ALM ppt

Effective Lifecycle Management of

Assets using Oracle EBS ALM

Amit Mondal

–Senior Manager ALM Development

Ajay Kalavala

–Manager ALM Development

Alexander Vaidhyan

–Principal Product Manager

Sachin Kedar

–Product Manager

The following is intended to outline our general

product direction. It is intended for inform

ation

purposes only, and m

ay not be incorporated into

any contract. It is not a commitment to deliver any

material, code, or functionality, and should not be

relied upon in m

aking purchasing decision. The

development, release, and timing of any features

or functionality described for Oracle’s products

remains at the sole discretion of Oracle.

Safe Harbor Statement

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Agenda

•What is Asset Lifecycle M

anagement ?

•Why ALM and Oracle ALM?

•What does Oracle ALM offer?

•Key Strengths

•Evolution of Oracle Asset Lifecycle M

anagement

•Customers

•Summary

What is Asset Lifecycle Management ?

From Concept to Retirement

Comprehensive Planning, Tracking, and Execution

for Optimal Asset Perform

ance and Value

Plan

Build /

Acquire

Operate /

Maintain/Track

Retire /

Dispose

Install

C o n c e p t

R e t i r e m e n t

Monitor Performance


Why ALM and Oracle ALM ?

Business Pressures

Global Markets & Competition

•How can manage m

y assets

and resources in a distributed

and mobile environment?

•Which financial strategies

work to m

y advantage?

Mergers & Acquisitions

•Which assets are worth keeping?

Should be improved? Should be

sold? Should be retired?

•How can I rapidly assimilate new

assets into finance & operations?

Compliance & Oversight

•How do I validate the accuracy

of my financial statements and

enforce policies & procedures?

•How can I ensure safety

and regulatory compliance?

Enterprise Integration

•How can I get timely asset

inform

ation and respond

more quickly to change?

•What is the best way to

synchronize m

aintenance,

production & financial info?

Asset Management Opportunity

Improved Productivity

40-55%

Improved Safety

20-50%

Wrench Time

20-50%

Society for Maintenance and Reliability Professionals (SMRP)

Reduced Capital

50-90%

Decrease Surplus Stock

50-90%

Reduced Unit Costs

10-40%

Unplanned Downtime

30-40%

Massive Consolidation in Software

247 Mergers Totaling $119B*

Big 3 ERP $100B

Private Equity $5B

Other $3B

*543 additional transactions

with no reported value

Middleware

Customers Want 1Point of Contact

Applications

Business

Intelligence

DB & Tools

IDC Study: Top 5 including Oracle and SAP scored 215 –223

•Common data m

odel

enables a single source of

truth

•Comprehensive suite of

applications designed to

work together

•Robust set of integration

services based on open

standards

•Modular deployment

by business flow

•Single global instance

implementations

Customers,

Suppliers,

Products,…

Customers,

Suppliers,

Products,…

Develop

Market Sell

Order

Plan

Procure

Make

Fulfill

Service

Track &

Maintain

Finance

HR

Projects

Contracts

Asset Lifecycle Management

Part of the Oracle E-Business Suite

Product Set –Asset Tracking, Enterprise Asset Management

and Business Intelligence


What does Oracle ALM offer?

