asset intensive industries an oracle e-business suite ... · pdf filesystem reliability, ......

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. |

Arunkumar Kaliappan Senior Principal Product Manager EBS Product Management

Asset Intensive Industries – An Oracle E-Business Suite approach for efficient Asset Lifecycle Management


Asset Intensive Industries – An Oracle E-Business Suite approach for efficient Asset Lifecycle Management

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | 3

Agenda 1

2

3

Asset Intensive Industries – Business Focus

Oracle Asset Lifecycle Management Solution

Enterprise Asset Management

Install Base

Oracle Asset Tracking

Q & A

4

5

6


Asset Intensive Industries – Business Focus


Asset Intensive Industry An industry which requires above-average levels of capital in order to operate

Utility

Power Generation/Distribution

Mining and Natural Resources

Real Estate & Facilities Public Infrastructure

Oracle Confidential – Restricted

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | 6 6

What’s really going on?

Confronting Maintenance Challenges

Pressure to Reduce Maintenance Costs

Technology is Driving Fundamental Changes for Maintenance Professionals

Increased Focus on Risk, Safety and Sustainability

“Asset performance has become an increasingly

important aspect of manufacturing profitability.”*

Dan Miklovic, LNS Research, 2014

“World-class manufacturers understand that IoT changes

the game going forward.”

Dan Miklovic, LNS Research 2014

Lifecycle cost reduction and identifying and managing risk

are the largest expected benefits from asset management.

Asset Management Practices Investments and

Challenges, 2014-2019, Reliabilityweb.com

Source: KPMG Global Manufacturing Outlook 2014

http://blog.lnsresearch.com/blog/bid/199735/Applying-Maturity-Models-to-Asset-Performance-Management





Familiar challenges, more pressure to overcome

Critical Maintenance Imperatives

“In the maintenance fields, the problem of the aging

workforce is compounded by a low number of young people

choosing these relatively uncool professions.”2

“Risk management is inextricably linked to asset

lifecycle management, manufacturing operations, environmental, health and

safety performance and sustainability.”3

“Next-gen EH&S management includes increased integration with other software systems

such as ERP to better streamline it and further incorporate it into overall

sustainability management.”4

68% cite asset lifecycle cost reduction as the top reason

for implementing an EAM strategy.1

Costs and Productivity Technology and the Aging Workforce

Risk Management and Safety Sustainability

How can we lower the cost of maintaining an asset to extend its life?

How can we manage our energy consumption better in our facilities?

How can we leverage new technologies available to be more efficient

and responsive?

How can we ensure consistency with our plant and equipment processes

across various functions and facilities?

Sources: 1Asset Management Practices, Investments and Challenges, 2014-2019, Reliabilityweb.com ; 2 Reliabilityweb.com; 3 LNS Research Blog; 4LNS Research Blog,

“ “ “ “

http://reliabilityweb.com/index.php/articles/asset_management_practices_investments_and_challenges_2014-2019/



http://reliabilityweb.com/index.php/articles/modern_it_tools_for_asset_management_vitalizing_an_aging_workforce/

http://blog.lnsresearch.com/blog/bid/199346/Predictive-Maintenance-as-a-Sustainability-Opportunity

http://blog.lnsresearch.com/blog/bid/200437/What-Is-Environment-Health-and-Safety-EHS-Management


Modern Maintenance

Control Costs and Improve Productivity

Knowledge Capture and Insight

Manage Risk and Ensure Safety

Promote Sustainability

An enterprise approach to asset management can result in increased system reliability, extension of the

life of current assets and lower service costs

Provide visibility and control over critical assets that affect risk, compliance and business performance

Reduce energy use and enhance environmental sustainability by more effectively managing real estate assets

Powerful new technological capabilities give workers new visibility and insight to capture and optimize maintenance operations and processes

