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© Copyright Meridium 2011
the global leader in asset performance management solutions
Matthias Wobbe Meridium
™
© Copyright Meridium 2011
the global leader in asset performance management solutions
Road to Reliability
About Meridium
Introduction to RCM
Process Overview RCMO™ and SAP
© Copyright Meridium 2011 3
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 • Bremen • Malta
– 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
production at the lowest sustainable cost • Serving asset-intensive industries
– 900+ licensed locations – 70+ countries
Implementation & Integration Service
Integrated Software Applications
Strategic Partners
APM Consulting & Education
© Copyright Meridium 2011 4
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)
© Copyright Meridium 2011
the global leader in asset performance management solutions
Road to Reliability
About Meridium
Introduction to RCM
Process Overview RCMO™ and SAP
© Copyright Meridium 2011 6
What is RCM?
“Reliability Centered
Maintenance is a formal
method to determine the
maintenance requirements
of an asset in its operating
context.”
“RCM stresses a proactive
approach to maintenance. This
method attempts to match the
best maintenance practice to
mitigate a potential failure
relative to the importance of
preventing that failure.”
© Copyright Meridium 2011 7
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.
© Copyright Meridium 2011 8
The 7 Questions of RCM
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?
Which assets or systems do I want to analyze?
© Copyright Meridium 2011 9
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)
© Copyright Meridium 2011 10
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”
© Copyright Meridium 2011
the global leader in asset performance management solutions
Road to Reliability
Introduction to RCM
Process Overview RCMO™ and SAP
About Meridium
© Copyright Meridium 2011 12
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?
© Copyright Meridium 2011 13
Good Maintenance Strategies Executed Well
Good Maintenance Strategies Executed Badly
Improved Maintenance Strategies
Improved Maintenance Planning & Execution
Bad Maintenance Strategies Executed Well
Maintenance Improvements
Many SAP-
Customers
© Copyright Meridium 2011 14
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
© Copyright Meridium 2011 15
Maintenance Strategy Development Method
Define Systems
Criticality Assessment
System Criticality
Reliability Centered
Maintenance
Failure Modes and Effects
Analysis
Structured Review
Maintenance Strategies
Implement Strategy in SAP (Maint.Plans)
Collect Work History
High Medium Low
Evaluate Strategy and Optimize
RCMO-System
SAP- System
F.Ls. and Equipment
© Copyright Meridium 2011
RCMO/SAP Process Flow
16
System Definition
Strategy Management
RCMO
Equipment Master Data
Maintenance Planning
Maintenance Execution &
Documentation
SAP EAM
Strategy Evaluation
Maintenance Analysis
Establish Evaluation
Criteria
Optimize Strategies
BW
RCM
FMEA
Risk Evaluation Recommen-
dation Management
RCMO-System
SAP- System
© Copyright Meridium 2011
the global leader in asset performance management solutions
Road to Reliability
Introduction to RCM
Process Overview RCMO™ and SAP
About Meridium
© Copyright Meridium 2011
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
© Copyright Meridium 2011
• Define Asset Structures and Hierarchies • Profit and production targets • Define metrics • Communicate at corp., group, and individual level
Identify Business Drivers and Align KPIs
How will my assets need to perform to meet the Company goals?
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
© Copyright Meridium 2011
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
© Copyright Meridium 2011
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.
© Copyright Meridium 2011
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.
© Copyright Meridium 2011
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
© Copyright Meridium 2011
Define Asset Criticality and Risk
Which assets are the most important for reliability improvement?
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
• 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
© Copyright Meridium 2011
Risk Management
• Asset Criticality – Risk-based asset criticality – High-level, worst likely case analysis
• Provides – Prioritization for improvement efforts – Day-to-day work management
© Copyright Meridium 2011
Definition of Risk
• Risk is best defined as the product of probability and consequence
• Risk is most practically represented by a Risk Matrix
© Copyright Meridium 2011
Definition of Risk
• Typical Risk Categories – Safety – Environment – Operations – Financial
© Copyright Meridium 2011
Criticality Analysis
• Prioritization for work management • Prioritization for strategy improvement • Key Factor for metrics and analysis • Provides a risk basis for Strategy
development / management
© Copyright Meridium 2011
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
© Copyright Meridium 2011
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
© Copyright Meridium 2011
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
© Copyright Meridium 2011 34
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
© Copyright Meridium 2011
Document Findings and Recommendations
35
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.
© Copyright Meridium 2011
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.
© Copyright Meridium 2011
Analyze Data
37
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.
© Copyright Meridium 2011
Reevaluate to Eliminate Defects & Failures
38
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
© Copyright Meridium 2011
the global leader in asset performance management solutions
Presentation Summary
© Copyright Meridium 2011 40
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
© Copyright Meridium 2011 41
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.
© Copyright Meridium 2011 42
Thank You for Your Attention