historian the business case
DESCRIPTION
In this WebEx we will present: The results of user research to find out what benefits have been obtained from user's Historian investment. Varied uses to which Historian has been applied. Important indirect benefits. Practical issues to maximise the return. Historian used with MS Office. Historian justified through ROI A summary of case study experienceTRANSCRIPT
Wonderware Interactive Webinar Series Helping you see more clearly
Wonderware Historian: The Business CaseJOINING INSTRUCTIONS
Wonderware Interactive Webinar Series Helping you see more clearly
Wonderware Historian: The Business CaseDavid Brearley
Independent Consultant
In this WebEx we will present:► Core Historian basics► The results of user research to find out what benefits have
been obtained from user’s Historian investment.► A summary of case study experience.
▪ Varied uses to which Historian has been applied.► Historian added to SCADA and other DAQ schemes► Historian with MS Office► Historian with dynamic reporting► Historian and ROI – justification techniques► Summary.
The core nature:► Historians preserve the fidelity—reliability or trustworthiness—of
information. ► They do so by accurately warehousing gathered data sent to them
until retrieval later for whatever purpose end-users might have; and historians facilitate quick recovery of data.
► A historian doesn’t know why people are after data, historians tend to keep all the data, with all its fidelity, for as long as they can.
► This is about all data being in one repository; which makes reporting easier
▪ The process and production data will be in an Historian – adding energy data and quality data etc simply makes the data richer – and therefore of more direct benefit.
► for that you need an Historian – Wonderware Historian.
When is a database not an Historian?► A database is never an Historian as an Historian works in
a completely different way; ▪ but, the main Historian advantage is the chronological
information order that an Historian stores, the rate of data acquisition, and ease of data retrieval.
► We tend to refer to Historian as ‘a database’ as it’s convenient and one can use standard SQL tools with it.
► Contrary to any experience with such entry level products such as Microsoft Access there is none of that setting up of tables, designing queries and formatting reports – all of which are time consuming and tedious.
Value is in the eye of the beholder...► There are many users that benefit from the features of
Historian► Although in principle the benefit is the same (fine granular
information, real-time fast acquisition, ease of access), each customer has their own version of the success
► Various examples of the diversity of benefits >>>
DURING THE LATER PART OF 2009 A LIMITED SURVEY WAS MADE OF USER EXPERIENCE WITH HISTORIAN, THIS IS SUMMARISED AND DEVELOPED UPON HERE:
Historian feedback summarised...
Direct customer experience summary► There are two types of user;
▪ those that purchased Historian wittingly (in that they had investigated its functionality and saw that this was a solution for them)
▪ and those that have it unwittingly (in that they bought it as an InTouch add-on and never fully (or even partially) deployed the product).
► Thus our user feedback is somewhat polarised into ‘very happy’ and ‘don’t knows’.
► Although engineers understand the functionality and therefore the technical benefit, it is operational users that actually acquire the business benefit.
► Thus we have to decode the link between business requirement to Historian functionality through a 2 step process,
▪ first the business, ▪ then the technical.
Direct customer experience summary – who benefits? ► We have testimonial and track record in ‘business level’ use for
Historian with Lean, Energy and general reporting requirements (MIS) –
▪ this later user requirement probably is the tip of an iceberg of opportunity for a generic answer to ‘we need reports’, which in fact means firstly one needs data (hence an Historian).
► The full report shows that once a user’s eyes have been opened then Historian is instantly accepted as being a core solution
▪ – thus start with a small tag size and expand upon it as the new data acquisition programme / reporting initiative is rolled out factory-wide.
► Anecdotal evidence shows that an MS certified IT person can become effective with Historian after 2 days of training,
► Sometimes Historian is seen as a solution looking for a problem; thus one has to adapt to considering “why do I need it?”.
► Those that have utilised Historian are very comfortable with the purchase.
VARIED APPLICATIONS SHOW THE OPPORTUNITY TO OBTAIN SAVINGS THROUGH BROADER HISTORIAN USE
Case study testimonial...
Varied application – from case studies► Radical continuous improvement.
▪ PWC consultant, pet food manufacturer► Utilities Savings completely offset the cost in a matter of weeks.
Negotiation of new water supply contracts. Tuning new lines more quickly – peak performance.
▪ food processor.► Sludge digesters tuned to comply both with regulatory requirements
▪ Waste water► Historian data in very fine granularity shows the root cause of a quality
problem. ▪ Glass manufacture
► allows process and quality engineers to flexibility obtain their own information – on demand,
▪ Glass production► Major food processor obtains vital traceability information .
