Why Your ERP System Won t Deliver Best Prac:ce Presented By! Philip Sage CMRP - CRL! Principle Reliability Engineer ARMS!
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1 Why Your ERP System Won t Deliver Best Prac:ce Presented By! Philip Sage CMRP - CRL! Principle Reliability Engineer ARMS! 1!
2 Where we will focus this presentation! MAINSTREAM + Shutdown Conferences !
3 Reliability + Excellence Framework Great Execu7on Poor Strategy Reliability + Excellence Effectiveness of Work Management Good Work Management Good Work & Reliability Management Poor Execu7on Poor Strategy Good Reliability Management Great Strategy Poor Execu7on Effectiveness of Reliability Management
4 The Reliability + Excellence Model 4! The Right Strategy The Right Work Management Strategy Development The Right Tasks Planning Performed with Low Varia7on Scheduling Analysis and Assessment Work History Work Execu7on
5 Our Agenda! ERP - What is best practice anyway?" What an ERP must be able to do to compete in todays world." How does an ERP support Maintenance and Reliability?" How do we take advantage of what an ERP can do?" How do we deliver value at lightning Speed?" How can we change at lightning Speed?" What is next on the horizon?" 5!
6 ERP! 6!
7 What is an ERP System?! Definition: Enterprise Resource Planning ERP is a business strategy and set of industrydomain-specific database applications that build customer and shareholder community value by enabling and optimizing enterprise and interenterprise collaborative operational and financial processes (Source: Gartner s Research Note SPA )
8 Enterprise Resource Planning! Key Purpose : Seamless integration of all the information flowing through a company financial and accounting, human resource information, supply chain information, and customer information.
9 ERP Modules per Implementation! Finance and Accounting 91.5% Materials Management 89.2% Production Planning 88.5% Sales Order entry 86.9% Financial Control 81.5% Sales and Distribution Logistics 75.4% Asset Management (Cash) 57.7% Quality Management 44.6% Personnel/ Human Resources 44.6% Maintenance 40.8% Reliability Engineering??.?%
10 ERP?! ERP systems support maintenance execution by storing master data and automating scheduled maintenance work orders. " ERP systems donʼt determine the best maintenance strategies, " they donʼt rapidly deploy the best strategies to every asset, and " they donʼt ensure that the right master data is structured the right way" 10!
11 ERP Function Modules! What is missing? Reliability Maint. Execu:on
12 Actual Offerings - ERP Functions! Production Planning & Control (PP)" Manufacturing Resource Planning (MRP II)" Material Requirement Planning (MRP)" Master Production Schedule (MPS)" Customer Relationship Management (CRM)" Bill of Material (BOM)" Warehouse Management (WM)" Inventory Management (IM)" Purchasing Management (VD)" Shop Floor Control (SFC)" Capacity Requirements Planning (CRP)" Cost Accounting (CA)" Finance (FI)" Product Cost (PC)" Cost Reporting/Management (FICO)" Lot Traceability (QA)" Engineering Change Control (DMS)" Repetitive Manufacturing (KANBAN)" HR Management (HR)" Plant Maintenance (PM)" Service Management (CS)" Finance Management (FI)" Purchase Order Management (PO)" Quote Management (QO)" Quality Management (QM)" Capital Project Management Project Systems (PS)" Calibration (CA)" Sales and Distribution (SD)" " 12!
13 ERP System Design Features! Features match what the market will pay for. One System fits all markets Cannot possibly be tuned for you! Blueprinting by Babies. Your blue print is only as good as you are! Customization is a 4 letter word! Doing the right thing is exceptionally difficult. MAINSTREAM + Shutdown Conferences !
14 What is Best in Class?! To be Best in Class you must manage your asset data and have asset analytics. Less than 20% of organizations regularly capture and share data about asset performance with all the parties involved, including third-party service providers. In fact, roughly 80% of organizations either gather no data at all, or they capture partial or poor quality data MAINSTREAM + Shutdown Conferences
15 Best in Class Operate Differently! 73% of best-in-class companies consistently gather and share asset data with all service and maintenance stakeholders. The combined information gives them more complete reporting and analysis capabilities so they can study maintenance costs from the highest levels to crew levels and prioritize improvement actions. Several use on-line asset performance indicators MAINSTREAM + Shutdown Conferences !
16 Best in Class Differentiate from the Rest! In addition to gathering, disseminating, and analyzing asset maintenance and performance data more effectively, bestin-class companies are also consistently superior at establishing KPIs and using the data they gather to measure their actual performance against those goals. Asset analytics Including Rpk The Reliability Performance Index now are used to predict failure before it occurs. MAINSTREAM + Shutdown Conferences !
17 Why are asset analytics important?! We need to make great decisions! How do we enable asset analytics? With great Master Data! With a Great Strategy!