Oracle Asset Lifecycle Mgmt Solution

Project

Management

Advanced

Collaboration Tools

Asset

Maintenance

Financial

Management

Contractors

Suppliers

External

•Requirements

•Specifications

•Drawings

•Schedules

•Defects

•Orders

Asset Intelligence

Asset Portfolio Mgmt

Operations

Engineering

Internal

� ��

Global

Asset

Repository

Global

Asset

Repository

Plan

Plan

Build /

Acquire

Build /

Acquire

Operate /

Maintain

Operate /

Maintain

Retire /

Dispose

Retire /

Dispose

Commission

Commission

Types of Assets

•Productive

machinery

•Equipment

•Components

•Roadways

•Pipelines

•Transmission lines

•Railw

ay lines

•Trucks

•Buses

•Automobiles

•Rolling stock

•Buildings

•Retail stores

•Universities

•Hospitals

Infrastructure

Mobile

Fixed Plant

Linear / Continuous

Key Strengths

Manages Asset from Cradle to Grave

Easy to Use

Strong Asset Management Capabilities

Integrated


Integrated

Oracle Asset Lifecycle Management

105 Integration Points

Product &

Maint WO

Transactions

Costs

Updates

WO Updates,

Catalogs

Changes to Capitalized

Asset Depreciation

Service Request

Linked to

WOR / W

O

WO Materials,

Reqs Linked to

WO & W

orkflow

Receiving

Project / Task,

WO Costs

Posting

Integration

Chart of

Accounts

WO

Billing

Depreciable

Assets

Req & PO Changes, AP-to-PO Matching/Reconciliation

Employees &

Skills

Maintainable

Assets

Time

Entry

Suppliers

Customers

T&A

HR

AP

GL

AR

FA

Property

Purchasing

Mfgr.

Projects

Inventory

Service

Asset Lifecycle

Management

Foundation: Global Asset Repository

Achieve a Single Source of Truth About Your Assets

Eliminate Cost and Complexity of Multi-Vendor Systems

Global

Asset

Repository

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

•Location

Maintenance

Data

•Occupancy

•Capacity

•Production schedule

•Regulatory and

compliance policies

Operations

Data “Operators”

“Maintainers”

“Owners”

Spare Parts Management

Plan and Manage All Types of Parts

Optimize stocking

levels and

automate

replenishment

Automatically

generate inventory

pick list and

purchase requisition

Synchronize purchasing

needs with actual

requirements

Enable accelerated

purchasing of parts

and materials

Rotables

(e.g., Diesel Engine)

Non-Stock Direct

(e.g., Actuated Valve)

Inventoried Parts

(e.g., Pipe Fitting)

Maintenance BOM

Inventory

Planning

Procurement

Maintenance

Execution

Work Order

(eAM)

Resource

Capacity (DMF)

Optimize Capacity Utilization

•Asset Downtime information flow between the Maintenance and

Manufacturing Systems is vital for higher productivity


Manages Asset from

Cradle to Grave

Asset Lifecycle: Acquire

Acquire

Install

Maintain

Retire

Track

Purchase

Assets

Purchase

Assets

COO / VP Ops

CFO / CIO

Accountant

Real Estate Mgr

Facilities Mgmt

Service Tech /

Contractor

Shift Supervisor

KPIs, Performance

Trends, Policies

Budgets, Cost Roll-Up,

Performance Trends

Balance Sheet, Cost

Roll-Up, Budgets

Availability Report,

Leases, Tenants

Asset Location, Repair

History, Tenants

Maintenance Schedule,

Configuration, Location

Production Schedule,

Maintenance Schedule

Global

Asset

Repository

Global

Asset

Repository

Acquire

Install

Maintain

Retire

Track

•Managing Erection, Start-up and Commissioning work –often

complex

•Work Order relationships

•Capitalize Installation costs

•Materials and consumables, Consultant & Erection crew

charges

•Build Asset Hierarchy –Asset and Rebuild Numbers can be

issued to a work order

•Construction Estimating feature facilitates design and schedule

of construction work. Lets you initiate FA creation and

capitalization of in-situ construction work.

•Track Install Location and date –OAT Assets

Asset Lifecycle: Install

Asset Lifecycle: Maintain

Acquire

Install

Maintain

Retire

Track

Complex Work

Definition

Timely and

Easy Work

Reporting

Efficient

Materials and

Resource

Management

Track

Maintenance

Costs

Proactive

Maintenance

Failure

Analysis and

Metrics

Strong Maintenance Management Solution

Acquire

Install

Maintain

Retire

Track

•Track the correct location and usage of the assets

for regulatory purposes-Sarbanes Oxley

•Track around 85 transactions within ERP

•Track Assets on a Map

Asset Lifecycle: Track

Retire the asset

in Asset Tracking

Interface Retire

transaction with

Fixed Assets

Acquire

Install

Maintain

Retire

Track

Manage vendor returns

and asset sales

Asset Lifecycle: Retire


Easy to Use

Self-Service Access

Provide Maintenance Workers Easy System Access

•Remote access via web browser

•Capture inform

ation at the source

•Perform

step-by-step transactions

•Require minimal system training

•Reduce time to input inform

ation

•Decrease errors in data transfer

•Reduce clerical labor

Self-Service Work Requests

Enable Immediate Problem Reporting

Reported

Problem

Asset

Originator

Rotable

Status

Change

•Optionally assign asset / serial

number

•Automatically default asset

inform

ation

•Support multiple types of assets

•Allow users to report problems for

themselves and for other users

•Accept a condition which triggers

a request

•Accept a request from 3

rdparty

system

Capital Asset

Machine/Program

Interface

Any Employee

Generate

Request

Truck 103

Asset / Serial

Number

Generate

Request

Work

Request

Express Work Execution

•Easy work reporting in system after maintenance work is done.

