SAP Enterprise Asset Management Supporting ISO 55001...Supporting ISO 55001 The new ISO 55000 series on Asset Management is asking more than ever before for establishing an integrating

SAP Enterprise Asset Management

Supporting ISO 55001

Dr.-Ing. Achim Krüger – VP, Operational Excellence Solutions – SAP AG

Walldorf, September 16th, 2013

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© 2013 SAP AG. All rights reserved. 2 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.

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Supporting ISO 55001

The new ISO 55000 series on Asset Management is asking more than ever before for establishing an integrating asset

management system. This is involving information technology spanning the whole lifecycle of physical assets and

addressing cost, risk, and performance. Additionally, we are living in a period of major and disruptive changes to

technology, processes, and business models. Assets are getting smarter and smarter,

allowing for machine-to-machine communication; boundaries between manufacturers,

service providers, owners and operators are blurring more and more.

Achim will elaborate on how SAP Enterprise Asset Management can help with the new challenges

and also gain benefits from the new boundary conditions.

This will include mobile, in-memory analytics, asset visualization, and other pieces of functionality.

Dr.-Ing. Achim Krüger started his career as an officer with the German Air Force.

He held several positions in the areas of maintenance of helicopters and transport aircraft

as well as systems engineering, before he worked in higher commands as a logistics general

staff officer. Joining SAP Germany in 2002 Dr. Krüger first served as a consultant before

establishing the SAP for Defense & Security industry portfolio at SAP AG. After several other duties

in Solution Management and Development Dr. Krüger is now responsible as a Vice President for SAP's solutions in the area of

Operational Excellence. Dr. Krüger obtained a degree in aerospace engineering from the University of the Federal Armed Forces

at Munich as well as a degree in economics from the University of Hagen. For his thesis on the fatigue life behavior of metallic

materials he was awarded a doctorate in engineering.



Supporting ISO 55001 – Agenda

Boundary Conditions

What is "Operational Excellence"?

Overview Asset Management

Dealing with Big Data

Visualization and User Experience

Mobile

Risk & Safety

Summary and Conclusion




Boundary Conditions





Mobile

Risk & Safety


What is influencing the way we are doing business?

Smart

assets

Internet

of Things

Machine-

to-machine

Mobilization

Shop-floor

to top-floor

Integrated

value chains

Social

networks

Sustainability

Big

data Knowledge

management

Operational

Integrity




Boundary Conditions





Mobile

Risk & Safety



Idea to Performance

Lifecycles become more parallel and shorter

Service

Product Development

Idea & Portfolio Planning

Ramp-Up to Production

Knowledge Ramp-Up

Manufacturing Planning

Manufacturing

Environment

Health & Safety

Asset Operations

Sourcing

Typical Sequential Process Steps

plan

The product lifecycle:

Idea to Performance


Idea to Performance

Lifecycles become more parallel and shorter

Product and asset lifecycle overlap

From sequential steps to connected networks

From complex flows to synchronized information

From local views to business insights

Innovation driven by connected teams

Execution driven by connected processes

Satisfaction driven by connected customers


Evolution of Operational Excellence

ISO 55001 perspective

Whole

organization

Asset Portfolio

Asset Systems

Individual Assets

Pe

rfo

rma

nce

& V

alu

e R

ea

liza

tio

n A

sse

t Ma

na

ge

me

nt O

bje

ctiv

es

Imagine Design Plan Service Make


Idea to Performance

Value Map of End-to-End Solutions

Operational Excellence

Responsive Manufacturing

Repetitive

Manufacturing

Make-to-Order

Manufacturing

Engineer-to-Order

and Project Manufacturing

After-Market Service Sustainable Innovation

Integrated Product Development

(DI)

Integrated Product Development

(PI)

Continuous Product

and Service Innovation

Environment, Health and Safety

(aka Operational Risk Mgmt)

Capital Portfolio and Project

Management

Outsourced

Manufacturing

LEAN Manufacturing Manufacturing Visibility

and Performance

Product Safety

and Stewardship

Energy and Environmental

Resource Management

Asset Visibility

and Performance

Quality Management

and Compliance

Asset Operations

and Maintenance

Multichannel

Customer Service

Field Service

Management

Complaints, Returns, and

Depot Repair Management

Service Contract

Management


17% Higher return on assets where asset management

systems are fully integrated, with

inventory management, MRO,

purchasing, engineering and

finance.

Source: SAP Performance Benchmarking

40% Higher employee

productivity when mobile access is provided

to employees

across all levels.

