SAP R/3 Plant Maintenance: Making It Work for Your Business

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Overview

SAP R/3 Plant Maintenance offers a clear introduction to this small but sophisticated component and provides a highly practical guide to implementing PM. Beginning with a examination of the key business processes underlying PM functionality, the book goes on to cover all the crucial aspects of maintenance planning and execution in R/3. Particular attention is given to integrating plant maintenance with a company's natural process flow.

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Editorial Reviews

Booknews
SAP's plant maintenance and customer service consultants introduce R/3 PM (plant maintenance) as a small but sophisticated component of the R/3 system for carrying out plant maintenance with SAP. They offer a practical guide for project teams or consultants involved in implementing the component, and for students who work with the logistics component of the R/3 system. They assume readers know how to operate the R/3 system. Annotation c. Book News, Inc., Portland, OR (booknews.com)
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Product Details

  • ISBN-13: 9780201675320
  • Publisher: Addison-Wesley
  • Publication date: 5/11/2001
  • Series: SAP Press Series
  • Edition description: New Edition
  • Pages: 368
  • Product dimensions: 7.50 (w) x 9.50 (h) x 1.03 (d)

Meet the Author

Britta Stengl is a certified Plant Maintenance (PM) and Customer Service (CS) consultant of many years' experience. She works for SAP AG at its headquarters in Walldorf, Germany.

Reinhard Ematinger is a certified Plant Maintenance (PM) and Customer Service (CS) consultant of many years' experience. He works for SAP AG at its headquarters in Walldorf, Germany.

0201675323AB07032001

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Read an Excerpt

Preface I

Given the current international discussion of changing markets, the accompanying trend towards globalization of business processes and the increasingly evident revolution in intercompany communication via the internet, it is all too easy to lose sight of the fact that optimized and harmonized production processes are the basic prerequisites for raising corporate IQ. It is precisely these aspects that form the starting point for the Plant Maintenance (PM) component in the SAP R/3 System.

This book has been written as a compendium for members of specialist teams. It provides interdisciplinary groups with a clear implementation guide, and aims at developing a new understanding of the software-assisted procedures in preventive and breakdown maintenance within a location. The book also presents a detailed discussion of technical implementation, thus enabling not only IT departments but also users to implement the process flows they actually require in the system. This knowledge will ultimately allow user departments to respond quickly and independently to changing demands, and adjust their workflows accordingly.

Using explanatory examples, the authors describe the practical day-to-day process flows clearly and unambiguously. The book is designed to cover all the topics relevant to maintenance planning and execution, as well as business processing of tasks, procurement, refurbishment of spare parts, and external services. Particular attention is given to integrating plant maintenance in the natural process flow of a company. To this end, integration of the PM component in the environment of Materials Management, Purchasing, Production, and Payroll is described in detail. Once the Plant Maintenance component has been successfully implemented, users can consider linking non-SAP systems at management level, as well as an Internet connection for quotation processing. When the internal process flows have been synchronized, companies have virtually unlimited options for optimizing their internal information flows.

Walldorf, January 2000
Ringo Kairies Consulting Director Process Industry SAP AG

Preface II

The R/3 Plant Maintenance (PM) component from SAP is targeted at an area that may appear somewhat unspectacular when compared with business management in the areas of sales and production. As I will show, however, the PM component does more than merely add another cost planning area to those already covered by the R/3 System; it also provides specific new functionalities that enable SAP users to handle an area crucial for their strategic success.

In Western European economies, expenditure on maintaining production systems, public infrastructures and privately operated systems accounts for over 10 per cent of gross national product (Warnecke 1992). Although there are cases where it cannot be strictly delimited from investment costs (largely because there is a certain technical scope for substitution), plant maintenance planning accounts for an overwhelming volume of expenditure and must, therefore, be carried out efficiently. Economic planning of this type is of crucial importance, since the current trend is towards increased expenditure on plant maintenance. This is chiefly due to the growing complexity of production systems, which, in turn, is a result of progressive functional integration and automation. These production systems, which support the increasing productivity crucial for market competition, require ever more investible funds. While systems of this type continue to represent a structural increase in plant maintenance expenditure, this expenditure is, in some cases, being replaced by investment expenditure (partly as a result of the diminishing product and system life cycles as part of the optimization of life cycle/usage costs via asset management) (Biedermann 1990).