18 Strategy What we know! 18!
19 Counter Measures! Preventative Maintenance" Time based Replacement" Scheduled Discard" Overhaul Calibrations Regulatory Inspections" Condition Based Maintenance" Predictive Maintenance" Vibration" Oil Analysis" Infrared Thermography" Ultra Sound" Motor Circuit Analysis" Visual Inspection" TPM" Operator Driven Reliability" LEAN" Operational Excellence" Maintenance Rounds & Checks" Prognostics" Trend Analysis" Machine Performance" Rpk - Reliability Performance Index" 19!
20 Risk Decisions! RTF 20% NRL?% Preventative Maintenance" Time based Replacement" Scheduled Discard" Overhaul Calibrations Regulatory Inspections" Condition Based Maintenance" Predictive Maintenance" Vibration" Oil Analysis" Infrared Thermography" Ultra Sound" Motor Circuit Analysis" Visual Inspection" TPM" Operator Driven Reliability" LEAN" Operational Excellence" Maintenance Rounds & Checks" Prognostics" Trend Analysis" Machine Performance" Rpk - Reliability Performance Index" " Run to Failure" Not Cost Effective" Minimal Impact" " Not Reasonably Likely" Not expected to occur more than once in 10 years" "" 20!
21 How the ERP should be designed (1:1)! 21!
22 How ERP is really designed!! Preventative Maintenance" Time based Replacement" Scheduled Discard" Overhaul Calibrations Regulatory Inspections" " Condition Based Maintenance" Predictive Maintenance?" RTF 20% NRL?% " " " " RTF?" " " " " NRL?" 22!
23 What do we do? Develop an Excellence Strategy!! Action plan to achieve mission Shows how the reliability excellence mission will be achieved! Design in a way to succeed! Inside the functional areas have focused strategies
24 Developing the Right Focus for Strategy Development! The Right maintenance on the Right systems at the Right time by the Right people doing work for the Right reasons Strategy Development What is not involved with a bottleneck? What is not critical? Exactly what tasks are required to meet the business goals? 24!
25 The Seven Questions of RCM! 1. What are the functions of the asset? 2. What functional failures are likely to occur? 3. What causes each functional failure? 4. What happens when each failure occurs? 5. In what way does each failure matter? 6. What should be done to predict or prevent each failure? 7. What should be done if a suitable proactive task cannot be found? What purpose does the equipment serve? What problems can occur? What failure modes cause the problems? What are the effects of the failure? Safety, Env, Op, $ How significant are the failures? Severity x Rate What predictive or preventive maintenance can be done? What s the default action if maintenance is not effective? Run to Failure (RTF) Or Redesign 25!
26 Determining the right task! Strategy Development Understanding Failure Behavior Is Important In Determining the Type Of Maintenance Task/s That Is/are Applicable 26!
27 Understanding Glass Ceilings! 27!
28 Recall the RCM Logic! Mastering SAP Plant Maintenance 28!
29 Traditional View of Maintenance Management! For things that wear out we still do a PM: If we can identify the age at which wear out became probable, we can simply remove the asset from service prior to that date, typically Wear Out - Light Bulb #1 Failure Rate with some margin for error called a Factor for Safety parameter Weibull Median rank η: β: γ: ρ: ε: Failure Rate PM Here B10: B15: B20: P0: 0% Distribution rate Regionalised rate Time Mastering SAP Plant Maintenance 29!
30 Optimization! Cost Total Maintenance Cost Preventive Maintenance Cost Breakdown Cost Optimal
31 Match what we know to what we have!! 31!
32 A basic problem definition! CMMS can do!" " " CMMS most often cannot do!" 32!
33 What ERP must do! 33!
34 Strategy Road Map! Why we must have a Strategy Road Map, other wise any road will take us there. 1. Vision and Policy for Standardization of Master Data. 2. Naming Conventions for Master Data types. 3. Planner Group Alignment and Best Practice Elements. 4. Maintenance Plans, Strategies and Maintenance Item Guidelines 5. Standardization of Assemblies and Bills of Materials to support planning Best Practices 1. Linking Spare parts with Best Practices 6. The Document Management System 7. Preparation for Planning and Scheduling
35 Why ERP is do difficult!! 35!
36 Why Master Data becomes so important!! Equipment Class Cost Failure Code Availability Frequency Func:onal Loca:on MAINSTREAM + Shutdown Conferences !
37 Master Data Standardization! Standardizing asset data and ensuring it is structured and fully indexed correctly is essential. Good structure also involves integration of naming conventions between asset management, spares, work packages, projects, and reliability strategy setting tools. With good data available a number of improvement techniques can be applied to reduce costs and in many cases increase capacity and or availability. MAINSTREAM + Shutdown Conferences
38 First get the Master Data working!! Equipment Class Cost Failure Code Availability Frequency Func:onal Loca:on MAINSTREAM + Shutdown Conferences !
39 Put your finger on the pulse of your asset!
40 Itʼs a people process! It is a Data Process!! 40!
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