CMMS Implementation

Tennessee Operations Eastman Chemical Company

George Eastman 1920 – Basic Chemicals for Photographic chemicals to Kodak

Eastman Chemical Company A global specialty chemical company headquartered in Kingsport,

Tennessee Approximately 15,000 employees and 50 manufacturing sites around the

globe Serving customers in approximately 100 countries A company dedicated to environmental stewardship, social responsibility,

and economic growth 2015 ENERGY STAR Partner of the Year Sustained Excellence 2014 Ethisphere’s World’s Most Ethical ® Companies 2015 Glassdoor Employees’ Choice Best Places to Work (#30) 2014 revenue of $9.5 billion

Tennessee Operations

~7,000 employees 900 acres 550 buildings 80 maintenance shops 5 major facilities at one plant site 450 million gallons/day of cooling

water The plant uses 58 rail cars of coal per

day 156 MW of electric power 12,000 pressure vessels 25,000 trains of rotating equipment

Centralized Maintenance & Services Tennessee Operations Five Area Maintenance Departments

• Maintenance stewardship for respective manufacturing divisions • Provide routine, day-to-day, maintenance

Central Support Departments • Pipefitting • Millwright services • Contract management • Machining • Metal fabrication • High pressure cleaning • Cranes/Boom trucks

Reliability and Administrative Services • Rotating equipment group • Reliability services group • Reliability engineering group • Division administrative staff

Over 1000 employees in maintenance

Major Advantage

Size

Major Disadvantage

Size

Core Maintenance IT Platforms – Current SAP

• Financial information • Equipment master data • Work execution Work Order system Master work list Planning & Scheduling Work order history

Meridium • Reliability analyses • Mechanical Integrity processes and compliance • Reliability Based Operations and Maintenance (RBOM)

Microsoft • Reporting

If an 80% solution exists in one of the above platforms, use it

TNO CMMS History

Implemented Maintenance Management Information System (MMIS) in 1985 Converted to SAP R/2 in 1995 Implemented Meridium in 1999 Updated to SAP R/3 in 2000 Strong reporting emphasis began in 2009 Currently undergoing a re-implementation process for

Meridium

Maintenance Management Information System (MMIS) Homegrown system Implemented in 1985 First system to eliminate paper work orders System contained the following:

• Work orders • Equipment types (rotating, fixed, and E&I) • Robust equipment attributes and characteristics • Work order history

Life was good!

SAP R/2

Implemented in 1995 Massive effort Integrated company processes (financial, manufacturing,

maintenance, order fulfillment, etc.) Significant learning curve for use of system

• Several perceived, and some real, losses in data and capability

• Some specialized systems developed to compensate for losses

Meridium

Implemented in 1999 Initial implementation included:

• MI inspections Vessels Piping

• Reliability analysis capabilities • Equipment attributes and characteristics (especially E&I)

RBOM implemented in 2005 Over time, system became highly customized

• Customizations made system extremely difficult to upgrade

• Lots of confusion over which data is in Meridium and which is in SAP

SAP R/3

Implemented in 2000 Functional location (equipment) structure changed

• SAP R/2 – functional location for each piece of equipment • SAP R/3 – functional location for an equipment pallet (pump,

motor, gear box, etc,)

Change contributed to additional equipment information being stored in Meridium

• Changes brought about even more specialized systems • Even more confusion over where data is located

Stronger Reporting Emphasis

Business Information Warehouse (BIW) • Implemented in 2008/2009 • Very powerful reporting tool • Not easy to use - Power Users established in each area

BI Analytics • First system implemented in 2011 • Data downloaded from SAP once per day • Easy to use • Lots of data available to the masses

Significantly enhanced capability to get most any information in a timely manner

Planning & Scheduling Analytics

Eliminated need for manual charting Provided a focus on backlog integrity Allowed managers to analyze workloads and adjust

staffing Provides mechanism to analyze completed work

Meridium Re-implementation

Began in 2014 Take Meridium to an “out of the box” solution Agreed that SAP would contain the master equipment

records Make use of the current functionality of Meridium

• Minimizes confusion over where data is located • Takes advantage of current Meridium capabilities

Meridium and SAP

Work History Work Execution

Work Scheduling Work Planning

Maintenance Management

Cycle

Analysis/Assessment

Strategy Development

Strategy Management

Cycle

Execution •Calibration •Inspection •Operator Rounds •Lubrication Management

Path Forward

SAP • Ease of use solutions • Big DATA solutions – HANA • SAP reporting

Meridium • Complete re-implementation • Utilize mobility platform • Implement at other sites as appropriate

Microsoft BI • Productivity analytics • Cost projection analytics • Stores analytics • Investigate impact of SAP reporting

Learnings

Create a structure to work in partnership with IT • Oversight Team Leadership from business side Management from maintenance and IT as members Create 3 to 5 year strategies for each core platform Ensure that resources are available to drive strategies Track progress Break down barriers

• Working Team Leadership from business side Business analysts, IT analysts, key support personnel Identify specific initiatives to drive strategies Set short term priorities Assist in working through problems/issues

Learnings

Core IT Platforms • Agree on core IT platforms Joint agreement between maintenance and IT Ensure long-term support for core platforms

• Define the purpose of each platform Minimizes confusion on how each platform is used

• Strive to minimize the number of platforms Maximum of 2 to 4 platforms

• Develop plans to migrate “one-off” systems into one of the core platforms

• Rarely stray outside core platforms

Learnings

Resist the temptation to customize core software Spend time to understand the importance of each type of

data Have an IT Business Analyst within the organization IT enhancements/projects usually cost more and take

longer than you expect

Learnings

Build robust reporting systems • Types of reporting systems Financial Business process Reliability Compliance Etc.

• Complexity of reporting systems Power user reporting Highly simplified reporting (for use by the masses)

Questions