Table of Contents

1.0. PROJECT OVERVIEW .............................................................................................. 2

1.1. Introducing Alok Consulting Options ........................................................................ 2

2.0. INTRODUCTION TO SAP R/3 PLANT MAINTENANCE ............................................. 3

2.1. Plant Maintenance Organisation Structure .................................................. 3

2.2. Maintenance Plant...................................................................................................... 3

2.2B. Maintenance Planning Plant........................................................................................ 4

2.3. SAP Plant Maintenance Integration Environment ........................................ 4

3.0. METHODOLOGY .................................................................................................... 5

3.1. The Advantages of the ASAP methodology is as follows : ........................ 9

3.2. Proposed Roles ......................................................................................................... 9

4.0. THE PROJECT WORK STREAM............................................................................... 11

4 1.Data Preparation and migration ...................................................................... 11

4.2. Change Management ......................................................................................... 11

4.3. Process Optimization ............................................................................................ 11

4.4. Training ...................................................................................................................... 11

4.5. Configuration and Testing ................................................................................. 12

4.6. Authorisation ........................................................................................................... 12

4.7. Proposed Solution .................................................................................................. 12

5.0. MANAGEMENT OF TECHNICAL OBJECTS ........................................................... 13

5.1. Functional Location ............................................................................................. 13

5.2 Equipment ................................................................................................................. 13

6.0. BILL OF MATERIAL ................................................................................................ 14

6.1. Corrective Maintenance .................................................................................... 15

6.2. Preventive Maintenance .................................................................................... 16

 1.0. Project Overview
Alok Consulting is pleased to present Forte Oil Plc with this proposal for oil & Gas for
the implementation of SAP ERP Plant Maintenance solution, the project. The
proposal is prepared based on our intent to provide Forte Oil with the consulting
expertise required to implement mySAP ERP Plant Maintenance solution successfully
in a cost and time efficient manner

1.1. Introducing Alok Consulting Options

Alok Consulting is a specialised SAP consulting company. Our goal is to help
organisations regardless of size to reposition them for growth by implementing
appropriate SAP solutions. We provide end-to-end services in process re-
engineering,solution design, project management, technical configuration, data
integrity services, change management, training and post implementationn support.

Over the past 10yeaars, we have been involved in SAP projects at the following
clients:

Obajana Cement Company (Nigeria)

Shell Nigeria Exploration and production Company (SNEPCO)

Oceanic International Bank Plc (Nigeria)

Afrinvest West African (Nigeria)

British American Tobacco Nigeria (BATN)

Nigerian Breweries Plc

TOTAL Nigeria Formerly Elf Petroleum Nigeria Limited (EPNL)

Debts Management Office (Nigeria)

Nigeria Liquefied Natural Gas (NLNG)

Nigerian National Petroleum Corporation (NNPC)

NNPC Retail Limited

NNPC PPMC

Aiteo Group

Our consultants have also been involved in various other SAP implementation
projects in the Public Services, Oil & Gas,Professional Services, Service Station
Retailing (SSR), Oil & Gas Secondary Distribution (OGSD) and manufacturing
industries, this industry and project knowledge will be brought to bear in delivering
SAP solutions at Forte Oil Plc.
 2.0. Introduction to SAP R/3 Plant maintenance
Plant maintenance/enterprise asset management is a module in SAP R/3 that
handles the maintenance or management of equipment or assets of a company.

2.1. Plant Maintenance Organisation Structure

The Logistic Enterprise component of the SAP ERP system maintain all equipment
and functional locations of the organisation.

Plant Maintenance uses the various SAP oranisational units. An equipment and
functional location are clearly assigned to these organisational units at any point in
time.

The above organizational units diagram will facilitate the proper reporting and
resolution of all maintenance requests in Forte Oil Plc

2.2. Maintenance Plant

This simply represents an organizational unit with logistics where maintenance
requirements can be generated or raised.
2.2B. Maintenance Planning Plant
This simply represents a maintenance plant in which maintenance activities can be
planned. A planning plant usually consists of planner group(s) and maintenance
work centres.

Planner group(s) is a person or group of persons responsible for planning

maintenance tasks and requirements.

A work centre is a group of people or technicians who executes the manual work on
site.

