MASTER DATA THE BACKBONE OF A SUCCESSFUL COMPUTERISED MAINTENANCE MANAGEMENT SYSTEM. KEYWORDS: Master Data, Maintenance, ERP, CMMS, SAP.

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1 MASTER DATA THE BACKBONE OF A SUCCESSFUL COMPUTERISED MAINTENANCE MANAGEMENT SYSTEM By I LETIZIA, K JOYCE Mackay Sugar Co-operative Association Limited [email protected] KEYWORDS: Master Data, Maintenance, ERP, CMMS, SAP. Abstract IN 2007, MACKAY Sugar implemented a SAP enterprise resource planning (ERP) solution for its business systems. The SAP Plant Maintenance (PM) module was selected to perform the maintenance management function. The task of developing the system s master data was seen as critical for the successful implementation of this computerised maintenance management system (CMMS). Correct master data is essential to be able to identify, track, trigger, plan and schedule maintenance work on equipment. This paper defines master data and outlines some of the issues that need to be addressed when formulating the strategies for developing master data. The paper concludes by reinforcing that master data is a journey, not simply a once-off project or task. It needs to be reviewed, refined and updated regularly to remain useful and enable the maximum benefits to be extracted from investing in a CMMS. Introduction In 1991, Mackay Sugar implemented CSR's then VAX- based Maintenance System at its four factories. This application was mainly concerned with budgeting and cost control for the maintenance of factory plant items. It revolved around Plant Item Codes (PICs) which were assigned to groups of equipment, and dealt with maintenance tasks performed on the items of plant. The system did a good job of capturing cost history. However, work history was less comprehensive, relying to a large extent on text input by users. In 1995, an Application Parts Listing System (APLS) was developed to allow a Bill of Materials (BOM) to be recorded for plant items. The APLS linked the Maintenance System through the Plant Item Codes to the Inventory System through stock codes on spare parts and materials, enabling the user to display the parts breakdown for a plant item and the level of stock on hand for parts. However, while the APLS could access data from the Maintenance and Inventory Systems, it operated independently and maintenance personnel were not able to requisition the required parts and materials directly from the APLS. Another major drawback of the system was that only about 30 percent of the spare parts were catalogued in the Inventory System. The other 70 percent of parts were identified by manufacturer's description and part number and had to be purchased outside the Inventory System. 477

2 In March 2003, the commencement of the alliance between Mackay Sugar and Transfield Services brought with it the implementation of Transfield's SAP business system. Unfortunately, the standard Transfield system was configured to use the Customer Service (CS) module and not the Plant Maintenance (PM) module. The CS module is configured to manage facilities maintenance where the work is typically carried out by a contractor. The PM module has additional functionality that better suits a plant intensive business such as a sugar mill where work is executed in-house. In 2007, Mackay Sugar implemented SAP as the enterprise resource planning (ERP) solution for its business systems. The scope of the implementation was limited to the commercial systems that had been previously hosted by Transfield Services. These included maintenance management, general ledger and cost accounting, accounts payable, purchasing, inventory, payroll and human resource management. SAP version ECC6.0 was chosen for the implementation. The SAP Plant Maintenance (PM) module was selected to perform the maintenance management function. The task of developing the system s master data was seen as critical for the successful implementation of this computerised maintenance management system (CMMS). Correct master data is essential to be able to identify, track, trigger, plan and schedule maintenance work on equipment. This paper defines master data and outlines some of the issues that need to be addressed when formulating strategies for developing master data. Defining master data Master data is a generic term that refers to the data structure behind any computerised maintenance management system. Skriletz (2007a) proposes, Master data is the official data representation of the real entities that are part of the business and where real objects are those that physically exist in the world. The components of master data are dependant on the nature of the business. For example, the master data for a plant intensive business includes plant structure, equipment details, spare parts details and maintenance practices. The master data for a business focused on sales and distribution includes customer details and warehouse storage and inventory information. Regardless of the exact components of the master data, one thing is common: the correct identification of the master data is essential for the business to maximise the effectiveness of its ERP. At Mackay Sugar, data relating to master data is traditionally stored in many locations, on many computers, in many forms, databases, spreadsheets, old VAX system, APL system and, of course, in people s heads. Mackay Sugar has made a business decision that the SAP system is to be the one-stop-shop for all maintenance related data. SAP terminology In SAP, physical assets are referred to as technical objects. In order for a CMMS to operate efficiently, it is necessary to structure these technical objects (PM master data) and organise them hierarchically. Stengl and Ematinger (2001) list the advantages of structuring as follows: 478

