SAP IBP for Maintenance, Repair and Operations(MRO)- Business Process Overview
valantic India
valantic India is a subsidiary of valantic Group and helps customers around the world to digitalize their businesses.
What is MRO?
MRO stands for Maintenance, repair and Operation. The main aim of the MRO process is to ensure the right spare parts and workforce are available at the right place at the right time to optimize inventory levels across the supply chain and increase asset availability and reliability. This optimization allows for assets to be readily available for producing products and fulfilling customer/asset demand in a timely and reliable manner.
MRO thereby facilitates planning of spare parts and workforce in the mid to long term horizon as per the asset maintenance activities
The key focus is to Increase:
Where is MRO applicable?
MRO finds its application in ASSET INTENSIVE INDUSTRIES-industries which depend on massive capital investments in the form of equipment (Machines) and workforce (Human resources).
Examples of ASSET INTENSIVE INDUSTRIES are Railways, Mining, Oil and Gas, Utilities, Aerospace and Automotive manufacturing ?
Why is MRO critical?
In cases of Asset failure due to unforeseen circumstances, it calls for an immediate requirement for the maintenance and repair of the equipment. This leads to a mandatory need for spare part tools and workforce availability to ensure the asset is up and running at the earliest. However, there are times when there is low or no inventory of spare parts for the maintenance activity to take place which results in an instant freeze in the supply chain till the spare parts and resources are available at the required place and time for the right maintenance activity to take place. This can lead to production delay and service level breach for customers and thereby huge losses to companies.
To summarize, the key challenges faced in asset intensive industries are:
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Types of Asset Maintenance
The solution: SAP IBP for MRO
SAP IBP for MRO ensures the right spare parts and workforce are available at the right place and at the right time for the right maintenance activity by treating the ASSET AS A CUSTOMER.
This is done through the integration SAP EAM with SAP IBP. Through selected asset management master data for Maintenance, Repair and Operations (MRO) and a dedicated MRO specific planning area preconfigured for IBP. Therefore, IBP can now efficiently handle the planning requirements of asset-intensive industries. The IBP MRO planning area allows to plan and optimize preventive and corrective maintenance of spare parts and workforce. It enables planners to effectively forecast demand for the spare parts and workforce, leading to financial projections. It also helps to resolve issues in the supply of spare parts. This integration is done via the extractors to import master data from SAP EAM to SAP IBP. This integration enables customers to quickly get data from plant maintenance to SAP IBP and to model MRO processes adhering to asset intensive industry processes in the provided planning area.
In summary
To summarize, SAP IBP MRO will use the maintenance plans as input for demand and determine the spare parts components and resource requirements to support these maintenance activities. SAP IBP will then be able to provide a projection of the component-dependent demands so buyers can proactively secure the availability of supply and agree on requirements with the suppliers. As a result, demand planning, supply planning, inventory optimization can be worked upon thereby ensuring the right spare parts and workforce are available at the right time for the right maintenance activities.