EEN Typical EAM Scope Document

EAM Typical
Issued Aug. 7 ,2015
Scope Document
Contents
1
Terms and Definitions ........................................................................................................................... 5
Objectives.............................................................................................................................................. 5
Executive summary ............................................................................................................................... 5
Key Performance Indicators ................................................................................................................ 11

4.1
Dashboard ................................................................................................................................... 11
4.2
Managing Spend and Holding costs ............................................................................................ 12

Understand your inventory ................................................................................................. 12
Understand how you spend ................................................................................................ 13
4.3
Work Performance ...................................................................................................................... 13
4.4
Trending ...................................................................................................................................... 14
4.5
Asset Management ..................................................................................................................... 14
4.6
Understand your maintenance costs .......................................................................................... 15
Organizational Structure ..................................................................................................................... 17

5.1
Power Plant ................................................................................................................................. 18
5.2
Facility 1 ......................................................................................... Error! Bookmark not defined.
Departments interviewed; .................................................................................................................. 20

6.1
Power plant ................................................................................................................................. 20
6.2
Business processes as-is Facility 1....................................................................................................... 20

7.1
Maintenance as-is ....................................................................................................................... 21

SIPOC ................................................................................................................................... 21
Corrective Maintenance as-is ............................................................................................. 22
Preventive Maintenance as-is ............................................................................................. 23
7.2
Warehouse as-is .......................................................................................................................... 24
7.3
Procurement as-is ....................................................................................................................... 25
To-Be business process ....................................................................................................................... 27

8.1
Maintenance Processes .............................................................................................................. 27

SIPOC ................................................................................................................................... 27
1
EAM Typical
Issued Aug. 7 ,2015
Scope Document
Corrective Maintenance...................................................................................................... 29
Preventive Maintenance ..................................................................................................... 31
Suggested System Design.................................................................................................... 33
Reporting Requirements ..................................................................................................... 35
8.2
Safety .......................................................................................................................................... 36
SIPOC ................................................................................................................................... 36
Safety violation process / Tracking process / Walk Down .................................................. 37
Reporting requirements...................................................................................................... 38
8.3
Procurement Process .................................................................................................................. 39

SIPOC ................................................................................................................................... 39
Purchasing process.............................................................................................................. 39
Re-order Process ................................................................................................................. 40
8.3.3.1
Suggested ROP theory for: .............................................................................................. 41
8.3.3.2
Terms and definitions ..................................................................................................... 41
8.3.3.3
Reorder calculations instruction ..................................................................................... 41

Spend Management ............................................................................................................ 42
Reporting requirements...................................................................................................... 44
8.4
Warehousing ............................................................................................................................... 45
SIPOC ................................................................................................................................... 45
Material Management Plan ................................................................................................ 45
Inventory dispatch .............................................................................................................. 46
Inventory Reception............................................................................................................ 47
Inventory cycle count .......................................................................................................... 48
8.4.5.1
Cycle count process business requirements ................................................................... 49
Interfaces ............................................................................................................................................ 49
9.1
Option Portal Interface ............................................................................................................ 49
9.2
Option 2 ERP interface ............................................................................................................. 52
10
10.1
GAP Items........................................................................................................................................ 53
Spend Management .................................................................................................................... 53
EAM Typical
Issued Aug. 7 ,2015
Scope Document
10.2
Materials Management .............................................................................................................. 53
10.3
Planning....................................................................................................................................... 53
10.4
Maintenance procedures ............................................................................................................ 53
10.5
IT staff in Country........................................................................................................................ 53
11
Recommendation for GAP Items .................................................................................................... 53
11.1
Spend Management .................................................................................................................... 54
11.2
Materials Management .............................................................................................................. 54
11.3
Planning....................................................................................................................................... 54
11.4
Maintenance procedures ............................................................................................................ 54
11.5
IT staff in Country........................................................................................................................ 54
12
Recommendation on Users for EAM Solution ................................................................................ 54
12.1
Power Plant ................................................................................................................................. 55
12.2
13
13.1
Implementation .............................................................................................................................. 56
Concurrent implementation ....................................................................................................... 56
Executive summary ............................................................................................................. 56
Responsibilities ................................................................................................................... 57
13.1.2.1
s Responsibilities ........................................................................................................ 57
13.1.2.2
Energy Experts now responsibilities ........................................................................... 58
Deliverables......................................................................................................................... 58
Financial .............................................................................................................................. 59
13.1.4.1
Total Implementation costs: ...........................................................................................
13.1.4.2
Payment Schedule...........................................................................................................
13.1.4.3
Detailed Project cost breakdown ....................................................................................
High level project plan ........................................................... Error! Bookmark not defined.

13.2
Power Plant Only.............................................................................................................................

Responsibilities .......................................................................................................................
13.2.1.1
Clientss Responsibilities .................................................................................................
13.2.1.2
Energy Experts now responsibilities ...............................................................................
EAM Typical
Issued Aug. 7 ,2015
Scope Document
Deliverables............................................................................ Error! Bookmark not defined.

Financial ................................................................................. Error! Bookmark not defined.
13.2.3.1
Total implementation cost ............................................. Error! Bookmark not defined.
13.2.3.2
Payment schedule .......................................................... Error! Bookmark not defined.
High level updated project plan - Schedule ........................... Error! Bookmark not defined.
14
Optional two year support package................................................... Error! Bookmark not defined.
15
ANNEX 1 Data requirements ........................................................... Error! Bookmark not defined.
16
ANNEX 2 Requirements....................................................................................................................
16.1
Requirement categories..................................................................................................................
16.2
Requirements matrix ......................................................................................................................
17
Annex 3 - Implementation Team ........................................................................................................
18
Annex 4 EEN Terms and Conditions .................................................................................................
19
ANNEX 5 Example maintenance procedure .....................................................................................
20
Annex Combined Project Plan..........................................................................................................
21
Annex Power Plant only project plan ...............................................................................................
22
Annex Maintenance Procedure proposal details .............................................................................
23
Facility Detailed GAP ........................................................................................................................
EAM Typical
Issued Aug. 7 ,2015
Scope Document
Terms and Definitions
MTBF
PM
CM
ICM
Inst
EAM
Customization
Mid time between failure

Preventive Maintenance
Corrective Maintenance
Inspection based corrective maintenance
Inspections / predictive maintenance task
Enterprise Asset Management, system to manage asset lifecycle including
maintenance and all costs relative to maintaining assets in good operating
condition.
For Maximo customization would be modifying the default functionality by
programming in Java.
Configuration
Maximo is a very flexible program that allows extensive configuration, this is

