SAP Asset Management

Digital Twin and Strategic Asset

Management

Dean Fitt, Solution Manager, SAP SE

30 April 2018

PUBLIC
SAP’s Vision for Asset Management

Full Digital Representation of Assets along their Lifecycle delivering an embedded,

collaborative and real-time set of Next Generation Processes and Systems Software Electronics Mechanics Services

Share & Collaborate Real Time Insights

natively

Real Time
Collaborative
Unified data and processes with Connected Optimization via
Scalable
PLM, Manufacturing and Service Prediction

Base for Industry

Next gen tech Machine Learning,
Extensions Cloud Platform Digital Disruption Block chain, 3D printing
Based Adaptable

Partner ecosystem
Opportunity Mobile First / Fiori UX

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Global Asset Management Trends
Transformation to Smart Digital Connected Assets

Yesterday Now
Pay per use

Selling equipment Pay per use / Equipment as a Service

Untrusted & disparate Asset information Collaborative Single source of truth
Limited analytical capabilities Real Time Analytics with Simulation Digital Twin

Reactive Maintenance Prescriptive maintenance

Disconnected Systems and Lifecycle Closed loop Product and Asset Lifecycle
Standalone and Isolated Assets Connected and Smart Digital Twins
Asset criticality based maintenance strategy 3D visualization
Traditional OPEX-based planning
Paper-based work instructions Smart work instructions with 3D visualizations
Optimized for Physical Structure Mechatronics/Software in Products/Assets

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The Network of Digital Twins
Digital, physical, conditional, commercial

Manufacturer Operator

.
Business Intelligent
Transactions Insights
Product intelligence Asset intelligence
Collaborative R&D, engineering and Asset Management, predictive
manufacturing maintenance and service

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SAP Connected Assets Portfolio
Networked best-of-breed applications providing high end-to-end business value for key stakeholders

An architecture built for next generation

Enterprise Asset Management
Digital Core: System of Digital Innovation: System of Digital Core
Record Intelligence Corrective, emergency and preventive maintenance planning &
execution via notification and order processing in an integrated
system

Asset Digital Intelligence

Strategy & • Asset Central – Provides a re-usable asset registry across IoT
Performance applications for seamless integration and data consistency
Management
Maintenance Predictive Predictive • SAP Asset Intelligence Network
Management Maintenance Engineering Collaborative asset management bringing key stakeholders
& Service Asset Insights (operator, OEM, service providers, …) together in a digital
Central ecosystem solving complex execution, predictive and planning
Asset activities with centrally managed asset information
Integration Intelligence
Network
• SAP Predictive Maintenance and Service
Enables enhanced predictive maintenance techniques to
S/4HANA
optimize EAM business processes for greater asset availability
&
and reduced cost
ECC
• SAP Asset Strategy and Performance Management
SAP Leonardo IoT Define and plan maintenance execution strategies holistically
for Asset Management (insight/foresight; insights from network) for improved
performance
• SAP Predictive Engineering Insights
Model and visualize the physical structure of an asset for real-
time calculation of stress and fatigue to drive predictions
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SAP Connected Assets – 3 Complementary Digital Twins

SAP Asset Intelligence SAP Predictive SAP Digital Twin for

Network Maintenance Structural Dynamics

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SAP Asset Intelligence Network
Bringing together Business partners

Insurer
Models / Service
Equipment
Provider
Manufacturer

Operator
Regulator

SAP Asset Intelligence Network will provide a global registry of equipment; built and shared between multiple
business partners and used across the industry by all stakeholders. This will enable new collaborative business
models resulting in true Operational Excellence.
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SAP Asset Intelligence Network
Enabling collaborative asset management
Combined together
Apps for collaborative processing e.g. equipment to deliver
Apps lookup, announcements, service bulletins,
performance improvement, spare parts
management, obsolescence management

A cloud portal of standardized content that defines

Content and documents models and equipment, shared
and stored, for a consistent definition between
business partners.

SAP Asset
Network
A secure network to connect multiple business
partners for inter and intra company information
Intelligence
exchange and collaboration. Network

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 SAP Asset Intelligence Network
Collaboration between manufacturers, service provider, and operators
Apps

Obsolescence Performance Equipment as a Work Commissioning &

Job Instructions Announcements Spare Parts
Management Improvement Service Collaboration Handover

Nameplate info
Service bulletin receipt
Maintenance strategy
Spare Parts Service bulletin processed
Service bulletins
Usage information
Failure modes
Content

Recalls Installation information

Bills of Materials Failure / incident data
Designs and drawings
Design improvements Design recommendations

Sensor definition Risks and controls

Operating instructions
Measurement documents
Maint instructions
Safety instructions Telemetry
Network

End to end Firmware process Share Notification/Work Order Info

Manufacturer Operator
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Foundation for a successful, global, single network of assets
All business partners need to talk a common language
Based on industry standards e.g. ISO14224, ISO15926, ecl@ss, ….

