Oracle EAM and Asset Tracking Best Practices

Oracle EAM and Asset Tracking
Best Practices

Arunkumar

Kaliappan

&
Dharmender

Gupta
–

Oracle

Simon
Aitchison

–

Cochlear

Ravi
Ravikoti

–

ON Semiconductor

Xavier
Falchetti

–

Key Energy Services




Copyright

©

2013, Oracle and/or its affiliates. All rights reserved.

2


Simon
Aitchison
, Cochlear
Limited


Ravi
Ravikoti
, On
Seminconductor



Xavier
Falchetti
, Key Energy


Arunkumar

Kaliappan
, Oracle &

Dharmender

Gupta, Oracle

Oracle Enterprise Asset Management and Oracle Asset
Tracking Best Practices
–

CON9375

Wednesday, September 25, 5:00
–

6:00 PM

Moscone

West 2002/2004

Copyright

©

2013, Oracle and/or its affiliates. All rights reserved.

3

The following is intended to outline our general product direction.
It
is intended

for
information purposes only, and may 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 making purchasing decisions. The development, release,
and timing of any features or functionality described for Oracle
’
s products
remains at the sole discretion of Oracle.



Copyright

©

2013, Oracle and/or its affiliates. All rights reserved.

4

Program Agenda


Oracle ALM
–

Solution Overview


Best Practices around EAM,OAT


Customer Case Studies
–

Cochlear,ON

Semi,Key

Energy


Q & A


Copyright

©

2013, Oracle and/or its affiliates. All rights reserved.

5

Program Agenda


Oracle ALM
–

Solution Overview


Best Practices around EAM,OAT


Customer Case Studies
–

Cochlear,ON

Semi,Key

Energy


Q & A


Copyright

©

2013, Oracle and/or its affiliates. All rights reserved.

6

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
compliance

Maintenance

Data

•
Physical Location

•
Quantity

•
Ownership

•
Transactions

Operations

Data

“OAT”

“EAM”

“Fixed Assets”

Copyright

©

2013, Oracle and/or its affiliates. All rights reserved.

7


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

Copyright

©

2013, Oracle and/or its affiliates. All rights reserved.

8


Global

Asset

Repository

Asset Lifecycle Management
–

Commission phase

Project
Management

Advanced

Collaboration Tools

Asset

Maintenance

Financial

Management

Asset Intelligence

Asset Portfolio Mgmt







Plan

Build /

Acquire

Operate /

Maintain

Retire /

Dispose

Commission

1.
Normal Items flow
–

Capitalize on
Issue to Field
and Sales Order Shipment

2.
Deployment
Transactions

Copyright

©

2013, Oracle and/or its affiliates. All rights reserved.

9


Global

Asset

Repository

Asset Lifecycle Management
–

Maintenance phase

Project
Management

Advanced

Collaboration Tools

Asset

Maintenance

Financial

Management

Asset Intelligence

Asset Portfolio Mgmt







Plan

Build /

Acquire

Operate /

Maintain

Retire /

Dispose

Commission

1.
EAM Work Order Management

2.
Asset
Move Portal in EAM

3.
Interface Move transactions
program

Copyright

©

2013, Oracle and/or its affiliates. All rights reserved.

10


Global

Asset

Repository

Asset Lifecycle Management
–

Retirement phase

Project
Management

Advanced

Collaboration Tools

Asset

Maintenance

Financial

Management

Asset Intelligence

Asset Portfolio Mgmt







Plan

Build /

Acquire

Operate /

Maintain

Retire /

Dispose

Commission

1.
Retire Deployment transaction

2.
Interface Move transactions program

3.
De
-
activate/Expire
Assets

Copyright

©

2013, Oracle and/or its affiliates. All rights reserved.

11

Program Agenda


Oracle ALM
–

Solution Overview


Best Practices around EAM,OAT


Customer Case Studies
–

Cochlear,ON

Semi,Key

Energy


Q & A


Copyright

©

2013, Oracle and/or its affiliates. All rights reserved.

12

Best Practices


Inclusive role of Maintenance End
-
users, Management at every level


Maintenance needs are unique in areas like Spares Inventory Planning,
Scheduling, Budgeting and Skills Development

Around EAM,OAT Implementations

Copyright

©

2013, Oracle and/or its affiliates. All rights reserved.

13

Best Practices


Evaluate Product features


Validate and map business requirements after studying all of product and
integration features


Around EAM,OAT Implementations

Copyright

©

2013, Oracle and/or its affiliates. All rights reserved.

14

Best Practices


Sequence of Implementation


Start with foundation streams and proceed to transactional areas in a
phased manner

Around EAM,OAT Implementations

Copyright

©

2013, Oracle and/or its affiliates. All rights reserved.

