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Asset Intensive Industries –

An Oracle E-Business Suite approach for


efficient Asset Lifecycle Management

Arunkumar Kaliappan

Senior Principal Product Manager


EBS Product Management

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

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


Agenda
1 Asset Intensive Industries – Business Focus
2 Oracle Asset Lifecycle Management Solution
3 Enterprise Asset Management
4 Install Base
5 Oracle Asset Tracking
6 Q&A

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Asset Intensive Industries –
Business Focus

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

Utility
Mining and Natural
Power Resources
Generation/Distribution

Real Estate & Facilities Public Infrastructure

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Confronting Maintenance Challenges
What’s really going on?

Pressure to Reduce Maintenance Technology is Driving Fundamental Changes for Increased Focus on
Costs Maintenance Professionals Risk, Safety and Sustainability

“Asset performance has “World-class manufacturers Lifecycle cost reduction and


become an increasingly understand that IoT changes identifying and managing risk
important aspect of the game going forward.” are the largest expected benefits
manufacturing profitability.”* from asset management.
Dan Miklovic, LNS Research 2014
Dan Miklovic, LNS Research, 2014 Asset Management Practices Investments and
Challenges, 2014-2019, Reliabilityweb.com

Source: KPMG Global Manufacturing Outlook 2014

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Critical Maintenance Imperatives
Familiar challenges, more pressure to overcome

Costs and Productivity Technology and Risk Management and Safety Sustainability
the Aging Workforce

68% cite asset lifecycle cost “In the maintenance fields, the “Risk management is “Next-gen EH&S management
reduction as the top reason problem of the aging inextricably linked to asset includes increased integration
for implementing an workforce is compounded by a lifecycle management, with other software systems
EAM strategy.1 low number of young people manufacturing operations, such as ERP to better
choosing these relatively environmental, health and streamline it and further
uncool professions.”2 safety performance and incorporate it into overall
sustainability.”3 sustainability management.”4

“ How can we lower the cost of


maintaining an asset to extend its life?

How can we leverage new technologies
available to be more efficient

How can we ensure consistency with
our plant and equipment processes
“How can we manage our energy
consumption better in our facilities?
across various functions and
and responsive? facilities?
Sources: 1Asset Management Practices, Investments and Challenges, 2014-2019, Reliabilityweb.com ; Reliabilityweb.com; LNS Research Blog; LNS Research Blog,
2 3 4

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Modern Maintenance
Knowledge Capture
Control Costs and and Insight

Improve Productivity 1 2
An enterprise approach to asset management can result in increased Powerful new technological capabilities give workers new visibility and insight
system reliability, extension of the to capture and optimize maintenance operations and processes
life of current assets and lower
service costs

Value Chain

Manage Risk and Ensure Safety

Promote Sustainability 4 3

Reduce energy use and enhance environmental sustainability by more Provide visibility and control over critical assets that affect risk, compliance
effectively managing real estate assets and business performance

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Oracle Asset Lifecycle Management

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Oracle ALM Solution
Manage Asset Lifecycle Efficiently

• Oracle Enterprise Asset Management


– EAM Endeca
– Self-Service Work Requests
• Oracle Install Base
– Install Base Endeca
• Oracle Asset Tracking

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Enterprise Asset Management (eAM)
Leverages Existing Setup across Oracle E-Business Suite

Suppliers Procurement Manufacturing Projects Inventory Service

Operation Material Req’s Plans & Availability, Costs Service Requests &
Completion & POs Costs & BOM’s & Routings Customer Information
Work Orders
Tasks

Perform Maintenance eAM Place Systems in the


in a Distributed, Mobile, Hands of Maintenance
Global Environment Technicians
Chart of
Employees & Posting Accounts Capitalized Maintainable
Skills Integration Depreciation Assets

