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Enterprise Asset Management NEK
Željko Reljić
Project Manager, NEK

Frane Kolanović                        Davor Runjak
Senior Consultant, Oracle Consulting   Consulting Manager, Oracle Consulting
Nuklearna Elektrarna Krško (NEK)
Implementation of Oracle EBS and EAM system –
BASIC COMPANY and PROJECT DATA
●Company: Nuklearna Elektrarna Krško
●Industry: nuclear generation of electrical energy
●Number of employees: >600
●Project: Implementation of Oracle EBS and EAM system
●Project start date: 2.7.2009
●Project GoLive planned date: 1.3.2011
●Implementation method: Application Implementation Method
 (AIM), Conference Room Pilots (CRP) used
●Current project phase: Build
●Project team: NEK, Oracle Consulting, Osir, OptimIT...




                                                            2
Performance unit capability factor from year 2000-2008




                                             Wano Atlanta center
                                                 members

                                                KRSKO NPP
                                                  (NEK)
eAM will support NEK’s ERP strategy – how will it do this and what benefits
                         are you likely to see?
 ● NEK Project goals:
 ● New process considers NEK good practice and industry good practices (WANO, IAEA, INPO,
   EPRI)
 ● Long term IT solution to support continuous plant effort to improve plant safety and reliability
   as well as cost effectiveness of plant operation by having proper management tool
 ● To assure NEK personnel and subcontractor knowledge necessary for long term local
   support.
 ● To bring NPP specifics requirements in the future as standard
 ● New acquisition important for NEK: Primavera
 ● NEK Project goals: requirements for maintenance management SW
   – Reactor safety, industrial safety, plant reliability and quality of work.
   – User-friendly environment for planners, maintenance and operation.
   – Human resources optimization.
   – Follow-up functionality (work order statuses, users, time and dates).
   – Equipment history of work performed, condition found, material used, measuring and testing
     equipment, procedures, human resources, failure analyses.
   – New process considers NEK good practice and industry good practices (WANO, IAEA,
     INPO, EPRI).
   – Legislation consideration.
   – Work order and its permits – fully computer (e-documented) process (no written signings)
     and e-archiving
   – Surveillance and repetitive tests should be performed by use of work order process.
   – Preventive and repetitive activities should generate work orders and estimates future costs,
     human resources and material requirements.
Why is it important for NEK to have an enterprise software strategy in
                                  place?

●Reasons for EBS implementation
 – Existing applications upgrades & maintenance-Lack of professional IT-resources (even for
   maintaining existing scope of Management Information System)
 – New HW & SW technology
 – New NEK processes (management & e-bussines). Number of additional requirements for new IT
   solution.
 – New business related legislations (EU)
 – International Accounting Standard


●NEK expectation (enterprise software strategy) is Long term IT solution
 – Long term IT solution for the NEK, open and adaptable to the new requirements.

 – Long term IT solution for the NEK, which can support continuous plant effort to improve plant
   safety and reliability as well as cost effectiveness of plant operation by having proper
   management tool .

 – To assure NEK personnel and subcontractor knowledge of the product necessary for long term
   support.
What are you hoping to see from becoming a member of Oracle Enterprise
          Asset Management (eAM) Customer Advisory Board?

● Feb. 2009-ORACLE PROPOSAL- “We hope NEK will join Oracle
 in constructing a next generation vision of technology application in nuclear utilities.”
● May 2009-MEMORANDUM OF UNDERSTANDING
 – Weekly Call with EAM Product Strategy group Oracle
 – initiation Nuclear Power Generation Special Interest Group (NPG SIG) - www.NPGSIG.org
   (Presented and accepted was a list of requirements which will be presented to eAM CAB (Customer Advisory
   Board)
 – NEK continuing participation in Health and Safety Feature Design (permits, isolations, locks and tags)
 – NEK participation in eAM Customer Advisory Board
   » Enhancement Priorities (a list of requirements )-voting
   » NEK Goal:To bring NPP specifics requirements in the future as standard solution
● NEK perspective on partnership with ORACLE
 – To implement IT solution around which we can to gather other NPPs
 – It is NEK interest to supporting Oracle in gathering other users from industry. By this the NPG SIG would
   become more influent on development path of standard EBS(eAM) solution. We are sure, that many practices
   from nuclear industry would be helpful to other industries.
 – It is NPG SIG interest to follow-up nuclear industry requirements in the future (like WANO, INPO, IAEA, EPRI,
   ..).
 – Oracle Nuclear Interest Group can influent software development in direction to improve nuclear safety,
   industrial safety, and reliability of the utilities that use Oracle products.
 – Oracle asked NEK to become member of Fusion Asset Strategy Forum
NPGSIG members statistic



