Senior Sales Consultant SCM Applications Oracle Corporation

Prep PalaciosSenior Sales ConsultantSCM ApplicationsOracle Corporation

Oracle Solution Presentation to Philippine Airlines

Agenda

Introduction to Asset Management Business Drivers Solution Overview Product Demo

Asset Management At-a-Glance

“Some Enterprise Asset Management vendors can mitigate the costs of a best-of-breed strategy by providing

ready-to-use, fixed-price, productized integration; however, many buyers we talk to are looking for single-vendor solutions that provide fewer risks in relationship management and future upgrades.”

– Kristain Steenstrup, Research Vice President, March 2003

• Create schedule• Allocate / procure

materials & services• Maintain, repair,

build, or dispose

Planning and Execution

Tracking & Compliance

• Track and report projects & costs

• Verify compliance• Manage

performance

Asset Strategy

• Perform totalcost analysis

• Develop asset & spares strategies

• Establish 3rd party relationships

Breakdown & Response

• Identify unplanned maintenance / repair

• Approve / schedule work request

Finance Strategy

• Plan current and future investments• Track costs and cash flow• Analyze asset value / ownership

Maintenance Strategy

• Plan and manage maintenance activities, equipment and materials• Track asset history• Analyze performance

Operating Strategy

• Manage production / operating schedules and asset availability• Monitor the condition and status of assets

FinancialModeling

CapitalImprovement

PerformanceManagement

CapitalPlanning Budgeting Procurement

InstallationOperationMaintenance

Decommission Disposal

Asset Management At-a-GlancePart of an Asset Lifecycle Management Solution

Business PressuresEnterprise Integration• What is the best way to

synchronize maintenance and operational schedules?

• How can I get timely information and respond more quickly to change?

Productivity and Cost• How can asset productivity be

improved while reducing labor costs?

• How can I simplify maintenance planning & scheduling in a complex operational environment?

Asset Utilization• How can I minimize downtime

and ensure assets are properly maintained?

• How can I tailor asset maintenance strategies to extend asset life?

Compliance and Oversight• How can I ensure safety and

regulatory compliance?• How do I validate the accuracy

of my financial statements and enforce policy / procedures?

Operational Challenge

Schedules

Spare Parts / Costs

Resources / Costs

Purchases / Invoices

CustomInterfaces

Equipment

Stand Alone ComputerizedStand Alone ComputerizedMaintenance Mgmt SystemMaintenance Mgmt System

Inventory

Financials

Planning& Mfg

Enterprise ApplicationsEnterprise Applications

HumanResources

Procurement

• Integration required: complex, expensive• Reactive maintenance leading to poor asset utilization and unplanned downtime• Mismatched skills and assignments leading to unsafe, inefficient work conditions

Projects / Chargebacks

Assets / Depreciation

Warranty / Contracts

A Need for ChangeLeading Business Trends

• Reliability Centered Maintenance for High Utilization

• Integrated Predictive Maintenance & Ops Scheduling

• Proactive Workplace Safety & Regulatory Compliance

• Enterprise Management of Spare Parts and Equipment

• Automated Procedure and Maintenance Logs

Asset Management Opportunity

Reduced CapitalReduced Capital 50-90% 50-90%

Decrease Surplus StockDecrease Surplus Stock 50-90% 50-90%

Reduced Unit CostsReduced Unit Costs 10-40% 10-40%

Unplanned Downtime Unplanned Downtime 30-40% 30-40%

Improved Productivity Improved Productivity 40-55%40-55%

Improved Safety Improved Safety 20-50%20-50%

Wrench TimeWrench Time 20-50%20-50%

Society for Maintenance and Reliability Professionals (SMRP)Society for Maintenance and Reliability Professionals (SMRP)

“Oracle gives Solid Energy the functionality we need to make better decisions about overhaul and replacement of assets, preventive maintenance routines, and rationalization of spare parts and rotables.” -- Warren Maslin, CFO

What Customers are Saying…

“Oracle Enterprise Asset Management is key to our strategy for maximizing equipment capacity, increasing productivity, decreasing maintenance

costs, and improving health and safety across all our manufacturing and real estate operations.” -- Majid Saif Al Ghurair, CEO

Al Al GhurairGhurair

GroupGroup

“We had already attempted to integrate our systems, but we needed an even more seamless integration.

Oracle E-Business Suite addressed that need.”-- Jerry Malone, Director of Information Systems Support

A Few More Customers…

312 eAM Customers! 171 Live Sites!

