New BGP Performa Service for Advanced Software

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1 2014 Honeywell Users Group Americas New BGP Performa Service for Advanced Software Gary Jubien: Americas AS Aftermarket Services Leader 1

2 Advanced Software Solutions Portfolio 2 Document Software control number Solutions for Better Safety, Reliability, Efficiency and Sustainability

3 Lean on Us: Aftermarket Services Understanding future requirements and the safeguards to future-proof your investment Change Keeping advanced software up-to-date, secure and reliable during day-to-day operations Maintenance Optimize Ensuring configurations respond to changes in the process or plant so the applications continue to provide benefits Support Services and troubleshooting over the lifetime of the application to respond to and resolve unexpected incidents and problems 3

4 Market Drivers for Industrial Organizations Must continuously improve operations and respond to changing conditions Strive to sustain performance Charged to safeguard investments Drive to reduce total ownership costs 4

5 Potential Benefits to Be Realized* Improve Safety Reduce incidents by up to 40% Increase operator competency Support continuous improvement Improve Reliability Improve plant availability 3-8% Preserve and extend asset life Reduce maintenance costs 3-5% Improve customer service 5-15% Improve Efficiency Reduce off-spec material up to 50% Reduce transition material up to 30% Reduce catalyst consumption up to 1% Improve throughput 2-8% Reduce energy use 5-10% Improve forecast accuracy 4-20% Reduce inventory % Reduce demurrage by 10-15% Improve Sustainability Reduce green house gas emissions by 25% Ensure compliance standards Reduced total cost of ownership Reduce energy consumption through improved efficiency >$5B US in measurable benefits has been added to our customers bottom-line * Results based on past customer experience 5

6 Annual Benefits $Millions Typical Benefits of Advanced Applications 7 6 Typical payback year Typical payback years Typical payback years Typical payback years Typical payback years Typical payback years Operator Training & Simulation, Asset Management Production Management Advanced Planning & Scheduling Blending & Movement Automation Operations Management Advanced Process Control & Optimization Typical annual site benefits: $10M - $50M (Actual Benefits Depend on Industry & Plant Scale) Sustaining These Benefit Levels is the Real Challenge! 6

7 What Happened to the Application and Why? Too often, an application that was initially successful falls into a state of disrepair over time Reasons for this are many but may include: Resource issues: Limited or undertrained staff Insufficient maintenance or training budgets Competition for resources (new projects) High turnover of operations personnel Hardware/software upgrades or obsolescence Frequent plant modifications 7

8 Benefits (as % of original) The High Cost of Deferred Maintenance Initial investment delivers good benefits and levels of performance Potential for rapid degradation of benefits without proper monitoring and maintenance 80 % Position after circa 12 months No Maintenance Basic Maintenance Reactive maintenance Proactive Maintenance 50% loss 20% loss 10% loss 5% loss 20-0 No Maintenance Basic Maintenance Reactive Maintenance Proactive Maintenance Opportunity Assessment Time (months) Opportunity Assessment +5% gain Related to sample data: Actual results will depend on many factors, so indicative only 8

9 Servitization Continuum Sustain Benefits with a simple tiered services portfolio Services Supporting Customer BGP Performa KPI-Driven services aligned to achievement of business goals Honeywell experts provide remote monitoring of performance Honeywell focuses on the systems so the customer can focus on operations BGP Optima BGP Performa Services Supporting Product BGP Plus Additional labour based engineering services BGP Telephone & online S/W patches and upgrades Documentation updates BGPPlus (Formally EBP) BGP BGP: Plus: Performa: Driven Focused by on complexity reliable delivering performance of superior the Application, of Performance Applications, the rate through of innovation augmented the combined and by capability scheduled frequency of engineer of both new S/W led Applications releases activities and expert services On demand technical services for non-periodic activities 9

10 Common drivers for BGP Performa I want to sustain application performance and I already have in-house resources to tend to problems as they arise I need Honeywell s help to drive proactive performance monitoring and to help develop my in-house expertise BGP Performa is a multi-year service that delivers value by Providing diligent monitoring of performance metrics with Alerts and appropriate recommendations from experts 10

11 BGP Performa: service methodology 1 ASSESS and MONITOR PERFORMANCE Honeywell conduct audits to assess health of systems, applications and overall performance = Precursor to establish areas for remediation 2 DEFINE PROACTIVE SUPPORT PLAN A sustainable remediation action list is created to address areas of vulnerability = Precursor to resolve gaps and issues 3 MULTI-YEAR SERVICE IMPLEMENTATION Honeywell delivers the Performa Service elements (to be detailed in following slides) 11

12 What does BGP Performa deliver? 12

13 What does BGP Performa deliver? Honeywell deliver the confidence that the customer s system is performing better and more effectively than ever before BGP Performa Metric Responsibilities Support Maintain Optimize Response time Resolution time Incident & Uptime reporting S/W Patches and Updates Security & AV updates Sustain Performance of the application/s Training recommendations Track, Measure and Improve Change Assessments / Audits Proactive Change Management Top level metrics (compatible with Assurance360) 13

