Selection and decision-making criteria for a Distributed Control
Systems in the process industry
Willem D. HazenbergWillem D. HazenbergSenior Process Control Consultant Stork Industry ServiceSenior Process Control Consultant Stork Industry Service
MBA Researcher Newport International UniversityMBA Researcher Newport International University
InhoudInhoud Intro & Framework Main objectives – Study and research questions Research project methodologieResearch project methodologie Customer Value PropositionCustomer Value Proposition Methodic: Multi attribute utility theoryMethodic: Multi attribute utility theory Main- and Sub sectionsMain- and Sub sections Big- Short- Final listBig- Short- Final list Business reasonBusiness reason Economic Profile (EP)Economic Profile (EP) Conclusions (Dutch)Conclusions (Dutch) More info – next stepsMore info – next steps
At Controls Manufacturing At Controls Manufacturing Community List Community List
Dear AllDear All Can anyone send me a single page comparison or Can anyone send me a single page comparison or
presentation on PLC Vs DCS as on today's date?presentation on PLC Vs DCS as on today's date? I shall be thankful for your kind inputs.I shall be thankful for your kind inputs. Thanking you,Thanking you, Regards,Regards,(Name removed) Control System Staff Engineer (Name removed) Control System Staff Engineer
Introduction To partial fulfillment of the requirements for
the degree of Master of Business Administration in Information Management at the Newport Business Academy and Newport International University, I decided to work out a thesis proposal with the title “Selection and decision-making criteria for a Distributed Control Systems” in the process industry.
The project framework (1) For the control of the chemical processes in the process
“chemical” industry Distributed Control systems (DCS) are applied. These systems are the heart- and nerve system within these factories.
The choice of DCS for a concern is a matter of strategic
importance. High demands are made to the availability of a DCS and
if the concern made a choice, she is committed to it for a lengthy time. Replacing a DCS is a very valuable matter because of the arisen production loss at a reconstruction for example.
The service costs of a DCS could be a multiple amount of
the initial investment during the life span.
The project framework (2) The process industry in the world for approximately
spends 65 billion dollar per year at the top 50 suppliers on
process control systems (included DCS). (2006 data) The expenses of these investments often amount to more
than 1 million Euro by per system. The selection process generally varies from 12 up to 24
months. At large DCS projects there sometimes are investments of
more than 45 millions Euro. The total expenses, which are involved with the selection
of one investment, amount more than 100,000 Euro per system. To earn an order, the marketing/ sale expenses generally are more than 50.000 Euro at a supplier.
The project framework (3)
Local employees of the establishments are involved frequently in the choice for a system. Because of the fact that this investment only takes place every 10-17 years, they are lacked from experience and methods to be able to take this kind of decisions. The consequence is that the choice for a certain system is not always univocal at this moment and the relation between a business case, a chosen solution, and the selection process isn’t always there. This study has to contribute that we make the choice of a system in a more univocal way and the decision-making becomes more
transparently.
Purchasing a DCS systemPurchasing a DCS system
PoliticPoliticss
ISO With First Draft Of Competency ModelISO With First Draft Of Competency Model
Main objectives
The goals of this research is:
The improvement of model-based consideration concerning a selection of a new distributed control system (DCS), by making an analysis of selected criteria within the “chemical” industry to choose a DCS and to establish an investment/ selection model with these insights/ ideas.
So that future investment can be bought faster and the decision-making will be more transparent.
Study Define the core selection criteria and their priorities
for the purchase of a Distributed Control system (DCS) in the chemical industry and a design a decision-making model so that the decision-making for new systems more balanced more consequent and faster can be carried out.
Interview employees who are involved in the purchase decision of DCS within large DCS using companies like Alcoa, Akzo Nobel, BP, Dow, Dupont, Exxon Mobil, DSM, Lyondell, P&G, Sabic, Shell etc.
Also account managers and marketing managers of the chosen DCS have to be involved in this research.
