Oracle

Enterprise Asset Management

and Oracle Asset Tracking Best Prac7ces

Madhuri Shah
Principal Product Manager
EBS Applica7ons Development
October 01, 2014

Safe Harbor Statement

The following is intended to outline our general product direc7on. It is intended for
informa7on purposes only, and may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or func7onality, and should not be relied upon
in making purchasing decisions. The development, release, and 7ming of any features or
func7onality described for Oracles products remains at the sole discre7on of Oracle.

Copyright 2014, Oracle and/or its aliates. All rights reserved. |

Program Agenda
1

ALM Overview

Customer Panel

Q & A

Copyright 2014, Oracle and/or its aliates. All rights reserved. |

Asset Lifecycle Management

Dispose

Business
Modeling

Decommission
Manage
Maintenance

Capital
Plan
Budget

Asset Lifecycle Management

Design/
Specify

Maintain
Operate

Install

Asset Tracking

Construct/
Procure

Install Base

Copyright 2014, Oracle and/or its aliates. All rights reserved. |

100+ Integration Points from ALM to EBS

Depreciation

Receiving

Purchasing

Inventory

Assets
&
Replacements

Transactions
Costs
Updates

MFG

Locations

Projects

Service

Product &
Project / Task,
Maint WC Asset
Service
Labor Costs
Request
Linked
Locations
to
Assets

Customers

Suppliers

Employees &
Skills

HR

ALM

PO Updates,
Catalogs

AP

Posting
Integration

Chart of
Accounts

GL

ONE
Set of
APIs

Orders
Depreciable
Assets

Discovery

Maintainable
Assets

FA

Property

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

Copyright 2014, Oracle and/or its aliates. All rights reserved. |

Enterprise Asset Management

Best Prac-ces and Lessons Learned

Alton Anderson
Senior Director
Business Process Improvement, Potash Corpora7on

Copyright 2014, Oracle and/or its aliates. All rights reserved. |

Enterprise Asset Management

Best Prac-ces and Lessons Learned

Hart Levy
Director
Consul7ng Services, Hitachi Consul7ng

Copyright 2014, Oracle and/or its aliates. All rights reserved. |

Oracle Asset Tracking

Best Prac-ces and Lessons Learned

Leon Curchack
Director
PricewaterhouseCoopers

Copyright 2014, Oracle and/or its aliates. All rights reserved. |

Aligning Asset
Management Business
Processes
The PotashCorp Experience
Alton Anderson
Senior Director,
Business Process Improvement
Alton.Anderson@potashcorp.com
PotashCorp.com

Forward-looking statements
This document contains forward-looking statements or forward-looking information (forward-looking statements). These statements can be identified by
expressions of belief, expectation or intention, as well as those statements that are not historical fact. These statements are based on certain factors and
assumptions including with respect to: foreign exchange rates, expected growth, results of operations, performance, business prospects and opportunities
and effective tax rates. While the company considers these factors and assumptions to be reasonable based on information currently available, they may
prove to be incorrect. Several factors could cause actual results or events to differ materially from those expressed in forward-looking statements including,
but not limited to the following: variations from our assumptions with respect to foreign exchange rates, expected growth, results of operations,
performance, business prospects and opportunities, and effective tax rates; risks and uncertainties related to operating and workforce changes made in
response to our industry and the markets we serve; changes in competitive pressures, including pricing pressures; risks and uncertainties related to our
international operations and assets; fluctuations in supply and demand in the fertilizer, sulfur, transportation and petrochemical markets; costs and
availability of transportation and distribution for our raw materials and products, including railcars and ocean freight; adverse or uncertain economic
conditions and changes in credit and financial markets; the results of sales contract negotiations within major markets; unexpected geological or
environmental conditions, including water inflows; economic and political uncertainty around the world; risks associated with natural gas and other hedging
activities; changes in capital markets; unexpected or adverse weather conditions; changes in currency and exchange rates; imprecision in reserve
estimates; adverse developments in new and pending legal proceedings or government investigations; acquisitions we may undertake; increases in the
price or reduced availability of the raw materials that we use; strikes or other forms of work stoppage or slowdowns; timing and impact of capital
expenditures; rates of return on, and the risks associated with, our investments and capital expenditures; changes in, and the effects of, government
policies and regulations; security risks related to our information technology systems; risks related to reputational loss; and earnings, and the decisions of
taxing authorities, which could affect our effective tax rates. Additional risks and uncertainties can be found in our Form 10-K for the fiscal year ended
December 31, 2013 under the captions Forward-Looking Statements and Item 1A Risk Factors and in our filings with the US Securities and
Exchange Commission and the Canadian provincial securities commissions. Forward-looking statements are given only as at the date of this release, and
the company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or
otherwise, except as required by law.

