HBIS Tangshan Iron and Steel: Gaining a Competitive Edge with the SAP® Enterprise Asset Management Solution The iron and steel industry is facing tough times in today’s marketplace. In order to meet quality demands, management needs tools to better monitor equipment, materials, and budgets. HBIS Tangshan Iron and Steel deployed the SAP® Enterprise Asset Management solution with its existing SAP ERP application, resulting in fewer spare parts and lower maintenance and overhaul costs. Picture Credit | HBIS Tangshan Iron and Steel, Tangshan, China. Used with permission. SAP Business Transformation Study | Mill Products | HBIS Tangshan Iron and Steel Group SAP Business Transformation Study | Mill Products | HBIS Tangshan Iron and Steel Group Executive overview Company HBIS Tangshan Iron and Steel Group Co. Ltd. Headquarters Tangshan, China Industry Mill products Products and Services High-quality iron and steel plate Employees 37,000 Revenue Yuan 64.34 billion (US$10.33 billion) (2010) Web Site www.tangsteel.com.cn Partner China Hewlett-Packard Co. Ltd. www8.hp.com/hk BUSINESS TRANSFORMATION TOP BENEFITS ACHIEVED The company's top objectives • Maintain an equipment system that runs efficiently and without defects • Streamline equipment management processes • Improve safety by eliminating equipment malfunctions • Achieve visibility and improve management control over spare parts and materials to improve efficiency 425 million The resolution • Implemented a single, standardized equipment management system using multiple functionalities of the SAP® ERP application, including plant maintenance and procurement • Consolidated data on 57,000 pieces of equipment and 2 million bills of materials over 2,087 locations • Centralized management of spare parts to optimize inventory levels and minimize cost The key benefits • Automated, standardized, and transparent equipment management • Better management of spare parts resulting in lower inventory levels • More efficient budget control for easier monitoring and faster distribution “The new plant maintenance solution has helped us improve the condition of our equipment, which means fewer malfunctions and accidents. Not only does this increase safety for our workers, it saves us money as well.” 23666 (12/11) Wang Lanyu, Executive Deputy General Manager, HBIS Tangshan Iron and Steel Group Co. Ltd. :/ www.spap.corm/ceompasny/lesgal/iumpresm um.e xp hCt p:o/ wpwwy.sarp.icgomh/cotm/panTy/lregaal/cdopeyrigm ht/inaderx.ekpx | htPp:/ w wr.sap.icomv/compaany/legcal/privyacy.epx | hIt pm ht p:/ www.sap.com/company/legal/copyright/index.epx ht p:/ w w.sap.com/company/legal/privacy.epx ht p:/ www.sap.com/company/legal/impres um.e xp Yuan saved in maintenance costs compared with the previous year 21 % Fewer spare parts consumed per ton of steel within one year 59% Reduction in overhaul costs within six months