Oracle eAM Process Flow and Business Cycle

Oracle eAM Process Flow and Business Cycle

This document covers the entire business cycle of Enterprise Asset Management with sufficient details to the Business processes

and the Sub processes.

General Overview of eAM Business Cycle for any Maintenance Organization

Creation Of Work Requests

Creation Of Work Orders From Work Requests And Safety Procedures

Process For Releasing Of The Work Orders

Material Issue From The Shop Floor Against Work Orders

Work Order Resource Transactions

Completion And Closing of Work Orders

Failure Analysis Of Assets

Maintenance Cost Analysis

Preventive Maintenance Schedule Creation

Preventive Maintenance Work Order Generation

General Overview of eAM Business Cycle For any Maintenance Organization

Description

Whenever equipment breaks down, generally the Equipment operator is the first one to know about it. The Operator

will then report about the breakdown to his supervisor.

The supervisor, upon taking a note of the problem, will raise a Work request. In the Work request, the supervisor will

report the asset number and will also give a brief description of what the problem is. Based on the nature of the

problem, he can also assign the work request to a particular maintenance department

(mechanical/electrical/Instrumentation). However if the user is not sure which department this breakdown is

attributed to, the user will keep it blank.

The maintenance user supervisor, upon receiving the Work Request, will designate a person to go to the shop floor

and investigate the problem.

Sometimes the problem could be a minor one (like a loose connection) and could be rectified in minutes. In that case

the maintenance user will rectify the problem and close the work request giving appropriate reasons.

If however, the breakdown takes more time to repair, the maintenance user will use the "Create WO" functionality to

directly create a Work Order (henceforth referred to as WO) from the work request.

Against the work order, the user will add all the sequence of operations and against each operation, the user will

need to provide whatever resources (internal or OSPs) and materials/spares that are required.

In case of OSP items, the user will create a PR and forward it to the purchasing department for raising the PO

The maintenance user will then release the WO. Once the WO is released, transactions against that particular WO

will be allowed by the system.

The maintenance user will now start receiving the PO items (in case of OSPs), charge time (in case of internal

resources) and charge material issued from the stores against the WO number and the operation code.

As and when each operation is finished, the user will complete the particular operation.

Once the equipment is operational, the user will change the status of the WO to complete stage. The equipment is

then under the Trial Run phase.

If the trial run is successfully completed, the user will close the WO order. However, if the trial run fails, then the user

will have to un-complete the WO and again add the necessary operations and repeat the cycle against the same

WO.

 

Creation Of Work Requests

There are 2 sources of information which can lead to a Work request creation:

1-       From the Engineer or technician who is on Site

2-     Any Operator, or inspector, any user can report or request (by telephone verbally or through a written form) any

problem or service to be done on any asset, this request is to be addressed to the Help Desk

Help Desk (who is receiving the call or the request) after his double check on the problem reported will raise a Work

Request on the same asset, describing the problem in detail. The Help Desk will receive a notification on this Work

Request

The Help Desk will also define the Request Type, which can be any of the ones described in the above flowchart

The Requestor will (optionally) classify the Request by their priority with the following LOV: Urgent, Normal and

Emergency based on the business requirements.

The Maintenance Planner will do an investigation, enabling him to approve or to reject the work request.

If approved The Maintenance Planner will place the work request on a work order.

Creation Of Work Orders From Work Requests And Safety Procedures

Description

WO Number will be a running serial number for each Inventory Organization. That is every project will have a

different WO sequence. Similarly each unit of KDB will have a different WO sequence

WO could be of any user defined types Three most commonly used are Breakdown/Corrective Maintenance,

Preventive Maintenance, and Major Overhaul. A new WO type called Major Overhauling will be defined. The WO

costs for these overhauling maintenance types will be allocated to the capitalization account by passing a manual

journal.

If Work Orders are created from Work requests using the Auto create mode, WOs will keep a reference of the Work

request number which will again be a running serial number

A Particular WO will have one and only one Activity code against the asset number

Accounting classes will be attached to the assets in the Asset master screen. At the time of WO creation, the

Accounting class field will not be updatable at the time of the WO creation

Each Work order will contain a set of predefined operations. It will be defaulted if operations are defined against the

Activity in the Routing. Optionally the user can add and remove operations

Each operation will contain at least one resource and optionally materials/spares that needs to be issued from the

stores

The Work Order will go through the following stages during its entire life cycle:

 

 

At the time of creation the WO will be at the Draft stage. Work orders are checked and reviewed by the safety

Engineer /Supervisor

Safety Engineer might add a safety operation to the Work order by entering

o   in which area the risk is

o   what are the precaution to be taken (for instance putting mask)

o   Safety instruction list might be attached and printed with the work order

Safety Engineer / Supervisor will change the Work order status into Safe, then only the work can be conducted

 

Process For Releasing Of The Work Orders

To perform Resource and material transactions against the WO, the Supervisor will have to change the WO status to

Released. Transactions will be allowed only when the WO is in “Released” state.