15

Best Practices


Socialize and keep track of product happenings


Follow and participate in Knowledge forum discussions
–

Customer
Connect,MOS

Community,Linked

In,…

Around EAM,OAT Implementations

Copyright

©

2013, Oracle and/or its affiliates. All rights reserved.

16

Program Agenda


Oracle ALM
–

Solution Overview


Best Practices around EAM,OAT


Customer Case Studies
–

Cochlear,ON

Semi,Key

Energy


Q & A


17

• IT
-

IS Systems Management • September 2013

Cochlear Limited

WC376384 ISS1

About me

•
Me
:




Simon
Aitchison

•
My Role:

Solution Architect

•
Tenure:

6 years +


•
Just finished

Global EBS upgrade from 11i to R12 (12.1.3) which introduced ERES support
for
eAM

(among other improvements)



Application Landscape

•
EBS Application Footprint
-

Extensive

Advance Supply Chain Planning, Bills of Material,
Discrete MFG, Demand
Planning, Depot Repair,
eRecord
/
eSignature
, Install Base,
Inventory,
Order
Management, Quality, Purchasing,
iProcurement
,
Work in Process, HR,
Financials + others

•
eAM

Implementation

Not large when compared to other
eAM

Customers

–
Sites: 1

–
Users: 20
-
25

–
Assets: ~5500

–
WO/Year: ~
4800

Global footprint

Global headquarters

Regional office

Götebo
rg

Hannover

Basel

Istanbul

Mechelen

Bologna

Toulouse

Paris

London

Seoul

Tokyo

Hong Kong

Beijing

Toronto

Denver

Singapore

Mumbai

Brisbane

Sydney

Melbourne

•
Direct operations in 20
countries

•
Manufacturing in Australia
and Sweden

•
2,500+ employees

•
Listed on Australian
Securities Exchange in
1995
-

today top 100

•
Market cap over AU$3bn


Shanghai

Panama

Cochlear Global
Headquarters

Sydney, Australia

Cochlear Bone
Anchored Solutions

Gothenburg, Sweden

•
Division of Cochlear
Ltd

‒
Baha

bone conduction
solutions

‒
Vistafix

facial
prosthesis

•
R&D, marketing,
regulatory, manufacturing,
quality, distribution, finance
and admin support

•
Over 140 employees


Global footprint

Distribution in 100+ countries

Bolivia

Columbia

Australia

Bahrain

Bangladesh

India

China

Netherlands

Greece

France

Finland

Estonia

Egypt

Chile

Canada

Indonesia

Mexico

Malaysia

Korea

Italy

Peru

UK

Sweden

Brazil

Germany

Denmark

Ireland

Japan

Israel

Thailand

Qatar

Switzerland

Poland

Norway

Spain

Nepal

Saudi Arabia

Jamaica

Ecuador

Hungary

Kuwait

Philippines

Russia

Cyprus

Oman

Pakistan

Quality first and foremost

Compliance with numerous
Regulatory Organizations

TÜV

Food and Drug
Administration

Therapeutic
Goods
Administration

21 CFR Part 11

The Journey to Compliance

Old System

Oracle
eAM

•
Constant growth in off
-
site storage
for archived records

•
No traceability of procured
calibration services

•
Very limited breakdown service
information captured

•
No visibility of equipment locations

•
Non
-
validated system

•
Reduced reliance on paper
records and off
-
site storage

•
Full traceability of procured
services to related work orders

•
Breakdown information captured

•
Asset hierarchy provides visibility
of equipment locations

•
Oracle ERP is a validated
platform

Single source of truth!

Manual, inefficient, unsustainable.

The Journey to Compliance

Old System

Oracle
eAM


•
Varying levels of quality data
captured (
ie
. test results, reports)

•
Manual work order forecasting

•
No reporting or dashboards


•
Valuable
quality information
captured consistently

•
Automatic work order forecasting

•
Dashboards
Tracking

Single source of truth!

Manual, inefficient, unsustainable.

Single Source of Truth

Old System

Oracle
eAM

Single source of
truth /
reproduceable

authoritative documents !