•‘After the fact’ reporting common practice in maintenance domain.

•Express work order –Work order creation, completion, report labor and items

•Debrief work order –Report completion, labor and items on existing work order

•All reporting data can be entered in a single UI.

Empowerment of End Users/Technicians

•Personalized interface to view and report work assigned to an employee

•Maintenance User Workbench can be used to view work assigned to an

employee, report time and m

aterial consumed.

•Key perform

ance indicators are provided to manage open work and backlog.

•Supervisor and technician modes decide functions available

•Wireless Maintenance User

Workbench available with similar

options for Mobile users

•Dis-connected mode implementation

available through 3

rdparty vendors

Asset Management Intelligence

Timely, Accurate, Relevant

•Daily updates on key

performance

indicators

•Actionable

information on

savings and

incremental revenue

opportunities

•At a glance:

-Work order status

(open and past due)

-Asset downtime

-Actual costs

Links

Links

Reports

Reports

Real

Real --Time

Time

Results

Results

Flexible

Flexible

Time Periods

Time Periods

Performance

Performance

Measures

Measures

Graphs

Graphs

Flexible

Flexible

Comparisons

Comparisons


Strong Asset Management

Capabilities

Proactive Maintenance

•Avoid failures by periodically m

aintaining assets

in good health –Preventive M

aintenance

•PM Schedule definition –Date based, Meter

based, List dates based, multiple activity PM

•Multiple Scheduling options. Base Date and Base

Meter –ensures compliance of PM schedules

irrespective of completion tardiness

•‘Generate Next WO’ manages PM W

ork order

pipeline

•Suppression rules to suppress duplicate work.

•Additional fields Reviewer and Review Date added

to facilitate Reliability Centered M

aintenance.

3000M

3000M

3000M

3000M

3000M

3000M

15000M

•Maintain Assets before an impending failure –

Predictive Maintenance/ Condition Monitoring

•Trigger Work Request or Work Order when

control lim

its are breached

•E.g. Vibration sensors, temperature, Oil quality

•Real time asset monitoring

Upper Control

Limit

Failure Limit

Auto Create Work

Request/ Order

Time (weeks)

Reliability Centered Maintenance*

•Analyze and classify failures for every breakdown and derive key

metrics

•Trouble shooting guide : Failure –

Cause –Resolution matrix

•Failure data captured at work order completion

•Enables calculation of key failure metrics such as MTBF, MTTR, MCTR at

various levels

•Enables Reliability centered m

aintenance program through COFA Analysis

Failure Analysis (RCM Capabilities)

* Reference: W

hitepaper on “Boosting Perform

ance: Reliability Centered Maintenance with Oracle eAM”–

Tom Sichko&Neil Bloom, May2007

Health and Safety Management

Comply with Strict Environmental and Regulatory Requirements

Benefits

Monitor & Audit Compliance

•Avoid fines and reduce

non-compliance risk

Assign Qualified or Certified

Technicians to Tasks

Equip Technicians to Perform

Quality Work, on Time and

Within Guidelines

•Minimize time to locate req’d docs

•Reduce incident rate

•Decrease work order errors

Work Order Execution

•Automatically create audit trail

and electronic history

Skills Selection

•Search & select by technician

certifications or competencies

SOPs and Required

Documentation

•Procedures (e.g., safety)

•Dependent task planning

•Specifications / drawings

•Special handling

Structured Definition

Strong Work Management Solution

•Easy Work Order definition

•Single Page W

ork order to enter every inform

ation on one page

•Copy existing work order to create similar work definition

•Create Activity from an existing work order to regularize standard work

•Defaulting –Simple search query, WAC defaulting, Work order description

•Trigger Work order approval

on Release

•Seeded workflow for work

order release approval

•AME to define rules and

approval hierarchy

•For e.g. you can route

Emergency and Routine work

orders through separate

approval channels

•Custom workflow for other

business events.

