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Transforming Enterprise Asset Management for …...Transforming Enterprise Asset Management for HISD Construction and Facilities Services SAP Collaborative Value Assessment for Houston

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Page 1: Transforming Enterprise Asset Management for …...Transforming Enterprise Asset Management for HISD Construction and Facilities Services SAP Collaborative Value Assessment for Houston
Page 2: Transforming Enterprise Asset Management for …...Transforming Enterprise Asset Management for HISD Construction and Facilities Services SAP Collaborative Value Assessment for Houston

Transforming Enterprise Asset Management for HISD Construction

and Facilities Services

SAP Collaborative Value

Assessment for Houston

Independent School District

(HISD)

ENABLING ENTERPRISE VALUE

August 2, 2013

Page 3: Transforming Enterprise Asset Management for …...Transforming Enterprise Asset Management for HISD Construction and Facilities Services SAP Collaborative Value Assessment for Houston

SAP CONFIDENTIAL - Page 2 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions

contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.

1. Executive Summary

2. Objectives and Challenges

3. Value Proposition

4. Next Steps

5. Appendix - Implementation Scope and Assumptions

Agenda

Page 4: Transforming Enterprise Asset Management for …...Transforming Enterprise Asset Management for HISD Construction and Facilities Services SAP Collaborative Value Assessment for Houston

SAP CONFIDENTIAL - Page 3 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions

contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.

Why Does HISD Need

SAP Plant Maintenance

and Mobile

Solutions?

Construction and Facilities Services’ (CFS) maintenance and operations personnel have

issues in how they currently utilize the SAP Plant Maintenance solution

Need exists for better education and training on maintenance processes and system

capabilities for School personnel, planners, schedulers and field staff

Lack of real-time information on asset and work orders hinders ability to service assets

effectively

Field workforce need ability to review work order assignments, view task lists, pull specs &

parts lists, and create service request notifications from anywhere

How Can SAP Plant

Maintenance and Work

Manager Help?

Conduct assessment of current technician capabilities and education/training needs

Provide School and maintenance personnel with improved education and training on

processes and system functionality

Enhance maintenance infrastructure master for better planning and scheduling

Improved reporting and analysis capabilities

Establish business processes, improve employee knowledge, and build infrastructure to

support SAP Work Manager for mobile access and data entry for work orders

Provide guided input fields on mobile devices to make data entry as easy as possible

Provide workers ability to check work order assignments from field locations

What Benefits Can Be

Realized?

Top benefit areas:

Increase Work Order Capacity and Productivity

Increase Customer Service by Improving Work Order Turnaround Time

Improve First-Time Fix Rates

Eliminate Duplicate and Manual Data Entry Into ERP

Minimize Overtime Costs

Reduce total cost of ownership

Executive Summary

Page 5: Transforming Enterprise Asset Management for …...Transforming Enterprise Asset Management for HISD Construction and Facilities Services SAP Collaborative Value Assessment for Houston

SAP CONFIDENTIAL - Page 4 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions

contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.

1. Executive Summary

2. Objectives and Challenges

3. Value Proposition

4. Next Steps

5. Appendix – Detailed Roadmap and Findings

Agenda

Page 6: Transforming Enterprise Asset Management for …...Transforming Enterprise Asset Management for HISD Construction and Facilities Services SAP Collaborative Value Assessment for Houston

SAP CONFIDENTIAL - Page 5 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions

contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.

HISD, Like Many Organizations, Face Key

Challenges in Their Field Service Value Chains

Lack of Optimized

Inventory

Demand variability

results in volatile

inventory patterns

Lack of optimized

control “within the

four walls” results in

excessive inventory

carrying costs

High Customer

Expectations

Increasingly

sophisticated

customers expect

higher levels of

service

Increased mobility of

internal customers

means customers

demand better

service

Long Service Cycles

Lack of available

inventory to mobile

field force results in

excessive trips to

find “the right part at

the right time”

Longer service

cycles results in

fewer work order

completions per day

and increased

backlog

Inefficient Asset

Maintenance

Lack of real-time

information on asset

and work orders

hinders ability to

service assets

effectively

Excessive

“turnaround” times

that lead to lower

asset utilization

Page 7: Transforming Enterprise Asset Management for …...Transforming Enterprise Asset Management for HISD Construction and Facilities Services SAP Collaborative Value Assessment for Houston

SAP CONFIDENTIAL - Page 6 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions

contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.