Idea to Performance

Quantifying the Impact of Operational Excellence

61% Higher revenue

from new products when portfolio goals are

communicated throughout

the organization and results

are measured and reported

79% Lower recordable

accident frequency with establishment and

monitoring of strong safety

measures for people and assets.

40% Lower scrap when quality system supports supply

chain planning, root cause analysis,

quality notifications, and advanced

product quality planning.


Idea to Performance

The Product and the Asset Lifecycle: two Perspectives

Asset Portfolio and Commissioning

Asset Operations and Maintenance

Asset Visibility and Performance

Real Estate Lifecycle Management

Plan and

design

Procure

and build

Com-

mission Operate Maintain

Decom-

mission


Sustainable Innovation

Responsive Manufacturing

Operational Excellence

After-Market Service

Imagine Design Plan Make Service

Idea to Performance Asset Management


Idea to Performance

Product and Asset Lifecycle are interconnected

Plan and

design

Procure

and build

Com-

mission Operate Maintain

Decom-

mission

Imagine Design Plan Make Service

Product Asset

Owner as designer

Mfg. Supplier

Design

Supplier

Manufacturer

Local

Factory/

Plant

3rd Party Service Provider

Sales Owner

& Operator

Owner as Manufacturer

Distributed

Manufacturing

Design

Collaboration

Embedded Compliance

Supplier collaboration

Predictive Maintenance

Customer centric

service

Factory Visibility

Performance monitoring

Connected

Customer




Boundary Conditions





Mobile

Risk & Safety



Asset Management

ISO 55000 series influencing our processes

The ISO 55000 series will be published end of 2013.

An official ISO standard will deeply influence the

significance of asset management in our companies.

It will also promote a better link between board level

decisions and asset management when maximizing value

from the portfolio of assets while delivering

on corporate strategic objectives.

And finally, the holistic idea of asset management will drive

a more comprehensive CAPEX/OPEX planning, together

with an integrative view on environmental health and safety,

quality, energy, asset management.

//upload.wikimedia.org/wikipedia/as/9/9a/ISO_english_logo.png



The ISO Principles for Asset Management

A: Assets exist to provide value to the organization and its stakeholders.

Focus on value, can be both financial and non-financial.

The value to be realized from assets is determined from the organization’s objectives.

B: Asset management transforms strategic intent activities, decisions and tasks.

Enable the achievement of the organization’s strategic objectives, both technical and financial .

C: Leadership and workplace culture are determinants of value realization.

Leadership and commitment from all levels of management are essential.

The leadership style of the organization should match the organizational objectives.

Engaged employees understand the organizational purpose and pursue the organization’s objectives and goals.

D: Asset management provides assurance that the assets fulfill their required function.

The need for assurance arises from the governance processes of an organization.

It links the top management of an organization to the asset management system.




Asset Management – more than just Maintenance

Covering the entire lifecycle of physical assets…

SAP Enterprise Asset Management supports organizations in efficiently and sustainably

managing the entire lifecycle of physical assets in terms of performance, risks, and

expenditures to achieve and maintain the stated business objectives.

[referring to PAS55 ISO 55000]







The Owner & Operator Perspective: Asset Management

Focus on the complete asset lifecycle

Asset Visibility

and

Performance

Asset Performance

Measurement

Asset Improvement

Programs

Optimize

Maintenance and

Plant Operations

EH&S

(Operational

Risk

Management)

Incident Management

Environment, Health,

and Safety Risk

Assessment

Management of

Change

Maintenance Worker

Safety Management

Work Permit

Management

Asset Portfolio

and

Commissioning

Asset Portfolio

and Project

Management

Asset

Information

Management

Asset Portfolio

Management

Capital Project

Management

Prepare and Deploy

Asset Information

Monitor and Maintain

Asset Information

Asset

Operations

and

Maintenance

Maintenance

Operations

Maintenance

Parts and

Services

Provisioning

Mobile Asset

Management

Asset Planning and

Scheduling

Operations and

Maintenance

Service Procurement

Spare Parts

Management

Mobile Asset

Management

Quality

Management

and Compliance

Corporate Quality

Quality Planning

and Control

Quality Operations

Energy and

Environmental

Resource

Management

Energy Transparency

and Performance

Management

Energy and

Environmental

Initiatives

Management

Emissions

Management

Environmental

Regulatory

Compliance

Real Estate

Lifecycle

Management

Investment and

construction

Sales and

marketing

Lease and space

management

Maintenance and

repair


The Owner & Operator Perspective: Asset Management

Focus on the complete asset lifecycle

Asset Visibility

and

Performance

Asset Performance

Measurement

Asset Improvement

Programs

Optimize

Maintenance and

Plant Operations

EH&S

(Operational

Risk

Management)

