Meridium RCMO SAP Road To Reliabilty

the global leader in asset performance management solutions
Matthias Wobbe
Meridium
© Copyright Meridium 2011

About Meridium
Introduction to RCM
Process Overview RCMO™ and SAP
Road to Reliability
Meridium Overview
• Founded 1993
• Global presence
– Americas
• Roanoke, Virginia, USA – Corp HQ
• Houston, Texas, USA
• London, Ontario, Canada
• Sao Paulo, Brazil
• Mexico City, Mexico
• Barcelona, Venezuela
– Europe Integrated Software Implementation &
• Bremen
• Malta
Applications Integration Service
– Middle East/North Africa
• Dubai, UAE
– Asia-Pacific/South Africa
• Perth, Australia
• Bangkok, Thailand
• Pune, India
• Johannesburg, South Africa
• Shanghai, China
• Our focus:
– Help customers achieve predictable APM Consulting & Strategic
production at the lowest sustainable cost Education Partners
• Serving asset-intensive industries
– 900+ licensed locations
– 70+ countries
3
Meridium/SAP Partnership
1996 – First joint customers

2000 – Certified integration between SAP PM and Meridium APM
2002 – Synchronization of SAP Master Data in Meridium
2003 – BAPI based interface
2004 – Co-Development of RCMO to be Powered By Netweaver
2005 – Powered By NetWeaver Certification
2006 – Composite Application Certification (xAPP)
2007 – RCMO™ became a SAP Endorsed Business Solution (EBS)

4
About Meridium
Introduction to RCM
Road to Reliability
What is RCM?
“Reliability Centered “RCM stresses a proactive
Maintenance is a formal approach to maintenance. This
method to determine the method attempts to match the
maintenance requirements best maintenance practice to
of an asset in its operating mitigate a potential failure
context.” relative to the importance of
preventing that failure.”

6
Key Characteristics of RCM
• RCM is a proactive approach

for developing maintenance
strategies.
• RCM stresses the value of
maintaining or preserving of a
function as opposed to
maintaining an asset.
• RCM matches the best practice
 to reduce the probability of
a potential failure
 relative to the severity of its
consequence.

7
The 7 Questions of RCM
Which assets or systems do I want to analyze?
1. What are the desired functions and performance

standards of the asset in it’s operating context?
2. In what ways does it fail to fulfil its functions?
3. What causes each functional failure?
4. What happens when each failure occurs?
5. In what way does each failure matter?
6. What can be done to predict or prevent each
failure?
7. What can be done if the failure cannot be
predicted or prevented?

8
Typical Outputs of the RCM Process
1. Preventive maintenance tasks

2. Monitoring and Inspection tasks
3. Other Recommendations
– Operating procedures
– Critical spare parts
– Training opportunities
– Physical changes to system design (redesign)

9
Why do some RCM Initiatives Fail to Deliver?
The challenge lies with the difficulty of

implementation:
 Collection of the required information
 Time consuming process
 RCM tools and databases are disconnected from
SAP
 Loading RCM recommendations into EAM is
difficult.
 Once loaded, RCM task justification is lost
 Measuring results over time is difficult.
 Keeping the RCM process evergreen is nearly
impossible.
The Result… most RCM initiatives are one-time
exercises, not “living programs”
10
About Meridium
Introduction to RCM
Road to Reliability
Why use RCM with SAP EAM?
SAP EAM focuses on the efficient execution of:

 Maintenance Planning & Scheduling
 Maintenance Work
 Spare Parts Management
RCMO focuses on effectiveness and content and

answers the question…
How do you know
you’re doing the
right maintenance?

12
Maintenance Improvements
Good Maintenance Strategies

Good Maintenance Strategies
Executed Badly
Executed Well
Improved Maintenance
Strategies
Many
SAP-
Customers
Bad Maintenance Strategies
Executed Well
Improved Maintenance
Planning & Execution

13
RCMO – Key Capabilities
1. Structured work process to develop Maintenance

Strategies
• Reliability Centered Maintenance (RCM)
• Failure Modes Effects and Criticality Analysis
(FMECA)
2. Tightly Integrated with SAP PM work processes
• Utilizes SAP Master Data and SAP-Work History
• Maintenance Planning and Execution
• Maintenance Effectiveness Analysis
3. Drives automated re-evaluation of maintenance
strategies for Continuous Improvement

14
Maintenance Strategy Development Method
F.Ls. and Define
RCMO-
Equipment Systems
System
Criticality
Assessment
SAP-
System
System
Criticality
High Medium Low
Reliability Failure Modes

Structured
Centered and Effects
Review
Maintenance Analysis
Maintenance Evaluate Strategy

Strategies and Optimize
Implement Strategy in Collect Work

SAP (Maint.Plans) History

15
RCMO/SAP Process Flow
SAP EAM BW
Maintenance
Equipment Maintenance Maintenance
Execution &
Master Data Planning Analysis
Documentation
Optimize
FMEA Strategies
System Recommen- Strategy