modifying the out of the box functionality with built in tools. Configuration is
required for all Maximo implementations.
RAM
Reliability and maintenance
PRV
Plant replacement Value
Objectives
Client group engaged the services of Energy Experts Now with the direction to evaluate the viability of
IBM designed Maximo Enterprise Asset Management system for its power generation and Facility assets.
A key objectives of this exercise was to map out the processes at both locations and define if Maximo
could increase overall efficiency in the maintenance, inventory and purchasing areas . We also engaged
in evaluating the economic viability implementing an EAM system to help Clients executive management
better understand what value and return on investment an EAM software package could provide to their
organization.
Executive summary
An Enterprise Asset Management System (EAM) is an integral component of a vision to improve reliability
and maintenance performance (RAM) for existing assets, like the facility, or in the case of a new asset, like
the Power Plant, to setup maintenance, purchasing and inventory procedures and systems to ensure that
high mechanical availability for the asset is achieved at low cost. Most organizations that achieve
Industry Leader status have done so by migrating away from break-down type maintenance programs
to preventative & predictive type maintenance.
EAM Typical
Issued Aug. 7 ,2015
Scope Document
This transition is well supported by an EAM system which has the following main features:
1. Allows preventative maintenance program for every item of equipment to be planned in detail
and scheduled at a defined frequency;
2. Provides a tool for recording maintenance history of each item of equipment in detail;
3. Facilitates an easy to use work order system with detailed classification of reason and type of
repair including resource requirements (manpower and materials);
4. Facilitates identification of bad actors with low mean time between failures and high
maintenance costs;
5. Facilitates planning of major turn-around and inspection activities;
6. Facilitates access to information and enables generation of reports in desired formats;
7. Facilitates improved inventory control;
8. Facilitates budget development.
Based on information from Solomon Associates (1) who have been benchmarking refineries worldwide
since 1996, refiners target to move from low availability / high cost (Facility) to high availability / low cost
(Industry Leaders) in a sustainable manner as shown in the figure below which plots availability against
maintenance cost efficiency (US$ /plant replacement value - PRV):
EAM Typical
Issued Aug. 7 ,2015
Scope Document
The objective is migrating a Facility with low mechanical availability asset with high maintenance costs
to an Industry Leader in a sustainable manner. This requires application of proven procedures and
systems rather than simply cutting maintenance costs.
Industry leaders on average spend 2.1% of PRV in order to maintain 96-98% availability and this is done
through planning and focus on equipment reliability. The bottom quadrant of the industry spends 4.6%
of their PRV on maintenance with varying results in reliability. Statistics for the facility are as follows:
EAM Typical
Issued Aug. 7 ,2015
Scope Document
Over the 10 years of survey data from 1,000 sites by Solomon Associates, it is clearly shown that the gap
between the industry leaders (quartile 1) and quartile 4 have been increasing. The latest publication
shows that the industry leaders performed 2.4 times better then then average fourth quartile performers
in 2011. In 2012 that gap widened and the average top-quartile performance was 3 times better than
average fourth quartile performance (2).
The methodology of management of the facility is placing pressure on expenses for maintenance which is
focusing on the wrong side of the equation and leads to long term increases in overall costs. This
methodology will lead to 4th quartile performance (1).
EAM Typical
Issued Aug. 7 ,2015
Scope Document
The driver of maintenance cost is the condition and maintenance of the equipment. This is why a
preventive and reliability maintenance culture should be implemented in Clients company. This way
Client can apply the pressure appropriately to lower maintenance costs in the long term while significantly
increasing reliability. This is the methodology used in order to move from 4th quartile performance to 1st
quartile performance (1). We cannot stress strongly enough that there must be a culture change
regarding the way that maintenance is to be performed.
EAM Typical
Issued Aug. 7 ,2015
Scope Document
PRV% The projection of maintenance cost for Client with implementation of Maximo and change in
operating culture. This was projected in a best case, worse case, and Average on a yearly savings
basis.
Year
Total
Savings Projection
Best Case
Worse Case
Average
1
0.00 M
0.00 M
0.00 M
2
0.54 M
0.23 M
0.39 M
3
1.09 M
0.47 M
0.78 M
4
1.64 M
0.73 M
1.18 M
5
2.20 M
1.00 M
1.60 M
6
2.76 M
1.28 M
2.02 M
7
3.33 M
1.59 M
2.46 M
8
3.90 M
1.91 M
2.91 M
9
4.49 M
2.25 M
3.37 M
10
5.09 M
2.61 M
3.85 M
25.04 M
12.06 M
18.55 M
In the worst case scenario Client stands to reduce operating costs by USD$12.06M over a period of 10
years with the implementation of an EAM system and the foundations required for a change in culture at
the facility. In the best case scenario Client could save a total of USD$25M over a period of 10 years with
the implementation of Maximo.
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EAM Typical
Issued Aug. 7 ,2015
Scope Document
It is important to understand that moving to a first quartile performer is a multi-year endeavor and
Maximo is one of the tools that will be used as a foundation to achieving the performance desired.
However, we are sure by year 2 you will have paid the entire cost of the EAM in reduced maintenance
expenses.
Base foundation required:
Implementation of a culture change in Clients staff increasing the understanding of the
importance of equipment reliability and its impact on overall costs.
Development of an identification system (tags) and baseline maintenance procedures for all
equipment in the facility
Development of key reports that allow analysis of maintenance to fine tune required preventive
vs. corrective vs. asset replacement costs
Implementation of a system that coordinates maintenance activities to procurement,
warehousing, reliability, and finance.
The proposal in this document will cover these four critical areas as the first step in guiding Clients journey
to lowering overall costs and becoming a 1st quartile performer.
The power generation facility is benchmarked in a similar way and the best in class performers are so
The total cost of implementation for this project for both the facility and Power Plant to help ensure you
are able to achieve the up to 25M savings.
List of References:
(1) Lessons Learned from reliability and Maintenance Benchmarking What Does World-Class
Performance Look Like? 8th Maintenance Forum Presentation by Tom Svantesson;
(2) Insights achieve top quartile performance Uncover your buried treasure by Jeff Dudley
Key Performance Indicators
To be able to continually improve Client needs access to information that is relevant and actionable. To
do this we will be implementing a KPI structure that will instantly display the health of Clients business
processes that are in Maximo. This will allow visibility and accountability in the performance of
maintenance, operations, procurement and warehousing.
4.1 Dashboard
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EAM Typical
Issued Aug. 7 ,2015
Scope Document
Maximo has a graphical dashboard configurable by user to display the most relevant information for that
person. You can have this right on your computer screen no matter where you are.
4.2 Managing Spend and Holding costs

Understand your inventory
With Maximo we will deliver reports that will analyze Clients inventory holding to ensure the ability to
reduce stock. Below is an example of a real power plant client when they first started to manage their
inventory actively and resulted in the discovery that 67% of their inventory value never turned over in
5 years. This is just one of the available reports to manage your holdings.
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EAM Typical
Issued Aug. 7 ,2015
Scope Document
Understand how you spend

Manage your purchasing spend and understand how projecting demand, negotiating contracts, and
assigning preferred vendors reduces your overall purchasing costs.
Who 80% of your spend goes to in order to identify targets for negotiation
Establish negotiated prices per item and track purchases to understand your negotiated savings
vs realized savings.
Evaluate every item purchased by the company and know which ones are currently actively
managed to reduce spend and which ones have opportunities to reduce costs.
4.3 Work Performance

Understand your maintenance management at a glance. One indicator that will consider the efficiency of
your maintenance department considering how many times they have had to redo a job, the backlog they
have and their ability to plan maintenance. These are all leading indicators that have a direct impact on
the lagging indicator of corrective maintenance vs preventive. These KPIs screens can be monitored from
Dubai, Australia, anywhere you desire so top management can always be in the know.
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EAM Typical
Issued Aug. 7 ,2015
Scope Document
4.4 Trending
Understand how your preventive maintenance is impacting your overall corrective maintenance cost.
After analysis and implementation of new preventive maintenance you can trend and see the cost benefits
of the changes.
4.5 Asset Management

In one place understand your overall ability to maintain your assets functionality. This KPI will keep Client
up to date on how it is performing with asset reliability. This KPI will evaluate the MTBF, PM vs CM ratio
(PM %) and the total spend on Corrective maintenance.
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EAM Typical
Issued Aug. 7 ,2015
Scope Document
If problems are identified with the MTBF of assets you can drill down into the details which will display a
paretto chart that categorizes failures types by instance so Clients engineers understand what failures are
occurring, the detail of the failures, and come up with a preventive maintenance plan or corrective action
that will eliminate future failures.
4.6 Understand your maintenance costs

Have a clear understanding of what you have spent on. Know who you purchased it from, what equipment
it went to, which work order authorized it and what date it was executed. This is a prototype report that
developed for a client who operates a combined cycle gas turbine plant.
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EAM Typical
Scope Document
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Issued Aug. 7 ,2015
EAM Typical
Issued Aug. 7 ,2015
Scope Document
Organizational Structure
During our interview process EEN was supplied with the organizational charts for the power facility and
the facility. It is important to note that both organization structures are in a to-be state. There are several
positions in both organizational charts that not currently filled.
17
5.1 Power Plant
EAM Typical
Scope Document
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Issued Aug. 7 ,2015
5.2 Facility 1
EAM Typical
Scope Document
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Issued Aug. 7 ,2015
EAM Typical
Issued Aug. 7 ,2015
Scope Document
Departments interviewed;
6.1 Power plant

Management
Maintenance
Administration
Safety
6.2 Facility
Management
Maintenance
Purchasing
Warehousing
Safety
Business processes as-is Facility
While conducting the workshops with the key facility personnel to define their maintenance processes it
was requested that we do a re-engineering of the maintenance process in order to take full advantage of
the reliability and work management the system provides. It was also noted that the same process for
maintenance the power plant performs will be sufficient for the facility. Even though the detailed
instructions may change the process itself remains the same. This is a good synergy that can reduce
implementation costs of the EAM
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EAM Typical
Issued Aug. 7 ,2015
Scope Document
7.1 Maintenance as-is