»More than 300 members
»More than 100 members from nuclear power plants (most of them
 from the US)
»More than 100 members from companies which are strong connected
 to nuclear power generation industry (Westinghouse, Areva, GE
 energy, AMEC, …)
»More than 1000 visitors of www.nogsig.org web page from 64
 countries all around the world
Nuklearna Elektrarna Krško (NEK)
Implementation of Oracle EBS and EAM system –
SCOPE 1/2
• Enterprise Asset Management (EAM)   • Projects
  • Asset Management                    • Project Costing
  • Maintenance Budgeting               • Project Portfolio Analysis
  • Work Order Requests                 • Project Management
  • Work Order/Work Management
  • EAM Cost Management               • Procurement
                                        • Purchasing
• EAM supporting modules                • Sourcing
  • Bills of Material                   • Services Procurement
  • Cost Management                     • Procurement Contracts
  • Quality                             • iProcurement
  • Work in Process

                                                                       ...

                                                                             8
Nuklearna Elektrarna Krško (NEK)
Implementation of Oracle EBS and EAM system –
SCOPE 2/2
• Inventory Management   • HRMS
  • Inventory
                         • Approval Management Engine (AME)
• Financials
  • General Ledger       • Business Intelligence Application Analytics
  • Payables               • Financial Analytics
  • Receivables            • Procurement and Spending Analytics
  • Cash Management        • Project Analytics
  • Assets




                                                                         9
Asset Lifecycle Concept

                             Fixed           Hyperion
                             Assets                                 GL
                AP
                                                                                Planning &
                                           Business
       AR                                  Modeling
                                                                                Budgeting
                             Dispose                          Capital
                                                               Plan                      Agile (PDM)
                Decommission
 Supplier
 Portals                                                                 Budget
                                                                                              Projects
             Manage
                         Asset Lifecycle Management
 Time &                                                                    Design/
 Labor                                                                                    Primavera
                                                                           Specify
                  Maintain
                                                              Construct/              Procurement
  Maintenance                                                  Procure
                               Operate
                                                  Install
                                                                                     Siebel
            AutoVue                                                                  (CRM)
                        OBIEE          Stellant             Inventory
                                        (ECM)


                                                                                                         10
Integration Summary (60+ in R12)
Multiple Maintenance Strategies
Condition
 Based




               Condition     System Identification   Workflow-Driven
               Monitoring    of Limit Violations     System Action



               Planned
               Usage
                             Maintenance
  Preventive




                             Schedules
               Actual
               Usage
                                                     Maintenance
                                                     Forecast
               Estimated
               Life
  Reactive




               Maintenance   Unplanned Maint         Operator Initiated
               Request       Scheduling              WO Req / Approval




                                                                   12
Asset Intensive Industries Maintenance
         Common Practice                                                                 Best Practice
60%                                                                       60%

50%                                                                       50%

40%                                                                       40%

30%                                                                       30%

20%                                                                       20%

10%                                                                       10%

0%                                                                         0%
      Reactive    Preventive    Condition                                         Reactive      Preventive     Condition
                                 Based                                                                          Based
                                            Source: PWC Best Practices for Asset Intensive Industries




       Sensors         Process Control               OPC Server                 Oracle Sensor           Oracle eAM
E
X                          System                (or other standard)             Edge Server            Application
A                Pressure
M
P
L                    Temp
E
                 Collect Data                           Translate                   Analyze                  Respond
                                                                                                                           13
NEK - High Level Solution Architecture
NEK - Maintenance Generation Process
    EPRI Industry
     OE asset
    management