Human Accounts General Fixed Property


Resources Payable Ledger Assets Management

Much more cost effective than implementing a 3rd party product

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Oracle • User Experience Innovation
E-Business Suite • Functional Innovation
Asset Lifecycle • Operational Efficiency
Management
Investment
Priorities

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User Experience Innovation

EBS Extensions for


Smartphone Apps
Oracle Endeca

UX
Strategy

Simplified User
Tablet Optimization Interfaces

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Oracle E-Business Suite Extensions for Oracle
Endeca

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

W $
O
PO

SO
$
PO

EBS DATABASE EBS ENDECA EBS APPLICATIONS

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Out-of-the-box Security and UI Integration

E-Business Suite Security

Security

Navigation

E-BUSINESS SUITE EXTENSIONS FOR ENDECA

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Transforming Business To … REQUIREMENTS

RESOLVE MEASURE

Information-
Driven
Business
PRIORITIZE IDENTIFY

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eAM Home Page

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Information Driven Navigation

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Familiar Consumer Search Experience

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

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

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View Transactions Details

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Smartphone Applications

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Oracle Mobile Maintenance for Oracle E-Business Suite

Maintenance for EBS • iOS and Android


Oracle America, Inc.
• EBS 12.1.3 and 12.2.3 and above
• No additional costs for users of
• Technicians can view and execute existing base licensed product:
maintenance work on the go Oracle Enterprise Asset
Management

For app availability, check MOS Doc


1641772.1
or search ‘Oracle America EBS’ on app
store.
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Mobile Maintenance
View and Execute Work on the Go

• 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

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Springboard

Current user name


displayed at top of the
Springboard icon opens springboard page.
springboard for user to
navigate to other page
flows.

Click Springboard icon to Click on work order or


choose different flow asset option

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Operations and Materials

Easily view operations View details, charge time View material


Issue allocated materials
assigned and take action and complete operation requirements

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Work Order Details and Actions

View list of work


based on status,
name,
description or
asset number

Add failure details


and meter
readings
View over due work for View work order details Quickly fill out work
your department and complete work completion details

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Asset Details and Actions

View asset details and Quickly take actions on


Create simple work orders Record meter readings
work history assets

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Work Order and Assets Search

Search work
orders based on Search assets
key words or by based on key
scanning asset words or by
number scanning asset
number

Use predefined criteria to Find assets by using


View search results
find work orders barcode

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Barcode Scanner for Asset and Work search

• Scan assets for search


– In work order search page to view work orders for that asset
– Asset search page to view details of assets

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32 32 Restric
Tablet Optimization

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

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Touch Friendly New Home Page with Icon Favorites Product Specific Icons

New in 12.2.4

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Simplified User Interface

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eAM OAF Enhancements
More Consistent User Experience

Solution Overview
• 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

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Oracle • User Experience Innovation
E-Business Suite • Functional Innovation
Asset Lifecycle • Operational Efficiency
Management
Investment
Priorities

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Enterprise Asset Management (eAM)
Linear Asset Support with Improved Usability and Operational Efficiency
NEW IN 12.2.4
• 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

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Linear Asset Management

New feature in E-Business Enables asset maintenance


Suite release 12.2.4 for Spatially located assets

Integral feature of Oracle Improves visual


EAM that enables GIS management for
Systems Integration maintenance by Map based
seamlessly actions

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Maintenance Analytics

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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

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Oracle Enterprise Asset Management Analytics
Insight into Enterprise Asset Maintenance
• 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.

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Role-Based Best Practices Provide Relevant and
Actionable Insight for Everyone
Enterprise Asset Management Analytics – Key Objectives and Questions by Role
Enterprise wide visibility into Asset Utilization and Availability
VP of • What are the bottlenecks in the current
Operations • What does it cost to maintain & operate my assets? maintenance process?
• What is the expected life of my assets? • How can I get timely asset information and respond
more quickly to change?
Facility wide visibility and tracking of Assets
Facility Maintenance • Which asset strategies work to my advantage to drive
Manager uptime? • What are the asset downtimes and unavailability
• What are the preventive and unplanned maintenance costs for the current quarter?
and trends for this quarter?
Monitoring and controlling Asset Maintenance
• How many backlog maintenance work orders for vehicles • What is the spares Inventory details across
and equipments Maintenance Organizations?
Fleet Maintenance
Supervisor • What are preventive maintenance schedules for this • What are the Resources being used and what is
period? their utilization and efficiency?