Class
? Class ! Class

Subclass Subclass Subclass

Manufacturer Operator Service Provider

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 A Native Collaboration platform
within companies and between companies
Manufacturer Operator
SAP Asset Intelligence Network

E-23-8384
Model / Reference Equipment
Service Provider

Digital Twin/Equipment

P78-324 P78-453 P78-820 P78-912

Physical Equipment / CMMS

P78-324 P78-453 P78-820 P78-912

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SAP Asset Intelligence Network
Use Case at BASF Ludwigshafen
200 production plants connected to each
other by over 2,850 km of pipelines &
over 230 km of rail.

The goal is to establish a fully integrated

and centrally managed, single source
asset information repository, ensuring:

• Data consistency and availability

• Efficiency of engineering and

maintenance processes throughout
the asset lifecycle.

“A more integrated digital approach with our business partners would allow us to easily access the
latest and current information when and where needed, leading to quicker and better decision
making and in consequence higher asset effectiveness.”
Link
Dr. Andreas Wernsdörfer, Senior Vice President, Technical Site Services Ludwigshafen, BASF.
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SAP Asset Intelligence Network
Applications
Admin Apps
Business Partners
Authorizations
Templates
..

Master Data Apps

Models
Equipment
Locations
Spare Parts
Documents
Instructions
Requests
Smart Matcher
…

Process Apps
Performance Improvement
Obsolescence Report
Error Code Lookup
..

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SAP Asset Intelligence Network
Equipment: Features
Information
– Highlights
– Attributes
– Model Information
– Installation Information
– Life Cycle Information
Structure and Parts
– Structure
– Spare Parts
Documentation
– Documents
– Instructions
– Announcements
Monitoring
– Measuring Points
– Error Codes
– Improvement Cases
Time Line
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SAP Asset
SAP Asset Intelligence
Intelligence Network
Network
Application – Obsolescence
Obsolescence Report
Management

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SAP EAM Plant Maintenance
Integrated Objects
SAP AIN

Model Equipment

Header Information

Announcements
Object Creation

Hierarchies

Documents

Work Orders
Attributes
Link
SAP EAM

Equipment / Functional Locations Equipment only

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Asset Strategy and Performance
Management
Asset Strategy and Performance
Asset management strategy is influenced by different aspects

Overall equipment effectiveness

Maximize asset performance
Return on assets

Unplanned outages

Drive safe operations Annual OSHA related incidents

Recordable accident frequency rate

Annual service and maintenance cost

Reduce costs
Planned maintenance budget vs. actual cost
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Asset Strategies
What are the options?
The prime objective of an asset strategy is to achieve the optimum balance between asset
performance (which could include also safety and environmental integrity), availability and
the cost of maintenance.

Asset strategies:
• Preventive (time or cycle and based on a “useful life”)
• On-Condition
• Predictive
• Failure Finding (risk-based interval)
and if none of the above then defaulting to:
• Run to Failure (“Run to Repair”)
• Modification (which may also mean accepting degraded performance)

The results of your Asset Strategy (whether intentional or not!) will dictate how you care for
your assets and is measured by KPIs for performance (inc. safety and environmental),
availability and cost.
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Selecting the correct strategy
Reliability Methodologies & Technologies
Maintenance Strategy Development
▪ Reliability Centered Maintenance (RCM)
▪ Failure Modes and Effects (Criticality) Analysis (FME(C)A)
▪ Structured Review (PM Review)
▪ Root Cause Analysis (RCA)
▪ …

Reliability Analytics
▪ Weibull Analysis
▪ System RAM Modeling
▪ Growth Analysis
▪ …

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SAP Asset Strategy and Performance Management
Developing a Maintenance Strategy

Manage Asset Information

Manage Locations, Equipment, Groups, Systems, Failure
Modes…

Asset Risk & Criticality Assessment

Rating assets according to criticality for the business

Application of Appropriate Methodology

RCM* FMEA PM Review*

Reliability-Centered Maintenance Failure Modes and Effects Analysis Preventive Maintenance Review
Evaluating threats to safety, Analyze component failures and Evaluate the current maintenance
operations, and maintenance associated results on operations plans and their effectiveness

Maintenance Strategy Implementation*

Create/Change/Delete Maintenance Plans, Task Lists, Inspection, Condition Based Maintenance, Predictive Maintenance, Run to Fail

S/4HANA and SAP ERP

Maintenance Strategy Execution PdMS Asset Management Monitoring

Perform Inspections, Condition Monitoring,
Analyze Cost and Performance
Predictive Maintenance, …
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*planned
Equipment List
Showing Risk, Criticality and Recommended Action

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Equipment: Risk and Criticality Information

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Equipment: Review Highlight Cards

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Equipment: Review Risk & Criticality Matrix

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Equipment: Review Risk Assessments and Questionnaire

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FMEA Assessment: Review Assessment – Maintenance Strategy

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SAP Asset Predictive Maintenance and
Service
 Maintenance Journey & Asset Optimization
Where are maintenance and service heading?

