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.
I. General Overview of eAM Business Cycle for any Maintenance Organization
II. Creation Of Work Requests
III. Creation Of Work Orders From Work Requests And Safety Procedures
IV. Process For Releasing Of The Work Orders
V. Material Issue From The Shop Floor Against Work Orders
VI. Work Order Resource Transactions
VII. Completion And Closing of Work Orders
VIII. Failure Analysis Of Assets
IX. Maintenance Cost Analysis
X. Preventive Maintenance Schedule Creation
XI. 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 doesnt
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:
o Shop Floor Replenishment Process
o 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
o 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
o If the OSP item is a direct delivery item, no inspection will be required and the resource will be charged directly against the operation.
o 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.
o Once the service is accepted, it is delivered and the item gets charged against the Work Order.
Internal Resource Transactions
o 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.
o 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
o 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.
o 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:

o Failure Code -> What kind of failure has occurred in the asset
o Cause Code -> What is/are the possible reason/s for such a failure
o 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:

o Number of failures in a given period
o Mean time between failures
o 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.
o 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
o 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.
o The Planner will use these suggestions to either Implement those Work Orders or manually reschedule them. Thus the PM Work orders
will be generated.