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
Cost element
Cost category (lookup)
Implement from Horizon Start
Date
Auto Approve
Extend Log
Asset Number Mandatory
Enable Materials issue requests
Value rebuildable at zero cost
Auto Firm on Release
Maintenance Offset
4. General eAM setup
1. Area
Usage Remark
Indicate how to capture cost overheads and any
miscellaneous resource costs.
use as the default for departments that do not
have a cost category defined. Department costs
are then posted to the appropriate cost
elements.
to bypass past due Work Order suggestions
when executing the Preventive Maintenance
process. If this check box is selected, suggested
Work orders, from the Horizon Start Date
forward, are executed.
If the Auto Approve check box is selected, Work Awaiting WO =
Requests are created with an approved WR
Awaiting Work Order status. If the check box is
not selected, Work Requests are created with an
Open status.
the system keeps an audit trail of records when
defining or updating Work Requests.
Whether asset number is required in WR
the Enable Material Issue Requests check box on
eAM Work Orders
defaults as selected
If this check box is selected, rebuildable items
issued out of the subinventory expense account
are issued at zero cost.
If selected, the dates on the Work Order
cannot automatically reschedule.
This account records what is sent to Inventory
when a Rebuildable is removed from an Asset,
and then transferred into Inventory.
Dr. Inventory
Cr. Maintenance Offset
 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 Subinventory Enter if the resource is a machine. The system uses the supply
subinventory specified for the resource if the routing does not specify
a supply subinventory.
Outside Processing If outside processing enabled, system uses item defined in this box
when it 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 account Used to offset resource charges earned in WIP

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 type MTL_EAM_ACTIVITY_TYPE Type of Inspection
maintenance work Maintenance
that is performed Lubrications
on an asset Overhauls
Calibration
Repetitive work,
Rebuild, etc.
2 Activity cause MTL_EAM_ACTIVITY_CAUSE Reasons for an Preventive
asset failure Normal wear
Rework
Breakdown, etc.
3 Activity source MTL_EAM_ACTIVIY_SOURCE Reasons activities Warranty compliance
are executed HSE requirement
Standard activity
Failure
Rework, etc.
4 Asset activity WIP_EAM_ACTIVITY_PRIORITY Asset Activity Low,
priority priority level Medium,
High
5 Cost category BOM_EAM_COST_CATEGORY
code
6 Criticality code MTL_EAM_ASSET_CRITICALITY Importance of an High
asset to an Medium
organization Normal
 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
type System
Routine
Capital
Preventive
Emergency
Low Priority
Med Priority
High Priority
12 Work order WIP_EAM_ACTIVITY_PRIORITY The planner or High
and Work supervisor Medium
request compares this Low
priority code priority to the
asset criticality

13 Work order WIP_EAM_RECONCILIATION_CO Fixed Completely

reconciliation DE Partially Fixed
code 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 scheduling The meter is used in preventive maintenance scheduling. If selected,
usage rate 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 department Represent the crew responsible for the asset. WR
Notifications will be sent to the Primary approver
of the owning department.
WIP Accounting class Identify the expense account of the WO performed
for the asset.
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 Material Indicate that PR/PO are created automatically, for the current
component or 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