Incident Management

Environment, Health,

and Safety Risk

Assessment

Management of

Change

Maintenance Worker

Safety Management

Work Permit

Management

Asset Portfolio

and

Commissioning

Asset Portfolio

and Project

Management

Asset

Information

Management

Asset Portfolio

Management

Capital Project

Management

Prepare and Deploy

Asset Information

Monitor and Maintain

Asset Information

Asset

Operations

and

Maintenance

Maintenance

Operations

Maintenance

Parts and

Services

Provisioning

Mobile Asset

Management

Asset Planning and

Scheduling

Operations and

Maintenance

Service Procurement

Spare Parts

Management

Mobile Asset

Management

Quality

Management

and Compliance

Corporate Quality

Quality Planning

and Control

Quality Operations

Energy and

Environmental

Resource

Management

Energy Transparency

and Performance

Management

Energy and

Environmental

Initiatives

Management

Emissions

Management

Environmental

Regulatory

Compliance

Real Estate

Lifecycle

Management

Investment and

construction

Sales and

marketing

Lease and space

management

Maintenance and

repair

PPM

ERP-PS

EPC

MDG

Data Services

Information Steward

MII

Meridium

Inventory Manager

Work Manager

Rounds Manager

ERP-PM

LAM

MRS

ERP-MM

SRM

EHSM

WCM

MoC

ERP-RE

CRM

PPM

ERP-PS

ERP-PM

ERP-QM

QIM

MII

PPM

EC

EEI


The Asset Management Landscape http://www.gfmam.org/files/ISBN9780987179913_LANDSCAPE.pdf

Subject Group Asset Management Subject

Asset Management

Strategy and Planning

Asset Management Policy

Asset Management Strategy

Demand Analysis

Strategic Planning

Asset Management Plan

Asset Management Decision-Making

Asset Management

Decision-Making

Whole-life Cost & Value Optimisation

Operations & Maintenance Decision-Making

Capital Investment Decision-Making

Resourcing Strategy & Optimisation

Shutdowns & Outage Strategy & Optimisation

Ageing Assets Strategy

Lifecycle Delivery

Activities

Technical Standards & Legislation

Asset Acquisition & Commissioning

Systems Engineering

Configuration Management

Maintenance Delivery

Reliability Engineering

Asset Operations

Resource Management

Subject Group Asset Management Subject

Lifecycle Delivery

Activities

Shutdown & Outage Management

Fault & Incident Response Asset Rationalisation and Disposal

Asset Knowledge

Enablers

Asset Information Strategy

Asset Knowledge Standards

Asset Information Systems Asset Data and Knowledge

Organization and

People Enablers

Contract & Supplier Management Asset Management Leadership

Organizational Structure & Culture

Competence & Behaviour

Risk & Review

Criticality, Risk Assessment and Management

Contingency Planning & Resilience Analysis

Sustainable Development

Weather and Climate Change

Asset & Systems Change Management

Assets & Systems Performance

& Health Monitoring Management Review, Audit & Assurance

Accounting Practices Stakeholder Relations

http://www.gfmam.org/files/ISBN9780987179913_LANDSCAPE.pdf

http://www.gfmam.org/files/ISBN9780987179913_LANDSCAPE.pdf




Boundary Conditions





Mobile

Risk & Safety



Asset Management Strategies

Various stages of maturity complement each other

Mai

nte

nan

ce S

trat

egie

s

Dec

ide

on

Str

ateg

ies

Ho

listi

c En

terp

rise

Ass

et M

gmt

tact

ical

to

str

ateg

ic

fragmented to integrated

Source: taken from Gartner and modified.


Analyzing big data

Need for a breakthrough technology

Broad

Deep

High Speed

Simple Real-time

Complex & interactive questions

on granular data

Big data, many

data types

Fast response-

time,

interactivity

No data preparation, no

pre-aggregates, no

tuning

Recent data,

preferably real-time

SAP HANA can cover all these aspects…

Broad

Deep

High Speed

Complex & interactive questions

on granular data

Big data,

many data types Fast response-time,

interactivity

Simple Real-time

No data preparation,

no pre-aggregates, no tuning

Recent data,

preferably real-time


SAP HANA

In-Memory computing: Rethink the business opportunity!

Knowledge is information put

into context!

