SAP Plant Maintenance Work Order

SAP PM work order lifecycle from notification to technical completion

ERP Systems
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Lead Time

256.2h

Cycle Time

6.2h

Wait Time

250.0h

PCE

2.4%

Stages

9

Bottleneck

Settlement & Cost Allocation

Value-Add vs Non-Value-Add

Value-Add (VA)

An activity is value-add if it meets all three criteria:

  • The customer is willing to pay for it
  • It transforms the product or service
  • It is done right the first time

Examples: Assembly, diagnosis, treatment, coding, machining, testing

Non-Value-Add (NVA)

Activities that consume time or resources but don't add value from the customer's perspective:

  • Waiting — queues, approvals, batching delays
  • Transport — moving materials or information
  • Motion — unnecessary movement of people
  • Rework — correcting defects or errors
  • Over-processing — doing more than required

Note: Some NVA is necessary (compliance, safety). Target unnecessary NVA first.

Process Timeline

Value-Add vs Non-Value-Add

Bottleneck Analysis

Stage Efficiency

# Stage Cycle (h) Wait (h) VA Resource Defect % Efficiency
1 Notification Created (IW21) 0.25 2.0 VA Operator / Help Desk 10.0% 11.1%
2 Notification Review & Classification 0.25 8.0 VA Planner 12.0% 3.0%
3 Work Order Created (IW31) 0.5 4.0 VA Planner 5.0% 11.1%
4 Material Reservation & Scheduling 0.5 24.0 VA Planner 8.0% 2.0%
5 Order Release (IW32) 0.1 4.0 VA Planner / Supervisor 2.0% 2.4%
6 Work Execution 4.0 8.0 VA Technician 6.0% 33.3%
7 Time & Material Confirmation (IW41) 0.25 24.0 VA Technician 15.0% 1.0%
8 Technical Completion (TECO) 0.1 8.0 VA Planner 3.0% 1.2%
9 Settlement & Cost Allocation 0.25 168.0 VA Finance / System 4.0% 0.1%