A review of CMMS/EAM usage

05 Apr ‘11Kannan Palanisamy

Today’s Presentation• Background • Business problem• CMMS usage

– Plant Maintenance module– Materials Management module– Spare parts Management– Turnaround Management– Document Management

• APM usage– Reliability tools and Reliability analysis– Inspection and Condition Monitoring Manager– Key Performance Indicators– Analysis and Decision support

Background and Introduction

• Kannan Palanisamy (Head of Maintenance at Ras Gas Company Ltd)– 25 years experience in Oil and Gas industry– Used SAP (CMMS) for the past 12 years– Certified Maintenance and Reliability

Professional– Certified Risk Based Inspection specialist– Certified Functional Safety Engineer– Interested in Travelling to historical places

& scenic places– Play Cricket & badminton and listen to all

kinds of soothing music

Business opportunityMaintenance optimization requires:

• Framework - Work notification, Work order management and information management

• Efficiency – Planning & Scheduling, Materials Procurement, maintenance cost settlement etc…

• Effectiveness – Doing the right work• Reliability Improvement to eliminate failures, optimize PM

strategies, and eliminate non-value adding work when possible• The Stake for Reliability Improvement is BIG• The potential Uptime gain is worth 10X the maintenance cost

savings• Reliability Analysis Tool Set needed that would enhance the

value of the data being collected through maintenance

CMMS usage - SAP

• SAP was Started in 1972 – five former IBM employees

• Top 5 software company (MS, Oracle, IBM, Google, SAP)

• Trades on NYSE: SAP

• Headquartered in Walldorf, Germany (near Heidelberg)

SAP structure

• 9 Basic modules• Interconnected and

Interdependent• PLM – Plant Maintenance

Module• MM – Materials

Management Module• FI – Financial Accounting

Module

R/3MM

FI CO

SD PP

PLM

QMWMHR

Meridium - Asset Performance Management

© Copyright Meridium, Inc. 2004

Work History

CMMS System: SAP

Work Execution

Work SchedulingWork Planning

Possible/Additional Data Sources:•Engineering•Inspection•Condition•Financial•Incidents•Process Historians

Analysis/Assessment

Strategy Development

MaintenanceManagement

Cycle

ContinuousImprovement Loop

Spare parts management through SAP

• Optimal spares provisioning is a prerequisite for all maintenance tasks

• All spare parts required were identified from Asset register.• Spare parts requirements were reviewed to identify spares

holding levels. Bills of Materials for all equipment with spares identified

• All spare parts have been catalogued directly into SAP-MM • Spare parts management system is integrated with SAP system

to ensure spares required to achieve maintenance tasks are readily available at the point of need.

• Common strategies are established for purchase of spare parts and consumables.

• SAP system issues reservations, materials delivery points to the plant and purchase requisitions to be processed further by relevant departments

Spare parts Management in SAP• SAP aids Data driven analysis– What are important pieces of

information for a material?– SAP material master (20 different

views)• Real time accounting information– Accounts Receivable– Accounts Payable

• where’s our cash?– Inventory – which materials– Accounts Receivable – which

customers– Accounts Payable – which vendors

Areas of improvement in Spares management

• Currently holding huge inventory.• 80% of spares holding are not-moving• Strategy to develop reliability tools to study and

reduce non-moving spares inventory.• To develop strategy for obsolescent spares

(especially electronic spares like cards, hardware etc)

• To develop strategy for materials returns, refurbishment process and damaged materials write-off process.

