Collaborative Asset Lifecycle Management and PAM

(1)

1 T h o u g h t L e a d e r s f o r M a n u f a c t u r i n g & S u p p l y C h a i n

Copyright ARC Advisory Group

Collaborative Asset

Lifecycle Management

and PAM

Collaborative Asset

Lifecycle Management

and PAM

Wil Chin

Research Director

ARC Advisory Group

[email protected]

(2)

Millions of Plant Assets

♦

Installed Base (units)

Process Field Devices: >40M

Discrete Sensors:

>500M

Valves:

>30M

Other Plant Assets:

>550M

The Sheer Volume of Plant Assets

Presents a Huge Opportunity !

(3)

Today’s Extended Workload

Increasing

Installed

Base

+ = 500 to 2000 Loops

per Technician

Manpower

Reduction

Plant Assets Can Not be Managed by

Traditional Methods

(4)

Reductions in Asset Investments

Reflect A More Challenging Future

Reductions in Asset Investments

Reflect A More Challenging Future

Chemicals

(1997 = 100) 89 104 0 20 40 60 80 100 120 140 1997 1998 1999 2000 2001 2002 CapEx/Revenue Revenue O il & G as (1997 = 100) 84 130 0 20 40 60 80 100 120 140 1997 1998 1999 2000 2001 2002 CapEx/Revenue Revenue

Pulp & Paper

(1997 = 100) 64 144 0 20 40 60 80 100 120 140 160 1997 1998 1999 2000 2001 2002 CapEx/Revenue Revenue

Metals

(1997 = 100) 68 98 0 20 40 60 80 100 120 1997 1998 1999 2000 2001 2002 CapEx/Revenue Revenue

(5)

Initial Costs Represent Only 20%

of Total Costs of Ownership

Initial Costs Represent Only 20%

of Total Costs of Ownership

100%

80%

60%

40%

20%

0%

Percent of Total Equipment Costs

Total Equipment Life-cycle

Initial

Costs

Maintenance & Operation Costs

Operation & Maintenance is Costly

Initial Costs

Maintenance &

Operation Costs

(6)

Asset Management Has Some Real

Challenges Today

Survival Requires New Ways to Manage Your Assets!

♦

Expanding Regulatory

Requirements

♦

Increased Concern with Security

Need to spend more on things

that don’t improve financial

performance

Need to Improve

ROA of all Facilities

The Old “Squeeze Play”

♦

Global, More Competitive Markets

(7)

ARC’s Collaborative Asset Lifecycle

Model (CALM)

MAINTAIN

IMPROVE

PLAN/SOURCE

COMMISSION

OEM

Maint

Engr

PLAN/SOUR

CE

EPC

OPER

Asset

Management

(8)

PAM’s Role in Collaborative Asset

Lifecycle Management (CALM)

PAM Supports the Longest Stage of an Asset’s

Lifecycle – Operate/Maintain

-6 -4 -2 0 2 4 6 1 2 3 4 5 6 7 8 9 10 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 7 8 9 10

Operate/Maintain

Plan

Source

Commission

Audit

Redeploy

Replace

Improve

Retire

Dispose

Extend

Life

PAM

CALM

(9)

What is PAM?

♦

Enabling use of optimal maintenance

practices based upon real time information to

avoid unplanned failures

♦

Using exception alerts to help management

focus on the most critical challenges

♦

Increasing performance of plant assets

through advance notification of performance

drifts & Developing Hazardous Situations

♦

PAM is becoming one of the fastest growing

segments of process automation

PAM Solutions Monitor, Analyze, and Help

Optimize the Performance of Plant Assets!

(10)

PAM’s Original Focus-Predictive

Maintenance

PAM’s Original Focus-Predictive

Maintenance

♦

Predictive Asset

Management reduces

maintenance costs

♦

1/2 of all planned

maintenance is

unnecessary

♦

Over 80% of

maintenance becomes

triggered based on

equipment conditions

as opposed to time

Traditional Maintenance Too Costly

5x

10x

Predictive Preventive Corrective

Cost of Maintenance

(11)

ARC End User Survey Validates Importance

of Focusing on Plant Asset Performance …

ARC End User Survey Validates Importance

of Focusing on Plant Asset Performance …

♦

37% are focused on improving

performance and reducing operating costs

♦

26% are trying to extend life of existing

assets

♦

Less than 18% are identifying

underperforming & unnecessary assets

♦

Still - Over 75% rate the importance of an

effective PAM strategy - Very to Extremely

Important

Nearly 70% State that Plant Asset Management

has Increased in Importance !

(12)

PAM Supports All Pillars of Plant

Asset Performance

PAM Supports All Pillars of Plant

Asset Performance

PAM

PERFORMANCE

Safety &

Security

Production Maintenance

Plant Equipment & Control Systems

(13)

PAM Supports Production & Safety

♦

PAM supports production by

• Keeping production assets performing at maximum

throughput

• Reducing Quality Problems caused by unplanned

disruptions and off-spec response

• Help operators make better decisions

♦

PAM supports safety & security by

• Detecting hazardous conditions before they become

a real problem

• Providing information for safety & security audits

(14)

The Evolution of PAM (from

measurement point of view)

The Evolution of PAM (from

measurement point of view)

70s

90s

Automation

Systems

Instruments

WO, Calibration,

Source, Spares

Material, etc.

