Implementing RCM to SAP R3

Implementing RCM to SAP R3

Implementing RCM to SAP R3

Provided by

Transfield Maintenance


Transfield Maintenance were originally contracted at Queensland Nickel’s Yabulu refinery to provide non-core maintenance services including building, rigging and scaffolding services, the workshop and garage services, as well as all painting and sandblasting. This contract was then expanded to include the core maintenance activities compromising maintenance for the refinery plant and equipment, fuel and oil facilities and the wharf unloader. The contract included all the administrative duties of maintenance planning, performance and recording. Also in the contract were the supply activities for all materials, which included the sourcing, purchasing, optimisation, warehousing and distribution of these materials. The supply contract excluded raw materials, fuel and production chemicals.

As part of the contract agreement, Transfield were required to configure and implement the plant maintenance and materials management modules of SAP R3.0D, the Computerised Maintenance Management System (CMMS) used on site. This involved commitment of staff to the project, completion of SAP training, data cleansing and conversion, inventory audits and rationalisation, cataloguing of equipment, drawings, documents and materials, as well as the establishment of maintenance plans for critical equipment.

In order to populate SAP with maintenance plans, a structured approach was required to ensure that that the correct amount of maintenance was performed on the correct equipment. Reliability Centred Maintenance (RCM) is a proven methodology for the development of maintenance plans. The RCM Turbo (Maintenance Plan Development System) software package was the tool used to facilitate the RCM process. This allowed for a quicker overall assessment, and documents the failure mode data and assumptions, on which the maintenance strategy is based, to be documented. This is essential for the development of a formalised constant improvement process.

The first step in the process was the development of an equipment register followed by a comprehensive criticality assessment. The RCM Turbo software tool was used for this criticality assessment, which by using a “fuzzy logic” question set, prioritises equipment based firstly on equipment whose failure constitutes a breaching of safety, environmental and statutory standards, followed by equipment whose failures impact on production. The results of this assessment gave equipment a rating on a scale of 1 to 16, 1 being the most critical.

Once the criticality assessment was complete, it was then possible to determine where to begin the RCM assessment. Obviously, the place to start was at the most critical equipment and then working down through the criticality listing until all key equipment had been analysed. Maintenance steering committees were set up around the site to assist with the criticality assessment and the RCM process.

These steering committees included representatives of both Process (Queensland Nickel) and Maintenance (Transfield) ranging from, on the operations side of the business, the Engineering Manager, Production Superintendents, Crew Leaders through to control room operators, and from the Maintenance Side, Area Maintenance Engineers, Planners, Foremen, and Tradesmen. All members of the maintenance steering committees were provided with RCM training prior to the project being undertaken, to enable them to provide the best support possible to the RCM team. The most important function of these committees was the challenge and approval of all maintenance strategies before being implemented into the SAP CMMS. This allowed for the best possible strategy being developed up-front as well as providing “ownership” of the strategies to the people who will be using them.

Objectives of This Presentation

Clients have benefited significantly by implementing the RCM Turbo system to manage everything from SAP work orders and Production Resource Tools (PRT) to purchase and inventory.

RCM Turbo supports the progressive implementation of RCM principles. With easy-to-use data entry screens for data collection, operations and maintenance employees can correctly record every equipment failure and downtime occurrence, including minor but costly recurring problems. From this data, the most accurate and detailed downtime and failure analyses can be developed.

By tracking and analyzing equipment availability, total equipment downtime, and operational downtime to identify the root causes and frequency of failures and downtime, preventive maintenance or even permanent solutions can be undertaken.

The results : your equipment performs more effectively, your operations run more smoothly, and your overall maintenance costs are substantially reduced.

RCM Turbo (Maintenance Plan Development System) has been used to develop a maintenance hierarchy structure that could be loaded up into the PM (Plant Maintenance) module of SAP R3. In the development of the hierarchy structure, the plant was broken down into 8 Business Units so that costing for different facilities could be captured.

RCM Turbo is a planning and analysis tool to advise the correct scheduling of maintenance work within the maintenance management system. It will help optimise and utilise the maintenance resources on the site.

The assessment was performed using RCM Turbo team member, key area people, engineering staff and plant resources.

These levels consist of BOM’s for functional locations, equipment and also materials. Task lists have been grouped at productive unit levels, designed around preventive checks being performed within 3 boundaries, isolated, shutdown or running condition.

Because of certain change condition within the PM module of SAP, data being up loaded into SAP should be thoroughly developed so that the system can perform as a maintenance management system.

Implementing the strategic plan specifically address the four points.

These were :

  1. Engineering Standards : to improve engineering standards to best practice levels (at trades level, supervision and planning level and in engineering)
  2. Engineering Systems: to deliver “Word Best Practice” reliability and maintenance engineering.
  3. Customer Relations : to design and implement communication plan by customer.

