Enterprise Asset Management NEK

Željko ReljićProject Manager, NEK

Frane Kolanović Davor RunjakSenior Consultant, Oracle Consulting Consulting Manager, Oracle Consulting

Nuklearna Elektrarna Krško (NEK)Implementation of Oracle EBS and EAM system –BASIC COMPANY and PROJECT DATA

●Company: Nuklearna Elektrarna Krško

●Industry: nuclear generation of electrical energy

●Number of employees: >600

●Project: Implementation of Oracle EBS and EAM system

●Project start date: 2.7.2009

2

●Project start date: 2.7.2009

●Project GoLive planned date: 1.3.2011

●Implementation method: Application Implementation Method

(AIM), Conference Room Pilots (CRP) used

●Current project phase: Build

●Project team: NEK, Oracle Consulting, Osir, OptimIT...

Performance unit capability factor from year 2000-2008

Wano Atlanta center members

KRSKO NPP(NEK)

eAM will support NEK’s ERP strategy – how will it do this and what benefits are you likely to see?

●NEK Project goals:● New process considers NEK good practice and industry good practices (WANO, IAEA, INPO, EPRI)

● Long term IT solution to support continuous plant effort to improve plant safety and reliability as well as cost effectiveness of plant operation by having proper management tool

● To assure NEK personnel and subcontractor knowledge necessary for long term local support.

● To bring NPP specifics requirements in the future as standard● New acquisition important for NEK: Primavera

●NEK Project goals: requirements for maintenance management SW– Reactor safety, industrial safety, plant reliability and quality of work.

– User-friendly environment for planners, maintenance and operation.– User-friendly environment for planners, maintenance and operation.

– Human resources optimization.

– Follow-up functionality (work order statuses, users, time and dates).

– Equipment history of work performed, condition found, material used, measuring and testing equipment, procedures, human resources, failure analyses.

– New process considers NEK good practice and industry good practices (WANO, IAEA, INPO, EPRI).

– Legislation consideration.

– Work order and its permits – fully computer (e-documented) process (no written signings) and e-archiving

– Surveillance and repetitive tests should be performed by use of work order process.

– Preventive and repetitive activities should generate work orders and estimates future costs, human resources and material requirements.

Why is it important for NEK to have an enterprise software strategy in place?

●Reasons for EBS implementation– Existing applications upgrades & maintenance-Lack of professional IT-resources (even for

maintaining existing scope of Management Information System)

– New HW & SW technology

– New NEK processes (management & e-bussines). Number of additional requirements for new IT

solution.

– New business related legislations (EU)

– International Accounting Standard

●NEK expectation (enterprise software strategy) is Long term IT solution– Long term IT solution for the NEK, open and adaptable to the new requirements.

– Long term IT solution for the NEK, which can support continuous plant effort to improve plant safety and reliability as well as cost effectiveness of plant operation by having proper management tool .

– To assure NEK personnel and subcontractor knowledge of the product necessary for long term support.

What are you hoping to see from becoming a member of Oracle Enterprise

Asset Management (eAM) Customer Advisory Board?

●Feb. 2009-ORACLE PROPOSAL- “We hope NEK will join Oracle

in constructing a next generation vision of technology application in nuclear utilities.”

● May 2009-MEMORANDUM OF UNDERSTANDING

– Weekly Call with EAM Product Strategy group Oracle

– initiation Nuclear Power Generation Special Interest Group (NPG SIG) - www.NPGSIG.org

(Presented and accepted was a list of requirements which will be presented to eAM CAB (Customer Advisory

Board)

– NEK continuing participation in Health and Safety Feature Design (permits, isolations, locks and tags)

– NEK participation in eAM Customer Advisory Board

» Enhancement Priorities (a list of requirements )-voting» Enhancement Priorities (a list of requirements )-voting

» NEK Goal:To bring NPP specifics requirements in the future as standard solution

●NEK perspective on partnership with ORACLE – To implement IT solution around which we can to gather other NPPs

– It is NEK interest to supporting Oracle in gathering other users from industry. By this the NPG SIG would become more influent on development path of standard EBS(eAM) solution. We are sure, that many practices from nuclear industry would be helpful to other industries.

– It is NPG SIG interest to follow-up nuclear industry requirements in the future (like WANO, INPO, IAEA, EPRI, ..).

– Oracle Nuclear Interest Group can influent software development in direction to improve nuclear safety,

industrial safety, and reliability of the utilities that use Oracle products.

– Oracle asked NEK to become member of Fusion Asset Strategy Forum

NPGSIG members statistic

»More than 300 members

»More than 100 members from nuclear power plants (most of them

from the US)

»More than 100 members from companies which are strong connected

to nuclear power generation industry (Westinghouse, Areva, GE

energy, AMEC, …)

»More than 1000 visitors of www.nogsig.org web page from 64

countries all around the world

Nuklearna Elektrarna Krško (NEK)Implementation of Oracle EBS and EAM system –SCOPE 1/2

• Enterprise Asset Management (EAM)

• Asset Management

• Maintenance Budgeting

• Work Order Requests

• Work Order/Work Management

• EAM Cost Management

• Projects

• Project Costing

• Project Portfolio Analysis

• Project Management

• Procurement

• Purchasing

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• EAM supporting modules

• Bills of Material

• Cost Management

• Quality

• Work in Process

• Purchasing

• Sourcing

• Services Procurement

• Procurement Contracts

• iProcurement

...

