Oracle Enterprise Asset Management R12

An Overview
( Part I )

Vinod Menon
ERPSOFT
LLC
Email: vinodkumar.n.menon@accenture.com

17th June 2010

Purpose

Understand the high level overview of Oracle EAM R12

functionalities.
Understand the mandatory modules that requires to support
Oracle EAM.
Quick understanding of Maintenance Solution in
Oracle(eAM/cMRO).
Understand the integration touch point and business process
flows for each oracle modules.
Overview of some important end-to-end process ( For example,
Asset Acquisition to Maintenance/Tracking).

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Fixed Assets/Capital Assets may need Periodic or

Preventive Maintenance

Fixed Asset
Property, Buildings, and Equipment/Tools
Property:
o Land

Buildings:
o Office Buildings
o Shop Floor
Equipment/Vehicles:
o Equipments, Trucks/Support Vehicles, Arms, Computers, Cars

On time preventive maintenance saves a lot of money for organizations in terms of

productivity, shutdowns etc.
Preventive maintenance also saves money by extending life of an asset.

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Inventory items : May also need maintenance

In a maintenance world there are two types of items:
Repairable or Re-buildable items
Consumable items

Re-buildable inventory
An item that is sub-assembly/part of an Asset but need maintenance periodically and
can be repaired then re-used.
Motors
Engines
Tires

Consumable inventory

An item that are used for maintenance or one time used item in an asset. Once it is
not functioning or broke or consumed, it is scrapped.
Oil
filters
Nuts/bolts

Oracle EAM support preventive maintenance as well as incidental repairs for

re-buildable Inventory.
Again, on time maintenance of re-buildable inventory saves lot of money for organizations.
For example, recommended Tire rotation extend life for tires.

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Maintenance Quick Overview of eAM v/s cMRO

Decision making when to use EAM or cMRO ?

EAM can be used for maintaining Assets and Re-buildable

/Repairable Inventory items. Assets can include: Equipments/Tools/Vehicles
Repairable/Re-buildable Inventory
Land/Facilities/Buildings

cMRO is a maintenance solution for the entire maintenance life

cycle for complex assets specifically Aerospace industry &
supports the following:

Aircraft induction
Flight Line maintenance
Heavy maintenance planning
Heavy maintenance execution
Engine and component overhaul

When to use EAM ( Enterprise Asset Management) and cMRO ( Complex Material, Repair
& Overhaul ? Why cant we use the same the product formaintaining all the Assets?

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Maintenance Quick Overview of eAM v/s cMRO Contd.

cMRO

Maintaining assets that fly (such

as jets)
cMRO have Govt./Military
configuration control and
regulatory functionality
cMRO run a depot that
manages major repairs on a
regularly scheduled basis (think
of a major overhaul for an
airplane).
cMRO more of a maintenance
depot business process

eAM

Maintaining Assets and Rebuildable parts that doesn't fly

EAM does not have all Govt.
configuration and regulatory
controls to support Aircraft,
Ships, Missile etc.
EAM is a maintenance
planning tool

In short , Airlines/Missiles - anything that fly is cMRO ! The main reason being complexity
In maintenance and Govt. regulations/policies on maintenance like FAA, DoD etc. Also these assets
needs seasonal maintenance plans. For example, War time v/s peace Time maintenance plan for
Military Aircrafts or Winter maintenance v/s Summer maintenance for commercial Airlines.

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Oracle eAM Mandatory & Optional Modules

Mandatory Modules
Implementation of Enterprise Asset Management includes configuration of shared components
from the following products:

Oracle Inventory
Oracle Bills of Material
Oracle Human Resources
Oracle Cost Management
Oracle Manufacturing Scheduling
Oracle Work In Process
Oracle Quality

Optional Modules

Oracle Master Scheduling/MRP

Oracle Property Management
Oracle Financials
Oracle Fixed Assets
Oracle iProcurement
Oracle Projects
Oracle Project Manufacturing
Oracle Purchasing
Oracle Order Management
Oracle Time and Labor

As you can see Oracle eAM is not a stand alone module. In order to function there are some
mandatory modules need to be setup. Also based on the business requirements for each customer
Additional modules may be needed.

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Oracle eAM Standard Integration - Overview

Receiving

T&A

Purchasing
Time
Entry

PO

Manufacturing

WO Materials,
Reqs Linked to
WO & Workflow

Posting
Integration

Employees &
Skills

AP

Inventory

Product &
Maint WO
Transactions
Costs
Updates

WO Updates,
Catalogs

Suppliers

HR

Changes to Capitalized
Asset Depreciation

Project / Task,
WO Costs

eAM
Chart of
Accounts

GL

Service
Service Request
Linked to
WOR / WO

Customers

WO
Billing

AR

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

Projects

Depreciable
Assets/WO
Capitalization

FA

Maintainable
Assets

Property

R12 - Asset Creation in FA, eAM & OAT (Oracle Asset Tracking)
Any Asset purchased needs to be added to Assets using Mass Addition process.
In R12, upon purchase order receipt, assets can be created in EAM and
templates can be applied so that the maintenance strategy is established
automatically.
After receipt, the same asset can be interfaced to Fixed Assets, via concurrent
processes. ( Mass Addition Program )
You can also add assets from other sources. ( Using APIs say from Legacy
systems,).
If OAT ( Oracle Asset Tracking ) is installed a record will be created in OAT so that
the asset tracking will be initiated.
You can manually create Assets in EAM too.

