Project Scope

The core goal of the SAP Implementation Project was to prepare facilities, production equipment, and materials management data for the conversion from an outdated CMMS, JD Edwards (JDE), to the supermajor oil company’s standard CMMS, SAP, resulting in an estimated annual savings of 1.6MM USD. The secondary goal was to outline a specific set of principles and practices that would comprise a new standard for CMMS implementation throughout corporate manufacturing and production facilities. Beyond these two goals, the upgrade was used as an opportunity to review a range of safety, operations, and maintenance areas. This review was conducted based on federal, regional, and corporate standards and the application of reliability-centered maintenance principles.

Specific Project Activities

Plant Maintenance

Under the SAP Implementation Project, there were a number of tasks targeting facility Plant Maintenance (PM) for improvement during the transition from JDE to SAP:

  • Revision of the current equipment hierarchy to meet best practice standards
  • Assignment of SAP classification to equipment
  • Development of new Bills of Material (BOM) and improvement of existing BOM’s
  • Conversion and upgrade of JDE PM structure to meet modern CMMS standards including creation of task lists, maintenance plans, and maintenance items
  • Revision of current cost center, equipment, and work order levels to ensure proper KPI reporting

Material Management

The implementation of SAP required improvements in the following areas of materials management:

  • Cleanup of JDE Material Master and conversion to SAP Material Master
  • Addition of newly identified spare parts to SAP Material Master
  • Development and implementation of Warehouse Training Curriculum
  • Development of spare parts preservation maintenance procedures
  • Recommendations for reducing operational downtime due to spare part related issues
  • Reduction in duplicate spare parts through application of warehousing best practices
  • Improvement of warehouse min/max spare parts values based on material history and developed data