Asset Life Cycle Management
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1 Asset Life Cycle Management Management Consulting Enterprise Solutions Digital Solutions
2 Welcome! This presentation will take 40 minutes and feel free to ask questions at any time 2
3 Agenda Asset Lifecycle Management Concept by Example from 3
4 ACANDO
5 Acando s four main offerings
6 One of the leading actors on the ERP-market in the Nordics with approx. 220 SAP-consultants Service Partner Channel Partner Appr 120 consultants in Sweden 40 consultants in Stockholm 40 consultants in Göteborg 15 consultants in Malmö 25 consultants in Västerås 60 consultants in Germany 40 consultants in Finland Certified PCoE
7 Asset Life Cycle Management ALM Concept 13/11/2014 Management Consulting Enterprise Solutions Digital Solutions
8 ALM Background We have identified the most common issues... Fragmented system landscapes without structured, controlled or missing data transfer between different systems. Fragmented processes, without consideration of the core process and/or missing optimization of the investment lifecycle. Missing connections between Assets and Plant Maintenance Missing total control of cost the structures Fragmented information. 8
9 Asset Lifecycle Management by Acando The ALM by Acando concept are built upon a complete view and will give the business an increased efficiency for the asset life cycle. 9
10 ALM by Acando This is what it s all about! core process efficiency applied at any point asset intensive businees driven various viewpoints total process perspective 10
11 ALM by Acando Business advantage By considering all sub processes in an asset total lifecycle process, there will be an structured and optimized overall asset efficiency with improved business case for the investment. 11
12 ALM by Acando Customer Benefits Improved Overall Cost Control Improved utilization of your investment in SAP System Improved information base for decisions Secure your investments over time Improved support from your SAP System in different areas 12
13 ALM by Acando The typical business The ALM Concept primary applies to following businesses : Capital intensive Asset intensive Investment intensive 13
14 ALM by Acando Possibilities The concept can be applied from various viewpoints and will support your business model. Provides the process perspective of the complete asset life cycle. 14
15 ALM by Acando Feasibility study The ALM concept gives the opportunity to address the processes, from a prioritized point of view, towards any of the sub-processes. The ALM concept will clarify and prioritize the areas of highest potential for improvements in different aspects. 15
16 ALM by Acando Method An analysis is made through one or several work-shops and interviews. This results in a report with a road-map for the steps to come. The solution is based on the main process but with technical solutions according to the current ERP system. Preparations Analyze Report Prioritize 16
17 ALM by Acando Processes
18 ALM by Acando Success factors Delivered by senior resources with excellent business experience as well as deep ERP competence. Ensures a business driven solution rather than an IT solution. Business Finance Technique 18
19 Vattenfall Vattenkraft BU Hydro En presentation av Vattenfalls vattenkraftverksamhet SAPSA Lars-Åke Engström
20 BU Hydro i siffror BU Hydro är en del av Vattenfall Region Norden Antal anställda ~ 500 i Norden Produktion och kapacitet Hydro Norden TWh/år 8300 MW Investeringar Hydro Norden 1,2-1,5 miljarder SEK/ år. Totalt 13 miljarder SEK under
21 Vattenkraft en ryggrad i svensk elproduktion Elproduktion [TWh] Gas Kondenskraft Kraftvärme Kärnkraft Vindkraft Vattenkraft
22 BU Hydro i Norden - Vattenfall är en av de ledande vattenkraftproducenterna i Norden och den tredje största i Europa Lule älv - I Sverige och Finland finns det 110 större och mindre vattenkraftverk - Vattenkraften levererar viktiga funktioner: Förnybar el Reglerkraft för att klara elanvändningen samt vindkraftens variation Göta älv Skellefte älv Ume älv Ångermanälven Indalsälven Dalälven Stockholm 54 storskaliga vattenkraftverk
23 Asset Life Cycle Management Vattenfall Hydro Management Consulting Enterprise Solutions Digital Solutions
24 Vattenfall Hydro Background After a review and analysis of Vattenfall Hydro Nordic s system landscape (approx 60 IT systems) the IT department came to the conclusion that several IT systems are redundant, i.e. they perform activities that could be performed in SAP. Vattenfall Hydro does not utilize SAP in an optimal way and master data is stored in several places and is unnecessarily shuffled (manually or automatic) between different IT systems. 24