Oracle in the Airline IndustryAirlines3 of the top 5 Global 500 airlines run Oracle applications4 of the top 7 Global 500 airlines run Oracle applications7 of the top 15 largest airlines run Oracle applications48 of the world's leading airlines run Oracle E-Business SuiteOver 70% of airlines use Oracle technologyAirports 3 of the top 10 largest airports run Oracle applications 11 of the top 30 largest airports run Oracle applications 40 of the world's leading airports run Oracle E-Business

Suite Over 150 airport sites use Oracle E-Business Suite

Oracle is INDUSTRY ASSOCIATE to IATA IATA Industry Associate program is designed for companies

involved in broad spectrum of issues within the aviation, travel and transportation fields that have an interest in high level industry discussions and presentations.

Oracle is involved in IATA Technical Committee meetings and attends the IATA Annual General Meeting to discuss at executive levels board ranging industry issues.

Oracle is involved in Passenger Services, Airport Services, Engineering & Maintenance and I.T.

E-Business Suite – Customer Relationship MgmtAirlines Business AreaLufthansa Airplus Telesales, Interaction CtrBraethans Norway Marketing, TCAFrontier AirlinesCordiem Interaction CentreQantas Airways Complete CRM SuiteRoyal Jet (UAE) Telesales and CRM suiteTAM Brasil Marketing OnlineUnited Airlines Exec Jet Business

E-Business Suite – B2B / MarketplaceAeroxchange Inc. Cordiem

E-Business Suite: e-Procurement

Boeing, UPS Emirates AirlinesAmerica West Northwest AirlinesSAS Airlines Cathay PacificAir Philippines Philippines AirlinesDragonair Qantas AirwaysAmerican Trans Air TAM Brasil

E-Business Suite - Human Resource (B2Employee)Air Mauritius American TransAir British Airways Czech AirlinesDragon Air Embraer, BrasilEmirates Airlines Philippines AirlinesQatar Airways Qantas AirwaysSri Lankan Airlines Virgin Atlantic AirwaysTAM Brasil

Airline Customers – Business ApplicationOracle is only company providing a complete e-Business Suite (Airlines customers in all areas).

E-Business Suite – Financials in 40+ airlinesAmerican Trans Air Air ChinaAir Malta* Air PhilippinesAir Mauritius China Eastern AirlinesChina Southern Airlines China Southwest AirlinesCordiem Czech AirlinesDragonAir Emirates AirlinesFrontier Airlines Gulf AirHorizon Air Iberia Airlines of SpainOlympic Airlines Philippines AirlinesQatar Airway Qantas AirwaysRoyal Brunei Airlines Royal Jet (UAE)Royal Jordanian Airlines SAS AirlinesShanghai Airlines Shenjiang AirlinesSri Lankian Airlines* TACA GroupTAM Brasil* United AirlinesVietnam Airlines Virgin Atlantic AirlinesYunnan AirlinesMore than any other ERP vendor.

E-Business Suite – Engineering & MaintenanceGE Aircraft Engine Israel Air ForceEvergreen Aviation Tech. American AirlinesItalian Air Force Qantas AirwaysSiberia Airlines Tam Linhas Aereas S/ATucson Airport Authority

E-Business Suite – iLearning British Airways Embraer (Aerochain) Qantas AirwaysTAM Brasil Virgin Atlantic

Industry Participation:

Highest levelPartner IATA

Business Business DriversDrivers

Discovery Map

Decentralized information

Manual/ Calendar based PM scheduling

Paper based tracking of work orders

Hard to acquire

reports/ prone to errors

Hard to find meaningful

data

No means to capture

equipment condition

Increase operational

efficiency and productivity

Increase equipment unplanned downtime/

failures

No basis for more accurate

spare parts planning

Ensure optimal

quality and safety of work

Fail to capture all

maintenance work details

Minimize maintenance

cost

Hard to track maintenance

cost

Decrease work order

scheduling efficiency

Inability to do analysis on

transactional information

Decrease maintenance cost control

Solution Solution OverviewOverview

DevelopMarket

Sell

Order

Plan

Procure

MakeFulfill

Service

Maintain

Finance

HR

Projects

Contracts

Customers,Customers,

Suppliers,Suppliers,

Products,Products, ……

Common data model enables a single source of truth

Comprehensive suite of applications designed to work together

Robust set of integration services based on open standards

Modular deploymentby business flow

Single global instance implementations

Foundation: Unified Information Architecture

Facility / GSEMaintenance

Supply Chain• Procure all needed

materials, including labor contracts

• Manage all resources and materials from a common enterprise plan

Financials / Fixed Assets• Identify costs (e.g.

