QAD EAM - Maintenance Demonstration Guide August 4, 2015 EAM 2015
Overview This demonstration focuses on one aspect of QAD Enterprise Asset Management (EAM) Maintenance and shows how this functionality supports the vision of the Effective Enterprise; where every business process is working at peak efficiency and perfectly aligned to the company s strategic goals. Enterprise Asset Management Maintenance Key Points Enabling the Effective Enterprise
Related Metrics Leveraging Maintenance to schedule and manage both preventative maintenance and repair activity will affect Asset Utilization, Manufacturing Efficiency and Manufacturing Schedule KPIs. Typical measurements related to these KPIs include Overall Equipment Effectiveness (OEE), Production Yield Percentage, Scrap / Rework Percentage. Fixed Asset Downtime, Maintenance Cost over Asset Value, and Maintenance Spend. Effective preventative maintenance programs reduce maintenance downtime 20 to 50%, improve production yield 10 to 20%, reduce scrap/rework 20 to 50%, improve labor utilization 10 to 25% and extend equipment service life by 10 to 20%. You will improve fixed asset effectiveness, capacity utilization and manufacturing schedule achievement. Additional metrics and the relative importance of each one will depend on your definition of the Effective Enterprise. You can monitor performance against your defined metrics using a combination of Business Intelligence Dashboards and Reports. Maintenance Related Metrics Overall equipment effectiveness (OEE) Production yield percentage Scrap, rework percentage Fixed asset downtime Maintenance cost over asset value Maintenance spend Key Points Asset Utilization KPI o Reduce maintenance downtime 20 to 50% o Improve production yield 10 to 20%, reduce scrap / rework 20 to 50% o Improve labor utilization 10 to 25% o Extend equipment service life 10 to 20% Manufacturing Efficiency and Manufacturing Schedule KPI
o Increase capacity utilization, less unplanned maintenance o Production scheduling efficiency increases to 95% or more Standard metrics, importance varies by company
Enabling Solution Maintenance supports improvements to these key metrics by giving you visibility and control over plant maintenance activities. Typically, it will cost four times as much to fix a broken machine as it does to keep that machine properly maintained. For this reason, Maintenance focuses on helping you schedule preventative / predictive maintenance activities, based on machine readings, actual production usage or elapsed time and scheduled to minimize downtime and cost. It uses work orders for planned and unplanned work, capturing failure and cost information for analysis, providing the information you need to improve preventative maintenance programs reducing the cost of maintenance and downtime due to machine failures. Maintenance Enabling Solution Plant maintenance - Planned / predictive - Unplanned / reactive Maintenance work orders Equipment history - Failures - Cost Continuous improvement Key Points Preventative/Predictive o o o Calendar-based Machine reading-based Production-driven Unplanned / Reactive Provides analytical data for improvement
Demonstration Summary In this demonstration, you will see how Maintenance will help you manage your valuable equipment more effectively. Start with an equipment problem capturing the problem and then using integrated notifications and messaging in order to minimize impact on production. As you enter the problem, turn the request into an active corrective work order, report labor, requisition outside service, and issue parts you will see how quickly and easily corrective service can be tracked, while seamlessly integrating with QAD Enterprise Applications for financial and purchasing activities. You will also capture costs and resolution details you can use for root cause analysis, avoiding future failures by helping you build a comprehensive Preventive Maintenance Program. Maintenance Demonstration Summary Enter service request Assign to technician Report labor Create requisition & route for approval Generate purchase order Log purchases & issue parts Analyze cost & failure codes Revise PM schedule Key Points Simple transaction flow Notifications and messaging Seamless integration Complete history
How QAD improves maintenance service levels Service Requests QAD EAM helps you track both planned and unplanned maintenance, giving you visibility into all requirements, so that you can plan and schedule maintenance activities in the most efficient way. Anyone in your organization can report an equipment issue, guided by QAD s signature process maps. To perform an activity, just click any node on the map for example, Service Requests. This will take you to the next set of selections, each time based on your specific situation. Demo 1. You should already be logged on to EAM as User demo password <blank> 2. In Processes, Easy On Boarding, click <Vertical> 3. Click EAM 4. In Maintenance, click Service Requests
Key Points Step-by-step guide Experienced users will use menus or set up Favorites