4

1 2

3

Value Chain


Oracle Asset Lifecycle Management


Oracle ALM Solution

• Oracle Enterprise Asset Management – EAM Endeca

– Self-Service Work Requests

• Oracle Install Base – Install Base Endeca

• Oracle Asset Tracking

Manage Asset Lifecycle Efficiently


Leverages Existing Setup across Oracle E-Business Suite

Enterprise Asset Management (eAM)

Capitalized Depreciation

Maintainable Assets

Posting Integration

Chart of Accounts

Plans & Work Orders

Costs & Tasks

Availability, Costs

BOM’s & Routings

Material Req’s & POs

Service Requests & Customer Information

Operation Completion

Employees & Skills

eAM

Procurement Manufacturing Projects Inventory Service Suppliers

Human Resources

Accounts Payable

Fixed Assets

Property Management

General Ledger

Much more cost effective than implementing a 3rd party product

Perform Maintenance in a Distributed, Mobile,

Global Environment

Place Systems in the Hands of Maintenance

Technicians

11


• User Experience Innovation

• Functional Innovation

• Operational Efficiency

Oracle E-Business Suite

Asset Lifecycle Management

Investment Priorities

12


User Experience Innovation

EBS Extensions for Oracle Endeca

UX

Strategy

Smartphone Apps

Tablet Optimization Simplified User

Interfaces


Oracle E-Business Suite Extensions for Oracle Endeca

14


EBS APPLICATIONS EBS ENDECA

$

PO

WO

SO

$ PO

EBS DATABASE

Oracle E-Business Suite Endeca Server Handling More Data Much Faster

15


E-Business Suite Security

E-BUSINESS SUITE EXTENSIONS FOR ENDECA

Security

Navigation

Out-of-the-box Security and UI Integration

16


Information- Driven

Business PRIORITIZE

RESOLVE MEASURE

IDENTIFY

REQUIREMENTS Transforming Business To …


eAM Home Page

18


Information Driven Navigation


Familiar Consumer Search Experience


A Conversation with Your Data Each Answer Informs the Next Question You Ask


View Transactions Details


Smartphone Applications

24


Oracle Mobile Maintenance for Oracle E-Business Suite

Maintenance for EBS Oracle America, Inc.

• Technicians can view and execute maintenance work on the go

• iOS and Android

• EBS 12.1.3 and 12.2.3 and above

• No additional costs for users of existing base licensed product: Oracle Enterprise Asset Management

Oracle Confidential – Internal/Restricted/Highly Restricted 25

For app availability, check MOS Doc 1641772.1

or search ‘Oracle America EBS’ on app store.

https://support.oracle.com/epmos/faces/DocumentDisplay?id=1641772.1


Mobile Maintenance

• View and complete assigned work, including issuing material and charging time

• View and search work orders and assets

• Complete operations and work orders

• View asset summary including work history, failures, meter readings, and location

• Record asset meter readings

• Create simple work orders and work requests

View and Execute Work on the Go

26


Springboard

27

Click Springboard icon to choose different flow

Click on work order or asset option

Springboard icon opens springboard for user to navigate to other page

flows.

Current user name displayed at top of the

springboard page.


Operations and Materials

28

Easily view operations assigned and take action

View details, charge time and complete operation

View material requirements

Issue allocated materials


Work Order Details and Actions

29

View over due work for your department

View work order details and complete work

Quickly fill out work completion details

Add failure details and meter readings

View list of work based on status,

name, description or asset number


Asset Details and Actions

30

View asset details and work history

Quickly take actions on assets

Create simple work orders Record meter readings


Work Order and Assets Search

31

Use predefined criteria to find work orders

View search results

Find assets by using barcode

Search work orders based on key words or by scanning asset

number

Search assets based on key words or by

scanning asset number


Barcode Scanner for Asset and Work search

32 Oracle Confidential – Internal/Restricted/Highly Restricted

• Scan assets for search – In work order search page to view work orders for that asset

– Asset search page to view details of assets


Tablet Optimization

33


Oracle E-Business Suite on iPad OA Framework Certified on iOS Safari Browser

• All OA Framework Applications are certified with Apple iPad

– Enterprise Asset Management

– HR Self-Service

– Projects time entry

– iProcurement

– Order Information Portal

– Etc...

