Oracle Enterprise Asset Management Know More Do More

Oracle Enterprise Asset Management Know More. Do More. Spend Less. <Name> <Title>

Asset Management At-a-Glance Problem Identification • Unplanned downtime • Maintenance request Plan and Execute • Check availability • Assign resources • Allocate or procure materials • Perform work Problem Close Out • Report completion • Manage performance • Track costs “… 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

Business Pressures Cost Reduction • Can labor costs be reduced without impairing operations? Enterprise Integration • How can I synchronize maintenance with production schedules? • What material replacement costs can be avoided? • How can I extend asset life cycle? Problem Identification Asset Availability • How can I minimize machine downtime? • How can I maximize wrench time? Plan and Execute Problem Close Out Safety and Compliance • How do I ensure regulatory compliance? • How do I maximize employee and community safety?

Operational Challenge Stand Alone Computerized Maintenance Mgmt System Maintenance Plan Labor • • Maintenance Plan Revisions Stores Inventory Equipment C U S T O M I N T E R F A C E S Schedules Purchases Resources Costs C U S T O M I N T E R F A C E S Enterprise Applications Planning & Mfg Procurement Inventory Financials Human Resources Integration required: complex, expensive Reactive maintenance leading to poor asset utilization and unplanned downtime Maintenance plans not integrated with production Mismatched skills and assignments leading to unsafe, inefficient work conditions

Functionality Spectrum High Enterprise Asset Management Asset Importance Integrated maintenance and production schedules for complete enterprise view i ex om pl ty Predictive Maintenance Dynamic adjustment of maintenance plans based on user-defined limits / controls C Planned Maintenance Plan and schedule maintenance based on asset requirements to prevent failures Reactive Maintenance Low Repair assets when needed Small Asset Base / Investment Large

A Need for Change Leading Business Trends • Reliability Centered Maintenance for High Utilization • Integrated Predictive Maintenance & Ops Scheduling • Proactive Workplace Safety & Regulatory Compliance • Enterprise Management of Parts / Spares and Tooling • Automated Procedure and Maintenance Logs

Asset Management Opportunity Improved Productivity 40 -55% Improved Safety 20 -50% Wrench Time 20 -50% Reduced Capital 50 -90% Decrease Surplus Stock 50 -90% Reduced Unit Costs 10 -40% Unplanned Downtime 30 -40% Society for Maintenance and Reliability Professionals (SMRP)

How Oracle Delivers

Oracle: Complete E-Business Suite Maintain Finance Projects Service Fulfill ü Automate Key HR Internal Business Processes ü Extend All Product, Customer, & Supplier Information Develop Make Automation to Your Trading Partners ü Drive Continuous Procure Market Plan Order Sell Improvement with Real-Time Intelligence

Enterprise Asset Management Meter Readings Engineering Specifications Production Schedules M Pla ai n nt ni en ng an : ce Maintenance Requirements P Pr lan ed ni ic ng tiv : e Usage Estimated Life Inspection Limits Dynamic Plan Adjustments Planned ne d Purchasing Un pl an HR: Skills Execution: Workflow Driven Self-Service Benefits: Optimize Utilization Create W/O Approve Dispatch Complete Maximize Safety & Compliance Inventory

Oracle Enterprise Asset Management Enables You To… Œ Optimize Asset Utilization Dynamically Adjust Maintenance Plans Maximize Work Safety and Ensure Compliance Integrate Asset Management Throughout Your Enterprise

Planned Maintenance Support Basic Processes Resource Planning • Equipment • Personnel Work Requests Material Planning Maintenance Schedules Execution • Work Results • Meter Readings • Time Entry • Inventory • Purchase Req / PO • Receiving Ÿ Seamless maintenance planning and execution processes Ÿ Ensures materials and components in-place Ÿ Provides central repository for all asset information

Enable Self-Service Work Orders Intuitive Browser-Based UI Ÿ Access remotely through web Ÿ Capture information at the source Ÿ Perform step-by-step transactions Ÿ Require minimal system training Ÿ Reduce time to input information Ÿ Decrease errors in data transfer Ÿ Reduce clerical labor

Extend Planned Maintenance Include Enterprise Drivers Traditional Maintenance Work Orders Current Work Based on Failures Preventative Maintenance Plans Asset Utilization Strategy Unique to Oracle Engineering Specifications Production Sales Orders Equipment Capacity to Meet Demand Generated Demand Asset Availability to Optimize Output / Performance

Optimize Asset Utilization Key Benefits • Reduce Unnecessary Capital Expenditures • Increase Equipment Productivity • Decrease Downtime Due to Problems / Failures • Lower Operating Costs Through Increased Efficiency

Oracle Enterprise Asset Management Enables You To… Œ Optimize Asset Utilization Dynamically Adjust Maintenance Plans Maximize Work Safety and Ensure Compliance Integrate Asset Management Throughout Your Enterprise

