Introduction to Oracle eAM

(Enterprise Asset Management)

and our implementation experiences


Jeremy Carson
Applications Manager
CMMS - Computerised Maintenance Management
System

Point Solution
e.g. Maximo, Mexx

or
ERP Integrated Solution
e.g Oracle E-Business Suite, JDE, Peoplesoft
or
Other
e.g. Excel

What do you have ?
?
Agenda
Solid Energy Overview
Key Configuration Steps
Asset Model
Maintenance Tasks
Work Management
Preventative Maintenance
Cost Management
Key experiences
Questions ?




Solid Energy Overview

Solid Energy Overview Energy Business
Coal - Steel Production (Export / NZ Steel) Electricity Generation (Genesis)
- Domestic Industries (Fonterra / Holcim / Alliance / Silver Fern)
Renewables Wood pellets / Biodiesel / Solar
New Energy Coal Seam Gas, Coal to Fertiliser
Solid Energy Overview - People
Approx 1200 employees nationwide, predominately in the Waikato, South
Island West Coast and Southland
Approx 600 directly employed contractors

Solid Energy Overview - Assets
An asset intensive business
High focus on Health and Safety
High focus on availability and utilisation of assets
Predominately Mobile and Fixed Plant assets
Solid Energy Assets - Trucks
Solid Energy Assets - Excavators
Solid Energy Assets Conveyors
Solid Energy Assets Underground Miners
Solid Energy Assets Water Treatment Plants
Solid Energy Assets Train Loadouts
Solid Energy Overview Our eAM Install
Have used Oracle eAM since 2003 as an early adopter on Oracle E-
Business Suite 11.5.7
Now using Oracle E-Business Suite 12.0.6
Currently have 6 live Oracle eAM sites/organisations
System Statistics
- 15,000+ work orders per annum
- 2000+ maintained assets
- 4000+ preventative maintenance activities
- 5000+ maintenance purchase requisitions per annum
- 10000+ maintenance inventory issues per annum


Key Configuration Steps

Configuration Steps Taxonomy document
As part of solution design create a Taxonomy document, which defines;
eAM organization parameters e.g. default WIP Accounting Class
Key lookups e.g. Areas, Departments, Categories
Define standards and naming conventions for key setup areas
- Asset Model e.g. Asset Number/Groups/Hierarchy/Categories
- Maintenance Tasks e.g. Activities, Activity Type/Source/Cause
- Work Management e.g. Work Order Type/Status/Priority
- Preventative Maintenance e.g. Meters, Schedules
Taxonomy must understand system limitations e.g. Asset Number must be
unique
Taxonomy is a living documentrefine with subsequent implementations
Successful taxonomy makes system intuitive for users

Configuration Steps Solution Design document
Document how Oracle eAM will deliver each business process e.g. Asset
Breakdown to Work Order creation
Swim lane the business process across business roles e.g. maintenance,
procurement, stores
Detailed application mapping to requirements for each process step
Review regularly and iteratively with key maintenance personnel
Develop Proof of Concepts to assist with design validation and acceptance


Asset Model

Asset Model - Asset Numbers
Asset Numbers are the key entity in eAM
Mostly represent physical assets
Can be virtual assets in asset hierarchy for roll-up/grouping
Assets are setup either as a;
- Capital Asset or
- Rebuildable Inventory Components which rotate on/off Capital Assets and are
repaired/refurbished in between.
Asset Numbers exist in separate register (using Oracle Install Base) than
the Fixed Asset register
Asset Numbers can be linked to a single Fixed Asset Number



TIP: Asset Numbers must be unique through the system
Consider physical asset naming and common sites names


Asset Model - Asset Number screen
Asset Model - Asset Number screen
Asset Model - Asset Groups
Each Asset belongs to an Asset Group
Many key configurations driven by Asset Group
- Asset Bills of Materials Typical materials used for maintenance
- Templates Provides automatic creation of Preventative Maintenance
configuration e.g. Activities, Meters, Schedules
- Asset Attributes Storage of additional asset information
- Failure Analysis Failure, Cause and Resolution
Define groups to represent virtually identical assets, in terms of materials
and preventative maintenance e.g. Make and Model combination.




