ISPM Equipment Warranty Solution for SAP

Tony Ciliberti, PE
Principal Engineer, Reliability Dynamics LLC tony.ciliberti@rd-eam.com

Reliability Dynamics LLC

Integrated Failure Reporting and Warranty Processes

Failure

reporting process based on standard practices:

ISO 14224: Collection and exchange of reliability and maintenance data for equipment Reliability-Centered Maintenance (RCM)

Standard

data collection, merging, and analysis processes

Customers and primary suppliers can use the same process, in essence a common reliability language between them

Failure

reports double as warranty claim forms, if warranty applies Warranty details explicitly given on both equipment records and failure reports Return Material Authorization (RMA) master records

One or more devices assigned to an RMA RMA data visible on equipment master records Complete lifecycle warranty tracking with rigor that eliminates claim duplicity

Reliability Dynamics LLC 2010

Reliability Dynamics LLC

Warranty Process Overview

Reliability Dynamics LLC 2010

Reliability Dynamics LLC

Warranty Master Records

Should contain one or more provisions

Each

provision can be generic or material master record specific

Warranty provision documents can be integrated with material master records with document info records (DIR)

Each

provision has a counter and duration based on counter units Provisions have a link operator (and/or specification) that can be used to specify when a subset of conditions pertain to the overall warranty validity

Can be classified for additional attribute data

Reliability Dynamics LLC

Reliability Dynamics LLC 2010

Warranty Master Records

Reliability Dynamics LLC 2010

Reliability Dynamics LLC

Equipment Master Record Warranty Tab

Shows warranty master records, provisions, and overall status
Positive

result

Warranty master level: all provisions of the warranty are valid based on the link operator (and/or specification) Provision level: the individual provision is valid

Negative

result

Warranty master level: one or more provisions of the warranty are invalid with an and link operator Provision level: the individual provision is invalid

Reliability Dynamics LLC 2010

Reliability Dynamics LLC

Equipment Master Record RMA Tab

Shows the last RMA master record assignment Details include other equipment items that are also assigned to the RMA Equipment serialization
Gives

equipment a unique identity in the field (PM) and the warehouse (MM)
EQ# = MM# + Serial# Gives complete lifecycle tracking of equipment Facilitates goods transfers of equipment

Reliability Dynamics LLC 2010

Reliability Dynamics LLC

Equipment Master Record User Status

Equipment user status is set to RMA RMA processing when assigned to an RMA master record
The

status controls/restricts business processes not allowed while the equipment is out of service Once received back from the vendor, the status is reset to the appropriate setting

Reliability Dynamics LLC 2010

Reliability Dynamics LLC

Notification: Equipment Failure Report

Failure reporting process based on ISO 14224 and Reliability-Centered Maintenance (RCM) methodologies The notification doubles as a failure reporting mechanism and warranty claim form
Warranty

statuses are explicitly shown on the first tab

ISO 14224:2006 Petroleum, petrochemical and natural gas industries -- Collection and exchange of reliability and maintenance data for equipment

Reliability Dynamics LLC 2010

Reliability Dynamics LLC

Notification: Failure Report User Status

10

Usage:
Administer

RMA process Designate warranty claims Administer warranty disputes

A notification cannot be closed if a warranty dispute is unresolved

Reliability Dynamics LLC 2010

Reliability Dynamics LLC

Notification: Level 1 Failure Assessment

11

Catalog coding is used to specify functional failures:

Multiple

reporting parties can input their findings, including the vendor One or more entries possible per reporting party

Reliability Dynamics LLC 2010

Reliability Dynamics LLC

Notification: Level 2 Failure Assessment

12

Use coding to specify:

Component Root

failure mechanism

cause Error codes

Reporting

party

Codes 100% consistent with vendor reliability coding process (common reliability language)
Customer

and vendor failure findings can be compared (and disputed) programmatically

Level 2 coding can be maintained in SAP front-end via characteristic maintenance (CT04)
Reliability Dynamics LLC 2010

Reliability Dynamics LLC

Notification: Failure Disposition Coding

13

Actions taken by customer and vendor Used to document what was done to address:
The

failure (corrective actions) Warranty (if applicable)

Reliability Dynamics LLC 2010

Reliability Dynamics LLC

RMA Master Record

14

Installed Base (IBase) functionality used to create RMA master records

RMA

is the vendor Return Materials Authorization

Used to administer equipment returns for warranty and/or evaluation by vendor

Change

effectivity gives complete lifecycle tracking of all changes and updates to RMA records including equipment assignments and removals Materials serialization allows complete integration with material management processes

Tracking via goods movements Quality management processes Unique specification on SD orders

Reliability Dynamics LLC 2010

Reliability Dynamics LLC

RMA Master Record: Temporal Limitation

15

Only

one equipment can be assigned to one RMA record at one time

If you assign an equipment that is already part of another IBase, you will get the system message shown at right Effectivity gives you complete reporting and details for every equipment IBase assignment, E.g.:

Equipment P101 may be assigned to RMA record 001 from time A to time B, and then to RMA record 002 from time C to time D Complete records for both RMA records and assignments to those RMA records are maintained by the system

Ensures

no duplicate submittals to

vendor

Reliability Dynamics LLC 2010

Reliability Dynamics LLC

RMA Master Record: User Status

16

Used to administer RMA process

Reliability Dynamics LLC 2010

Reliability Dynamics LLC

Onsite Repairs with Vendor Warranty Credits and Core Credits

Warranty repair costs should be reimbursed by the vendor

17

The PM repair order is the mechanism used to confirm proper vendor credit
All

material transactions must be booked against the respective repair orders

Goods issues of spare parts Goods return of remanufactured cores

Credits must be reconciled against actual credits

Failed components (if required by vendor) Replacement parts from vendor returned to inventory with credit to respective orders

Credits

for labor must be booked against the respective repair orders

The order balance:

Should

be appoximately zero for warranty repairs (depending on terms) Should reflect core credits when using Caterpillars remanufactured parts Reman Program (or equivalent program by other vendors)

Reliability Dynamics LLC 2010

Reliability Dynamics LLC

PM Repair Orders List Report: Confirm Vendor Credits

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Reliability Dynamics LLC 2010

Reliability Dynamics LLC