optimize your manufacturing equipment with eam nancy majure eam specialist, qad inc from mro to...

Optimize Your Manufacturing Equipment With EAMNancy MajureEAM Specialist, QAD Inc

From MRO to Project Management

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The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD.

Safe Harbor Statement

Optimize Your Manufacturing Equipment with EAM

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• Getting started with optimization• How Enterprise Asset Management (EAM)

supports the Effective Enterprise• EAM functional areas

- Project controls- Indirect (MRO) inventory & purchasing - Maintenance

• Using EAM to optimize equipment utilization

Presentation Agenda


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• QAD’s EAM solution supports the Effective Enterprise by:- Optimizing your asset utilization- Delivering a complete suite that supports all

phases of the equipment life-cycle- Incorporating best practice processes- Enabling and promoting greater asset

utilization- Aligning asset performance with strategic goals

Overview


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Getting Started


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• Understand “equipment life-cycle”• Know your current status• Know why you should care• Understand Return on Investment • Define your strategic goals

Getting Started


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Equipment Life Cycle


Commission

Operate

Maintain

Retire / Replace

Design

Construct

EAM Project Controls

EAM Asset Management

Equipment & Asset Life-Cycle

Acquisition Phase: budget controls,acquisition cost,reliability &maintain-ability

Operation Phase:maintenance,cost of ownership

20% of life cycle costs

80% of life cycle costs

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Know Your Current Status


CM

CM

Reactive BestPractices

PM

100%

0%

>85%

<15%

PM

WorldClass

Stage 1Run to failureNo records

Stage 2PM Critical Assets (Cal)No CM recorded

Stage 3PM Program (Cal)Some CM recorded

Stage 4PM (Cal & DUOM)All CM recorded

Stage 5PMs and PdMsAll CM recorded

Functional Area Estimated Stage

Project Controls

Purchasing Processes

Inventory Controls

Plant Maintenance

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Know Why You Should Care


Benchmarks Very Reactive2

Basic Maintenance Program2

Best Practice1

World Class1

Production Breakdown Losses

25%-30% 15%-20% 5%-12% 1%-2%

Maintenance Cost as % of RAV*

25%-30% 15%-20% 3%-9% 2.5%-3.5%

MRO Cost as % of RAV*

15%-20% 10%-12% 2%-4% 0.25%-0.75%

*RAV = Replacement Asset Value1 – Maintenance and Reliability Best Practices, Ramesh Gulati

2 – Author’s estimated percentages

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Know Why You Should Care


Example: QMI Manufacturing- RAV = $10,000,000- Annual Sales = $100,000,000

Benchmarks Very Reactive2

Basic Maintenance Program2

Best Practice1

World Class1

Production Breakdown Losses

$25 - $30mil

$15 - $20mil $5mil - $12mil

$1mil - $2mil

Maint Cost as % of RAV*

$2.5 – $3mil

$1.5 – $2mil $300k - $900k

$250k - $350k

MRO Cost as % of RAV*

$1.5 - $2 mil

$1 - $1.2mil $200k - $400k

$25k - $35k

*RAV = Replacement Asset Value 1 – Maintenance and Reliability Best Practices, Ramesh Gulati2 – Author’s estimated percentages

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• 50% of companies experience payback in less than 12 months

• Typical savings:- Reduction in maintenance expense 10% to

30% - Increase in production yield 3% to 5% - Reduced maintenance downtime 20% to 40% - Reduced scrap / rework 5% to 10% - Reduction in annual purchases 5% to 15% - Improved labor utilization 10% to 30% - Increased equipment service life 2 years

Return on Investment


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• Goals should - Align EAM business processes- Leverage single source EAM system - Support equipment peak efficiency

• Measures for performance should - Be easy to measure - Drive the desired results - Be difficult to manipulate

Define Your Strategic Goals


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How EAM Supports Effective Enterprise


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Align With a Single System


Indirect inventory processes

Project controls

Equipment efficiency

Maintenance processes

Indirect purchasing processes

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• Usability improvements - Rationalization of data entry - Reorganized screens

• Interface enhancements - Fixed asset integration - MSW/PSW exposure to EAM work orders - SCP integration

• Revision history

New in EAM 12.6 to Support Single System


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Usability – Reorganized Screens


More logical data groupingImproved data entry flow

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Interfaces – Fixed Assets Interface


Capitalize new asset Utilize actual spend from

- Project level, or

- Job level

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Interfaces – MSW/PSW


Exposes EAM WO’s to scheduling Provides production visibility to required equipment downtime

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• Export RFQ’s to Supply Chain Portal• Import responses for purchasing

Interfaces – Supply Chain Portal


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• Supports compliance • Provides detailed traceability

Revision History


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EAM and Project Controls


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• “Birthplace of Assets”• Budgetary control PLUS . . . • Design

- Reliability (measured by MTBF)- Maintainability (measured by MTTR)

• Construction - Standardized spares - Accessibility

• Commission - FMEA - RCM - BOM- Maintenance plan

What is Project Control?