14 What does BGP Performa deliver? Honeywell will minimize incidents by proactively identifying issues and guiding on appropriate actions Service request response time and resolution tracking will improve resolution times and reduce incidents Focused attention to vulnerabilities will help prioritize the actions needed to remain aligned to customers goals Identification, Guidance and Competency Management 14

15 What does BGP Performa deliver? Honeywell experts will remotely monitor performance and provide proactive service management Diligent remote monitoring of performance metrics and the lead indicators likely to impact key KPIs Reactive alarming on imminent events and on trended metrics Proactive expert data analysis to identify performance issues, longer-term trends and to assist in planning Connect, Monitor, Predict and Support 15

16 What does BGP Performa deliver? Honeywell will ensure system changes work well and continue to deliver against expected objectives Assist with planning of Software Migrations and process changes Evaluate and recommend planned changes to achieve business goals Participate in application reviews Plan, Test and Advise 16

17 What does BGP Performa deliver? Honeywell will provide regular status updates and recommendations appropriate to the different needs of stakeholders Honeywell provide regular status updates, recommendations and prioritised tasks. Established monthly, quarterly and annual reporting schedule Deliver appropriate information to different stakeholders and users Periodic site review meetings to evaluate metrics and address gaps 17 Status, Alerts and Recommendations

18 BGP Performa: System Health Storage Rate URT Service Servers Comms RDI s Historian Tags App Execution PHD Profit Suite SOLUTION HEALTH SYSTEM HEALTH: Underlying System MEMORY CPU DISK NETWORK DATA EVENTS Sufficient Memory CPU Usage Server capacity Saturation Loading & buffers Repeating errors Memory Leaks CPU Capacity Server performance Firewall Databases Log scavenging 18

19 Performa: System Health examples Proactive alerts for hardware/operating system issues Server EAS Nodes Dashboard views help identify hidden system problems In one study, System Health & Network issues were the root cause of >50% of the customer s application performance issues 19

20 Performa: Application Health examples Active monitoring of underlying components and advanced software inputs Control Loops Embedded History Data Communications Real-time Interfaces Program Logs Application Health ensures that the underlying infrastructure and application components fully support optimal application performance. 20

21 Performa: Performance examples Aggregated Portalbased Dashboard Views of Performance Metrics Monthly Reviews and Recommendations by Performa Service Leads Proactive Run-time Performance Alerts Performance Metrics, Expert Recommendations, and Proactive Alerts enable Improved Application Results. 21

22 Performa, a common Honeywell offering Performa Metrics LSS A/S Response time Resolution Time S/W updates & upgrades Incident reduction Cyber Security Alarm Rationalization Application Health and Performance Loop tuning Training gaps Successful changes Honeywell s Performa service programs offer a proven approach designed to improve business performance while addressing the complexity of control systems. By collaborating with you, we can offer KPI-driven services that align with your goals, ensuring best practices are in place across the entire spectrum of your process control system. The result is better performance and reduced risk whilst maximizing the return on your investments. 22

23 What are key benefits of BGP Performa? Improves Total Cost of Ownership Faster incident response and Resolutions Reduced number of incidents and increased uptime Management of change and technology upgrades Cyber Security protection Improves Operational Excellence Customers can focus on their core competency Honeywell guide the customer to manage results Performance management to sustain benefits Application and process loop optimization Alarm rationalization Improved skills development 23

24 BGP Performa on 1 slide D DEDICATED PERFORMA SERVICE LEAD O OVERSIGHT OF KEY KPIs L LONG-TERM GUARDIANSHIP L LEVERAGE HONEYWELL s EXPERTISE A ALERTING AND TRENDING R REMOTE PERFORMANCE MONITORING S SUSTAINED $ BENEFITS 24

25 Example: Finch Paper Glens Falls, NY Objective: Improve Profitability of the Bleach and Chlorine Dioxide Plants Solution: Components: Benefits: Honeywell Profit Controller Technology, with Aftermarket program designed to ensure applications are kept at peak performance. Remote Data Monitoring Proactive Notifications/Alerts Performance Reporting Monthly Teleconference Meetings On-Site Services Bleach Plant: Reduced Chlorine Dioxide and Sodium Hydroxide Usage Annual savings of $567,000 per year. CLO2: Efficiency improvements (2-3%) Annual savings of $150,000 -$195,000/yr 25

26 Contacts and More information 26

27 Where do I get more information? Who to Contact Gary Jubien Americas AMS Leader Americas Steve Johansen AMS: North America Cynthia Corn AMS: Latin America 27

28 28

29 END 29

30 Sustaining the Benefits of Advanced Software Honeywell s advanced solutions give companies the edge they need to succeed. Improving the process to enhance efficiency, safety and reliability, we help you build better businesses. The Benefits Guardianship Program supports you, and as a foundation for all of Honeywell s aftermarket services, it ensures advanced applications stay current and effective to keep your business ahead of the competition. 30

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