Fuel Monitoring & Remote Diagnostic System: The Complete Story Honeywell is pleased to offer a series of solutions to the Oil industry and it s homeowner customers that reduce industry costs and expand services. Honeywell s EnviraCOM based Fuel & Equipment Monitoring System was developed to give oil dealers the capability to lower costs, increase customer retention, and increase revenue. Lower Operating Costs The EnviraCOM enabled Fuel Monitoring Application takes the uncertainty and inaccuracy of degree-days out of monitoring your customers oil usage. Each tank fill is optimized allowing you to service your accounts more efficiently and with fewer trucks on the pay roll. Track your accounts oil usage by actual burner run time and anticipate problems before they shut your customer down. By tracking fuel usage based on actual run time of the appliance rather than by Degree Days and K factor, the Dealer knows exactly how much fuel should be available in the tank. Open windows, more people in the house, fewer people in the house, location of the house, and other factors that make Degree Day monitoring less than an exact science are eliminated from the equation. Fuel delivery drops can be optimized thereby eliminating short fills, number of trucks on the road and frequency of deliveries. The Equipment Monitoring Application provides the Brookhaven National Laboratory developed flame quality monitoring capability that predicts certain lockouts three to four days before they occur. This allows you to schedule maintenance during regular hours reducing your overtime and your customer distress. The Equipment Monitoring Application also allows you to extend service intervals, further lowering your costs. Why service burners with 400 and 4,000 hours on the same interval? Why show up every year regardless of need? This system allows you to gain agreement with your customer for service calls only when needed reducing your costs and your customers inconvenience. When a service call is needed, the Dealer approaches the job with the appliance history so time spent on the job is decreased. Seasonal system checks can be conducted remotely saving a trip to the customer site if system checks out. Future capabilities will allow diagnostic control from your office, operating the system and monitoring key indicators before dispatching a truck. Increase Customer Retention Fewer dry tanks and speedy lockout detection increases comfort in the home and customer retention. For years your customer had to go through a negative experience (no heat) and call for service. Imagine calling your customer and making a service call before the home is cold! You can also use this system to increase your service contract to two or three years avoiding yearly marketing costs. Increase Revenue This system allows you to expand your services, increasing revenue with little increase in costs. Your customers will appreciate the complete peace of mind the Fuel Monitoring System offers and you can charge for this. Offer your customers the option of accessing and programming their thermostats through the Internet from anywhere! Offer second homeowners the peace of mind of monitoring while away. All of these applications are incremental revenue sources and further bind your customer to your company. Remember, what you implement and market is up to you. Some companies will just implement the cost savings features while others will market to increase customer retention. Many will implement a combination or all possibilities. It s up to you and your business strategy. This FAQ sheet is organized into three sections: General Overview Installation and Business Integration Costs and Financial Analysis Marketing to Your Customers
General Overview Basically, how does this system work? To make this system work we need to get information from the heating appliance, out of the home, and to a central database from which a web system allows you access to the data (which you own) and massaging of fuel and equipment needs. Breaking this down we have: Getting data out of the equipment Honeywell has developed a communications protocol, EnviraCOM, that is beginning to ship as a standard feature of all residential combustion controls. These include oil primaries and Aquastats. Think of this as similar to the serial port on all computers. This communications port is two-way and allows both diagnostics and control. Once out of the control data is collected throughout the day and stored on an EnviraCOM enabled gateway which generates a daily (or immediate in the case of a lockout) report and sends it to the central database. Getting data from the home to the central database The Honeywell Combustion group has teamed up with its Ademco Security group to leverage the low cost communications infrastructure used in millions of home security systems for the oil monitoring system. As a security system, this same infrastructure is highly secure and reliably and can be expanded to include cellular and mobitex in addition to the current internet and telephone communications pipes. Using the telephone mode a single 1-800 phone number cover all of North America. Getting the data to you The lowest cost means of