Last Updated on August 16, 2022 by maximosecrets

Click to play the YouTube video – Asset Templates

Hello, and welcome back to Maximo Bite Size. A series of videos on the functional aspects of Maximo Manage. 


Good evening, and welcome to the sixth episode in the series on Asset Management. My name is Andrew Jeffery and tonight we’ll be discussing rotating assets.

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Learning Objectives

Today we’ll start with a bit of terminology, explaining two commonly used terms rotating items, and rotating assets, the two terms are linked. 

We wouldn’t be able to explain rotating assets without spending time in the Item Master application explaining rotating items as some of the features are used with rotating assets. We’ll then dive across to the Assets application and look at assets that reference a rotating item, a rotating asset.

Finally, we’ll take a look at the Locations application and what happens when a location references a rotating item.

So, let’s get started.

What is a rotating asset?

I like to think of a rotating asset simply as an asset that can be held in a storeroom. This is not just placing the asset physically in a storeroom, but maintaining a balance and performing other inventory actions, issues, returns, transfers, etc. For this we need an item.

A rotating item is the storeroom reference for these rotating assets, and it is also the reference used through the procurement processes. 

But why the term rotating? Well, first, it has nothing to do with whether a part of the asset makes a rotational movement, like an impeller on a pump. A rotating item is an inventory item with a current balance where the instances of the item are tracked individually as serialised assets – a rotating asset. The term “rotating” is used because you are tracking the serialised assets from the storeroom to an operating location, then to a repair shop and back to a storeroom ready to be issued again – rotating stock, it is issued, and eventually returned to be issued again. The balances of a rotating item are controlled by the movement of rotating assets in and out of the storeroom.

We will discover that there are certain functions that can be applied to a rotating asset and some of these functions can also be applied to a location, a location can reference a rotating item. We don’t call this a rotating location, a location cannot be moved into a storeroom, and so it would be wrong to use the term rotating for a location, although it sometimes is, and when it is, the speaker is referring to the Maximo functions associated with the location referencing a rotating item.

A rotating asset can also reference a rotating item of type TOOL and these assets can be held in a tool storeroom waiting to be issued to a work order and then returned again. They can also be repaired, sharpened if they have cutting blades, or calibrated, so they “rotate” in the sense of our definition, but we don’t call them rotating tools, just simply tools. Some people, including myself, use the term tool asset when referencing the asset record, and tool item when referencing the item record.

Rotating Items

We’re in the Item Master application which is found in the Inventory module, the application where you define items that are used in a storeroom or a purchasing document. For the item PUMP100 we find that the Rotating field is set (1), and it is read-only. When this field is set, we then refer to the item as a rotating item. Conversely, when it is not set, we sometimes refer to the item as a non-rotating item. If there are no assets that reference the rotating item, you will find that the Rotating field can be toggled. In the MAXDEMO database item PC5-120 has no rotating assets, and the field is accessible.

There are a set of functions that can be associated with a rotating item which influences the assets and locations that reference a rotating item.

In the first column of fields there is a Meter Group field (2) and below it the Meter. Only the Meter Group can be used with a rotating item, meters only with non-rotating items, hence it is set as read-only. When an asset references a rotating item, the Meter Group referenced on the item is copied to the asset and this creates the asset meters for the meters that are part of the meter group. The same function also works with locations that reference a rotating item.

The item’s classification and its attributes, called the Item Specification in Maximo, is copied to the asset (3) when the asset references a rotating item. Changes to the item’s specification are also copied through to the asset specifications, the item is the master for this data, although you can override this. The same function also works with locations that reference a rotating item. Item, Location and Asset Specifications is the subject of the next podcast episode and video in this Asset Management series. 

In the last video we learnt that Asset Templates also have a Meter Group and a Classification/Specification and if you unhide and use the rotating item field on the Asset Template then you need to take care where you use a Meter Group or a Classification/Specification as you do not want to create a conflict on the asset if both are used. My preference is to use the Meter Group on the Asset Template as this allows you to define the settings for each meter, particular for CONTINUOUS type meters. With regard to the classification and its specification details, I would use the Item Master classification and not the one on the Asset Template, this is because the specification details will be useful in both procurement and inventory.  