Now you have the asset recorded into the Financial Asset Books as well as in EAM. If you setup
And apply appropriate templates the Asset is ready for maintenance schedule in EAM. This saves
Lot of data entry efforts.

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Oracle Asset Tracking - R12 Quick Overview

Oracle Asset Tracking provides an enterprise tracking and asset management

system where all inventory, project, customer, and asset-related material
information is stored, providing a 360-degree view of your assets ( Inventory,
Fixed or Capital Assets). You can locate materials anywhere in the system in
warehouses, on trucks, installed in the network, or on project sites facilitating
financial transactions using physical movements of material and equipment. In
addition, Oracle Asset Tracking can provide a life-cycle history of all activity for
that equipment.
Provides automatic handling of costs, units and location updates in Fixed
Assets for inventory transfers, asset deployment and internal sales order
shipments
Oracle Asset Tracking is tightly integrated with other oracle modules like
Assets, Inventory, Enterprise Asset Management (EAM), Purchasing, Order
Management, Projects etc.

This is an enhanced version of Rel 11i Enterprise Install base module and tighly integrated with
eAM and other modules using XML messages.

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Asset Tracking XML integration with other modules - High

Level Flow

Asset Tracking receives XML based messages when an inventory or asset transaction occurs if it
is marked as Asset Trackable in the item master. Messages can be setup for legacy Systems too.

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Asset Acquisition and Tracking

Business Process R12

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Create a PO for the Asset Group in EAM

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Make sure that the Asset Group set up in the Inventory and EAM. Also Activity , Activity BOMs,
Maintenance Templates etc. are setup and applied to the Asset Group.

Approve the PO

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PO is approved and sent out to the Supplier. Ready to receive it from the Supplier.

Receive the Assets

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Search using PO and Supplier

Receive the Asset into the Asset Sub-Inventory

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Make sure that the Assets are received into a Sub-inventory that is setup as Asset Sub-inventory
Also eAM category has been setup and selected. This will trigger API to populate eAM .

Assign Serial Numbers to the Asset while receiving

It is important that the asset Group is setup as serial control so that each asset can be uniquely
Identified and maintained. . In this case since it is vehicle VIN number can be used.

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Verify that eAM Asset is created automatically

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In R12, receiving will kick off the asset creation automatically in eAM and OAT ( Oracle Asset
Tracking) using API.

Check Meter

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You can see that using Pre-defined Meter Templates assigned to the Asset Group the meter
has been created automatically too.

Check the Activity Association

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You can see that pre-defined activity templates resulted in automatic assignment of activities for
the eAM Asset just received.

Check the Activity Association

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You can see that the sub-inventory location received will be initially assigned to the Asset.

Assigning PM Schedule

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Assigning PM Schedule for the Asset using the PM Schedule Template. Or you can create one new.
.

Assigning PM Schedule using the Templates

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Remember that PM Schedule can be rules based or List Dates. ( maintenance to be performed on a
Specific day )

View PM Schedule Details

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Using PM Schedule templates assigned to the Asset Group, the PM schedule was assigned
automatically.

View Meter Association of PM Schedule

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Using the Meter Template, the associated meter was created and will be used with the defined
Rules for the PM Schedule.

View Meter Rules and Readings

Service Date & Meter Reading information can also be viewed. Since this asset has just been
acquired, the default reading for the service is zero (0).

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View Asset Tracking Module

The same asset can be viewed from OAT.

To perform this, change responsibility to: Asset Tracking Super User.

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View Asset Tracking Details

In the General tab, the Organization, eAM Asset Description (Instance Name) display. Also note
that the Accounting Classification is Inventory . This value will change after we create the
Fixed Asset.

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View Asset Tracking Maintenance Information

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This Information will also change after Fixed Asset has been created ( FA ).

View Asset Hierarchy

After searching for the parent Asset associated with one of the newly purchased assets, you can see that the EAM Asset & the VIN
(entered as the SN for the asset at receipt) is now part of the hierarchy. The asset has been established and now part of maintenance
and work can be performed on the asset. Because it is inventoried, it can also be transferred to another EAM Organization should
the asset change location or require service in another maintenance organization.

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Creating Fixed Assets Create Accounting

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Before creating Fixed Assets, you must cost the Receipt. ( Inventory Manager must be running) and
the Sub ledger Accounting process is required to run.

Creating Fixed Assets Create Accounting Object

Select the process Create Assets: Interface Inventory Transactions to Oracle Assets.
This process will pass the Asset information to Oracle Assets.
.

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Creating Fixed Assets Run Post Mass Additions

From the Assets or Asset Tracking Responsibility Select the Post Mass Additions.
This will create Assets in the Asset Book.

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Creating Fixed Assets Verify the Asset Creation

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Verify EAM Asset Information after FA asset creation

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See that Accounting class has now changed to Maintenance from Inventory

Verify EAM Asset Information after FA asset creation

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See that EAM Asset and The fixed Asset has been linked after running the Mass Addition.

Verify the Asset Tracking History

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Summary
Streamlined process and integration between Financials (Procurement & Assets), Supply Chain (Inventory), OAT
and eAM.
Assets can more easily be created for maintenance as they are purchased. This reduces duplicate efforts while
improving accuracy & visibility through transaction history. The use of templates makes the maintenance definition
more efficient and consistent.
The FA integration provides an accurate link for maintenance and procurement.
The user has full visibility of asset lifecycle with views that are important to respective operations of the
organization.
Single source of truth about the lifecycle of an Asset from Acquisition to Maintenance to Retirement.

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