Use Oracle EAM effectively, turn Assets to Cash!
Managing assets is crucial for any business, especially for Oil Field service companies which are asset intensive where operational cost in asset management contributes to a substantial part of expenses. Even a 6-8 % saving on operational cost can make lot of difference.
Some of the pain areas we have come across in OFS companies are -
Ability to capture operational Cost at each work Order Level
Charging Labor cost
Accounting outside Job Processing against work orders
Performing Preventive Maintenance
Scheduling Maintenance based on Location
Performing Profit & Loss analysis at Asset Level
Oracle’s Enterprise Asset Management helps asset intensive companies to overcome these challenges. With the ability to structure and roll up cost at various levels provide the ability to perform the analysis at Country/Area/Asset level.
With the ability to define resource rates by Employee/Role, appropriate labor cost can be charged to each work order created for an Asset.
Outside Job processing usually gets accounted as expenses in Purchase Order and paid through Payables, tying Outside Job processing cost to a work order will ensure that all the cost related to an Asset/Work Order is captured and accounted against an Asset.
Preventive Maintenance is a key for operational efficiency, and the frequency at which we do the preventive maintenance has a greater role to play in overall life of an Asset. Maintaining records of last service dates and performing the next maintenance at appropriate time will help in performing timely maintenance and avoiding unnecessary maintenance. E.g. if an Asset is in service for two consecutive months and then out of service for one month, maintenance schedule should be adjusted to take one month of downtime in account and trigger the next work order accordingly. Considering downtime will help in reducing untimely & unnecessary maintenance. Another example of unnecessary maintenance would be if one has performed Engine Overhaul recently, there is no need to perform Engine routine maintenance within next 10 days even if the routine maintenance was due. Features provided in Oracle Enterprise Asset Management will help businesses to plan Preventive maintenance more efficiently.
To save travel time & cost it is important if we can plan all the maintenance in an area together. With the help of scheduling workbench an area supervisor can plan to perform all the work for a give location. Scheduler workbench gives Area manager the ability to see which all Assets have planned maintenance due in a given period so that they all can be combined and worked upon in a single visit.
The ultimate aim would be to evaluate how our Assets are performing on Year on Year basis. To do this we can look at our cost & revenues for each Asset, this will help us verifying our gross margins at an Asset level. Appropriate action (Overhaul/Scrap) can be taken once we Identify Assets which are costly to maintain. With Oracle Enterprise Asset Management integration with Oracle Projects one can have both cost & revenue information in Oracle projects, Gross Margins can easily be calculated at various levels (Country/ Area/Asset) and more appropriate Management decisions can be made.