The maintenance process for the facility does currently have an established system to document
corrective maintenance. The documentation on preventive maintenance is rudimentary and is entirely
based on paper. This provides a significant disadvantage when attempting to maintain or extend the life
of the assets. They currently do not possess the ability to identify common problems, causes, or
corrections. They do not have a reliable process (paper or otherwise) that will assist in determining
expenses for the maintenance tasks, labor required, or projecting future maintenance. This will
significantly lower the assets life cycle, decrease time between major expenses on maintenance, and
gradually increase the cost of maintenance without the ability to execute preventive measures to control
it.
SIPOC
The SIPOC demonstrates a significant reduction in outputs from the maintenance process. Without the
outputs or articles with information on the maintenance conducted it is not possible to control or improve
the maintenance process or the asset life cycle.
Definition of maintenance process
Supplier
Log Boock
Maintenance personnel
Input
Verbal Work Request
Process
Planning
21
Output
Customer
Completed work Authorization Operations
EAM Typical
Issued Aug. 7 ,2015
Scope Document
Corrective Maintenance as-is
Business Process Instructions

1 Submit work request
1.1 Verbal discussion in 8am meeting on what needs to be fixed
2 Validate Need
2.1 Verbal validation of requirement to fix
3 Safety
3.1 Discussion at 8am meeting of any safety requirements
4 Safety Plan
4.1 Verbal safety plan
5 Check for mats
Walk to warehouse to check if they have parts. Warehouse does a
manual check as the system is not reliable. This consists of looking at
all purchases and all dispatches to get a quantity on hand. Most of the
time personnel know where the parts are and look at the shelf and
5.1 take the parts.
6 Request Materials
If the materials needed are not in the warehouse the personnel (not
procurment) get quotes for the equipment and send to procurement.
It was mentioned there are significant difficulties in obtaining the
equipment requested as procurement will often purchase equipment
6.1 that does not meet the specs required.
7 Work Authorization
Operations gives a work authorization. This is the only document that
7.1 is retained.
8 Execute maintenance
They conduct maintenance on the asset. However there is no record
kept that identifies parts used, labor time, MTRS, MTBF or any other
8.1 article that is beyond a safety permit.
9 QA/QC
8.1 QA reviews the work
10 Ops Approval
Operations approves the work and closes out the permit. This is the
10.1 only article remaining of the work.
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EAM Typical
Issued Aug. 7 ,2015
Scope Document
Preventive Maintenance as-is
Start
Inspect
Equipment
Text
Start
Inspect Equipment
Pass/Fail
Pass
Pass/Fail
Update
Database
(excel)
Verbal report / Corrective

Update Database (excel)
CM Process
Fail
Register maintenance
Verbal report /
Corrective
End
CM
Process
Register
maintenance
End
23
Resources
Process starts
They take the appropriate equipment to do the
inspection and inspect the equipment to see if it
remains in acceptable range.
The technician confirms if the values are in range.
If the values are out of the acceptable range it is
communicated verbally.
If it passes they log it into an excel spreadsheet
Once verbal communication of failure is done they
start the corrective maintenance process as
defined in this document.
Once the problem is fixed the department
registers the failure and how it was resolved in an
excel spreadsheet.
process ends
EAM Typical
Issued Aug. 7 ,2015
Scope Document
7.2 Warehouse as-is

Re-ordering
o
There is no set process with input from maintenance on parts that need to be re-ordered.
Re-order is done based on warehouses analysis on historic consumption which is not best
practice. There should be an established process with extensive input from maintenance
in order to establish reliable re-order points. No information is sent to Dubai office to
assist in lowering overall procurement cost by forecasting demand.
There is no set process for inventory counts and was stated that the last count was 2 years ago.
With the information provided via excel of one warehouse the following was noted:
o
1.8 M receipts of items
1.1 M dispatch of items
295 k current balance
This reflects 100,000s of items missing or not accounted for in the current system based on the report
provided. This should be confirmed in detail prior to loading information in the new Maximo system.
With this information it is imperative to implement material management controls and processes.
24
EAM Typical
Scope Document
7.3 Procurement as-is
25
Issued Aug. 7 ,2015
EAM Typical
Issued Aug. 7 ,2015
Scope Document
Start
MRF
Step
Description
Start
MRF
Department
head approval
End
No
Department head
approval
Yes
Exist in inventory
Exist in
inventory
Dispatch
Yes
Dispatch
No
Supply Chain
Manager
No
Yes
International
No
Yes
Dubai
Sourcing
Quote
Require Owner
Approval?
No
Yes
GM Financial
approval
Owner Approval
Yes
If the item exist in inventory the

warehouse manager dispatches it and
keeps a hard copy that is signed on file.
If it does not exist the request form

Supply Chain Manager goes to the supply manager to create a
purchase requisition.
The general manager sees the
GM Technical approval requisitions and gives technical
approval.
Procurement checks if he can source it
International
locally.
If procurement can not source locally
Dubai Sourcing
the PR is submitted to the office in
Dubai.
Procurement executes the quotation
Quote
process.
If it local and over 10,000 or
Require Owner
international and over 50,000 it
Approval?
requires owner approval.
Owner Approval
GM seeks owners approval.
If owner approval is not required the
GM Financial approval
GM approves the purchase request.
Procurement executes the PO with the
Execute PO
supplier.
End
No
Yes
GM Technical
approval
Technician fills out and submits a

materials request
Technician requests approval from his
supervisor.
Technician goes to inventory /
warehouse. Warehouse manager
checks to see if they have it in stock.
Yes
Execute PO
End
26
EAM Typical
Issued Aug. 7 ,2015
Scope Document
To-Be business process
8.1 Maintenance Processes

Workshops were conducted to ensure the implementation of a maintenance process that is:
Organized
Provides data for reliability
Provides detailed historical trending of costs
Can be continually improved
The base maintenance process defined has clear communication and responsibilities and is bench marked
in order to identify bottle necks of the process. Beyond the process stand point there is detailed
information for the work being conducted which will allow reporting that ensures that maintenance
expenses are minimized and future maintenance costs are controlled as the asset ages. This preventive
maintenance process will allow Clients group to maximizes their maintenance investments and ensure
conformance according to the categories below.
SIPOC
The SIPOC exercise was conducted to define the different types of processes executed within the
maintenance department of the power plant. It established the processes to be mapped, important
inputs to start each process and expected outputs of the processes. It also aided in identifying additional
interview requirements along with assisting in defining licensing requirements for the solution. This is to
be considered the total scope of processes that were defined for maintenance.
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EAM Typical
Issued Aug. 7 ,2015
Scope Document
Definition of maintenance process

Supplier
System PM Generation
Operations
Maintenance personnel
Service provider
Marsirs (GE turbine program)
Managers
D.C.S
Third Party
Safety Manager
Input
CM Work Order
Work Request
PCMS Results
PM Work Order
Equivalent operation hours
Fired hours
Inspection Results
Deferred maintenance Report
Heat Rate
Trip
Alarms
Inspection work order
Spare Parts Request
Process
Planning
28
Output
Approved Work order
Completed Work Order
Scheduled work order
Purchase Request
Costs - labor/parts
Non-complete WO
Lockout Tag out
Canceled wo
Deferred work order
Inventory request
Incident report
Safety Inspection Request
Condition Report
Meter Reading
Adjusted PM schedule
Safety procedures
Technical advisor request
Closed work order
Customer
Operations
Maintenance
Purchasing
Inventory
PCMS
Warehouse
Third party (auditor / insurance)
Owner
Plant manager
Systems - EAM and ERP
Medical services
Human Resources
EAM Typical
Scope Document
29
Issued Aug. 7 ,2015
EAM Typical
Issued Aug. 7 ,2015
Scope Document
0 High Priority Off hour