The areas of the study (1)
1. What is the business case of your investment in a new DCS system?
2. What is the reason for this investment (migration, replacement or a new installation) and what are consequences of the choice of system?
3. Which DCS supplier knows the person who is concerned in the company purchase of a new system?
4. What decides whether the DCS supplier comes on the Big List for further evaluation?
5. What decides whether the DCS supplier comes on the Short List for further evaluation?
The areas of the study (2) Which staff functions are involved in the
selection? At which components do these people pay
attention and which priority do they give to the different components?
Is there a difference between the ideas of DCS suppliers and users concerning these criteria?
Research project Research project methodologiemethodologie
•Documents review more then 1000. •Online research (WWW.DCSSELECT.EU)• 167 respondents: End Users Engineers, Purchasing, line management and DCS vendors VP, Service – Account- marketing managers and Business consultants • Across industries in 39 different countries: EMEA, Australia,
America, Far east• Working for organizations ranging from: End Users – SI, Engineers Company’s, DCS vendors• Various industries:
Return Received survey documents End users
Involved OthersInvolved Others
Input up to 23 mei 2009
Organization relation to DCS
End User industry segment
Organization relation to DCS
Job Title respondentJob Title respondent
Reason last DCS projectReason last DCS project
Project Project sizesize
Is your company a Technology trendsetter or Is your company a Technology trendsetter or more a follower?more a follower?
When you buy hardware or software for a When you buy hardware or software for a DCS system you will buy it at?DCS system you will buy it at?
Best Time/Cost
Best Product at Best
Time/Cost C 45,3% / V 36,0%
Best Time/CostPlus High Touch C 4,7% / V 16,0%
Operational Efficiency C 24,4% V 12,0%
CustomerIntimacy C 1,2% / V = 4,0
High Touch and Best Product C
12,8% / 28,0%
BestProduct
EnterpriseResourceTrade-Off
Product Superiority
C 11,6% / V = 4,0%
BestHigh Touch
DCS Customer Value DCS Customer Value PropositionsPropositions
C = End user
V = DCS vendor
AHP-Maut (Analytical Hierarchy Process AHP-Maut (Analytical Hierarchy Process en Multi attribute utility theory) Methodicen Multi attribute utility theory) Methodic
Bron Schmitt D, THE MAUT MACHINE : An Adaptive Recommender System
Result = Score * Weights of importance
•Global variable 1
•Local variable 1
•Local variable 2
•Sub variable 1
•Sub variable 2
•Local Variable 3
De AHP procedureDe AHP procedureStap 1 Constructie van de hiërarchische structuur
Bepaal business - projectdoel•Stel een besluitvormingscommissie samen (DMU)Bepaal de selectiecriteriaBepaal de selectie alternatieven (leveranciers)
Stap 2 Individuele evaluatie van de criteriaDoormiddel van paarsgewijze vergelijking
Stap 3 Individuele evaluatie van de alternatievenDoormiddel van paarsgewijze vergelijking
Stap 4 Integratie van de individuele analyse resultatenDe uitkomst van deze methode is een rangorde van de alternatieven.