How QAD reduces downtime Alerts In the example in this demonstration, you are experiencing an equipment breakdown. The compressor you are using just failed a very serious issue that needs immediate attention. You can enter this problem right now and indicate it is urgent. See the Notify field? This is set automatically to the maintenance planner or group identified as responsible for this equipment. You can override this and also identify an alert perhaps sending a note to the plant manager. To see how the alert system works within QAD EAM, change roles and log on as the planner in this case Max Hunt. The first thing you will see is a message from the technician reporting the compressor failed. You are seeing this in the inbox here, but you can also send this message to an email or pager ensuring the planner is aware of a critical issue no matter where they are, so they can get that machine back up and running! Demo 1. Click Raise Service Request (or from menu, select Maintenance > Service Requests) 2. Click New icon
3. In Equip No, click Search icon 4. Expand Plant 1, BLDG 1 5. Double-click Equipment No CO0002 6. Enter Priority 1, Problem Compressor Failed, Alert MHUNT
7. Click Save icon 8. Close tab 9. Select File > Logoff 10. Enter User MHUNT, Password blank
11. Click OK 12. In Messages, double-click Inbox 13. Double-click Message Service Request 15 at 10-100 Added
14. Page down
15. Close tabs Key Points Machine operator quickly and easily enters a problem o o Notify field automatically set to the planner responsible for that equipment Email automatically generated to EAM mail and optionally corporate mail (ie. Outlook, Lotus Notes) Two way electronic communication ensures problems addressed quickly, and in correct order, according to priority Don t have to be logged into EAM to find out about critical issues
How QAD streamlines maintenance processes Work Orders Using QAD, there is no need to call the technician. Since this is a high priority issue, you can dispatch it right now, from here in the message. With just a couple of mouse clicks, you can create a work order and assign a technician to go look at the machine right away. This also generates an email back to the machine operator who reported the problem, letting them know that you have received the notification and someone will be coming to look at the problem. Demo 1. Select Enterprise Asset Management > Maintenance > Service Requests 2. Highlight top Service Request, click Action 3. Select Action > Create Work Order 4. Close tab 5. Select Enterprise Asset Management > Maintenance > Work Orders > Work Orders 6. Highlight top Work Order 7. Click Edit icon
8. Enter Assigned 10-EMP18 (Ken Green) 9. Click Save icon 10. Close windows Key Points Create a work order Assign a technician Automatically send message to machine operator who reported problem
Dispatch Technician The technician in this case, Ken Green immediately sees the work order to fix the press. This work order includes the equipment ID and problem description entered on the Service Request, plus Instruction Lists, Stores Requisition Lists, Tools Lists, and Safety Procedures. Other information, like warranty details, are also available on the Equipment record. Ken has everything he needs to get to work on this problem. Demo 1. Select File > Logoff 2. Enter Userid KGREEN, Password blank 3. Click OK
4. Select Enterprise Asset Management > Maintenance > Work Orders > Work Orders 5. Click Group by icon 6. Drag & drop Assigned to Group by box 7. If prompted, click Yes 8. Expand Employee 10-EMP18 9. Double-click top Work Order
10. On right menu, click Equipment 11. Double-click CO0002 12. Click Asset tab 13. Resize right menu
14. Close tabs Key Points Put Work Order on Favorites menu for fast access Work Order includes everything technician needs o Instruction Lists o Stores Lists o Requisition Lists o Safety Procedures o Warranty
How QAD ensures timely, accurate data for analysis Labor Reporting Typically, the first thing the technician will do is spend some time diagnosing the problem. Rather than jotting down this on a sticky note to enter later (if they remember), the technician can easily record it right here. It is simple. Just enter the time spent and record any comments the system fills in the rest, calculating total cost from time entered and employee pay rate, and posting cost to general ledger accounts associated with this piece of equipment. Technicians can also report the type of failure and/or type of repair made, perhaps associated with specific equipment systems or assemblies for better definition of where the problem occurred. Real-time entry ensures you have the most up to date, accurate data for analysis. Demo 1. In Work Orders tab, highlight Work Order 2. Click Action 3. Select Action > Post Labor 4. Enter Time 01:00, Comment Diagnosed problem with bearings
5. Click Save icon 6. Close tab 7. Double-click Work Order 8. Click Codes tab 9. Enter Failure BEAR 10. Click Save icon Key Points Only enter employee id and time, everything else defaults - Fast and easy Record failure, repair, and other codes for analysis