Risk Evaluation Strategy
Definition dation Evaluation
Management
Management
Establish
RCMO RCM Evaluation
Criteria
RCMO- SAP-
System System

16
About Meridium
Introduction to RCM
Road to Reliability
Roadmap to Reliability
Identify business drivers and align KPIs
Define asset criticality / risk
Develop asset management strategies
Document findings and recommendations
Analyze data
Reevaluate to eliminate costly defects &

failures

Identify Business Drivers and Align KPIs
How will my assets need to perform to meet the
Company goals?
• Define Asset Structures and Hierarchies
• Profit and production targets
• Define metrics
• Communicate at corp., group, and individual level
SAP supports to help answering these questions using SAP-

analytics
• Damage and object part catalogs in notifications
• Cost reporting (material, internal and external services)
• Punctuality of maintenance work
• Downtime reporting
• Maintenance activity types

Asset Taxonomy
• Taxonomy:
– “The science laws or principles of
classification.”
• In SAP, it is commonly used as:

– a relational grouping of asset hierarchies
– The classification of assets

Asset Taxonomy
• The asset hierarchy and classification are

necessary for work identification and
execution.
• They are also especially important for

performance evaluation and identifying
opportunities for improvement.

Asset Classification
• Classification provides a structure that

will enable roll-up of performance data
into categories for analysis.
• As event data is documented within the

taxonomy structure, an analyst may then
identify opportunities for improvement
by equipment category, class and type.

Asset Taxonomy - Advice
• Start with a standard
• Don’t be overly complex or deep

– Asset hierarchy should match business needs
– Asset Category, Class and Type is sufficient
• Use the same taxonomy across the

business

Define Asset Criticality and Risk
Which assets are the most important for reliability improvement?
• Structured analysis at appropriate level
– System or Asset
– Failure mode
• Consider failure in terms of
– Probability (weekly, monthly, yearly)
– Consequences (business specific criteria like safety, environment,
production)
• End result should be a criticality ranking of systems or equipment
SAP supports to help finding the important assets through

• Damage, downtime and failure statistics in notifications
• Cost reporting (material, internal and external services)
• Downtime reporting
• ….
RCMO supports the definition of systems and the criticality

assessment of systems/functional locations/equipment and
update of ABC-indicator of Functional Locations and Equipment
Risk Management
• Asset Criticality
– Risk-based asset criticality
– High-level, worst likely case analysis
• Provides
– Prioritization for improvement efforts
– Day-to-day work management

Definition of Risk
• Risk is best
defined as the
product of
probability and
consequence
• Risk is most
practically
represented by
a Risk Matrix

Definition of Risk
• Typical Risk Categories

– Safety
– Environment
– Operations
– Financial

Criticality Analysis
• Prioritization for work management

• Prioritization for strategy improvement
• Key Factor for metrics and analysis
• Provides a risk basis for Strategy
development / management

What about Failure Coding?
• Coding is important for advanced analysis
• The two most important codes are:

– Maintainable Item (Object Part)
• What part failed
– Condition (Damage)
• What was the as-found condition of the part

Advice on Failure Codes
• You don’t need perfect

• Leverage a standard – then modify to
meet your needs
• Focus on the key data elements to
metrics and analysis important to you

Condition (Damage)
• Definition
– The as-found condition of the maintainable item.
For failures this indicates the type of damage found
to the maintainable item.
• Typical Values
– Corrosion
– Fatigue
– Wear
• Uses
– Component analysis to determine failure pattern and
expected life (Distribution Analysis)
– When used in conjunction with the Maintainable
Item can provide a link to the classic RCM Failure
Mode
Develop Asset Management Strategies
Where do existing strategies come from?
How have existing strategies been developed?
• RCM or FMECA or just review of existing strategies?

• What’s the quality of the strategies in SAP?
• What are the bad actors and which strategies are not effective?
RCMO and SAP support analyzing existing strategies

• View maintenance strategies linked to Functional Location and Equipment
• View existing task lists (general, Functional Location and Equipment Task Lists)
• View damage and downtime statistics from RCMO
• View SAP-notifications from RCMO
Creation of RCM/FMECAs in RCMO following the SAE-Norm for RCM

Creation of templates for types of Equipment or Functional Locations
Mapping of failures identified in RCM/FMECA against failure coding in SAP
Assign criticality on failure consequence level
Decision logic on failure consequence level
34
Document Findings and Recommendations
What are the best maintenance activities to avoid relevant failure
consequences?
Which activities are cost effective?
Maintenance activities can be anything

– Preventive maintenance tasks (inspections, cond.monitoring,
maintenance tasks)
– One time actions
– Training of workforce
– Change of operating procedures
– Design changes
RCMO supports the documentation of findings and the comparison of the
recommendations from the RCM/FMECA with the existing situation in SAP.
Mapping of recommendations to maintenance plans or task lists.

