Oracle Enterprise Asset Management

R12 – An Overview
( Part – I )

ERPSOFT LLC
17th June 2010 Vinod Menon
Email: vinodkumar.n.menon@accenture.com
Purpose

• Understand the high level overview of Oracle EAM R12

functionalities.
• Understand the mandatory modules that requires to
support Oracle EAM.
• Quick understanding of Maintenance Solution in
Oracle(eAM/cMRO).
• Understand the integration touch point and business
process flows for each oracle modules.
• Overview of some important end-to-end process ( For
example, Asset Acquisition to Maintenance/Tracking).
 Fixed Assets/Capital Assets may need Periodic or
Preventive Maintenance
• Fixed Asset

 Property, Buildings, and Equipment/Tools

 Property:
o Land

 Buildings:
o Office Buildings
o Shop Floor

 Equipment/Vehicles:
o Equipments, Trucks/Support Vehicles, Arms, Computers, Cars

• On time preventive maintenance saves a lot of money for organizations in terms of

productivity, shutdowns etc.
• Preventive maintenance also saves money by extending life of an asset.
 Inventory items : May also need maintenance

In a maintenance world there are two types of items:

• Repairable or Re-buildable items
• Consumable items

• Re-buildable inventory
An item that is sub-assembly/part of an Asset but need
maintenance periodically and can be repaired then re-used.
– Motors
– Engines
– Tires
• Consumable inventory
An item that are used for maintenance or one time used item in an
asset. Once it is not functioning or broke or consumed, it is
scrapped.
– Oil
– filters
– Nuts/bolts
Oracle EAM support preventive maintenance as well as incidental repairs for
re-buildable Inventory.
Again, on time maintenance of re-buildable inventory saves lot of money for organizations.
For example, recommended Tire rotation extend life for tires.
Maintenance – Quick Overview of eAM v/s cMRO

Decision making when to use EAM or cMRO ?

• EAM can be used for maintaining Assets and Re-

buildable /Repairable Inventory items. Assets can
include:-
– Equipments/Tools/Vehicles
– Repairable/Re-buildable Inventory
– Land/Facilities/Buildings
• cMRO is a maintenance solution for the entire
maintenance life cycle for complex assets specifically
Aerospace industry & supports the following:
– Aircraft induction
– Flight Line maintenance
– Heavy maintenance planning
– Heavy maintenance execution
– Engine and component overhaul

When to use EAM ( Enterprise Asset Management) and cMRO ( Complex Material, Repair
& Overhaul ? Why can’t we use the same the product formaintaining all the Assets?
Maintenance – Quick Overview of eAM v/s cMRO – Contd.
cMRO
• Maintaining assets that fly
(such as jets)
• cMRO have Govt./Military
configuration control and
regulatory functionality
• cMRO run a ‘depot’ that
manages major repairs on a
regularly scheduled basis
(think of a major overhaul
for an airplane).
• cMRO more of a
“maintenance depot”
business process
eAM
• Maintaining Assets and Re-
buildable parts that doesn't
fly
• EAM does not have all
Govt. configuration and
regulatory controls to
support Aircraft, Ships,
Missile etc.
• EAM is a “maintenance
planning” tool

In short , Airlines/Missiles - anything that fly is cMRO ! The main reason being complexity
In maintenance and Govt. regulations/policies on maintenance like FAA, DoD etc. Also these assets
needs seasonal maintenance plans. For example, War time v/s peace Time maintenance plan for
Military Aircrafts or Winter maintenance v/s Summer maintenance for commercial Airlines.
 Oracle eAM Mandatory & Optional Modules
Mandatory Modules
Implementation of Enterprise Asset Management includes configuration of shared components
from the following products:
• Oracle Inventory
• Oracle Bills of Material
• Oracle Human Resources
• Oracle Cost Management
• Oracle Manufacturing Scheduling
• Oracle Work In Process
• Oracle Quality
Optional Modules
• Oracle Master Scheduling/MRP
• Oracle Property Management
• Oracle Financials
• Oracle Fixed Assets
• Oracle iProcurement
• Oracle Projects
• Oracle Project Manufacturing
• Oracle Purchasing
• Oracle Order Management
• Oracle Time and Labor

As you can see Oracle eAM is not a stand alone module. In order to function there are some
mandatory modules need to be setup. Also based on the business requirements for each customer
Additional modules may be needed.
Oracle eAM Standard Integration - Overview

Receiving Changes to Capitalized

Asset Depreciation

T&A Purchasing Manufacturing Inventory Projects Service

Time Product & Service Request

Maint WO Project / Task,
PO Entry WO Materials, Linked to
Transactions WO Costs
Reqs Linked to WOR / WO
WO & Workflow Costs
Updates

WO Updates,
Suppliers Catalogs eAM Customers

Chart of WO
Posting
Accounts Billing Depreciable Maintainable
Integration
Employees & Assets/WO Assets
Skills Capitalization

HR AP GL AR FA Property

Req & PO Changes, AP-to-PO Matching/Reconciliation

 R12 - Asset Creation in FA, eAM & OAT (Oracle Asset Tracking)

– Any Asset purchased needs to be added to Assets using Mass

Addition process.
– In R12, upon purchase order receipt, assets can be created in EAM
and templates can be applied so that the maintenance strategy is
established automatically.
– After receipt, the same asset can be interfaced to Fixed Assets,
via concurrent processes. ( Mass Addition Program )
– You can also add assets from other sources. ( Using API’s – say
from Legacy systems,).
– If OAT ( Oracle Asset Tracking ) is installed a record will be
created in OAT so that the asset tracking will be initiated.
– You can manually create Assets in EAM too.