TIP: Asset Groups must be unique through the system


Asset Model - Asset Groups screen
Asset Model - Asset Hierarchy
Assets belong in a hierarchy
Each Asset has a Parent Asset
Establishes a roll-up mechanism for;
- Cost reporting
- Preventative Maintenance forecasting
- Searches
- Maintenance and failure history
Virtual assets at top of hierarchy to deliver meaningful rollups;
- Production or process affinity
- Geographical or physical location





Asset Model - Asset Hierarchy screen






Asset Model - Summary
L1 SMP
Stockton Mobile Plant
L2 SMP-PN
Stockton Production
L3 SMP-MAX
Mining and Excavating
L3 SMP-PN-EXT
Access Roading and
Boring
AT2301
AT2302
AT2303
HT2225
HT2227
HT2227
Capital Assets
(Virtual)
Asset Groups
Capital Assets
(Physical)
RIM00011
Rebuildable
Inventory
A
T
-
C
A
T
-
7
4
0
H
T
-
C
A
T
-
7
7
7
D


Maintenance Tasks

Maintenance Tasks - Activities
Activities are predefined Maintenance work to be completed
Generally routine work e.g. exchange pump, replace tyres or preventative
maintenance work e.g. services / inspections
Activities define the following
- Tasks More detailed tasks of the predefined work
- Bills of Materials Required materials
- Routings Required labour or equipment
- File attachments Such as service sheet, diagrams, safety procedures

Create Activity Association Template to associate to an Asset Group
or associate to an individual Asset





Maintenance Tasks Activity Association screen


Work Management

Work Management Work Requests
Simple interface to capture reactive Maintenance work
Can go through approval process, then be assigned to Work Orders



Work Management Work Requests
Work Management Work Orders
Work Orders represent specific instances of Maintenance work for an asset
Created in the following ways;
- Manually i.e. unplanned / corrective work
- Automatically by Preventative Maintenance forecast
- Automatically from Condition Based monitoring (via Oracle Quality)
Work Orders record maintenance history and planned and actual costs
Work Orders must have;
- Asset associated
- One or more Tasks i.e. Operations
- Scheduled Start / End Time
Work Orders can have;
- Predefined Work assigned i.e. Activity
- Material requirements i.e. Stock, Non Stock, Requisitions
- Labour requirements i.e. Trade resource




Work Management Work Orders screen
Work Management Work Orders screen
Work Management Completion




Completion updates Last Service information e.g. 250hr service
completed at 12,500 hrs on 01-Feb-2010
Prevents further costs being coded to the Work Order
Captures the following information;
- Actual Start and End time
- Job Notes
- Failure Analysis


Work Management Completion screen


Preventative Maintenance

Preventative Maintenance - Schedules
Define when activities should occur for an Asset or Asset Group
Defined to occur by;
- Date Rules every 7 days
- Meter Rules every 50 hours, 10000 kms
- List Dates on 01-Jan-2011
Work forecasts from Last Service Information i.e. when activity was last
completed for the asset
- Date Rules on 01-Jan-2010
- Meter Rules at 2000 hours
- Combinations of the above
Single definition can schedule multiple activities which share a common
base interval
Schedules can include suppression e.g. 250hr service suppresses 50hr service
if its forecast within 20 hours of it


Preventative Maintenance Schedules screen
Preventative Maintenance - Meters
Meters used to schedule activities
Ascending meters e.g. kilometres, hours
Fluctuating meters e.g. temperature, pressure, vibration
Meter hierarchies allowing parent meter to increment children e.g. truck
hours increments rim hours