    Manufacturers
   recommendation
         s


     Maintenance
   history analysis
                                                            PM
                                                  Preventive Maintenance
                                                        Schedules
   Asset reliability   Asset Management
      analysis              Strategy

                                                     Modifications &
                                                   Engineering Change
    PLIM & PLEX                                          Control



                                                                            Work Management
     Regulatory
                                                  Temporary Modifications
    requirements


                                    Asset
                                  observation




                                Asset condition
                                                  Corrective Maintenance
                                  monitoring




                                    Asset
                                 performance
                                  monitoring
Asset List

             Asset Details
                     Asset
                   Hierarchy
NEK - Maintenance Execution Process
                                    Asset              Outsourced
               Rebuildables                             Services
                                  Hierarchy
                                                            Internal
                                                           Resources

   Meters                                                  Inventory
                       Asset Record                        Materials
                                                                          Budgeting      Primavera
                                                           Purchased
                                                            Materials
  PM Plan

                         Create                 Plan                       Perform       Schedule
                        Work Order            Work Order                 Forecasting    Work Orders

Work Request



  Perform
                            eAM                 Close                   Update/Report    Release
 Asset/WO
                        Intelligence          Work Order                 Work Order     Work Orders
 Analysis


   Quality                                    Capitalize
                                                                         Wireless eAM   Work Permits
   Plans                                      Work Order
Work Order
   List
                    Work Order
                    Creation and
                      Update


              Work
             Request
             Creation
Level Resources using Primavera P6




                                                        Primavera Integration;
                                                         or other scheduling
                                                                tools



eAM work orders, operations, resources and employee assignments get exported to Primavera –
  Resource Leveling in Primavera


                                                                                              19
Automatic Approval Process
Complex workflows can be developed
 using Oracle Workflow engine / AME
NEK’s Vision
In terms of nuclear safety, operational stability and business
performance, our aim is to be classified among the best
functioning nuclear power plants in the world.


                                Nuclear Regulatory Commission (NRC)
“Proper maintenance is essential to plant safety. As discussed in the regulatory analysis, there is
a clear link between effective maintenance and safety as it relates to such factors as the number
of transients and challenges to safety systems and the associated need for operability, availability,
and reliability of safety equipment. In addition, good maintenance is also important in providing
assurance that failures of other than safety-related structures, systems, and components (SSCs)
that could initiate or adversely affect a transient or accident are minimized. Minimizing challenges
to safety systems is consistent with the NRC's defense-in-depth philosophy. Maintenance is also
important to ensure that design assumptions and margins in the original design basis are
maintained and are not unacceptably degraded. Therefore, nuclear power plant maintenance is
clearly important in protecting public health and safety.”

  NRC Statement on maintenance in regard to the maintenance rule (Regulatory Guide 1.160)
Nek e am_overview_2010_1f.ppt [compatibility m
Nek e am_overview_2010_1f.ppt [compatibility m