Manual, inefficient, large risk profile

Interoperability and integration

EAM

Interoperability and integration

Suppliers

Manufacturing

Purchasing

Inventory

WIP

HR

EAM

ERES

Quality

28

• IT
-

IS Systems Management • September 2013

Confidential Proprietary

29

• IT
-

IS Systems Management • September 2013

29

• IT
-

IS Systems Management • September 2013

Oracle Open World 2013:


Enterprise Asset Management

Ravi Ravikoti

IT
–

IS Systems Management

September 2013

30

• Template •
Nov
-
12

Confidential Proprietary

30

• Oracle Open World 2013 • Enterprise Asset Management

Contents


About Me


Company Overview


Current Oracle
eBS

eAM

Footprint


Strategy for FE Mfg Applications Model


Current Situation


Scope


Goals


Q&A

31

• Template •
Nov
-
12

Confidential Proprietary

31

• Oracle Open World 2013 • Enterprise Asset Management

About Me


Ravi Ravikoti


IS Systems Management at On Semiconductor


Manage Global Teams:


Oracle
eBS


Business Intelligence


Data Warehouse

32

• Template •
Nov
-
12

Confidential Proprietary

32

• Oracle Open World 2013 • Enterprise Asset Management

Applications

Governance / PMO / Integrations

Compliance, Security and Risk

Quality

Logistics

TRAK

WWPD

BarTender

Messaging / Middleware

Oracle Fusion Middleware

GXS, Oracle JCAPS, MSP, TIBCO

Global Network

Verizon

Data Center / Hosting

PHX, SBN, HP, IBM

Sales &

Marketing

CSSOP

Model N

Planning

JDA

Product

Groups

Agi l e

CADENCE

Finance

Oracl e EBS

Hyperi on

Purchasing

Oracl e EBS

Inventory

Product

Data

Mgmt

Agi l e

Manufacturing

Legal

Autonomy

Human

Resources

Oracl e EBS

Master Data / Data Warehousing

Oracle Fusion Middleware

Oracle Warehouse Builder

Business Intelligence / Analytics

Oracle Business Intelligence

Hyperion Interactive Reporting

Client Delivery (PC’s, Laptops, Web, Smart Phones, Tablets, etc.)

FE

Mfg

PROMIS

Vari ous

ATO

Mfg

Genesis

Vari ous

Mfg

Support

&

Interfaces

Vari ous

Probe, Test

& Yi eld

DataPower


Vari ous

IRAB

ON IT Systems Stack
–

Enterprise
Applications

Functional Applications

Shared Service Applications

33

• Template •
Nov
-
12

Confidential Proprietary

33

• Oracle Open World 2013 • Enterprise Asset Management

•
Headquarters:

Phoenix, AZ

•
Employees:
~19,000 globally

•
Revenue:
~$2.9Bn
(1)

•
Market Capitalization:
~$3.6Bn
(2)

•
Ticker:
ONNN

•
Founded:

Spun
-
off from Motorola 1999, IPO 2000


ON Semiconductor Today

(1) 2012 revenue (2) According to NASDAQ
-

based
on closing stock price on
May 3, 2013 (3) Sector % based on 1Q13 results

35

• Template •
Nov
-
12

Confidential Proprietary

35

• Oracle Open World 2013 • Enterprise Asset Management

Global Operations and Support

37

• Template •
Nov
-
12

Confidential Proprietary

37

• Oracle Open World 2013 • Enterprise Asset Management

Current Oracle
eAM

Footprint


2 Factories;




Belgium
Fab
, with ~2800 assets installed, 170+ PM’s per week, with
156 EAM users;


Pocatello
Fab
, Idaho, with 2400 assets installed, ~102 PM’s per
week, with 94 EAM users;


Both
Fabs

-

eAM

Oracle 11i deployed since March 2009;
Upgrade to R12 March 2011.



Key benefits centered around Cost of Ownership visibility
(Asset, Project, & PM, etc), PM management, Inventory
visibility and demand planning.