• All EBS Extensions for Oracle Endeca on iPad

Key Benefits

34


New in 12.2.4

Touch Friendly New Home Page with Icon Favorites Product Specific Icons


Simplified User Interface

36


Solution Overview

eAM OAF Enhancements

• Support for Generate PM Work Orders

– Directly from Work Order Page

– New: xml Template Output Report

• Support for Material Issue Pick List Report

– Reports Tab

• Support for Other Reports

– 12 Additional Reports Included

More Consistent User Experience


• User Experience Innovation

• Functional Innovation

• Operational Efficiency

Oracle E-Business Suite

Asset Lifecycle Management

Investment Priorities

39


Enterprise Asset Management (eAM)

41

Linear Asset Support with Improved Usability and Operational Efficiency

• What

– Linear Asset Definition and Enhanced Support for GIS systems

– Visualization of Linear Assets on Map, Work Order on Map

– Support for Dynamic Asset Routes and Flexible Costing

– Enhanced Safety Management

• Benefits

– Enhanced customer user experience

– Improved Support for Lockout Tag-out Safety permits and Work Clearances

– Flexible cost distribution for Asset Routes

– Improved Spatial Integration

NEW IN 12.2.4


Linear Asset Management

New feature in E-Business Suite release 12.2.4

Enables asset maintenance for Spatially located assets

Integral feature of Oracle EAM that enables GIS Systems Integration seamlessly

Improves visual management for maintenance by Map based actions

Oracle Confidential – Restricted


Maintenance Analytics


Enterprise Asset Management Challenges

• Integrate data from multiple sources to provide business users with a complete view of the Enterprise Asset Management processes.

• Help’s in achieving Optimal Asset Portfolio Management, balance operational and financial

efficiencies.

• Improve the efficiency of the maintenance organization

• Improve effectiveness of maintenance planning and scheduling

• Control maintenance cost variance

• Control and monitor maintenance work order backlog and maintenance e work order completions

• Increase Equipment Availability


Oracle Enterprise Asset Management Analytics

• New analytics module offering complete and enhanced visibility into enterprise-wide maintenance information.

• Summary level KPIs with drill down capabilities to identify exceptions.

• Cross-functional analysis capabilities with Supply Chain and Order Management , Procurement & Spend and Financial Analytics.

• Helps in achieving optimal asset portfolio management and balance operational efficiency.

• Improve the efficiency of the maintenance organization.

• Improve effectiveness of maintenance planning.

Insight into Enterprise Asset Maintenance


Role-Based Best Practices Provide Relevant and Actionable Insight for Everyone

Enterprise Asset Management Analytics – Key Objectives and Questions by Role

VP of

Operations

Enterprise wide visibility into Asset Utilization and Availability

• What does it cost to maintain & operate my assets?

• What is the expected life of my assets?

• What are the bottlenecks in the current maintenance process?

• How can I get timely asset information and respond more quickly to change?

Facility Maintenance

Manager

Facility wide visibility and tracking of Assets

• Which asset strategies work to my advantage to drive uptime?

• What are the preventive and unplanned maintenance costs and trends for this quarter?

• What are the asset downtimes and unavailability for the current quarter?

Fleet Maintenance

Supervisor

Monitoring and controlling Asset Maintenance

• How many backlog maintenance work orders for vehicles and equipments

• What are preventive maintenance schedules for this period?

• What is the spares Inventory details across Maintenance Organizations?

• What are the Resources being used and what is their utilization and efficiency?