Top Business Challenges Impacting HISD's

Maintenance Goals and Objectives

Maintenance Work

Order Management

Maintenance infrastructure is not defined properly with functional locations and

equipment details

Lack of proper education and training related to maintenance processes and SAP

capabilities, (i.e., planner/dispatchers)

Internal HISD review of employee skill-set needed to better match to user role

requirements and education and training needs

Maintenance process and organization is reactive rather than proactive.

Currently no accurate feedback/information on where crews are and their current

activities

Separate WEB problem reporting application is used

Maintenance process needs to be refined to provide notification feedback, prevent

duplicate entry, and enhance steps to accomplish work

Lack of complete integration to Purchasing, Inventory, Human Resources, and

Financials.

Need better leverage of inventory to plan materials, assign materials, and expense

to maintenance work order

Preventive maintenance not utilized to its full extent.

Inaccurate reporting due to overall maintenance inefficiencies

Business process and resource issues are not streamlined.

Infrastructure and process deficiencies do not allow for mobile device deployment

to assist in enhancing the maintenance process, track location of field crews, and

facilitate planning, scheduling and work execution

Business Processes Pain Points

Page 8: Transforming Enterprise Asset Management for …...Transforming Enterprise Asset Management for HISD Construction and Facilities Services SAP Collaborative Value Assessment for Houston

SAP CONFIDENTIAL - Page 7 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions

contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.

What Does This Mean For the HISD?

Top executive issues

How do I better manage my operations to

reduce excessive inventory and

maintenance costs?

How do I increase productivity and

efficiency while maintaining the highest

quality of service delivery?

How do I enable an increasingly mobile

workforce with the right tools to get the job

done?

Page 9: Transforming Enterprise Asset Management for …...Transforming Enterprise Asset Management for HISD Construction and Facilities Services SAP Collaborative Value Assessment for Houston

SAP CONFIDENTIAL - Page 8 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions

contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.

1. Executive Summary

2. Objectives and Challenges

3. Value Proposition

4. Next Steps

5. Appendix – Detailed Roadmap and Findings

Agenda

Page 10: Transforming Enterprise Asset Management for …...Transforming Enterprise Asset Management for HISD Construction and Facilities Services SAP Collaborative Value Assessment for Houston

SAP CONFIDENTIAL - Page 9 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions

contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.

Key Opportunities to Support HISD's

Maintenance Goals and Objectives

Maintenance Work

Order Management

New maintenance technician user role in Enhancement Pack (EHP) 5/6 provides

easier access to carry out daily work

Maintenance master data enhancement will incorporate the proper infrastructure to

better support maintenance activities - a classroom and virtual training class

(PLM305 - Managing Technical Objects) is available

SAP Plant Maintenance supports the complete life cycle of a work request (planning,

scheduling, dispatch, notify, work, track, complete, and report) - a classroom and

virtual training class (PLM300 - Business Processes in Plant Maintenance) is available

Integrate the existing WEB reporting application into the SAP environment with the

open interface provided through SAP’s native technology

Maintenance integration with inventory provides visibility to material availability and

lead times to release work, as well as issuing inventory at time of consumption.

Other benefits of SAP integration include:

Enterprise-wide visibility to inventory stock status

Requisitions and material reservations automatically generated to purchase from

the work order.

Single point of entry for time tracking reduces data entry and improves data

integrity

Fully integrated to financial postings for accuracy and up-to-date information

SAP Work Manager supports remote and mobile asset management and reduces

software total cost of ownership with an integrated system

Mobility solutions are integrated and not a 3rd party bolt-on that does not

communicate and enhance existing SAP infrastructure – 3rd party integration costs

are high and not timely

Areas of Opportunity How SAP Plant Maintenance and Work Manager Can Help

Page 11: Transforming Enterprise Asset Management for …...Transforming Enterprise Asset Management for HISD Construction and Facilities Services SAP Collaborative Value Assessment for Houston

SAP CONFIDENTIAL - Page 10 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions

contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.