2.3. SAP Plant Maintenance Integration Environment

Plant maintenance is one of the various modules in SAP and has various integration
points with other modules. The diagram below shows the minimum required
integration points with plant maintenance
 3.0. Methodology
We provide end-to end services for the overall projects to ensure the delivery of
value to our clients. These services include:

Business Process Optimisation

Solution Design & Technology selection
Project Management
System Integration
Data Integrity Services
Change Management
Training and Knowledge Transfer
Support
Continuous Business Improvement

SAP Accelerated (ASAP) is accepted as the standard implementation approach for

SAP projects. ASAP presents a comprehensive, integrated setoff activity to guide the
project team through every part of the implementation. All activities within this
methodology are linked to meaningful deliverables that enable project managers
and clients to closely follow the progress of the project at all times.

We propose to utilise the ASAP (Accelerated SAP) as the predominant methodology

for SAP plant maintenance projects. This proven methodology guarantees that the
project can be delivered in a predictable manner that ensures your business
requirements are addressed.

In summary the following stages are included with quality checks and milestones
after each stage:
Task Deliverables

This task is to ensure that the necessary skills Team definitions and responsibilities
for the project are available together with
any necessary resources.
The reporting infrastructure and the Project Charter and Quality Plan.
responsibilities of the group needs to be in
place and clearly communicated
The project plan will be also need to be put Project Standard
in place so that project team members are
aware of what to do and when to do it
To provide detailed scope, project plan, High level project plans
resource management and cost of the
project to serve as a baseline for the project
change management and control.
To define project strategies i.e. change Introduction of the team to high
management training, technology and level SAP R/3 Plant Maintenance
system control strategy Training
Overview training to introduce the project Technical requirement plan
team to SAP R/3 Plant Maintenance and its
scope of functionality

Define and order system hardware Executive Kickoff

requirement
- Analysis of the current functions and
business processes, assessment of the
existing processes to identify
weakness and or additional user
requirements, the mapping of same
to the best business processes as
defined within SAP R/3, this form the
basis of the Business Blueprint.
- Analysis of the reports and forms that
support the company business
operations.
- Analysis of interface requirement.
- Analysis of data conversion
requirements
- System implementation
Informal document including the
following:
- Organization Structure Definition
- Master Data Definition
- Business Processes Definition
- Master & Transactional Data
Volumes
- Printing Reports and Forms
- Level training
- The physical installation of the
SAP R/3 system onto a
development machine is done
- Business Blueprint
- Management Review

- Playback of configured process to the - Go-live plan

team for approval - End-user training
- Document SAP system design to optimize - Early watch
and support the companys business - Establish help desk
operation.
- Trained user community
- Requires a high level of top
 management input to ensure the - Project sign off
business processes support the future - Cut over to productive system
vision and strategy of the company as - Application support
regards plant maintenance.
- Measurement of benefits
- Definition of functions, procedures and
responsibilities is performed.
- The SAP Plant Maintenance Business
Blueprint is to be approved by the
steering committee and the necessary
user groups.
- Modeling of the organization and
procedures SAP configuration.
- Interface to existing system is
implemented.
- Configuration of forms and reports is
performed.
- The steering committee and the
necessary user groups must approve the
resulting prototype of the system.
- Develop and document integrated
testing cycles.
- Authorization and system administration
preparation
- Approve final playback of configuration
- Conduct health checks
- The preparation and establishment of a
productive environment
- Testing: Module Testing
Integration testing
Stress testing
User approval testing
System performance testing
Migration testing
User training
Creation of user document
Transfer of master data to a
productive environment
- Incorporates initial user support and the
optimization of technical and
organization operations
3.1. The Advantages of the ASAP methodology is as follows :

Rapid realization of business benefits because of the improved delivery rate.

This is facilitated by the use of proven tools such as the Toolkit that provides
templates, questionnaires and examples.
Predictable delivery due to the use of a process-oriented approach
eliminates the non-value added tasks.
Smoother implementation because of a proven approach based on multiple
implementations.
Efficient utilization of available resources because roles and tasks are
practical, proven and clearly defined.
Improved communication and knowledge transfer because all projects
deliverables are created in a consistent and proven manner and stored in a
central repository.

3.2. Proposed Roles

We propose to provide consultants to work with the internal project team across
each phase of the project. These consultants will provide the critical technical input
to the project team. The envisaged roles and responsibilities are as follows:
Role Responsibility Consultant

Initial awareness
Business guides sessions 1 or 2 senior PM
Modular Business consultants depending on
blueprint the project scope and
Gap/issue identification requirements
and resolution
Modular process
alignment
Change management
Guide Total internal
Team through all
phases of the project
End user training
Role definition and
authorisations
Technical system
Technical administration 1 Senior Basis Consultant
Transport administration 1 Senior ABAP Consultant
Database integrity (if the company does not
System checks already have such
Business workflow resources in place)
Data template
Data Migration preparation 1 junior PM consultant
Data extraction and
collation
Data cleaning and
preparation
Data verification
Final Data migration to
New system
Overall Project
Change Management management 1 senior consultant
and Project Management Process change analysis
Process integration
management
Project Resource
management
 4.0. The Project Work Stream

4 1.Data Preparation and migration

Plant Maintenance data from the current systems needs to be migrated to SAP.
Typically, organisations take the opportunity of data migration exercises to clean up
and reconcile old data. To achieve this, there are usually significant cleaning and
upgrading activities.