Adjust Plans Based on Usage-Related Forecasts Predict and Prevent Asset Failures Meter Readings • APIs to monitoring systems • Multiple meters Planned Maintenance Schedules Maintenance Forecast Usage • Planned calendar events • Common meter names Estimated Life • Run to failure • Planned breakdowns • Condition based • Auto-creates work • Real-time, recommended forecast based on occurrences • User-adjustable

Adjust Plans Based on Limit Violations Predict and Prevent Asset Failures Inspection Limits • Temp • Flow Rate • Vibration • Calibration • Thickness • Wear System Identifies Limit Violations Notifies Asset Owner on Impending Failure - OR - Triggers / Generates Work Requests

Adjust Plans Based on Integrated Intelligence Predict and Prevent Asset Failures Planned Readings Actual Results Analysis Adjust • Feed System With Predefined Specifications • Analyze Performance of All Assets • Track Efficiency and Utilization by Asset • Compare Actual With Planned Results • Identify Maintenance Plan Adjustment Opportunities • Reset Asset Parameters to Match Results

Oracle Enterprise Asset Management Enables You To… Œ Optimize Asset Utilization Dynamically Adjust Maintenance Plans Maximize Work Safety and Ensure Compliance Integrate Asset Management Throughout Your Enterprise

Improve Safety and Compliance Establish Structured Work Order Definition Structured Definition Benefits • Dependent Task Planning • Increased Compliance • Required Documentation • Reduced Incident Rate – Procedures (e. g. safety, tagout, hazardous material) • Decrease Work Order Errors – Specifications / Drawings • Shorter Time to Locate Required Documentation – Special handling • Skills Selection • Accurate Skill Assignment

Workflow Driven Approvals Engineering Required Work Process Compliance Safety Requirements, Work Order Mandatory Data Collection Review Process Approval Work Order Execution Ÿ Ensures robust approval process Ÿ Reduce work order rework Ÿ Automatically flows requirements to work execution

Support Regulatory Requirements Provide Complete, Auditable Electronic History • Capture requirements and manage work order execution • Automatically create audit trail and electronic history • Provide support for safety, government and regulatory compliance

Oracle Enterprise Asset Management Enables You To… Œ Optimize Asset Utilization Dynamically Adjust Maintenance Plans Maximize Work Safety and Ensure Compliance Integrate Asset Management Throughout Your Enterprise

Asset Management Business Flow Support Key Maintenance Activities Work Requests Entry Material Request Work Scheduling Work Order Generation Resource Planning Work Order Update and Close Out Task Planning Forecasting Asset Performance

Integrated with Entire Enterprise Common Data Model Provides Single Source of Truth Procurement Manufacturing Common Data Model Human Resources Projects Inventory Work Requests Entry Material Request Work Scheduling Work Order Generation Resource Planning Work Order Update and Close Out Task Planning Forecasting Asset Performance Financials Fixed Assets Property Management

Out-of-the-Box Integration Key Benefits ü Eliminates redundant systems ü Eliminates disparate systems ü Reduces synchronization issues ü Provides material and resource planning from demand to procure ü Reduces implementation time and costs ü Reduces maintenance and upgrade costs

Integrated Throughout Entire Offering… Business Intelligence

Deliver Daily Business Intelligence Real-Time Access to Complete Business Information What is my work order completion percentage? Are work order How can resource backlog and asset downtime improving? utilization be improved? Where are the largest cost What is my request – Manage By… – – variances and what is their trend? to resolution cycle time? Objective: Set institutional targets Fact: Provide performance-based metrics Exception: Continuously evaluate performance

Asset Management Intelligence*: Timely, Accurate, Relevant Flexible Time Periods Flexible Comparisons Real-Time Results Links • Daily updates on key performance indicators • Actionable information on savings and incremental revenue opportunities Performance Measures Reports Graphs • At a glance: - Work order status (open and past due) Asset downtime Actual costs *Coming in 11 i. 10

Oracle Enterprise Asset Management Preventive maintenance forecasting and scheduling, synchronized with production schedules Optimize Asset Utilization Predictive maintenance based on usage, inspection readings & quality Dynamically Adjust Maintenance Plans Integrated skills repository, online work documents, workflow-driven approvals Common data model, out-of-the-box integration Maximize Work Safety and Ensure Compliance Integrate Asset Management Throughout Your Enterprise

Oracle Asset Management Products Enterprise Asset Mgmt • Maintenance Planning • Maintenance Execution Property Manager Fixed Assets Asset Mgmt Intelligence Maintain Finance HR Service Fulfill Make Projects All Product, Customer, & Supplier Information Procure Develop Market Plan Order Sell