delivering information to use is through the internet. Accessing your customer base is as simple as logging onto a website and entering your user name and password. This opens you up to a world of information and data. Get a birds eye view of your entire customer base oil usage along with the next five days prediction. Drill down to an individual customer and look at his usage and flame signal for the last two months. How you use the system is up to you. For many oil dealers, setting up the reports is all the web site interaction that will be needed. Reports for both maintenance and oil usage can be set up by clicking on what, when, and how. For instance; Every morning at six am send a report of all of the customers with less then 30% oil fill to the following e-mails. Every morning at six am send a report of all of the customers with recycles or flame quality alerts to the following fax numbers. Any lockout or Dealer defined heads up messages are transmitted at the actual time of occurrence So what is Fuel Monitoring and what does it do? The Fuel Monitoring Application tracks the actual run time hours from the controls and using the nozzle rating information or actual burn rate of the appliance, determines how much fuel is left in the tank and lets you know exactly which customers will need fuel drops soon, or right away. The Fuel Monitoring application puts all critical data at your fingertips so managing your accounts is made simple and efficient. What is equipment monitoring and what does it do? Equipment monitoring can detail how the devices on the EnviraCOM network are functioning. It can also predict with accuracy possible failures by way the flame quality algorithm developed by Brookhaven National Laboratories tracks flame strength history and trends. As the burner accumulates run time, the Fuel Monitoring Application accumulates a detailed report which lets the Dealer know accumulated cycles and hours of operation and flame signal behavior. As the flame signal deteriorates from its baseline, the Application sends the Dealer a heads up alarm so a scheduled service call can be made before the burner locks out. What specific features the EnviraCOM Fuel Monitoring Application apart from others? Complete communication infrastructure in place able to handle vast amounts of traffic Redundant servers ensure the complete security of information
800 number for the gateway keeps end-user cost down and eliminates area code change reprogramming Web based system allows simplified installation and maintenance no additional hardware to set up in your office. Two levels of access security set by the Dealer restricts data to appropriate personnel. Fuel monitoring based on actual run hours of the appliance eliminates tank sensors, battery change-outs and lowers install costs. Immediate alarm message sent to Dealer specified locations guarantees you are aware of customers problems before they do. Complete and precise protected account information based on bank level security systems. User friendly application which allows the Oil Dealer to customize what information to capture and when. Heads up algorithm to let the Dealer know which customers need immediate fuel delivery. Heads up algorithm to let the Dealer know that a recent fuel drop suggests a leak or unexpected fuel in the tank. Heads-up algorithm to trend aggregated fuel needs to let you prepare deliveries more efficiently. Heads-up algorithm to predict lockouts by trending flame signal. Track hardware in the field. Daily reports provides the Dealer with critical account information. Capability to transfer of data to existing back office systems. Expandable to accommodate future capabilities and features. Has this system been tested? The EnviraCOM based Fuel Monitoring System has already proven itself in the field. Twenty sites were monitored over the 2003/2004 heating season with great success. The EnviraCOM Fuel Monitoring System recorded actual burner run time and tracked fuel usage as expected, relaying the data back to the Distributor. Customers were delighted and bewildered to receive calls from their Dealers suggesting a control was locked out before they noticed a temperature drop. The speed with which Dealers reacted to situations in the field was something unexpected to the homeowner. Brookhaven s flame monitoring algorithm has been proven and used in the industry for over 10 years. Brookhaven has also been instrumental in the testing of the fuel monitoring function of the application. What is EnviraCOM? EnviraCOM is a new 3-wire communication protocol that allows controls to publish information relating to status, alarms, etc. on the network. This information differs by control, and includes flame signal strength or resistance, number of cycles, run time, alarm information, diagnostics information, etc. EnviraCOM offers peer to peer communication that makes networking a simple proposition. As we move forward Honeywell will add to the EnviraCOM communication capability across the Residential Combustion Product portfolio. This includes, Gas ignition modules and controls Aquastats Oil primary controls Diagnostic tools. Think of EnviraCOM as the serial port of the HVAC industry.
