The editors of Maintenance Technology are pleased to introduce this new, monthly, Reliability and Maintenance Center column we’re calling SAP Tips and Tricks. In each issue, Kristina Gordon will open doors for SAP users to help you maximize benefits from one of the more powerful tools available to reliability and maintenance professionals.
Gordon has worked for more than 10 years in an array of pharma, chemicals, and polymers businesses that use SAP as their CMMS. She has conducted 13 full life-cycle implementations. Gordon’s specialty is working with plant maintenance, although she has also implemented the MM, FICO, PP-PI, and PS modules. As a functional lead, she has vast experience with configuration and development of functional specifications for the technical development of custom programs. In each issue she will explore timesaving keystrokes, reports, and basic use of the system that so many of you have implemented in your operations.
—Gary L. Parr, editorial director
With more than 183,000 companies in 130 countries using SAP, it’s hard to imagine how big business survived without this German-based software company. However, the world of S-A-P, (that’s right, never refer to it as “SAP” if you want to hang out with the cool crowd), is filled with many tips and tricks that can make your life and your business run more efficiently and make your workforce more effective.
To have a useful tool that will give you the results that you need, measuring yourself with different sets of key performance indicators (KPIs) is the most important step to understanding the data being entered into SAP. While KPIs can be measured in several ways, we are going to talk about some of the most critical and commonly used metrics in the plant-maintenance realm.
Measuring your maintenance costs against your total plant ERV (estimated replacement value) can give you one of the best indicators of your maintenance costs versus the best of the best. To do this, we take the total cost of maintenance per month and divide that by your ERV. Industry standards say that the maintenance spend should not exceed 2% of your ERV. Furthermore, your MRO (maintenance, repair, and operations) material inventory should never exceed 0.25% of your total ERV.
Other metrics that are important for an organization to track using SAP are daily work-scheduling efficiency and job-accuracy estimations. Scheduling efficiency is the product of the (total hours scheduled/available labor hours) multiplied by (scheduled hours worked/total hours scheduled).
Estimating accuracy will reveal how well your planning organization estimates and plans work. As shown in the accompanying screen shot, if a job is not estimated properly, or at all, you will never have an understanding of scope creep, discovery work, extra material cost, or other identifiers that could affect the final work cost. Once the work order is released, the estimated cost, in many cases, cannot be recalculated or added to, leaving the organization without a baseline for the initial estimate of the work.
Understanding your maintenance costs will give you the necessary information you need to properly forecast your budget.
By using these KPIs, you will begin your journey down the road to success by ensuring you have quality data in your SAP system, along with the knowledge to help you work smarter, not harder. MT
Kristina Gordon is SAP Program Consultant at the DuPont, Sabine River Works plant in West Orange, TX. If you have SAP questions, send them to email@example.com and we’ll forward them to Kristina.