VP Asset Optimization Services

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1 Sustaining Reliability Workshop ARC Event Orlando February 2010 Augie DiGiovanni VP Asset Optimization Services

2 Topics To Cover Introduction to Asset Management Establish Asset Management Program by: Key Performance Indicator (KPIs) Work flow Asset Priority Maintenance task design Example step-by-step pprocedure Maintenance Strategy Blueprint 'matrix' CMMS and Asset Management Move asset health data to the CMMS for work order generation Populate the asset management program with data 27-Jun-01, Slide 2

3 Why Plant Asset Management? Reliability is becoming a competitive business issue Quality is a survival issue in many markets Increased production demands on older equipment Manpower reductions require us to do more with less Cost reductions focus in maintenance and operations Customer requirements are becoming more stringent Environmental, health and safety concerns have become a total enterprise issue Value creation is a motivating factor for management decisions 27-Jun-01, Slide 3

4 A Little Background on the Playing Field Challenge: To Be More Planned Than Reactive 1988 Present Best Cost Reactive 55% 55% 10% Preventive 30% 31% 25-35% Predictive 10% 12% 45-55% Proactive 5% 2% 5-15% Source: Maintenance Technology Percent Limited manpower % Budgetary restraints Too busy reacting to machine problems to be proactive / strategic Lack of management understanding of maintenance strategies Level of maintenance employee training Not sure how to justify improved best maintenance practices % % 29% 24% 47% BARRIER: Major BARRIER: Insurmountable The Goal: Shift work effort from Reactive Planned 27-Jun-01, Slide 4

5 Adding Value over the Life Cycle Pla ant Efficiency Start up St tart up Start up & Commissioning Plant performance optimization Predictive diagnostics services Monitoring and analysis services Turnaround execution Repair services 27-Jun-01, Slide 5 Time

6 Asset Optimization Technology and Services 27-Jun-01, Slide 6

7 Establishing an Asset Management Program

8 Key Performance Indicators (KPI) Typical Corporate KPIs Stock Price Return on Assets Gross Profit Market Share Customer Satisfaction Safety Record Product Unit Cost On-time Deliveries Product Quality ITO Inventory Turn-over Sales Growth Targets Typical Production KPIs Uptime % (vs total possible) OEE (Overall Equip Effectiveness) First Pass Yield (scrap) Maintenance Cost (%PRV) Downtime (% available) Labor Overtime % MTBF Mean Time Between Failure MTBR Mean Time Between Repair Recordable Injuries Training / Employee 27-Jun-01, Slide 8

9 Work Flow Observations Work Flow Characteristics of Best Cost Producers General Able to plan 6 weeks out Change is expected Continuous improvement programs CMMS Systems are integrated Early adaptors of technology Strategy to Competitive Advantage Statements of Department Goals / Objectives Specific Activities ities Work Orders have priority assignment KPIs posted Low Overtime (<5%) Strong adoption of CMMS Employee feedback Training / Cross-Discipline / Cross-Area CMMS procedures reflect technology utilization Asset failure history records Proactive root cause program 27-Jun-01, Slide 9

10 Asset Priority Concepts Operations cares about this number If I lose this, what is result to the process. Maintenance cares about this number as it keeps OPS running without reacting 27-Jun-01, Slide 10

11 Maintenance Task Example of a re-designed Installation procedures for common activities that involve AMS Suite Structured instructions Illustrations where possible 27-Jun-01, Slide 11

12 Asset Maintenance Blueprint M=Monthly W=Weekly D=Daily Number= X months AR = As Required PlantWeb Services Predictive Diagnostics Time-Based PM & Inspection Life Renewal PM Vibr ation analysis O il A nalysis In fra red Thermograp hy g Ultra sonics perf formance Mon nitoring/trending Mot or Analysis n off Diag nostic Scan Mec hancal offine In sp pection Elec trical Inspection lin e Stro ke Test Sys tem Test NDE Inspection Reli Fun ef Valve Testing ctional Tests Exte rnal Visual Insp ection In te rnal Inspection Cali bration Lub rication Mino r PM Majo r PM Com ponent Replace e ment Ove rhaul HRS Tota l M ain t. H o u rs p er Year Asset Description Asset ID # MPI 5 Control Air Compressor ER-67-CA-AC M M Control Air Compressor Motor ER-67-CA-M M Saltwater Booster Pump ER-6-SW-P M 3 6 AR AR Saltwater Booster Pump Motor ER-6-SW-M M Traveling Screen Wash Water Valve V54 ER-67-SW-V D AR Traveling Screen ER-67-SW-TS Screen Wash Pump Motor ER-67-SW-M M East Air Preheater ER-70-CBA-AH-70E 323 M 6 W M West Induced Draft Fan ER-70-FG-F-70WID 302 M W West Induced Draft Fan Motor ER-70-FG-M-70WID 302 M W HP Feed Water Heater ER-70-FDW-EX-77W EX 77W 302 M East Self Sustaining Aux Steam Regulator ER-60-AS-PCV D 12 AR AR AR AR Main Feed Reg Valve ER-70-FDW-LCV D 12 AR AR AR AR Main Gas Supply Solenoid Operated Valve (BER-70-G-SOV D 24 AR CO To Storage Reg Valve LCV75 ER-7-CO-LCV D AR AR AR AR 9.1 Main Fuel Oil Isolation Valve ER-60-FO-V AR CO Hotwell Recirc Reg Valve LCV78 ER-7-CO-LCV D AR AR AR AR 8.7 TA 61 Transformer ( ) ER-6ED-13-XFMR-TA M Circ Water [File Pump Name or Event] ER-6-CRW-P-61CWP AR AR 12 AR Circ Water 27-Jun-01, Pump Motor Slide 12 ER-6-CRW-M-61CWP AR 12 AR AR 5.9 Exist

13 CMMS and Asset Management

14 AMS Asset Portal 4.0 Powered by Meridium Key Value Points Incorporates AMS Suite into Meridium for asset strategy management Define and measure optimal maintenance and operational strategies that affect company KPI s Provides advanced analytics and decision support Integrate t information into your CMMS system Combine online diagnostics from AMS Suite with mobile data collection with Operator Rounds. Provides a complete solution to implement a holistic monitoring program Aligns the Tag world with the Asset world Deploy PlantWeb Services and the AMS Suite to improve performance and best practices in your plant 27-Jun-01, Slide 14

15 AMS Asset Portal v4.0 Powered by Meridium 27-Jun-01, Slide 15

16 AMS Asset Portal 4.0 Create customizable home page based on user responsibility and group membership notifications Automated rule based notification Facilitates online collaboration Link essential work practices and procedures Query any information stored in the system and track and graph specific problems in your own template Create and schedule reports and have them automatically sent to homepages or via Segment data for specific users or groups 27-Jun-01, Slide 16

17 Asset Portal 4.0 Provides Additional Value Metrics & Score Cards Create KPI s in graphical format to see how assets are performing and potential issues Use the results to improve best practices, optimize utilization, and reduce costs CMMS Interface Create manual work notifications when needed with your own recommendations Obtain work order history to understand past solutions that worked on assets Operator Rounds Define assets strategies and implement a monitoring program in operations Handheld application executes aspects of the asset strategy by monitoring i equipment performance and capturing condition data electronically in the field Asset Health Indicators User defined health values assigned to both assets and actions Provides a method for evaluating the effectiveness of an asset strategy 27-Jun-01, Slide 17

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