MAVIR gets full visibility of maintenance costs

Smarter asset management with IBM Maximo and SAP

Published on 23-Nov-2011

Validated on 12 Feb 2014

"Asset management optimization is key for efficiency at MAVIR, and Maximo provides an outstanding solution for a complex and diverse business. From within a single solution, Maximo offers comprehensive maintenance strategy, business planning and cost-reduction capabilities, across the asset lifecycle." - Project Manager, Magyar Villamosenergia-ipari Átviteli Rendszerirányító Zártkörűen Működő Részvénytársaság (MAVIR)

Customer:
MAVIR

Industry:
Energy & Utilities

Deployment country:
Hungary

Solution:
BA - Business Intelligence, Small & Medium Business, Smarter Planet, Information Infrastructure, Optimizing IT

Smarter Planet:
Smarter Energy

IBM Business Partner:
SAP, T-Online Hungary , MVM Informatika

Overview

Magyar Villamosenergia-ipari Átviteli Rendszerirányító Zártkörűen Működő Részvénytársaság (MAVIR) is responsible for electricity transmission operations, network and power plant operations in Hungary.

Business need:
MAVIR manages the electricity generation and transmission network in Hungary. Network asset information contained in multiple separate systems did not provide an overview of planned maintenance and costs. Data extracted and consolidated manually was slow to arrive and potentially contained errors. MAVIR wanted to create process efficiencies at the operational level, and deliver validated cost data to its SAP financial solutions for accurate budget and planning purposes, ulitmately designed to improve transmission network efficiency.

Solution:
MAVIR implemented IBM Maximo Asset Management, replacing multiple former software platforms based on GTechnology and Oracle systems, and eliminated legacy hardware by introducing an optimized IBM technology infrastructure.

Benefits:
Provides end-to-end processing of maintenance task costing and asset management by fully integrating with SAP financial and procurement applications. Facilitates bottom-up annual work and budget planning by providing precise details of asset condition and planned expenditure. Leverages heuristics to calculate if an asset is worth maintenance and refurbishment, or if it should be replaced, saving time and money.

Case Study

Magyar Villamosenergia-ipari Átviteli Rendszerirányító Zártkörűen Működő Részvénytársaság (MAVIR) is responsible for electricity transmission operations, network and power plant operations in Hungary.

MAVIR operates as a commercial enterprise, with 140 billion HUF (approximately 526.3 million Euros) of issued capital and an annual turnover of more than 92 billion HUF (about 345.86 million Euro). MAVIR employs around 600 people, and in 2007 paid dividends of 8.8 billion HUF (33.08 million Euro) to the state.

MAVIR is also responsible for long-term energy security, international energy trading, and ensuring open and fair competition in the liberalized Hungarian electricity marketplace. Central to these duties is reliable, cost-efficient management of generation and transmission capacity and underlying assets.

For example, MAVIR focuses on preventative maintenance to ensure that it can meet its obligations to provide energy. Planned maintenance and knowledge of scheduled system outages can help maximize grid performance without impacting energy delivery.

MAVIR was using SAP applications to run its general business administration and financial processes, which did not include the technical support data required for operational decision-making. Day-to-day maintenance, repair and replacement work was managed using several different tools, which at the time had no direct connection to the SAP solution.

The Project Manager for the Work Asset Management project says, “Assembling an integrated picture of asset condition, work schedules, maintenance tasks and outage planning was a manual process, prone to error and delay. Similarly, updating the balance sheet with revised condition status and value was also a manual process, with the danger that the financial position could be out of date or misstated.

“Optimization of maintenance tasks, outage planning, asset and work management is a must. With information in many different systems, obtaining an overview of maintenance operations was so laborious that it simply was not practical.”

More efficient maintenance planning
The MAVIR team wanted to introduce significantly more efficient planning of preventive maintenance works, and to be able to plan labor, tools, services and materials for work orders without the need for manual collation of data. MAVIR's task is to ensure the maintenance of the electrical transmission system on the expected level while keeping the costs of maintenance as low as possible.