Preventative Maintenance Meters screen
Preventative Maintenance - Forecasting
Forecasting generates Work Orders as per schedules
Forecasts for a specified maintenance window e.g. next 14 days
Can perform online or as a concurrent program
Can selectively forecasts groups of assets

Preventative Maintenance - Forecasting
Preventative Maintenance - Summary
AT2301
AT2302
AT2303
Asset Groups
A
T
-
C
A
T
-
7
4
0
Capital Asset
Activities
PM Schedules
Asset Activities scheduled by
Date/Meter Rule or List Date
Associated to Associated to
Generated Work
Orders
Run Forecast
Process
Last Service Information
Forecast from Last Service
Work
Completion
Complete Work
Last Service Updated


Cost Management

Cost Management WIP Accounting Class (WAC)
WIP Accounting Classes (WAC) define accounting rules
Single GL accounts defined for Material and Resource transactions
Limited capability for complex accounting requirements
Default WAC for Organisation
Can be superseded by WAC configured against the at Asset, Activity or
Work Order





Cost Management Actual to Planned Costs
Planned Costs built up on Work Order using
- Materials Defaulted from Activity BOM or manually requested
- Labour Defaulted from Activity Routing or manually requested

Actual Costs accumulate on Work Order from
- Stores inventory issues to Work Order
- Purchase requisition (Direct Item) receipts
- Maintenance Resource transactions
- Invoice Price Variances (PO Matching)

Cost Analysis can then be performed in multiple ways, such as;
- Asset using Hierarchy
- Work Order
- By Activity




Cost Management Work Order costs


Key experiences

Key Experiences What we have achieved
A single maintenance system throughout the organization
Better integration between stores and maintenance
Comprehensive asset and component history
Focus on preventative maintenance, driving better asset reliability
Better management of maintenance workload
Standardised asset information and maintenance procedures
Ability to analyse asset and maintenance department performance

Key experiences Maintenance Staff Involvement
Maintenance staff involvement essential throughout implementation lifecycle
Creates required buy-in for successful business transition and adoption
Select right person carefully
- Positive / Seeks improvement i.e. this is something new, but we should use
- Resilient / Can do attitude i.e. that not ideal but we can make it work
- Well Respected i.e. will lead others to accept solution and advocate it
Ensure the maintenance team is well trained and supported once live
Key experiences Data load
Data load is manual, complicated and time consuming
Limited open interfaces
- Items (Asset Group, Activities) / Asset Number / Meter Reading
Now several more APIs in R12
- Maintenance Object (Asset Number) / Activity / Preventative Maintenance
We have built custom Excel templates and used DataLoad utility
Have final dataset loaded for UAT, you will get many useful corrections
Key experiences Reporting
Standard reports are limited
Develop a custom Work Order, probably in BI Publisher now
Develop suite of reports to meet user requirements
We developed Discoverer reports, some examples;
- Asset Hierarchy / History / Availability
- Asset / Work Order costing by Hierarchy
- Asset / Work Order Material Requirements
- Asset Failure Analysis
- Key Performance e.g. Planned Versus Unplanned, Maintenance backlog
- Configuration reports e.g. BOMS, Activities, Schedules
Other off the shelf options worth investigating
- Oracle eAM Daily Business Intelligence
- Vizaya WorkAlign Analytics
- Signum EAM Analytics
Key experiences Reporting
Key experiences Subledger Accounting
Get around limitation of single material and labour GL accounts

We use Subledger Accounting to re-code;
- Expense Account Based on Item/PO Category
- Asset Account Based on Flexfield held against Asset Number

Not too complicated once you have a working prototype
Use some consulting initially to get initial setup working
Key experiences Usability
Release 12 Self Service is a dramatic improvement
Maintenance Supervisors can work solely in Self Service
Personalisation can de-clutter Self Service
Consider customisation for pain points
Questions ?
Ask now if we have time
Come see me afterwards
Email me after the conference jeremy.carson@solidenergy.co.nz