CMMS

EAM

Measurement,

Alarms,

Tuning, etc.

Today

80s

Future

Operations

Domain

Measurement,

Alarms,

Tuning, etc.

WO, Calibration,

Source, Spares

Material, etc.

Asset R-T

Behavior,

Condition,

Predictions, etc.

Maintenance

Domain

PAM Domain

(15)

PAM Offer Solutions Beyond

Maintenance to Operations

PAM Offer Solutions Beyond

Maintenance to Operations

-60

-40

-20

0

20

40 Unplanned Breakdowns

Inventory Costs

Production Downtime

Product Defects

Equipment Life

Workforce Efficiency

Equipment Productivity

% Improvement Beyond Maintenance

(16)

EAM/

CMMS

Integration

PAS Integration

Asset/Performance

& Optimization

PAM

PAM Capabilities

Predictive Condition

Monitoring

Calibration &

Compliance

Mgmt

Remote Monitoring

& Lifecycle Services

Actionable Alerts

Safety and

(17)

Field Devices

Control Valves

PAM

Process &

Mechanical

Equipment

Motors,

Rotating,

Reciprocating

Equipment

Electrical

Equipment

Analyzers

Automation

Assets

Machinery &

Production Assets

Wiring

Assets Managed by PAM

(18)

Field Devices

Control Valves

PAM

Process &

Mechanical

Equipment

Motors,

Rotating,

Reciprocating

Equipment

Electrical

Equipment

Analyzers

Automation

Assets

Machinery &

Production Assets

Wiring

(19)

The Evolution of PAM

Value

Predictive Performance

Enables OpX

Automation and

Production Assets

Intelligent Knowledge

Management

Reactive

Maintenance

HHC

Configuration

Smart

iPAM

PAM

Predictive

Maintenance

EAM Integration

Automation

Assets

Proactive

Maintenance

Analog

1970

1990

2000

2005

Protection CM

Predictive CM

PAM Becoming a Core Competency of the Enterprise

Integrated & Internet

Enabled

Niche Asset

Solutions

(20)

iPAM

From

To

Client/Server

Web Hosted Portals

Data

Knowledge Management

Workstations

Mobile Solutions

Devices Centric

Total Enterprise Centric

Niche Solution

Broad Solution

Critical Equipment

All Mfg Plant Assets

Asset Monitoring

Asset Optimization

Reactive

Predictive

Smart Self-Validating

Tethered

Wireless + Tethered

Internal

Outsource + Internal

Health

Safety/Security + Health

Maintenance

Performance- ROA

From

To

Client/Server

Web Hosted Portals

Data

Knowledge Management

Workstations

Mobile Solutions

Devices Centric

Total Enterprise Centric

Niche Solution

Broad Solution

Critical Equipment

All Mfg Plant Assets

Asset Monitoring

Asset Optimization

Reactive

Predictive

Smart Self-Validating

Tethered

Wireless + Tethered

Internal

Outsource + Internal

Health

Safety/Security + Health

(21)

The Future of PAM Needs

Interoperability

The Future of PAM Needs

Interoperability

Detect

Distribute

Deliver

Integrating Information from Plant Systems, People,

and Field Devices Around the Globe in Real Time!

(22)

Integration provides a tool-set (API’s, etc)

that can be used to connect Labs

to Manufacturing and Enterprise systems

Business Interoperability delivers

Labs, Manufacturing and

Enterprise systems that are designed to

work together upon installation!

(23)

Better Ways of Sharing Information

and Processes Out-of-the-box

Better Ways of Sharing Information

and Processes Out-of-the-box

Closed

Open

Integrated

Interoperable

While reducing risk,

improving quality

and increasing

flexibility

Cost

… 80’s

90’s - 2000’s

2004 …

Scope

New Concepts for Information and Process Sharing

That Have Not Been Invented Yet

(24)

Conclusion

PAM should be a focus of every

organization and should be considered

in every strategic business plan to

reduce cost and increase efficiency of

the total enterprise

From

(25)

Recommendations for Manufacturers

♦

Adopt a Strategic Perspective

towards Plant Assets and

manage them appropriately

♦

Invest in an integrated asset

performance infrastructure that

will enable PAM

♦

Investigate PAM solutions and

adopt one that supports your

company’s core objectives

PAM Can Have a Significant Impact on

Your Return on Assets (ROA) !

(26)

Recommendations for Suppliers

♦

Recognize the full breadth of impact of

PAM Solutions

♦

Include PAM as a key component in your

Future Automation Product Suite!

♦

Support tight integration of PAM with

PAS and Enterprise Systems

♦

Extend Support and Training to Include

PAM principles

Customers Need PAM and will support those

suppliers who recognize this in their products

(27)

Key Take Aways

♦

Asset Management is a critical issue for

manufacturers.

♦

Leading organizations practice continuous

improvement and constantly search for

new opportunities.

♦

There are numerous developments that

offer significant benefits and merit close

evaluation.

♦

Realized value will depend upon selecting

developments that actually fill gaps in

(28)

Thanks for your attention . . .

Wil Chin

Research Director

ARC Advisory Group