For these reasons, plant maintenance will remain an exceptionally important area for applying business methodology — above all, in the areas of process control and cost management. A significant number of companies are now able to leverage their specialized production know-how as a strategic competitive factor. In such companies, there is also the potentially profitable chance that plant maintenance will be innovatively extended, becoming a key factor for competitive expertise in managing production effectiveness.

Optimizing the overall effectiveness of systems and assets is a key goal for cost management in plant maintenance. One way of achieving this goal is to systematically deploy modern organizational methods and plant maintenance strategies — such as condition-based maintenance (CBM), continuous improvement programs (CIP), and specialist teams to ensure that plant maintenance is carried out as efficiently as possible.

In addition to this, cross-sector benchmarking can be applied to provide further starting points for increasing plant maintenance efficiency in accordance with the principles of Business Process Reengineering (BPR) with innovative advances toward designing best practice processes.

Given the advent of BPR and outsourcing, the pragmatic question that must be addressed is whether companies can ensure the diversity and depth of specialist knowledge required to continue autonomously developing practical expertise in production technology (to the extent that this represents a core competency). Finally, the increasing orientation of companies to monetary markets and customer demands has given rise to an area of business activity for plant maintenance specialists, the importance of which is not to be underestimated. Here, maintenance management plays an active part in the process of target costing, especially in the 'design to cost' development phase.

The predefined structures of the PM component provide comprehensive support for mapping the characteristic features of corporate plant maintenance in data processing systems. The component is also extensively integrated in a networked planning and financial environment, which covers all the activities of an enterprise. This ensures that all the information required for controlling plant maintenance is available holistically across all production activities involving systems. In addition to this, the powerful tried-and-tested tools for implementing targeted aggregation, as well as differentiated, comprehensible and assessable representations of company activities, help prevent those responsible for plant maintenance from being flooded with details, thereby enabling them to concentrate more on technical improvement considerations. The comprehensive functionalities of SAP R/3 and the PM component will ensure targeted support for this welcome trend.

Leoben, January 2000
Jurgen Wolfbauer Professor of Business Administration and Industrial Management Montanuniversitat Leoben, Austria

Preface III KEEPING THE ROLLING STOCK ROLLING

It is now a good few years since we at the transport companies of VOEST ALPINE Stahl Linz (Austria) realized that IT support was essential for repairing our own and external rolling stock efficiently. Back then, we tested the SAP RM-INST, which was still in its infancy, and came to the conclusion that it did not meet our specific requirements. The reason? Our plant maintenance processes (surprise, surprise) were totally different from those of other companies. Quick as a flash, we set two students to the task of developing a tailor-made system for making quotations and creating maintenance task lists.

The years went by, technology rolled inexorably on, modern systems were installed throughout the company, and our process flows were optimized. Throughout the company, SAP applications were installed, and more and more interfaces had to be developed and maintained, until . . . well, until our system could no longer cope. By this time, the original developers had disappeared without trace, and our IT solution was creating more problems than it solved. Nothing matched up with anything else; we had reached the stage where we had to work in several systems to process business orders; and the problems were getting out of control.

EVERYBODY'S TALKING ABOUT SAP R/3. COULD THIS BE THE SOLUTION FOR US?

The answer is, of course, yes! It did not take long to convince our transport personnel of the benefits of the SAP R/3 Service Management and Plant Maintenance modules for their day-to-day work. Soon everyone was asking: if other people are satisfied with the system, why can't we use it too? After all, we already had the system in-house; we 'only' needed to implement it, didn't we?

