How Can you Monitor the Condition of your Physical Objects?
Physical objects are often equipped with sensors which monitor a specific physical property such as temperature, pressure etc. Sensors enable you to collect time-series data, and by means of this, detect anomalies and predict failures.
SAP Asset Performance Management (together with SAP IoT and SAP S/4HANA) allows you to work with these physical sensors. The sensors are represented as Indicators in SAP Asset Performance Management.
Indicators
In SAP Asset Performance Management, a physical object is represented by an equipment or a functional location. The equipment contains one or several Indicators which represent the sensors of the physical object. Functional Locations can also have indicators.

The Indicator of an equipment in SAP Asset Performance Management is directly linked to the Measuring Point of the equipment in SAP S/4HANA.
One of the major objectives of SAP Asset Performance Management is to create warnings when certain thresholds are exceeded. Warnings and comparable messages are represented by Alerts which are based on Alert Types.

Alerts
Alerts notify users of anomalies, potential failures, or indicator threshold violations.
Alerts can either be created based on rules, or by alarms raised by equipment. The configuration for the equipment alarms mapping details allow the equipment to send alerts. In a scenario where validation is required with alarms to raise an alert, a trigger-based rule must be defined.
The alert type definition allows you to define the alerts that are based on equipment error codes or based on certain computation on the data, for example by applying rules on the data. The definition can also define associations with an indicator and possible failure modes. The association with failure mode data allows you to identify associations, such as instructions.
Rules
With rules, you can leave it up to the system to permanently keep an eye on each and every sensor data point coming in. You start with one or more technical objects that you want to monitor, pick the indicators and characteristics to be observed, and associate both with a rule.
A rule is the technical representation of simple decision logic that, once evaluated against live data, leads to a decision. In the Rules app, you set up the rules to be applied to incoming values. If a value matches the rule condition, the system triggers an action. With these preparations done, you can rest assured that none of the critical values that you might think go unnoticed, thus making sure that all necessary action can be taken without delay.
Available types of rules in SAP Asset Performance Management are, for example, calculation rules, aggregation rules, or scheduled rules.