25 Vattenfall Hydro Background A pre study was made that pointed out the following areas in SAP to address while waiting for a decision regarding the global group template: Implementation of Down time/ Shut Down Planning leads to a possibility to close down external systems Optimization of preventive maintenance which can lead to replacement of external system Pre study of PPM, Project Portfolio Management, can replace external system Pre study of Supply Chain functionality regarding central warehouse and development of the material master. Establish and implement the refurbishment process. 25
26 Vattenfall Hydro, Reorder of the PM technical structure Purpose The purpose of the project was to develop and decide on a new simple and transparent technical asset structure, with clear definitions and master data objects, that is built on SAP standard technique and that will last into the future. The project was prioritized as a starting point and estimated to get the fastest result and is expected to trigger other processes/projects such as: Supply Chain Shut Down Planning Preventive Maintenance PM order process (planning) 26
27 Vattenfall Hydro, Reorder of the PM technical structure As is To Be From An technical structure that: Is experinced to be hard to understand, both by internal and external users. Thus generating extra work for projects, on-going activities and support/administration. Is not able to handle all parts of a water power plant whitout complicated guidelines for adjustments and interpretations. Is hard to apply which leads to large quality deficiencies in master data. Has a technical structure with functional locations on a very detailed level and a programmed functionality that is not SAP standard. Has a built-in logic that makes it impossible to implement the recurring changes in the power plants. Makes it difficult to develop maintenance by adding other PM-functionality in an efficient way. 27
28 Vattenfall Hydro, Reorder of the PM technical structure As is To Be To An technical structure that: Is clear and easy to understand and enables an efficient work with power plant changes, as well in ongoing activites as in projects. Can handle all parts of a water power plant without adjustments and interpretations. Is easy to apply which leads to higher quality on master data. Is built on SAP standard functionality regarding the technical structure. Is adapted to an eventual future merge to new technical platform. Will enable efficient processes by using SAP standard functionality (eg preventive maintenance, material and resource planning etc) Will enable a one-to-one connection between the technical and financial asset registry, which will enhance the quality in the financial monitoring. 28
29 Vattenfall Hydro, Reorder of the PM technical structure The project Project goals To establish a Master Data Management team Extend the outcome of an investment project regarding documentation, technical structure, capitalization of assets Two pilot activities Implement the outcome of an investment project according to the new MDM process. Define, develop and implement a model for migration of existing technical structures by SAP standard, plant by plant 29
30 Vattenfall Hydro, Reorder of the PM technical structure A project aligned to Acando:s ALM concept By considering the total life cycle process and prioritizing Investment process MDM koncept Activation of the project MDM koncept Maintain Modify Maintenance Final Asset Project handover 30
31 Vattenfall Hydro, Reorder of the PM technical structure Project summary The overall goal with the project is to reach a level of understanding how to extend the usage of a more total SAP solution and to build the foundation for further process development within the EAM area. This project is just the start of the journey towards the overall goal. The project is initialized by using the Acando ALM concept and this will help the Hydro organization to increase the business benefits of SAP and in addition develop the organization. The project has been prioritized as a very important project by VF Hydro management. Due to the fact that the organization is large, complex and geographically scattered it is likely that the time line for the roll out will be extended. We have now reached approximately 70% of the project and are confident that this will be a success story. 31
32 Questions? 32
33 Asset Life Cycle Management Tommy Hansson Jimmy Wahlfors 13/11/2014 Management Consulting Enterprise Solutions Digital Solutions
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