Introduction to Oracle eAM

(Enterprise Asset Management)

and our implementation experiences
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 document…refine 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
Capital Assets
L1 SMP (Virtual)
Stockton Mobile Plant

Asset Groups
Capital Assets
L2 SMP-PN (Physical)
Stockton Production

Rebuildable
L3 SMP-MAX AT2301
Inventory

AT-CAT-740
Mining and Excavating
AT2302

AT2303 RIM00011

HT-CAT-777D HT2225

HT2227

HT2227

L3 SMP-PN-EXT
Access Roading and
Boring
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 km’s
- 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

Run Forecast Generated Work

PM Schedules
Process Orders

Asset Activities scheduled by

Date/Meter Rule or List Date Complete Work
Forecast from Last Service

Activities Last Service Information

Work
Completion
Associated to Associated to

AT2301
AT-CAT-740

Last Service Updated

AT2302

AT2303

Asset Groups Capital Asset

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