<Insert Picture Here> It Is Easy Being Green: Asset Management and the Green Supply Chain

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3 <Insert Picture Here> It Is Easy Being Green: Asset Management and the Green Supply Chain Tom Sichko Product Strategy Director ALM

4 The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle s products remains at the sole discretion of Oracle.

5 Green Equipment

6 Climate Change

7 Program Five Ways to go Green Green Asset Management Five Ways to go Green Reliability Centered Maintenance Real-Time Asset Management MRO Inventory Optimization Green IT Analytics to Support Green Initiatives Emerging Trends <Insert Picture Here>

8 Energy Use Within a Plant Opportunities for Efficiency

9 What is Green Asset Management? Energy consumption is a key factor in defining asset performance Use of Enabling Technologies Sensors and Automation Advanced Metering Key Performance Indicators that monitor asset performance, equipment alerts and repair history

10 Federal Energy Management Program Operations and Maintenance

11 Reliability-Centered Maintenance Increase Productivity, Reduce Cost, Improve Product Quality Define Assets System Define Failure Codes Analysis Task Selection Task Scheduling Execution Equipment Comp Examples Types Excess Wear Heat Exposure Condition Based Preventive Reactive Periodic Review Focus attention and resources on most important assets - Preventive or Condition-Based for high value and critical - Reactive for low value, low priority Select and implement strategy based on asset type and primary usage

12 Multiple Maintenance Strategies Plan Maintenance and Repairs in Any Environment Condition Based Condition Monitoring Temp, Flow Rate, Wear, Vibration, Calibration System Identification of Limit Violations Workflow-Driven System Action Notify Asset Owner Generate Work Order Planned Usage Planned Calendar Events, Production Forecast Maintenance Schedules Maintenance Forecast Preventive Actual Usage APIs to Monitoring Systems / Multiple Meters Estimated Life Run to Failure, Planned breakdowns Auto-Creates Work Seasonal & Alternative Strategies Real-Time, Recommended Forecast Based on Plans, Estimates, and Actual Usage Dynamic Plan Adjustments Reactive Maintenance Request Equipment Failure, Inspection Readings Unplanned Maint Scheduling Auto or Manual Work Request Approval Operator Initiated WO Req / Approval Notify Asset Owner Generate Work Order

13 Reliability Centered Maintenance Advantages and Disadvantages Advantages Can be the most efficient maintenance program Lowers costs by eliminating unnecessary equipment maintenance or system overhauls Minimizes the frequency of overhauls Reduces probability of sudden equipment failures Focuses maintenance activities on critical system components Increases component reliability Incorporates root cause analysis Disadvantages Can have significant startup costs associated with staff training and equipment needs Savings potential is not readily seen by management

14 The Essentials of Reliability Centered Maintenance with Oracle eam

15 <Insert Picture Here> Allison Smith AMR Research Software applications that can monitor and act on real-time asset performance data will have a significant role to play with most energy conservation opportunities stemming from the better use of smarter, more energy efficient assets. Shifting the Maintenance Mindset: Greening Your Assets, Wednesday, August 29, 2007

16 60% 50% 40% 30% 20% 10% Real-Time Asset Management Move from Reactive to Condition-Based Maintenance Common Practice 60% 50% 40% 30% 20% 10% Best Practice 0% Reactive Preventive Condition Based 0% Reactive Preventive Condition Based Source: PWC Best Practices for Asset Intensive Industries E X A M P L E Sensors Pressure Process Control System Temp Collect Data OPC Server (or other standard) Translate Oracle Sensor Edge Server Analyze Oracle eam Application Respond

17 Predictive Maintenance Real-Time Asset Management + Sensors Advantages Provides increased component operational life and availability Allows for preemptive corrective actions Results in decrease in equipment and/or process downtime Lowers costs for parts and labor Provides better product quality Improves worker and environmental safety Raises worker morale Increases energy savings Results in an estimated 8% to 12% cost savings over which might result from a preventive maintenance program only Disadvantages Increases investment in diagnostic equipment Increases investment in staff training Savings potential is not readily seen by management

18 Federal Energy Management Program Sensors and Automation

19 Sensors and Automation Sensors and Automation Annual Report: Fiscal Year 2004, US Department of Energy

20 Sensor Edge Server and eam Implementation Example Mechanical Room with Remote Assets and Sensors Oracle eam Work Request Opto 22 Controller Sensor Edge Server UI

