Unexpected equipment downtime can be a major challenge for companies. To address this, it’s essential to manage physical assets like equipment and structures efficiently. Organisations can improve operations by reducing downtime, maximising equipment usage and cutting maintenance costs.
The question is: How to achieve this? Your answer is SAP Asset Management (SAP AM).
SAP’s cloud ERP, S/4HANA, includes an Asset Management module known as SAP Asset Management. It has been merged into SAP S/4HANA to effectively provide a comprehensive approach to managing companies’ assets.
SAP AM enables companies to streamline maintenance processes, reduce breakdown costs and make data-driven decisions to boost efficiency. It’s a suitable solution for industries that rely heavily on their production or service assets.
SAP AM is designed based on some key components that work together, such as:
One of the core features of the SAP AM is maintenance planning. It is essential to prevent equipment downtime and ensure efficient operation.
Technical objects are the building blocks of SAP AM. They represent the system’s physical assets, such as machines or equipment:
One of the great features of SAP AM is using Digital Twins. Digital Twins are virtual images of physical assets, systems, or processes, using real-time data to reflect the current state and behaviour of the actual objects.
SAP AM combines advanced analytics tools:
SAP AM simplifies the maintenance process, making everything more efficient from start to finish.
Creating Orders: Maintenance tasks and orders are planned based on the notifications. These tasks can include both scheduled and unscheduled activities.
Resource Scheduling: Efficient maintenance order scheduling is vital for effectively using resources. Different scheduling options can be tested and improved to ensure task completion.
Releasing Orders: In this step, the planner should ensure that the orders are processed on time, materials are available and there is enough capacity to complete the maintenance. When these tasks are verified, the order will be released.
Executing Maintenance Tasks: Technicians collect order documents, gather required materials and perform maintenance tasks. Both planned and unplanned material withdrawals are managed smoothly.
Confirming and Completing Orders: Working times and technical confirmations are recorded after maintenance tasks are completed. The process concludes with the technical and business completion of maintenance orders.
As mentioned earlier, SAP AM is a key component of SAP S/4HANA Enterprise Management, naturally integrating with other modules. This integration allows smooth information and data sharing, ensuring the system operates quickly and efficiently. For example, SAP AM integrates with the following modules and applications (note: these are just a few possible integrations).
Integration with:
This diagram illustrates how SAP AM integrates with selected SAP S/4HANA modules (note: this example doesn’t cover all modules). When a maintenance order is created in SAP AM, data flows to Material Management (MM), Financial Accounting (FI) and Controlling (CO), ensuring efficient coordination and accurate financial management of maintenance activities.
A utility company was experiencing problems with frequent equipment breakdowns, high maintenance costs and poor asset use, disrupting its operations.
By leveraging SAP AM, the company experienced fewer breakdowns, lower maintenance costs and improved overall performance.
SAP AM in SAP S/4HANA is an excellent tool for organisations that want to improve their asset performance and extend the life of their equipment. It combines maintenance planning, execution and analytics into one system, which can help businesses reduce downtime, lower maintenance costs and increase overall efficiency.
If equipment downtime or rising maintenance costs are slowing you down, SAP Asset Management can help streamline things. Want to learn how? We’re here to guide you, get in touch with us.