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.
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.”