provides easier access to carry out daily work
Maintenance master data review will allow to incorporate
proper infrastructure thereby supporting maintenance
activities. There is both a classroom and virtual training class
PLM305 Managing Technical Objects
SAP Plant Maintenance supports the complete life cycle of a
work request (problem notification, planning, scheduling,
dispatch, notify, work, track, complete, and report). There is
both a classroom and virtual training class PLM300 Business
Processes in Plant Maintenance.
Integrate the existing WEB reporting application into the SAP
environment with the open interface that SAP provides through
its native technology
Maintenance integration with inventory provides visibility to
material availability and lead times to release work, as well as
issuing inventory at time of consumption. Other benefits of
SAP integration include:
Enterprise-wide visibility to inventory stock status
Requisitions and material reservations automatically
generated to purchase from the work order.
Single point of entry for time tracking reduces data entry
and improves data integrity
Fully integrated to financial postings for accuracy and up-to-
date information
SAP Work Manager supports remote and mobile asset
management and reduces software total cost of ownership
with an integrated system.
Mobility solutions are integrated and not a 3rd party bolt-on
that does not communicate and enhance existing SAP
infrastructure – integration costs are high and not timely