Evolution of Oracle Enterprise Asset Management Current Differentiators… …New with 11 i. 9… …Coming in 11 i. 10 • Predictive, preventive, routine, • Asset activity workbench • Seasonal / production • Ability to view associated work and corrective maintenance • Maintenance forecasting and planning • Flexible asset definition • Asset data and history • Meter-based asset monitoring • Component mgmt & tracking • Asset costing & work history • Dynamic plan adjustment • Complete work management – forecasting, planning, scheduling, execution, and completion • Built-in quality & safety mgmt • Comprehensive request mgmt • Self-service maintenance • Out-of-the-box ERP integration • Workflow-driven automation preventive maintenance plans • Preventive maintenance for rebuildables and spares • Enhanced support for rebuild hierarchy and configurations • Streamlined requisition for maintenance materials / MRO items to work order • Service request support • Work order billing and cost distribution • Integration of production & maintenance planning • Time entry integration • Enhanced cost estimation and cost drill down capabilities • Self-service work requests orders in Service UIs • Work order relationships • i. Supplier Portal to address outsourcing & 3 rd party logistics • Direct (one-off ) items on maintenance activity BOM and work order requirements • Usability enhancements for work execution: New HTML UIs • Maintenance engr workbench • Ability to drill down to property management application • Work flow driven work request: flexible work order association • Complete i. Setup support for easy migration and configuration of e. AM system • Integrated Maintenance Intelligence "The following is intended to outline our general product direction and is intended for information purposes only. The development, release and timing of any features or functionality remains at the sole discretion of Oracle. This presentation is not a commitment to deliver any material, code or functionality. "

Support Global Operations Think Globally, Act Locally Ÿ 30 Languages Ÿ Multiple Currencies Ÿ Customers in 100+ Countries Ÿ All Languages Installable in Same Unicode Instance Ÿ Support for Statutory and Customary Local Requirements

Modular Architecture Implement Based on Your Business Priorities Time Ÿ Implement by Business Flow – Start with one flow, demonstrate initial success – Add more flows to expand business coverage – Support changing business needs Ÿ Flows are Seamlessly Integrated – – – Replace disparate systems Eliminate data synchronization Decrease time and cost to implement

Lower Total Cost of Ownership Run on a Single Global Instance E-Business Outsourcing Roles: Needs: App Admin DB/AS Admin Consolidate Data Centers and Databases Low Cost Linux Hardware Ÿ 3 x faster, 5 x cheaper ŸEasy to Automate en Mass ŸHighly Reliable Oracle’s Experience with Linux Production midtiers 100% Linux Production DB RAC Cluster (Unix) Demo environments 100% Linux Development 25% Linux Outsourced Customers 40% Linux Sys Admin HW Admin You Manage: Availability Security Performance Change Problems Oracle Manages: 50% Lower Cost 50% Better Svc Core Competence Predictable Cost Rapid Setup and Implementation • Question Based, Configurator Driven Setup Wizard • Migration Tools • Rapid, Flow-Based Implementations

Customer Success

A Few e. AM Customers…

Ÿ $1 B+ US distributor of pure natural gas based in Texas – 1. 7 M gas utility customers served by 6 divisions in 12 states Ÿ Live on 11 i -- single global instance – – – Enterprise Asset Management, Financials, Purchasing, Project Costing / Billing, Human Resources Key requirement is Integration of e. AM to E-Business Suite DOT reporting requirements for inspections, leaks, repairs and maintenance “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 ü Enabled easy tracking of employee training and certifications ü Aids in compliance to government reporting requirements ü Reduced human resources DRAFT staff

Ÿ $23 B world’s leading producer of aluminum – – Discrete/process manufacturing, mining and utility operations 350 manufacturing plants and 127 K employees in 39 countries Ÿ Live on 11 i at 57 sites – Enterprise Asset Management, Discrete & Process Manufacturing, Order Management, Configurator, i. Procurement, Supply Chain Planning, Financials, HR, Project Costing Ÿ Design partner for Enterprise Asset Management 1. 2. 3. Provided maintenance best practice expertise Extend beyond traditional CMMS Integration / common architecture ü Track and coordinate all asset requirements in a single location ü Established infrastructure to absorb acquisitions rapidly

Ÿ Facilities management for Oracle sites – 5. 5 Million Sq. Ft. in the U. S. Ÿ Live on 11 i with Enterprise Asset Management – – Integrated with i. Procurement/ Purchasing, Property Manager, Fixed Assets, Projects, HR Time and Labor, GL Providing intuitive, browser based self-service maintenance requests to U. S. employees Processing over 10, 000 requests per month in the U. S. alone Planned rollout internationally ü Projected productivity gain of $25 million annually ü Increased safety and compliance

Summary

Oracle Enterprise Asset Management Efficient Work Management Predictive Maintenance and Scheduling Compliance Reporting and Tracking Integrated Enterprise Application

Know More. Do More. Spend Less.