Nuklearna Elektrarna Krško (NEK)Implementation of Oracle EBS and EAM system –SCOPE 2/2

• HRMS

• Approval Management Engine (AME)

• Business Intelligence Application Analytics

• Financial Analytics

• Procurement and Spending Analytics

• Inventory Management

• Inventory

• Financials

• General Ledger

• Payables

• Receivables

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• Procurement and Spending Analytics

• Project Analytics

• Receivables

• Cash Management

• Assets

Asset Lifecycle Management

BusinessModeling

CapitalPlan

Manage

Budget

Dispose

Decommission

Projects

Fixed Assets GL

SupplierPortals

AP

AR

Hyperion

Planning &Budgeting

Asset Lifecycle Concept

Agile (PDM)

10

Asset Lifecycle Management

Install

Design/Specify

Operate

Maintain

Construct/Procure

Manage

Procurement

Inventory

Siebel (CRM)

Time &Labor

Maintenance

AutoVueStellant(ECM)

Primavera

OBIEE

Integration Summary (60+ in R12)

Multiple Maintenance StrategiesC

onditio

nB

ased

Pre

ventive

System Identification

of Limit Violations

System Identification

of Limit Violations

Condition

Monitoring

Condition

Monitoring

Workflow-Driven

System Action

Workflow-Driven

System Action

Planned

Usage

Planned

Usage

ActualActual

Maintenance

Schedules

Maintenance

Schedules

12

Reactive

Pre

ventive

Unplanned Maint

Scheduling

Unplanned Maint

Scheduling

Maintenance

Request

Maintenance

Request

Operator Initiated

WO Req / Approval

Operator Initiated

WO Req / Approval

Maintenance

Forecast

Maintenance

Forecast

Actual

Usage

Actual

Usage

Estimated

Life

Estimated

Life

Asset Intensive Industries Maintenance

0%

10%

20%

30%

40%

50%

60%

Common Practice Best Practice

0%

10%

20%

30%

40%

50%

60%

13Respond

Oracle eAMApplication

Analyze

Oracle SensorEdge Server

Translate

OPC Server(or other standard)

EXAMPLE

Collect Data

Sensors Process ControlSystem

Pressure

Temp

0%Reactive Preventive Condition

Based

0%Reactive Preventive Condition

BasedSource: PWC Best Practices for Asset Intensive Industries

NEK - High Level Solution Architecture

NEK - Maintenance Generation Process

PM

Preventive MaintenanceSchedules

Modifications &

Engineering Change

Control

Manufacturersrecommendation

s

Maintenance

history analysis

Asset reliability

analysis

Asset Management

Strategy

EPRI Industry

OE asset

management

Corrective Maintenance

Control

Temporary Modifications

Work Management

Asset

observation

Asset condition

monitoring

Assetperformance

monitoring

Regulatory

requirements

PLIM & PLEX

Asset List

Asset Hierarchy

Asset Details

NEK - Maintenance Execution Process

ScheduleSchedulePlanPlan

Asset RecordAsset Record

CreateCreate

PM PlanPM Plan

PerformPerform

OutsourcedOutsourced

ServicesServices

PurchasedPurchased

MaterialsMaterials

InternalInternal

ResourcesResources

InventoryInventory

MaterialsMaterials

RebuildablesRebuildablesAssetAsset

HierarchyHierarchy

MetersMeters

BudgetingBudgeting PrimaveraPrimavera

Work OrdersWork Orders

eAMeAMIntelligenceIntelligence

Work OrderWork OrderWork OrderWork Order

CloseClose

Work OrderWork Order

Work RequestWork Request

ForecastingForecasting

Update/ReportUpdate/Report

Work OrderWork Order

ReleaseRelease

Work OrdersWork Orders

CapitalizeCapitalize

Work OrderWork OrderQualityQualityPlansPlans

Wireless eAMWireless eAM

PerformPerform

Asset/WOAsset/WO

AnalysisAnalysis

Work PermitsWork Permits

Work

Work Order List

Work Order Creation and

Update

Work Request Creation

Level Resources using Primavera P6

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eAM work orders, operations, resources and employee assignments get exported to Primavera –Resource Leveling in Primavera

Primavera Integration; or other scheduling

tools

Automatic Approval Process

Complex workflows can be developed using Oracle Workflow engine / AME

“Proper maintenance is essential to plant safety. As discussed in the regulatory analysis, there is

a clear link between effective maintenance and safety as it relates to such factors as the number

of transients and challenges to safety systems and the associated need for operability, availability,

and reliability of safety equipment. In addition, good maintenance is also important in providing

assurance that failures of other than safety-related structures, systems, and components (SSCs)

Nuclear Regulatory Commission (NRC)

NEK’s VisionIn terms of nuclear safety, operational stability and business performance, our aim is to be classified among the best functioning nuclear power plants in the world.

assurance that failures of other than safety-related structures, systems, and components (SSCs)

that could initiate or adversely affect a transient or accident are minimized. Minimizing challenges

to safety systems is consistent with the NRC's defense-in-depth philosophy. Maintenance is also

important to ensure that design assumptions and margins in the original design basis are

maintained and are not unacceptably degraded. Therefore, nuclear power plant maintenance is

clearly important in protecting public health and safety.”

NRC Statement on maintenance in regard to the maintenance rule (Regulatory Guide 1.160)