Why Predictive Maintenance with SAP PM is a Game Changer

The core concepts of Predictive Maintenance (PdM) have been around for over 35 years. They can be compared to maintaining a car, where reactive maintenance means waiting for a breakdown on the highway, while preventive maintenance means getting regular tune-ups every 5,000 miles.

However, PdM today is like a modern vehicle, which suggests service based on the actual condition of its engine, predicting issues before they arise. According to a white paper by SAP partner Sigga Technologies, this just-in-time approach is significantly more efficient and cost-effective than reacting to failures or adhering to generic schedules.

A Boon for Assets

In asset-intensive industries such as oil and Gas, Chemicals, and Mining, PdM is gaining ground and transforming operations. The whitepaper illustrates this change with some examples:

• Organizations using modern PdM consistently report downtime reductions of up to 45%
• These organizations also reduced costs by as much as 30%

Citing statistics from the U.S. Department of Energy, the white paper notes that organizations estimate a remarkable 10 times return on investment (ROI) for PdM programs. Considering that downtime costs manufacturers an estimated $50 billion annually, and McKinsey projects up to $360 billion in annual savings by the end of 2025 from predictive maintenance, embracing PdM is now a competitive necessity.

The Technology Fueling PdM

At the heart of PdM is data, collected by a new generation of reliable and increasingly affordable internet-connected (IoT) sensors. These sensors continuously monitor parameters such as temperature, humidity, vibration, and pressure, enabling maintenance teams to detect anomalies much earlier.

Moreover, intelligent algorithms, powered by artificial intelligence (AI), neural networks, and generative AI, truly unlock PdM’s potential. These algorithms can detect subtle changes over time that human analysts might miss, making predictions more accurate and leading to cost savings of 18-25%.

Still, human expertise remains vital for successful PdM. Experienced maintenance professionals utilize easily digestible dashboards and reports that bring AI-driven predictions to the surface, enabling them to make informed decisions and prioritize resources effectively.

Measuring Success

Before an organization even begins its PdM project, it should define what success looks like for the project. Sigga’s whitepaper recommends these key metrics to track:

• MTTR (Mean Time To Repair): The average time taken to fix a breakdown.
• MTBF (Mean Time Between Failures): The average time between breakdowns.
• OEE (Overall Equipment Effectiveness): A measure of how effectively equipment is utilized (availability × performance × quality).

Monitoring these indicators helps understand what works and where adjustments are needed to reduce unplanned downtime and boost operational efficiency.

Additionally, organizations must prioritize solutions that offer native integrations with their current ERP, especially if they are leveraging SAP PM. Proper integration with the ERP system ensures real-time updates of work orders, provides a complete view of asset history and documentation, and enables intelligent planning based on historical data and forecasts.

Finally, predictive maintenance is the path to enhanced efficiency, reduced costs, and a significant competitive advantage in 2025 and beyond.

What This Means for SAPinsiders

Predictive maintenance is a competitive necessity. Modern PdM leverages IoT sensors for real-time data collection and intelligent algorithms, such as AI, neural networks, and generative AI, to predict failures before they occur. This data-driven approach yields significant benefits, including downtime reductions of up to 45%, cost reductions of up to 30%, and a potential 10-fold return on investment, making it essential for staying competitive.

Native integration with SAP is essential for success. For any PdM initiative to be successful in an SAP environment, native integration is non-negotiable. Therefore, seamless integration with systems like SAP Plant Maintenance (PM) is essential for real-time work order updates, a comprehensive view of asset history, and intelligent planning based on historical data. This ensures that the PdM solution works in concert with the existing SAP system to maximize its effectiveness.

Sigga offers specialized SAP-integrated solutions for PdM. SAP partners, such as Sigga Technologies, with its Sigga EAM Empower and Sigga Planning & Scheduling solutions, specialize in helping maintenance teams optimize operations within the SAP ecosystem. Register now for Sigga’s EAM Best Practices & Trends in the SAP PM Ecosystem conference in Houston, Texas on September 23 to learn about the challenges, opportunities and the future outlook for PdM.