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SAP EAM / Plant Maintenance

Reliabilityweb.com • Reliability Roadmap

Asset Management White Paper Series

www.reliabilityweb.com • www.cmmscity.com

Best Practices

Price: $399.00

(2)

This independent research was conducted and the

report was written without commercial sponsorship.

We are pleased to gain the endorsement of the

enlightened sponsors listed below who’s support will allow

us to distribute this report without cost to the reader

and to conduct more important research in the future.

www.dts-global.com www.ivara.com www.omcsinternational.com TM www.mrgsolutions.com www.reliabilityweb.com www.uptimemagazine.com www.cmmscity.com www.maintenance.org

Supporting Organizations

Sponsoring Organizations

(3)

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world.

Table

of Contents

4

Executive Summary

6

General Information

9

Information Regarding Migration to SAP PM

10

Work Process Issues

11

Work Orders and Spare Parts

13

Planning

14

Use of Failure Codes

16

Training

17

Reporting

18

Use of Other Software Tools with SAP PM

19

Other Products Used with SAP PM

20

SAP PM User Group (ASUG) Membership

21

Summary

(4)

Figures

6

Figure 1: Percentage of Users at Various SAP PM Maturity Levels

6

Figure 2: Percentage of Users at Various SAP PM Maturity Levels vs. Satisfaction

of the Application in Managing Maintenance Activities

7

Figure 3: Percentage of Users Running the Current SAP Software Version

7

Figure 4: Percentage of Respondents that Used Consultants for Implementation

8

Figure 5: Comparison – SAP Rating by Those Who Did / Did Not Use Consultants

9

Figure 6: Reasons for Migration to SAP PM

9

Figure 7: Did Your Company Replace Your CMMS with SAP EAM / PM?

10

Figure 8: Have You Changed Your Work Process to Fit SAP EAM / PM?

10

Figure 9: Those That Did / Did Not Change Their Work Process Compared to the

Level of SAP PM Satisfaction Handling Maintenance

11

Figure 10: Percentage of Work Orders Tracked in SAP EAM / PM vs. Satisfaction

12

Figure 11: Percentage of Spare Parts Tracked in SAP EAM / PM vs. Satisfaction

13

Figure 12: What Product Do You Use to Plan Maintenance Work?

13

Figure 13: Number of Respondents Using SAP “and” Excel / Project for Planning

14

Figure 14: Failure Codes – Percentage by Who Developed the Codes

15

Figure 15: Failure Code Development Strategies vs. Satisfaction

16

Figure 16: Comparison Staff Training vs. SAP PM Satisfaction

16

Figure 17: Comparison – Maintenance Employee Training vs. SAP PM Satisfaction

17

Figure 18: Use of SAP PM Reporting vs. Satisfaction

17

Figure 19: Comparison of SAP PM Report Use / Satisfaction and Staff Training

18

Figure 20: Use of Other Software in Conjunction with SAP PM

18

Figure 21: Use of Other Software with SAP PM vs. Satisfaction

19

Figure 22: Use of Other Software Products In Conjunction with SAP PM

(5)

Second only to energy, maintenance costs are a significant

portion of every company’s expense budget. Recognizing this fact,

companies have implemented strategies to alter the perception

that maintenance is a necessary evil to one where maintenance

is considered a strong contributor to the company’s profitability.

One of these strategies is the integration of the computerized

maintenance management system (CMMS) into the company’s

information and decision-making network utilizing tools such as

SAP Plant Maintenance.

In order to gain a better and deeper understanding of the use of

SAP PM as a profitability partner, Reliabilityweb.com surveyed 700

maintenance managers and reliability professionals. This report

will provide insight into the use of SAP PM by those surveyed as

well as provide suggestions for further improvement to increase

value, not simply for the maintenance organization but for the

company as a whole.

Significant Insights

The survey results showed that 65% of the respondents felt that SAP PM was a good to excellent tool for managing maintenance activities. This is somewhat different than the industry perception that SAP is not a good maintenance management tool. This will be explored further throughout this document. The companies that have successfully utilized SAP PM in the maintenance arena have included the following in their business strategy:

• Software was aligned with the internal work processes. In many cases this required customization which was achieved with the use of outside consultants in order to utilize their extensive experience.

• All work orders and spare parts information was included in the system along with the elimination of legacy tools that previously supported these processes.

• Extensive training was provided both during implementation and after deployment to enhance understanding and gain acceptance.

Executive Summary

The promises

of an integrated

Enterprise Asset

Management System

(EAM) such as

SAP include:

• Visible

maintenance

processes

• Standardized

maintenance

processes

• Visible

maintenance

performance

metrics

(6)

• Increased understanding and utilization of reporting from within the SAP software vs. exporting data to third-party tools such as Excel.

• Inclusion of other tools and applications within the SAP PM that support the overall maintenance effort and provide deeper and more robust functionality in key business areas.

