DECISYON 360 ASSET OPTIMIZATION SOLUTION FOR U.S. ELECTRICAL ENERGY SUPPLIER MAY 2015

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1 Unifying People, Process, Data & Things CASE STUDY DECISYON 360 ASSET OPTIMIZATION SOLUTION FOR U.S. ELECTRICAL ENERGY SUPPLIER MAY 2015 Decisyon, Inc All Rights Reserved

2 TABLE OF CONTENTS THE BOTTOM LINE 1 THE PARTNERSHIP 1 CHALLENGES 1 IMPLEMENTATION 2 RETURN ON INVESTMENT 5 ABOUT DECISYON 5 i

3 THE BOTTOM LINE A global leader in transforming and running business processes and operations has pioneered the development and delivery of leading analytic based solutions for engineering, manufacturing, energy, and other assetintensive industries. In 2014, this managed services provider chose the Decisyon Corporation as its technology partner for delivering Industrial Asset Optimization (IAO) Services to their existing and prospective customers. Their initial use case for Decisyon 360 is in the clean energy industry sector and embraces the concept of a Smart Wind Farm for one of their customers, which is one of the largest electrical energy suppliers in the United States. The managed services provider wanted to provide their customer with an asset optimization solution for monitoring windmill farms (wind farms) from a central location in order to do predictive maintenance, performance optimization, and failure prediction. Their goals for the solution were to help the energy supplier to reduce downtime and optimize operations in their wind farms. The Smart Wind Farm solution encompasses all aspects of monitoring and maintenance, from data aggregation through field team workflows. The managed services provider needed a flexible, easy-to-use platform that could manage large volumes of data in different formats and structures, often in real time coming in from multiple locations, turbine sensors, and disparate systems. The data needed to be brought into one central location for analysis. They also wanted to be able to make key operational decisions collaboratively in real time and immediately execute those decisions. After evaluating internal systems and a diligent review of other products on the market, the managed services provider selected Decisyon 360 as the only Internet of Everything (IoE) platform that met their current requirements, as well as providing the tools and functionality to drive future IoE-related needs. The Smart Wind Farm solution built with Decisyon 360 offers the following key functionalities: Aggregates device and machine data from a multitude of sources into one place Uses predictive analytics that are both available in Decisyon as well as integrated with leading mathematical modeling tools in order to minimize downtime, increase capital efficiency, and reduce lost revenue Accelerates cross-team collaboration and decision making beyond traditional s and conference calls, to respond contextually around the live data at the moment when issues arise, avoiding costly delays Enables mission-critical decisions on assets to be made, using real-time data THE PARTNERSHIP The electrical energy supplier engaged their managed services provider during 2014 to analyze and create a Smart Wind Farm. Their Smart Wind Farm vision is based on optimizing methods used to manage and analyze the enormous volume of data coming from sensors across its many wind farm assets. From improvements in asset visibility to reporting to operational performance to maintenance and ultimately, to power output compliance, the managed services provider and Decisyon continue to innovate with the electrical energy supplier. Through this key partnership with Decisyon, the managed services provider is able to deliver on the energy supplier s vision of building an optimized Smart Wind Farm with real-time access to machine performance, advanced analytic modeling to improve operations, and true team collaboration enabling the execution of enormous efficiencies and savings. CHALLENGES The energy supplier has several business challenges that were not met before the Decisyon solution was developed. For example, the energy supplier was challenged to predict the remaining useful life of its wind turbines and their components. It also did not have an effective mechanism to precisely forecast the power output, maintenance planning, work effort, and related revenue of their renewable energy operations. Before engaging their managed services provider and Decisyon for a solution, the energy supplier was faced with: Several hundred Wind Turbines coming out of warranty during the next several years Limited visibility of the maintenance needs for turbines out of warranty Difficulty accurately forecasting the maintenance expectations now and in the future Inability to proactively increase energy revenue due to maintenance and performance gaps Inefficient process management caused by their non-scalable, error prone, and manually intensive spreadsheet, with data gathered only on a monthly basis The energy supplier needed to transition from reactive to predictive processes, which they found in the Decisyon Smart Wind Farm solution. For each wind farm, the managed services provider estimates that their customer will realize the following business benefits: Increase revenue by about 5% through prevention of lost revenue caused by downtime Reduce inventory and labor costs by 20% Create 10% savings by optimizing warehousing and logistics 1