Agenda

PotashCorp Overview
EAM Initiative
Process
Technology
People

PotashCorp Overview

PotashCorp: Highlights
Worlds largest fertilizer company by capacity, producing the three primary crop
nutrients potash (K), phosphate (P) and nitrogen (N)
Key products are fertilizers which help provide the nutrients plants need to
grow

Also used to make livestock feed and industrial goods

Fertilizer is vital because it allows farmers to produce more crops on less land

Responsible for ~50% of the worlds total crop yield

Fertilizers feed plants, which help to feed animals and people

Our products are sold throughout the world, including North American and
growing Asian and South American markets
Guided by our Core Values and led by our dedicated people

Strive to play a key role in the global food solution while building value for all
stakeholders

Top Canadian Companies by Market Capitalization

PotashCorp Amongst the Top 20 Companies in Canada
US$ - Billions

$140.0
$120.0
$100.0
$80.0
$60.0
$40.0

As of September 17, 2014

Source: Bloomberg

PotashCorp

Husky

GWL

Brookfield

Thomson
Reuters

BCE

CP Rail

Manulife

TransCanada
Corp

CIBC

Valeant Phara

Enbridge

Imperial Oil

Cdn Natural Res

BMO

Suncor

CN Railway

Bank of Nova
Scotia

TD Bank

$0.0

RBC

$20.0

PotashCorp Overview

Worlds largest fertilizer producer by capacity;

#1 in potash and among the largest in nitrogen
and phosphate.!

Canadian potash operations and strategic

offshore investments position us to benefit from
growth markets.!

Global leader in potash; nutrient with highest

margins and significant barriers to entry.

World-class nitrogen and phosphate businesses

focused on historically more stable feed and
industrial markets.!

EAM Initiative

EAM The tools for Operations

EAM Tools are to be leveraged by the sites for continuous
improvement and corporate-wide spend management
Aligned
Business
Processes

Trained
Employees

Enabling
System

Continuous
Improvement!

EAM Initiative
- Process

As Is & To Be Business Process

Business Processes: Each of the 16 sites has a different
business process for
Maintenance, Inventory, Procurement and Finance

System 1

System 2

System 3

System 4

Financials & HR

System 5

System 6

EAM The tools for Operations

Business Processes: Aligned business processes for
Maintenance, Inventory, Procurement and Finance
for all sites