Action to Drive Improvement

SAP PM can provide significant business value specifically due to its integration of financial, materials management, and other systems within a company’s business network. This can only be accomplished if action is taken to:

1. Make full use of SAP PM functionality in order to attain maximum value from the product, the employee user base, and the associated work processes

2. Eliminate past practices that detract from the integration capability of the software

3. Provide ongoing training to increase understanding of the tool and ultimately acceptance for its use.

These items and others will be addressed in greater detail in the following chapters of this report.

SAP PM

This report refers to the popular and past name for the SAP Plant Maintenance (PM) module. The term SAP EAM is the current form. In this report - the use of SAP PM is synonymous with SAP EAM.

About This Report

This report is an independent survey of 700 maintenance managers and reliability engineers on their implementation experiences and utilization of SAP Plant Maintenance. The survey was conducted by Reliabilityweb.com, an online community of over 50,000 maintenance and reliability professionals worldwide. The survey was not sponsored by any commercial organization and all information regarding the respondents is confidential.

©Copyright 2010 Reliabilityweb.com. All rights reserved. Duplication is prohibited.

Reliabilityweb.com, PO Box 60075, Fort Myers, FL 33906 USA

Give people

data and they

will use it.

Provide

communication

and it knocks

down walls.

(7)

General Information

Figure 1: Percentage of Users at

Various SAP PM Maturity Levels

(Note: Those respondents not using SAP PM are excluded from this chart.)

14% 44% 42% 0% 20% 40% 60% 80% 100%

Less than 1 year 1 - 5 years More than 5 years

Pe rc en t o f R es po nd en ts ( N = 58 6)

Based on the survey data, the majority of the respondents were mature SAP PM users with 86% using the application for more than one year, and almost half of the survey respondents using SAP PM for more than five years.

Figure 2: Percentage of Users at Various SAP

PM Maturity Levels vs. Satisfaction of the

Application in Managing Maintenance Activities

(Note: Those respondents not using SAP PM are excluded from this table.)

Overall Rating SAP PM Managing Maintenance Poor Fair Good Excellent

The P er cent ag e of R es p o nd ent s U si ng SAP By Ye ar > 5 28% 58% 1 to 5 <1 2% 4% 7% 1%

Often user maturity level does not guarantee that the application adequately supports maintenance management activities. To clarify the relationship between maturity and use, the respondents were asked about the ability of SAP PM to manage maintenance. Fifty-eight percent of the mature respondents, and an additional 8% using the application less than one year, rated the system either good or excellent in support of maintenance. This high rating of the application in support of maintenance

Leaders used SAP

implementation

as an opportunity

to re-engineer

and standardize

maintenance

reliability best

practices.

Laggards thought

they were simply

installing a

software tool.

(8)

activities is significant! Nevertheless, 34% rated SAP’s ability to support maintenance in either the fair or poor category. This will be explored deeper in the Training and Work Process sections of this report.

Figure 3: Percentage of Users Running

the Current SAP Software Version

63% 37% 0% 20% 40% 60% 80% 100% Yes No Pe rc en t o f R es po nd en ts ( N = 64 4)

Another area of general interest is the question of whether or not the user community is staying current with the vendor’s software releases. This is important on two fronts. First, new releases provide improved functionality which enables the application to address the needs of the users in their performance of the work. Second, new releases often provide patches to correct issues discovered in the current release either by the vendor or the user community. Both of these benefits make “staying current” an attractive alternative to not staying current. The issues that often delay the migration to the most current release are the time it takes to integrate what is being delivered into the current work process, training the users in the new functionality, and last but not least, testing the release to make certain that when deployed it will not cause problems. It is encouraging to see that the survey indicates that 63% of the respondents are using the current version of the application which indicates that these issues are being addressed.

Figure 4: Percentage of Respondents

that Used Consultants for Implementation

75% 25% 0% 20% 40% 60% 80% 100%

Used Consultant Did Not Use Consultant

Pe rc en t o f R es po nd en ts ( N = 50 2)

The companies that

have successfully

utilized SAP PM in

the maintenance

arena have included

the following in their

business strategy:

• Software was aligned with the internal work processes. In many cases this required customization which was achieved with the use of outside consultants in order to utilize their extensive experience. • All work orders and spare parts information was included in the system along with the elimination of legacy tools that previously supported these processes.

• Extensive training was provided both during implementation and after deployment to enhance understanding and gain acceptance.

• Increased understanding and utilization of reporting from within the SAP software vs. exporting data to third-party tools such as Excel.

• Inclusion of other tools and applications within the SAP PM that support the overall maintenance effort and provide deeper and more robust functionality in key business areas.

(9)

From the above chart, 75% of the respondents utilized a consultant company to support their implementation and possible work process enhancement. Twenty-five percent, or 102 respondents, did not, and worked with internal resources. This raises an interesting question. Did those who did not utilize a consultant have more or less satisfaction with SAP PM as a maintenance management tool compared to those who used the services of a consultant during their implementation process? Figure 5 addresses this question.