These objectives implied the need to manage work and assets from a centralized system that would store all the related data in a single location, and create work orders based on condition and planned maintenance schedules. This could then link to automatic outage planning with resource leveling, enabling annual business planning of maintenance and refurbishment works. It would also enable maintenance teams to execute, follow and update the status of work orders while working on-site as each job completed.

Moving to a single solution
MAVIR was operating Primavera Project Management, SCADA, Syclo Work Manager, and Intergraph-based GIS. Further data was stored in network operational and event reporting tools, industrial control systems and document handling systems.

The MAVIR team chose to consolidate all its asset management and reporting to IBM Maximo Asset Management software, replacing multiple separate systems with a single, fully integrated source of information, workflow and scheduling across the entire enterprise. MAVIR now manages transmission lines and substations, and all the assets connected to them, using Maximo. In total, some 140 users access the Maximo applications.

Maximo unifies comprehensive asset life cycle and maintenance management on a single platform, from asset condition right through to the work processes required for maintenance and replacement. This feature enables full lifecycle planning and control.

From within Maximo, MAVIR is able to manage asset deployment, specifications, monitoring, calibration, costing and tracking. Maximo provides long and short-term planning, preventive, reactive and condition-based maintenance, schedule management, resource optimization and key performance indicators, and includes inventory planning for operational safety reserves that ensures MAVIR is able to meet maintenance demand, making the right parts available at the right location when needed.

If a device fails, the technicians on duty are able to search Maximo immediately for replacement assets, and the data regarding spare parts and inventory balance stored in the SAP solutions are available in Maximo. The technicians then plan the intervention actions and record the results. If a sub-contractor needs to be involved, work contracts can be prepared in Maximo, which provides comprehensive support for purchase, lease, rental, warranty, rate, master, blanket and user-defined contracts.
The same contracts are transferred to the SAP applications, which handle payment and accounting. The financial data is also available to Maximo, to be used in the creation and monitoring of annual business plans.

Detailed cost data captured in Maximo is exported to the SAP applications, to ensure that financial reporting is fully up to date and, for the first time, accurately reflects MAVIR’s asset value position. Special reports are created within Maximo, which collects the relevant data to be loaded to the SAP applications, including vendor master, material master, service master, inventory data, contracts, purchase orders, chart of accounts, and annual business plan values.

The Project Manager says, “As a result of implementing the new integration interfaces, we were able to update and re-validate the data held in the SAP applications. The confirmed data helps us to support the work of technicians, who are responsible for the transmission system itself.”

In effect, Maximo displays data from technical point of view, which suits the technicians, while SAP applications handle the finances, and ensures that enterprise accounting rules and policies are followed.

The Project Manager says, “Using Maximo supports and optimizes maintenance of our assets more efficiently. With the help of Maximo, we can create, review, optimize and execute maintenance strategy from a single location, and then send the necessary financial and operational data as confirmed, validated data to the SAP solutions.

“Maximo also supports business planning from the technical point of view, and MAVIR now has a centralized work and asset management system. Using risk-based maintenance and asset management optimization processes within Maximo, we are able to reduce asset lifecycle costs. By following and analyzing data collected in Maximo, for example by monitoring key performance indicators and regularly running asset reports, our decision-making is now fact-based and has improved as a result. As a consequence of the data management capabilities of the Maximo solution, MAVIR is able to avoid considerable manual costs in managing both assets and related works.

Building a new architecture
To complete the migration to Maximo, MAVIR chose to implement a range of IBM infrastructure and eliminate legacy and other systems, saving costs and reducing complexity.

Maximo runs on an IBM Power Systems 550 server, supporting several virtual servers using logical partitions, and with an IBM BladeCenter chassis containing IBM JS22, JS12 and HS21 blades powered by Intel and POWER processors. MAVIR uses IBM System Storage DS4700 to store data.
The work and asset management system was implemented in four phases. In phase one, basic asset management was introduced, and in phase two, MAVIR enabled the work management and process control features. In phase three, MAVIR completed the asset and work management functionality with full business planning. In this phase, IBM also introduced the fundamentals of asset management optimization. Phase four consisted of the integration of a pilot program, known as Supervisory Control and Data Acquisition (SCADA).