We soon put together a team, which faced up to the challenge and got to work on putting ideas and potential improvements into practice. In addition to ensuring a friendly atmosphere, the project leader made sure that the team worked as a team. Not even a change in market requirements, which radically changed the direction of the project, could dampen the team's spirit. The plant maintenance personnel soon realized that the Plant Maintenance module contained everything they needed to carry out their work — and that our plant maintenance processes were not so different from those of other companies after all. With support from SAP, our highly motivated team achieved its goals and the users are more than satisfied with the result. They now work in one thoroughly stable, integrated system, and cannot imagine working any other way.

We can now honestly say that our decision was the right one. By opting for the PM component, we have invested in the future. Keeping up with the pace of development demands a constant supply of up-to-the-minute expertise. Our decision in favour of R/3 has not only provided us with a state-of-the-art system, it also ensures us further development by SAP.

Linz, January 2000
Peter Ustupsky Information Systems (Production)

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Table of Contents

Contents

Preface I

Preface II

Preface III

INTRODUCTION

1.1 Business Processes and Roles

1.2 Structure of this Book

1.3 Target Groups

1.4 Working with this Book

CLASSIFYING PLANT MAINTENANCE FROM A

BUSINESS PERSPECTIVE

2.1 Definitions

2.1.1 Plant maintenance to DIN 31051

2.1.2 System-oriented plant maintenance

2.1.3 Extended plant maintenance

2.1.4 Malfunction and breakdown

2.2 Traditional Forms of Organization in Plant Maintenance

2.2.1 Plant maintenance in line organization

2.2.2 Plant maintenance in the line-staff organization structure

2.2.3 Plant maintenance in matrix organization

2.2.4 Classification of external plant maintenance

2.3 Planning in Plant Maintenance

2.3.1 Planning and control

2.3.2 Strategy plans and maintenance task lists

2.4 Plant Maintenance Methods

2.4.1 Damage-based plant maintenance

2.4.2 Time-based plant maintenance

2.4.3 Condition-based plant maintenance

2.5 Benchmarking in Plant Maintenance Based on Key

Performance Indicators

2.6 Modern Plant Maintenance Management

2.6.1 Total Productive Maintenance (TPM)

2.6.2 Reliability Centred Maintenance (RCM)

2.6.3 Life Cycle Costing

2.6.4 Decentralized Equipment and Process Responsibility

(DAPV)

2.6.5 Other trends

GETTING STARTED WITH RELEASE 4.6

3.1 The PM Menu with Easy Access

3.1.1 How to display the maintenance processing menu

after logging on to R/3

3.1.2 How to display a role-specific PM menu after logging on

3.1.3 How to add Internet pages and files to your menu

3.2 The Business Workplace

3.2.1 Working with the Business Workplace

3.3 Support Line Feedback as an Interface to SAP

3.3.1 How to create an R/3 notification

3.3.2 How your support team processes the R/3 notification

3.3.3 How to activate support line feedback

3.4 PM Documentation in the SAP Library

3.5 How to Call up PM Documentation in the SAP Library

3.5.1 How to call up release notes on PM

3.5.2 How to call up PM documentation in the implementation

guide (IMG)

