Oracle eAM Implementation Setup

steps...Useful
Enterprise Asset Management Setups and Usage

eAM Setups

1. Organization setup

An eAM organization must be classified as an Inventory organization. You can

classify an eAM as other product organizations, as well.

2. Enabling Organization for eAM

(N) Setup> Organization Parameter

Select the EAM Enabled check box to enable Enterprise Asset Management for this
organization. You cannot clear this check box after Enterprise Asset Management
items or Enterprise Asset Management parameters are defined in the current
organization

For organizations that are not Enterprise Asset Management enabled, you can
populate the EAM Organization field with an Enterprise Asset Management enabled
organization code. The designated eAM organization maintains equipment items for
the designated production organization.

3. Defining eAM parameters

(N) Setup > Parameters

Attribute Usage Remark

Cost element Indicate how to capture cost overheads and any miscellaneous
resource costs.
Cost category use as the default for departments that do not have a cost
(lookup) category defined. Department costs are then posted to the
appropriate cost elements.
Implement from to bypass past due Work Order suggestions when executing the
Horizon Start Preventive Maintenance process. If this check box is selected,
suggested Work orders, from the Horizon Start Date forward,
Date are executed.
Auto Approve If the Auto Approve check box is selected, Work Awaiting
WO =
Requests are created with an
approved
Awaiting Work Order status. If the check box is not selected, WR
Work Requests are created with an Open status.
Extend Log the system keeps an audit trail of records when defining or
updating Work Requests.
Asset Number Whether asset number is required in WR
Mandatory
Enable Materials the Enable Material Issue Requests check box on eAM Work
issue requests Orders

defaults as selected
Value rebuildable If this check box is selected, rebuildable items issued out of the
at zero cost subinventory expense account are issued at zero cost.
Auto Firm on If selected, the dates on the Work Order cannot automatically
Release reschedule.
Maintenance This account records what is sent to Inventory when a
Offset Rebuildable is removed from an Asset, and then transferred into
Inventory.

Dr. Inventory

Cr. Maintenance Offset

4. General eAM setup

1. Area

2. Department (crews) and Resources (crafts)

A department represents a crew within your organization. A crew may include people,
machines, or suppliers. Department will be assigned to each operation of a routing and
resources that are available for that department will be assigned.

Define Resource (Crafts)

Attribute Usage
Charge Type Manual: You must manually charge it to a job

PO Receipt: Auto charge this resource upon receipt of PO

PO Move: Auto charge this resource upon receipt of a PO and move the
assemblies to Queue of the next operation
Supply Enter if the resource is a machine. The system uses the supply subinventory
Subinventory specified for the resource if the routing does not specify a supply
subinventory.
Outside If outside processing enabled, system uses item defined in this box when it
Processing creates requisitions for your OSP resource
Standard Rate Disable standard rate to enter a rate to charge the resource in WIP for an
internal resource, or derive the rate from the PO for an OSP resource

If the resource is charged at standard rate, PPV is computed and posted to the
rate variance account.
Absorption Used to offset resource charges earned in WIP
account
For OSP resource, the default is the receiving valuation account from
receiving option in Purchasing setup

PO Receipt Acct for OSP:

Receiving:

Dr. Receiving Inventory

Cr. AP Accrual

Deliver:

Dr. WIP OSP account

Cr. Receiving inventory

Sample of Resources

1. Production Manager

2. Field Manager
3. Planner

4. Maintenance Foreman

5. Lead Operator

6. Operator

7. Maintenance Specialist

8. Mechanic

9. Electrical Specialist

10. Instrument Specialist

11. Logistics

12. Safety

13. EI&O

Note: For PR of OSP resource will be generated, the following checklists must be
confirmed.

1. Outside processing line type must be enabled and have outside processing flag
checked

2. Valid location is defined in department setups

3. Buyer and price list must be available in OSP item setup

** Import source for the PR created for OSP resource is ‘WIP’, where import source
for PR created for direct item is ‘EAM’

Define Department (Crews)

Sample of Department

1. E&I

2. Maintenance
3. Operation

4. HSE

5. Logistics

3. Define username for each resources

3.1 Create 1 responsibility for 1 department

3.2 Create username for each resources

3.3 Assign responsibility to each username according to their department

4. Define Department Approvers

If the primary approver is blank, a notification will be sent to all users having this
responsibility.

5. Define Lookup codes

The following are lookups that need to be defined/reviewed for eAM

No Lookup Lookup Type Name Description Sample Values

Meaning
1 Activity MTL_EAM_ACTIVITY_TYPE Type of Inspection
type maintenance Maintenance
work that is Lubrications
performed on an Overhauls
asset Calibration
Repetitive work,
Rebuild, etc.
2 Activity MTL_EAM_ACTIVITY_CAUSE Reasons for an Preventive Normal
cause asset failure wear Rework
Breakdown, etc.
3 Activity MTL_EAM_ACTIVIY_SOURCE Reasons Warranty
source activities are compliance HSE
executed requirement
Standard activity
Failure
 Rework, etc.
4 Asset WIP_EAM_ACTIVITY_PRIORITY Asset Activity Low, Medium,
activity priority level High
priority
5 Cost BOM_EAM_COST_CATEGORY
category
code
6 Criticality MTL_EAM_ASSET_CRITICALITY Importance of High Medium
code an asset to an Normal
organization

No Lookup Lookup Type Name Description Sample Values

Meaning
Low
10 Work request WIP_EAM_WORK_REQ_STATUS Open
statuses
Additional info
required,
Awaiting work
order Rejected