0.1 Operations will call in maintenance personnel to the site bypassing the planning step.
1 Submit work request
1.1 Requester defines what craft is required
1.2 Requester inputs detailed description of problem
1.3 Requester fills out appropriate failure class
1.4 Requester will ensure the Work Order is not a duplicate
1.5 Requester sets priority of the work
2 Evaluate Work Request
2.1 Planner Checks to ensure no duplicates
2.2 Planner confirms the craft required
2.3 Planner sets priority
2.4 Planner ensures work needs to be done
2.5 Planner coordinates time of work with operations and maintenance
2.6 The planner will verify the parts for the maintenance with maint supervisor.
3 Cancel work order
4 Parts available
4.2 Planner will verify Tools are available
4.3 Planner will verify if third party services are available
4.4 Planner will coordinate with Safety and verify safety plan
5 Procure Items
6 Dispatch parts sub process (process and requirements under inventory)
7 preparing planning
7.1 Goes to inventory and gets dispatch of parts
7.2 Assign resource (individual) who will perform the work
7.3 Retrieves tools required for the work
7.4 Supervisor will assign tasks to fix the problem (if there are additional tasks)
8 Safety Evaluation
8.1 Assigns Lock-out tag out
8.2 Assigns hazards
8.3 Assigns hazardous materials
8.4 Assigns safety plan
9 Work Authorization
9.1 Confirms with safety the needs of the work, Conducts all safety actions required by operations
9.2 Switches to secondary equipment / activates bypass etc. as required.
9.3 Gives permission to begin work
10 Execute work
10.1 Record time spent
10.2 Record parts used
10.3 Return excess parts
10.4 Assign Failure code
10.5 record how the problem was corrected
11 Approved with issue. This is used in the case the equipment is operational however there are parameters need
11.1 to
be modified
in the
future
for optimal
If the
maintenance
is not
acceptable
andperformance.
can not be corrected immediately operations will set the status to re11.2 work and maintenance personnel will fix
11.3 Approved
11.4 Report breakdown time and how it affected the power plant
12 administrative close
12.1 Planner verifies work order to ensure time spent is correct
12.2 planner verifies that dispatches were made and material was returned
12.3 Planner verifies tools were returned
12.4 Planner verifies all other administrative actions were complete
13 Rework
13.1 Changes status to rework
13.2 Record reason for rework
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EAM Typical
Scope Document
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Issued Aug. 7 ,2015
EAM Typical
Issued Aug. 7 ,2015
Scope Document
1
1.1
2
2.1
2.2
2.3
2.4
3
Business Process Instructions

Verify Trades
Planner analyzes the work to be done and verifies the trades
Parts Available
The planner will verify if the parts are available for the maintenance
Planner will verify Tools are available
Planner will verify if third party services are available
Planner will coordinate with Safety and verify safety plan
PR/PO Process
3.1 Inventory will follow up with the PR/PO for parts generated for the preventive maintenance.
3.2 Dispatch parts sub process (process and requirements under inventory)
4 Schedule Labor
Planner coordinates maintenance with supervisor and operations to schedule start and end time of
4.1 each PM to be conducted.
5 Preparing planning
Maintenance worker verifies everything needed is available. Gets parts ready, gets tools, ensures
5.2 brings third party if required, informs safety as required.
6 Permit to work
6.1 Confirms with safety the needs of the work.
6.2 Conducts all safety actions required by operations
6.3 Switches to secondary equipment / activates bypass etc. as required.
6.4 Gives permission to begin work
7 Conduct Maintenance
7.1 Record time spent
7.2 Record parts used tools, improvements and future modifications
7.3 Return excess parts
7.4 Follow and record adherence to the maintenance procedure
8 Pass test
If the maintenance is not acceptable and can not be corrected immediately operations will set the
8.2 status to re-work and maintenance personnel will fix
Approved with issue. This is used in the case the equipment is operational however there are
8.1 parameters need to be modified in the future for optimal performance.
8.3 Approved
9 administrative close
9.1 Planner verifies work order to ensure time spent is correct
9.2 planner verifies that dispatches were made and material was returned
9.3 Planner verifies tools were returned
9.4 Planner verifies all other administrative actions were complete
32
Suggested System Design
EAM Typical
Scope Document
33
Issued Aug. 7 ,2015
EAM Typical
Issued Aug. 7 ,2015
Scope Document
Text
Initialize Work flow
Type of WO?
Planner Group Time based

escalation
Maintenance Sup. Time based

escalation
Data check and validation. Parts
exist? time scheduled? labor
assigned?
Safety Group
Maintenance Time Base

Escalation
Generate PR
Long Description
When a user or the system creates a work order it will start the workflow process. The workflow
process will check to ensure the minimum fields are filled out before letting the user proceed.
The system will evaluate the type of work order so it routes to the correct process. Critical work orders
in off hours are handled directly between operations and maintenance without the planner as the
planner is not available after working hours.
The work order is routed to the planner and the status is now PLAN. The planner conducts his part of
the business process and clicks "route workflow" when he is complete. Workorders which have a predetermined time to be completed will have an escalation 1 day, 12 hours, and 6 hours to re-notify the
planner. If the work order is still in status PLAN and there is only 3 hours left to execute the work the
work order will escalate and assign itself to the maintenance manager and send an email notification
to the plant manager, maintenance manager, and planner of the action.
This step is to route the work order directly to maintenance in the case of emergency maintenance
after hours. The maintenance person will fill out the appropriate fields in the work order and route it.
After the planner believes he has finished his duties the system will check the minimum data
requirements. If they have not been filled out the system will warn the planner and request he fill out
the data required from this step of the process. If it meets all the requirements then the planner will
hit "route workflow" and it will automatically change the status to in progress and assign the next steps
of the process.
Safety will have the task of assigning hazardous materials, precautions, and safety plan to the work
order.
Work order is assigned to maintenance and the status has already been changed to in progress. The
parts in the wearhous are already automatically reserved and confirmed as available. Maintenance
person will verfy the parts (go to warehouse and sperate them), gather his tools, and confer with safety.
Once his process is done he will hit the route work flow button and it will automatically go to
operations.
In the case the the warehouse is out of parts for the work order it will place a reserve in the warehouse,
automatically create a PR with priority based on the work order priority and route it for approval. It will
also send an email to the planner and warehouse personnel to inform them of the generated pr.
Once the safety plans is applied to the work order AND there has been a dispatch of parts or tools (if
required) and maintenance says they are ready tos tart, the work order will automatically route to
Operations Time based escalation
operations with the status of WAOPP. Operations will then print out a report from the work order that
will serve as work authorization. Once this is done the opeartor will press the "route workflow" button.
Maintenance
At this point maintenance conducts their process. Before this ends they must input the hours they
spent and return excess materials to the warehouse.
Dispatch Process
This is a sub process that is covered under inventory.
Operations acceptance
Planner Admin close
Once maintenance has finished the work. Logged their time, and returned their parts they will route
the work order for approval of operations. At this pint the work order will automatically change its
status to waiting operations acceptance.
If operations accepts the the work order it will be in a status of COMP this means the work is finished,
parts have been returned, and operations have accepted. At this point the planner reviews the work
order to ensure any documentation (attachments) is attached and information is correct (ex.
Maintenance person did not put 10 hours to lubricate a valve). Once this is done the work order will be
automatically changed to the status of closed.
END
Insp?
If it is an inspection work order it will route to an inspection process to evaluate a different set of data.
In Range
They system will evaluate to ensure the inspection data is filled out.
Safety Plan?
Generate Work Order
The system will check to ensure there is a safety plan on the work order. If not it will warn the user and
route back to the safety step.
If the inspection data is not withing acceptable tolerance levels the system will generate a follow up
(child) work order with pre-defined corrective actions. This work order will be routed to the Planner in
the status of PLAN. The work order type will be ICM (inspection based corrective maintenance)
34
EAM Typical
Scope Document
Base Report
Base Report
KPI
Base Report
Base Report
Base Report
Base Report
Graph
KPI
Base Report
Base Report
Base Report
KPI
Base Report
Report Category
Base Report
Base Report
Base Report
Base Report
Work request remaining
Unscheduled downtime and scheduled

Reworks %
Work Performance
Man hours overtime
PM vs CM costs
Work Requested and Work Orders
Inspection results
Maintenance trends
Asset lifecycle
Work Order quick report

Work order long report
Process performance
Estimated vs Actual
Backlog
Report
MTBF
MTRS
Planned vs. Unplanned
Safety Compliance
Overall work management performance

Overtime man hours
Benchmark the costs of Pm's vs the cost of cm's including vendor man hours
Count of work orders, count of work requests, count of canceled
CM work orders that require downtime will be considered as unscheduled. Other
work orders will be considered as scheduled.
Amount of work orders that had to be done again
Amount of work requests that have not been either converted to work orders or
canceled.
Will group by asset the results of inspection readings
Trending of the type of maintenance conducted over time