Figure 5: Comparison – SAP Rating by

Those Who Did / Did Not Use Consultants

SAP Rating Good / Excellent SAP Rating Fair / Poor

113 47 240 77 0 50 100 150 200 250

Used Consultant Did Not Use Consultant

N um be r of R es po nd en ts ( N = 47 7)

Did consultant support actually add value? The data is inconclusive (68% used a consultant, while 62% did not) and really does not answer this question. While those who felt satisfied with SAP as a maintenance tool and did not use a consultant in the process may feel satisfied, the following questions need to be addressed to clarify the issue:

• Did the effort without a consultant in a support role take longer and actually cost more internal dollars than the cost of the external support? • Were all of the work processes addressed and modified using “best

practices”? While internal resources may have a firm understanding of these practices, external consultants have a broad range of experience and can add value possibly not even considered internally.

• Was the training of high quality and did the students learn the “tricks of the trade”? These tricks, or best methods, to utilize the software are things that internal resources would not know since they would have no prior knowledge of the software. Consultants, on the other hand, bring this experience to the table.

If the answers to the above questions were not “yes,” then the rationale for consultant use in a software work process implementation effort is sound. While the survey did not answer these questions, the data indicating that 68% (353) of those surveyed employed consultant support validates the approach.

353

124

353

}

68%

}

62%

Insight

The following general insights are pertinent to the use of SAP PM as a maintenance management tool:

• 66% of the survey population rated SAP PM good to excellent in supporting maintenance work processes. This high percentage of positive feedback goes a long way towards dispelling the myth that maintenance is not supported by the application.

• Two-thirds of those surveyed are running the current version of SAP PM. This supports the recognition by the user community that there is value in staying current with new releases. It also supports the fact that the software releases are of good quality. If this were not the case, the percentage of users not current would be higher. It doesn’t take the user community long to recognize software release quality problems and delay upgrades.

• The use of consultant support is value-added if handled correctly. This is evidenced by the fact that three-quarters of the surveyed population used consultant support in the SAP PM implementation. However, 30% of those using a consultant still rated SAP PM in support of maintenance either fair or poor. There could be a multitude of reasons for this result including how the consultant support was utilized, among others. If a consultant is going to be used in support of this type of initiative, role clarity is important. Both external and internal resources bring value; it is how they are blended into an effective work team that counts.

(10)

Information Regarding

Migration to SAP PM

Figure 6: Reasons for Migration to SAP PM

102 105 136 162 183 207 225 0 50 100 150 200 250 Improved integration with human resources Other reasons Better reporting Better multi-location site management We have always run SAP PM Improved integration with

materials management Improved integration with financial software

It is interesting to note that none of the responses regarding why a company transitioned to SAP PM were because of improved functionality. That does not mean that SAP PM did not have improved functionality when compared to the prior CMMS being operated, but it does provide some interesting support to the fact that companies are clearly seeing the value of integration of their computer systems. In fact two-thirds of the reasons for replacement were integration related. Furthermore, 29% of the additional comments provided stated that replacement was due to the desire for standardization of software integration.

Figure 7: Did Your Company Replace

CMMS with SAP EAM / PM?

67% 33% 0% 20% 40% 60% 80% 100% No Yes Pe rc en t o f R es po nd en ts ( N = 61 7)

The information provided in Figure 7 is also interesting. Two-thirds of the respondents stated that their companies did not replace an existing CMMS with SAP PM. This means that they have been operating SAP PM for an extended period of time which further supports recognition of the value-add provided by system integration. The write-in responses also provided some valuable data. Of the 192 write-in responses, 24% replaced Maximo, 10% replaced Datastream/Infor Products, and 10% replaced in-house systems – all non-integrated applications.

Maximo is a registered trademark of IBM. Datastream is a trademark of Infor.

Insight

It is clear from the responses and from the additional comments provided that: • Management is recognizing the business value of system integration and standardization not only within a plant site but enterprise-wide across companies with multiple plant locations. Clearly the cost of providing application integration is considered by many to be a Best of Breed approach. • The decision to migrate from whatever system was being used prior to SAP PM appears not to be a decision made by the respondents (maintenance managers and reliability engineers). This is supported by the data in which 22% said replacement was due to corporate mandate, a new owner’s mandate, or that the decision was made by another department. • With the decision to migrate to SAP PM being made by others, the maintenance managers and their constituents are taken from the position of decision maker to one where they must adopt the new system and adapt to the manner in which it functions. Often a system is just as much a part of the organizational culture as other aspects of the business. Change is difficult and being forced to move to a new application by corporate or other departments clearly could explain why new users – less than one year using SAP PM – would be evenly split in the system’s overall rating in support of maintenance activity (see Figure 2).

(11)

Work Process Issues

Figure 8: Have You Changed Your Work Process

to Fit SAP EAM / PM?

39% 61% 0% 20% 40% 60% 80% 100% No Yes Pe rc en t o f R es po nd en ts ( N = 61 9)

Figure 9: Those That Did / Did Not Change Their

Work Process Compared to the Level of SAP PM

Satisfaction Handling Maintenance

117 86 251 135 0 50 100 150 200 250 300 350 400

Changed Work Process Did Not Change Work Process

Pe rc en t o f R es po nd en ts ( N = 58 9)

It is to be expected that a new CMMS will require some modification to the work process in order to accommodate the new system. However, the maintenance work process at its basic level consists of work identification, planning, scheduling, execution, and work order close out. The level of work process complexity beyond this basic level will often dictate if major process change is required. From the above charts, almost two-thirds of the respondents had a need to modify their existing work process. However, what we don’t know is whether the existing process was poor and SAP PM enabled improvement, or simply that the process was changed due to system requirements imposed by the new program.