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AVG Score main items DCS SelectionAVG Score main items DCS Selection
Business reason Big list selection Business reason Big list selection 20092009
Knock – out criteria Knock – out criteria 40,3%40,3%
Knock – out criteria 12,8%Knock – out criteria 12,8%
Knock – out criteria 12,0%Knock – out criteria 12,0%
Knock – out criteria 11,8%Knock – out criteria 11,8%
Knock – out criteria 13%Knock – out criteria 13%
Knock – out criteria 21%Knock – out criteria 21%
Knock – out criteria 10,1%Knock – out criteria 10,1%
Knock – out criteria 13,3%Knock – out criteria 13,3%
Knock – out criteria> 10% Knock – out criteria> 10% shownshown
…………………………………………………………Knock – out criteria Knock – out criteria 12%12%
Knock – out criteria 13,3%Knock – out criteria 13,3%
Knock – out criteria 13,7%Knock – out criteria 13,7%
Knock – out criteria 10,8%Knock – out criteria 10,8%
Business reason Final selection 2009Business reason Final selection 2009
Knock – out criteria> 10% Knock – out criteria> 10% shownshown
Business case reason Business case reason MigrationMigration
Big listBig list 56,4% Could not maintain old system;56,4% Could not maintain old system; 43,6% Replace obsolete system;43,6% Replace obsolete system; 23,1% Create a more cost-effective process;23,1% Create a more cost-effective process; 23,1% Reduction in Equipment maintenance;23,1% Reduction in Equipment maintenance; 20,5% Removed of manual processes.20,5% Removed of manual processes. Short listShort list 30,8% Could not maintain old system;30,8% Could not maintain old system; 25,6% Replace obsolete system;25,6% Replace obsolete system; 25,6% Efficient workflow;25,6% Efficient workflow; 23,1% Use of advanced control algorithms.23,1% Use of advanced control algorithms. Final listFinal list 33,3% Could not maintain old system;33,3% Could not maintain old system; 25,6% Higher production;25,6% Higher production; 23,1% Improved product Yield;23,1% Improved product Yield; 23,1% Improve loop control;23,1% Improve loop control; 20,5 Replace obsolete system;20,5 Replace obsolete system; 20,5% Use of advanced control algorithms.20,5% Use of advanced control algorithms.
Conclusie: De belangrijkste businesscase redenen is en blijft een obsolete Conclusie: De belangrijkste businesscase redenen is en blijft een obsolete systeem.systeem.
Business case reason new Business case reason new systemsystem
Big listBig list 41,7% Improved automation;41,7% Improved automation; 33,3 % Business information to the plant floor;33,3 % Business information to the plant floor; 33,3% Higher production.33,3% Higher production. Short listShort list 33,3% improved automation;33,3% improved automation; 27,1% Increase real-time decision making;27,1% Increase real-time decision making; 25,0% Use of advanced control algorithms;25,0% Use of advanced control algorithms; 14,6 % Business information to the plant floor;14,6 % Business information to the plant floor; 14,6% Higher production.14,6% Higher production. Final ListFinal List 33,3% Improved automation;33,3% Improved automation; 27,1% Increase real-time decision making;27,1% Increase real-time decision making; 25,0% Use of advanced control algorithms;25,0% Use of advanced control algorithms; 14,6 % Business information to the plant floor;14,6 % Business information to the plant floor; 14,6% Higher production14,6% Higher production..
Conclusie: De belangrijkste businesscase redenen variëren dus Conclusie: De belangrijkste businesscase redenen variëren dus per fase.per fase.
Selection criteria in PhaseSelection criteria in PhaseImportant in phase
0% 20% 40% 60% 80% 100%
Viability
Business case
Vision
Exit cost
Functionality
Interoperability
Technology
Services and Support
Training
Documentation
Initial cost
Implementation process
User experience
On Going cost
Biglist
Shortlist
final list
Most important at biglistMost important at biglistBig listJob - function
Viability
Main Selection item
Barriers to exit costs
Business case guaranty from DCS vendor
Most important at short listMost important at short listShort listJob- function
Main Selection item
User Experion
Implementation process
Functionality
Technology
Interoperability
Vision DCS vendor
Most important at Final listMost important at Final list
Final list
Initial costs
Job - function
Ongoing cost
Main Selection item
Services
Training
Documentation
0% 20% 40% 60% 80% 100%