How SAP Plant Maintenance and Work Manager

Impact the Service Value Chain

Benefits

Reduce amount of trips to/from job sites to complete repairs

Cost-Efficient Service Delivery

Benefits

Reduce time it takes for a problem to be fixed

Increased satisfaction from more accurate first-time fixes

Customer Satisfaction

Optimize Inventory Utilization

Parts Logistics /

Warehousing

Enterprise

Assets

Field Service

Customer

Service

Finance /

Controlling

Benefits

Lower maintenance costs

Higher equipment uptime

Optimized Asset

Maintenance

SAP Work Manager

SAP Plant Maintenance

SAP Plant Maintenance and Work Manager Provide Insight into Enterprise Data at the

“Point of Service” to Increase Efficiency and Effectiveness

Benefits

Mobile receiving of deliveries

Mobile goods movement entry

Paperless cycle counts

Accurate inventory counts

Page 12: Transforming Enterprise Asset Management for …...Transforming Enterprise Asset Management for HISD Construction and Facilities Services SAP Collaborative Value Assessment for Houston

SAP CONFIDENTIAL - Page 11 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions

contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.

Reduce Costs

Value Source

Increase

Productivity

Value of

SAP Plant

Maintenance

and Work

Manager

Realized or Expected Improvement

From SAP Mobile Apps

SAP Plant Maintenance and Work Manager

Drive Value in Multiple Areas

SAP Mobile App

• Work Manager

• Inventory Manager

Benefit Range

Eliminate Administrative Time of

Manual Paper Orders 90% - 100%

Increase Work Order Capacity 20% - 30%

Minimize Overtime Costs 40% – 60%

Reduce Inventory Carrying Costs 5% - 10%

Eliminate Manual Data Entry into ERP 90% - 100%

Reduce Spare Parts Inventory 10% - 15%

Reduce Pick Errors 25% - 50%

Improve First-Time Fix Rates 15% - 20%

Reduce Unplanned Downtime 20% - 30%

Source: Value estimates are based on SAP customer experiences, SAP Value Engineering studies,

and other industry benchmarks.

Page 13: Transforming Enterprise Asset Management for …...Transforming Enterprise Asset Management for HISD Construction and Facilities Services SAP Collaborative Value Assessment for Houston

SAP CONFIDENTIAL - Page 12 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions

contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.

Achieving Value: A Proposal for Deployment

Phase 1: Stabilize Foundation Phase 2: Extend Functionality

ILLUSTRATIVE

Phase 1: Stabilize Foundation

Education and Training Conduct assessment of current technician

capabilities and education/training needs Conduct end-user education on end to end

maintenance processes Conduct training on SAP Plant Maintenance

functionality (School and Field Maintenance Personnel)

Reporting & Analytics

Implement dashboard reporting and query

tools from Business Objects for improved

maintenance reporting and analysis

Plant Maintenance Master Data

Enhance material and service master

records

Plant Maintenance

Enhance Plant Maintenance functionality

Phase 2: Extend Functionality

Mobile Work Manager Implement mobile work order

solution

Phase 1: Stabilize Foundation Phase 2: Extend Functionality

Phase 3: Continuous Improvement/Innovation

Phase 3: Continuous

Improvement/Innovation

TBD (e.g., Reliability-Centered

Maintenance)

Page 14: Transforming Enterprise Asset Management for …...Transforming Enterprise Asset Management for HISD Construction and Facilities Services SAP Collaborative Value Assessment for Houston

SAP CONFIDENTIAL - Page 13 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions

contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.

Next Steps

In order to maintain the momentum of the project and accelerate the

benefits to be achieved from the SAP Plant Maintenance and Work

Manager solutions, the HISD should move forward with the following:

Approve the maintenance improvement opportunities and provide

funding to the project for the acquisition and deployment of

resources and software solutions to meet HISD,s Construction

and Facilities Management goals and objectives

Engage “experienced” certified resources to begin planning for

the deployment of the SAP solutions and realization of identified

benefits and ensure knowledge transfer to the District

Develop and implement an integrated communication plan for

change including continuous education and training, and

process improvement

Page 15: Transforming Enterprise Asset Management for …...Transforming Enterprise Asset Management for HISD Construction and Facilities Services SAP Collaborative Value Assessment for Houston

SAP CONFIDENTIAL - Page 14 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions

contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.

1. Executive Summary

2. Objectives and Challenges

3. Value Proposition

4. Next Steps

5. Appendix – Detailed Roadmap and Findings

Agenda

Page 16: Transforming Enterprise Asset Management for …...Transforming Enterprise Asset Management for HISD Construction and Facilities Services SAP Collaborative Value Assessment for Houston

SAP CONFIDENTIAL - Page 15 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions

contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.

Maintenance Management Roadmap

Phase Process Area Initiative SAP ModuleLicense

Required?