Cost to maintain vs cost to replace
Short form work order base information

Full work order
Benchmarking each step of the process

Benchmarking planning ability
Unperformed maintenance
Information
Counts time between downtimes of the asset.
Counts time between down to up
total planned maintenance vs unplanned (cm)
Total safety vs total WO
Issued Aug. 7 ,2015
sum of work orders in request status
Allows you to understand the backlog of requests
Sum of downtime induced by cm work orders and sum of downtime induced by PM work orders Understanding impact of CM on overall equipment availability
Sum of closed work orders / sum of work orders in rework
Allows you to identify why rework is happening
base data
type and purpose
Asset up starts a timer asset down stops the timer. The average is MTBF
Paretto by Asset and by asset group/type
Asset down starts timer and asset up stops timer. The average is MTRS
Paretto by Asset and by asset group/type
It will group PM and inspections in one group and CM, ICM in another
Pie chart in $$ and man hours
Will evaluate the safety plans vs work orders and give a %
This will be a 1/0 report if 100% 1 and if not 100% 0. If 0 it will display the report
This report will be by TYPE (pm, cm, inspection, inspection based corrective) and the
Will evaluate all maintenance that have not been performed by their estimated finish date. data will be man hours required to complete the maintenance.
This will be a pareto chart in Hours by process step (13 steps) and priority of work.
This can be used in the future to define acceptable times based on type of work. It
This report will display how long it took each person in the process to complete their part
will also allow you to compare results if they is a process or instruction change. This
This report will look at parts and labor assigned to work order and compare to actual parts
Report will be in KPI format (green, yellow, Red) parameters of variance will be
This will pick the short description fields of the tasks in the work order which will display the
name of the task and a reference to the manual. This report will also display how it is assigned
to, hours scheduled, estimated start/complete, target start/complete, and all safety
Base Report
This will display the long description (full detailed procedure/instruction) of the work that will Base Report
This report is a graph report with a line for each set of data to show trending over
count and cost of PM, CM, ICM, Inspection reports
time and understand the financial implications of increasing any aspect of
Sum of cost of PM and CM workorder cost yearly vs replacement cost.
KPI red green yellow for assets.
IN maximo there are fields of the values of inspections the report will display the historical displays inspection results and quantity of CM work orders produced based on
readings.
results.
this is a weighted kpi consisting of estimated vs actual, backlog, and CM's, process
performance. Each of these will be assigned a weighted value to produce a single KPI that will This will be a gauge (red, green, yellow) report for the overall health of work
quickly identify the overall health of work performance.
performance.
System will check let them define overitme hours and display cost and time
this will guage overtime expense per work order
sum of CM work orders costs / sum of PM work orders costs
Allow understanding of PM orders reduction of cost
SUM count of work orders in request status and sum of work orders in all other statuses except canceled,
Allows to and
understand
count ofthe
canceled.
how many work requests are not converted to work orders
Reporting Requirements
Under the reporting requirements we are not listing the base reports that can be extracted easily from the system (work order list by type, by
date, by person etc). We are listing non-standard reports and kpis which will require development and/or have a significant impact on the ability
of your organization to continually improve and increase the ROI of the program.
Base Report
35
EAM Typical
Issued Aug. 7 ,2015
Scope Document
8.2 Safety
SIPOC
Supplier
Input
All internal departments Inspection
Vendor
Violation
CAR
NCR
Report (verbal or written)
Safety Walk downs
Work Order
Unsafe condition
Unsafe Act
Equipment inspection
Process
Safety Walk down
Tracking Process
Safety Plan
36
Output
Violation
CAR
NCR
Accident/incident Report
Safety Plan
Medical Report
Observation
Customer
Violator
Plant Manager
Insurance Company
Owner
Emergency services
EAM Typical
Issued Aug. 7 ,2015
Scope Document
Safety violation process / Tracking process / Walk Down
Start
Safety W alk
down
Verify
Document
Short Description
Start
Inspect
W orkplace
Safety Walk down
pass/fail
Verify Document
Inspect Workplace
Pass
Long Description
Process starts with the generation of a safety walk
down or a report of unsafe condition.
Safety Verifies that it has the correct document for the
safety inspection.
Safety walk down is conducted
Fail
pass/fail
Violation
Violation
Corrected
Yes
Corrected
No
CAR
Corrected
CAR
Corrected
Determination if there is a safety violation. If there is

safety will create a follow up work order.
Safety creates the follow up work order and inputs the
class and code of the safety violation. The work order
is a follow up work order to the inspections for
tracking purposes.
Safety will return to review if the violation is
corrected.
If safety determines the violation still persists they
will change the Violation work order to a status of a
CAR (corrective action report). They will detail the
corrective action required.
Safety will return to review if the CAR is corrected.
If the CAR is not corrective safety will move the status

of the work order to NCR (non-conformity report).
They will create an follow up work order that is input
NCR
to the CM process for our staff to correct.
The NCR will follow the Corrective Maintenance work
Correct Failure / CM WO process order process for resolution.
End
Yes
No
NCR
Correct
Failure / CM
W O process
End
37
EAM Typical
Base Report
Base Report
Base Report
Base Report
Base Report
Base Report
Report Category
MSDS Tracking
Violation / CAR / NCR report
Accident /incident report
Inspection Compliance
Safety violation %
Tracking Report
Report
all MSDS number for items used in the plant
physical report for violation types
Violations by osha, ansi, or haccp reference Types of violations
Employee cert report
Overall Safety Performance
Safety Certifications per employee by expiration date
Incidents over time
Inspections scheduled vs executed
Violations per walk down
Violation to NCR
Information
Safety incidents / walk downs / Violations - Weighted value to be defined
List of MSDS items on site
Sum of type of violations

Long description of the work order where the details of the violation will be placed, Failure class and code where the type of
violation will be listed. Area for safety and violator to sign and acknowledge the report.
list of employees with safety certifications
Count of incidents over time by hours and type
Sum of inspections completed by estimated finish date vs sum of work orders open past estimated finish date.
Sum of violation vs inspections
Sum of status Violation, CAR, NCR
base data
Understand overall safety of the site
Historical report for benchmarking

Ensure staff is up to date on safety training, allows
scheduling of future safety training.
Allows safety to view the type of violations that occur
and implement training to lower the violations.
Physical register of the violation for administrative or
legal purposes.
Can take precautions based on MSDS data of items used
at site.
lets you understand the backlog of safety work.
Displays the overall safety compliance of the site.
type and purpose

Tracking from safety walk down all the way to issuance
of NCR.
Issued Aug. 7 ,2015
Base Report
Safety Performance
Scope Document
Base Report
Reporting requirements
KPI
38
EAM Typical
Issued Aug. 7 ,2015
Scope Document
8.3 Procurement Process

A good procurement process is based on knowledge of the needs for the company. This is based on
historical trends and input from SMEs of each technical area. In order to avoid many of the pitfalls of
procurement at minimum a purchasing process should contain:
Vendor evaluation process
Re-order Process
Purchasing process
Procurement should be in step with warehousing in order to insure that the correct parts are ordered
every time. We highly suggest that the procurement for Client be a consolidated process with
representatives in all facilities. We will include a base profile and structure of the personnel required to
ensure procurement lowers costs, is accurate, and timely.
SIPOC
Definition of purchasing processes
Supplier
Work Order
Maintenance
Inventory
Administration
Laboratory
Operations
Safety
Clinic
Operator
Input
Purchase Request
Purchase Order
Material Request form
Restock request
Approved purchase request
Vendor evaluation form
Item Request
Technical Advisor Request
Process
Purchase request process
purchase order process
vendor inclusion process
Item Inclusion process
Output
Item request
Approved Purchase order
Rejected purchase request
Canceled purchase order
Rejected purchase request
Canceled purchase Request
Approved purchase request
Approved vendor
Approved Item
Justification for purchase
Turn around time report
Customer
Vendor
Maintenance
Warehouse
Purchasing Approvers
Inventory
operation
Purchasing process
Due to the structure of the company we will recommend the following approval levels. This process
greatly depends on the warehouse management process and clear communication with asset
maintenance requirements. This process is automated, it forwards the purchase requisition and purchase
order to the relevant parties as well as checking the status of inventory prior to allowing a request to be
processed. This will significantly reduce the procurement time for Client and reduce procurement costs.
39
EAM Typical
Issued Aug. 7 ,2015
Scope Document
Start
In inventory
Item Exists
Item Creation Process
Restock or New?
In country or external?
Standing Po?
Quotation Process
Technical Approval
Committee?
Financial Approval
Committee approval
PR Approved Generate PO
End
Start of the process

