Installed Base and Life Cycle Management: Key for Optimizing Service Produktivity

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1 ABB Corporate Research, Ladenburg: Dr. Lothar Schuh VDMA Teleservice Forum/Frankfurt ABB AG Ladenburg, Dr. Lothar Schuh Installed Base and Life Cycle Management: Key for Optimizing Service Produktivity

2 Inhalt ABB Inc. ABB Corporate Research Service Solutions The three crucial aspects (service, life cycle, installed base) Standardized service components Normal service productivity Installed Base analysis Utilize untapped potentials to improve service productivity Internet of Things Conclusions ABB Month DD, YYYY Slide 2

3 ABB Inc. Overview ABB 12. September

4 A global leader in power and automation technologies Leading market positions in main businesses 124,000 employees in about 100 countries $32 billion in revenue (2010) Formed in 1988 merger of Swiss and Swedish engineering companies Predecessors founded in 1883 and 1891 Publicly owned company with head office in Switzerland September 12, 2011 Slide 4

5 Power and productivity for a better world ABB s vision As one of the world s leading engineering companies, we help our customers to use electrical power efficiently, to increase industrial productivity and to lower environmental impact in a sustainable way. September 12, 2011 Slide 5

6 How ABB is organized Five global divisions Power Products Power Systems Discrete Automation and Motion Low Voltage Products Process Automation $10 billion 32,600 employees $6.8 billion 17,500 employees $5.6 billion 25,600 employees $4.5 billion 20,300 employees $7.4 billion 27,100 employees (2010 revenues) ABB s portfolio covers: Electricals, automation, controls and instrumentation for power generation and industrial processes Power transmission Distribution solutions Low-voltage products Motors and drives Intelligent building systems Robots and robot systems September 12, 2011 Slide 6

7 Power and automation are all around us You will find ABB technology orbiting the earth and working beneath it, crossing oceans and on the sea bed, in the fields that grow our crops and packing the food we eat, on the trains we ride and in the facilities that process our water, in the plants that generate our power and in our homes, offices and factories September 12, 2011 Slide 7

8 Research & Development ABB 12. September

9 ABB Corporate Research Center in Ladenburg One of 7 ABB Research Centers ca. 110 employees und ca. 25 Students Publisher papers annually ~110 First Filings / Patente ~55 The 4 Core Areas Factory Automation Automation for Power Service Solutions Automation Architectures & Engineering Month Pressetag DD, im YYYY ABB Slide Forschungszentrum, November 2009 Slide 10

10 R&D Focus Area Service Solutions What we deliver Installed Base - and Life Cycle Management: Key for Optimizing Service Produktivity September 12, 2011 Slide 11

11 Installed Base and Life Cycle Management: Key for Optimizing Service Produktivity ABB 12. September

12 The three crucial aspects Installed Base - and Life Cycle Management: Key for Optimizing Service Produktivity September 12, 2011 Slide 13

13 What means industrial service? Installed Base - and Life Cycle Management: Key for Optimizing Service Produktivity Industrial service deals with machines, systems, equipment, processes: Maintenance Inspection Repair Overhaul, retrofit Engineering Optimisation Consulting Operation September 12, 2011 Slide 14

14 What means industrial service? Complexity to execute service Installed Base - and Life Cycle Management: Key for Optimizing Service Produktivity Complex equipment Specialists for devices: Electronics Software Mechanics Rotating machines Process control An industrial site requires Appropiate expert (cert.) Experience Right tools Spare parts September 12, 2011 Slide 15

15 Optimize service productivity Installed Base - and Life Cycle Management: Key for Optimizing Service Produktivity Influencing factors: Human factors Processes KPIs: Quality Time Cost Goal: Competitiveness Innovation Actions Modularization of Services Standardization Process improvement Peoples qualification September 12, 2011 Slide 16

16 Optimize service productivity Some of our aspects of Service Productivity Installed Base - and Life Cycle Management: Key for Optimizing Service Produktivity Shift from emergency-call to planned maintenence Customer satisfaction Short response time in case of a customer call Seamless IT support infrastructure Deliver more than customer expects Value based services Strategic coop with customer September 12, 2011 Slide 18

17 What means life cycle management Take Care over the entire time of life Installed Base - and Life Cycle Management: Key for Optimizing Service Produktivity September 12, 2011 Slide 19

18 What means life cycle management Take Care over the entire time of life Installed Base - and Life Cycle Management: Key for Optimizing Service Produktivity Service engineers have to cope with September 12, 2011 Slide 20