4 IMPLEMENTATION Using the Decisyon 360 platform, the managed services provider delivers a unified Smart Wind Farm solution to their customer that provides all of the needed functionality in a unified environment. Decisyon 360 is used to manage a fleet of wind farms, the turbines within the farms, the parts and components of the turbines, and the maintenance teams assigned to repair them. The employees in different departments, such as engineering and maintenance, and with different responsibilities, share the platform. By using Decisyon 360 s pre-defined connectors, they have the ability in one place to see a unified view of the data without having to extract, translate, and load data from multiple source systems. The Smart Wind Farm merges structured and non-structured data from an Historian system, an enterprise asset management system, asset detail repository (SQL Server), Google maps, weather widgets, various manuals, and other unstructured data. Figure 1: Decisyon 360 Smart Wind Farm Solution Main Page Performance Intelligence The Dashboard (Figure 2) gives executives an overview of the business through a graphical dashboard showing critical KPIs as well as Actual and Target values. The entire business or individual wind farm sites can be viewed to compare and evaluate enterprise-wide, fleet-level, site-level, or individual turbine performance. The Smart Wind Farm solution consists of seven functional areas: KPI Dashboard Reliability Real Time Monitoring Asset Detail Engineering Performance Analytics Maintenance & Scheduling Real Time Monitoring and Reliability Reliability and Real Time Monitoring provide an overall view of turbines and instant access to current and historical performance by farm, turbine or component. Here, the reliability engineer can quickly discover asset performance and cost and drill down into asset details. Reliability delivers improved planning and decision making through collaboration. Benefits delivered by Real Time Monitoring and Reliability are: Ability to quickly discover asset performance and cost Insight to accelerate revenue and reduce costs within a single, unified platform Dynamic aggregation of disparate data, across time, from multiple systems including numerous spreadsheets, PI data, Reliability Reports (Figure 3), Fault Matrices, etc. and centralized view of relevant KPIs for managing the wind farm Figure 2: Smart Wind Farm Executive Dashboard Benefits of the KPI Dashboard include: Immediate access to operational performance at all levels including drill down to the component level Increased compliance and performance against energy contracts More efficient overall enterprise operations Figure 3: Smart Wind Farm Reliability Report Easy follow-up with Engineering and Maintenance teams: significant value created by execution of tasks and processes for investigation of problems with outliers and deeper analyses and recommendations for improvement Single source of truth: enterprise alignment and improved data quality 2

5 Asset Detail Asset Detail provides a graphical representation of turbines and all 70 components, graphical CAD diagrams of the actual turbine and components, and a unified view of inventory and remaining useful life data (Figure 4). Asset Detail drives Performance Engineering and modeling using all the available data about all assets. It gives the user a dynamic view of assets and components within the gateway for Engineering modeling, as well as an overall view of turbines, with instant access to current and historical performance by farm, turbine or component. It is a single point of Maintenance management across the enterprise, and a tactical gateway to execute changes: users can create tasks for the Maintenance team and request approval to apply configuration to the work order process. Asset Detail provides the energy supplier with visibility into asset economics. Engineering Engineering provides the capability for engineers to focus on the turbine data and helps identify potential outages. The engineer can click on a turbine in a map display to view the data in chart or graph format, generate reports, and collaborate in context of specific data points related to turbines. He can drill down into the individual part and component levels to identify the source of the problem (Figure 5). Tasks can be assigned and individuals can collaborate in context of a data point, which eliminates s, spreadsheets, and phone calls. Figure 5: Engineers can drill down to the individual part level to identify the source of a problem Figure 4: Asset Detail provides a single point of control Benefits delivered by Asset Detail are: Single point of control for Wind Turbine asset configuration Immediate view of the truth Greater understanding of failure predictions through direct integration of advanced analytics Convenient and accurate prediction of savings and ROI calculations across the fleet and components using analytical models to determine remaining useful life (RUL) of components and turbines Ability to accelerate operations and realization of uptime (revenue) or asset optimization (savings) Transformational value achieved for the enterprise through direct execution into the Maintenance process Overall supply chain optimization via the mechanism to enable revenue and cost savings goals Benefits delivered by Engineering are: Dynamic view of the asset and its components; each object in the asset detail will have a dynamic component in the Engineering detail Single point operational reporting; Vibration, Oil inspection reports Asset health monitoring at the component level; design, implement, and report KPIs Gateway for Engineering modeling; total data access to entire fleet Advanced analytics in R, Matlab, etc. Drive Maintenance Operations; collaborate with Maintenance team, determine/forecast Maintenance needs 3