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• Capital- Profit enhancements- Increase capacity - Replacement

• Expense- Annual rebuilds- Marketing / legal / etc.

• Customer Funded - Progressive billing - Very common in

automotive verticals

Types of Projects Managed in EAM


Key characteristic: results in new asset(s)

Key characteristic: no assets created

Key characteristic: customer owns asset

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EAM and Equipment Optimization



Project controls




Utilize EAM to • Control budget • Improve design • Track real-time financials • Manage customer funding• Capitalize assets • Commission to operations

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• Project allocations • Fixed asset cross reference • Enhanced cost analysis • Analysis by activity

NEW in EAM v12.6 Projects


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Project Allocations


Project Level

Job Level

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Fixed Asset Cross Reference


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Enhanced Cost Analysis


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Analysis by Activity Code


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EAM and Indirect Inventory / Purchasing


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• “MRO” – maintenance repair operations • Repair parts plus . . .

- Internally fabricated parts - Supplies - Consigned / vendor-managed - Free-issue / company catalog

• Goal is to ensure right parts are available - At the right time - At the right price - In the right quantity - To sustain availability of plant assets

Indirect (MRO) Inventory and Purchasing


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• Utilize full EAM solution• Leverage buying power• Utilize EOQ analysis to right-size inventory• Secure inventory • Improve physical layout • Automate stock replenishment • Free buyers for more strategic activities • Know where parts are used• Standardize parts • Understand difference in Indirect

Indirect (MRO) Best Practices


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Project controls




Utilize EAM to • Authorize • Control • Link to indirect • Analyze • Improve

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Project controls




Utilize EAM to • Control• Right-size • Standardize • Analyze • Automate

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• Blanket orders • Redesigned quotes• Improved purchasing workflow • Intrastat support• Physical inventory by location

NEW in EAM v12.6 Inventory/Purchasing


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Blanket Orders


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Redesigned Quote Module


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• “Previously authorized” concept • Additional controls

- Modifications to ordered POs - Rerouting visibility - Status alignment with ERP

Improved Purchasing Workflow


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Intrastat Support


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EAM Functional Area: Maintenance


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• Preventive AND corrective maintenance• Effective maintenance drives:

- Increased output with the same assets- Reduced need for capital replacement- Reduced maintenance cost per unit - Reduced total cost per unit - Improved performance (cost, productivity, and

safety)- Increased competitiveness- Increased market share

What is Asset Maintenance?


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• Record all work – PM and CM • Collect all costs to the asset and task level • Plan work • Schedule work • Improve PM program

- Predictive / condition-based - Technology to detect potential failure - FMEA and RCM activities

• Empower resources• Change culture

Maintenance Best Practices


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Project controls




Utilize EAM to • PM & CM • Measure • Analyze • Improve

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• Equipment mapping to ERP• Production line mapping to ERP• New/improved reporting

NEW in EAM v12.6 Maintenance


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• Supports MSW/PSW interface • Another step towards production driven

maintenance

Equipment Mapping to ERP


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• Supports MSW/PSW interface • Another step towards production driven

maintenance

Production Line Mapping to ERP


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• Incorporates “Transaction Date” ranges • Retrofitted back to 12.4.2.3

New/Improved Reporting


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Conclusion and Next Steps


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• Think “Effective Enterprise” where all business processes are - aligned, - working at peak efficiency, and - delivering the strategic goals of the

organization

• Specifically - Align EAM processes- Maximize EAM as a “single system” - Utilize EAM to measure results - Continuously improve

How Do I Optimize Equipment?


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Project controls




Utilize EAM to • Align indirect processes • Work at peak efficiency • Deliver on strategic goals

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• Stop by the Solutions Expo• Schedule a demonstration • Schedule free “EAM Operational

Excellence Workshop” • Register for “EAM v12 Making the Switch

to .NET” class May 30 – 31 in Santa Barbara

Next Steps


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Questions & Answers


Nancy MajureEAM Specialist, QAD [email protected]

Kate FenelloEAM Product [email protected]

optimize your manufacturing equipment with eam nancy majure eam specialist, qad inc from mro to...

Documents

eam slide

manufacturing equipment

equipment lifecycle

equipment life cycle

eam commission

qads eam solution

life cycle costs

project management slide