Scheduling Complex Work Relationships

•Define Complex work involving W

ork Breakdown Structure for Shutdown

planning

•Operation dependencies –to m

anage work on single Asset

•Work Order hierarchy –to manage work on multiple assets or area in a plant.

•Scheduling, Dependency, Follow-up relationships

Dependency

Dependency

relationship

relationship

Scheduling

Scheduling

relationship

relationship

•Perform

Work order

Scheduling using Industry

standard tools

•MS Project Integration

(2003) –export/import

work order inform

ation in

XML form

at

Integrated Materials Management (1/2)

•Restrict material issues from a

particular sub inventory

•Specify supply source sub

inventory on the work order’s

material requirement

•Specify it in Maintenance BOM

of activity and inherit into the

work order

•Material Allocations and issues

are restricted to stock available

in the supply source sub

inventory.

•Multiple options to plan and create supplies for MRO items

Need based

Demand based

Demand based

Direct item purchase

One-off Items

Material Planning

A Class Stocked items

MinMax, Re-order planning

B and C Class Stocked items

Type

Planning Method

Integrated Materials Management (2/2)

•Search Items by manufacturer part number or cross reference

•Search capability provided in work order and stores pages

•Makes it easy for the planner and technician to use the right parts, as these

numbers are generally etched in the physical item

•Procure one-off items against work order

•Support for One-off Direct Items (Description based or Non-stock Direct Items)

•Trigger automatic

requisitions based on

settings

•Map any cost element –

‘Material’ for items,

‘Labor’ for services

Flexible Resource Management

•Schedule Maintenance crew and assign work based on existing loads

•Crew Scheduling allows assignment of employees based on existingwork loads

•Easy to use and visual representation of assignments

•Report work done by entering hours on a timesheet

•EAM Timecard in OTL allows capture of work hours spent by crew m

embers on

different work orders

•Time entered in OTL is translated into Resource transactions in eAMand appropriate

costs posted to work order based on resource rates defined.

Complete Asset History -Asset Log

•Record operational and maintenance history of

assets to monitor health and performance

Maintenance Budgeting & Forecasting

•Some facts about maintenance budgets*

•They are mostly at plant level or process/equipment areas

•They are based on previous years budget

•They are adjusted to meet cost targets

Derive budget figure in the right

context

Transfer budget to MS Excel and

analyze using Budgeting tools

* Extracts from plant-maintenance.com

Construction Management

Key Strengths

Manages Asset from Cradle to Grave

Easy to Use

Strong Asset Management Capabilities

Integrated

Evolution of Oracle Asset Lifecycle Management

Evolution of Oracle Asset Lifecycle Management

New in 11i.10…

New in R12…

•Work order relationships

•iSupplier Portal to address

outsourcing & 3rd party

logistics

•Direct (one-off ) items on

maintenance activity BOM

and work order requirements

•Ability to view associated work

orders in Service UIs

•Maintenance user workbench

•Ability to drill down to property

management application

•Work flow driven work

request: flexible work order

association

•Complete iSetupsupport for

easy migration and

configuration of eAM system

•Integrated Maintenance

Intelligence

•Global consolidated asset

repository

•Enh. fixed asset integration

•Work order cost capitalization

•Maintenance budget forecast

•Multiple activity PM schedules

•Asset check in / check out with

safety and operational data

•Asset operational log

•Work order approval workflow

•User defined work order

status codes

•Warranty support

•Automated material availability

status check

•Mobile maintenance user

workbench

•Single page work order

•Failure Analysis

(projects in bold back-ported to 11i10)

Features in 12.1 (Early 2009)

•Asset Move W

orkbench

•Express W

ork Order

•Item Cross Reference Search

capability available from EAM

•Specify source supply sub-

inventory for EAM work orders

•Microsoft Projects Integration

for Work Order scheduling

•Graphical map of asset

network relationship

•Change department on work

order operation for crew

scheduling

•Copy asset number to

requisition approver notes

•Construction Unit (Shutdown

Planning)