How QAD controls the cost of materials and services Requisitions Often, during the course of a repair, the technician may determine that outside services are required. For example, the diagnosis here is that you need to have an outside contractor come in and replace the bearings. The cost should be associated with the event the failed compressor so you would enter a requisition for this right here, associated with the work order. Typically, Bridgeville Industries does this cleaning for about $1100 let us enter that. The technician can enter the requisition, but it is likely that you will not be able to approve this expenditure. In this case, the requisition automatically routes to a manager to approve. Demo 1. In right menu, click Requisitions 2. Click New icon 3. Enter Description Bring in contractor to replace bearings, Date Required <today> 4. Check Contractor 5. Enter Vendor No 10S1002, Buyer 10-EMP17 (DCOLTER)
6. Click Save icon 7. Close tab 8. In bottom window, click New icon 9. Enter Part No Contractor
10. Enter Description Contract Service, Qty Ordered 1, Order Cost $1100 11. Click Save icon 12. Close tab 13. Highlight Requisition
14. Click Action 15. Select Action > Authorize 16. Enter Password blank 17. Click OK icon 18. Check High Priority 19. Enter Comment Compressor has failed. Emergency service on bearings required 20. Click OK
21. Click OK Key Points Manage costs by requiring approvals Multiple levels with limits per approver Shorten approval cycles by using electronic requisition routing and email notifications
Requisition Approvals When the technician initiates a requisition, it automatically generates a mail notification requesting approval. Based on how you set up the system, approvals can route based on the requisition s cost center or account; or the initiator can route the approval to a specific group. This requisition went to Frank Harris for approval, so let us log on as him. Here it is a message and request for approval. As Frank, you can approve (or disapprove), give the requisition a priority and enter a comment. This comment will be included in a confirmation email back to the technician who entered the requisition. Can you see how easy this is? Not only does it save time, EAM provides the right level of controls along with a complete audit history of all requests and approvals. Demo 1. Select File > Logoff 2. Enter Userid FHARRIS, Password blank 3. Click OK
4. Click Inbox 5. Double-click top message
6. Page down
7. In email message, click Click here to view requisitions 8. Close Inbox and Message tabs 9. Highlight top requisition 10. Click Action
11. Select Action > Authorize 12. Enter Password blank 13. Click OK icon 14. (Optionally) Enter Comment I ve called Bridgeville and approved the repair, they ll be here in 20 minutes 15. Click Approve 16. Click OK
17. Click OK Key Points Mail notification Enforces tight budget controls; multiple levels of approvals, based on amount Complete history maintained who submitted? who approved?
How QAD improves productivity and minimizes data entry Purchase Orders With just a few clicks, you can create a purchase order for the approved requisition. Typically this is done by a buyer, but in this demonstration the person who initiated the requisition creates the purchase order subject to the same type of approval process that you saw with requisitions. Log out and back on as Ken Green the technician who is working on this issue. He will see that the requisition has been approved and can create a purchase order immediately. Demo 1. Select File > Logoff 2. Enter Userid KGREEN, Password blank 3. Click OK 4. Click Inbox
5. Double-click top message 6. Page down
7. In mail message, click Click here to view requisitions 8. Close Inbox and Message 9. Click Action
10. Select Action > Create Purchase Order 11. Click Action 12. Select Action > PO Order Note: PO Status changes to O for Open 13. Close tabs Key Points Simple to generate PO Multiple steps allow separation of duties, as required Optional PO Approval process, similar to requisition approval
QAD Enterprise Applications Behind the scenes, everything you do in EAM feeds into the QAD ERP application. Your EAM users may not have access to these menus, so log off and back on as the demo user. This user can access everything. Now you can see your purchase order on the Purchase Order Browse. Even though this purchase order originated in EAM, it operates like any other purchase order for accounting purposes. When you process the receipt in EAM, you have the option of printing a receiver. Just like all other receipts, QAD Financials uses this receiver number to manage the accounts payable process. There is no duplicate data entry and no errors. In addition, you get real-time reporting on all your costs, from an operational perspective right through to your general ledger. Demo 1. Select File > Logoff 2. Enter User demo, Password qad 3. Click OK
4. Select 5.8 Purchase Order Browse 5. (Optionally) Search Order starts at E 6. Select File > Logoff 7. Enter User KGREEN 8. Click OK
9. Select Enterprise Asset Management > Purchasing > Purchase Orders 10. Highlight Purchase Order 11. Click Action 12. Select Action > Receive 13. Check Rec? 14. Enter Packing Slip No PS<date>
15. Click Receive 16. Click Yes
17. Click down-arrow icon Note: QAD Financials uses the receiver number for matching 18. Close window Key Points Tightly integrated with QAD Enterprise Applications Non inventory purchase generates a memo type purchase order Once received, use the same Accounts Payable Match voucher to receiver, option to print receiver document