Completed
11 Work request WIP_EAM_WORK_REQ_TYPE Manual System
type Routine Capital
Preventive
Emergency Low
Priority Med
Priority High
Priority
12 Work order WIP_EAM_ACTIVITY_PRIORITY The planner High Medium
and Work or supervisor Low
request compares this
priority code priority to the
asset
criticality
13 Work order WIP_EAM_RECONCILIATION_CO Fixed
reconciliation DE Completely
code
 Partially Fixed

Contact
Manufacturer

Scrap asset
Rework
Incomplete
14 Work order WIP_EAM_WORK_ORDER_TYPE Routine
type Preventive
Emergency
Rebuildable

6. Setup Category code

7. Setup Category set for Enterprise Asset Management

8. Change Attribute Control for Item master

Change Item attribute name: transactable and stockable to have ‘Status Setting’ =
Defaults Value

Note

Before this attribute can be modified, the Project Manufacturing parameter must be
recompiled. To recompile, just query the project manufacturing parameter via Project
Manufacturing Superuser responsibility. Then unmark enable project…. And re-mark
it again, then save the record and exit the form.

9. Create Asset Group

Creating item by copying from template @asset group

10. Create Asset Activities

Activities are applied to WO. After these activities are created, they are associated
with one or more Asset number. They are also associated to Maintenance BOM and
activity routing. When WO are created for assets associated to the activity, the
material and resources associated with the current activity automatically copy to the
WO created.

Activities can be created in Item master screen via template @Activities

Activity Notification Required = indicate whether the asset requiring work is mobile
and should be brought into the shop for repairs. This is for information purpose only.

Note: Multiple work orders with the same activity cannot have ‘Release’ status at the
same time.

11. Associate assets with Activities

If you create an activity association template, the activity that you associate with the
current asset group automatically determines the activity that is associated with the
current asset number.

1) Create activity association template

2) Create asset number (Detailed information in step 14)

3) Click at Associate Activity, the activity from the template created in (1) will be
defaulted

12. Defining Meter Template

Attribute Description
Name Template Name
Description Template description
Type Absolute = Normal meter

Change = take the net change and plus or minus the previous value

(cannot be used with preventive maintenance)

UOM Unit of measure
Value change Ascending e.g. Car mileage (meter always goes up) Descending e.g. fuel
guage (meter always goes down)

Blank = Fluctuating (meter can be up and down) e.g. temperature guage

(cannot be used with preventive maintenance)

Used in The meter is used in preventive maintenance scheduling. If selected, usage rate
scheduling and use past reading field are required.
Rate per day Historical rate per day. If enter ‘1’, system will understand that there is no
 historical information for PM calculation.

13. Associate meter template with asset group

1) Create meter template

2) Define Asset number (as per details in step 14)

** After save or the instantiate process completed, the activities and meters will be
automatic associates with the newly created items.

3) Go to Meter Association, the meter name will be automatically created with

naming convention = TEMPLATE NAME – X (running number)

14. Defining Asset Number

There are 3 ways to define asset number:

1) Create asset individually

2) Copying information from existing asset

3) Import Asset number interface

If the asset is saved, it cannot be deleted. The asset can be inactive if there are no open
WO or

WR for the asset and if the asset is not part of an asset hierarchy.

Attribute Description
Owning Represent the crew responsible for the asset. WR Notifications will be sent to
department the Primary approver of the owning department.
WIP Accounting Identify the expense account of the WO performed for the asset.
class
Maintainable If this box is checked, then you can create WR / WO

for the asset.

For example, you can create an asset for cost- tracking purposes. We may
want to see
 the cost for all top level assets in an asset hierarchy, but we do not want to
maintain those assets. In this situation, do not select this check box.

15. Defining Asset Routes

You might need to perform an activity on multiple asset number. To eliminate the
possibility of creating multiple WO for the same activity, you can define asset routes.

Attribute Description
Asset Number Enter the name of asset route

Click at ‘Asset Route’ button

16. Defining Maintenance Routes

eAM operations are not performed sequentially. In eAM, operations may not be
sequential. You can specify that one operation is dependent on another. Also, it is
possible that two unrelated operations can happen concurrently.

Attribute Description
Seq User defined or auto defaulted as per profile setup
Code Standard operation code, if standard operation is predefined and used.
Department Department where the operation is performed
Referenced Any changes to standard operations are reflected in the routing.

Usage Rate or Amount:

Enter ‘Inverse’ when you know the number of units a resource can process (rather
than the duration an assembly unit consumes the resource. For example, if you know a
resource can process 10 units per hour, enter 10 for the inverse.

17. Defining Maintenance BOM

Attribute Description
Auto Request Indicate that PR/PO are created automatically, for the current component or
Material Direct Item when the WO is released.
18. Defining Rebuildable Item

Create item using @Rebuildable template. Rebuildable item is an inventory

transactable but non- purchasable item.

19. Define Activities for Rebuildable and associate to the Asset Group

20. Defining Rebuildable Serial Number

To establish a rebuildable serial number in Inventory

1. Select subinventory to add this item to a subinventory

2. Choose ‘Instantiate to automatically activate a Miscellaneous Receipt’ Process.

** The instantiate process is a one-time process. After the process is successful, the
current status of the asset number changes to ‘Resides in stores’ and the instantiate
option is disabled.

** If the activity template and meter template are defined in prior step, the activity
and meter will be automatic associated with this new asset number after the
instantiates process completed.

21. Non-Stock Direct Item Setup

Non-stock direct items can represent items that are not stocked in inventory, such as
services that are purchased from a supplier. Non-stock direct items are defined in Item
master as an inventory, purchased, purchasable item but not stockable.

These items are delivered directly to the shop floor for maintenance WO execution.
You can defined non-stock direct item using @non-stocked items template

Profile: PO: Enable Direct Delivery To Shop Floor must be set to ‘YES’ to enable
direct item procurement