•Assets on a Map


Customers

COMPANY OVERVIEW

•$21.5B world’s leading producer of aluminum

•Discrete / process manufacturing, mining and utility

operations

•350 manufacturing plants and

120K employees in 39 countries

CHALLENGES / OPPORTUNITIES

•Highly distributed asset environment

•Vertical integration –mining through

mixed-m

ode manufacturing

RESULTS

•Live on E-Business Suite 11iat 42 sites

•Design partner for Enterprise Asset Mgmt

-Provided maintenance best practice

expertise

-Extend beyond traditional CMMS

-Integration / common architecture

•Track and coordinate all asset

requirements in a single location

•Established infrastructure to absorb

acquisitions rapidly

ALM SOLUTION

•Enterprise Asset

Management

•Financials

•Project Costing

•iProcurement

•Order Mgmt

•SC Planning

•Configurator

•Discrete Mfg

•Process Mfg

•Human Resources

COMPANY OVERVIEW

•World's largest producer and exporter of

phosphate rock, phosphoric acid and the P205

derivative

with $2 billion phosphates exported

annually

•Operates in 5 continents with headquarters in

Morocco with around 20k employees and over

2500 million tons of phosphate production


•Increasing equipment capacity through

better predictive maintenance

•Reducing inventory

•Lowering the occurrence of highly

costly production stoppage and the

associated loss of export income

RESULTS

•Live on E-Business Suite 11i

•Seamless integration between eAM,

Financials and OPM reduced TCO

•Happy with strong maintenance

functionalities within eAM

•Replaced Maximo

ALM SOLUTION

•Enterprise Asset

Management

•Financials

•Process Manufacturing

•Purchasing

•Inventory

•Business

Intelligence

•Project Costing

COMPANY OVERVIEW

•Oil Refinery Company based in Houston, Texas

•350 manufacturing plants and 120K employees in

39 countries and over $2 billion revenue

•Makes chemicals that ultimately go into making the

world's tires, carpets, gasoline additives and many

other essential items


•Comprehensive asset management

system to manage the network

•Manage complete asset lifecycle

RESULTS

•First eAM customer Go Live -July 1, 2002

-3 Sites

•11i10 of eAM

•Track and coordinate all asset

requirements in a single location

•Established infrastructure to absorb

acquisitions rapidly

ALM SOLUTION

•Enterprise Asset

Management

•Financials

•Purchasing

•Process Mfg

•Projects

COMPANY OVERVIEW

•$1.9B world’s leading gold m

ining company

•27 operating mines across 4 continents

•124.6 million ounces of proven and probable gold

reserves,6.2 billion pounds of copper reserves

and1.03 billion ounces of contained silver within

gold reserves as at December 31, 2007.


•Low Overall Equipment Effectiveness

(OEE)

•Heterogeneous standards across

multiple sites

RESULTS

•Live on E-Business Suite 11iand R12 at

sites in North America and Australia

•Implementation in Africa and South

American sites in progress

•Customer Advisory Board Member

•Achieve Maintenance Optimization and

Standardization

•Enabled Barrick to streamline operations

after Placer Dome acquisition

ALM SOLUTION

•Enterprise Asset

Management

•Financials

•Human Resources

•Payroll

•Procurement

“We use Oracle to coordinate our

maintenance activities. We selected Oracle

based on fit for functionality, its global

scope, and ease of integration.eAMis used

as the communications tool for our

maintenance department. We communicate

what maintenance work we are going to do

through work orders and we track our

performance against those commitments.”

Doug Stretton, Global Maintenance Leader

A Few More Customers… M

agn

ito

go

rsk

Iro

n &

Ste

el W

ork

s

Asset Lifecycle Management -Summary

•Current economy presents difficulties but also

opportunities

•World W

ide Infrastructure

Investm

ents a pattern in all

financial stimulus packages

•US $800 billion package majorly

on infrastructure (US $ 180

billion)

•France € 4 billion

•Germ

any €17 billion

•China US $400 billion

Asset Lifecycle Management -Summary

•Organizations are focusing on

•Reducing cost of maintenance and operations

•Improving asset availability and decrease emergency repairs

•Increase Equipment Life and at the same time meet customer

demands

•Improve Asset Utilization and ROA

•Integrated Oracle ALM solution improves TCO and

enhances ROI

•Leverage Oracle ALM suite for complete lifecycle

management of assets –single source of truth for

organization’s assets

Q U E S T I O N S

A N S W E R S

ALM ppt

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