How QAD minimizes maintenance costs Cost Tracking Only when you have accurate, timely information about the cost of maintenance activities, can you seriously work to reduce these costs. You saw how easy it is to track labor on a work order. Similarly, you can issue parts from spares inventory. In this example, the compressor needed a new bearing. Record that right here, on the work order. Here you see all the information about the work order, including all the accounting fields. Note that these all default the technician does not have to worry about any of this it automatically charges the costs to the right place. The only thing the technician needs to worry about is the parts used and where they came from and even that is loaded automatically based on the selected part. EAM captures all the costs to repair while maintaining data integrity and correct financial reporting. Demo 1. Select Maintenance > Work Orders > Work Orders 2. Highlight Work Order 3. Click Action
4. Select Action > Issue 5. In Part No, click Search icon 6. Find BEAR 7. Scroll left to show Quantity On Hand and Quantity Available
8. Double-click BEARING 003 9. Enter Qty 1 10. Click Save icon Key Points Simple to issue parts Select part number (from drop down list) and enter quantity Everything else defaults Suggested inventory location displays Track true cost of ownership by accumulating spare parts spending against equipment repair
How QAD supports continuous improvement Failure Analysis Once the technician completes the work order and the compressor is functional, the last thing to do is to make a few notes on the Failure and completed work. Not only will this be available if the problem recurs, it can help you prevent future emergency repairs. Codes such as Failure Code and Repair Code are an important way to categorize maintenance activities for analysis allowing you to look at the number of Failures, type, and Mean time between Failures. Now you can pro-actively develop preventative maintenance activities to prevent this failure from occurring. Total cost information parts, labor and contract services help you to analyze and compare costs, allowing you to identify the biggest issues and make comparisons between alternative machines. Detailed history can also highlight potential improvements to your preventative maintenance program. For example, there have been several orders on this compressor, a couple of them to fix the same problem with bearings. This may indicate you should be doing maintenance more frequently than the manufacturer recommends in this case, scheduling bearing maintenance as well as the annual checkup. The ultimate goal: replace reactionary corrective maintenance with pro-active equipment care, eliminating downtime and lost productivity, while reducing maintenance costs. Demo 1. Highlight Work Order, click Edit icon
2. Click Codes tab 3. Enter Failure BEAR, Repair REPL 4. Click Text tab 5. Enter Work Performed Compressor went down unexpectedly. Brought in Bridgeville to replace bearings 6. Click Save icon 7. Close tab 8. Click Action
9. Select Action > Change Status 10. Double-click C-Closed 11. Click OK 12. Highlight Work Order
13. Click Edit icon 14. In right menu, select Cost Analysis 15. Click Material tab 16. Close tabs 17. Select Maintenance > Equipment > Equipment
18. Double-click Equipment No CO0002 19. On right menu, select Failure Analysis 20. Click Failure BEAR
21. Click PM Templates tab 22. Click New icon 23. Enter Description Regular Bearing Maintenance, Equip No CO0002 24. Click Issue Method tab 25. Enter Issue Cycle Month, No of Cycles 2 (every other month), Next Issue <2 months from now>
26. Click Save icon 27. In right menu, click Failures 28. Click New icon 29. Enter Failure BEAR 30. Press Enter 31. (Optional) In right menu, click Detail 32. Click Save icon 33. Close tabs Key Points Complete equipment history for continuous improvement Evaluate PM requirements & add new PM s as needed; specify frequency Enter Failures to identify one or more failures this PM will address (ie. BEAR) Analytical Tool - Failure code for analysis o How many failures? what type? Mean time between Failures (MTBF)
Pro-active maintenance; Reduce reactionary / corrective maintenance Preventative Maintenance templates; Result: Better equipment reliability Notes recorded on line, associated with call, rather than on paper or in technician s head! Complete cost history for analysis
How QAD reduces scrap and rework Readings For non-critical equipment, scheduling regular preventative maintenance on a monthly or quarterly basis might be just fine. However, for some critical equipment, you may need to regularly monitor vital signs temperature, oil pressure or other operating characteristics and compare them with established tolerances. In this example, you monitor the temperature reading of the water chillers. Each has an established high and low temperature limit, as well as the frequency you will allow an out of tolerance reading. For example, if Water Chiller 2 has a high or low reading just one time, it is considered out of tolerance, sending an alert to Brad Nix and creating a corrective work order. This ensures you respond quickly if a machine starts to act up, rather than wait until it causes a problem often identified when you start to see excessive scrap or rework. Demo 1. Select Maintenance > Equipment > Equipment (or click Equipment tab) 2. Find WCH 3. Double-click Equip No WCH001 4. On right, click Readings