System will check if the item has balance
equal or greater then the request in
inventory. If it does it will not allow the
creation of a purchase request for the
item.
System will check if the item exists. If it
does not exist the system will create a
request to create an item.
Sub process to create items
Checks to see if they item has a reorder
point or if it is a non-stock item
Checks to see if it is an in country or
external purchase.
Checks to see if there is a standing po or
contract for the item.
User gets 3 quotes for the item.
PR gets routed to the original requester for
approval of the quote/spec of the item.
Checks to see if PR requires committee
approval.
System routes the requisition to the
appropriate financial approver.
System routes the PR to all in the
committee for approval.
Once the system sees all approvals it
automatically creates a PO.
Finishes the process
Re-order Process
There is currently no documented re-order process for Client in their facilities. This leads to overstocking
materials not required to conduct maintenance and operations of either facility. Management of reorders and inventory is a critical aspect to spend management which will allow Client to significantly
reduce their spend.
40
EAM Typical
Issued Aug. 7 ,2015
Scope Document
8.3.3.1
Suggested ROP theory for Client:
We recommend that Client start with a periodic re-ordering schedule before moving fully to perpetual
reordering. This is because we believe Client must first establish a clean history to compare with
maintenance projections in order to fully move to perpetual re-ordering without risk.
8.3.3.2
Terms and definitions
L = Lead-time
YC = Average yearly Consumption
FD= warehouse demand
EOQ = Economic Reorder quantity
ROC=Re order cycles per year
ROP = Reorder points
SS = Safety stock
8.3.3.3
Reorder calculations instruction
Yearly consumption at warehouse is estimated to be 144 a year for an item and this warehouse will run
24 re-orders in a 1 year period. The lead time from the vendor to the warehouse is of 2 re-order cycles (1
month in this case). Every time they run re-order the stock will replenish up to the ROP (18) + 6 for a total
of 24 in total stock or 2 months of inventory on hand for this item according to consumption. The
warehouse should seldom be below the 18 in stock as we will be replenishing its usage every two weeks.
YC
144
ROC
24
Leadtime
EOQ
ROP
18
41
EAM Typical
Issued Aug. 7 ,2015
Scope Document
SS
With this methodology there are a few areas where we can benchmark that will be beneficial for Client.
For example:
a. If the warehouse has a quantity higher than EOQ + ROP we will be able to identify that as
excess stock to adjust the re-order process.
b. If the warehouse goes over 2 cycles without having to execute a re-order on certain items
we are able to flag this item for review and adjustment as we are assuming we will need
to buy this item every 2 weeks and if this is not triggered in a 4 week period it would
indicate we are overstocking that particular item and need to bring down the EOQ and
ROP.
c. If the warehouse ever hits Safety stock we can flag the item for review as it would be a
good indicator that we are under stocking the item.
d. This puts Client in a situation where we could easily switch to full perpetual replenishment
theory and move away from the cycles for re-order without risking inventory and
establish a service level requirement that we will be able to meet. However to make this
switch it would be best to have a stronger history of consumption and we need to
understand the Cost of a PO and the cost of stocking items.
Spend Management
Client currently does not have a spend management process for procurement. This process will be
designed and implemented in Client as well as a documented procedure / manual to ensure compliance.
The Maximo system will be designed in a way that the data required for the process will be included in
the reports.
Procurement Planning
At the start of every year Client will conduct a procurement planning meeting in order to accurately
project procurement needs for the next year. This meeting will then be conducted every 3 months to
review and approve the procurement plan. The
42
EAM Typical
Issued Aug. 7 ,2015
Scope Document
Objective
The objective of the meeting will be to communicate with data from Maximo and forecast part
consumption in order to identify opportunities for negotiation with vendors in order to lower overall
procurement costs.
Inputs:
Part utilization reports
Re-order performance
Maintenance parts forecast report
Vendor evaluation and historical pricing report
Spend management report (what % of spend goes to which suppliers)
Outputs:
Yearly procurement plan
Pre-approved stocking levels (re-order points)
Vendor negotiation list
Target pricing for parts
With these outputs procurement will engage in negotiation with the pre-approved vendors in order to
lower the overall cost of parts. The procurement personnel will also have a knowledge of when parts will
be required this will allow them time to ensure the best possible prices for the items are obtained and
that vendors are aware of the needs so they have stock for the items required. EEN will develop the full
procurement plan and train Clients personnel to execute and manage it.
43
EAM Typical
Scope Document
Base Report
Base Report
Base Report
Base Report
Base Report
Base Report
Base Report
Base Report
Base Report
Base Report
Base Report
Report Category
Averge cost per PO
negotiated vs realized savings
Realized savings
negotiated savings
Spend under management
Vendor Analysis
Un needed requests
Error %
Turn around time
PRs per warehouse
Emergency PRs per warehouse
Re-order cycle compliance
ASL health
Report
Allows company to see value of procurment
Allows a company to understand the PO costs
KPI on negotiated vs realized savings
Benchmark of savings actually executed
benchmark the cost of goods
details how much of your spend is managed
Shows vendors performance
Shows by originator how many requests were canceled
Shows how many errors (wrong items) were purchased.
creation of PR to approved PO
total requests per warehouse
Shows percentage of PR's that are urgent
Ensures compliance with reorders
Items that have or have not been ordered
Information
realized savings vs department costs
sum of department expendetures / count of po's
Sum of savings on purchased / sum of projected contractual savings
sum of savings on purchases
Differential between the average purchase price and contract negotiated purchase price
Count of parts and services / count of perfered suppliers with contracts
Benchmark between average delay of delivery per vendor and price variances in purchases.
count of PR's canceled.
Count of PR rejections
Count of PR and time for each step of the process for it to become a PO.
how many requests originate from each warehouse
Understand how well your inventory is stocked and your operational planning ability
Count of reorders not executed on time
Count of safety stock, count of no-reorders, count of reorders
base data
Overal performance indicator of purchasing
Overal performance indicator of purchasing
This is show any bottle necks withing the purchasing

process. It will benchmark the how long it takes in each
step to create a PR and convert it into an approved PO.
this will allow you to know how many times the PR's get
rejected by technical review.
Allows you to understand the origination of un-need
procurment requests.
Allows you to understand the quality of vendors and
purge your vendor database.
This allows you to understand how you are spending. It
will highlight who you need to negotiate with.
this report will help you understand the benefits of the
negotiations for the parts. Can also be forcast based on
the demand.
this allows you to see how much of the negotiated
savings were realized
allows you to see how well your company projects
part/service usage and demand as well as
undertanding the value of spend management.
Issued Aug. 7 ,2015
KPI
Purchasing ROI
Reporting requirements
To monitor procurement we suggest Client have at minimum the following reports.
KPI
type and purpose

This report will consist of items that either have not
been ordered in two cycles or have at some point
reached their safety stock. It will include historic
consumption broken down by cycles in order to
accurately diagnose the items status and the
warehouse managers need to make a call on adjusting
the quantities needed.
The report will check that every warehouse is running a
re-order cycle within the timeframes estimated and will
flag warehouses that are not compliant with running
their re-orders in the specified time period.
This will show how many emergency PRs we are having
to execute and what items we have to execute them on
in order to analyze with the ASL Health report so we can
adjust stock levels as needed or change items from Nonstock to Stock if needed.
This will display the amount of PRs being generated per
warehouse and this number should be minimal as the
re-order will greatly reduce the number of PRs
generated and routed for approval.
KPI
44
EAM Typical
Issued Aug. 7 ,2015
Scope Document
8.4 Warehousing
SIPOC
Definition of inventory process
Supplier
Third Party vendor
maintenance
Purchasing
Administration
Input
Purchase Order
work order
Material request form
Automated restock point
Inventory balance report
Process
Reciept Process
re-order process
dispatch process
inventory count process
Item inclusion
Return process
Rotating asset process
Output
Re-order points
stock/nostock report
dispatch slip
reciept slip
inventory balance report
purchase request
inventory dispatch report
Inventory reciept report
approved ITEM
Customer
Maintenance
administration
accounting / ERP
purchasing
Material Management Plan

