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Mark Gibbison SAP UK Industry Principal Local Government, Health and Higher Education
• • • • • • What are you dealing with Effective Asset Management Potential for Cost Savings Typical Pain Points Enterprise Asset Management Drivers and Benefits
What are you dealing with • Local authorities in Scotland control land. property. plant and equipment worth an estimated £18 billion • Constitutes the second highest cost on revenue budgets after employee expenses • Improvement in the strategic and operational management of capital assets could have a real impact on financial resources • Efficiencies and options for reinvestment .
Enterprise Asset Management Pain Points Typical Pain Points Points Capital Expenditure Expenditure Key Observations Disconnected systems not linking critical data between design and purchasing costs between design and purchasing costs Lack of software tools that would reduce design time and validate proper equipment time and validate proper equipment selection Lack of data. refurbish or replace equipment repair. Not knowing what the life of equipment is and therefore full project equipment is and therefore full project life cycle costs costs Incomplete Asset Registers Unknown Value of Assets Unknown condition of assets Limited visibility of depreciation Lack of visibility of operation data including maintenance costs maintenance costs Not able to accurately determining whether to repair. refurbish or replace equipment Asset Value/Condition Value/Condition Operating Expenditure Expenditure .
data Health. HR. inadequate planning and scheduling data of personnel and maintenance activities Lack of consistency and data transparency across the company Lack of data auditability Lack of central data source for health and safety Lack of integration with employee. Safety and Environmental (HS&E) Performance .Enterprise Asset Management Pain Points (Continued) Typical Pain Points Asset Utilisation Key Observations Lack of timely and accurate preventative maintenance data Poor.
Enterprise Asset Management . . . An Evolution Computerized Maintenance Management Systems Asset Registers Asset Valuations Asset Maintenance Schedules Procurement and Inventory Full Enterprise Asset Management Human Resources Time and Payroll Skills Management Inspection and Calibration Asset Condition Monitoring Mobile Inspection Project Management Core Financials Financial Optimisation Capital Investment Planning Redeployment/Disposal Alignment with Business Strategy .
Enterprise Asset Management Enterprise Looks at more than one plant. and cost to achieve maintenance excellence Looks at maintenance in a business context to drive company profits . but is flexible enough to accommodate local variations Uses standard business practices and KPI's Focuses on assets and optimization. not just on maintenance Optimizes equipment lifecycle decisions Asset Management Balances performance. risk.
” Terry Wireman. 2004 .EAM – Potential for Cost Savings Maintenance Cost Escalation in the US 2000 Key Observations 1800 1600 1400 1200 1000 800 600 400 200 0 1979 1990 2000 Maintenance costs have risen 10-15% per year for the past 25 years Total maintenance spend is over $2 trillion Approximately one third of the total maintenance spend is unnecessary Maintenance workers spend fewer than 4 hours per day performing hands-on work USD in Billions Necessary Wasted Downtime costs from lost production outweigh direct maintenance costs by a ratio of 4:1 Source: “Benchmarking Best Practices in Maintenance Management.
3% 26. 60 50 % of respondents 40 30 20 10 0 65.5% 53.2% Source: Aberdeen Research. leaving significant untapped opportunity to save operating costs….organisations are not thoroughly tracking some of their most important maintenance activities. 2003 .6% 45. Enterprise Asset Management Benchmarking Report.6% 49.2% 35.6% 26.EAM – Potential for Cost Savings Asset Management Activity Tracking 70 ….
Enterprise Asset Management Business Drivers Improve visibility and control over expenditures Increase asset productivity and speed up repair cycles Drive continuous improvement through Analytics .
Asset Maintenance MRO Procurement & Inventory Human Resources Inspection & Calibration Asset Health Monitoring RFID and Mobile Devices A complex business process Project Management Materials Requirements Planning Core Financials Financial Optimization & Reliability Reporting . . .Enterprise Asset Management .
EAM – A Complex Business Process Asset Maintenance MRO Procurement & Inventory Human Resources Inspection & Calibration Enterprise Asset Management is a complex operation involving multiple processes. and business partners… Asset Health Monitoring RFID and Mobile Devices Project Management Materials Requirements Planning Core Financials Financial Optimization & Reliability Reporting . departments.
.EAM – A Complex Business Process …… requires a complete business solution for all the important facets of your Enterprise Asset Management operations….. .
and composition platform . . application.EAM – A Complex Business Process Middleware Middleware …middleware technology and Enterprise Services Architecture provide an open integration. . .
.EAM – A Complex Business Process Enterprise Systems Enterprise Systems Middleware 3rd Party Systems Legacy Systems 3rd Party Systems . endto-end Enterprise Asset Management solution. . enabling the only completely integrated. Legacy Systems .
. . Design & Specify Business planning Investment management Collaborative specification and design Maintenance engineering Interfacing CAD systems Project management Maintenance cost planning .An EAM should Support .
An EAM should Support . . . Procure & Build Supplier qualification and candidate selection Bidding and contract management Procurement process Document management Project management Collaborative construction Project and investment controlling .
An EAM should Support . Operate & Maintain Asset Register Financial Integration Preventive and predictive maintenance Maintenance planning and scheduling Work order management Mobile asset management and RFID Contractor management MRO and services procurement Work clearance management Shutdown planning Interfacing GIS and SCADA . . .
. Decommission & Dispose Asset transfer and disposal Collaborative disposal management Document management Project management Waste management Asset compliance Asset re-marketing .An EAM should Support . .
. Collaborate Design collaboration Collaborative project management Business partner web portals Analyze Integrated asset accounting Asset and maintenance reporting Damage analysis Spend and supplier performance analytics Budget tracking Optimize Asset performance management Maintenance cost planning Reliability-centered maintenance Predictive condition monitoring Operator dashboards Underpin Corporate Business Strategy .. .and Give You the Ability to ..
Application. and Asset Health Monitoring RFID and Mobile Devices 3rd Party Systems Composition Platform Materials Project Requirements Management Planning Core Financials Financial Optimization & Reliability Reporting Legacy Systems .A Complete Enterprise Asset Management Solution Asset Maintenance MRO Procurement & Inventory Enterprise Systems Human Resources Inspection & Calibration Middleware Open Integration.
Enterprise Asset Management Differentiators Covers all aspects of an asset’s complete lifecycle. including the Complete Solution needs of the maintenance organization…and much more Scalable Solution Supports local plant views while covering the enterprise’s entire asset portfolio Corporate Solution Enables common business practices across the enterprise. with the ability to perform global inventory checks Adaptive Solution Adapts with your business. fueling growth and empowering improved maintenance and reliability .
. .An Adaptive Business Network …enables planning and execution of an optimal enterprise asset management strategy . .
at the same time empowering you to sense and respond to changes in your business strategy. creating an adaptive and responsive business network. .An Adaptive Business Network . . .
” Terry Wireman.Integrated Enterprise Asset Management – Paybacks Tangible Benefits Increased planned maintenance Reduced emergency work Reduction on excess inventory Improved asset availability Increased maintenance productivity Average improvement 78% 31% 29% 17% 29% Source: “Benchmarking Best Practices in Maintenance Management. 2004 .
Summary • Asset Management is a Corporate issue • Best addressed by an Enterprise Solution • Asset Management Strategy underpins Business and Financial Strategies • 0.1% Saving on £18billion bottom line …….? .
Health and Higher Education .Enterprise Asset Management Mark Gibbison SAP UK Industry Principal Local Government.