An Item Assembly Structure is a hierarchy of items which can be applied to both an asset and a location. This is set up on the Item Assembly Structures tab (4). We’ll discuss this briefly when we look at the Assets application in a few moments because there is a podcast episode and video coming up on Asset Subassemblies and Spare Parts. When you apply an Item Assembly Structure it copies it to the asset or location record creating a hierarchy in those applications, this is only possible if the asset or location references a rotating item. 

I’ll just point out another two fields Attach Parent Asset on Issue (5) which can be seen in the bottom corner of the screenshot and Condition Enabled items (6), both of which I’ll discuss in the next section on rotating assets.

Rotating Assets

I’m in the Assets application and I’ve scrolled down to the details area for asset 11430, a centrifugal pump. Midway down the screen you can see that the asset references Rotating Item PUMP100 (1) which we had reviewed in the last section. The Meter Group field (2) can be seen two rows below this, this would be populated if the rotating item referenced a meter group.

If an existing asset does not belong to a rotating item, then you can connect an asset to a rotating item using the Change Item Number action. This can also be used to change the existing rotating item reference for the asset. In the dialog that opens you select the New Item number and if relevant a Condition Code before pressing OK.

A Rotating Item may be Condition Enabled which means that the same item number can be used if the assets are in different condition states and consequently are likely to have different issue unit costs based on the condition state. For example, an item with a NEW condition state would have 100% of the unit cost, an OVERHAUL condition state 85%, a REPAIR condition state 50%, a USED condition state 30%, and a SCRAP condition state of 5% of the unit cost of the item. 

There is a Condition Code field (3) on the asset record, but this will always remain read-only, and you cannot change the condition code through the action Change Item Number if the item number remains the same. Before returning a rotating asset to a storeroom you can change its condition code (4) in the Attributes tab of the Move/Modify Assets action as shown in the bottom left of the screen.

The Condition Code cannot be used with non-rotating assets, only assets that reference a rotating item that is condition enabled. The rotating item must be condition enabled before there are any assets that reference the item. If you thought that you could use this field to give an indication of an asset’s condition, then this is not the right field to use. Instead use a meter of type CHARACTERISTIC as you’ll be able to capture the data easily through an Inspection or a mobile application. Locations are not condition enabled.

In this slide we will review the data that is copied from the Item to the Asset. 

In the previous slide I had created an item called AAJ01 which was marked as rotating, and condition enabled. Then I created an asset AAJ01 linked to the item. I’ve now used the Change Item Number action on the asset to select rotating item PUMP100 and this has copied the Classification and Specification attributes and their data values from the item record to the asset record. The rotating item is considered the master record for the rotating asset. We’ll go deeper into this in the next podcast episode and video.

If you look closely there is a new Date Value attribute (1) which was introduced with MAS v8.8. 

We have previously discussed that the Meter Group is copied from the rotating item to the rotating asset, but what other data is copied?

If you have an image on the Item Master record the image is also copied to the rotating asset. There was an image of a pump on the previous slide, but this was manually created via the Add/Update Image action. An item or asset, or indeed any Maximo record can only have one image, however, multiple images can be linked to the record using the Attachments functionality, or as many of us call it Document Links. When we refer to an Image in Maximo, we are referencing the single image that is displayed when the record is fetched from the database.

A Depreciation Schedule can only be set up on an item that is marked as Rotating otherwise you would receive the error message BMXAA9206E – You can only define depreciation for rotating items. Asset Depreciation is the periodic allocation of an asset’s original purchase price over the service life of the asset. It is important because it defines the expectation of an asset’s useful life, allows you to understand an asset’s current value and remaining life, and for assets in storerooms it would allow you to adjust the inventory cost based on its current value. An asset can have a depreciation schedule based on dates and/or meter usage. I’ll cover asset depreciation as part of Financial Management, but I wanted to say that one reason for using Depreciation Schedules on the Item Master application over Depreciation Schedules on an Asset Template is that asset depreciation can be triggered as part of the receiving process when you use depreciation on an Item Master record.