Now you have the asset recorded into the Financial Asset Books as well as in EAM. If you setup
And apply appropriate templates the Asset is ready for maintenance schedule in EAM. This saves
Lot of data entry efforts.
 Oracle Asset Tracking - R12 – Quick Overview
• Oracle Asset Tracking provides an enterprise tracking and asset
management system where all inventory, project, customer, and
asset-related material information is stored, providing a 360-degree
view of your assets ( Inventory, Fixed or Capital Assets). You can
locate materials anywhere in the system in warehouses, on trucks,
installed in the network, or on project sites facilitating financial
transactions using physical movements of material and equipment.
In addition, Oracle Asset Tracking can provide a life-cycle history of
all activity for that equipment.
• Provides automatic handling of costs, units and location updates in
Fixed Assets for inventory transfers, asset deployment and internal
sales order shipments
• Oracle Asset Tracking is tightly integrated with other oracle
modules like Assets, Inventory, Enterprise Asset Management (EAM),
Purchasing, Order Management, Projects etc.

This is an enhanced version of Rel 11i Enterprise Install base module and tighly integrated with
eAM and other modules using XML messages.
 Asset Tracking XML integration with other modules - High
Level Flow

Asset Tracking receives XML based messages when an inventory or asset transaction occurs if it
is marked as “Asset Trackable” in the item master. Messages can be setup for legacy Systems too.
Asset Acquisition and Tracking
Business Process – R12
Create a PO for the Asset Group in EAM

Make sure that the Asset Group set up in the Inventory and EAM. Also Activity , Activity BOM’s,
Maintenance Templates etc. are setup and applied to the Asset Group.
Approve the PO

PO is approved and sent out to the Supplier. Ready to receive it from the Supplier.
Receive the Assets

Search using PO and Supplier

Receive the Asset into the Asset Sub-Inventory

Make sure that the Assets are received into a Sub-inventory that is setup as “Asset Sub-inventory”
Also eAM category has been setup and selected. This will trigger API to populate eAM .
Assign Serial Numbers to the Asset while receiving

It is important that the asset Group is setup as serial control so that each asset can be uniquely
Identified and maintained. . In this case since it is vehicle VIN number can be used.
Verify that eAM Asset is created automatically

In R12, receiving will kick off the asset creation automatically in eAM and OAT ( Oracle Asset
Tracking) using API.
Check Meter

You can see that using Pre-defined Meter Templates assigned to the Asset Group the meter
has been created automatically too.
Check the Activity Association

You can see that pre-defined activity templates resulted in automatic assignment of activities for
the eAM Asset just received.
Check the Activity Association

You can see that the sub-inventory location received will be initially assigned to the Asset.
Assigning PM Schedule

Assigning PM Schedule for the Asset using the PM Schedule Template. Or you can create one new.
.
Assigning PM Schedule using the Templates

Remember that PM Schedule can be rules based or List Dates. ( maintenance to be performed on a
Specific day )
View PM Schedule Details

Using PM Schedule templates assigned to the Asset Group, the PM schedule was assigned
automatically.
View Meter Association of PM Schedule

Using the Meter Template, the associated meter was created and will be used with the defined
Rules for the PM Schedule.
View Meter Rules and Readings

Service Date & Meter Reading information can also be viewed. Since this asset has just been
acquired, the default reading for the service is zero (0).
View Asset Tracking Module

The same asset can be viewed from OAT.

To perform this, change responsibility to: Asset Tracking Super User.
View Asset Tracking Details

In the General tab, the Organization, eAM Asset Description (Instance Name) display. Also note
that the Accounting Classification is Inventory . This value will change after we create the
Fixed Asset.
View Asset Tracking – Maintenance Information

This Information will also change after Fixed Asset has been created ( FA ).
View Asset Hierarchy

After searching for the parent Asset associated with one of the newly purchased assets, you can see that the EAM Asset & the VIN
(entered as the SN for the asset at receipt) is now part of the hierarchy. The asset has been established and now part of maintenance
and work can be performed on the asset. Because it is inventoried, it can also be transferred to another EAM Organization should
the asset change location or require service in another maintenance organization.
Creating Fixed Assets – Create Accounting

Before creating Fixed Assets, you must cost the Receipt. ( Inventory Manager must be running) and
the Sub ledger Accounting process is required to run.
Creating Fixed Assets – Create Accounting Object

Select the process Create Assets: Interface Inventory Transactions to Oracle Assets.
This process will pass the Asset information to Oracle Assets.
.
Creating Fixed Assets – Run Post Mass Additions

From the Assets or Asset Tracking Responsibility Select the Post Mass Additions.
This will create Assets in the Asset Book.
Creating Fixed Assets – Verify the Asset Creation
Verify EAM Asset Information after FA asset creation

See that Accounting class has now changed to Maintenance from “Inventory”
Verify EAM Asset Information after FA asset creation

See that EAM Asset and The fixed Asset has been linked after running the Mass Addition.
Verify the Asset Tracking History
 Summary

 Streamlined process and integration between Financials (Procurement & Assets), Supply Chain (Inventory), OAT
and eAM.

 Assets can more easily be created for maintenance as they are purchased. This reduces duplicate efforts while
improving accuracy & visibility through transaction history. The use of templates makes the maintenance definition
more efficient and consistent.

 The FA integration provides an accurate link for maintenance and procurement.

 The user has full visibility of asset lifecycle with views that are important to respective operations of the
organization.

 Single source of truth about the lifecycle of an Asset from Acquisition to Maintenance to Retirement.