19 What means Installed Base Installed Base (IB) All installed products and - systems Installed Base - and Life Cycle Management: Key for Optimizing Service Produktivity ABB: value of roughly 200 Bln $ Service is focussed on the IB IB management: Key question: how many % of the IB is managend by ABB Goal: increase the managend fraction of the IB Funktional Aspekts The ideal case is a IB data warehouse September 12, 2011 Slide 21

20 First key component Installed base data warehouse Installed Base - and Life Cycle Management: Key for Optimizing Service Produktivity Knowledge in one view Where are my customers Which equipment do they have How old is the equipment Service events / history What is the technical condition of the equipment Searchable In future automatic extraction of case-related information September 12, 2011 Slide 22

21 Installed base management IT infrastructure Local benefit from global knowledge Installed Base - and Life Cycle Management: Key for Optimizing Service Produktivity ABB Business Intelligence Concept Join information from entire Installed base Statistical analysis Prediction of events Best Practise (what has been done in comparable cases elsewhere) Derive service strategies September 12, 2011 Slide 23

22 Second key component Standardized service components Service/maintenence component description Technical Tools Tasks Expertise Spares Cost September 12, 2011 Slide 24

23 The simplified service/repair job Normal service productivity: no installed base data Invoicing Call Center Customer-call Problem analysis Repair/Maintain On Site Visit Solution plan September 12, 2011 Slide 25

24 Reality: ad hoc customer request How to utilize Untapped Potential? We also missed 5 years maintenance for this motor. Can you do it now? Sorry. I don t have the spare parts with me, I need to come back! September 12, 2011 Slide 26

25 Potential to improve service productivity Up to 20-30% of site visits: customer ask for further help And we missed 5 years maintenence for this motor. Can you do his now? Sorry. I don t have the spare parts with me, I need to come back! Surprised by the untapped potential Service engineer has not the technical expertise Spare parts are not available at this moment Service engineer must cope with this Untapped Service Productivity Usually thats the customers experience Service Productivity: How to get prepared to execute additional ad-hoc tasks? September 12, 2011 Slide 27

26 Installed Base analysis in advance Asset biography / case-related information

27 Problem analysis for this particular motor Look into Installed Base Management system Commissioning Maintenence Schedule Equipment Biography 6 years old 5 years regular maintenence is missing Prepare catching up the 5 years maintenence Life cycle phase September 12, 2011 Slide 29

28 Identify customer value Installed Base Analysis Installed Base Analysis Fix&Repair September 12, 2011 Slide 30

29 Potential / reliability / problem analysis Compare required and executed maintenance Missing Regular Maintenence: Untapped Potential September 12, 2011 Slide 31

30 Standardized Service Items: Modules to compose case-specific maintenance From reactive to preventive maintenance Probability thar problem occurs due to missing maintenance September 12, 2011 Slide 32

31 Prepared to execute the ad-hoc customer request And we missed 5 years maintenance for the motor. Can you do his now? I know and I am prepared do it right now! September 12, 2011 Slide 33

32 Prepared to execute the ad-hoc customer request We have other motors and I assume some of them need maintenance I know which ones and I am prepared to do it right now! September 12, 2011 Slide 34

33 Other motors at customers site

34 Extended Installed Base analysis in advance Compare required and executed maintenence September 12, 2011 Slide 36

35 Identify customer value Installed Base Analysis September 12, 2011 Slide 37

36 Tomorrow s IT infrastructure Internet of Things Equipment has an IP-address Equipment reports automatically health information This is done in a standardized way Data are basis for information: what are the current needs Example: if failure A occurs, failure B occurs with very high probability Bi-directional communication with the equipment ABB R&D is preparing for this innovative service workflows September 12, 2011 Slide 38

37 General Conclusions Knowing equipment biography leads to preventive / proactive service anticipation of further customer requests good practise in executing additional maintenance/repair A process is needed to manage this (this is being developed at ABB) This process has to be automated This results in increased service productivity September 12, 2011 Slide 39

38 Conclusion: Optimize service productivity Influencing factors: Human factors Processes KPIs: Quality Time Cost Goal: Competitiveness Innovation Actions: Modularization of Services Standardization Process improvement Peoples qualification The example presented here shows that all these factors are important for us. All of them are addressed!! September 12, 2011 Slide 40

39 September 12, 2011 Slide 41 Thank you for the attention

40 ABB 12. September

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