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  • 1.
  • 2. Enterprise Asset Management NEK Željko Reljić Project Manager, NEK Frane Kolanović Davor Runjak Senior Consultant, Oracle Consulting Consulting Manager, Oracle Consulting
  • 3. Nuklearna Elektrarna Krško (NEK) Implementation of Oracle EBS and EAM system – BASIC COMPANY and PROJECT DATA ●Company: Nuklearna Elektrarna Krško ●Industry: nuclear generation of electrical energy ●Number of employees: >600 ●Project: Implementation of Oracle EBS and EAM system ●Project start date: 2.7.2009 ●Project GoLive planned date: 1.3.2011 ●Implementation method: Application Implementation Method (AIM), Conference Room Pilots (CRP) used ●Current project phase: Build ●Project team: NEK, Oracle Consulting, Osir, OptimIT... 2
  • 4. Performance unit capability factor from year 2000-2008 Wano Atlanta center members KRSKO NPP (NEK)
  • 5. eAM will support NEK’s ERP strategy – how will it do this and what benefits are you likely to see? ● NEK Project goals: ● New process considers NEK good practice and industry good practices (WANO, IAEA, INPO, EPRI) ● Long term IT solution to support continuous plant effort to improve plant safety and reliability as well as cost effectiveness of plant operation by having proper management tool ● To assure NEK personnel and subcontractor knowledge necessary for long term local support. ● To bring NPP specifics requirements in the future as standard ● New acquisition important for NEK: Primavera ● NEK Project goals: requirements for maintenance management SW – Reactor safety, industrial safety, plant reliability and quality of work. – User-friendly environment for planners, maintenance and operation. – Human resources optimization. – Follow-up functionality (work order statuses, users, time and dates). – Equipment history of work performed, condition found, material used, measuring and testing equipment, procedures, human resources, failure analyses. – New process considers NEK good practice and industry good practices (WANO, IAEA, INPO, EPRI). – Legislation consideration. – Work order and its permits – fully computer (e-documented) process (no written signings) and e-archiving – Surveillance and repetitive tests should be performed by use of work order process. – Preventive and repetitive activities should generate work orders and estimates future costs, human resources and material requirements.
  • 6. Why is it important for NEK to have an enterprise software strategy in place? ●Reasons for EBS implementation – Existing applications upgrades & maintenance-Lack of professional IT-resources (even for maintaining existing scope of Management Information System) – New HW & SW technology – New NEK processes (management & e-bussines). Number of additional requirements for new IT solution. – New business related legislations (EU) – International Accounting Standard ●NEK expectation (enterprise software strategy) is Long term IT solution – Long term IT solution for the NEK, open and adaptable to the new requirements. – Long term IT solution for the NEK, which can support continuous plant effort to improve plant safety and reliability as well as cost effectiveness of plant operation by having proper management tool . – To assure NEK personnel and subcontractor knowledge of the product necessary for long term support.
  • 7. What are you hoping to see from becoming a member of Oracle Enterprise Asset Management (eAM) Customer Advisory Board? ● Feb. 2009-ORACLE PROPOSAL- “We hope NEK will join Oracle in constructing a next generation vision of technology application in nuclear utilities.” ● May 2009-MEMORANDUM OF UNDERSTANDING – Weekly Call with EAM Product Strategy group Oracle – initiation Nuclear Power Generation Special Interest Group (NPG SIG) - www.NPGSIG.org (Presented and accepted was a list of requirements which will be presented to eAM CAB (Customer Advisory Board) – NEK continuing participation in Health and Safety Feature Design (permits, isolations, locks and tags) – NEK participation in eAM Customer Advisory Board » Enhancement Priorities (a list of requirements )-voting » NEK Goal:To bring NPP specifics requirements in the future as standard solution ● NEK perspective on partnership with ORACLE – To implement IT solution around which we can to gather other NPPs – It is NEK interest to supporting Oracle in gathering other users from industry. By this the NPG SIG would become more influent on development path of standard EBS(eAM) solution. We are sure, that many practices from nuclear industry would be helpful to other industries. – It is NPG SIG interest to follow-up nuclear industry requirements in the future (like WANO, INPO, IAEA, EPRI, ..). – Oracle Nuclear Interest Group can influent software development in direction to improve nuclear safety, industrial safety, and reliability of the utilities that use Oracle products. – Oracle asked NEK to become member of Fusion Asset Strategy Forum
