Explore ERG’s journey with SAP
To ensure its plant equipment and other assets offer high availability and performance, ERG redesigned its maintenance processes based on the reliability-centered maintenance (RCM) approach. With SAP Asset Intelligence Network and SAP Asset Strategy and Performance Management, ERG reduces equipment downtime and maximises asset productivity.
7
%
reduction in unplanned equipment downtime.
10
%
reduction in planned equipment downtime.
8
%
anticipated reduction in asset maintenance costs.
The implementation of intelligent asset management solutions from SAP and SAP Services and Support will enable ERG to better manage its assets and respond swiftly to the evolving market environment.
Nurlan Nursultanov
Asset Reliability Director
Eurasian Resources Group S.à r.l.
The Challenge
Developing a reliability-centered maintenance approach
Eurasian Resources Group S.à r.l. (ERG) is a leading producer of natural resources, with integrated mining, processing, energy, logistics, and marketing operations in 15 countries. Founded in 1994, the company comprises one-third of the metals and mining sector in the Republic of Kazakhstan, and it contributes significantly to the country’s social and economic development.
The diversity of ERG’s businesses led to a large and varied collection of equipment assets responsible for supporting production processes. Despite costly, time-consuming maintenance efforts, the company experienced repeated equipment failures and unplanned downtimes. A lack of transparency compromised decision-making on maintenance issues.
ERG wanted to develop a reliability-centered maintenance (RCM) approach that would improve equipment dependability, reduce repair costs, and increase the efficiency of maintenance processes – without negatively affecting asset performance. The company also needed to elevate asset maintenance in the minds of workers and in the corporate culture.
Because it had already deployed the plant maintenance component of the SAP ERP application, ERG possessed an extensive asset maintenance history. To manage its production assets more efficiently, the company hoped to build an end-to-end process – extending from top management to the shop floor – that would balance asset reliability and maintenance costs.
The Solution
Creating the foundation for an intelligent asset management environment
To make the most of its significant asset maintenance history and support the deployment of an RCM methodology, ERG worked with the Customer Success organisation at SAP.
Over 14 months, the team from SAP partnered with business experts, reliability engineers, and IT representatives from ERG to optimise equipment downtime recording, the creation of task lists, inspections and checkups, and analysis of failure data. Using SAP Services and Support offerings, the joint team also set standards for developing equipment structures at all plants and created a process for distributing maintenance tasks to workers.
ERG implemented the SAP Asset Strategy and Performance Management application, a cloud solution built on SAP Asset Intelligence Network that enables plant managers and reliability engineers to measure and improve asset performance. The application supported the RCM methodology by allowing the team to rank each asset – considering its impact on safety, environment, and production processes – and focus on the most critical assets.
Using an RCM decision tree, the engineers defined a maintenance strategy type for each asset and developed recommendations that formed the basis of a corporate asset maintenance strategy. They assessed the risk and costs of implementing each recommendation with an eye toward getting the most value from the maintenance budget. The team transferred approved strategies into SAP ERP so they could be used in the planning process.
The Result
Enhancing asset management, reliability, and performance
By implementing SAP solutions and using SAP Services and Support offerings to optimise asset management, ERG improved plant maintenance and advanced its digital transformation. Financial benefits include significant reductions in planned and unplanned downtime and lower asset maintenance costs. Asset performance improved, and the company realised a greater return on its assets.
From an IT perspective, integration between the maintenance strategy and the execution system helped the company gain value faster. SAP Asset Intelligence Network enables information sharing and collaboration with manufacturers, operators, and service providers. The cloud-based deployment optimised infrastructure costs, and advanced data storage will help ERG deploy predictive technologies in the future.
The new solutions also empowered ERG workers. Reliability engineers now have a single workplace to oversee their tasks, and asset management processes require much less labour than before.
Thanks to SAP solutions and SAP Services and Support, ERG is able to better manage its assets – and deliver essential metals and mined resources to customers around the world.
Future Plans
Responding with reliability and speed to market change
Because ERG views SAP Asset Intelligence Network and SAP Asset Strategy and Performance Management as integral parts of its long-term asset management strategy, the company is considering rolling out the solutions to all its plants in Kazakhstan.
It also plans to further integrate its intelligent asset management solutions with the IT landscape. This integration includes using the SAP Predictive Asset Insights solution for better risk assessment based on historical data and building new workflow processes to help ensure the pace and quality of RCM analysis. ERG may also gather equipment data from production systems using the SAP Manufacturing Integration and Intelligence application, which provides real-time status on the condition of assets.
ERG now has the ability to build on its SAP solutions to create a long-term scenario-planning tool that aligns production and sales plans with maintenance strategies and overall equipment effectiveness and availability forecasts.
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About ERG
Headquartered in Kazakhstan, Eurasian Resources Group S.à r.l. (ERG) is a leading producer of natural resources. The company specialises in ferroalloys, iron ore, alumina and aluminum, other nonferrous substances, energy, and logistics. ERG is responsible for one-third of the country’s metals and mining sector.