Installation and Business Integration How does this system integrate with my current back office software? Information collected from the EnviraCOM Fuel Monitoring Application can be exported to existing third party back-office applications and vice versa. Transfer billing information and other pertinent fields between applications and minimize work and the chance for errors. Data can be transferred via comma delimited files (Excel), Access, or raw data files. How does the equipment get installed? Installation is made simple with minimal basic cabling required allowing service technicians to perform the installation in one to two hours. Optionally, Honeywell DMC can work with Dealers to facilitate high volume installations at an additional cost. An installation video will be available. How does registration, ordering, and invoicing work? Dealer registration and participation in the EnviraCOM Fuel Monitoring System is a simple, automated system. Download all the required registration and order forms from an Internet site. Fill out the application form and sign the Oil Dealer Agreement and e-mail to address listed on the form Upon approval, Honeywell enables Dealer s new account. Dealer receives an e-mail with Application URL, ID and Password in order to enter. Honeywell invoices the Oil Dealer for the set-up fee Once inside, the Dealer has access to the necessary order and installation forms Oil Dealer places order for new licenses. New licenses will require homeowner set ups. Licenses become available within one business day and are shown as available on the Application Honeywell invoices Oil Dealer for the license and homeowner set-up fees The Dealer installs the gateway in the home capturing the necessary data on the installation form The Dealer captures installation of the gateway on the application Once the gateway is installed in the home, the license is time-stamped triggering the beginning of the one year life cycle of the license. Three months before the expiration of the license, the Oil Dealer receives reminders of the licenses that are about to expire. The Dealer can use the order form to renew the license, otherwise the license will expire How Do I Install The System? Installation is dependant on the type of equipment (boiler or furnace) and the type of controls on the equipment. For boilers an EnviraCOM capable R7184 oil primary is required. These began shipping on OEM equipment in May of 2004. Any older R7184 s, R8184 s or other oil primaries will need to be changed. For warm air furnace appliances using an R8184M, an AC kit will also be required. For all systems the Gateway/Modem is mounted near a phone jack. The supplied telephone cord is connected between the telephone jack and the Gateway. The wall mount power supply is then connected to the Gateway. Finally, the three wire EnviraCOM connection (thermostat wire) is run between the R7184 and the Gateway. What Happens If A Customer Moves? Should a customer move into a home which has been equipped with the EnviraCOM network and an active license still exists for that home, the balance of the license life can be transferred to the new account in the home at no fee. Normal renewal fees apply for a new, one-year license. How Do I Handle Multiple Pieces Of Equipment? For the first phase of the EnviraCOM Fuel Monitoring Application, this feature will not be available. In the near future, the EnviraCOM enabled Gateway/Modem will come standard with two channels of input. For larger systems a EnviraCOM enabled 4-port Hub will allow for monitoring sites with multiple appliances.
Costs and Financial Analysis What is the cost? There are two types of costs; one-time hardware costs and recurring software costs. The recurring software costs. Dealer Registration: $1000 Dealer Renewal: $250 (after 1 st year, reoccurring yearly) Homeowner Set-up: $20 Fuel Monitoring License $15/year/home (reoccurring yearly) The are several optional recurring fees, depending on need and use: Remote System Test $10/test (future option) Customer Remote Access $20/year (future option) License Transfer Fee $5/transfer (New resident takes advantage of existing license) The following hardware is required to enable the Fuel Monitoring Application: The required hardware is: W8735C EnviraCOM Gateway ($90.00 estimated wholesale price) R7184U EnviraCOM enabled Universal Oil Primary (if needed, $52.00 estimated wholesale price ) Optional: L7224U EnviraCOM enabled Universal Oil Aquastat (needed for remote test for boiler systems) T8635L EnviraCOM enabled Programmable Thermostat (needed for remote test and zone temperature monitoring) What are the estimated yearly savings per account? Based on industry interviews, we estimate the annual savings as follows. Fuel Drops $30.00 Extended Cleanings $55.00 Reduced Cleanings $5.00 Total $90.00 Who pays for the Fuel Monitoring Service? As the Fuel Monitoring Application benefits and savings are optimized with a large installed base, we recommend that the participating Dealers implement the Fuel Monitoring Application to their entire customer base. Each Dealer is free to implement the program best for them. The following are two possible scenarios with the Dealer assuming the cost for the program increasing customer participation.