Figure 9 adds additional information. It appears that the level of SAP PM satisfaction was virtually the same for those who did and those who did not change their maintenance work process. This might indicate that those who changed their process to address the functionality provided by SAP PM really did not have one which was highly developed. If this were the case, then changing the process along with the SAP PM implementation would provide a higher level of satisfaction with the software. Conversely those who had robust processes that fit the SAP PM model would equally be satisfied with the software while not having to make process modifications.

}

61%

Insight

For those who are planning an SAP PM implementation, the above information provides an important work process redesign insight. Every maintenance organization has a work process. Prior information in this report has indicated that the decision to move to SAP PM was determined outside of the maintenance arena. Therefore the process in place needs to adjust to the SAP PM functionality. If you have a highly developed process, then most likely it will fit the SAP PM work process model. The question is: What if you don’t have a robust process? Software can be a powerful enabler of change. New software should give you the opportunity to create a new upgraded process and use the software implementation to support it. Failure to put a new process in place leads to dissatisfaction with the software when in reality it is the process that is flawed. This may account for those who are dissatisfied with the software and changed their process after implementation and those who tried to maintain the legacy process within the context of improved functionality.

(12)

Work Orders

and Spare Parts

Figure 10: Percentage of Work Orders

Tracked in SAP EAM / PM vs. Satisfaction

18% 7% 4% 6% 45% 12% 4% 4% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 100% <75% <50% <25% Per cen ta ge of R es po nd en ts Tr ac ki ng W or k O rd er s i n S A P

Percentage of Work Orders Tracked in SAP PM Poor-Fair Good-Excellent

It is critical to the success of any CMMS, especially one that has integrated functionality, that all work orders are tracked within the system. Failure to do so reduces the value of the software integration and the overall ability to plan, schedule, and manage maintenance work activities. Additionally, important historical information is lost along with the ability to conduct reliability-centered analysis.

Insight

Figure 10 shows that a total of 63% of the respondents track all of their work orders within SAP PM. This accounts for two-thirds of those surveyed and includes 18% who only rated their satisfaction level in the poor to fair range. Obviously there is recognition across the maintenance community of the value of having all work order information within the CMMS. This is further supported by those who track 75% or less of their work orders in their CMMS. In these cases the satisfaction level (those satisfied or dissatisfied) was essentially the same indicating that tracking less than 100% did not add any perceived value to the use of SAP PM.

(13)

Figure 11: Percentage of Spare Parts

Tracked in SAP EAM / PM vs. Satisfaction

16% 7% 3% 9% 36% 16% 7% 7% 0% 5% 10% 15% 20% 25% 30% 35% 40% 100% <75% <50% <25% Per cen ta ge of R es po nd en ts Tr ac ki ng S pa re s i n S A P

Percentage of Spares Tracked in SAP PM

Poor-Fair Good-Excellent

The data related to the tracking of spares within the CMMS is somewhat different than that of work orders. Only 51% of those surveyed track all of their spares in SAP PM, and only 36% have expressed good to excellent satisfaction with the system’s ability to manage maintenance. This raises some significant questions: How and where is the data related to spare parts tracked and stored? How do those who do not use SAP PM to track spares acquire life cycle cost or reliability data for their assets? Clearly information gaps of this nature can be serious leading to less than adequate reliability analysis along with the possibility of making wrong business decisions, each of which can seriously impact a company’s bottom line.

Insight

There may be reasons for this apparent low level of spares integration to SAP PM. Regardless of the reason, a strong business case can be made for making spares and general stock information part of the integrated system. Not only is there significant benefit for maintenance but also for materials management and finance as well. An organization can spend as much as one-third of the maintenance budget on parts, and therefore it is imperative that the historical usage information be available across the many organizations that use this data for analysis and cost control. This can only occur if the majority of the parts are tracked within the CMMS.

Best Practice

A CMMS/EAM cannot support enhanced maintenance performance or productivity without complete and accurate information. Imagine the chaos created by a similar lack of detail in your company

accounting information system.

You must track 100% of your maintenance activity and 100% of maintenance and repair spares in the CMMS/EAM to get the greatest return.

(14)

Planning

Figure 12: What Product Do You Use

to Plan Maintenance Work?

13 45 59 61 155 209 482 0 100 200 300 400 500 600 Prometheus Other No formal planner Primavera Microsoft Project Microsoft Excel SAP

Figure 13: Number of Respondents Using SAP

“and” Excel / Project for Planning

141 335 476 53 96 149 36 79 115 0 50 100 150 200 250 300 350 400 450 500 Fair-Poor Excellent -Good Total SAP Excel Project

Planning is a critical part of the maintenance work process. Without planning and scheduling of the work, there is lack of direction and sub-optimization of the maintenance resources. Figure 12 shows that 80% of those surveyed use SAP PM for their planning activities. This is encouraging since the planning process drives all other aspects of maintenance activity and ultimately, through job completion, returns costs and analytical data back into the system. This is beneficial for maintenance, but due to the integrated aspect of the software, it is also beneficial to other organizations that have alternative uses of the work order data.