3.5.3 How to call up PM terms in the glossary

OBJECTS IN R/3 PM

4.1 Managing Technical Objects

4.1.1 The concept of plants in the R/3 System

4.1.2 Maintenance plants and maintenance planning plants

4.1.3 How to define a plant as a maintenance planning plant

4.2 Functional Locations and Equipment

4.2.1 Functional locations

4.2.2 Equipment

4.3 The Most Important Transactions for Functional Locations and

Equipment

4.4 Using other Logistics Master Data in PM

4.4.1 Material

4.4.2 Assembly

4.4.3 Serial numbers

4.4.4 PM bill of material

4.4.5 The most important transactions for other Logistics master

data

4.5 Measuring Points and Counters

4.5.1 The most important transactions for measuring points and

counters

4.6 PM Work Centres

4.7 Maintenance Task Lists and Maintenance Plans

4.8 Maintenance Notifications

4.9 Maintenance Orders

BUSINESS PROCESS: BREAKDOWN MAINTENANCE AND CORRECTIVE MAINTENANCE

5.1 Tasks of the PM Technician

5.1.1 Basics of maintenance notifications

5.1.2 Activity reports

5.1.3 Malfunction reports

5.1.4 Maintenance requests

5.1.5 User-specific notifications

5.1.6 Completion confirmations

5.1.7 Displaying completion confirmations

5.2 Tasks of the PM Planner

5.2.1 Structure of the order

5.2.2 Notifications and orders

5.2.3 Monitoring outstanding notifications

5.2.4 Order types in PM

5.2.5 Work scheduling

5.2.6 Material planning in orders

5.2.7 Order release

5.2.8 Technical completion

5.2.9 Order status

5.3 Tasks of the Controller

5.3.1 Estimated costs, planned costs and actual costs

5.3.2 Order budget

5.3.3 Order settlement

5.3.4 Order analysis in CO

5.3.5 Cost evaluation in the Plant Maintenance Information System

BUSINESS PROCESS: PLANNED MAINTENANCE

6.1 Tasks of the PM Technician

6.2 Tasks of the PM Planner

6.2.1 Preventive versus continuous maintenance

6.2.2 Work scheduling

6.2.3 Maintenance planning

6.3 Tasks of the Controller

SPECIAL CASES

7.1 Refurbishment Processing

7.1.1 Inventory management and condition-based material

valuation

7.1.2 Standard price and moving average price

7.1.3 How the PM planner creates refurbishment orders

7.1.4 How PM technicians carry out refurbishment

7.1.5 How the PM planner technically completes orders

7.1.6 How the stock controller checks the cost flow in

refurbishment

7.2 External Services Management

7.2.1 Processes in external services management

7.2.2 How the PM planner uses control keys

7.2.3 How the PM planner uses external work centres

7.2.4 How the PM planner uses individual purchase orders

7.2.5 How the PM planner uses service specifications

7.2.6 How the controller checks external processing

INTEGRATIVE ASPECTS

8.1 Integration of the PM Component: General

8.2 Integration of the Materials Management (MM) Component

8.3 Integration of the Production Planning (PP) Component

8.4 Integration of the Quality Management (QM) Component

8.4.1 Process flow in test equipment management

8.5 Integration of the Project System (PS) Component

8.5.1 Basics of project planning

8.5.2 Planning structures and schedules

8.5.3 Processing plant maintenance projects

8.6 Integration of the Investment Management (IM) Component

8.6.1 Basics of Investment Management

8.6.2 Processing maintenance orders as investment measures

8.7 Integration of the Controlling (CO) Component

8.8 Integration of the Asset Accounting (FI-AA) Component

8.8.1 Equipment as an object in Asset Accounting

8.8.2 Workflow for data synchronization

8.9 Integration of the Human Resources (HR) Component

8.9.1 Time sheets: basics

8.9.2 CATS and Plant Maintenance

8.9.3 Prerequisites for using CATS

INTERFACES TO NON-SAP SYSTEMS

9.1 Interface to Process Control Systems and Building Control Systems

  1. How process control systems and building control systems can contribute to plant maintenance

9.1.2 The PM-PCS interface

9.2 Interfaces to CAD Systems

9.2.1 How CAD systems can contribute to plant maintenance

APPENDIX A CUSTOMISING MIND MAPS

A.1 Reading and Creating Customizing Mind Maps

A.1.1 Mind Maps and MindManager

A.1.2 Customizing Mind Maps

A.1.3 Using Customizing Mind Maps to create overviews

A.1.4 Using Customizing Mind Maps in planning

A.2 Customizing Mind Maps for notification processing in PM

A.2.1How to create a Mind Map for notification processing

A.2.2How to create Mind Maps for the individual work packages in Customizing

APPENDIX B WORKSHOPS

B.1 Role-Based Workshop

B.1.1 The basic concept

B.1.2 Procedure and schedule

B.1.3 Tasks in phase one - short presentations and demos on plant maintenance

B.1.4 Tasks in phase two - group work on requirements and tasks

B.1.5 Tasks in phase three - role-based project work using the R/3 System

B.1.6 Final feedback session and planning a follow-up workshop

B.2 Integration workshop

B.2.1 The basic concept

B.2.2 Procedure and schedule

B.2.3 Tasks in phase one

B.2.4 Tasks in phase two

B.2.5 Background information on the model company FreezeMe Inc.