capital improvements) that impact asset depreciation schedules

• Accumulate costs and post to general ledger

Human Resources• Assign resources

based on work order needs

• Track and monitor personnel skills / certifications; ensure license renewals

Project / Property Mgmt• Manage space

utilization and assign costs accordingly

• Capture costs at the work order level and upload to managetotal project costs

GSE MaintenanceSupport Complete Facility & Equipment Lifecycle

Enterprise Asset Management (eAM)

Plannin

g:

Mainten

ance

Planning:

Predictive

Usage

Meter Readings

Inspection LimitsProduction Schedules

Engineering Specifications

Maintenance Requirements

DynamicPlan

Adjustments

CompleteCompleteDispatchDispatchApproveApproveCreateCreate

W/OW/OSelf-Service

Unplan

ned

Planned

Execution: Workflow DrivenExecution: Workflow Driven

Estimated Life

MaximizeSafety &

ComplianceBenefits: Optimize

Utilization

PurchasingPurchasing

InventoryInventory

HR: SkillsHR: Skills

• Drive Maintenance Best Practices• Effectively Plan for Personnel, Equipment, and Parts • Provide Self-Service Access to Work Requests & Status

* Ground Support Equipment

Asset Schedules• Forecasted usage• Planned events

Work Orders• Current work based

on failures• Preventive maintenance

Engineering Specs• Asset / facility capacity

needed to meet demandMaterial Planning• Receiving / inventory• Purchase req / PO

Resource Planning• Tools and equipment• Personnel, skills Work Execution

• Work results and time entry

• Meter readings

Maintenance Schedules

Asset Utilization Strategy

GSE MaintenanceOptimize Equipment & Facilities Utilization

Maintain Integration, Not Assets

ERP Applications

Procurement

Inventory

Projects

Documents

Workflow

APIs

General Ledger

Documents

Workflow

CMS Interfaces

3rd Party Providers

ComputerizedMaintenance Management

System (CMMS)

Custom Interface

Custom Interface

Custom Interface

Custom Interface

Traditional Asset Maintenance

Eliminate Cost and Complexity of Multi-Vendor Systems

ERP Applications

Procurement

Inventory

Projects

Manufacturing

Service

General Ledger

eAM

• Reduce information latency and synchronization issues

• Minimize implementation time and cost

• Decrease maintenance and upgrade cost

• Scale to meetgrowth demands

Assets,Assets,

Resources,Resources,

Suppliers, …Suppliers, …

Single Source of Truth

… etc …

Foundation: Common Data Model

Example: Integrated Information Flow

Capitalized Depreciation

MaintainableAssets

Posting Integration

Chart of Accounts

Plans &Work Orders

Costs & Tasks

Availability, CostsBOM’s & Routings

Material Req’s & POs

Service Requests & Customer

Information

Operation Completion

Employees & Skills

eAM

ProcurementProcurement ManufacturingManufacturing ProjectsProjects InventoryInventory ServiceServiceSuppliersSuppliers

HumanHumanResourcesResources

AccountsAccountsPayablePayable

Fixed Fixed AssetsAssets

PropertyPropertyManagementManagement

GeneralGeneralLedgerLedger

Asset Maintenance Best Practice Goal

Source: PWC Best Practices for Asset Intensive Industries

0%

10%

20%

30%

40%

50%

60%

Reactive Preventive ConditionBased

Common Practice Best Practice

Increase Proportion of Condition Based Maintenance Performed

0%

10%

20%

30%

40%

50%

60%

Reactive Preventive ConditionBased

Benefits of Oracle eAM

No integration costs Lower system maintenance costs No issues with upgrade Single data entry Retains data integrity Real-time access to intelligence Oracle Skills

ProductProductDemoDemo

Discovery Map

Decentralized information

Manual/ Calendar based PM scheduling

Paper based tracking of work orders

Hard to acquire

reports / prone to errors

Hard to find meaningful

data

No means to capture

equipment condition

Increase operational

efficiency and productivity

Increase equipment unplanned downtime/

failures

No basis for more accurate

spare parts planning

Ensure optimal

quality and safety of work

Fail to capture all

maintenance work details

Minimize maintenance

cost

Hard to track maintenance

cost

Decrease work order

scheduling efficiency

Inability to do analysis on

transactional information

Decrease maintenance cost control

Assets and Activities

(Refer to demo script)

Define and Track Standard ProceduresComply with Regulatory and Safety Requirements

Benefits

• Equip Technicians to Perform Quality Work, on Time and Within Guidelines

- Minimize time to locate required documentation

- Reduce incident rate- Decrease work order errors- Ensure optimal repair work

• Monitor & Audit Compliance- Avoid fines and reduce

non-compliance risk

• Assign Qualified or Certified Technicians to Tasks

• Define SOPs and Required Documentation

- Procedures (e.g., safety, hazardous material)

