DOWNTIME MONITORING WHITEPAPER

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1 DOWNTIME MONITORING WHITEPAPER Abstract: A business paper which considers how the professional integration of a Citect Plant2Business Downtime Monitoring Solution provides benefits to capital intensive industries that can harness automatic data collection and web-based reporting. DTM White Paper v2.doc 1

2 About the Authors This document was written by Tony Watkins, Applications Manager, Industrial Information Management, Citect Pty Ltd About Citect Citect Pty Ltd is a worldwide leader in industrial automation and information management. Its Citect and Plant2Business software are complemented by professional services, customer support and training. These solutions are enhanced by strong partner programs and are sold in numerous industries, including water and waste water, facilities monitoring, gas pipelines, mining, dairy, food processing, pharmaceuticals, and power distribution. Citect is headquartered in Sydney Australia, has offices in Australia, USA, Europe, China and Africa, and its products are distributed in more than 40 countries worldwide. For further information, visit Citect Pty Ltd. All rights reserved. The information contained in this document represents the current view of Citect on the issues discussed as of the date of publication. Because Citect must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Citect, and Citect cannot guarantee the accuracy of any information presented after the date of publication. This white paper is for informational purposes only. CITECT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS DOCUMENT. Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in, or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) or for any purpose, without the express written permission of Citect Pty Ltd. Citect may have patents, patent applications, trademarks, copyrights or other intellectual property rights covering subject matter in this document. Except as expressly provided in any written license agreement from Citect, the furnishing of this document does not give you any license to these patents, trademarks, copyrights or other intellectual property. Citect, CitectSCADA, CitectHMI, Plant2Business and Plant2Net are either registered trademarks or trademarks of Citect Group Corporation in Australia and/or other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners. DTM White Paper v2.doc 2

3 Contents About the Authors...2 About Citect...2 Contents...3 Introduction...4 Opportunity...4 Background...4 Capital Investment versus Increased Efficiency...5 How to Increase Revenue Using Downtime Monitoring...6 Planning...6 Implementation...8 Training...8 Consulting...8 DTM White Paper v2.doc 3

4 Introduction Opportunity Recent economic times are leaner for many industries, demanding more effective use of facilities and people. A Citect Plant2Business Downtime Monitoring Solution provides major enhancement to managing plant downtimes by providing a clear view of cause patterns, a structured consistent approach to measuring production losses and professional service providers to rapidly configure an application to suit the plant. Background For many years, manufacturing companies have focused on implementing ISO 9000 quality standards, ERP implementations and supply chain integration. There is now a huge wave forming that is placing a major focus on raising the productivity during the actual manufacturing and processing operation and more and more plants are catching this wave. This is being driven by business objectives to boost profitability and shareholder value. The actual initiative can have many different names but it typically relates to one of the following: Lean Manufacturing OEE (Overall Equipment Effectiveness) TPM (Total Productive Maintenance) Continuous Improvement Asset Utilization Downtime Tracking Productivity or Efficiency Improvement DTM White Paper v2.doc 4

5 Capital Investment versus Increased Efficiency Take the example of a $1 billion food manufacturing company with ten manufacturing plants. In an industry that grows 3% per year, this company will do well to grow its gross sales by 5% or $50 million. To produce that extra 5%, the company will have to invest in capital equipment, labor, consumables, etc. The expected after-tax return on the additional $50 million in gross sales probably results in a net profit of about $2 million or 0.2% of gross sales. Imagine that the company came up with a low-cost way to raise the productivity of its manufacturing operation by 3%. This means the company can produce $30 million in additional product by using the same equipment and labor as before, and with a likely bonus reduction in scrap and rework. Other than raw materials going into the process, which accounts for 20% or less of the product value, most of the savings, (approximately $20 million), will go to the bottom line. The company gains other benefits, namely the ability to meet production schedules, reduce turnaround, improve first-pass quality and reduce inventories. Most companies implemented PLC based control and supervisory systems which resulted in major gains in effective equipment control. But SCADA functionality alone cannot address the issues that result in manufacturing efficiencies of only 60-70% and OEE values of less than 50%. The next generation of improvements will come from the adding of more effective production control to plants. The Citect Downtime Monitoring Solution provides a software application to accurately characterize the utilization of production systems, which in turn allows managers to continuously improve the productivity of their facilities. Compared to manual downtime recording systems or the home-grown PLC/SCADA-based downtime tracking systems, Downtime Monitoring provides the functionality required to enable a structured approach to continuous improvement. Downtime Monitoring is suitable for a variety of industries and will provide benefits for companies involved in food & beverage, mining, consumer products, pharmaceuticals, roofing products, steel, glass, automotive, publishing and other industries. Downtime Monitoring can suit the requirements of those needing basic functionality as well as those with complex systems. The package can be applied into those organisations that have plants using various levels and brands of technological sophistication. Downtime Monitoring works equally well whether the client has: Only networked PLCs for control Networked PLCs and operator interface terminals (like PanelView) Networked PLCs and SCADA (Citect and Non Citect) DCS DTM White Paper v2.doc 5