9.2.1 Data to be defined by the workshop participants

9.2.2 Business process prototypes for the presentation

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Preface

Preface I

Given the current international discussion of changing markets, the accompanying trend towards globalization of business processes and the increasingly evident revolution in intercompany communication via the internet, it is all too easy to lose sight of the fact that optimized and harmonized production processes are the basic prerequisites for raising corporate IQ. It is precisely these aspects that form the starting point for the Plant Maintenance (PM) component in the SAP R/3 System.

This book has been written as a compendium for members of specialist teams. It provides interdisciplinary groups with a clear implementation guide, and aims at developing a new understanding of the software-assisted procedures in preventive and breakdown maintenance within a location. The book also presents a detailed discussion of technical implementation, thus enabling not only IT departments but also users to implement the process flows they actually require in the system. This knowledge will ultimately allow user departments to respond quickly and independently to changing demands, and adjust their workflows accordingly.

Using explanatory examples, the authors describe the practical day-to-day process flows clearly and unambiguously. The book is designed to cover all the topics relevant to maintenance planning and execution, as well as business processing of tasks, procurement, refurbishment of spare parts, and external services. Particular attention is given to integrating plant maintenance in the natural process flow of a company. To this end, integration of the PM component in the environment of Materials Management, Purchasing, Production, and Payroll is described in detail. Once the Plant Maintenance component has been successfully implemented, users can consider linking non-SAP systems at management level, as well as an Internet connection for quotation processing. When the internal process flows have been synchronized, companies have virtually unlimited options for optimizing their internal information flows.

Walldorf, January 2000
Ringo Kairies
Consulting Director
Process Industry
SAP AG

Preface II

The R/3 Plant Maintenance (PM) component from SAP is targeted at an area that may appear somewhat unspectacular when compared with business management in the areas of sales and production. As I will show, however, the PM component does more than merely add another cost planning area to those already covered by the R/3 System; it also provides specific new functionalities that enable SAP users to handle an area crucial for their strategic success.

In Western European economies, expenditure on maintaining production systems, public infrastructures and privately operated systems accounts for over 10 per cent of gross national product (Warnecke 1992). Although there are cases where it cannot be strictly delimited from investment costs (largely because there is a certain technical scope for substitution), plant maintenance planning accounts for an overwhelming volume of expenditure and must, therefore, be carried out efficiently. Economic planning of this type is of crucial importance, since the current trend is towards increased expenditure on plant maintenance. This is chiefly due to the growing complexity of production systems, which, in turn, is a result of progressive functional integration and automation. These production systems, which support the increasing productivity crucial for market competition, require ever more investible funds. While systems of this type continue to represent a structural increase in plant maintenance expenditure, this expenditure is, in some cases, being replaced by investment expenditure (partly as a result of the diminishing product and system life cycles as part of the optimization of life cycle/usage costs via asset management) (Biedermann 1990).

For these reasons, plant maintenance will remain an exceptionally important area for applying business methodology -- above all, in the areas of process control and cost management. A significant number of companies are now able to leverage their specialized production know-how as a strategic competitive factor. In such companies, there is also the potentially profitable chance that plant maintenance will be innovatively extended, becoming a key factor for competitive expertise in managing production effectiveness.

Optimizing the overall effectiveness of systems and assets is a key goal for cost management in plant maintenance. One way of achieving this goal is to systematically deploy modern organizational methods and plant maintenance strategies -- such as condition-based maintenance (CBM), continuous improvement programs (CIP), and specialist teams to ensure that plant maintenance is carried out as efficiently as possible.