Asset Collaboration across Supply Chain

Condition-
Reactive Preventive
based Predictive

Wait until a Perform Continuously Apply advanced Digital Twin

machine fails maintenance at observe the status analytics of operational
and then regular intervals, of assets and react and business data to
undertake based on to predefined help determine the
maintenance. observations of conditions and condition of specific
abnormalities. events. equipment and predict
when to perform
maintenance.

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Technology is changing our approach to maintenance

*Use of Maintenance Strategy – Today

Run to Failure Preventive On-Condition Predictive

*Use of Maintenance Strategy – Future

Run to Failure Preventive On-Condition Predictive

The Internet of Things is leading to Although still relevant, preventive The goal is to
increased use of on-condition and maintenance typically results in increase our use of
predictive maintenance strategies over-maintaining assets and high advanced maintenance
cost strategies and reduce
reactive maintenance
events
*Proportion of maintenance strategies are for illustration purposes only and will vary based on many factors
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SAP Predictive Maintenance and Service
From Sensor to Insight to Outcome

Sensor Data Insight Action Outcome

Connected assets IT/OT Convergence Data analysis Maintenance activities Business Value

• Big Data ingestion • Root cause analysis • Prioritized maintenance • Customer experience
• Onboarding and service activities
• Connectivity • Big Data infrastructure • Asset health monitoring • Increased quality
• Optimized warranty
• Device management • Merging sensor data • Machine learning and spare parts • Lower costs
with business management
• Security • Anomaly detection • Operational efficiency
information • Prescriptive
• Triggering of corrective Maintenance • R&D effectiveness
actions
• Quality improvements • Material procurement

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SAP Predictive Maintenance and Service
Solution components and value drivers
Logistics & Maintenance  Enables a data science driven
Actions Execution Systems Business User approach to condition monitoring
 Flexible extension concept for
Insights SAP Predictive Maintenance and Service Domain Expert customers to build industry or
customer specific models and
Explorer Details analytics

Analysis Tools Catalog  A scalable Machine Learning

Engine that drives data science
insights into our business
Alerts Machine Learning Engine Data Scientist processes
 Flexible visualizations via Analysis
Raw SAP
SAPLeonardo IoTFoundation
Leonardo Foundation
Data SAP Leonardo IoT Edge Data Manager Tools Catalog
SAP Leonardo for Edge Computing
 End-to-end process integration…
Alert, Discover, Remedy
Machine Data Business Data

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SAP Predictive Maintenance and Service
System and component level visualizations

Logistics & Maintenance Asset Health Control Center

Execution Systems

SAP Predictive Maintenance and Service

Asset Health Asset Health
Control Center Fact Sheet

Insight Provider Catalog

Machine Learning Engine Asset Health Fact Sheet

SAP Leonardo
LeonardoFoundation
Foundation
SAP Leonardo
SAP Leonardo for
forEdge
EdgeComputing
Computing

Machine Data Business Data

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 Optimization of maintenance and service
Bring business context to your operational data

Predictive Maintenance IT and OT Asset health Fault pattern Machine health

connectivity control center recognition prediction
and Service

Order status
Increase effectiveness with
valuable insights from operational
systems

Create maintenance Execute order

Business Systems or service order
Schedule order
on mobile device
Visual support

Increase efficiency with business

processes for maintenance and
service

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SAP Predictive Maintenance and Service
Customer Example: Train Operator

Company Process and Technology Innovation

The company owns and operates a fleet of around 2,000
electrotrains, 2,000 locomotives, and 30,000 coaches and wagons.
Situation: Some 40% of maintenance effort is for corrective
maintenance. Maintenance of rolling stock has been identified as
one aspect of the digital transformation.