Insight

The high level use of Excel (34%) and Microsoft Project (25%) and the framework of the survey question imply that these applications may be used independently of SAP PM or through the downloading of data in conjunction with the primary software.

Figure 13 drills deeper into this question. It appears that those who have ranked SAP PM good or excellent in its ability to support maintenance use Excel or Project in conjunction with SAP PM far less than those who have ranked SAP PM in the fair to poor category.

Possible explanations for the higher use of supplementary applications for planning could be 1) insufficient change management during implementation causing continued reliance on old processes and legacy tools, or 2) insufficient training not just during deployment but on a continuous basis as new employees are exposed to SAP PM. Each of these issues can be corrected by forcing increased use of SAP PM in the planning effort and reducing applications that are used as crutches in lieu of SAP PM.

Chart shows number of respondents per product. Some respondents use multiple products.

The Excel / Project data differs from Figure 12.

Figure 13 only shows companies using both products collectively.

SAP PM Ranking Number Using SAP for

Planning

Also Used for Planning Excel Project Good to

Excellent 335 28% 22% Fair to Poor 141 37% 25%

(15)

Use of Failure Codes

Figure 14: Failure Codes –

Percentage by Who Developed the Codes

46% 29% 12% 13% 0% 20% 40% 60% 80% 100% Codes Developed In-House Used SAP Standard Codes Consultant Developed Codes Other See Note Pe rc en t o f R es po nd en ts ( N = 58 9)

It is interesting to note that 41% of the respondents either used SAP PM standard codes or had the codes developed for them by a consultant organization with experience in this area. This is in comparison to 46% that developed the failure codes in-house. The recognition that failure codes are an important part of the maintenance process, which enables analysis and improves asset reliability, is important; however, a great many respondents indicated that they have difficulty using them.

A good set of failure codes, if used, can provide insight to reliability issues. The three approaches identified each bring value. Consultant-developed codes bring the experience of the consultant, which has often been fine-tuned over many years and many work engagements. SAP PM standard codes have been created with this same level of industry knowledge by the vendor interacting with their customers and the user group. The in-house developed codes can have the same value as the others; however, they are influenced by those in-house who may not have as broad an experience base as the former two sources for the codes. The important factor in the process of obtaining good value is the use of the codes.

Figure 15 further explores the question of SAP PM satisfaction related to the strategy employed in failure code creation.

A good set of

failure codes,

if used, can

provide insight

to reliability

issues.

Failure codes were

developed by/for

the user companies

the majority of the

time (57%).

This highlights

the need for

improved tracking

and reporting

mechanisms to

enable some of

the advanced

reliability

tools and

techniques.

(16)

Figure 15: Failure Code

Development Strategies vs. Satisfaction

(Note: Results in the “Other” column are excluded from the discussion since in the majority of the cases failure codes were not developed or not used in the maintenance process.) 82 60 26 35 186 114 45 41 0 50 100 150 200 250 300 Codes Developed In-House Used SAP Standard Codes Consultant Developed Codes Other See Note N um be r o f R es po nd en ts (N =5 89 )

SAP Rating Good / Excellent SAP Rating Fair / Poor

Insight

Figure 15 shows that user satisfaction in the good to excellent range was almost identical regardless of how the failure codes were developed. This does not seem to support the belief that consultant or SAP PM developed codes would be of higher value. What the survey does not reveal is the quality or the extent of the use of the failure codes, both as part of the work order process or subsequently in analysis of asset reliability, either of which may have an impact on the above chart.

}

}

69%

}

65%

(17)

Training

Figure 16: Comparison – Staff Training vs. SAP PM Satisfaction

Overall Rating SAP PM

Poor Fair Good Excellent

P er cent ag e o f t he M ai nt enanc e S taf f R ec ei vi ng Tr ai ni ng -P as t 12 M o nt hs 100%

13%

36%

>75% >50% >25%

22%

29%

>5% 0

Training in the use of a CMMS tool is not a one-time event. It is a continuous process. After all, how do the second, third, and future generations of users learn to use the application without ongoing training? The answer, a dangerous one, is that they are trained by those whose jobs they are filling. If you consider that 15% of the knowledge of how to use the software is lost by each successive generation, it is clear that this is not a sound approach. Ongoing training is the answer.

Figure 17: Comparison – Maintenance

Employee Training vs. SAP PM Satisfaction

Overall Rating SAP PM

Poor Fair Good Excellent

The N um b er o f D ay s / Y ear o f Tr ai ni ng P rov ide d t o M ai nt enanc e E m p lo yees >5

1%

8%

2-5 1

33%

58%

0

Employee training is a different story. It appears from Figure 17 that

additional training beyond one day per year did not add any significant level of satisfaction within the workforce. The question that remains unanswered is: How much does the workforce use the software, and is ongoing training needed?

