This document provides an overview and summary of Solid Energy's implementation of Oracle eAM for enterprise asset management. Some key points: - Solid Energy is a large New Zealand coal mining and energy company with over 1,200 employees and 600 contractors managing many production assets. - They implemented Oracle eAM in 2003 and have since configured it for 6 sites to manage over 15,000 work orders, 2,000 assets, and 4,000 preventative maintenance activities annually. - Critical aspects of the implementation included developing a taxonomy document, detailed solution design, asset model configuration, and extensive maintenance staff involvement to ensure adoption. - Key benefits have been a single maintenance system, better integration with stores, comprehensive asset

1. Introduction to Oracle eAM
(Enterprise Asset Management)
and our implementation experiences
Jeremy Carson
Applications 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 EBusiness 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

51. Key experiences

52. 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

53. 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

54. 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”

55. 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™

56. Key experiences – Reporting

57. 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

58. 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”

59. Questions ?
• Ask now if we have time
• Come see me afterwards
• Email me after the conference jeremy.carson@solidenergy.co.nz