In order to Release the Work Order, the WO needs to be necessarily in the "Safe" status (please refer to the

previous process on safety).

If maintenance routing exists for the particular asset Activity, then the operations and its corresponding

material/resources are defaulted from the routing details only and get imported into the WO upon saving. User can

however change/delete and add new operations based on his requirements.

If routing does not exist, the Planner will have to himself add the operations.

Against each operation, the planner will need to specify the materials required and the resource required for the

successful completion of the particular operation. These will be estimated values based on the Planners experience

and operation requirements. These materials/resources will be added in the structure shown in the above flowchart.

Upon releasing the WO, for OSP resources, a purchase requisition will be created which will contain reference to the

WO number and the resource will be charged directly against the WO upon receipt of the PO. For internal resources,

time will be charged manually.

Material will have to be issued from warehouse by the stores owner (discussed later)

 

Material Issue From The Shop Floor Against Work Orders

Description

The maintenance supervisor will first check the available on-hand quantity for the requested material. If the requisite

quantity doesn’t exist, the supervisor will change the WO type to "Material Shortage" and will raise purchase

requisitions for the procurement of that item.

Approach 1: If Maintenance and Stores are defined as separate Inventory Orgs

The Supervisor/planner will run two processes in succession:

Shop Floor Replenishment Process

Shop Floor Replenishment Import

These two processes will create Internal Requisitions for the required items and the convert these internal

requisitions into Internal Orders

The Stores in charge will Pick-Release these material and ship them to the Maintenance Inventory Organizations

Approach 2: If Maintenance and Stores are defined as the same Inventory Org

A separate Sub-inventory called Maintenance will be created for stocking the materials required for maintenance

The Maintenance supervisor will create a Move Order for bulk issue of the material from the stores and thereafter get

it approved by the department head.

Stores will receive the Move Order and will Transact the move order so that the material will be shifted to the

maintenance sub-inventory.

Thereafter the maintenance supervisor will issue those materials as and when required against the WO operations

using the One-Step Material Issue feature of eAM.

Every time material is issued against the WO, the Inventory evaluation account will get credited and the WIP material

account will get debited.

 

Note: To track Repairable Spares which have been repaired and miscellaneous receipt of the item is done in the

stores at 0 cost, a new item code could be generated using this logic: -1. This ‘-1’ will indicate that this item has been

repaired. Also it will not affect the cost of the same item in Inventory. This is however just a suggestion

 

Work Order Resource Transactions

Outside Processing (OSP) Resources

The user will receive the OSP item against the WO and the respective operation using the Receipts functionality in

Oracle Inventory against the OSP Purchase order

If the OSP item is a direct delivery item, no inspection will be required and the resource will be charged directly

against the operation.

However, if inspection is required for the OSP item, the user will have to go to the "Receiving Transactions" screen in

Oracle Inventory inspect the item. If the service is not acceptable, a Return to vendor transaction is done.

Once the service is accepted, it is delivered and the item gets charged against the Work Order.

Internal Resource Transactions

The planner will be opening the WO from the Self service page and will "Charge Time" against each of the resource

units. These resources could be labor or even equipments.

If the Resource is defined as "Costed" (and is associated to a fixed rate) the system will charge the equivalent

amount of the resource cost against the Work Order. Else the system will only charge the time for with the resource

had spent on the particular WO operation.

Resource Transaction through Oracle Time and Labor

This is done for internal resources of the type Labor. Herein the employees fill up the Time card from Oracle Time

and Labor model. While filling the time card, the employee mentions the total time spent with reference to the WO

and the operation.

Once the time card is approved, the maintenance supervisor runs the concurrent process "Import Time Card from

OTL" which charges the resource cost against the WO operation as a proportion to the employee's salary.

Whenever resource is charged against a Work Order, the resource absorption account gets credited and the WIP

resource cost gets debited.