Insight

Figure 16 clearly makes the case for ongoing structured training. In the case where more than 50% of the staff received training in the past year, the level of satisfaction with SAP PM in the good to excellent range (36%) was three times higher than those who expressed dissatisfaction (13%), but had the same level of training. Furthermore, for those that received very little training over the past year, there was little difference between those satisfied or dissatisfied with the software.

Insight

In many instances the workforce has little access to the CMMS and only receives training in the very specific areas in which they need to interact. In other companies, the workforce has been enabled to use the software as part of the job, and while they do not need the level of training that a planner would receive, training is still important. In either case, the workforce would not require a great deal of training which explains the low number of days of training per year. The level of use could also explain the level of satisfaction and dissatisfaction, the enabled organizations having a higher regard for the software due to their ability to use it extensively.

Best Practice

Training is a huge area for software improvement and gain. Training makes any system easier to use, and if people are comfortable using the system, they are more likely to participate in its success.

Training will teach users how to make the CMMS/EAM work for them rather than them seeing the CMMS/EAM as extra work.

Develop a strategy for CMMS/ EAM training on a continuing basis for improved productivity.

(18)

Reporting

Figure 18: Use of SAP PM Reporting vs. Satisfaction

Overall Rating SAP PM Managing Maintenance

Poor - Fair Excellent Good

-Is SAP U se d t o G ener at e R ep o rt s? (n = 586) Yes

18%

46%

No

16%

20%

Figure 19: Comparison of SAP PM Report Use / Satisfaction

and Staff Training

Using SAP PM Reports Not Using SAP PM Reports

29 18 18 27 16 14 20 28 0 20 40 60 80 100 120 >75% to 100% >50% >25% >5% 105 55 53 38 26 20 26 28 0 20 40 60 80 100 120 >75% to 100% >50% >25% >5%

Figure 18 clearly shows that there is a higher level of satisfaction with SAP PM as a maintenance management tool among those who use SAP reports (46% good to excellent rating vs. 18% fair to poor rating). The indication from this statistic is that SAP PM reports deliver the information necessary for monitoring, analysis, and other associated tasks that require good data. The satisfaction levels provided by those who do not use the reports is more evenly split – 20% good to excellent vs. 16% fair to poor.

Percent Staff Training SAP Satisfaction Level - Fair to Poor

Percent Staff Training

SAP Satisfaction Level - Good to Excellent

Insight

Using Figure 19, we can explore the use of SAP PM reporting to bring another element to the discussion – training. The left-hand chart shows those who rated SAP PM in support of maintenance in the good to excellent range. The x-axis lists the various levels of staff training year by year. Clearly those with more training (>75% to 100%) employed SAP PM reporting far more than those who had less training in the use of the software. One would suspect from this data that training and report use go hand-in-hand.

Within the low levels of training (>5% through 50%) satisfaction levels with the software were almost the same. This would tend to validate that lower levels of yearly training were not significant in driving higher use of the reporting functionality, even among those satisfied with the software.

In the right-hand chart – those who rated SAP PM in the fair to poor range – it appears that higher levels of training did not drive higher use of the reporting functionality. In this case, the company needs to first improve satisfaction, then, with increased training, report usage should improve. Only a small percentage (13%) mentioned BW or BO indicating the maintenance departments isolation from native SAP functionality.

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Use of Other Software

Tools with SAP PM

Figure 20: Use of Other Software in

Conjunction with SAP PM

33 46 67 85 90 133 149 164 0 20 40 60 80 100 120 140 160 180 GPS RFID Ultrasound Readings Infrared Imaging Handheld Mobile Devices Bar Code Scanners Oil Analysis Reports Vibration Analysis

Figure 21: Use of Other Software with

SAP PM vs. Satisfaction

92 51 25 32 10 10 4 5 51 16 13 5 1 4 1 0 0 20 40 60 80 100 1 2 3 4 5 6 7 8 N um be r o f A ddi tio na l E le m ent s i n U se w ith SA P PM Fair - Poor SAP Rating Good - Exccllent SAP Rating

It is encouraging to note the number of respondents who use other software applications with functionality that is very specific and aimed at improved asset reliability. No one application can do it all, especially when the

organization is targeting specific areas of reliability such as vibration analysis or infrared imaging.

In addition, the use of bar code scanners, handheld mobile devices, and RFID functionality indicates that other initiatives are in place that focus on efforts such as operation care and the use of bar codes to streamline many maintenance work processes.

Insight

Figure 21, which addresses the level of SAP satisfaction where other software tools are also used, shows that even in organizations that employ only one of these tools, there is a far higher level of satisfaction with SAP PM than those who did not report using the tools. In fact, as shown in the table below, there are twice as many satisfied responses from those using 1 to 3 tools and six times as many positive responses from those using 4 or more.

The unanswered question is: Do the other companies that did not report the use of these specific applications in conjunction with SAP PM still employ them outside of SAP PM, or do they simply not address these issues? The former answer is far better than the latter – at least the additional reliability tools would be in use. For those who employ the various software tools listed outside of SAP PM, they may find the level of satisfaction with the SAP PM application would improve if they were used in conjunction with one another.