Implementation

Complexity/Cost

Implementation

TimelineDependencies

1 Education and

Training

Conduct assessment of current technician capabilities and education/training needs

Conduct end-user education on end to end maintenance processes

Conduct training on SAP Plant Maintenance functionality for School and field maintenance personnel

SAP Productivity

Pak by RWD

Plant

Maintenance

No Low 2-4 Months SAP Productivity

Pak by RWD

ECC 6.0 EHP 5/6

1 Reporting & Analytics Implement dashboard reporting and query tools from Business Objects for improved maintenance reporting and analysis

Xcelsius/Web

Intelligence/

BOE

Unknown Low-Moderate 2-6 Months None

1 Plant Maintenance

Master Data

Enhance material and service master records

Plant

Maintenance

No Moderate 4-6 Months ECC 6.0 EHP 5/6

1 Plant Maintenance Enhance Plant Maintenance functionality Plant

Maintenance

No Moderate 4-6 Months ECC 6.0 EHP 5/6

2 Mobile Work

Manager

Implement mobile work order solution SAP Work

Manager

Yes Moderate 4-6 Months ¹ ECC 6.0

Scope/Initiative Phase I Phase II

Education and Training

Reporting & Analytics

Plant Maintenance Master Data

Plant Maintenance

Mobile Work Manager

X

X

X

X

X

Note: The License Required estimate indicates a need for licensing of this capability. It does not contemplate adequate existing user coverage in areas where

licensing of the capability is not required.

The estimates of complexity, cost, and timeline provided in this document are based on limited knowledge of HISD operations. They are provided solely as a

rough order of magnitude for planning purposes and would need to be revised after a more detail review of operations was performed. Actual experience of HISD

may differ when more knowledge is available.

¹ Rapid-Deployment Solution exists to accelerate deployment in shorter timeframe.

Page 17: Transforming Enterprise Asset Management for …...Transforming Enterprise Asset Management for HISD Construction and Facilities Services SAP Collaborative Value Assessment for Houston

SAP CONFIDENTIAL - Page 16 For HISD Internal Use Only - This page is from the VE Study prepared for HISD and subject to the terms, conditions and assumptions

contained in the VE Study. Information contained herein is not a guaranty of future results, performance or cost savings.

Maintenance Management Issues & Solution

Enablers

Pain Points/Needs/Requirements Solution Enablers

Master Data issue: Maintenance Infrastructure is not defined

properly with functional locations and equipment details

Lack of proper education and training related to maintenance

processes and SAP capabilities, (i.e., planner/dispatchers)

Internal HISD review of employee skill-set needed to match to

user role requirements and education and training needs

Maintenance process and organization is reactive rather than

proactive.

Currently no accurate feedback/information on where crews are

and their current activities

Separate application (WEB) used to get maintenance requests

and problem reports from schools

Maintenance process needs to be refined to provide notification

feedback, prevent duplicate entry, and enhance steps to

accomplish work

Lack of complete integration to Purchasing, Inventory, Human

Resources, and Financials.

Need better leverage of inventory to plan materials, assign

materials, and expense to maintenance work order

Preventive maintenance not utilized to its full extent.

Inaccurate reporting due to overall maintenance inefficiencies

Business process and resource issues are not streamlined.

Infrastructure and process deficiencies do not allow for mobile

device deployment to assist in enhancing the maintenance

process, track location of field crews, and facilitate planning,

scheduling and work execution

New maintenance technician user role in Enhancement Pack

(EHP) 5/6 provides easier access to carry out daily work

Maintenance master data review will allow to incorporate

proper infrastructure thereby supporting maintenance

activities. There is both a classroom and virtual training class

PLM305 Managing Technical Objects

SAP Plant Maintenance supports the complete life cycle of a

work request (problem notification, planning, scheduling,

dispatch, notify, work, track, complete, and report). There is

both a classroom and virtual training class PLM300 Business

Processes in Plant Maintenance.

Integrate the existing WEB reporting application into the SAP

environment with the open interface that SAP provides through

its native technology

Maintenance integration with inventory provides visibility to

material availability and lead times to release work, as well as

issuing inventory at time of consumption. Other benefits of

SAP integration include:

Enterprise-wide visibility to inventory stock status

Requisitions and material reservations automatically

generated to purchase from the work order.

Single point of entry for time tracking reduces data entry

and improves data integrity

Fully integrated to financial postings for accuracy and up-to-

date information

SAP Work Manager supports remote and mobile asset

management and reduces software total cost of ownership

with an integrated system.

Mobility solutions are integrated and not a 3rd party bolt-on

that does not communicate and enhance existing SAP

infrastructure – integration costs are high and not timely