21 Real-Time Asset Management

22 MRO Inventory Optimization Supports Green Initiatives Inventory Optimize stocking levels and automate replenishment Factors to consider Holding Cost Obsolescence Parts Availability Maintenance BOM Inventoried Parts (e.g., Pipe Fitting) Rotables (e.g., Diesel Engine) Maintenance Execution Automatically generate inventory pick list and purchase requisition Non-Stock Direct (e.g., Actuated Valve) Planning Procurement Synchronize purchasing needs with actual requirements Enable accelerated purchasing of parts and materials

23 Green IT What Is Green IT?

24 Green IT Reduce Energy Consumption Highly energy-intensive and rapidly growing Consume 10 to 100 times more energy per square foot than a typical office building Large potential impact on electricity supply and distribution Used over 60 billion kwh in 2006 Projected to increase to 100 billion kwh in 2011

25 Green IT Reduce, Recycle, Reuse

26 Analytics to Support Green Initiatives Real-Time Results Performance Measures Flexible Time Periods Graphs Flexible Comparisons Links Reports - Asset Productivity - Reduce Planned Downtime - Reduce Unplanned Downtime - Metering of Utilities (Water,Air,Gas,Electric,Steam) - MRO Supply Chain - Reduce Redundant Purchases - MRO Visibility Across Plants - Reduce Craft time Procure Parts - Workforce Management - Craft Travel time - Scrap Material

27 Analytics to Support Green Initiatives SMRP Standards Stocked MRO Inventory Value as a Percent of RAV Annual Maintenance Cost as a Percent of RAV Total Downtime Scheduled Downtime Unscheduled Downtime Rework Corrective Maintenance Hours PM & PdM Effectiveness Continuous Improvement Hours

28 Green Asset Management Emerging Trends You can expect to monitor equipment carbon emissions within five years (Gartner 16 May 2007) Government Mandates Energy Policy Act 2005 Global Warming Solutions Act of September 2006 (CA September 2006) Non-Financial Regulatory Reporting for the cost of Natural Resources Input Manufacturers will embed sensors to monitor equipment

29 It s not Easy Being Green

30 Oracle Asset Lifecycle Management Open World 2007 ALM Sessions and Events Tuesday Wednesday Thursday Oracle Asset Mgt. Powers Utilities Westin Franciscan II - 12:15 pm Exhibition Hours: Monday: 10:15 5:30 (closed from 2:00-2:45) Tuesday: 10:15 5:30 Wednesday: 10:45 5:30 (closed from 2:00-2:45) Thursday: 10:00 1:30 It s 11 pm! Do You Know Where Your Assets Are? Marriott GG A3-9:45 am Oracle Asset Mgt. Product Update: Oracle EAM and OAT Marriott GG A3-11:15 am Can You Dig It? Oracle eam in Mining & Minerals Moscone West 3005 L3-3:00 pm Make Rules Not War: Making Nice with the Bean Counters Marriott GG A1-8:30 am It is Easy Being Green: Asset Management and the Green Supply Chain Marriott GG A1-10:00 am Map It! Track & Maintain Your Assets Using Oracle eam & ESRI Marriott GG A1-11:30 am Visit us in the DEMOgrounds B10 And for more information: pin: yes2alm Integrated OAT with Oracle Inventory for Mobile Network Deployment & Asset and Spares Lifecycle Management Moscone West 3001 L3-11:30 am Can You Hear Me Now? Oracle ALM Goes Mobile Marriott GG B2-1:00 pm

31 "Information Driven Asset Management Visibility, Reliability, Usability Back and Better than Ever The 2nd Annual Oracle Maintenance Summit January 30 - February 1, 2008 in Orlando, Florida Join Maintenance & Reliability Industry Luminaries like: Terrence O'Hanlon, CMRP (Publisher of Uptime and Reliability) Drew Troyer, CRE, CMRP (Sr. VP Noria Corporation) Maintenance practitioners from Oracle maintenance customers like: Aleris, Sunflower Electric, ALCOA, ICU Medical, and Welch s Oracle Strategists and Complimentary product and service providers It s Free visit for registration and information

32 The preceding is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle s products remains at the sole discretion of Oracle.

33 Appendix <Insert Picture Here>

34 For More Information search.oracle.com or oracle.com

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