In addition to this, cross-sector benchmarking can be applied to provide further starting points for increasing plant maintenance efficiency in accordance with the principles of Business Process Reengineering (BPR) with innovative advances toward designing best practice processes.

Given the advent of BPR and outsourcing, the pragmatic question that must be addressed is whether companies can ensure the diversity and depth of specialist knowledge required to continue autonomously developing practical expertise in production technology (to the extent that this represents a core competency). Finally, the increasing orientation of companies to monetary markets and customer demands has given rise to an area of business activity for plant maintenance specialists, the importance of which is not to be underestimated. Here, maintenance management plays an active part in the process of target costing, especially in the 'design to cost' development phase.

The predefined structures of the PM component provide comprehensive support for mapping the characteristic features of corporate plant maintenance in data processing systems. The component is also extensively integrated in a networked planning and financial environment, which covers all the activities of an enterprise. This ensures that all the information required for controlling plant maintenance is available holistically across all production activities involving systems. In addition to this, the powerful tried-and-tested tools for implementing targeted aggregation, as well as differentiated, comprehensible and assessable representations of company activities, help prevent those responsible for plant maintenance from being flooded with details, thereby enabling them to concentrate more on technical improvement considerations. The comprehensive functionalities of SAP R/3 and the PM component will ensure targeted support for this welcome trend.

Leoben, January 2000
Jurgen Wolfbauer
Professor of Business Administration
and Industrial Management
Montanuniversitat Leoben, Austria

Preface III

KEEPING THE ROLLING STOCK ROLLING

It is now a good few years since we at the transport companies of VOEST ALPINE Stahl Linz (Austria) realized that IT support was essential for repairing our own and external rolling stock efficiently. Back then, we tested the SAP RM-INST, which was still in its infancy, and came to the conclusion that it did not meet our specific requirements. The reason? Our plant maintenance processes (surprise, surprise) were totally different from those of other companies. Quick as a flash, we set two students to the task of developing a tailor-made system for making quotations and creating maintenance task lists.

The years went by, technology rolled inexorably on, modern systems were installed throughout the company, and our process flows were optimized. Throughout the company, SAP applications were installed, and more and more interfaces had to be developed and maintained, until . . . well, until our system could no longer cope. By this time, the original developers had disappeared without trace, and our IT solution was creating more problems than it solved. Nothing matched up with anything else; we had reached the stage where we had to work in several systems to process business orders; and the problems were getting out of control.

EVERYBODY'S TALKING ABOUT SAP R/3. COULD THIS BE THE SOLUTION FOR US?

The answer is, of course, yes! It did not take long to convince our transport personnel of the benefits of the SAP R/3 Service Management and Plant Maintenance modules for their day-to-day work. Soon everyone was asking: if other people are satisfied with the system, why can't we use it too? After all, we already had the system in-house; we 'only' needed to implement it, didn't we?

We soon put together a team, which faced up to the challenge and got to work on putting ideas and potential improvements into practice. In addition to ensuring a friendly atmosphere, the project leader made sure that the team worked as a team. Not even a change in market requirements, which radically changed the direction of the project, could dampen the team's spirit. The plant maintenance personnel soon realized that the Plant Maintenance module contained everything they needed to carry out their work -- and that our plant maintenance processes were not so different from those of other companies after all. With support from SAP, our highly motivated team achieved its goals and the users are more than satisfied with the result. They now work in one thoroughly stable, integrated system, and cannot imagine working any other way.

We can now honestly say that our decision was the right one. By opting for the PM component, we have invested in the future. Keeping up with the pace of development demands a constant supply of up-to-the-minute expertise. Our decision in favour of R/3 has not only provided us with a state-of-the-art system, it also ensures us further development by SAP.

Linz, January 2000
Peter Ustupsky
Information Systems (Production)

0201675323P07032001

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