One single System that enables

alignment

Financial and HR

EAM Initiative
- Technology

Overview - Integration

Oracle Integration + Third Party Integration

Current EBS Modules
General
Ledger

Accounts
Payable

iProcurement

Assets

OPM

Projects

Procurement

PR, PO,
receipts,
vendors, items

Capital Spares

Payroll
Journals

Legacy HCM Systems

(People Soft, 3270, TT)
Payroll

Item
Catalogue

Project Data,
Status
Time and
Employee
Data

Procurement
EAM

Time Entry
Time and Employee Data
Additions,
Retirements
Work Order Journals

Inventory

Overview - Integration

Oracle Integration + Third Party Integration

Current EBS Modules

Payroll
Journals

New EBS Modules

General
Ledger

Accounts
Payable

iProcurement

Assets

OPM

Projects

Procurement

EAM

Legacy HCM Systems

(People Soft, 3270, TT)
Payroll
Time Entry

Inventory

Time and
Employee
Data

Overview - Integration

Oracle Integration + Third Party Integration

Current EBS Modules

Payroll
Journals

New EBS Modules

General
Ledger

Accounts
Payable

iProcurement

Assets

OPM

Projects

Procurement

EAM

Legacy HCM Systems

(People Soft, 3270, TT)
Payroll
Time Entry

Inventory

Time and
Employee
Data

Oracle Solutions at PotashCorp

EBS
Financials
Procurement
OPM

eAM
PA
PM

Viziya
Scheduler
Analytics
Mobile

Hitachi
Spare Parts
Workbench
BI Solutions
OBIEE/OBIA
EssBase

Primavera
People Soft
HR
Payroll

User Productivity
Kits

Partners
Viziya/Global PTM
STR
PwC
Impac
Hitachi
Terra Global
Oracle Consulting

EAM Initiative
- People

The training was organized and well-prepared

40%
59%

4 - Strongly Agree

98% of
par-cipants
agree
3 - Agree

The training material was organized and easy to

follow

37%
60%

4 - Strongly Agree

97% of
par-cipants
agree
3 - Agree

The content was relevant

and useful

37%
58%

4 - Strongly Agree

95% of
par-cipants
agree
3 - Agree

The objectives outlined at the

training session were covered

39%
60%

4 - Strongly Agree

99% of
par-cipants
agree
3 - Agree

The trainers offered and gave assistance as needed

46%
54%

4 - Strongly Agree

99% of
par-cipants
agree
3 - Agree

Overall Rating EAM Training

48% 52%

4 - Excellent

99% of
par-cipants
agree

3 - Average

The length of the training was. long, appropriate, or

short

86% of
par-cipants
agree

86%

3 - Too Long

2 - Appropriate

The trainers demonstrated a good

understanding of the material

47%
52%

4 - Strongly Agree

99% of
par-cipants
agree
3 - Agree

Statistics at the mid-point:

1984+ Employees Trained

32,744+ Hours Trained
28 Modules Covered
87% AJendance Rate

EAM Training Dashboard Overall Summary

Organizational Support and Continuous Improvement

Model
Tier 3
Lead supply chain
continuous improvement
efforts
Drive alignment of the
supply chain business
processes across all 16
sites
Provide EAM functional
support to site personnel

Continuous
Improvement
Tier 2
Alignment

Nutrient
Leads

Site Super
Users

Tier 1
Action

Site
Coaches

Self
Service

PCS
Intranet

EAM Aligning the Way We Do Business

Continuous Improvement
ALIGNMENT (PROCESS, SYSTEM AND PEOPLE)
Effective post go-live process improvement requires effective
coaching network to build a winning team
EAM News updates EAM community on changes and
enhancements

Thank you
Theres more online:
PotashCorp.com
Visit us online

Facebook.com/PotashCorp
Find us on Facebook

Twitter.com/PotashCorp
Follow us on Twitter

Asset Management
Oracle Open World 2014

October 2014

Better
Better

Asset Management Vision

33

| Copyright 2013 Hitachi Consulting

Design and Refine Process Improvement

Things can always get better..

34

| Copyright 2013 Hitachi Consulting

Design and Refine Process Improvement

And your competition knows that..

35

| Copyright 2013 Hitachi Consulting

What kind of issues do we usually find?

Work
incorrectly
prioritized

Lack of coordination with

Production- equipment or permit
not ready

Contractors not
available

Emergency work
interferes with
schedule

PM routines not
properly defined

Work
description not
clear

Work not
completed
Lack of
Preventive
Maintenance

PMs viewed as lower

priority or not adding
value

Inadequate job
plans

Excessive
headcount

Repairs not
completed

Excessive
downtime

Excessive
contractor
spend
Overtime to
complete work

Excessive cost

Planner/scheduler constantly
reworking schedule, not
enough time to plan

Mechanics looking for

parts

Parts not
available

Parts
expedited

Many Maintenance departments are caught in a vicious circle of reactivity

36

| Copyright 2013 Hitachi Consulting

Lack of job plan

standards

Design and Refine A Constant State of Improvement

37

| Copyright 2013 Hitachi Consulting

Maintenance, Reliability and Process Safety

Maintenance Effectiveness

Bad Actor Analysis

Mean Time Between Failure Analysis (MTBF)