Creation of RCMO notifications in SAP to drive changes in SAP-master data
like maintenance plans, task lists, maintenance strategies or catalog system.
Grouping and consolidation of recommendations, status management on
recommendation level.
Implementation of maintenance activities in SAP.
35
Recommendation Management
• A Recommendation is a proposal for

change to improve the overall
performance of an asset.
• The recommendation is typically based
on the result of an analysis of data
performed by an analyst or analysis team.
• Recommendations usually require some
level of review and commitment by
management to proceed forward.

Analyze Data
How did the performance of the assets change after the
implementation of the new maintenance strategies?
Did the project meet the company goals?
Analyze
−Total maintenance cost and cost by category of maintenance work
(preventive, planned, unplanned, inspection, etc).
− Did the performance of assets improve (MTBF, MTTR)?
− Side effects of the new maintenance strategies
Import of RCMO structures into SAP-BW.

Analyze effects on Functional Locations and Equipment which were or
weren’t subject of RCMs/FMECAs
Analyze effects on medium- low-criticality equipment.
Compare different sites, locations before and after implementation of
recommendations
Create reevaluation criteria, use SAP-BW automated alerts.

37
Reevaluate to Eliminate Defects & Failures
What new strategy should be implemented?
What can be done to improve existing strategies?
Why wasn’t the maintenance program successful?
Analyze
− Which failures or defects occurred?
− Perform detailed analysis of failures and compare with
recommendations.
− Perform Root Cause Analysis
− Bad actors: Have all bad actors been analyzed with RCMs/FMECAs
Detailed analysis of SAP-notifications and work orders for bad actors or low
performing equipment.
Analyze data quality in SAP.
Have all recommendations been implemented.
Did the RCM-project oversee critical equipment or critical failures?
Adress how to prevent or be prepared for next failure event.
Revisit existing strategies: Reopen RCM-analysis, reassemble evaluation
team
38
Presentation Summary

RCMO Value Proposition
 Improved system definition leads to improved

analysis quality and implementation quality
 Ability to template analysis and reuse results
 Speed of implementation of RCM
recommendations
 Import existing analysis that have not been
implemented
 Automation of analysis evaluation
 Implement a “Living” RCM program

40
Presentation Key Take Away’s
• RCM has gone mainstream and provides a powerful

mechanism to define asset operational and
maintenance strategies.
• RCMO and SAP have removed the traditional barriers
of RCM program implementation through integration
of the data and work processes.
• RCMO is now being utilized by industry leaders to
optimize their maintenance programs.

41
Thank You for Your Attention

42

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the global leader in asset performance management solutions

© Copyright Meridium 2011

Process Overview RCMO™ and SAP

1996 – First joint customers

© Copyright Meridium 2011

Process Overview RCMO™ and SAP

© Copyright Meridium 2011

• RCM is a proactive approach

© Copyright Meridium 2011

1. What are the desired functions and performance

© Copyright Meridium 2011

1. Preventive maintenance tasks

© Copyright Meridium 2011

The challenge lies with the difficulty of

Process Overview RCMO™ and SAP

SAP EAM focuses on the efficient execution of:

RCMO focuses on effectiveness and content and

© Copyright Meridium 2011

Good Maintenance Strategies

© Copyright Meridium 2011

1. Structured work process to develop Maintenance

© Copyright Meridium 2011

High Medium Low

Reliability Failure Modes

Maintenance Evaluate Strategy

Implement Strategy in Collect Work

© Copyright Meridium 2011

System Recommen- Strategy

© Copyright Meridium 2011

Process Overview RCMO™ and SAP

Identify business drivers and align KPIs

Define asset criticality / risk

Develop asset management strategies

Document findings and recommendations

Reevaluate to eliminate costly defects &

© Copyright Meridium 2011

SAP supports to help answering these questions using SAP-

© Copyright Meridium 2011

• In SAP, it is commonly used as:

© Copyright Meridium 2011

• The asset hierarchy and classification are

• They are also especially important for

© Copyright Meridium 2011

• Classification provides a structure that

• As event data is documented within the

© Copyright Meridium 2011

• Start with a standard

• Don’t be overly complex or deep

• Use the same taxonomy across the

© Copyright Meridium 2011

SAP supports to help finding the important assets through

RCMO supports the definition of systems and the criticality

© Copyright Meridium 2011

© Copyright Meridium 2011

• Typical Risk Categories

© Copyright Meridium 2011

• Prioritization for work management

© Copyright Meridium 2011

• Coding is important for advanced analysis

• The two most important codes are:

© Copyright Meridium 2011

• You don’t need perfect

© Copyright Meridium 2011