Performance measurement through KPI’s derived from CMMS/EAP

“You cannot manage what you cannot measure” – By Bill Hewitt of Hewlett Packard 3

• Financial • Safety• Environmental

• Availability• Reliability• Maintainability• Cost

• Work processes• Backlog

• Training• Competency

Areas of improvement in KPI’s

• More ‘leading indicators’ than ‘lagging indicators’– Eg. ‘Near misses’, ‘backlog – aged and

high priority workorders’, schedule compliance

• ‘Leading indicators’ allow to take action ‘proactively’

• ‘Lagging indicators’ are reactive indicators

Meridium – Inspection and Condition Monitoring Manager

• Inspection & Condition Monitoring Data Management

• Log of Observations• Findings• Recommendations• Reports

Document Management system in SAP

• What is a document per SAP?– Equipment datasheets, Fabrication drawings etc– Maintenance & Operating manuals– Job procedures, lock-outs, sketches, drawings etc– Check Lists– Inventory Pictures– Instructional Videos

• SAP provides various document linking methods• Document files can be stored in a common server• Gets information out of individual people’s desks • No need to print (save paper)• Planner can add document links to work order tasks.• Areas of improvement in Document management system is to

add link to ‘3D model views’ especially to aid maintenance in equipment isolations etc.

Work order resourcing/job costing• SAP PM module is robust and provides an elaborate

framework for Maintenance workorder management.• Planner forecasts the manpower, materials, logistics

and other resource requirements into the workorder• Manpower and Labour time are recorded either as manual

entry or CATS (Cross Application Time sheet) after work completion

• Maintenance costs for spares and consumables are based on costs recorded in the SAP MM module.

• Settlement of these costs are done according to the Settlement rules of the company.

• The cumulative maintenance costs (Manpower, Labour, spares, consumables etc ) are automatically recorded in SAP

• Several different cost reports can be generated in SAP

Turnaround/Shutdown Management in SAP

• Four phases of Shutdown• Phase 1 – Initiation

– Steering committee establishment, Charter and budget establishment• Phase 2 – Planning and Preparation

– SAP provides frame work to code workorders that need a shutdown for execution

– Generate shutdown worklist– Screen worklist and approve workorders based on Risk– Develop resourcing needs for the shutdown from the worklist– Manpower, logistics, spares , special vendor support needs, 3rd party

contractor requirement etc are logged into the workorder– Cost estimate done from the workorder planning data– Develop detailed planning and schedule– Prepare workpack, maintenance procedures and safety procedures

Turnaround/Shutdown Management in SAP

• Phase 3 – Execution– Actual work execution– Field planner records the manpower time for each completed

task – Costs are tracked from Field planners inputs into SAP– Manage discovery works with proper approvals.

• Phase 4 – Close-out and capture lessons learned– Capture lessons learned for continuous improvement– Return all unused materials and refurbish repairable parts and

return to warehouse– Close workorders in SAP– Reconcile costs

Reliability Manager of Meridium• SAP workorder is used to record ‘Break down information’

and maintenance start and end times• The Meridium Reliability Manager module uses the data

recorded in SAP to identify key reliability parameters namely– MTBF (Mean Time between Failures), MTTR (Mean Time to repair), Failure

counts, Downtime– Availability, Failure cost

• Simulation provides:– Failure Counts– Downtime– Availability– Failure Cost

• what is expected to fail next and what fails the most often.• Often used to determine most cost effective re-design

alternatives.• The only drawback is quality of data feed by planners in SAP

will lead to errors in the reliability analysis.

Conclusion

• SAP and Meridium work seamlessly to provide information for continuous Asset Performance Improvement.

• SAP provides the state of the art CMMS system and a fully integrated Enterprise resource planning framework.

• Meridium data warehousing tool from SAP provides information at finger tip to target reliability improvement and to increase uptime.

SAP and Meridium assists to provide

reliable clean energy (LNG) to the

world

References

1. Slide 6 – SAP modules diagram cited in SAMS ‘Teach Yourself SAP R/3’ in 24 hours by Daniella Larocca.

2. Slide 7 – ‘Meridium APM Architecture’ cited in Meridium whitepaper – Improving asset performance through Meridium – from www.meridium.com

3. Slide 11 – Quote on KPI’s from Wikipedia by Bill Hewitt of HP.

4. Slide 13 – Meridium Inspection Manager cited in Meridium APM – Inspection Manager module from www.meridium.com