Key Terms, Used in This Lesson:
- Digital Thread: A communication framework that connects traditionally siloed elements in manufacturing processes (for example, design, production, maintenance) to provide an integrated view of an asset's data throughout its lifecycle.
- Operational Costs: Expenses associated with the operation and maintenance of an organization's assets, including costs related to equipment downtime and service levels.
- Circular Economy: An economic system aimed at eliminating waste and the continual use of resources, achieved by optimizing asset lifespan and managing maintenance, repair, operations (MRO), and decommissioning to maximize recycling and parts reuse.
- Risk & Criticality Assessments: Evaluations conducted to identify the assets or systems that are most critical to an organization's operations, based on the potential risks and impacts of their failure.
- RCM (Reliability Centered Maintenance): A process to ensure that assets continue to do what their users require in their present operating context, focusing on maintaining the reliability of assets.
- FMEA (Failure Modes and Effects Analysis): A systematic, step-by-step approach for identifying all possible failures in a design, a manufacturing or assembly process, or a product or service.
- Rules Engine: A system that allows for the creation and management of complex business rules and logic, enabling dynamic responses based on data inputs.
- SAP Analytics Cloud: A cloud-based solution providing analytical capabilities, including business intelligence, predictive analytics, and planning in an integrated platform.
Business Scenario
Video Summary
In the fast-paced world of manufacturing and maintenance, efficiency and reliability are key. Enter Jessica Martin, an SAP consultant with a deep focus on enterprise asset management. Join us to gain a practical perspective on implementing SAP solutions in asset management.
Lesson Overview: Understanding High Level Capabilities of SAP Asset Performance Management
SAP Asset Performance Management empowers asset owners, plant managers, and reliability engineers to optimize maintenance strategies, measure and improve asset performance, and follow through on sustainability objectives. SAP is in a unique position to deliver on this because many of the world's largest asset operators rely on SAP for their maintenance operations. With that data as the source combined with a solution that brings together proven reliability methodologies and asset health monitoring capabilities, SAP customers adopting SAP APM can transform their asset operations to a living breathing program.
Imagine if you could:
- Close the loop between equipment strategy, planning and execution by linking the entire process with a single digital thread.
- Turn continuous insight into continuous improvement by providing a constant flow of performance information.
- Decrease operational costs, reduce equipment down time and optimize service levels by synchronizing maintenance and service processes with supporting systems across the enterprise.
- Promote a circular economy by optimizing asset lifespan and managing the maintenance, repair and operations (MRO) and de-commissioning to maximize recycling and parts re-use.
SAP Asset Performance Management aims to optimize asset health, performance, and risk through an integrated end-to-end process combining capabilities in SAP APM along with existing business processes in SAP S/4HANA.
Position of SAP Asset Management

Within this process, SAP APM provides capabilities to help define asset maintenance strategies.

This includes:
- Risk & Criticality Assessments.
- Tools such as RCM, FMEA, and others to develop maintenance strategies.
- An application to manage recommendations generated from the maintenance strategy development applications.
- An application to manage the implementation of the maintenance strategy recommendations in the SAP S/4HANA system.
Once strategies are developed, then the health of the assets should be monitored.
Capabilities and Functions to Monitor Asset Health

SAP APM provides a number of capabilities to monitor asset health.
- SAP IoT alongside asset master data and transactional data (such as maintenance notifications) from the SAP S/4 HANA system brings a complete picture of the data.
- AI models, like a Weibull remaining useful life or an anomaly detection model (H2 2024) to help determine the health of the asset and it's remaining useful life.
- A rules engine allows for complex monitoring rules to be leveraged on top of IoT data associated with the equipment.
- Based on the output of the rules, or AI models, maintenance demands can be dynamically generated in SAP S/4HANA.
Finally, SAP APM provides analytical capabilities to dashboard and monitor your fleet of equipment through close integration with SAP Analytics cloud.
In the remaining lessons in this unit, you will dive deeper into each of the capabilities highlighted here.