Oracle Enterprise Asset Management Analytics Sample Dashboards

Prepackaged Enterprise Asset Management Analytics

Role-Based Dashboard

VP Operations

• Asset 360 degree : Asset history since inception

• Maintenance Cost : Monitor maintenance cost along with asset

performance

Fleet Maintenance Supervisor

• Spares Inventory – Track spares inventory levels and availability

• Resource Analysis – Analyze the overall efficiency of the resources

Overview Work Order Analysis Failure Analysis

Resource Analysis

Facility Maintenance Managers

• Schedule maintenance: Monitor schedule maintenance execution.

• Failure Analysis : Mean Time to Repair (MTTR), Mean Time Between Failure

(MTBF) analysis.

Workorder Summary Maintenance Cost


Sample Analysis & Metrics

EAM - Resource Availability EAM - Resource Usage EAM - Inventory Aging

•Resource Availability

•Resource Availability Value

•YAGO Resource Availability

•Chg YAGO Resource Availability

•% Chg YAGO Resource Availability

•Resource Utilization %

• .% Chg YAGO Resource Utilization

•Actual Resource Hours

•Standard Resource Cost

•Actual Equipment Hours

•Resource Efficiency

•Resource Cost variance

•YAGO Actual Resource Cost

•Chg YAGO Labor Efficiency

• .% Chg YAGO Labor Efficiency

•Available Quantity

•Available Amount

•Obsolete Inventory Quantity

•Year Ago Obsolete Inventory Value

•Days In Inventory

•Days Left Expiry

•Days Since Expired

EAM - Asset Quality EAM – Asset History

•Count of Tests

•Test Quantity

•Result Value

•Asset Cost

•Preventive Cost

•Actual Maintenance Cost

•Unplanned Maintenance Cost

•Number of Years Since Installation

•Actual Maintenance Cost – YTD

Enterprise Asset Management Analytics: Sample Metrics


Oracle Enterprise Asset Management Analytics Hierarchy of Metrics

Action

Level

Metrics

Operational

Level Metrics

Strategic Level Metrics

Downtime Incurred

Unplanned Downtime

Failure Count

%

Count of

Failure

Planned Workorders

Ratio

Backlog %

Past Due Backlog %

Routine Workorders

Emergency Workorders

Maintenance

Cost Variance%

Breakdown Cost Ratio

YAGO Failure

Count Resource Cost

Charged

Breakdown Cost

Preventive Cost

Actual Material

Cost Actual Equipment

Cost

Estimated Labor Cost

# of Reactive

Work Orders

Root Cause Analysis

Estimated Total Cost

Cycle Time

Estimated Labor Cost

YAGO Backlog

Actual Total Cost


Oracle Install Base


• Item Instance life cycle tracking application

• Enables Product life cycle management at the micro level

• Facilitates Instance Tracking across applications

Product Overview – Oracle Install Base


– Core product utilized across Oracle applications for uniquely referencing item instances at any stage of their life cycle

– Provides ‘User Interfaces’ to easily view instance ownership, location, change history etc from a single application

– Enables “Configuration” creation, management & maintenance capability

– Through entities like ‘Counters’ IB helps to track usage of product, which can be used for various purposes like Billing or Maintenance planning,etc.

Key Product Benefits


Install Base Integrations


Endeca Integration for Install Base


Endeca for Installed Base Value Proposition


Identify Installed products by geography


Improve Revenue by Up-sell and Cross-sell of products


Identify Impacted Product hierarchies for a service / repair scope


What is Oracle Asset Tracking (OAT)?

Operational view Financial view Oracle Asset Tracking

• Ownership

• Location

• Availability

• Configuration

• Cost

• Depreciation

• Tax

…Single repository provides Asset Life Cycle Tracking


What does OAT provide?