Data that you want to use to

create instant knowledge

must sit in one platform.

If the amount of data is huge,

you have to use in-memory

technology for getting rid of

batch processing.

Yesterday

Disk

Memory

CPU

Software and data reside on HDD

• IO constraint

• Support many platforms

• Optimized for None

Today

Partitioning

Insert Only on Delta Compression

Row and Column Store

No aggregates

+ +

+ +

Memory

Logging and Backup –

Solid State / Flash / HDD

Multi-Core

Massively Parallel

SingleOptimized Platform

64-bit address space

supports 2TB RAM

100GB/s throughput

• Take advantage of latest advances in hardware

• Minimum IO time

• Optimized for x86 platform

Disk

CPU

+


SAP Predictive Analysis

for generating forecasts on asset management information

Combine technical and

business data

Derive decisive knowledge

optimizing cost, risk, and

performance

Repair or inspect before

you experience an

unplanned downtime

Analyze your spending

Operate your assets in

windows of integrity


SAP Enterprise Asset Management on HANA

What is new and what is coming…

Improved scheduling of

maintenance plans

Real-time material planning

Maximize productivity of

complex projects

Accelerated ERP transactions

Provide views and query for

most PM objects

Queries and calculation views

for online reporting / analysis

Improved SAP Asset Analytics

with BW on HANA (planned)

SAP Condition-Based

Maintenance (CBM) to collect

real time shop floor data for

analysis on HANA

HANA analytics and reporting

HANA-based applications

Use Predictive Analysis for

forecast of cost and spare parts

Predictive maintenance to

forecast potential failure based

on real time data (planned)

Predict cost of maintaining

assets and prepare CAPEX and

OPEX budgets (planned)

Energy and Environmental

Resource Management (EERM)

with HANA analytics to manage

your most important invisible

asset - energy




Boundary Conditions





Mobile

Risk & Safety



User Experience

Many of our customers still on SAPGUI

2000 SAP R/3 4.6c


Maintenance Worker in NetWeaver Business Client (WebDynpro)

SAP ERP 6.0 Enhancement Packages 5 and 6

2010/11


SAP Screen Personas

What if you could easily build a GUI like this one?

http://wiki.scn.sap.com/wiki/display/Img/SAPScreenPersonas




SAP Screen Personas

Customer Example

Copy your

SAPGUI dynpros

Modify them according to

your needs

Power users can

provides templates

Let the end user adjust

and personalize them

Responsible group

is mapped to SAP

fields planner group

and main work

center

Priority selection is

mapped to SAP

fields coding and

priority

Script to get

creator’s SAP User

Script allows the

user to create

notification without

leaving screen

Script to list and get

functional location


Integration of all needed information into a one-stop shop

for the asset management & maintenance people


Introducing SAP Fiori https://experience.sap.com/fiori

A collection of apps with a simple, easy

to use consumer-grade user

experience for broadly and frequently

used SAP software functions that work

seamlessly across devices

– desktop

– tablet, or

– smartphone

SAP NetWeaver Gateway

SAP Business Suite

SAP Mobile

Platform*

Desktop & Mobile Web

Browser (HTML5) Hybrid Web

Container

* planned

https://experience.sap.com/fiori

https://experience.sap.com/fiori


SAP's UI Strategy

ENABLE

NEW

RENEW

After Before

1. PROVIDE consumer app UX for NEW applications 2. RENEW widely used use scenarios

3. ENABLE customers to improve UX of their specific value scenarios




Boundary Conditions





Mobile

Risk & Safety




Overview on solutions for Mobile Asset Management

Boost productivity, reduce cost, gain a 360-degree view of operations, and increase asset

longevity by enabling mobile operation of SAP Enterprise Asset Management

Work order management (SAP Work Manager mobile app):

Facilitated work order flow across a variety of mobile devices

Cross-application time sheet (CATS) – time and attendance

Online and offline mode

Maintenance and operator rounds (SAP Rounds Manager mobile app):

Measurement and pointer readings

Rounds by equipment type or name

Creation of notifications on the spot

Inventory management (SAP Inventory Manager mobile app):

Perform physical and cycle counts quickly

Check material availability while on the job

Pre-pick spare parts based on work orders



The SAP Work Manager

Maintain your work orders

on a mobile device even

when being offline.



The SAP 3D Visual Enterprise Viewer

Have access to 3D

visual repair instruction

on your mobile device.

Additional information

can be embedded into

the 3D documents.