38

• Template •
Nov
-
12

Confidential Proprietary

38

• Oracle Open World 2013 • Enterprise Asset Management

Interfaces between Oracle
eAM

and MES Apps


PROMIS Equipment Status Change


Workstream

Equipment Status Change


Workstream

Scheduled Events


Cell Controller Meter Readings


Stocker Material Transactions


Stocker Inventory Queries


39

• Template •
Nov
-
12

Confidential Proprietary

39

• Oracle Open World 2013 • Enterprise Asset Management

Preventive Maintenance Process

40

• Template •
Nov
-
12

Confidential Proprietary

40

• Oracle Open World 2013 • Enterprise Asset Management

Strategy for FE Mfg Applications Model

ERP

Oracle EBS / IRAB

Yield Analysis

dataPOWER

Map Trans

UMR

E
-
test

CDEP /
SPC

Dispatching/LB

APF/RTD

Capacity

Autosched

Certificates

eTrain

Training Mgmt

eTrain

Eqp

Maint

Oracle EAM

Fab

Reports

FabTime
, APF

IM Interface

MES Adapter

Oper

Analysis

TBD

Spare Parts

Oracle EAM

Mfg Metrics

Hyperion, GFR

MES

PROMIS 5.8

Automation

Fab 10 Automation

Rcp

Mgmt

TBD

Par
Control

PARCON

F
Detection

BrookSid
e

APC

TBD

SPC

TBD

Quality

CADET

Probe Control

Mapper

Data Collection

Newton DV

Defect Systems

Klarity
,
dPower

Eng Prod

TBD

Test
Prog

CM

Newton CM

41

• Template •
Nov
-
12

Confidential Proprietary

41

• Oracle Open World 2013 • Enterprise Asset Management

Current Situation with Czech Factories


MES PROMIS partially provides functionality for manufacturing
equipment preventive maintenance planning


Manual planning with MS Excel spread sheets is used for facility
maintenance. Future parts requirements and advance ordering for all
preventive maintenance for both
fab

and facility maintenance are
managed manually


Oracle Purchasing and Inventory is used without relation to specific work
order or equipment


Material spending and actual costs are available from spread sheets
with manual entries

42

• Template •
Nov
-
12

Confidential Proprietary

42

• Oracle Open World 2013 • Enterprise Asset Management

Scope


2014 Deployment in
Roznov
, with future organizations still under
review.


Rollout of
eAM

is planned for both CZ2 (RAW Wafer Production)
and CZ4 (Wafer Fabrication), and facilities (Common)



Review and possibly change business process for piece part
receiving and issuing


Purchasing, BOM, Inventory and WIP modules to support EAM


Integrate PROMISE


Data migration


43

• Template •
Nov
-
12

Confidential Proprietary

43

• Oracle Open World 2013 • Enterprise Asset Management

Goals


Potentially reduce spare parts Inventory


Replace excel based Manual parts planning with more
automated system driven


Avoid manual account entries for parts consumption of spares


Be able to calculate and analyze the cost of specific equipment
maintenance activities, both scheduled and unscheduled


Standardize the Plant facilities and Equipment maintenance
systems and processes across the organization

44

• Template •
Nov
-
12

Confidential Proprietary

44

• Oracle Open World 2013 • Enterprise Asset Management

Q&A

Questions
Key Energy Services, LLC

Xavier Falchetti

ATD/PTP Business Process Manager

Key Energy Services, LLC

•
Corporate HQ: Houston, TX

•
NYSE: KEG

•
Locations in USA, Canada, Mexico, Colombia, Oman, Bahrain, UAE, Russia,
Ecuador

•
+10,100 employees

•

23
rd

largest private transport company*

•

Lines of businesses:

–
Rig services

–
Fluid management

–
Fishing & rentals

–
Coiled tubing

–
Liner hanger


46

*Transport Topics 2012 Private Carriers

Xavier Falchetti

•
Business Solutions Manager ATD/PTP

•
Provide solutions for the lob’s that fall in the Acquire to
Dispose and Procure to Pay business streams and oversee our
support team for the following Oracle Modules

•
Purchasing, Inventory iProcurement, AP, iExpense (in process)

•
Enterprise Asset Management, Asset Tracking/IB, Fixed Assets,
Projects

•
WIP, BOM, Project Manufacturing (in process)


Confidential
–

For Internal Use Only

47

Asset Lifecycle

Asset Built or
Purchased

Asset
Received into
Inventory or
Projects

Flows to
eAM

Hierarchy
Build

Issued from
Project to KUS

Assets
Transferred
from Projects
To FA for
Capitalization

OAT Installed
and In
-
serviced to
facilitate
Capitalization

Operate and
Maintain
Asset

Asset Retired

Overview of Integration

-
49
-

Capitalized
Depreciation

Asset
Transactions

Posting
Integration

Chart of
Accounts

Plans &

Work Orders

Costs &
Tasks

Materials
Management

Material Req’s
& POs

Employees &
Skills

eAM

Procurement

Manufacturing

Projects

Inventory

Human

Resources

Accounts

Pay/Rec

Fixed
Assets

Asset

Tracking

General

Ledger

Oracle eAM provides out
-
of
-
the
-
box integration with many
of the Oracle modules that Key
Energy is already using.