• Single asset

repository

• Asset Visibility –

Cradle to Grave

• View asset

configurations

• Automatic asset creation

• Synchronized moves and

updates

• Updates to asset

configuration and costs

• Complete history of

assets

• Unlimited versioning

• All changes to assets

captured

• Integration to EBS

modules – FA, AP,

Purchasing, Inventory,

Projects, Service, OM,

Customers, Locations and

Suppliers

System Integration Transaction Auditing

Visibility Automation


Oracle Asset Tracking Integration Points

•Transfers

•Move Orders

•Issue to Project

•Misc. Issues/Receipts

•Physical Inventory/CC

Inventory

•Manage Costs

•Interface to Assets

Projects

•Depreciate /Normal Assets

Assets

•Install

•In-Service

•Out-of-Service

•Item Move

•Retire

Deployment Purchasing

•PO Receiving

•Create Installed Base Instances

•Posts Project Expenditures


•Create Assets

•Update Asset Location

•Process Retirements

•Adjust Asset Cost

•Track Location

•Manage Usage

Payables

• Invoice Price

Variances

Service

• Service

Requests

Contracts

•Warranties


Global Asset

Repository

Project

Management

Advanced

Collaboration Tools

Asset

Maintenance

Financial

Management Asset Intelligence

Asset Portfolio Mgmt

Plan Build /

Acquire

Operate /

Maintain

Retire /

Dispose Commission

1. Acquire Assets – Depreciable Items flow

2. Manual assignment of Fixed asset

3. EAM Construction Units feature

Asset Lifecycle Management – Acquire/Build phase


Acquire phase- Capitalize on Receipt flow

• Item setup requires ‘Create Asset’ flag to be checked

• ‘Capitalize on receipt’ or ‘Depreciable’ items flow allows capitalization at purchase receipt date at purchase cost

• IPV costs can be posted later to adjust the fixed asset book value


Acquire phase- Manual Asset Association

• Fixed asset and Physical asset can be defined independently and linked together manually.

• Enabling the Synchronized flag instructs OAT to keep Fixed location and units synchronized with Asset moves.


Acquire phase- Notification to Asset Administrator

• Generate Notifications concurrent program creates a notification when Fixed Assets are created without linking them to a Physical asset.


Build phase- Construction units feature

• Construction Units feature lets you manage work packages and post capitalization entries to create new fixed assets that were built.


Global Asset

Repository

Asset Lifecycle Management – Commission phase

Project

Management

Advanced

Collaboration Tools

Asset

Maintenance

Financial



Plan Build /

Acquire

Operate /

Maintain

Retire /

Dispose Commission

1. Normal Items flow – Capitalize on Field issue

2. Deployment Transactions


Commission phase- Capitalize on Issue flow

• Item setup requires ‘Create Asset’ flag to be unchecked

• ‘Capitalize on issue’ or ‘Normal’ items flow allows capitalization at issue transaction date at inventory valuation cost. IPV cost adjustments cannot be posted.

• Once capitalized, subsequent receipt back to inventory or issue transactions are synchronized to FA.


Commission phase- Capitalize CIP Assets

• Normal Items can be received into Projects or issued to projects to create expenditures which can be grouped using CRL Projects functionality to create fixed assets.

• Assets are eligible for capitalization when ‘Put in Service’ deployment transaction is performed.

PO Receipt

to Projects

Put in

Service

Interface In-

service txn

Create Asset

Headers

Generate

Lines

Create Fixed

Asset

Issue to

Projects


Commission phase- Deployment transactions

• Deployment transactions Install and Put in Service can be used to install assets.

• Put In Service deployment is mandatory when using CIP Asset capitalization flow using projects.

• Operational Status is changed when such transactions are performed.


Global Asset

Repository

Asset Lifecycle Management – Maintenance phase

Project

Management

Advanced

Collaboration Tools

Asset

Maintenance

Financial



Plan Build /

Acquire

Operate /

Maintain

Retire /

Dispose Commission

1. EAM Work Order Management

2. Asset Move Portal in EAM

3. Interface Move transactions program


Operate/Maintain phase - Work order Capitalization

• Maintenance expenses which increase the useful life of an asset can be capitalized using this feature. Fixed Asset association to Asset Number mandatory to initiate capitalization.

