Impacts to Supply Chain:
Maintenance Planning/Scheduling
Processes and Inputs
Denise Powell – Vesta Partners
SESSION CODE: EM1675
LEARNING POINTS
Critical Success Factors to achieve a smooth EAM
 Supply Chain:
1. Dates!! Understanding the impacts of dates to
the Supply Chain
2. Importance of Cleansed and Accurate Master
Data
3. Business Process – Repeatable and
enforced…works for all end users involved
4. Training! Initial as well as On-going
5. Simplify! Take advantage of new technology
available…Ease of Use
MRO Process - ROI
 Refining the process for Supply Chain and
Maintenance Planning
 Reduce costs
 Reduce unplanned failures
 Increased productivity
 The primary functions in Supply Chain consists of:
 Production Materials
 MRO/Inventory
 Sourcing/Procurement
Challenges within the MRO Process:
Fragmentation and Vertical Thinking
 Obstacles to Supply Chain transformation
 Silo vs. Horizontal thinking
•
•
Many companies focus on business processes for each of these areas but fail to integrate these
processes end-to-end
Lack of integration of these processes, highlighting/training users on the impact areas, can result in high
procurement costs and affect asset availability.
MRO Process and Reliability Optimization:
Combined effect
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 Brynjolfsson in 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 in improvement in profitability, in fact, there
was a 7% reduction in profitability, certainly not the desired end state. 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.
MIT Study Findings
 It is not solely an IT system function…
 Understanding ‘all’ of the processes
 Defining processes
 Moving from thinking vertically to horizontally
 Improve your processes with the partnership of SAP
functionality
 Changing culture…
 Moving from Independent Functions
 To an Interdependent culture
Critical Areas for a Successful PM and
Supply Chain Relationship
Accurate Planned
Dates on the Work
Order
Required Materials
and Resources
Accurate Master Data
Processes
E-Procurement
Training and
Established Processes
Maintenance Planning
Work Order Planning
• Properly planned work includes:
• The right materials & services at the right time utilizing the right
resources
• Benefits of properly planned work are:
• Increased wrench time efficiencies
• Work is completed quickly and efficiently
• Lowering overall costs to business
Pointing at it won’t help, the
computer says we don’t have any!!
Learning Point #1 - Maintenance Planning Dates
Directly Impacts Procurement
 Maintenance Planning/Scheduling
 When does the job need to be executed?
 Are materials and/or services required?
 Work Order Scheduling dates directly impacts the
procurement requirements
 Resulting Improvement
 Reduction of storeroom inventory
 Reduces the need for expediting procurement (cost)
Work Order/Op
Start Date
Material Master –
Planned Delivery
Required Date for
Materials
MRP Logic
1. Net Requirements Calculation
Forecast/Demand Based Net Requirement = Supply – Demand
Consumption Based Net Requirement (Reorderpoint) = Supply – Consumption
2. Lot-Sizing Calculation
Requirement Lot-Size = Net Requirement * Lot-Size Method
3. Lead-Time Scheduling (Time Phasing)
Scheduled Requirement = Lot-Sized Requirement Date + Lead-Time Elements
4. Bill of Material Explosion
Dependent Item Demand = Parent Item Requirement * Dependent Item Usage in BOM
Lead-Time Scheduling
3. Lead-Time Scheduling (Time Phasing)
Scheduled Requirement = Lot-Sized Requirement Date + Lead-Time Elements
Backward Scheduling
Backward Scheduling is used when planning using MRP or Forecast Based
Planning because the requirement date is in the future and known. The system
starts with the requirement date then schedules backward to determine the
release date of the requisition.
Forward Scheduling
Forward Scheduling is used when planning using Reorder Point Planning,
because Reorder Point Planning is event driven. The material shortage date is the
date that the shortage was detected by the planning run. If the stock level falls
below the reorder level, procurement must be executed immediately.
Forward Scheduling is used when planning using MRP or Forecast Based Planning
if the start date calculated in backward scheduling is in the past.
Lead-Time Scheduling - Backward
Lead-Time Scheduling (Time Phasing)
Scheduled Requirement = Lot-Sized Requirement Date + Lead-Time Elements
Opening
Date
Release
Date
PO Issue
Date
Goods
Receipt Date
Availability
Date
Total Replenishment Lead-Time
Opening Period
Purchasing
Processing Time
Planned Delivery Time
Goods Receipt
Processing Time
Lead-Time Scheduling - Forward
Lead-Time Scheduling (Time Phasing)
Scheduled Requirement = Lot-Sized Requirement Date + Lead-Time Elements
Today
PO Issue
Date
Goods
Receipt Date
Total Replenishment Lead-Time
Purchasing Processing Time
Planned Delivery Time
Good Receipt
Processing Time
Availability
Date
Work Order Dates
Understanding how work order dates in SAP is very critical so that everyone involved
understands what date defaults where and why “I don’t I have my part yet”.

The Basic Start Date/Finish Date (or Operation Dates) needs to reflect when the job is to be
performed. Ensure work order start dates reflect when job to be performed. Manually adjust
material requirement dates as needed. If dates aren’t updated, many things are impacted
such as material requirements demand (explained below) as well as metrics such as
MTTR/MTBF

If materials and/or services are added to a work order with a current date or date in the past,
the material requirements date transfers to MRP/Procurement which will trigger a “red light”
in MRP review. A red light signifies demand and action required immediately. Without any
further communication, the dates provided by the system displays immediate action required.
Accurate Requirements date is needed so to better manage delivery date of parts. With
dates in the past, this can lead to an increase in shipping charges to the plant to rush parts to
the facility.