- Dependent task planning (e.g., Tag out)

- Specifications / drawings- Special handling

• Manage Work Order Execution - Automatically create audit trail

and electronic history

• Skills Selection- Search and select by technician

certifications or competencies

Structured Definition

Discovery Map

Manual/ Calendar based PM scheduling

Paper based tracking of work orders

No means to capture

equipment condition

Increase operational

efficiency and productivity

Increase equipment unplanned downtime/

failures

No basis for more accurate

spare parts planning

Fail to capture all

maintenance work details

Minimize maintenance

cost

Hard to track maintenance

cost

Decrease work order

scheduling efficiency

Inability to do analysis on

transactional information

Decrease maintenance cost controlCentralized

and Organized Information

•Equipment 201•Specifications•Procedures•Skills

Use information to speed up the

process

Use information to

create meaningful

reports

Ensure optimal

quality and safety of work

Discovery Map

Manual/ Calendar based PM scheduling

Paper based tracking of work orders

No means to capture

equipment condition

Increase operational

efficiency and productivity

Increase equipment unplanned downtime/

failures

No basis for more accurate

spare parts planning

Fail to capture all

maintenance work details

Minimize maintenance

cost

Hard to track maintenance

cost

Decrease work order

scheduling efficiency

Inability to do analysis on

transactional information

Decrease maintenance cost controlCentralized

and Organized Information

•Equipment 201•Specifications•Procedures•Skills

Use information to speed up the

process

Use information to

create meaningful

reports

Ensure optimal

quality and safety of work

Multiple Maintenance Strategies

Unplanned Maint Scheduling

Maintenance RequestEquipment Failure,

Inspection Readings

Operator Initiated WO Req / ApprovalNotify Asset OwnerGenerate Work Order

Auto or Manual Work Request ApprovalR

eact

ive

System Identificationof Limit Violations

Condition Monitoring

Temp, Flow Rate, Wear, Vibration, Calibration

Workflow-Driven System Action

Notify Asset OwnerGenerate Work OrderC

ondi

tion

Bas

ed

Auto-Creates WorkSeasonal &

Alternative Strategies

Real-Time, Recommended Forecast Based on Plans, Estimates, and Actual Usage

Dynamic Plan Adjustments

MaintenanceForecast

Planned UsagePlanned Calendar Events,

Production Forecast

Actual UsageAPIs to Monitoring

Systems / Multiple Meters

MaintenanceSchedules

Estimated LifeRun to Failure,

Planned breakdowns

Pre

vent

ive

Plan Maintenance and Repairs in Any Environment

Self-Service Work RequestsEnable Immediate Problem Reporting

ReportedProblem

AssetOriginator

Rotable

Status Change

• Optionally assign asset / serial number• Intelligent default of asset information

• Allow users to report problems for themselves and for other users

• Accept a condition which triggers a request• Accept a request from 3rd party system

Capital Asset

Machine/ProgramInterface

Any Employee

Generate Request

Truck Number 103

Asset / Serial Number

Generate Request

Work Request

Demo

Preventive MaintenancePredictive MaintenanceReactive Maintenance

Rebuildables

Planned Maintenance

(Refer to demo script)

Predictive Maintenance

Collection PlansCreate WO to Inspect an Asset

Enter Conditions based on Inspection

WR Automatically CreatedCreate WO with ref to WR

Reactive Maintenance

(Refer to demo script)

Rebuildables

(Refer to demo script)

Rebuildables

Discovery Map

Centralized and Organized

Information

Preventive Maintenance

Paper based tracking of work orders•Equipment 201

•Specifications•Procedures•Skills

Use information to speed up the

process

Use information to

create meaningful

reports

Predictive Maintenance/

Equipment Monitoring

Increase operational

efficiency and productivity

Decrease equipment unplanned downtime/

failures

More accurate spare parts

planning

Ensure optimal

quality and safety of work

Fail to capture all

maintenance work details

Minimize maintenance

cost

Hard to track maintenance

cost

Increase work order

scheduling efficiency

Inability to do analysis on

transactional information

Decrease maintenance cost control

Reactive Maintenanc

e

Maximize Asset

Utilization

Compliance

Discovery Map

Centralized and Organized

Information

Preventive Maintenance

Paper based tracking of work orders•Equipment 201

•Specifications•Procedures•Skills

Use information to speed up the

process

Use information to

create meaningful

reports

Predictive Maintenance/

Equipment Monitoring

Increase operational

efficiency and productivity

Decrease equipment unplanned downtime/

failures

More accurate spare parts

planning

Ensure optimal

quality and safety of work

Fail to capture all

maintenance work details

Minimize maintenance

cost

Hard to track maintenance

cost

Increase work order

scheduling efficiency

Inability to do analysis on

transactional information

Decrease maintenance cost control

Reactive Maintenance

Maximize Asset

Utilization

Execute Work Orders

(Refer to demo script)

