Material Management integrated with Work Management

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Material Management integrated with Work
Management

• Richard Kruger
• New York Power Authority

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New York Power Authority

• The largest state-owned electric utility in the
  United States, providing approximately 25 of the
  electricity used in New York State.
• Operates 18 hydro and fossil generation
  facilities along with more than 1,400 circuit
  miles of transmission lines and many remote EHV
  substations
• 26million MWH generated, 43billion KWH sold
  (2007)
• Serves a number of New York State loads including
  government entities, industrial, and municipal
  electric systems.

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Material Management integrated with Work
Management

• Our Principles
• The overwhelming majority of material, stocked or
  purchased, for maintenance and modification work
  are associated with a workorder
• The workorders include a plan that indicates the
  labor requirements, operational steps and
  material needs
• The warehouse, through an interface with SAP,
  kits and delivers to a pre-arranged location
• the material is delivered in accordance with
  dates indicated in the requisitioning system
• work should not be in progressed until the
  necessary items are kitted
• Material association with its equipment is a
  significant part of our asset management program

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Material Management integrated with Work
Management

• Background
• Work activity analysis has indicated that without
  a concentration on material management there is a
  large amount of wasted time getting and waiting
  for material
• We have adjusted Maximo to suit our business
  needs
• Since 1999 we have a very tight integration with
  SAP and have had workorders associated with
  material withdrawal from the warehouse since 1996
• SAP controls the management and issuance of
  material as well as purchases - but material
  requests are initiated in Maximo
• Planners are kept up to date on the status of
  their material requests, through an exchange of
  information in a the real time interface from
  SAP to Maximo

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Material Management integrated with Work
Management

• The Foundation
• Equipment records are linked to a listing of
  replacement material
• When a new equipment record is entered into
  Maximo the list
• of replacement material is also created.
• Request for new material stock in the warehouse
  are reviewed and require this association before
  action is taken to put the item in the material
  catalog
• Old equipment records have the association built
  as you go
• When material not linked to equipment is
  requisitioned the planner links the new material
  to the equipment record
• This association is built with care so not to put
  junk into the historical record

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Material Management integrated with Work
Management

• The Foundation
• Material and Work Management personnel have
  developed a material asset catalog look up that
  is consistent with SAP
• Formed on the basis of class, sub-class and
  attributes of material
• Developed easy to use search screen for finding
  items
• We have views of material across the enterprise
• We can share material across the facilities
• Material Management is endeavoring to minimize
  redundant items stored
• We have identified critical spares and indicated
  them with special categories

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Material Management integrated with Work
Management

• The Foundation
• Material reservations can be updated and modified
  during the work
• Material not used can be returned to the
  warehouse and the records of Maximo are updated
  through the interface
• Purchased material are always associated with
  workorders
• Reports are prepared to show the material status
  and to indicate the accuracy of the planning
  process
• Quality planning and close cooperation with the
  warehouse is essential

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Material Management integrated with Work
Management

• The Process
• Developing the job plan material
• Making a Stock Reservation
• Making a Purchase Requisition
• Reporting

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Material Management integrated with Work
Management

• The Consequences
• Good asset history
• Delay time for material is reduced significantly
• More involved planners
• Better control of materials
• Discipline of managing work is elevated

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Material Management integrated with Work
Management

• New Trends
• Having quality material management and the
  structures that support it enables the
  development of a well grounded reliability
  centered asset management program
• Greater dependency on just in time ordering of
  materials can be achieved when adequate planning
  is performed with advanced notice to the
  warehouse
• Engineering designs are expected to use local
  material from the enterprise material catalog
  when ever possible in developing the Bill of
  Materials for construction projects

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Material Management integrated with Work
Management

• Richard Kruger
• New York Power Authority
• 716 286 6102
• dck.kruger_at_nypa.gov