Introduction to Oracle eAM (Enterprise Asset Management)

and our implementation experiences

Jeremy CarsonApplications 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 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

L1 SMP Stockton Mobile Plant

L2 SMP-PNStockton Production

L3 SMP-MAXMining and Excavating

L3 SMP-PN-EXTAccess Roading and

Boring

AT2301

AT2302

AT2303

HT2225

HT2227

HT2227

Capital Assets

(Virtual)

Asset GroupsCapital Assets

(Physical)

RIM00011

Rebuildable

Inventory

AT

-CA

T-7

40

HT

-CA

T-7

77

D

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

AT2301

AT2302

AT2303

Asset Groups

AT

-CA

T-7

40

Capital Asset

Activities

PM Schedules

Asset Activities scheduled by Date/Meter Rule or List Date

Associated toAssociated to

Generated Work Orders

Run Forecast Process

Last Service Information

Forecast from Last Service

Work Completion

Complete Work

Last Service Updated

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