Introduction to Oracle e AM Enterprise Asset Management

Introduction to Oracle e. AM (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

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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 e. AM Install · Have used Oracle e. AM 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 e. AM 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; · e. AM 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 e. AM 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 e. AM 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

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. 250 hr 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. 250 hr service suppresses 50 hr 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

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 R 12 - Maintenance Object (Asset Number) / Activity / Preventative Maintenance · We have built custom Excel templates and used Data. Load 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 e. AM Daily Business Intelligence - Vizaya Work. Align® 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