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Oracle Enterprise Asset Management Analytics
Sample Dashboards
Prepackaged Enterprise Asset Management Analytics

Overview Work Order Analysis Failure Analysis

Resource Analysis Maintenance Cost Workorder Summary


Role-Based Dashboard
VP Operations Facility Maintenance Managers Fleet Maintenance Supervisor
• Asset 360 degree : Asset history since • Schedule maintenance: Monitor schedule • Spares Inventory – Track spares inventory
inception maintenance execution. levels and availability
• Maintenance Cost : Monitor • Failure Analysis : Mean Time to Repair • Resource Analysis – Analyze the overall
maintenance cost along with asset (MTTR), Mean Time Between Failure efficiency of the resources
performance (MTBF) analysis.

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Enterprise Asset Management Analytics:
Sample Metrics
Sample Analysis & Metrics
EAM - Resource Availability EAM - Resource Usage EAM - Inventory Aging
• Actual Resource Hours
• Resource Availability • Available Quantity
• Standard Resource Cost
• Resource Availability Value • Available Amount
• Actual Equipment Hours
• YAGO Resource Availability • Obsolete Inventory Quantity
• Resource Efficiency
• Chg YAGO Resource Availability • Year Ago Obsolete Inventory Value
• Resource Cost variance
• % Chg YAGO Resource Availability • Days In Inventory
• YAGO Actual Resource Cost
• Resource Utilization % • Days Left Expiry
• Chg YAGO Labor Efficiency
• .% Chg YAGO Resource Utilization • Days Since Expired
• .% Chg YAGO Labor Efficiency

EAM - Asset Quality EAM – Asset History


• Asset Cost
• Preventive Cost
• Count of Tests
• Actual Maintenance Cost
• Test Quantity
• Unplanned Maintenance Cost
• Result Value
• Number of Years Since Installation
• Actual Maintenance Cost – YTD

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Oracle Enterprise Asset Management Analytics
Hierarchy of Metrics

Strategic Level
Metrics
Maintenance
Cost Variance%
Downtime Planned Workorders Operational
Estimated Incurred
Total Cost Ratio Level Metrics
YAGO Failure YAGO
Backlog %
Count Backlog
Actual Total
Cost Breakdown Cost Resource Cost Cycle Time Past Due
Ratio Charged Backlog %
Actual Material Count of Failure Count Estimated Estimated Routine Action
Cost Failure % Labor Cost Labor Cost Workorders
Root Cause Level
Analysis Actual Equipment Preventive Breakdown Unplanned # of Reactive Emergency
Cost Cost Downtime Metrics
Cost Work Orders Workorders

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Oracle Install Base

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Product Overview – Oracle Install Base

• Item Instance life cycle tracking application

• Enables Product life cycle management at the micro level

• Facilitates Instance Tracking across applications

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Key Product Benefits

– 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.

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Install Base Integrations

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Endeca Integration for Install
Base

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Endeca for Installed Base
Value Proposition

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Identify Installed products by geography

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

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Identify Impacted Product hierarchies for a service / repair scope

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Oracle Asset Tracking

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What is Oracle Asset Tracking (OAT)?
…Single repository provides Asset Life Cycle Tracking

Operational view Financial view


Oracle Asset Tracking

• Cost
• Depreciation
• Tax

• Ownership
• Location
• Availability
• Configuration

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What does OAT provide?
Visibility Automation
• Single asset • Automatic asset creation
repository
• Synchronized moves and
• Asset Visibility – updates
Cradle to Grave
• Updates to asset
• View asset configuration and costs
configurations