A tool item is a type of item used on work orders and normally returned after use to a storeroom. Tools are always Capitalized. Think of the access equipment used by facility management technicians that are needed to safely repair a building when working at height. Normally the rotating item referenced on an asset is of type ITEM but it may be of type TOOL and when it is, the hourly Tool Rate which is found in the Tools application and Tool/Organization Details action is copied to the asset and from here it can be modified. The Tool Rate field is only associated with assets with a rotating item reference of Item Type TOOL, otherwise the field will remain read-only. Assets that reference a tool item are sometimes referred to as Tool Assets.

In the Item Master application, you can create a hierarchy of other items in the Item Assembly Structure tab. These are not automatically copied to the rotating asset to create an asset assembly structure and spare parts; however, the action Apply Item Assembly Structure can be used to copy the hierarchy manually. The rotating items in the hierarchy create asset subassemblies and the non-rotating items in the hierarchy create spare parts. The subassembly assets will have the rotating asset against which the Item Assembly Structure was applied, as their parent asset. 

In practical terms the Item Master application can display a hierarchy three levels deep. But if the third level down the hierarchy, is an item marked as rotating, then it is possible to apply an item assembly structure to this asset and this can create an asset assembly structure which is more than three levels deep. Five or six levels is possible although there is no Maximo limit for this. The practical limit is because the Item Master record does not have a hierarchical view, it shows the parents and the children, three levels, after that you must drill down to see the fourth level. 

When you use the Apply Item Assembly Structure action (2) ideally you want to use the Autonumber All button to create the new assets using the system generated autokey. It is possible to manually enter your asset numbers, which works fine if the assembly structure has just one level, but you will need to navigate to the proposed asset records if the Item Assembly Structure creates assets at additional levels. Therefore, if you are using Item Assembly Structures it will work much better if you are using an autokey rather than a structured asset number.

In the Item Master application there is a field called Attach Parent Asset on Issue. This can only be used with items marked as rotating and what it does is attaches the issued storeroom asset to the parent asset that you are issuing the asset too, so that it becomes a child asset.

Rotating Item on Locations

In the Locations application you will also find a Rotating Item field (1), but this is modifiable, there is no Change Item action. A Rotating Item reference can only be used with locations of type OPERATING, not for locations of any other location type.

When the rotating item is referenced, the classification is copied, the specification attributes created and the attribute values copied from the Item Master record. If the description generation function is turned on for the classification, then the location’s description will be generated. The generated description may include the classification description and one or more attribute values including any prefixes and units of measure. This all works the same as for assets, the Item Master record is the master of the data, but you can stop this as we will find out in the next video.

In addition to the classification the meter group is copied from the Item Master record, and this will create a location meter for each meter that is part of the meter group. Again, the same as for assets.

Where there are differences with assets is that with locations the image is not copied from the Item Master record, but you can still add an image to the location using the Add/Update Image action. There is no depreciation on locations, only with assets. Only assets can be tools and so you will not find a tool rate on a location record. Only assets have a condition code.

If a location has a rotating item reference, then the action Apply Item Assembly Structure can be used to create a hierarchy below the location. All the items in the associated Item Assembly Structure must be marked as rotating, as there are no spare parts with locations. I’ve used this in the past to show how you can quickly create a location hierarchy based on using items and item assemblies as a model library. For example, to build a vessel (boat or ship) based on a particular configuration, to build an electric substation based on a particular configuration model, or the location hierarchy for a shop of a particular type which will have the same sort of assets or functional positions to maintain, for example tills, interior lighting, emergency lighting, etc.

The Item Master field, Attach Parent Asset on Issue, only works with assets, and not operating locations. 

Thank you for watching

I hope you have enjoyed this episode on Rotating Assets and found it useful and thank you for listening. We would like to see you back in our next episode when we will take a closer look at the functionality on Item Master application that controls the Location and Asset Specifications. 

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Until another time, Goodbye.