Mean Time Between Repair (MTTR)

Failure Mode and Effects Analysis Effectiveness

Maintenance Efficiency

Work Order Backlog Analysis

Schedule Attainment

Paid hours vs. Completed Work orders

Maintenance Spend Analysis

Planning Efficiency
Process Safety, Integrity and Reliability

Equipment and Instrumentation Reliability

Maintenance Impact on Reliability

Condition Based Monitoring and Predictive Maintenance

Predictive Based Monitoring and Maintenance

38

| Copyright 2013 Hitachi Consulting

Asset Management
Maintenance and Reliability
Maintenance Effectiveness

Maintenance Efficiency

Reliability

How effective are our maintenance

activities and are we getting what we
expect out of them?

Is the Maintenance work being executed

properly?

How are we being proactive at extending

the life and availability of our
equipment?

Work Order Backlog Analysis

Following Failure Symptoms

Schedule Attainment

Identify Events that lead to failure

Paid hours vs. Completed Work orders

Production Breakdown Analysis

Maintenance Spend Analysis

Asset Diminishing Return

Maintenance MCRS

Performance based on capacity and

maintenance

Integrity and Process

Safety

How safe are our assets and what is

impacting the integrity?

Employee QA Tracking and Assignment

Bad Actor Analysis

Mean Time Between Failure Analysis
(MTBF)
Mean Time Between Repair (MTTR)
Failure Mode and Effects Analysis
Effectiveness

Planning Efficiency

39

| Copyright 2013 Hitachi Consulting

Review of Safety Compliance

Audit Safety Procedures
Integrated EHS Processes and Reporting
Measure downtime to Safety Causes

Design to Optimize ROI

Users of Oracle eAM/INV/SCM frequently overlook huge savings in these area as we tend to focus processes in
Because Charter already uses Oracle eAM/INV/SCM there are not huge savings in this area as there would be
silos.
for an initial implementation.
Factors that increase the cost systems support and infrastructure:
Factors that increase the cost systems support and infrastructure:

Maintaining license and support for legacy or disparate systems that could be replaced
Maintaining license and support for legacy or disparate systems
Maintaining integration into ERP from CMMS
Maintaining integration into ERP from CMMS
Redundant Data Entry
Redundant Data Entry
In most cases we do observe that there is substantial data entry performed by admins to support maintenance.
In Charters case we did notice that there is substantial data entry performed by admins to support maintenance.
Entering Work Requests
Entering
Work
OrdersWork Requests
Work Orders
Creating
PMs
Creating
Requisitions PMs
Requisitions
Receipts
Receipts
Invoice Approval.
Invoice Approval.

Ways to reach targets

Ways to reach targets

Improve Maintenance Methodology to include procedure definition, parts planning, integration supply chain processes.
Improve Maintenance planning to include procedure definition, parts planning, integration supply chain processes.

Current Efficiency and targeted cost savings is unclear as it seems the numbers Charter provided (52 hours per
year) may not be entirely accurate.
40

| Copyright 2013 Hitachi Consulting

Develop a Financial Model to Measure

EAM ROI Summary

41

| Copyright 2013 Hitachi Consulting

Oracle Technology Integration

Configure to your 5+ year strategy

Expand your solution footprint:
Integrated Operations Control Room
Integrated Event Tracking for Safety and Condition Reporting
Integrated LMS for QA and Training of personnel
Integrated KPIs for Maintenance and Production
Automated Alarm detection and management
Handheld and real time maintenance/logistics planning and scheduling
CBM input and planning through Oracle Collection Plans and APIs
Data collection, mining , usage and assessment.
Maximizing your technology solution to deliver your strategy

42

| Copyright 2013 Hitachi Consulting

www.pwc.com

ITAM - IT Asset Management:

Compliance, Efficiency
and Cost Benefit
with Oracle Asset Tracking

Leon Curchack

leon.curchack@us.pwc.com

Executive Summary
IT asset management (ITAM) is the set of business processes that join financial, contractual
and inventory functions to support life cycle management and strategic decision making for
the IT environment.
ITAM life cycle covers contract, procurement, deployment, maintenance, decommissioning
and retirement of hardware and software.
Oracle Asset Tracking helps achieve a single source of truth for IT enterprise assets for
financial regulatory compliance (FFIEC audit, PCI guidelines and the like) while reducing the
total cost of ownership.
Learn how Fundtech was able to provide easy tracking, visibility and control of dispersed IT
assets and maximized asset utilization and return on investment by automating Acquire to
Retire process.

PwC

44

About Fundtech
Fundtech is a leading provider of financial technology to banks and corporations of
all sizes in the Americas, EMEA, and Asia-Pacific.
Fundtech offers cost effective, secure and reliable:
Payment solutions to manage cash, process payments and transfer funds for financial
institutions and their business customers.
Financial messaging that initiate, process and support electronic messaging across a wide
range of settlement systems.
Global cash management solutions- a complete set of cash management services
through the Internet and other delivery channels for large, mid-tier and small financial
institutions
Public-facing payments products for processing credit cards, checks and ACH payments
online or at the point of sale.
PwC

45

About PwC

Recognized as Oracle Diamond level partner with 10

areas of Advanced Specializations and 24 General
Specializations

Oracles fastest growing partner

Global coverage and delivery capabilities with more

than 2,700+ Oracle specialists offering the full range
of Oracle services

Expanded Oracle solution and product coverage

Dedicated partner ownership to each industry and

solution of focus

Leading in class tools, templates and accelerators as

we continue to focus on quality and risk
management

Our team members are veterans of over 1,500

Oracle engagements

PwC

2012 Oracle Excellence Partner of the Year Award

Winner for:
Healthcare
Financial Services
Security/IdM
Industry Momentum
Worlds First Fusion
Go-Live HCM Implementation
Oracles Top Tier Globally Managed Partner and an
Oracle Diamond Partner
2013 Leader in Gartners MQ for Oracle
Implementation Services, Worldwide

2013 Customer Innovation Award for Security

Innovation in Fusion HCM, Procurement & Industry
46
Analytics

Challenges in IT Asset Management

Inconsistencies in application IT Asset management policyAcquire to Retire
processes are speadsheet based and difficult to follow.
Lack of comprehensive view of IT assets Fundtech invests in IT assets but has little
transparency on which, where, status or $ value.
High Asset Mobility vs. ComplianceLack of reliable location information on IT assets
severely limits ability to meet regulatory control and compliance requirements.
Disconnect between the financial and operational asset recordsFinancial fixed
asset records not directly linked to assets on the floor.

PwC

47

Streamlined ITAM Processes

Quote to
Purchase

Enters
Quotes

Receiving to
Tracking

Receive
Goods

Locate PO

Enter Receipt

Scan Packing
Slip

Deployment to
Retirement

Scan Serial
Number

Locate Item
Instance

Update Asset
Attributes

Locator/
Subinventory
Transfer

Fixed Asset &

Reporting

Asset Tracking Work Stream

Create Asset
from Receiving
Transaction

FA Transaction
from Inventory

Financial
Adjustment

Run
Depreciation

Select Items
in Store

Enter
Requisition
(Req)