Scope Key benefits


Road map of enhancements for Mobile Asset Management

Further integration of mobile apps

GEO-Enablement: Geospatial visualization on the mobile

device as part of work order management process

Support of processes of SAP Linear Asset Management

Integrated SAP Visual Enterprise Viewer for animated

work instruction and spare parts selection processes

Integrate with processes from worker safety and work

clearance management

Enhanced support for inspection processes

Additional standard languages besides English

UI and navigation enhancements

Global applicability across many industry

Increased ease of use

Boosted productivity

Reduced cost

A 360-degree view of operations

Increased asset longevity




Boundary Conditions





Mobile

Risk & Safety



SAP Environment, Health & Safety Executive insight & holistic view of sustainability performance

Corporate

Individual

Site Management

Incident Mgmt Management of

Change Worker Safety

Risk Assessment Work Clearance

Management

Mobile

Explorer Sustainability

Perf Mgmt Audit Mgmt


Asset Operations and Maintenance Worker Safety – overall concept

Work clearance

Management

Create risks

and responses

Assign risks to

maintenance objects Safety plan in ERP PM

Risk management* Work clearance management* Worker safety

Worker safety in

job execution

* optional


Solution highlights Recent enhancements

Asset Operations and Maintenance Manage potentially hazardous routine and non-routine work activities

Work clearance and work permit management

Approval process

Various levels of work permits

Assignment of different work permits to an order

Temporal control of work permits

Integration into maintenance processes

Full integration with SAP Enterprise Asset Management: no

separate system

Easier to learn and use

Standardized procedures

Various customer-specific enhancement options (BAdIs)

Authorization process

Temporal control of work permits

Library of work clearance document templates

Lockout and tagout


Solution enhancements Key benefits

Asset Operations and Maintenance Worker safety capabilities embedded

Integration with either SAP Risk Management or SAP EHS

Management, allowing relation of risk information to individual

assets

Safety information and precautions displayed on shop papers

Requirements for affirmations

and approvals indicated on

shop papers

Safety measures and precautions can be determined by a risk

expert but displayed in the worker's normal system

Maintenance planners can add additional safety information

Information is linked to specific asset so that it does not have to be

created new each time


Solution enhancements Key benefits

Environment, Health & Safety SAP Management of Change

Effective management of change for changes of products,

procedures, processes, equipment, and so on

Consistent and auditable management of changes

User-friendly UI that motivates all employees in a plant to

communicate change requests

Timely and effective completion of reviews, approvals, and all

actions to implement the change (update documentations,

trainings, master data, and so on)

Easier-to-customize solution and shipment of templates to

decrease implementation and adoption costs

A product independent of the releases of SAP Business Suite; a

networked application on premise

Streamline different change processes across the company and

make them more efficient

Ensure that employees follow a company´s procedures and record

change requests

Increase visibility and share best practices to reduce incidents,

ensure compliance, and mitigate risks

Ensure that a structured change-process occurs that complies with

all regulatory and other requirements




Boundary Conditions





Mobile

Risk & Safety









Recent innovations and talking points

Improvements in Portfolio &

Project Management (PPM)

RDS Asset Analytics

PM/PS Integration

RDS Asset Data Quality

Multiresource

Scheduling

Linear Asset Management

SAP Work Manager

mobile app

SAP 3D Visual Enterprise GIS integration

Predictive Analysis

Work clearance and work

permit management

Management of Change

Worker safety EAM on HANA

RDS Condition-

based Maintenance

Continuous Improvements



Supporting ISO 55001 – Summary and Conclusion

Operational Excellence aims on total visibility about asset performance, environment, health & safety risks, energy consumption, and quality.

SAP' solutions in the categories of applications, SAP HANA, mobile, analytics, and cloud help control cost, risk, and performance.

Users in asset management and operations get access to the information they need, in the format they need it, and at the site they need it.

SAP has added a lot of innovation and integration between its solutions for Operational Excellence, yet more to come.

All these solutions support the paradigm of holistic asset management according to ISO 55001. Please check the Asset Management Landscape for details.

Finally, let's keep it with Charles Darwin: "It is not the strongest nor the most intelligent of species that survives, but the one that is most adaptable to change."

Questions?

More information:

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http://service.sap.com/roadmap

http://scn.sap.com/community/eam

http://www.sap.com/solutionexplorer

Twitter: @EAMatSAP

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http://scn.sap.com/community/eam

http://www.sap.com/solutionexplorer


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SAP Enterprise Asset Management Supporting ISO 55001...Supporting ISO 55001 The new ISO 55000 series on Asset Management is asking more than ever before for establishing an integrating