Fair to Poor Good to Excellent 1 to 3 Applications 80 168 4 to 8 Applications 11 61 Number of Respondents Excellent SAP Rating Fair - Poor SAP Rating

(20)

Other Products

Used with SAP PM

Figure 22: Use of Other Software Products In Conjunction with SAP PM

1 2 5 6 7 7 14 14 17 18 21 21 23 24 46 88 198 436 0 50 100 150 200 250 300 350 400 450 500

INOVx Asset Certainty Oniqua Enterprise Reliability NRX Asset Hub 24/7 Tango Oniqua Maint. Analyzer Mincom LinkOne Ivara EXP OSIsoft PI Prometheus Group Meridium APM PMO-2000 Synactive GuiXT MeridiumRCMO Impress Other Primavera Microsoft Project Microsoft Excel Number of Respondents

Insight

Part of the customization process often involves the utilization of third-party technologies (i.e., a hybrid solution) to account for SAP PM’s perceived gaps to meet plant needs or requirements. A high number of the respondents utilized secondary technology in support of SAP PM. Predominant use appears to be with Microsoft Excel and Project which we have seen occurs frequently in the planning and reporting areas. However, what we have also seen is that the satisfaction level with SAP PM in support of maintenance is far higher than those who do not employ these tools. We have also seen that staff training has a lot to do with use and satisfaction. Quite possibly, additional training would enable those still dependent on legacy processes

employing Microsoft tools in lieu of SAP PM, to abandon them and use their primary CMMS.

Microsoft Excel and Microsoft Project are registered trademarks of Microsoft Corporation. Other trademarks are property of their owners.

(21)

SAP User Group (ASUG)

Membership

Many organizations implement software and then move forward with the belief that the vendor’s only role was that of software salesman. The mature software vendors do not hold with this belief. Instead, they sponsor user groups to obtain feedback about the tool, get input for future development, and overall maintain a partner relationship with their clients. After all, maintenance or other major software appli-cations are not replaced often.

The survey asked if the respondents were members of the ASUG, the SAP user group. As indicated by the chart, of the 582 respondents, only 96 indicated that they were part of this user community.

Figure 23: Membership in SAP User Group (ASUG)

84% 16% 0% 20% 40% 60% 80% 100% No Yes P er c’ t o f R esp o n d en ts (N = 582)

An additional factor resulting in the low participation in ASUG by maintenance reli-ability professionals is the apparent acquiescence of SAP EAM conference, networking and learning space to commercial events with an SAP Plant Maintenance or SAP EAM focus. There is an obvious need for SAP PM conferences that share case studies and best practices. These commercial events drain attention, time, resources and revenue from a potential audience that would normally serve to grow and support ASUG. Further research supports the high level of interest in networking and learning re-lated to SAP EAM based on the 4000+ Reliabilityweb.com opt-in e-mail subscribers registering for an impendent SAP EAM publication. This is further verified by active SAP EAM online communities and discussion groups at MaintenanceForums.com (www.maintenanceforums.com) and the Association for Maintenance Professionals (www.maintenance.org).

As there is a predisposition for companies that invest in SAP as an ERP platform to support officially sanctioned software user groups, it appears ASUG has a large op-portunity to assert its leadership in the maintenance reliability community where SAP EAM market share is estimated to be between 30%-35% of all maintenance management and asset management software systems in use. It is suggested that ASUG can broaden its influence by offering user group conferences that add value to SAP EAM users and ASUG as well as commercial supporters such as SAP AG and the SAP supplier community.

Action to Drive Improvement

The recommended action item to 1) gain benefits from a partnership with the software vendor, 2) drive software improvement, and 3) network with peers to learn best practices is to re-evaluate the value of membership for maintenance and reliability professions in ASUG.

Insight

There are two other possible answers to the low number of ASUG members identified in the survey. First, since SAP is a software tool, IT (Information Technology) is representing the organization within the ASUG community. The other reason is that the company does not feel that membership is necessary and hence does not participate. In either case, valuable input and value is being lost. Through user conferences, special interest groups, and local chapters, this is the method by which the user community can influence product development. It also provides users within one company to network with their peers and improves their utilization of the software.

(22)

Summary

Many maintenance practitioners have expressed dissatisfaction with SAP PM’s ability to support maintenance activities. There are many possible reasons for this opinion; however, the survey results contained in this report in many ways dispel this belief.

Change is difficult. It can be made even more difficult when an

organization such as maintenance is forced to abandon their legacy CMMS and learn to utilize a new one, especially if they have not had a great deal of input into the decision. This, coupled with low levels of training, can foster resistance to the change, delaying deployment, causing frustration in those who have to learn new ways to work, and ultimately resulting in expressed dissatisfaction with the software. These problems can and must be overcome not just for success in the maintenance arena, but for success across the company.

They key is to address the implementation as a process, not a project. The new software and its associated work processes need constant care and feeding if you expect them to integrate into the organization’s culture. There are eight key points to consider.

They are referred to as the

Eight Elements of Change.