  • 8. NPGSIG members statistic »More than 300 members »More than 100 members from nuclear power plants (most of them from the US) »More than 100 members from companies which are strong connected to nuclear power generation industry (Westinghouse, Areva, GE energy, AMEC, …) »More than 1000 visitors of www.nogsig.org web page from 64 countries all around the world
  • 9. Nuklearna Elektrarna Krško (NEK) Implementation of Oracle EBS and EAM system – SCOPE 1/2 • Enterprise Asset Management (EAM) • Projects • Asset Management • Project Costing • Maintenance Budgeting • Project Portfolio Analysis • Work Order Requests • Project Management • Work Order/Work Management • EAM Cost Management • Procurement • Purchasing • EAM supporting modules • Sourcing • Bills of Material • Services Procurement • Cost Management • Procurement Contracts • Quality • iProcurement • Work in Process ... 8
  • 10. Nuklearna Elektrarna Krško (NEK) Implementation of Oracle EBS and EAM system – SCOPE 2/2 • Inventory Management • HRMS • Inventory • Approval Management Engine (AME) • Financials • General Ledger • Business Intelligence Application Analytics • Payables • Financial Analytics • Receivables • Procurement and Spending Analytics • Cash Management • Project Analytics • Assets 9
  • 11. Asset Lifecycle Concept Fixed Hyperion Assets GL AP Planning & Business AR Modeling Budgeting Dispose Capital Plan Agile (PDM) Decommission Supplier Portals Budget Projects Manage Asset Lifecycle Management Time & Design/ Labor Primavera Specify Maintain Construct/ Procurement Maintenance Procure Operate Install Siebel AutoVue (CRM) OBIEE Stellant Inventory (ECM) 10
  • 13. Multiple Maintenance Strategies Condition Based Condition System Identification Workflow-Driven Monitoring of Limit Violations System Action Planned Usage Maintenance Preventive Schedules Actual Usage Maintenance Forecast Estimated Life Reactive Maintenance Unplanned Maint Operator Initiated Request Scheduling WO Req / Approval 12
  • 14. Asset Intensive Industries Maintenance Common Practice Best Practice 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% Reactive Preventive Condition Reactive Preventive Condition Based Based Source: PWC Best Practices for Asset Intensive Industries Sensors Process Control OPC Server Oracle Sensor Oracle eAM E X System (or other standard) Edge Server Application A Pressure M P L Temp E Collect Data Translate Analyze Respond 13
  • 15. NEK - High Level Solution Architecture
  • 16. NEK - Maintenance Generation Process EPRI Industry OE asset management Manufacturers recommendation s Maintenance history analysis PM Preventive Maintenance Schedules Asset reliability Asset Management analysis Strategy Modifications & Engineering Change PLIM & PLEX Control Work Management Regulatory Temporary Modifications requirements Asset observation Asset condition Corrective Maintenance monitoring Asset performance monitoring
  • 17. Asset List Asset Details Asset Hierarchy
  • 18. NEK - Maintenance Execution Process Asset Outsourced Rebuildables Services Hierarchy Internal Resources Meters Inventory Asset Record Materials Budgeting Primavera Purchased Materials PM Plan Create Plan Perform Schedule Work Order Work Order Forecasting Work Orders Work Request Perform eAM Close Update/Report Release Asset/WO Intelligence Work Order Work Order Work Orders Analysis Quality Capitalize Wireless eAM Work Permits Plans Work Order
  • 19. Work Order List Work Order Creation and Update Work Request Creation
  • 20. Level Resources using Primavera P6 Primavera Integration; or other scheduling tools eAM work orders, operations, resources and employee assignments get exported to Primavera – Resource Leveling in Primavera 19
  • 21. Automatic Approval Process Complex workflows can be developed using Oracle Workflow engine / AME
  • 22. NEK’s Vision In terms of nuclear safety, operational stability and business performance, our aim is to be classified among the best functioning nuclear power plants in the world. Nuclear Regulatory Commission (NRC) “Proper maintenance is essential to plant safety. As discussed in the regulatory analysis, there is a clear link between effective maintenance and safety as it relates to such factors as the number of transients and challenges to safety systems and the associated need for operability, availability, and reliability of safety equipment. In addition, good maintenance is also important in providing assurance that failures of other than safety-related structures, systems, and components (SSCs) that could initiate or adversely affect a transient or accident are minimized. Minimizing challenges to safety systems is consistent with the NRC's defense-in-depth philosophy. Maintenance is also important to ensure that design assumptions and margins in the original design basis are maintained and are not unacceptably degraded. Therefore, nuclear power plant maintenance is clearly important in protecting public health and safety.” NRC Statement on maintenance in regard to the maintenance rule (Regulatory Guide 1.160)