4.Leadership Development : to design and prepare training materials, define required roles and responsibilities, identify key performance measures and target and set-up KPI'’ and measuring strategies success.

Company Background

Transfield Maintenance is one of the Australia’s leading maintenance service providers. The company carries out over $400 million per annum of maintenance activities across Australia with clients in governments and the private sector.

Transfield Maintenance meets a variety of customers’ requirements ranging from large scale fully integrated plant maintenance delivery involving labour, equipment, and material resources to one off assignments assessing such issues as strategic planning, maintenance engineering, CMMS implementation and reliability engineering.

Transfield Maintenance operates an ISO 9002 compliant quality system and achieves high standards of performance in safety. A disciplined continuous improvement program is a central part of the company’s philosophy delivering best maintenance practices to our customers.

Transfield Maintenance provides consulting services, on a fee basis, to assist customers in planning and carrying out the deployment of large scale asset maintenance solutions.

In many cases, customers are able to install and implement CMMS systems and perform any necessary customisation themselves with only limited assistance from Transfield. In other cases, particularly where a complex, integrated solution or extensive customisation is required. Transfield provides extensive implementation planning, project management, network communications, system integration and custom modification services. The company’s professional services group has expert knowledge of CMMS’s products and RCM tools, is familiar with the concepts and theories of maintenance and planning and cost analysis, and can draw upon experience in implementing systems addressing diverse applications on a number of different platform in a wide range of industries worldwide.

Transfield Maintenance Philosophy

Develop maintenance strategic plan so that maintenance is planned and managed such that it provides an efficient continuous operating facility at all times

Maintenance is treated as an investment and not a cost

Maintenance will show a positive return on investment through improved profitability of the Transfield operations

Continuous Operational Improvement

The RCM assessment now being complete, and the developed and approved maintenance strategies now input into the SAP CMMS system, the final step was to develop the procedures for facilitating constant improvement. This involves training of the Area Maintenance Engineer and the Area Planners in the use of the RCM Turbo software package. Ideally, every corrective maintenance activity should be reviewed using the RCM Turbo software to allow adaptation to ever changing plant conditions. This will ensure that unplanned activities can be assessed in a structured, unbiased way to ensure a cost effective strategy can be put in place which will avoid the consequences of that particular unplanned failure from occurring again.

Hearing Best Maintenance Practice Strategies

  1. People and Culture
  2. Maintenance Strategy
  3. Maintenance Organisation
  4. Contractor Management
  5. Maintenance Planning and Scheduling
  6. Shutdown Planning and Control
  7. Maintenance Budgeting
  8. Maintenance Costs
  9. Maintenance Performance
  10. Maintenance Analysis
  11. Maintenance Management System
  12. Preventive and Predictive Maintenance
  13. Material Management

People and Culture

  • Regular meaningful performance reviews
  • Conduct skills evaluation and develop skills matrix
  • Perform training needs analysis and develop training program before the training $ value for the next maintenance budget
  • Job descriptions need to be developed
  • Additional engineering support requirements need to be clearly identified and established
  • Reliability Engineering Group must address future maintenance improvement issues

Maintenance Strategy

Overall maintenance strategy must address People, Systems, Analysis, Processes, Spares and Technology aspects

A good maintenance strategy should:

–Support the BU strategy

–Be easily understood and widely accepted

–Provide unity of purpose, clear direction and the focus for the maintenance effort.

Develop a maintenance strategy which is driven by the Business Strategy

Develop a maintenance culture where continuous improvement and learning become a way of life.

Being customer focused and process driven

Achieving the full participation of all the people

Maintenance strategy - foundation for Continuous Improvement

Better equipment and process reliability allows achievement of product sales targets

  • Reduce equipment breakdown maintenance to (5%) of total maintenance

Reduce Unit costs by achieving significant reduction in maintenance costs

Cost reductions without sacrificing reliability and compromising safety and the environment.

  • Reduce “the right” maintenance costs

Cover extent of maintenance on all critical equipment, performance measures and targets

Maintenance Organisation

Optimal maintenance organisation reflected by ratios:

–The number of maintenance performing personnel to the number of support personnel.

–The span of control of the maintenance supervisors.

–The number of planning support personnel.

Calculated for larger sites – less meaningful for small sites

Contractor Management

Implement improved contractor costs feedback process for better control

Obtain accumulated costs from maintenance management system

Introduce more regular and comprehensive progress performance reporting

Maintenance Planning and Scheduling

Get management direction on future computerised maintenance management system implementation

Practical Standardised Process guidelines

Refine and standardise short term maintenance planning and scheduling processes:

–Processing and prioritising incoming work requests

–Outline short-term scheduling processes based on job priorities and available resources

–Guidelines must be issued regarding the development of weekly short-term plan

–Develop backlog management process

–Establish labour time estimates for planned jobs as well as for other standard jobs

Develop standardised guidelines for history collection which address:

–Responsibility for collecting history

–Defined criteria for collecting history

–Define the processes and criteria to be used when “cleaning up” the existing history

–How current history can be collected in a format that can be easily converted into the future maintenance management system

–Develop standard guidelines for the use and application of failure codes

Develop comprehensive set of planning and scheduling performance indicators:

–Which measures should be used to determine backlog, schedule compliance and the extent of planned maintenance

–Definition and calculation of each of the measures

–Targets to consider, production requirements, criticality, limited available resources and logistical problems

Develop guidelines to ensure compliance with statutory requirements and record keeping in regard to:

–What type of statutory testing required, based on the equipment in use.