3 it reduces the outlay for managing technical objects; it simplifies maintenance processing; it reduces the outlay involved in data entry during maintenance processing; it improves targeting, comprehensiveness and the speed with which plant maintenance data is analysed. Stengl and Ematinger (2001) stress the importance of not underestimating the length of the planning phase required for structuring the technical objects. It is necessary to consider very carefully the comparative advantages and disadvantages of every structuring approach. SAP technical objects include functional locations, equipments, assemblies and materials. Stengl and Ematinger (2001) define functional locations as elements in a technical structure. Functional locations are created hierarchically and structured according to functional, process-based or spatial criteria. An item of equipment is an individual, physical object that is to be maintained as an autonomous unit. Equipment can be installed at and removed from functional locations. If, in the event of damage, an object is replaced and not repaired, then it should be mapped as a material or an assembly. Developing the master data structure The implementation of Mackay Sugar's own SAP system provided an opportunity for the maintenance department to redesign the system s master data structure to better suit the business needs. The aims of the project were to develop: a logical hierarchical system for identifying functional locations and equipment within SAP a system that provides the ability for single point reporting of maintenance costs for equipment groups a system that provides the ability for single point reporting on maintenance costs with processes and systems across Mackay Sugar. The new functional location structure for Mackay Sugar is based around the philosophy of systems and services within the overall process of sugar production. Each factory process or system is defined by the point at which the primary product is received to the point where it is delivered to the next system. For example, the Weighing and Feeding System receives a primary product of binned cane and delivers shredded fibre to the next system via several sub-systems. Systems tend to be in one geographical area, clearly identified by the process carried out in that area. Although the systems approach can be successfully applied to true process areas of the factory, there is also a need for service-based functional locations where the equipment resides in various parts of the factory. For example, Steam Generation and Distribution includes plant throughout the factory. For services, a cut off is defined where the main service ends and an individual system begins. For example, the Milling System includes a Steam Sub-System ensuring that reporting for the Milling area will include the costs associated with maintaining all equipment from the HP steam isolation valves through to the turbines and on to the LP steam isolation valves. 479

4 In deciding on the structure of sub-systems required in the SAP hierarchy, the following points were considered: Maintenance costs should roll up so that at any level in the structure, the total cost at that level includes the costs for every level below. A fairly flat structure, as existed in Mackay Sugar s VAX system limited the user s ability to report on groups of related equipment without significant manual effort. For example, to obtain the maintenance costs for a mill boiler required the addition of about a dozen individual costs. A deep structure of multiple layers improves the user s ability to group plant together for reporting purposes but makes it more difficult to for users to find specific equipment thus reducing the accuracy of the data contained in the system. A deep structure also makes for long and complicated functional location codes. Technical object coding and naming conventions During the master data development process, attempts were made to research standard naming conventions that could be applied to either the functional location coding or the equipment naming terminology to be used by Mackay Sugar. Very little information was found that could be directly used from Australian Standards or any international standards. Feedback from the SAP consultants engaged by Mackay Sugar suggested that, in their experience, each site tended to develop a naming convention to suit their particular business requirements. Mackay Sugar representatives visited a number of different businesses to look at their master data and to discuss any suggestions that these industries may have from their SAP implementation experience. Of particular note was a visit to the QNI Yabulu refinery that provided us with a good insight into the BHP experience with setting up master data. Mackay Sugar chose to base its technical object structure on the BHP model but most of the functional location coding was developed in-house. The old VAX Station numbers were retained for the system and services coding. The following is the breakdown of the SAP functional location naming system using the No.1 bagasse conveyor drive at Marian Mill (MM-060-BAG-1-DR) as an example: Business Unit (MM- Marian Mill) System or Service (060- Steam Generation and Distribution) Sub-System (BAG- Bagasse Transfer System) Sub-Sub-System (1- No.1 Bagasse Conveyor) Sub-Sub-Sub-System (DR Drive Set) In SAP, the drive set would then contain the separately maintainable items such as couplings, gearboxes, motors etc., known as Equipment in SAP. The equipment Bill of Materials would then identify the catalogued materials such as v-belts or motor bearings that may be purchased against a particular piece of equipment. Some comments from the authors relating to technical object and naming conventions as implemented at Mackay Sugar include: 480