Oracle
eAM

Integration

Oracle

General
Ledger

•
Balances

•
Acct.
Validation

•
Closing
Schedules

Oracle Accounts

Payable

•
Invoice Matching

•
Vouchering

•
Payments

Oracle Procurement

•
Approved Suppliers

•
Blankets/Contracts

•
P.O. Approvers

•
Catalogs

•
Requisitions

•
Purchase Orders

•
Receiving/Inspection

•
Inventory

Oracle


Projects

•
Project #

•
Task ID

•
Budget

•
Expenditure
Type

Oracle eAM

•
Asset Definition/Hierarchy

•
Asset Activities

•
Bills of Material

•
Routings

•
Meters

•
Work Requests

•
Work Planning & Execution

•
Scheduling

•
Quality


Oracle OAT

•
Operating
Status

•
Asset
Attributes

•
External
Reference

•
FA Asset Link

•
Install/In
Service


Oracle Item
Master

•
Item Definition

•
Costing

Oracle Discrete & Process Manufacturing


Asset link to Manufacturing Equipment

Oracle


Fixed Assets

•
Project close

•
Asset link

Agenda

Asset Moves Pre Go Live

Current Process
Involves
7 steps per component
of rig

13 X 7 =

84 Steps

10 Financial Records

10 Financial Records

Rig 0000001
-

408 Org

Engine1

Engine2

Engine1

Engine2

Owning Organization: 408

Owning Organization: 428

Component 3

Component 3

Rig 0000001
–

428 Org

Sometimes not
updated as
program gets out
of synch

Department 117

(ELK CITY, OK
–

KUS
–

HYDRA WALK)

Department 224

(VAN BUREN, AR
–

KUS
–

RIG)

Department A59

(JACKSBORO, TX
–

KUS
-

FMS)

…. 300 Plus
Departments

Organization Collapse

-
52
-

At Key Energy the “revenue producing Districts” have all been
grouped into one Organization called Key US EAM. Each District will
be represented by a Department eAM with the appropriate Assets
and People.

Maint. People in 117

Maint. People in 224

Maint. People in A59

Maint. People in XXX

Resource

(117
-
LABOR)

Resource

(224
-
LABOR)

Resource

(A59
-
LABOR)

Resource

(XXX
-
LABOR)

117

Assets

224

Assets

A59

Assets

XXX

Assets

Organization Collapse

Reduced inventory organizations count from over 400 to
under 40 total

Rig 0000001
-

408 WIP/Dept

Rig 0000001
–

428 WIP/Dept

Move
Parent
Asset

Total

2 Steps

Engine1

Engine2

Engine1

Engine2

Location 408

Owning Department: 408

WIP Accounting Class: 408

Owning Department: 428

WIP Accounting Class: 428

Location 428

Asset Moves Now

Component 3

Component 3

Rig 0000001
–

428 WIP/Dept

Engine1

Engine2

Owning Department: 428

WIP Accounting Class: 428

Location 428

Asset
Move

Integration

Automating

depreciation
Account

for
Expense and FA
location of
Asset and
Componants

Greatly

reducing

cost

hitting

the
wrong
Locations

Component 3

Maintenance Record

Fixed Asset Record

Location 428

Location 428 Account
XXX.XXXX.XXX.XXXXX.XXX.XXXX.XXXX

Page Personalization Punch Out

-
56
-

Asset Updates

-
57
-

Both our Field Personnel and our Asset Manager can
update working status


Asset Updates

-
58
-

Asset Managers are able to update asset attributes
without having to switch to forms by using the Instance
Update Screen creating a more user

friendly experience


Asset Updates

-
59
-

They are then able to punch back to eAM and the
previous search they had performed streamlining
changes that need to occur


Questions

Copyright

©

2013, Oracle and/or its affiliates. All rights reserved.

61

Summary


EAM has been working well for customers from diverse industries


Device Manufacturer with audit and compliance requirements


Manufacturer for disparate systems


Energy Production and Services

What we have seen just now

Copyright

©

2013, Oracle and/or its affiliates. All rights reserved.

62

2
nd

Oracle Value Chain Summit


February 3
-
5, 2014
–

San Jose Convention Center


Hands
-
on workshops, solutions demonstrations & more than 200
sessions on topics in 6 complementary solution areas:
PLM,
Manufacturing, Enterprise Asset Management, Logistics, Planning
& Procurement


Early bird registration opens soon
–

www.oracle.com/goto/
VCS14




Empowering the Modern Value Chain

Save the
Date!

Explore How New Solutions Within Social, Mobile, Analytics & the Cloud
are Helping Companies Transform Supply Chains into Modern Value
Chains

Copyright

©

2013, Oracle and/or its affiliates. All rights reserved.

63

The preceding is intended to outline our general product direction.
It
is intended
for information purposes only, and may 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 making purchasing decisions. The development, release,
and timing of any features or functionality described for Oracle
’
s products
remains at the sole discretion of Oracle.



Copyright

©

2013, Oracle and/or its affiliates. All rights reserved.

64

Copyright

©

2013, Oracle and/or its affiliates. All rights reserved.

65