Model 1. Based on 1000 customers per year with the Dealer assuming 100% of the cost and assuming $90.00 per year savings. Year # 1 2 3 4 5 6 Year 2004 2005 2006 2007 2008 2009 % Installation requiring trade R7184 100% 95% 92% 90% 85% 82% R7184 i ll (Net) i + Modem/Gateway Costs $ 117 $ 114 $ 113 $ 112 $ 109 $ 108 Installation ($K) Costs $ 40 $ 40 $ 40 $ 40 $ 40 $ 40 ($K) Yearly Maintenance/Set-up Fees $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 ($K) Customer Fees $ 15 $ 30 $ 45 $ 60 $ 75 $ 90 ($K) Total Yearly Costs, $ 192 $ 205 $ 218 $ 232 $ 244 $ 258 Cost/Customer/Yea ($K) $ 192.3 $ 102.3 $ 72.7 $ 58.0 $ 48.9 $ 43.0 (Savings - Costs) Per Customer Per $ (102.25) $ (12.33) $ 17.30 $ 31.99 $ 41.11 $ 47.02 Y Additional services $ 25.00 $ 25.00 $ 25.00 $ 25.00 $ 25.00 $ 25.00 (Savings + Enhancements - Costs) Per Customer Per $ (77.25) $ 12.68 $ 42.30 $ 56.99 $ 66.11 $ 72.02 Model 2. Assuming 1000 customers per year with Dealer financing the installations and assuming $90 per year savings. Year # 1 2 3 4 5 6 Year 2004 2005 2006 2007 2008 2009 % Installation requiring trade R7184 installation 100% 95% 92% 90% 85% 82% R7184 + Modem/Gateway Costs ($K) - Financed 9 $ 9 $ 9 $ 9 $ 9 $ 9 Installation Costs ($K) $ 40 $ 40 $ 40 $ 40 $ 40 $ 40 Yearly Maintenance/Set-up Fees ($K) $ 20 $ 20 $ 20 $ 20 $ 20 $ 20 Customer Fees ($K) $ 15 $ 30 $ 45 $ 60 $ 75 $ 90 Total Yearly Costs, ($K) $ 85 $ 99 $ 114 $ 129 $ 144 $ 159 Cost/Customer/Year $ 84.6 $ 49.7 $ 38.1 $ 32.3 $ 28.8 $ 26.5 (Savings - Costs) Per Customer Per Year $ 5.4 $ 40.3 $ 51.9 $ 57.7 $ 61.2 $ 63.5 Additional services revenue $ 25.00 $ 25.00 $ 25.00 $ 25.00 $ 25.00 $ 25.00 (Savings + Enhancements - Costs) Per Customer Per Year $ 30.4 $ 65.3 $ 76.9 $ 82.7 $ 86.2 $ 88.5 From both models, it is evident that bringing more customers on-board results in increased savings for the Dealer. Note that the break-even time is less then two years in the first model and during the first year in the second model.
Marketing to Your Customers How can I sell this to my customers? Many Oil Dealers will install the FMS at their cost based on the lowered operational costs and increased customer retention. In fact this is the fastest way to realize the fullest benefits of the system. Some dealers may choose to have some or all of their customers pay for the system directly based on any combination of the following: Peace of mind Many customers lead hectic lives and just want to have the peace of mind that they need not worry about coming home to a cold home or a dry oil tank. These customers will appreciate the increased level of insurance that this system offers. Increased comfort and Service Just like a car, at some point problems will occurs with all mechanical systems. Instead of waiting for a breakdown, getting cold, and calling in expensive after-hours service, customers can have this system installed and allow you to service before discomfort occurs and in many cases before a breakdown occurs.. Instead of fewer dry tanks Future capabilities will include the ability to remotely access the heating and cooling system to run check outs without the inconvenience of a scheduled maintenance call Finally, you will have the ability to review fuel usage on a daily or monthly basis with your customer, increasing their understanding of costs and showing spikes and possible opportunities for improvements (leading to more sales for you.) Second/Vacation Home Monitoring Many customers have second or vacation homes that experience erratic use as well as represent valuable property. This system will allow you to provide a higher level of service to these customers, for which they should be willing to pay. By installing EnviraCOM based thermostats you can also alarm on individual zone temperature, in effect monitoring the health of the circulation and radiation system. Your customers will see the value in the Fuel Monitoring System.