5 Keep each level of the functional location coding to a minimum, usually four characters or less. The description can provide the additional detail required. SAP lists each level of functional location codes alphabetically in the user interface. Using numbers at the beginning of the code can force a certain order of systems if required. SAP lists equipment in numerical order in the user interface. This can be managed using user defined equipment numbers but this is not recommended as SAP will allow any user-entered combination without any mandatory system checks. The same functional location code should be used at each site for the same sub-systems to assist in standardising across sites. The description associated with the functional location can reflect the specific sites naming conventions. Where possible, design the functional location coding to enable simple identification of the area of plant with minimal reliance on descriptions. For example, CONV is always a conveyor system; LTPOW is always used to group the lighting and power equipment together. Be consistent with coding extensions such as PY for pulley sets, PP for pump sets, DR for drive sets, INST for instrumentation, etc. This will allow single point reporting at various hierarchy levels using SAP list editing functionality. Always use consistent naming of equipment. Although this sounds obvious, it requires discipline to avoid the same equipment type being presented in slightly different forms. For example, AIRCON, AIR CONDITIONER, AIR CON and A/CON may all be used to represent the same equipment type. Provided the equipment is consistently named, SAP equipment list edits will allow reporting on an equipment type such as air conditioners across the entire business. If more than one piece of the same equipment type is in the one functional location, the Sort Field can be used to identify the specific equipment. For example, there may be six pulleys along the No1 bagasse conveyor. The Sort Field can be used to identify the GTU, HEAD, LOWER BEND, SNUB, TAIL and UPPER BEND pulley. Reference data Grouping the plant together into functional locations and identifying the equipment types in the sugar business is just the beginning. To maximise the effectiveness of the SAP reporting capabilities and hence the benefits that can come from a fully developed CMMS, the development of what Skriletz (2007a) defines as reference data is the next step in the process. Reference data includes such information as equipment classes and characteristics, and equipment failure, problem and cause codes which are required to analyse plant performance. A detailed discussion of reference data is beyond the scope of this paper. Mackay Sugar has implemented equipment specific failure codes and is in the process of developing equipment classes and characteristics. The resulting reporting functionality will be significantly improved. 481

6 Effective materials management The business philosophies and processes behind the ideal supply system is a topic worthy of several ASSCT papers in its own right. However the following points relevant to master data should be made as part of this report: Mackay Sugar has implemented the SAP Materials Management (MM) system to manage the business supply function. For BOM's to be effective, materials (spare parts) must be catalogued. That is, they have to be identified in the Materials Management (MM) system with a manufacturer's description, part number and vendor. For additional effectiveness, materials should be on a supply contract, so that accurate cost and availability information is on hand. Other industries currently have direct access to vendor's catalogues permitting users to easily locate spare parts. This would provide additional convenience to Mackay Sugar maintenance planners. The short term advantages of catalogued BOMs are already being seen by planners at some sites with correct materials information easily available within SAP. Longer term advantages of effective materials management will provide Mackay Sugar with a warehouse system that only needs to hold long lead-time items and critical spares. This would result in a much reduced held inventory and the associated financial benefits. Ongoing maintenance of master data Master data changes over time. As Skriletz (2007b) comments, Master data is a discipline and a journey, not simply a project or a task. Procedures need to be put in place to ensure that the master data is updated in a timely manner. It is also necessary to establish standards for the quality of data and to have measures in place to monitor and report on any quality issues. At Mackay Sugar, additions of and amendments to the functional location structure can only be done by the SAP Maintenance System Support Officer and two Central Reliability Engineers. These three people and the site-based Reliability Engineers and Maintenance Planners can add and amend equipment BOMs. Regular audits of the master data must be carried out to ensure consistency, standardisation and accuracy. Audits are currently conducted each month to monitor changes to functional locations, equipment, and BOM's and correct any non-standard entries. Future maintenance planning With the introduction of SAP and the new business processes that have been implemented, Mackay Sugar is intending, from 2008 onwards, to develop its maintenance budgets 18 months in advance. That is, the budget for the year ending June 2009 (YEJ09) will be finalised in the first quarter of the 2008 calendar year. All recurring jobs, jobs scheduled from maintenance plans and extraordinary (once off) jobs for 2008 Crush and 2009 Shutdown will be loaded into SAP at this time to form the budget. Mackay Sugar is aiming to have 80 percent of maintenance work known, planned and budgeted for at the start of each financial year. The other 20 percent will cover the unplanned, breakdown and emerging work for that 12 month period. 482

7 This is a big step for maintenance planning in the sugar industry and it will only be successful with discipline from all levels within the organisation and the ability to effectively track our plant condition and maintenance backlog. Having SAP master data correctly set up will assist in the monitoring of maintenance effectiveness and hopefully the successful planning of future maintenance work. Conclusions The correct identification of the master data is essential for the business to maximise the effectiveness of its ERP. It is essential to get the technical object structure correct at the start. Businesses contemplating implementing a CMMS should visit as many reference sites as possible to see what others have done and what advantages and disadvantages come with the different approaches. Don't underestimate the length of time required for structuring the technical objects that will form the backbone of your master data. This process is very time consuming, as is the task of building and maintaining the BOMs for your equipment. The paper concludes by reinforcing that master data is a journey, not simply a onceoff project or task. It needs to be reviewed, refined and updated regularly to remain useful and enable the maximum benefits to be extracted from investing in a CMMS. Acknowledgements The authors would like to acknowledge Keenan Jansen and Russell Brown for their hard work and direction during the development of Mackay Sugar s SAP master data. The authors would also like to thank Graham Roberts and the SAP implementation team for their advice along the way. REFERENCES Skriletz R (2007a) Mastering master data. Why it's a business problem first. Business Intelligence Network (accessed October 2007). Skriletz R (2007b) Mastering master data. How to succeed with master data. Business Intelligence Network. (accessed October 2007). Stengl B, Ematinger R (2001) SAP R/3 plant maintenance: Making it work for your business (Pearson Education Limited). 483