% end users response
Impor tance of :
Could not maintain old system
Replace obsolete systems
Impr oved Automation
Use of advanced contr ol algor i thms
Impr ove loop contr ol
Impr ovement of pr oduct Qual i ty
Cr eate a mor e cost-eff ective pr ocess
Automatic star t-up and shutdown r outines
Higher pr oduction
Reduction in E quipment Maintenance
Impr oved pr oduct Y ield
Removal of manual pr ocesses
Impr ove r epor ting
Incr ease r eal -time decision making
Need f or a ease to use system
Incr ease in pr ocess knowledge
E ffi cient wor kfl ow
Impr oved use of Raw Mater ials
Incr easing inf or mation f or the wor kf or ce
Impr oved engineer ing data
Reduce wor kf or ce
Reduce complains of customer s
Removal of r edundant pr ocesses
Regulator y r equir ements
business inf or mation to the plant fl oor
Impr ove accounting data
Lar ger pr oduction mix
Mor e people thinking in the big pictur e
Imp
ort
ance
of
Importance for business case
Extreme important
Very important
Important
Somewhat important
Not very important
Not important at all
Importance of Business case Importance of Business case reasonreason
Could not maintain old Could not maintain old systemsystem
Replace obsolete systemReplace obsolete system
Improve Improve AutomationAutomation
Use of advanced control Use of advanced control algorithmsalgorithms
Cost Priorities End Users
0% 20% 40% 60% 80% 100%
Purchase cost
Initial cost
On Going cost
All cost incl. 1 year
All cost incl. 3 year
All cost incl. 5 year
All cost incl. >5 year
Exit cost
Priority 1
Priority 2
Priority 3
Priority 4
Priority 5
Priority 6
Priority 7
Priority 8
Economic Profile (EP)Economic Profile (EP)
EP = Life Cycle Benefits (LCB) - Life Cycle Cost EP = Life Cycle Benefits (LCB) - Life Cycle Cost (LCC)(LCC)
LCB = NPV LCB = NPV YEL (Annual (Annual ManufacturingManufacturing Cost savings + Annual Cost savings + Annual Production Increases)Production Increases)
LCC = System Price + Initial Eng. Cost + LCC = System Price + Initial Eng. Cost +
NPV NPV YEL = Annual Eng. Cost + Annual Ops costs + Annual = Annual Eng. Cost + Annual Ops costs + Annual Maint. Maint. costs)costs)
Annual Ops. CostAnnual Ops. Cost• Software licenties (aanschaf, licentiekosten Software licenties (aanschaf, licentiekosten
voor uitbreidingen)voor uitbreidingen)• Onderhoudscontract, remote onderhoudOnderhoudscontract, remote onderhoud• Investeringswaarborgen (lange Investeringswaarborgen (lange
termijnondersteuning, migratie en termijnondersteuning, migratie en softwarebescherming)softwarebescherming)
• Betrouwbaarheid (Hardware, software en Betrouwbaarheid (Hardware, software en configuratie)configuratie)
• Complexiteit (topologie, software, Complexiteit (topologie, software, procedures)procedures)
• Kennis (Training, toepassing, ondersteuning) Kennis (Training, toepassing, ondersteuning) • Down time (van productie installatie)Down time (van productie installatie)• ( het niet kunnen produceren doordat ( het niet kunnen produceren doordat
systeem niet beschikbaar is) systeem niet beschikbaar is) Yel = Years of Expected lifeYel = Years of Expected life
Live cycle CostLive cycle Cost
SysteempriSysteemprijsjs
Initiële Initiële engineerinengineerings- kostengs- kosten
Installatie Installatie kostenkosten
Jaarlijkse Jaarlijkse engineeringsengineerings
kostenkosten
Jaarlijkse Jaarlijkse operationeloperationele kosten e kosten (OPS)(OPS)
Jaarlijkse Jaarlijkse onderhoudsonderhoudskostenkosten
GemiddelGemiddelde de percentagpercentage kosten e kosten eerste eerste
5 jaar5 jaar
23,2%23,2% 28,5%28,5% 16,1%16,1% 9,3%9,3% 7,6%7,6% 15,3%15,3%
Op basis onderzoek 1996 (data 1991-1996) Source ISA
Model Woordward 1997Source: Ken Keiser en Todd Stauffer levenduur DCS componenten 2007 intech
Migration Risk v.s. Migration Risk v.s. BenefitsBenefits
ConclusiesConclusies Migraties en vervangingen van een DCS Migraties en vervangingen van een DCS
systeem worden veel meer gedreven systeem worden veel meer gedreven door de angst voor een obsolete systeem door de angst voor een obsolete systeem dan door de terugverdiencapaciteit en dan door de terugverdiencapaciteit en betere besturing of andere functionele betere besturing of andere functionele mogelijkheden van een nieuw systeem.mogelijkheden van een nieuw systeem. Zoals bijv. zaken zoals Zoals bijv. zaken zoals procesverbeteringen en hogere procesverbeteringen en hogere productie. productie.