Not just MRP/Inventory is affected but non-stock & service requisitions are impacted as well.
The work order dates transfer to the requisitions seen in the Buyer queue or in some cases
the process is automated to PO.
Date Management on work orders is critical to the parts procurement process.
Learning Point #2 - Importance of Cleansed and
Accurate Master Data
Accurate master data aides in the Maintenance
Planning and Supply Chain processes. It’s the
beginning/the base for everything that follows!
Master Data includes:
 Material Master records
 Procurement Records
 Info Records and Source Lists
 Equipment Master records
 Task Lists/Maintenance Plans
 Bills of Materials
The Perfect Formula!
Accurate Master Data–Material Master
Cleansing of the current material masters should be a focus
area, particularly for those materials used by “critical”
equipment, due to the critical nature of material masters and
their direct impact on other master data requirements.
Material master data key planning elements:
•
•
•
•
Accurate Planned Delivery Time
Material Descriptions with proper taxonomy
Manufacturer Part Numbers
Global material numbers (searching based on all
locations that store the material)
• Proper stocking levels
• Material criticality
• PIR’s/Source Lists/Vendor Master
Accurate Master Data–Material Master
Having accurate Planned Delivery Times in the Material
Master is critical to the work order planning process
 Transaction WPDTC
Accurate Master Data–Material Master
 Institute a process for a regular review of Planned Delivery Times.
Transaction WPDTC is a tool in SAP to assist with the review of PDT in
all these master records. Can be executed in "Test" mode to perform the
review as well as can perform the actual PDT change in mass.
Learning Point #3 – Business Process
Business Processes:
 Must be Global
 Must be Repeatable
 Must be Followed
Consider Safety in your organization, Safety is #1
There are Safety Processes/Procedures that must be
followed or the possibility of injury. Similar is true with
good Maintenance Business Processes….must be
followed or there is confusion/ inconsistent or
undesirable results!
Bad Example of a Business Flowchart
Learning Point #4 - Training
 On-Going Training is Key to Success
 There is a natural evolution after implementation of
the system, training is no longer a priority. People
only learn the bare minimum to perform the role.
1. Initial training occurs and I learn to do what I need to
do to perform my job. Don’t really understand the
impacts or integration to other teams
2. I now understand more of what SAP can do but am I
using the system correctly? I need more in-depth
training for understanding
3. On-going training - Changes to people and roles
occur, ability to have a more formalized “super user”
approach that allows for a better understanding of the
system or new enhancements/system changes
Learning Point #5 – Technology Improvements
 Take advantage of SAP enhancement packages & business
functions for SAP ERP that includes functional enhancements,
industry-specific enhancements and simplifications.
 Tools
 Corded scanners
 Mobile devices
 Barcoding the process
 Work orders
 Bins/Parts/Pick List
 Implementing system enhancements for intuitiveness…Apply KISS
 Fiori Apps
 Personas
 Incorporate the use of E-catalogues (internal & external/OCI)
Enhancements
 PM Mass Change
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
Orders
Operations
Functional Location
Equipment
Enhancements
 Change Requirement Date (EHP4)
E-Catalogues: The Power of the Web
• Age of internet suppliers – distributors
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Open access to material searches and ordering
Shopping carts
Ease of use
Automated procurement processes
 Ariba/SRM, etc.
 Downside of direct Web purchases
 Loss of history at work order and asset level
 Duplication of purchase details as reference point
D
OCI: Bring it into your system
 What is OCI?
 SAP Interface: Open Catalog Interface
 Benefits
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Remain within SAP environment
Access to internal / external vendor catalogs
Procurement process from within SAP work order
Utilizes superior online catalog functionality
Maximizes the benefits of both SAP PM as well as
Procurement solutions
 Improved business process
D
OCI Benefits SAP Plant Maintenance
• Supplier Catalogs
• Compatible directly within SAP work orders
• Streamlines and improves procurement processes
• Internal or external catalogs
• Reduce non-critical storeroom stock
• Other SAP Catalog interface functionality touch
points
D
E-Procurement Tools: OCI Benefits
 Ties supply chain directly to the work order
planning process
 E-procurement processes meet the work order
 History at the work order / asset level maintained
 Multiple e-procurement options available
 SRM, Ariba, etc. Full functionality of these
tools still utilized…further maximized!
 E-procurement is flexible
 Collaboration with vendors
 Moves to a “vertical” partnership solution
 Incorporate your material masters
D
SAP UI Solutions
 Fiori & Personas
 SAP Presentation
SAP UI Solutions
 Fiori Apps
Mobility/Barcoding
 Barcoded Work Orders – Maximize Efficiencies
 Parts disbursal
 Time confirmations
 Advantages/Value
 Efficient data entry method
 Eliminates data entry errors
 Increases efficiency of work order/work management process
SAP Mobility Solutions
KEY LEARNINGS
1. Dates!! Understanding the impacts of dates to
the Supply Chain
2. Master Data - Importance of Cleansed and
Accurate Master Data
3. Business Process – Repeatable and
enforced…works for all end users involved
4. Training! Initial as well as On-going
5. Simplify! Take advantage of new technology
available…Ease of Use
THANK YOU FOR PARTICIPATING
Please provide feedback on this session by completing
a short survey via the event mobile application.
SESSION CODE: EM1675
Denise Powell
Manager, Global Business Development,
Supply Chain-Procurement
dpowell@vestapartners.com
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