6 How to Increase Revenue Using Downtime Monitoring The Downtime Monitoring solution involves the Service provider working with the client s production management to ensure that the particular aspects of the business are incorporated in the systems configuration. Skilled Service provider One of the most significant influences on the benefit gained from installing a Downtime Monitoring system is the experience and capability of the engineer that does the work. Citect s Professional Services has a team of engineers with vast experience covering a large number of industries. This, combined with their knowledge of Industrial Information Management (IIM) can be of great value to a project, significantly reducing the risks associated with implementation. Planning Typically requires meetings with people from the Operations, Plant Engineering, Quality and Maintenance teams to understand the clients business. The System Integrator uses this information in part to help the client develop their objectives and to translate these into a Downtime Monitoring system for the facility and an implementation plan or a functional requirements specification. This planning phase delivers for the client a working document that covers: Executive Summary Purpose Business Objectives of Downtime Monitoring System Scope of The Downtime Monitoring System Referenced Documents Business Context Operational Information Flows Time Usage Model Key Performance Indicators Context of the Downtime Monitoring System Process Context Downtime Reporting Units Cause Location (Plant Hierarchy) Downtime Cause Codes Downtime Classifications Reports Standard and Custom DTM White Paper v2.doc 6

7 The P2B Downtime system allows the time usage model, cause codes and terms utilized, to be configured for each facility. Time Usage Models can easily be customized to suit the way a plant is managed as shown by these two very different customer examples: Calendar Time Reliability Unplanned Maintenance Availability Planned Maintenance Utilisation (OEE) Process Downtime Real Downtime: (No Production) Virtual Downtime: (Rate / Quality Loss) Figure 1: Time Usage Module 1 Figure 2: Time Usage Module 2 Completion of the planning allows the service provider and client to develop a clear understanding of what will be done and what the outcomes will be making implementation a fast, efficient and productive phase DTM White Paper v2.doc 7

8 Implementation The major portion of implementation of a Citect Plant2Business Downtime Monitoring solution will, as a result of the design done in the Planning phase, be a quick and straightforward activity. The key steps involved include: set-up of the computer for the Plant2Business and Plant2NET Server, loading of the Downtime Monitoring software, configuration of the business rules and Site Acceptance Testing (SAT). Once this is complete, experience has shown that it is very beneficial to retain access to the service provider to fine tune the configuration and to work with the client to rapidly implement minor adjustments that will best ensure fast take-up by all involved. Training Consulting Training has two aspects one is the training of the systems end-users while the second is the training of the system administrators. Continuous improvement of production efficiencies will mean that the configuration of the Downtime Monitoring system will continue to mature. The service provider will provide training to the level the client requires, generally this is such that all configuration and administration can be done by the client with only specialized enhancements that may be valuable being done by the service provider in the future. Training related to the following functional areas will be covered: Software installation and system administration Use of the Citect Builder based Downtime Monitoring configuration to build or maintain a Downtime Monitoring application Training for plant operators or lead persons Training for report users (e.g., line leads and supervisors, operations management, quality, maintenance and engineering) The Continuous Improvement cycle for many facilities benefits from involving the engineers from a service provider like Citect s Professional Services. These engineers work with many companies and thus have a broad experience that can often accelerate the rate at which benefit is gained from Industrial Information Management (IIM) systems like Plant2Business Downtime Monitoring. The maintenance of an ongoing relationship between client and Professional Services will help identify when other IIM packages will improve production efficiency for the customer Other Modules include Plant2Business Metrics (Production, Quality and Cost accounting modules), Plant2Business Tracking & Tracing, Plant2Business Maintenance. For further information on Citect products and services, visit DTM White Paper v2.doc 8

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