Furthermore, this exercise provides an opportunity to revalidate all required data. If

the data migration exercise is successful, then a significant component of success
would have been achieved.

4.2. Change Management

Implementing SAP Plant Maintenance involve a significant amount of change
management. This is so since the goal is to change the way maintenance work is
done.

The change management approach is based on best practices and experience of

managing the changeover process on plant maintenance projects. The approach
focuses on tangible deliverables that:

Ensures people issues are identified and dealt with sensitively and responsibly
Minimise project risk
Enable benefit delivery

4.3. Process Optimization

The current business processes (as-is process) will be identified and the best
practice to be adopted (to-be process) will be determined. It will also
determine Key Performance Indicators by which value from processes can be
measured.

4.4. Training
The objective of the training work stream is to rapidly raise the level of SAP
Plant Maintenance skills within a company. This includes improvement of skill
level of the user community and the end users in general.

The consultant(s) will deploy training using a mix of tried and tested methods:
 Class room based end user training.
Computer based training deployed via the internet across the
organisation
Standard SAP Plant Maintenance courses for lead users and project
team

4.5. Configuration and Testing

Based on the determined to- be process, the configuration requirement
will be developed. If there are identified gaps, decisions on how to handle
them will be determined.

The system must also be rigorously tested to guarantee that the

configuration actually depicts the to-be process.

4.6. Authorisation
SAP is highly integrated solution, cutting across various business processes. It is
therefore important to determine the business role of users and provide
authorisation to fit these roles.
In determining the roles in newly optimised processes, company authority
levels as well as responsibility matrix will be considered (and maybe revised in
some cases).

In the SAP system, users will only be able to see and do what they are
authorised to, this will also be applied to the SAP Plant Maintenance
implementation. Information across departments and processes can be
shared without risk to the organisation. This helps improved decision making
within the organisation

4.7. Proposed Solution

We are proposing an approach based upon our proven experience with

similar projects. In this particular case, the project will be managed and
executed using the ASAP methodology and toolset. The methodology toolset
includes a project plan, step-by-step roadmap, and project accelerators
tailored to implementing SAP solutions. We will also take advantage of the
various Best Practice processes and solutions provided by SAP.
Based upon years of experience working with a long list of leading
companies, SAP Plant Maintenance has developed proven best practices
that can help companies, maintain competitive advantages in their
Maintenance processes. SAP Plant Maintenance has translated the best
practices into preconfigured business processes.
 5.0. Management of Technical Objects

This includes data objects like functional locations, Equipment and Bill of
Material.

5.1. Functional Location

A company can use functional locations to structure a relevant technical

system or building into units that are relevant to plant maintenance.
Functional locations are usually related to each other within a hierarchy and
it not uncommon for more than one hierarchy to be defined. Most often, the
hierarchy reflects where functional locations occur within other functional
locations. For example, if the functional location at the top of a hierarchy
reflects a plant, the functional locations directly below the top level (plant)
might reflects areas of the plant or buildings as functional locations are
defined downwards in the hierarchy, they might, in turn, reflect production
lines, logical groupings of equipment, on down to the places where individual
pieces of equipment can be installed.

5.2 Equipment

Equipment is most often the central object on which maintenance is

performed. A piece of equipment may not be installed at a fuctioal location,
but installation at a functional location allows it to inherit field values,such as
cost centre, physical location and safety permits from the functional location.

Every equipment is unique and will be maintained individually in a master

record. This is to enable us set up an individual maintenance history for each
equipment.

Maintenance costs incurred to maintain a specific piece of equipment may

be settled to the functional locations cost centre at which the equipment is
handled at that time. As the piece of equipment moves from functional
location to functional location, its maintenance costs are settled to the
appropriate cost centre. In addition,the equipment could also be mapped to
appropriate assets.
 6.0. Bill of Material

A bill of material is at its simplest form, a list of materials of which a piece of

equipment consists. However, an entire material hierarchy, including
assemblies, can be created.

In SAP R/3 Plant Maintenance, there are three types of bills of materials. A functional
location bill of materials and an equipment bill of materials are practically the same,
so when an equipment BOM is discussed, the same principles apply to a functional
location BOM.