Client does not currently possess a material management plan that clearly outlines how materials are
managed and procured. EEN will develop a material management that outlines:
a. Parts reception procedure
b. Parts stocking procedure
c. Handling of GL accounts on reception and dispatch of materials
d. Material folders and filing
e. Re-order point assessment and validation
f.
Parts dispatching procedure
45
EAM Typical
Issued Aug. 7 ,2015
Scope Document
Inventory dispatch
It is important to note that prior to the inventory dispatch process the system checks for parts availability
and reserves them. The only reason to not have parts when filling a work order is due to erroneous
balances or items that are already on Purchase Requisitions.
Start
Text
Resources
Start
Pre-pick?
Pre-pick?
Dispatcher checks to see if the part

was pre-picked the night before.
No
WO number
Yes
Maintenance person provides the

dispatcher with the work order
WO number
number which has the parts required
outlined on it.
Dispatcher checks to see if he has all
All Items?
items in stock while picking.
If all items required are not listed on
Add item to WO the Work order a supervisor must add
the items.
Checks to see if the items are in
Exist
inventory
If additoinal items added to work
Create PR
order are not in stock the warehouse
person creates a PR for the items.
Dispatcher prints a dispatch report
Dispatch
that the maintenance person signs.
End
Exist
Yes
All Items?
No
Add item to
WO
No
Yes
Dispatch
Create PR
End
46
EAM Typical
Issued Aug. 7 ,2015
Scope Document
Inventory Reception
Step
Start
Description
Start
System checks to ensure a purchase
order for this item exists
If a purchase order does not exist
the system will create a PO and
PO Process
send for approval and notify the
user he can not receive items
without an aprpoved PO.
The system will check of the
Match?
quantities input in the reciept
match the quantities ordered.
The warehouse person will be
allowed to enter the values for
Pass Inspection?
inspection if the material requires
inspection prior to reciept.
PO exists
PO exists
No
PO
Process
Yes
Match?
No
Resolved?
Reject
Yes
Pass
Inspection?
Yes
Resolved?
Yes
Staging
Reject
Bin?
No
Staging
Define Bin
Yes
Bin?
Stock
Define Bin
Stock
End
End
47
The warehouse person will attempt

to resolve any discrepancy with the
vendor or delivery person.
If the item fails inspection or is not
acceptable to receive the inventory
manager will reject it and create a
PR for the items.
If the item can be received it will be
initially received to a staging
location/ BIN.
The system will check if there is an
existing bin for this item.
If there is no BIN for this item the
warehouse person will define the
BIN.
Warehouse person stocks the Item.
EAM Typical
Issued Aug. 7 ,2015
Scope Document
Inventory cycle count

For cycle counts we suggest that Client group apply the ABC cycle count theory in order to avoid doing
yearly full counts of inventory. The cycle count will take a sample of A, B, and C categories and every
month inventory is to be counted. Based on the discrepancies there would be a full count if required.
Step
Start
Generate ABC
count
Generate ABC
count
Above
tolerance
description
Start
Full
inventory
Count
Scheduled
Above tolerance
Full inventory
Count Scheduled
Register count
results
Register count
results
End
End
48
System generates
an ABC count
process. This will
take 5% of A, 5% of
B and 10% of C to
count.
system checks the
counts to see if
they are above or
below tolerance
levels
If the system sees
violations of the
tolerance levels it
will trigger a full
count.
system stores the
count results.
EAM Typical
Issued Aug. 7 ,2015
Scope Document
8.4.5.1
Cycle count process business requirements
The requirements for cycle count are mainly business process specific and not system specific.
Category
Categorization
Categorization
Acceptable variance
Review process
Periods
Description
Must categoirze inventory in A, B and C
Must define A, B, and C categorization paramanters.
must define acceptable varience (2-5% normally)
Must define a process to review the count accuracy and
selection of vendor. This occurs outside of the system.
Define how often the cycle count is to take place
type
system
business
business
business
business
Interfaces
During our interviews we believe there are two options for interfacing Maximo to the existing software in
Client. There is a strategic initiative to consolidate separate systems under one portal which is best
practice when a company is segmented systems. We outlined an option to interface into the existing
portal and an option of interfacing directly to the ERP.
9.1 Option Portal Interface

For this interface option Maximo will be interfacing with Clients portal. When a PR is created in Maximo
it will forward the information to the portal. Once the PO is created in the portal it will send the
information back to Maximo. Once Maximo receives the materials it will send the invoice and materials
receipt to the portal.
PR send
o PR number
o PR line
o Item Number
o Item qty
o Item Cost
o Status
o Date
o Vendor
o Site
o Organization
o Warehouse
PO send
o PR number
o PR line
o Item Number
o Item Qty
49
EAM Typical
Scope Document
o
o
o
o
o
o
o
Invoice
o
o
o
o
o
o
o
Example:
Item Cost
Status
Date
Vendor
Site
Organization
Warehouse
PO Number
Item
Quantity
Cost
Holding account
Vendor number
Date
50
Issued Aug. 7 ,2015
EAM Typical
Issued Aug. 7 ,2015
Scope Document
Drawbacks:
The key risks to this type of interface are modifications that will be made to the purchase
requisition within the portal. If not handled correctly within the portal the data sent back to
Maximo can cause interface failures.
This type of interface requires larger maintenance.
No Maximo workflow to control process
Benefits:
Single system for all procurement regardless of system utilized at site
Consolidated reporting
51
EAM Typical
Issued Aug. 7 ,2015
Scope Document
9.2 Option 2 ERP interface

With this interface Maximo will interface directly with the ERP system. It will consist of doing the entire
PR and PO process in Maximo and sending a receipt to the ERP system.
Receipt:
PO Number
Item
Quantity
Cost
Holding account
Vendor number
Date
Drawbacks:
POs that are not for local organization will be handled through a different system (ERP).
Benefits:
Easily maintainable interface
52
EAM Typical
Issued Aug. 7 ,2015
Scope Document
Easily designed and implemented interface

Maximo workflow control
10 GAP Items
The major GAP items identified during this process were directly related to the business processes. The
Maximo system can meet the needs of the to-be processes without any customization and only
configuration.
10.1 Spend Management

Client currently does not have a documented spend management process to maximize value of their
spend. Without a strong forecast of materials needed in the facilities Client is unable to negotiate and/or
find the best vendors for the parts and services required.
Inability to accurately forecast materials required by the facilities also impacts the turn-around time of
requisitions to purchase orders, elevating the cost of procurement and decreasing the speed at which
items are received. From data received by Client it was noted that in the 30 days prior to EENs
engagement the facility had 25% of their purchase requisitions as Urgent. This highlights lost
opportunities for saving.
10.2 Materials Management

Client does not have a materials management program for warehousing. There are currently no processes
or procedures that define how material is controlled, stocked, re-ordered, or created. A highlight of this
need was the data given by Client showed a discrepancy of over 300,000 items in one warehouse and
inability to provide accurate inventory value.
10.3 Planning
The facility does not currently have a planner dedicated to managing maintenance for the facility. Normal
facility management requires 1 planner every 15-30 resources in order to accurately plan and manage the
work required.
10.4 Maintenance procedures

The facility currently operates under a break/fix maintenance process. In order to move accomplish 1st
quartile performance it is required to have strong maintenance procedures. Development of who, what,
where, when, how, and parts used need to be developed for all assets in the facility.
10.5 IT staff
Currently there is not an qualified Maximo administrator, once the project is complete there will be a
need of local support for the system. We suggest both the facility and the power plant have two
planners/administrators and minimum one IT person.
11 Recommendation for GAP Items

53
EAM Typical
Issued Aug. 7 ,2015
Scope Document
Below we will outline the steps required in order to overcome the GAP items identified. Addressing these
issues are required in order to maximize the benefit of implementing an EAM system such as Maximo.
Closing these GAPs will allow Client to begin the journey for first quartile performance.
11.1 Spend Management

Energy Experts Now will develop a full process and manual for spend management. It will cover planning,
forecasting, negotiating, and benchmarking of the process for continual improvement. The Maximo
system will be configured to support spend management.
11.2 Materials Management

Energy Expert Now will develop a material management plan for Client. This procedure will include:
a. Parts reception procedure
b. Parts stocking procedure
c. Handling of GL accounts on reception and dispatch of materials
d. Material folders and filing
e. Re-order point assessment and validation
f.
Parts dispatching procedure
11.3 Planning
Energy Experts Now will provide 10 days of training for a planner at the facility. As an optional
engagement Energy Experts Now can provide 1 full time planner for 12 months in order to help transition
from break/fix to preventive maintenance.
11.4 Maintenance procedures

Energy Experts Now will create maintenance procedures for each asset at the refiner, define maintenance
intervals for those assets, and tag/code all assets at the facility.
11.5 IT staff in Country