–Who must perform the different types of inspections and testing

–At what frequencies the various tests and inspections needed to be performed

–Requirements for minimum statutory records to be kept for different equipment.

–Development of common forms and documents to be used for recording test results and record keeping

Shutdown Planning and Control

A standard procedure which specifies the process and required extent of shutdown planning should be developed

Register required items as stock and develop BOM listings for shutdowns

Establish weekly shutdown progress meetings

Develop quantitative measures for shutdown performance

Maintenance Budgeting

Refine budgeting processes, and various documents used already

Recommendations for improved budgeting:

–Obtain future production estimates and estimates of equipment utilisation

–Project all future preventive and routine maintenance services in a monthly time phased schedule for each major piece of equipment

–Prepare detailed worksheets per piece of equipment which summarise the details from the monthly schedule

–Use failure analysis data (once available) to make prediction of common failures

–Make allowances in the budget for high failure probabilities

Maintenance Costs Control

Processes to obtain actual equipment maintenance costs against budgeted costs

Set targets and measure maintenance costs

Report “preventive” and “corrective” maintenance costs

Develop standardised guidelines and formats for accumulating, reporting and trending monthly maintenance costs for areas of responsibility and by major plant/equipment

Measure maintenance costs as a percentage of the ERV (Equipment Replacement Value). Target between 1% and 3%

Set up guidelines for proportionate allocation of costs to the correct cost centres

Develop a “top ten” analysis of maintenance costs from the available cost data

Maintenance Performance Measurement

Planning and Scheduling Performance measures

Clearly defined availability targets for the highly critical equipment

Targets relate to plant usage required by production

Consider other performance measures such as equipment utilisation and usage

Develop and graph availability trends for specific highly critical equipment

Establish baseline availability to allow improvements to be recorded

Report reliability performance measures for critical equipment:

–number of failures

–failure rates


Set realistic reliability performance targets based on equipment criticality and failure consequences

Establish baseline reliability performance of critical equipment

Maintenance Analysis

Allocate responsibility for performing maintenance analysis

Conduct Reliability Engineering and Failure Analysis training

Starting point - development of a comprehensive equipment register

Develop standard guidelines for equipment criticality assessment

Perform criticality assessments which categorise equipment based on consequences of failure

Establish Equipment Maintenance Strategy development training requirements and conduct training (e.g. RCM)

Remove ineffective maintenance conducted on some equipment

Develop a comprehensive maintenance plan, for critical equipment which includes:

–Development of preventive maintenance schedules

–Revision of existing routine maintenance and zonal inspections (carried out by operators)

–Establish standard work instructions and job safe procedures (relating to safety requirements)

–Establish a spares planning process for preventive maintenance and shutdowns

Develop implementation guidelines for Reliability Engineering techniques

Once fundamentals implemented, consider:

–Root cause analysis

–Probabilistic failure analysis

–Equipment design review analysis

–Availability block diagramming and fault tree analysis

–Failure Modes, Effects and Criticality Analysis (FMECA)

Maintenance Management System


Establish detailed implementation plan which complements the total SAP implementation plan and addresses:

–Procedure guidelines detailing how SAP is to be operated and set up on site

–Backup processes to be used when the system is not operational

–Conversion of existing history, including assessment and filtering.

–Setting up of Preventive Maintenance schedule information

–Setting up standard work instructions and job safe procedures

–Setting up Bills of Material (BOM) structure

–Setting up parameters to allow daily work order management, work request entry, work prioritisation, scheduling, history collection and projected work plan generation

–Filtering data and load existing history from manual sheets

–Loading all preventive maintenance schedules that still need to be developed

–Loading BOM’s for all major critical equipment

–Developing implementation plan for stores module setup and integration with maintenance module

–Develop manuals and procedures on how to effectively use the system

Identify and customise SAP reports to provide the required information, for planning and scheduling, history analysis, failure codes and downtime data collection

Develop and implement interfaces processes to allow maintenance costs collected in SAP to be transferred to Supply and Accounting systems

Preventive and Predictive Maintenance

Revise existing maintenance schedule documentation

Add additional schedule tasks required and remove tasks found to be ineffective or not applicable

Develop daily and weekly routine checklists (where required) and define responsibility for executing them

Establish and implement regular lubrication schedules for all plant and field equipment