 

Completion And Closing of Work Orders

As and when each operation is completed, the maintenance supervisor will open the WO and complete the

operations

Once equipment is operational, the WO status will be changed to “Completed”. After this, the equipment will be in

what is commonly referred to as "Trial-Run" phase. In case a problem in the equipment is reported during the trial

run, the supervisor will have to go back to the WO and un-complete the same in order to resume work.

After the trial run is completed successfully, or during the Inventory closing, the WO will have to be “Closed”.

 

Failure Analysis Of Assets

Whenever a breakdown/corrective maintenance WO is created, the Planner should associate an applicable failure

set to the same. This is required to analyze the failure breakdown history of the asset and helps in

planning/budgeting of the preventive maintenance schedules.

If an appropriate Failure set does not exist, the planner should go to the Failure Analysis and define the appropriate

failure codes. A failure set should comprise of the following codes:

 

Failure Code -> What kind of failure has occurred in the asset

Cause Code -> What is/are the possible reason/s for such a failure

Resolution Code ->  What could be the possible method/s to rectify the current failure

Once the failure set is defined, it should be associated with the WO. Failure sets need not be associated at the time

of WO creation. Ideally they should be associated to the WO at just before completing the same so that the exact

causes and resolutions are known and accurate data is fed into the system.

From time to time the following analysis could be done on the system for the failure of a particular asset:

 

Number of failures in a given period

Mean time between failures

Distribution of failures over Failure Codes

 

Maintenance Cost Analysis

Every WO needs to be associated with a set of accounts called the Accounting Class. The accounting class

generally defaults from the Asset (as defined in the asset master) and the same will be available for maintenance.

Accounting class contains different cost elements under the heads: Material, Resource, Equipment and each of their

overheads. Generally, only the cost elements Material and Resource are be tracked by organizations

Material and spares will be issued at the inventory cost from the inventory against the WO

OSP Purchase Requisition creation will be manual. OSP resources (outside labor, etc) are charged directly to the

WO based on their PO price upon receipt.

AMC (Annual Maintenance Contracts) are generally treated as OSP items

At any point of time, the total cost (and also the cost break-up) for any particular WO will be available

Also the total maintenance cost of any particular asset throughout its maintainable existence will be available.

Since asset hierarchies will be correctly defined, the total maintenance cost roll up of a particular parent asset

(including the child assets will also be available)

For major overhaul type of breakdown, the maintenance cost will be capitalized against the asset.

 

Preventive Maintenance Schedule Creation

To create the PM schedule, the planner might need to refer to the failure analysis of the asset over a period of time

to determine the frequency of PM and quantify the PM scheduling rules.

Once that is done, the PM planner will check whether a suitable PM schedule Set is available for the Asset or not. If

it is not available, the planner will have to go to the "PM Set name" form and define an appropriate schedule set

name to associate the PM schedule of the equipment with.

Thereafter the PM planner will have to define a particular schedule for the Asset's PM. While doing that the planner

will have to specify the following attributes:

a.     The Equipment name and the associated PM activity.

b.    Check the Default flag. This option has to be selected if PM WOs are to be generated for this equipment. There

could be only one active schedule for a particular set of Asset Number and Activity

c.     Scheduling Rules. Usually the rules should be scheduled in a manner that the Last Scheduled start date would

be used to Predict the next scheduled start date of the PM Work Order.

d.    If it is a Rule based PM schedule, then the Days interval needs to be given.

e.     If it is a meterized PM schedule, then meter information also needs to be furnished with the PM schedule.

Finally the Planner will enter the Last Service Information of the Asset Activity and save all the changes. The PM

schedule definition is now complete and it could be used for PM scheduling.

 

Preventive Maintenance Work Order Generation

There are two ways of generating PM Work orders.

 

Method 1: The planner runs the concurrent process "Generate Work Orders". The system will ask for a few

parameters out of which the End date is mandatory. This end date will be the final date till which the system will

generate the PM Work orders. The user can also streamline his choices by generating PM WOs only for a few

assets or for a department or even for a particular Asset area (as explained in the flow diagram).

Method2: This is a method by which the Planner gets to pick and choose which PM Work orders will be

implemented.

The planner first goes to the Maintenance Workbench. Using a few filter conditions, the planner will choose a few

assets for which he wants to forecast the Work Orders

The planner will then go to the "Forecast" and Run a simulation till a selected cut off date. The system fill forecast all

the PM WOs that should be generated for a particular asset over the time period using the rules defined in the

schedules.

The Planner will use these suggestions to either Implement those Work Orders or manually reschedule them. Thus

the PM Work orders will be generated.