Transaction Auditing System Integration


• Complete history of • Integration to EBS
assets modules – FA, AP,
• Unlimited versioning Purchasing, Inventory,
Projects, Service, OM,
• All changes to assets Customers, Locations and
captured Suppliers

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Oracle Asset Tracking Integration Points

Contracts Purchasing Inventory Deployment


•Transfers •Install

•Warranties •PO Receiving •Move Orders •In-Service

•Issue to Project •Out-of-Service

•Misc. Issues/Receipts •Item Move

•Physical Inventory/CC •Retire

Oracle Asset Tracking


•Create Installed Base Instances •Track Location •Create Assets •Process Retirements
•Posts Project Expenditures •Manage Usage •Update Asset Location •Adjust Asset Cost

Projects Assets Service Payables


•Manage Costs • Service • Invoice Price
•Depreciate /Normal Assets
Requests Variances
•Interface to Assets

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Asset Lifecycle Management – Acquire/Build phase
Global
Asset
Repository
Advanced Project
Collaboration Tools Asset Portfolio Mgmt Management

Build / Operate / Retire /


Plan Commission
Acquire Maintain Dispose
 Asset Financial
 Asset Intelligence
 Maintenance Management

1. Acquire Assets – Depreciable Items flow


2. Manual assignment of Fixed asset
3. EAM Construction Units feature

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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

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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.

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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.

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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.

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Asset Lifecycle Management – Commission phase
Global
Asset
Repository
Advanced Project
Collaboration Tools Asset Portfolio Mgmt Management

Build / Operate / Retire /


Plan Commission
Acquire Maintain Dispose
 Asset Financial
 Asset Intelligence
 Maintenance Management

1. Normal Items flow – Capitalize on Field issue


2. Deployment Transactions

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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.

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Commission phase- Capitalize CIP Assets

PO Receipt
to Projects

Put in Interface In- Create Asset Generate Create Fixed


Service service txn Headers Lines Asset

Issue to
Projects

• 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.

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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.

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Asset Lifecycle Management – Maintenance phase
Global
Asset
Repository
Advanced Project
Collaboration Tools Asset Portfolio Mgmt Management

Build / Operate / Retire /


Plan Commission
Acquire Maintain Dispose
 Asset Financial
 Asset Intelligence
 Maintenance Management

1. EAM Work Order Management


2. Asset Move Portal in EAM
3. Interface Move transactions program

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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.

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Operate/Maintain phase – EAM Asset Move Portal

Entire hierarchy can be moved

• 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.

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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.

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Asset Lifecycle Management – Retirement phase
Global
Asset
Repository
Advanced Project
Collaboration Tools Asset Portfolio Mgmt Management

Build / Operate / Retire /


Plan Commission
Acquire Maintain Dispose
 Asset Financial
 Asset Intelligence
 Maintenance Management

1. Retire Deployment transaction


2. Interface Move transactions program
3. De-activate/Expire Assets.

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Retire phase – Retire transaction

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

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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.

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Industries & Customers

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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

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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

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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.

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OAT Customers

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EAM - OAT Integration

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EAM & OAT - Integration
• Shared data model :
<Insert Picture Here>
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.

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Foundation: Global Asset Repository

Operations • Physical Location Finance • Capital budget


Data • Quantity Data • Book value
• Ownership • Cost history
Global • Leases
• Transactions Asset • Ownership
Repository • Tag number
“OAT”
“Fixed Assets”
Maintenance • Downtime / repair history
Data • Failure & reliability analysis
• Maintenance schedule
• Asset configuration
• Safety complaince
“EAM”
Achieve a Single Source of Truth About Your Assets

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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?

Copyright © 2014 Oracle and/or its affiliates. All rights reserved. | 87


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

Goal Cradle to grave history of all operational asset

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

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