From initial request for proposals (RFP) to go-live, the program took slightly more than three years. Implementation services were provided by IBM Global Technology Services in partnership with MVM Informatika - which covered the SAP side integration tasks - over a period of two years, and the project was completed on time, and on budget.

Enhanced business efficiency
With Maximo providing comprehensive physical asset management services, the data provided to the SAP applications has enormously improved MAVIR’s business planning processes.

Formerly, annual business planning was completed exclusively within the SAP applications, with top-down commitments to budgets and work planning. With Maximo, financial data is generated by precise knowledge of asset condition and planned expenditure, which provides bottom-up planning data. Based on accurate bottom-up information, costs can be planned much more precisely. Business planning is now completed within Maximo, and the values are sent to the SAP applications for approval.

In the SAP applications, assets are grouped from a financial point of view, which optimizes the analysis process according to the chart of accounts. Maximo groups assets on a technical basis, and supports the calculation of direct- and indirect costs on a per-asset basis. With information organized by asset, it is easier to decide if an asset is worth maintenance and refurbishment, or if it should be replaced. Using this decision data, technical divisions are able to send their business and contract plans to the financial analysis teams, who then return confirmed budgets to the departments.

The work and asset management system provides MAVIR with a world-class IT support, and enables introduction of mobile work management based on Syclo Mobile Work Manager and self-developed GIS mobile components.

Work managers are now able to track the workers using the GPS position provided by mobile client devices, and field workers can record their route to hard-to-approach locations. IBM also developed an emergency button that can be used by the field workers in critical situations.

With tight integration between work and asset management and the SAP applications, MAVIR can fully support the asset management process that covers the yearly and mid-term business planning areas as well. These processes are now extended to include risk-based maintenance planning that includes the outage planning perspective for the first time. Business planning is fully supported by Primavera, used by MAVIR for resource and outage planning purposes.

Geospatial data is stored in the GIS component of the work and asset management system. GIS is used to provide easy-to-use graphical views of the network that helps field and central workers to find the proper assets and locations on time. Substation single-line view is also stored in GIS, with the addition of Land Registry data.

The Project Manager concludes, “Asset management optimization is key for efficiency at MAVIR, and Maximo provides an outstanding solution for a complex and diverse business. From within a single solution, Maximo offers comprehensive maintenance strategy, business planning and cost-reduction capabilities, across the asset lifecycle.”

Products and services used

IBM products and services that were used in this case study.

Hardware:
BladeCenter, BladeCenter JS12 Express, BladeCenter JS22 Express, Power 550 Express, Power Systems, Storage, Storage: DS4700 Express, Storage: EXP810

Software:
Maximo Asset Management

Service:
GTS Data Center Services, GTS ITS Middleware: Middleware Implementation Services, IBM-SAP Alliance

Legal Information

© Copyright IBM Corporation 2011. IBM Hungary Ltd. Neumann János u. 1. H-1117 Budapest Hungary Produced in Hungary. November 2011. All Rights Reserved. IBM, the IBM logo, ibm.com, Power Systems, System Storage, BladeCenter and Maximo are trademarks of International Business Machines Corporation, registered in many jurisdictions worldwide. A current list of other IBM trademarks is available on the Web at “Copyright and trademark information” at http://www.ibm.com/legal/copytrade.shtml. Other company, product or service names may be trademarks, or service marks of others. References in this publication to IBM products, programs or services do not imply that IBM intends to make these available in all countries in which IBM operates. Any reference to an IBM product, program or service is not intended to imply that only IBM’s product, program or service may be used. Any functionally equivalent product, program or service may be used instead. All customer examples cited represent how some customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics will vary depending on individual customer configurations and conditions. IBM hardware products are manufactured from new parts, or new and used parts. In some cases, the hardware product may not be new and may have been previously installed. Regardless, IBM warranty terms apply. This publication is for general guidance only. Photographs may show design models.