6 Performance Analytics Performance Analytics drives Performance Engineering by providing an overall view of all available data about assets and a mechanism to optimize them. It gives visibility into engineering solutions and ROI, cost and revenue, as well as downtime. Within Engineering, users can perform best in class comparisons, emulating best performing turbines across the wind farm; run ROI simulation models to understand forward-looking impact to performance and maintenance benefits (Figure 6); monitor ROI after implementation of optimization plans; and perform dynamic correlation of best performers to determine suspected factors (pitch, gearbox, etc.). The user can create dynamic, preventable maintenance processes to reduce corrective maintenance inefficiencies, decrease turbine downtime, as well as create models to reduce Logistics and Materials costs. Through Engineering, the user can drive inventory, scheduling, maintenance, and logistics across the enterprise. Maintenance Maintenance provides a single point of maintenance management across the enterprise, encompassing engineering operations, business operations (HR, Logistics, Supply Chain, and Finance), a master data view, and coherent data governance (Figure 7). Figure 7: Maintenance provides a single point of maintenance management across the enterprise There are multiple data sources required for the maintenance team, and Decisyon unifies the user experience around all of them, allowing users to seamlessly move back and forth through the data, and efficiently take action. These systems include traditional business databases, HR systems, SAP, and the IoT data from the windmills. As a result of the data being brought into one place by Decisyon 360, the users have significantly reduced the time in handling maintenance requirements. Figure 6: Using Performance Analytics to apply the Learning Model & increase ROI on underperforming assets Benefits delivered by Engineering are: Optimized performance across enterprise level, fleet level, site level, asset level, and component level Capability to benchmark operational best performers within the fleet Increased ROI on underperforming assets, by applying the solution provider s Learning Model based on best performing assets Decreased turbine downtime from reduced corrective maintenance inefficiencies resulting from dynamic, preventative maintenance processes Reduction in Logistics and Materials costs through model creation The Maintenance manager can factor in wind and weather to determine if maintenance on upcoming days is advisable, view inventory levels flagged for low quantities, or to see if additional parts must be ordered to complete the required maintenance. In the Smart Wind Farm solution, the maintenance manager has a tool to use to determine whether maintenance makes economic sense. For example, in one model, they have the cost/benefit of the additional overtime necessary for a maintenance person to perform a repair versus the hourly revenue generated by the turbine. They can easily determine whether to schedule or delay a repair based on the labor costs in order to maximize revenue without building complicated models in Excel or other systems. Benefits delivered by Maintenance are: Single point of Maintenance management across the enterprise Master data view and coherent data governance Gateway to execute all asset changes Enterprise level maintenance optimization: execute schedules, inventory, logistics, and other processes Optimized inventory: discover obsolete inventory, use advanced analytics to predict excess inventory, and use rolling average standard deviation to predict future stocking levels required for soon to be obsolete inventory Streamlined workflows: open and close work orders and link fault codes to specific work orders Unified and improved analysis and trend identification Real-time monitoring/reconciling of work activity Mobile access by field maintenance personnel with built-in, automated data validation from field to corporate systems, human to machine 4

7 RETURN ON INVESTMENT Through the combined deployment of the solution provider s managed services and the Decisyon platform, the energy supplier expects to attain a $10M return on investment from a single wind farm over the span of several years. During the planned rollout to all seventeen of the energy supplier wind farms, the expected financial benefit is expected to grow at least tenfold. The return on investment will be attained through additional revenue from a reduction in downtime, and savings through optimized operations. Details on the ROI are provided below. Reduced Downtime The managed services provider and Decisyon project that the energy supplier will increase revenue significantly over five years, by preventing lost revenue caused by wind farm downtime (a roughly $1.25M gross margin creation per wind farm). A 5% improvement in revenue per wind farm is projected from optimized performance of turbines, through increasing preventive maintenance and decreasing corrective maintenance. This revenue improvement will come from several key functionalities built in to the Smart Wind Farm solution: Turbine Optimization Analysis that will enable the energy supplier to apply the best performing asset models to lesser performers Sensor Analysis with built-in interface to R, standard deviation and correlation Maximized revenue from Operations to ensure compliance with contracts between the energy supplier and utilities (Power Purchase Agreement compliance) Optimized Operations The managed services provider and Decisyon project that the energy supplier will realize key savings over five years from the Smart Wind Farm Solution (20% cost reduction per wind farm) resulting from lower inventory and labor costs, and increased maintenance efficiency; and 10% improvement per wind farm through warehousing and logistics optimization. These cost reductions and savings will come from several key functionalities built into the Smart Wind Farm Solution that enable: Optimized schedules, logistics, parts Reduced excess inventory Obsolescence of old components Factoring in wind and weather Reduced labor costs ABOUT DECISYON Decisyon, Inc. provides enterprises, manufacturers and global brands the only solution platform for rapidly building intelligent unified applications for the Internet of Everything. Founded in 2005, Decisyon is now used in more than 200 companies globally across numerous industries. The company is headquartered in San Francisco, CA. Corporate Headquarters 795 Folsom Street, 1st Floor San Francisco, CA European Office Viale P. L. Nervi Directional Center Latina Fiori Torre 6 Glicini Latina, Italy For More Information info@decisyon.com Decisyon, Inc All Rights Reserved 5