Een groot percentage DCS en ICT-Een groot percentage DCS en ICT-projecten haalt niet succesvol de projecten haalt niet succesvol de eindstreep, de businesscase wordt niet eindstreep, de businesscase wordt niet gehaald, de projectduur is langer en gehaald, de projectduur is langer en de kosten zijn hoger als oorspronkelijk de kosten zijn hoger als oorspronkelijk bepaald. De hoofdredenen zijn het bepaald. De hoofdredenen zijn het onvoldoende functioneel te onvoldoende functioneel te specificeren van de projecteisen en specificeren van de projecteisen en tussentijdse wijzigingen.tussentijdse wijzigingen.
Vroegtijdig inspelen op de specificaties geeft Vroegtijdig inspelen op de specificaties geeft maximale manoeuvreerruimte voor maximale manoeuvreerruimte voor besparingen (dan wel minimale kosten voor besparingen (dan wel minimale kosten voor een verandering) daarnaast is het vroegtijdig een verandering) daarnaast is het vroegtijdig bestrekken van inkoop in de specificatiefase bestrekken van inkoop in de specificatiefase een kostenbesparing en zou je hiermee zo een kostenbesparing en zou je hiermee zo vroeg als mogelijk hiermee moeten beginnen. vroeg als mogelijk hiermee moeten beginnen. Doordat er een tekort aan deskundige Doordat er een tekort aan deskundige (interne) mensen is, zal het verstandig zijn (interne) mensen is, zal het verstandig zijn om een externe consultant in te huren om te om een externe consultant in te huren om te helpen in de startfase van het project om helpen in de startfase van het project om deze besparingen ook te realiseren. deze besparingen ook te realiseren.
Uiteindelijk wordt dit de Uiteindelijk wordt dit de keuzekeuze
Dat de beste keuze een systeem is waar de Dat de beste keuze een systeem is waar de sterkten van het systeem overeenkomen met sterkten van het systeem overeenkomen met de behoeftes van de plant. Dat is altijd beter de behoeftes van de plant. Dat is altijd beter dan een systeem dat bijna alles kan, maar de dan een systeem dat bijna alles kan, maar de belangrijke zaken voor de plant niet; belangrijke zaken voor de plant niet;
””Die leverancier te kiezen die voor de Die leverancier te kiezen die voor de onderneming op lange termijn het geringste onderneming op lange termijn het geringste risico vormt. Door het kleinste risico te risico vormt. Door het kleinste risico te combineren met de met de hoogste combineren met de met de hoogste (tevredenheid) score op de selectiecriteria (tevredenheid) score op de selectiecriteria resulteert in een aanbeveling voor die resulteert in een aanbeveling voor die betreffende leverancier”.betreffende leverancier”.
Het zijn de mensen die het doen, zowel in de selectie als in de implementatie en onderhoud, zorgvuldige selectie van de juiste teams is dan ook belangrijker dan veel technische aspecten.
EndEnd Contact information for more informationContact information for more information [email protected]@dcsselect.eu [email protected]@Stork.com
WebsiteWebsite WWW.DCSSELECT.EUWWW.DCSSELECT.EU 1e results 1e results
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Concept ThesisConcept Thesis http://www.dcsselect.eu/Concept%20Thesis.hthttp://www.dcsselect.eu/Concept%20Thesis.ht
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