• Leadership

– The leaders must be visibly committed to the success of the effort remembering that it is a process change, not a project with a finite end point.

• Work Process

– The work process must adapt to the new software without loss of the value that existed in the former process, but gaining the value offered by the new software.

• Structure

– Where necessary, the structure may need alteration to be able to accommodate the process changes. This is an opportunity to leverage improved maintenance performance such as hiring full-time planners and a separate work scheduler.

• Learning

– As we have seen, training is critical, not just during implementation but on a continuous basis. It improves acceptance and use, and avoids loss of functionality as employees train their replacements when they leave the job.

• Technology

– Maximum use of the software (SAP PM and other identified tools) is important to acceptance. Legacy tools such as Microsoft Excel and Project, while they have their place, should not be an acceptable alternative to the use of SAP PM functionality.

• Communication

– It is important that constant communication take place about the effort. People are afraid of change, and without information about what is happening, they create it, often to the detriment of the effort.

• Interrelationships

– New software and the associated process changes have a way of breaking the strong interrelationships among people and departments. These interrelationships are how things get done. Now they are going to be different. If this aspect of change is not considered, confusion will be the result.

Satisfaction with SAP

PM is influenced by a

number of factors:

• Tracking all work

• Tracking all spares

• Reporting mastery

• Customization—

modifying SAP PM and

internal plant process for

better alignment; use of

third-party technologies

to “bridge the gap”

• Consultants—use of

outside consultants to

drive that customization

• Training—training all

maintenance employees

and keeping up with

continuing education

regarding SAP PM

Moving toward Best

Practice strategies

to bridge the gap in

any of these areas

will go a long way

toward enhancing user

satisfaction which also

would be indicative of

more effective use of

SAP to support effective

maintenance processes.

(23)

• Rewards

– The reward when deploying a powerful new software tool is the value it brings to the company’s bottom line. If people understand this and can see the results, they will be far more involved with trying to make the effort a success.

Steve Thomas

has 40 years of experience working in the petrochemical industry. During this time, through personal involvement at all levels of the maintenance and reliability work process, he has gained vast experience in all phases of the business. Coupled with a B.S. in Electrical Engineering from Drexel University and M.S. degrees in both Systems Engineering and Organizational Dynamics from the University of Pennsylvania, this experience has enabled him to add significant value to the many projects on which he has worked. In addition, he has published six books on this and other subjects through Industrial Press, Inc., and Reliabilityweb.com., the most recent being Asset Data Integrity is Serious Business and Measuring Maintenance

Workforce Productivity Made Simple, both of which were published in October 2010.

Authors

This report was written by Steve Thomas

with additional insights by Terry Wireman, CPMM,

and Terrence O’Hanlon, CMRP

Terry Wireman

Mr. Wireman helps organizations develop “Best-In-Class” maintenance and reliability policies and practices. As an international expert in maintenance management, he has assisted hundreds of companies in North America, Europe, and the Pacific Rim to improve their maintenance effectiveness. In addition, he has authored twenty-three textbooks, numerous white papers, and magazine articles related to maintenance management process and technology. Mr. Wireman has been a featured speaker at conferences, technical association events and University sponsored workshops, domestically and internationally.

Terrence O’Hanlon

Terrence O’Hanlon, CMRP is the Pub-lisher of Reliabilityweb.com and Uptime Magazine. He is a Certified Maintenance & Reliability Professional and is the acting Executive Director of the Association for Maintenance Professionals (AMP). Mr. O’Hanlon is also a member of the American Society of Mechanical Engineers, The Association of Facilities Engineers, Society of Maintenance and Reliability Professionals and the Society of Tribologists and Lubrication Engineers. Reliabilityweb.com is an online community of over 55,000 maintenance and reliability professionals worldwide created in 1999. A free weekly e-mail newsletter with tutorials, articles, tips and more is available online at: http://www.reliabilityweb.com

If you are a current SAP PM user, we hope you can use this information to improve your use of this very valuable tool and the other software tools that support it. This change for the better will vastly improve not only the use of the software, but far more importantly, your maintenance

management work processes, productivity, reliability, and ultimately the bottom line performance of your company.

If you are interested in learning more about the SAP PM Best Practices Survey, please feel free to e-mail Terrence O’Hanlon at the address below.

Reliabilityweb.com • PO Box 60075 • Fort Myers • FL 33906 USA tohanlon@reliabilityweb.com • www.reliabilityweb.com

SAP for Plant

Maintenance

According to the

German standard

DIN 31051, plant

maintenance comprises

“all measures for

maintaining and

restoring the target

condition as well

as determining and

assessing the actual

condition of the

technical equipment

in a system.”

Whereas DIN 31051

applies to the individual

parts of a system and

associated measures,

system-oriented plant

maintenance focuses

on safeguarding

the functioning of a

production system

as a whole. Plant

maintenance in this

sense belongs to system

logistics, the primary

goals of which are

planning, creating and

maintaining system

availability.

Excerpted from

SAP R/3 Plant

Maintenance:

Making It Work

for Your Business

Addison-Wesley

Professional

ISBN: 0201675323

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