The third type of BOM is the material BOM.

Equipment BOM is , at its simplest, a list of materials that make up the piece of
euipment and/or are used in its maintenance. An equipment bill of materials can
contain one or more materials bills of materials as describled below.

A material BOM is simply a material that is made up of other materials. Typically, a

material BOM can be procured in its entirety by ordering the material that is the
header of the BOM. Alternatively, the components of the material BOM can be
procured individual, if desired. Assembliess can be defined in this way by assigning
materials and material BOMs to other material BOMs, a bill of-materials hierarchy
can be constructed.

It is common to see both equipment BOM;s that consist of many materials as well as
equipment BOMs that consist of one or more materials BOMs , or in addition to
individual materials. One primary advantage to define bills of material is that, when
materials are required for a work order, the materials can be selected from the
appropriate BOM rather than being searched and entered manually. This reduces
both the time required to create the work order and the chance of errors.

6.1. Corrective Maintenance

This process involve the following stages :

1. Notification Creation: This is intended for someone (often an operator) to

communicate that there may be a problem or a breakdown. It is often the
responsibility of a different person to determine whether the problem warrants
the creation of a work order or not.
2. Work Order Creation and approach: work orders which are used to plan
maintenance activities, schedules and execution of those planned activities
are the Plant Maintenance objects that provide the primary intergration with
other SAP modules. Some of the basic intergration points are:
The Controlling (CO) module provides cost intergration.
The financial (FI) module provides accounting intergration.
The Materials Management (MM) module provides real-time access
to inventories,purchasing, contracts, and so on.
The Human Resources (HR) module can provide the available labour
as well as a method of entering actual time worked.
The Project Systems(PS) modules can use work orders as part of
projects.

When a work order is created, the following information is typical of that included in
the work order:

A short, and possibly a longer, description of the overall work required.

The equipment or funtional location at which the work is required
Planned operations,materials and labour.
Start and finish dates.
The work order is approved by the appropriate personnel.

3. The work is performed, materials are issued out from the warehouse (if
required), labour used is confirmed, and the work order is settled into the cost
centre. Hence, the work order is completed.
6.2. Preventive Maintenance
The major distinguishing feature of this kind of maintenance is that the creation of
the maintenance order is planned and then scheduled by the use of maintenance
plans and schedules. The maintenance schedule could either be timed or
performed based.

In SAP R/3 Plant Maintenance, there are three types of preventive maintenance
processess.

Performance based preventive maintenance, time-based preventive maintenance

and condition based preventive maintenance.

Performance based preventive maintenance simply works on the basis of the

performance of an equipment i.e one can have a plan to cxarry out some form of
maintenance on car engine at every time the car mileage reaches 500 miles.

Time-based preventive maintenace at its simplest works on basis of time i.e one can
have a plan to carry out some form of maintenance monthly or quarterly.

Condition based preventive maintenance simply works on the basis of measurable

conditions like pressure, temperature or thickness i.e one can plan to carry out some
form of maintenance on an equipment once the temperature rises above a certain
threshold given by the equipment manufacturer.
 The table below shows the activities within the work streams that will take place in
each phase of

the project.

Project Blueprint Realisation Final Go-live &

Preparation Preparation Support
Define data Data Clearing Data preparation Test uploads Data
Data Preparation preparation Decide strategy for historical Data Enrichment Final data upload enhancement
and Migration tasks methods data Preparation of data
and rules Data Recertification upload program
Define Extract data from legacy
Templates systems

Awareness Business change workshops Implement Procedures Establish

Chang sessions Change impact definition organisation and documentation support
Management Business changes organisation

Initial process Process definition workshops Implement new Define process KPI Process KPI
Process documentatio Gap analysis processes measurements
Optimisation n

Introductory Training needs analysis Prepare training Deliver end user Continous
Training Training documentation training training
Preparation for end
user training

Configuration Process/data
Configuration Process testing testing
and Testing
Role definition Development of Role testing Role
Authorisation role based profiles optimisation

The decision forn any company to implement SAP Plant Maintenance marks the
beginning of a bright future as regards maintenance processes. Reduction of down
time on equipment due to effective preventive maintenance processes. Proper
cost analysis reports which can be drilled-down according to locations, equipment
and supplies, which helps to take quality decisions on assets.

In order to declear the SAP Plant Maintenance project a success, good change
management, training and process optimisation must have been achieved. The
project must also meet planned objectives and provide good Returns on
Investment. To achieve this, a company needs the participation of experienced
consultants.