Introduction to Oracle eAM (Enterprise Asset Management) and our implementation experiences

1. Introduction to Oracle eAM (Enterprise Asset Management) and our implementation experiences Jeremy CarsonApplications Manager

2. 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

3. What do you have ? ?

4. Agenda • Solid Energy Overview • Key Configuration Steps • Asset Model • Maintenance Tasks • Work Management • Preventative Maintenance • Cost Management • Key experiences • Questions ?

5. Solid Energy Overview

6. 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

7. Solid Energy Overview - People • Approx 1200 employees nationwide, predominately in the Waikato, South Island West Coast and Southland • Approx 600 directly employed contractors

8. 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

9. Solid Energy Assets - Trucks

10. Solid Energy Assets - Excavators

11. Solid Energy Assets – Conveyors

12. Solid Energy Assets – Underground Miners

13. Solid Energy Assets – Water Treatment Plants

14. Solid Energy Assets – Train Loadouts

15. 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

16. Key Configuration Steps

17. 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

18. 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

19. Asset Model

20. 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

21. Asset Model - Asset Number screen

22. Asset Model - Asset Number screen

23. 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

24. Asset Model - Asset Groups screen

25. 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

26. Asset Model - Asset Hierarchy screen

27. Asset Model - Summary

28. Maintenance Tasks

29. 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

30. Maintenance Tasks – Activity Association screen

31. Work Management

32. Work Management – Work Requests • Simple interface to capture reactive Maintenance work • Can go through approval process, then be assigned to Work Orders

33. Work Management – Work Requests

34. 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

35. Work Management – Work Orders screen

36. Work Management – Work Orders screen

37. 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

38. Work Management –Completion screen

39. Preventative Maintenance

40. 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

41. Preventative Maintenance – Schedules screen

42. 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

43. Preventative Maintenance – Meters screen

44. 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

45. Preventative Maintenance - Forecasting

46. Preventative Maintenance - Summary

47. Cost Management

48. 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

49. 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

50. Cost Management – Work Order costs