5. Close tab 6. Double-click Equip No WCH002 7. On right, click Readings
8. Click Action 9. Select Action > Update Tolerances 10. Click Cancel Key Points Establish high and low target measurements, and tolerances Monitor equipment and automatically generate alerts and/or corrective work orders if out of tolerance
How QAD improves efficiency Multiple Equipment Work Orders Rather than set up and manage a Preventative Maintenance Work Order for each individual piece of equipment for example, each Water Chiller you can use a PM Template to assign a single preventative maintenance work order to multiple pieces of equipment. In this example, we use this to set up a single work order to take the temperature reading on each of the water chillers but you can use these to manage any regular maintenance activity that applies to multiple pieces of equipment, like inspecting and lubricating all presses. When the work is due to be done, all you do is issue the PM template to create a multistep work order. Process each step in this case, taking a temperature reading for each of the water chillers. When a reading falls outside the tolerance, it can immediately create a corrective work order and email the responsible engineer ensuring you quickly bring the machine back into tolerance. Here, the temperature reading for water chiller 1 was fine but the reading for water chiller 2 was too high. This automatically created a CM (corrective maintenance) work order and alerted Brad Nix. Demo 1. Select Maintenance > PM/PDM > PM Templates 2. Highlight PM No 1051 3. Click Action 4. Select Action > Issue
5. Enter Date <today> 6. Click OK 7. Select Enterprise Asset Management > Maintenance > Work Orders > Work Orders 8. Double-click Work Order <256> 9. In right menu, select Instruction Lists
10. In Step 1, scroll right 11. Enter Date Read <today> 12. Enter Reading 5 13. Press Tab 14. In Step 2, enter Date Read <today>, Reading 40 15. Press Tab 16. Click Yes 17. Select Maintenance > Equipment > Equipment 18. Search WCH 19. Double-click WCH002
20. In right menu, select Readings Note CM Work Order <257> in bottom panel 21. Select File > Logoff 22. Enter Userid BNIX, password <blank>
23. Select Inbox Key Points Schedule Preventative Maintenance based on machine usage or calibration o Attach calibration instructions o PM order for one or multiple pieces of equipment Automatically: o Launch CM Work Order o Email responsible engineer
How QAD creates precise PM programs Production-driven maintenance You saw how you can use machine readings to automatically generate preventative maintenance orders. Another option is production-driven maintenance, automatically triggering preventative maintenance based on the number of hours, cycles or parts produced, as recorded in the ERP system. Unlike calendar-based preventative maintenance programs which can schedule maintenance either too late, resulting in machine downtime and higher maintenance costs, or too frequently, also resulting in higher cost; both tolerance-based and production-driven preventative maintenance create precise PM programs. For production-driven maintenance, all you do is map the EAM equipment to your ERP work center, machine and tool, and then enter the Driving Unit of Measure. Background jobs run automatically to update the actual production using operation history from QAD ERP, triggering a PM when your reach specific readings. Demo 1. Select Maintenance > Production Driven Maintenance > Equipment Mapping to ERP 2. Select Maintenance > Production Driven Maintenance > Equip DUOM / ERP Item Conversion 3. Select System Administration > Job Control > Job Program 4. Highlight JobProgramID 36 DUOM Load
5. Select Maintenance > PM / PdM > PM Templates 6. Double-click PM Template 1052 7. Click Issue Method tab
Key Points More precise PM program than calendar-based PM Use actual hours, cycles or parts produced Automatically trigger PM Eliminate data entry, improve accuracy
Closing In closing, QAD Enterprise Asset Management (EAM) - Maintenance helps you more effectively manage your assets driving down costs and increasing your company s performance through proactive maintenance of your plant and equipment assets, while capturing the analytical information you need to support continuous improvement. QAD: Enabling the Effective Enterprise! Maintenance Closing Increase equipment utilization - Overall equipment effectiveness (OEE) - Yield, Scrap, Rework percentage - Fixed asset downtime Reduce maintenance cost - Maintenance cost over asset value - Maintenance spend Enabling the Effective Enterprise! Key Points Enabling the Effective Enterprise! o Reduce maintenance downtime 20 to 50% o Improve production yield 10 to 20%, reduce scrap / rework 20 to 50% o Improve labor utilization 10 to 25% o Extend equipment service life 10 to 20% o o o Increase capacity utilization, less unplanned maintenance Improved schedule achievement, less unplanned maintenance Production scheduling efficiency increases to 95% or more Asset Utilization KPI Manufacturing Efficiency KPI Manufacturing Schedule KPI