• EAM posts these capitalization entries as cost adjustment entries which increase the book value of the associated fixed asset.


Operate/Maintain phase – EAM Asset Move Portal

• EAM Asset Move Portal allows movement of assets using back ground inventory transactions : Inter-Org transfer and sub inventory transfer

• Movement across sub inventory/ organization updates location in OAT to the corresponding HR location.

Entire hierarchy can be moved


Operate/Maintain phase – Interface Move txn program

• Interface move transaction processes all location move transactions and updates Fixed Asset register to location changes and unit updates.

• Interface move transaction program updates the transaction history status in OAT from PENDING to COMPLETE.


Global Asset

Repository

Asset Lifecycle Management – Retirement phase

Project

Management

Advanced

Collaboration Tools

Asset

Maintenance

Financial



Plan Build /

Acquire

Operate /

Maintain

Retire /

Dispose Commission

1. Retire Deployment transaction

2. Interface Move transactions program

3. De-activate/Expire Assets.


Retire phase – Retire transaction

• Retirement can be initiated in OAT using this deployment transaction.


Retire phase - Retire transaction

• Facility to capture Cost of Removal and Proceeds of Sale costs and option to retire only operational asset or financial asset or both.

• The interface move transactions program processes retirement transactions and post entries into mass retirements interface table of Fixed Assets.


Industries & Customers


Key Industries • Communications

• Installation and commissioning of communication towers, base stations and

components • Physical Inventory Count, Location Tracking • Fixed Asset Synchronization with Operational updates from field • Need Comprehensive view of both physical and logical network assets • Reconciliation of physical asset and financial records Example : Telecom, Internet Service Providers, Media Organizations


Key Industries • Public Sector

• Intense network build out ITIL (IT Infrastructure Library) compliance: Oracle Asset

Tracking is the Configuration Management Database • Procurement and Commissioning of large infrastructure assets for public utility • Tracking asset operational statuses and Fixed Asset Book upkeep

•

Example : Banks, Pubilc Corporations, Government Agencies


Key Industries • Financial Services & High Tech Manufacturing

• Manufacture and support large network of configuration assets • Ensuring ITIL and SOX compliance • Audit Requirements • Large networks

Example : Manufacturer/Service provider of IT Servers and Data Centre's

• Other Industries • Any large company that owns and operates a large IT environment are asset intensive i.e.

retail, construction, state and local governments.


OAT Customers

http://www.shaw.ca/en-ca/


EAM - OAT Integration


<Insert Picture Here>

EAM & OAT - Integration

• Shared data model :

OAT Instance = EAM Asset = Physical Asset

• OAT provides eAM customers with tighter integration and greater visibility of Fixed Asset.

• Using OAT and EAM together provides robust support for business processes related to each lifecycle stage of an Asset.


Foundation: Global Asset Repository

Achieve a Single Source of Truth About Your Assets

Global

Asset

Repository

• Capital budget • Book value • Cost history • Leases • Ownership • Tag number

Finance

Data

• Downtime / repair history

• Failure & reliability analysis

• Maintenance schedule

• Asset configuration

• Safety complaince

Maintenance

Data

• Physical Location

• Quantity

• Ownership

• Transactions

Operations

Data

“OAT”

“EAM”

“Fixed Assets”


Key Asset Management Challenges • How efficiently do we use and manage our assets?

• Do we have a comprehensive view and accounting of all of our assets worldwide?

• Can a physical asset be mapped to Fixed Assets?

• Do we know exactly where our asset lies?

• How do we track assets as they move from one location to another?


Why Oracle ALM • Automatically synchronize physical and financial data

• Automate asset creation process

• Track infrastructure elements throughout their entire lifecycle

• View data in real time

• Minimize data entry with integration

Cradle to grave history of all operational asset Goal


Q U E S T I O N S A N S W E R S

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