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

Capital Assets (Physical)

AT-CAT-740

L3 SMP-MAX Mining and Excavating

AT2301 AT2302 AT2303 RIM00011

Rebuildable Inventory

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 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

PM Schedules Run Forecast Process Generated Work Orders

Asset Activities scheduled by Date/Meter Rule or List Date

Forecast from Last Service

Complete Work

Activities Associated to Associated to AT2301

Last Service Information Work Completion

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