Requisition
Gets
Approved

Creates PO

Print PO and
Send to
Vendor

Get Auto
Serial
Number

Print and
Label Goods

Inter-Org
Transfer

Retire Asset

FA Period
Close

FA Reporting

Inventory Structure and Cross-Org Flow

PwC

49

Quote to Purchase

Quote to Purchase

Receiving to Tracking

Auto Serial Number Generated

and Assigned

Receiving to Tracking

Serial Device
Number Name

Deployment to Retirement

Implementation Details Oracle Apps Footprint

Contracts
Service Level
Agreements

Purchasing
PO Receiving

Inventory
Transfers
Subinventory
Inter-Org
Misc. Issues/Receipts

EAM
Install/Remove
In-Service
Out-of-Service
Work Orders

Oracle Asset Tracking

Create Installed Base
Instances
Manage Usage

Projects
Manage Costs
Interface to Assets

Track Location
Update Attributes

Assets
Depreciate Assets

Create Assets
Update Asset
Location

HRMS
Employees

Process Retirements
Adjust Asset
Cost

Payables
Invoice Price
Variances

Currently
implemented scope
for Asset Tracking

Implementation Details Objectives and Details

2
Global
Asset
Repository
Asset Intelligence

Acquire
Requisition
PO

Commission

Receipt
Invoice

Operate /
Maintain
Movements

Retire /
Dispose

Financial
Management

No.

Objective

Solution Results

Streamline and automate entire Acquire to

Retire Process

Fundtech has a streamlined Acquire to Retire process with Oracle EBS

iProcurement, PO, INV, FA and OAT modules with minimum human efforts.

Create single source of truth and Improve

asset visibility with the global IT asset
repository

OBIEE as reporting platform with extensive reports and analytics increases

visibility into inventory/assets across the enterprise and helps to reduce excess
and obsolescence.

Enhance regulatory control and compliance

requirements IT Asset Management

OAT tracks all movement transaction histories initiated from Inventory

to provide audit trial through the asset lifecycle.

Link physical assets with financial records

OAT integrated tightly with Fixed Asset can link physical asset changes with
financial transactions, such as Addition, Transfer and Retirement.

Leading Practices for OAT ITAM Implementation

Standardize the Fixed Asset Policy internally
-

Oracle Asset Tracking helps you implement your policies by requiring an asset tag/serial number and
providing a foundation so that the process of capitalizing as asset could be automated.

An asset instance is created for each quantity received on a Purchase Order line against an item that has
been flagged as track-able and will be capitalized in FA book. The buyer would no longer have to guess
whether an asset is to be capitalized or not.

Data Conversion Strategy

-

As data is consolidated on a global scale, hold detailed design sessions on item numbers, attributes to be
tracked and standardized.

Location Mapping
-

Owning location can be different than the physical location for the same asset

The movement and disposal transactions are all logged in Oracle Asset Tracking and those changes are
synchronized with the Fixed Assets register.

The location level of the assets in Oracle Asset Tracking can be setup to be at a much lower level of detail
than in Fixed Assets.

Lessons Learned
Master Item Data
-

There are some key attributes on Item level to determine if this item is eligible for asset tracking.
However, some of the attributes are not updatable when there is on-hand quantity in Inventory. It would
be better to pre-set these attributes rather than re-do Master Item conversion in the implementation.

Inventory Organizations
-

Inventory Organization is the foundation of OAT. Take it into consideration and define the inventory
organizations well at the very beginning of the implementation is critical.

It is recommended that an extensible inventory organization structure should be developed to reduce

the re-work when rolling out the solution to other entities.

Evaluate using a scanning solution

-

A scanner solution provides an easier front end solution for user to easily track IT assets without rekeying internal and manufacturing serial numbers.

A simple label generator can be used to label equipment for subsequent auditing and tracking

Questions?

PwC

59

Appendix some additional process flows and

screens

PwC

60

Quote to Purchase

Approval Routing (AME)

Approver responses by login EBS

Or

Virtual Org

By using Email approval (Workflow Mailer)

Receiving to Tracking

Deployment to Retirement

Deployment to Retirement

Fixed Asset and Financial Reporting

Inventory Transaction

Receipt into Inventory

Misc. Issue out of Inventory

OAT Program
Create Assets: Interface
Inventory Transactions to Oracle
Assets

FA Program
Post Mass Additions

Update FA Location
Automatically
Interface Move Transactions to
Oracle Assets

Subinventory Transfer
Inter-Org Transfer

Post Mass Retirements

Fixed Asset and Financial Reporting

Copyright 2014, Oracle and/or its aliates. All rights reserved. |

67