Demo Flow

Review WO Cost Estimates

Issue Materials to

WO

Enter Resource

TransactionsComplete

WO

Demo Flow

Review WO Cost Estimates

Issue Materials to

WO

Enter Resource

TransactionsComplete

WO

Demo Flow

Review WO Cost Estimates

Issue Materials to

WO

Enter Resource

TransactionsComplete

WO

Demo Flow

Review WO Cost Estimates

Issue Materials to

WO

Enter Resource

TransactionsComplete

WO

Demo Flow

Review WO Cost Estimates

Issue Materials to

WO

Enter Resource

TransactionsComplete

WO

Demo Flow

Review WO/ Assign

employeeCost

EstimatesIssue

Materials to WO

Enter Resource

TransactionsComplete

WO

Discovery Map

Centralized and Organized

Information

Preventive Maintenance

Ability to enter WO

transactions in an

integrated system

•Equipment 201•Specifications•Procedures•Skills

Use information to speed up the

process

Use information to

create meaningful

reports

Predictive Maintenance/

Equipment Monitoring

Increase operational

efficiency and productivity

Decrease equipment unplanned downtime/

failures

More accurate spare parts

planning

Ensure optimal

quality and safety of work

Capture all work order

details (actuals)

Minimize maintenance

cost

Track maintenance

cost

Increase work order

scheduling efficiency

Ability to do analysis on

transactional information

Increase maintenance cost control

Maximize Asset

Utilization

Rebuildables

Reactive Maintenanc

e

Compliance

– Objective: Set institutional targets – Fact: Provide performance-based metrics– Exception: Continuously evaluate performance

Manage By…

What is my work order completion percentage?

Deliver Daily Business IntelligenceReal-Time Access to Complete Business Information

Are work order backlog and asset downtime improving?

Where are the largest cost variances and what is their trend?

What is my request to resolution cycle time?

How can resource utilization be improved?

Corporate Governance:Visibility, Control,

Efficiency

Automate Processes and Extend to Suppliers & Subcontractors

YourCompany

Suppliers & Subcontractors

• Consolidate and reconcile financial information rapidly

• Automate maintenance processes & enable self-service

• Simplify IT infrastructure• Leverage best practices from

different groups / regions

Visibility

Efficiency

Provide Single Source of the Truth Centrally Manage Policies and Procedures

Control

Orders

Invoices

Payments

Requisitions

• Identify and respond earlier to significant production outages

• Enable real-time access and analysis of maintenance KPIs

• Consolidate capital improvement costs and expenses globally

• Integrate and centralizemaintenance operations

• Document SOPs and track safety / regulatory compliance

• Automate work order / work request approval

• Manage subcontractor communications

Demo

Discoverer Reports

SummarySummary

Value Proposition

Centralized and Organized

Information

Preventive Maintenance

Ability to enter WO

transactions in an

integrated system

•Equipment 201•Specifications•Procedures•Skills

Use information to speed up the

process

Use information to

create meaningful

reports

Predictive Maintenance/

Equipment Monitoring

Increase operational

efficiency and productivity

Decrease equipment unplanned downtime/

failures

More accurate spare parts

planning

Ensure optimal

quality and safety of work

Capture all work order

details (actuals)

Minimize maintenance

cost

Track maintenance

cost

Increase work order

scheduling efficiency

Ability to do analysis on

transactional information

Increase maintenance cost control

Maximize Asset

Utilization

Rebuildables

Reactive Maintenanc

e

Compliance

Oracle Enterprise Asset Management

Multiple maintenance strategies,work order planning & relationships, spares mgmt, predictive analysis

Drive MaintenanceDrive MaintenanceBest PracticesBest Practices

Project planning and execution, global logistics, asset disposal management

Manage the Full Manage the Full Asset LifecycleAsset Lifecycle

Common data model, flexible financial accounting and control, integrated intelligence

Support Compliance and Support Compliance and Corporate GovernanceCorporate Governance

Replace Standalone Replace Standalone Maintenance SystemsMaintenance Systems

Single global instance with out ofthe box integration

Provide SimpleProvide SimpleSelf-Service AccessSelf-Service Access

Self service role-based access, automated work request, maintenance user workbench

Thank You