Supply Chain & Procurement – Maintenance Services

Supply Chain & Procurement – Maintenance Services

The overall cost to perform maintenance work includes internal resources, external resources, stock materials/tools, and externally procured materials. This represents the total cost of maintaining assets. External resources or services represents a large percentage of maintenance cost.

In SAP Plant Maintenance, there are several different options in how to configure and procure Maintenance Services. The below presentation conducted during the 2016 Annual ASUG meeting in Orlando FL, touched upon some of the options available today.

Part 1

Supply Chain & Procurement – Maintenance Services 2017-11-06T18:40:02+00:00

Supply Chain – Maintenance Planning / Scheduling Processes & Inputs

Supply Chain – Maintenance Planning / Scheduling Processes & Inputs

IMPACT TO SUPPLY CHAIN

It is often easy to directly focus on improving the use of the information system to support maintenance and MRO work processes, this can be a mistake. A study was conducted by Professor Brynjolfssonin the MIT Sloan School of Management where he looked at the impact on profitability as IT processes and supply chain business processes, such as maintenance, inventory management, and procurement were improved.

By focusing on the improvement of the maintenance and MRO business processes there was a 27% improvement in profitability. However, by focusing on just the improvement of the IT systems, as companies often do, there was not an improvement in profitability, in fact, there was a 7% reduction in profitability, certainly not the desired endstate. When a company focused on both improving the business processes and improving the IT systems there was a 75% improvement in profitability. It is for this reason that it’s recommended to focus on improvement on both maintenance and MRO work processes, as well as the use of the system.

The below presentation conducted during the 2016 Annual ASUG meeting in Orlando FL, touches upon the topic of “Impact to Supply Chain: Maintenance Planning / Scheduling Processes & Inputs.”

Impacts to Supply Chain Maintenance Planning / Scheduling Processes and Inputs

Supply Chain – Maintenance Planning / Scheduling Processes & Inputs 2017-11-09T18:54:25+00:00

Supply Chain & Procurement – MRP Tips & Tricks

Supply Chain & Procurement – Let’s talk MRP. Tips & Tricks.

MRP FOR MRO MATERIALS:

  • MRO Materials can account for up to 60% of an operation’s maintenance costs.
  • This is a substantial impact on the cost of an operation’s maintenance and in many cases a major contributor to considerable and unnecessary costs.
  • This holds true especially where superficial management of MRO Materials occurs and a general unfamiliarity exists for materials management and MRP best practices.
  • A comprehensive engagement of materials management best practices in any organization can and will provide an immediate and sustainable return on investment.

The below presentation conducted during the 2016 Annual ASUG meeting in Orlando FL, touched upon the MRP Results Processing, options for different ways to manage the process, and tips for ease of use.

Let's Talk MRP. Tips & Tricks

Supply Chain & Procurement – MRP Tips & Tricks 2017-11-06T19:37:40+00:00