We recommend hiring at minimum 1 full time Maximo administrator and option for 2 year soft remote
support from Energy Experts Now. This will allow us to support and train the local resource and ensure
quality support for the system until the Maximo administrator is capable of managing the system himself.
Two people are better in case one leaves for any reason.
12 Recommendation on Users for EAM Solution

The suggested user licenses are based on the organization structure provided by the business units. If this
organization structure changes the licensing requirements could change.
54
EAM Typical
Scope Document
12.1 Power Plant

Position
License
Maintenance Manager
Planner
Operations manager
General Manager
IT
Operatios Supervisor
Purchasing
Admin
Finance
Safety
Maintenance Supervisor
Warehouse
Full
Limited
Type
1 Full
2 Full
1 Full
1 Full
1 Full
1 Limited license
2 limited license
2 limited license
1 Limited license
2 Limited license
5 Limited license
1 Limited license
6
14
12.2 Facility 1
55
Issued Aug. 7 ,2015
EAM Typical
Issued Aug. 7 ,2015
Scope Document
Position
reliability engineer
Planner
Refinery manager
owner representative
IT
HSE Advisor
Operations Manager
technical services manager
Process engineer
static equipment inspector
quality systems
maintenance manager
superintendants
warehouse manager
Sr engineers
Document control
Limited
Full
License
Type
1 full
1 full
1 Full
1 Full
1 Full
1 Limited
1 Limited
1 Limited
1 Limited
1 Limited
1 Limited
1 Limited
4 Limited
4 Limited
5 Limited
1 Limited
21
5
13 Implementation
There are two implementation paths that you can execute to have Maximo installed.
Implementation concurrently (cost efficient)
Implementation separately (more expensive)
13.1 Concurrent implementation

This would be the most economical scenario of implementation because Client can take advantage of
resources that Energy Experts Now will have on site. It will reduce the overall travel expenses and it will
reduce total man hours required if the implementations are done concurrently. In a concurrent
implementation the estimated time for project completion is 8 months.
Executive summary
During the scoping document exercise there were three key gaps identified that will need additional
resources to resolve:
Moving from break/fix to preventive maintenance
56
EAM Typical
Issued Aug. 7 ,2015
Scope Document
For the facility the first stage would be to fully code the equipment at the plant and develop a preventive
maintenance plan based on manufacturers recommendations. To accomplish this Client will have to
outsource the development of the maintenance procedures and temporarily augment staff in order to
execute them once they are in the system.
Spend management / warehousing
Currently there is no set process to benchmark the efficiency of the procurement process in Clients group.
This is leading to paying higher prices because there is no coordinated planning to enable procurement to
reduce total spend per item. We recommend Client first implement spend management theory as well
as warehouse planning. This will require a temporary staff augmentation to develop the processes and
procedures for these departments.
Maintenance Planning
If Client does not have a planner on staff this resource is one of the cornerstones of moving to a corrective
maintenance based organization to a preventive maintenance based organization. EEN highly
recommends that Client hire a planner(s) prior to the implementation and dedicate the planner full time
to the implementation of Maximo. EEN will train the new planner on his duties and how to execute them.
The remaining items are standard EAM data requirements and configurations. These items are included
in the project plan.
Responsibilities
13.1.2.1 Clientss Responsibilities
a. Provide EEN with complete equipment list coded in KKS in excel format for the power plant
b. Provide all relative financial data required in Annex 1 where it is not specifically stated that the data
is Energy Experts Now responsibility.
c. Provide 2 dedicated resources for the power plant in order to implement the system.
d. Provide 1 dedicated resource for the Facility for the implementation of the system.
e. Provide detailed maintenance plan for the power plant.
f.
Provide one internal project manager for the implementation.
g. Provide airfare, lodging, transportation and per-diem for all on site resources.
h. Hardware for test, development and production environments.
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EAM Typical
Issued Aug. 7 ,2015
Scope Document
i.
Provide unrestricted access to defined stakeholders for maintenance, procurement, warehousing,

and general management for meetings and definitions of the implementation.
j.
Any taxes or fees except for those imposed on EEN by its home country of Panama.
13.1.2.2 Energy Experts now responsibilities

a.
Provide 1 remote part time project manager for the implementation
b.
Provide 2 remote full time report writers for custom report development
c.
Provide 1 on-site functional resource to develop workflows, training and testing
d.
Provide 2 on-site subject matter experts to create maintenance procedures for the facility.
e.
Provide 1 on site subject matter expert to develop spend management and warehouse management
procedures.
f.
On going after implementation support for 2 years (Optional)
a.
Deliverables
Fully developed to be processes in accordance to the scope of this document (section 14)
b.
Written procedures and instructions for facility maintenance.
c.
Written procedures and instructions for procurement.
d.
Develop a materials management plan.
e.
Fully developed reports in accordance with section 14 of this document.
f.
Maximo software licenses

a. 11 Full licenses
b. 35 Limited user licenses
g.
Installation of test, development, and production environments.
h.
Detailed project plan including meeting schedules and stake holders.
i.
Maximo user manual
j.
System go live
k.
Two years remote service (optional)

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EAM Typical
Issued Aug. 7 ,2015
Scope Document
Financial
This will be a turn-key implementation of Maximo as well as the development of the business processes
to fully maximize the potential of the system to reduce downtime of the assets and operational costs of
both the facility and power facility.
59

EEN Typical EAM Scope Document

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Terms and Definitions ........................................................................................................................... 5

Executive summary ............................................................................................................................... 5

Key Performance Indicators ................................................................................................................ 11

Managing Spend and Holding costs ............................................................................................ 12

Work Performance ...................................................................................................................... 13

Asset Management ..................................................................................................................... 14

Understand your maintenance costs .......................................................................................... 15

Organizational Structure ..................................................................................................................... 17

Power Plant ................................................................................................................................. 18

Facility 1 ......................................................................................... Error! Bookmark not defined.

Departments interviewed; .................................................................................................................. 20

Power plant ................................................................................................................................. 20

Facility 1 ......................................................................................... Error! Bookmark not defined.

Business processes as-is Facility 1....................................................................................................... 20

Maintenance as-is ....................................................................................................................... 21

Warehouse as-is .......................................................................................................................... 24

Procurement as-is ....................................................................................................................... 25

To-Be business process ....................................................................................................................... 27

Maintenance Processes .............................................................................................................. 27

Issued Aug. 7 ,2015

Procurement Process .................................................................................................................. 39

Suggested ROP theory for: .............................................................................................. 41

Terms and definitions ..................................................................................................... 41

Reorder calculations instruction ..................................................................................... 41

Cycle count process business requirements ................................................................... 49

Option Portal Interface ............................................................................................................ 49

Option 2 ERP interface ............................................................................................................. 52

Issued Aug. 7 ,2015

Materials Management .............................................................................................................. 53

Maintenance procedures ............................................................................................................ 53

Recommendation for GAP Items .................................................................................................... 53

Spend Management .................................................................................................................... 54

Materials Management .............................................................................................................. 54

Maintenance procedures ............................................................................................................ 54

Recommendation on Users for EAM Solution ................................................................................ 54

Power Plant ................................................................................................................................. 55

Facility 1 ......................................................................................... Error! Bookmark not defined.

Energy Experts now responsibilities ........................................................................... 58

Total Implementation costs: ...........................................................................................

Detailed Project cost breakdown ....................................................................................

High level project plan ........................................................... Error! Bookmark not defined.

Power Plant Only.............................................................................................................................

Clientss Responsibilities .................................................................................................

Energy Experts now responsibilities ...............................................................................

Issued Aug. 7 ,2015

Deliverables............................................................................ Error! Bookmark not defined.

Total implementation cost ............................................. Error! Bookmark not defined.

Payment schedule .......................................................... Error! Bookmark not defined.

Optional two year support package................................................... Error! Bookmark not defined.

ANNEX 1 Data requirements ........................................................... Error! Bookmark not defined.

Requirements matrix ......................................................................................................................

Annex 3 - Implementation Team ........................................................................................................

Annex 4 EEN Terms and Conditions .................................................................................................

ANNEX 5 Example maintenance procedure .....................................................................................

Annex Combined Project Plan..........................................................................................................

Annex Power Plant only project plan ...............................................................................................

Annex Maintenance Procedure proposal details .............................................................................

Facility Detailed GAP ........................................................................................................................

Issued Aug. 7 ,2015

Terms and Definitions

Mid time between failure

Maximo is a very flexible program that allows extensive configuration, this is