Solution
• Custom solution on SAP HANA software
• Data fusion between IT and OT data
• Multidimensional description of assets
• Remote train diagnostics Benefits
• Engineering rules and predictive models • Higher asset availability, leading to greater
• Indicator-based planning passenger satisfaction
• Dynamic optimization of maintenance schedules • Less effort for corrective maintenance

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SAP Predictive Maintenance and Service
Customer Example: Compressor manufacturer

Company Process and Technology Innovation

One of the largest providers of compressed air systems and
compressed air consulting services. Predictive Maintenance and Service
Situation: Changed the business model from selling compressors IT and OT
connectivity
Asset health
control center
Fault pattern
recognition
Machine health
prediction
to selling compressed air

Order status
Create maintenance Execute order
Schedule order Visual support
or service order on mobile device
Solution
Business Systems
• Compressors equipped with sensors
• SAP Predictive Maintenance and Service
solution with machine health fact sheet
Benefits
• SAP HANA software
• SAP Customer Relationship Management • IoT as an enabler for the new business model
(SAP CRM) application: • Improved availability of compressor stations
Service on SAP HANA • Move from unplanned to planned maintenance

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SAP Predictive Engineering Insights
Predictive Engineering Insights

Enable digital insights of industrial assets

based on real-time and predictive
engineering analysis

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Value and ROI examples
SAP Predictive Engineering Insights

Use Case Offshore 6MW

Value Proposition*
Assumed power 26280
production: MWh/year Lifetime extension
(50%idle, 50% at capacity)
A lifetime extension of 1 year will
Energy price 50€/MWh cover the lifetime cost for the
Dec ‘17, N2EX indicator monitoring solution and lead to one
additional year of cash-flow.
Turn-over 1 314 k€/year
Maintenance 8€/MWh Efficiency Increase
cost An efficiency increase of 0.75% will
cover the subscription fee
Life time: 20 years
Maintenance Cost Reduction
Assumed Asset 15%
profit margin A 5% cost reduction due to fewer
and more efficient maintenance
Stipulated 10k€/year operations will cover the
subscription fee subscription fee

*The examples above are based on no combination effects. In real life synergies can be expected.

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Product Components
SAP Predictive Engineering Insights

Maintenance Execution Systems

FEDEM (Finite Element Dynamics in Elastic Mechanisms)
The FEDEM code is a very quick and advanced Finite Element
Analysis (FEA) code, perfectly suited for IoT applications
SAP Predictive Engineering Insights

FEA in real-time
Features

Vibrational Structural Finite Element Analysis is a standard engineering

Diagnostics Behavior
methodology for calculating forces and stresses in structures
of any kind. The methodology is typically used in design. SAP
Predictive Engineering Insights enables it to run in real time
Foundation

on the cloud, thus linking design and operations.

Machine Fedem
Learning Simulation
Additional features
The FEDEM solver includes effects of hydro- and
aerodynamics, soil stiffness and advanced external forces. It
even includes the effect of control systems (hydraulic,
pneumatic and the control logic behind it.
SAP Data Hub on SAP Cloud Platform

Sensor Data Business Data

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Product Components
SAP Predictive Engineering Insights

Insights (What is happening now)

Hindsight ▪ degradation of performance due to structural
▪ record of structural loading (accumulated fatigue failure
damage) ▪ Insights: Stresses, strains, forces (axial, shear),
▪ overview and counting of extreme events and bending moments, torque, oscillations, vibrations,
fatigue (used/remaining lifetime) modal analysis (Fourier-transformations)
▪ verification of design methods

hindsight insight foresight

Simulation of different options

Foresight (Simulation & Prediction)

▪ simulation of proposed extended operation
scenarios: Side steps, extended testing,
▪ evaluation of structural loading as a
consequence of a control decision

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Product Components
SAP Predictive Engineering Insights

Maintenance Execution Systems

SAP Predictive Engineering Insights

Features

Vibrational Structural
Diagnostics Behavior
Foundation

Machine Fedem
Learning Simulation

SAP Data Hub on SAP Cloud Platform

Sensor Data Business Data

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Product Components
SAP Predictive Engineering Insights

Maintenance Execution Systems

SAP Predictive Engineering Insights

Features

Vibrational Structural
Diagnostics Behavior
Foundation

Machine Fedem
Learning Simulation

SAP Data Hub on SAP Cloud Platform

Sensor Data Business Data

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Customer Examples
SAP Predictive Engineering Insights

Company and Situation

Arctic Wind operates the northernmost wind farm in the
world. The farm consists of 16 turbines built in 2003 and due
to the remote location, maintenance inspections are
challenging and at times even impossible.

Scenario
• Problem: Lack of engineering insights for better decision
support in operations and maintenance
• Solution: Real-time engineering simulation based on
sensor-feeds and a Finite Element Solver

Benefits
• Maintenance cost reduction through predictive qualities
• Lifetime extension through a full load history
• Improved operational efficiency

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Getting Further Information www.sap.com/eam

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Thank you.