▪ Food processor
Varied application – from case studies► Pharmaceutical -auditable and approved data base.
▪ Asthma products► Financial billing is undertaken from Historian data -reliable and auditable –
and timely. ▪ Gas distributer
► Insight for later stages of Lean and Continuous Improvement initiatives ▪ general
► Historian is frequently used to record a ‘golden batch’▪ Industrial abrasives
► Historian data, combined with reporting tools can be used to extrapolate energy usage.
▪ general► Historian in a quality recording role is used to examine raw material.
▪ Specialist fabrics► Incentivised energy targets per production period and to provide vital
information about CHP plant for CCL negotiations. ▪ Bulk chemical
► http://www.wonderware.co.uk/success-stories/all/
Observations...
1. Historian is a vital component of System Platform2. AND Historian alone adds functionality to
multiple SCADA systems3. AND Historian delivers benefit without any other
Wonderware product
► Which adds up to a very versatile product!
THE HISTORIAN DEPLOYMENT EXPERIENCE CURVE
Step by Step – to business benefits
Structure
1. Take one SCADA▪ Observe its trend display
2. Take another SCADA▪ Observe its trend display
3. Take yet another SCADA...▪ n views of what is going on
4. Connect each SCADA to a network5. Connect Historian
▪ A single view of what is going on!
Trends
A generic scheme
SCADA
Machine / Process
Trends TrendsTrends
A generic scheme
SCADA
Machine / Process
SCADA
Machine
SCADA
Machine
A generic scheme
Network
SCADA
Machine / Process
SCADA
Machine
SCADA
Machine
DAQ / PLC
Machine (n)
Wonderware Historian
A generic scheme
Network
SCADA
Machine / Process
SCADA
Machine
SCADA
Machine
DAQ / PLC
Machine (n)
Wonderware Historian
Reporting – trends and other + archive
“I must have reports”
“I must have reports”► To run an efficient business in manufacturing one must
know what is going on – now.► That requires data acquisition, an historian and some
way of extracting data into meaningful information – quickly, in time to do something
► Data from everywhere, not just SCADA systems...
Method
DAQ
Machine
Method
DAQ
Machine
DAQ
Machine
DAQ
Machine
DAQ
Machine (n)
Method
Network
DAQ
Machine
DAQ
Machine
DAQ
Machine
DAQ
Machine (n)
Method
Network
DAQ
Machine
DAQ
Machine
DAQ
Machine
DAQ
Machine (n)
Wonderware Historian
Method
Network
DAQ
Machine
DAQ
Machine
DAQ
Machine
DAQ
Machine (n)
MS Office
Wonderware Historian
Reports
Method
Network
DAQ
Machine
DAQ
Machine
DAQ
Machine
DAQ
Machine (n)
MS Office
Wonderware Historian
Reports
Method for interactive reports
Network
DAQ
Machine
DAQ
Machine (n)
MS Office
Wonderware Historian
Reports
Wonderware InformationServer Interactive Reports
DAQ
Machine
DAQ
Machine
HISTORIAN BECOMES THE UNIVERSAL DATA REPOSITORY FOR ALL REPORTING REQUIREMENTS
Which can (and does) become a hybrid of the two...
Universal DAQ for interactive reports
Network
DAQ
Machine
DAQ
Machine (n)
Wonderware Historian
Reports
Wonderware InformationServer Interactive Reports
SCADA
Machine / Process
SCADA (n)
Machine / Process
The traditional SCADA solution The universal DAQ repository solution
MS Office
Which then becomes factory-wide
Network
DAQ (ADAM)
Machine
DAQ (ADAM)
Machine (n)
MS OfficeWonderware Historian
Reports
Wonderware InformationServer Interactive Reports
SCADA
Machine / Process
SCADA
Machine / Process
Application Server Faster development, sustainable Continuous Improvement
System Platform Modules
Wonderware System Platform
Historian – maximising on what can be achieved
► Thus in practise Historian becomes a catalyst for change and improvement
► This accelerates continuous improvement through detailed and dependable insight
► But this requires financial justification...
HOW DO I GET A BUDGET?Looking for justification...
THE BUSINESS CASEUnderstanding ROI and applying this to Historian
The value of Benefits offset Cost
Benefit (converted to saving as a value)► Lean improvements► OEE improvements► Reduced waste► Improved quality► Efficiency► Productivity► (indirect benefits)► * all the case studies have benefits
described► FIND AS MANY AS POSSIBLE!
Cost► License► Man Hours► Training► Hardware► Consultancy...
ROI unzipped
Increasing benefit
cost
Time
► Lean improvements► OEE improvements► Reduced waste► Improved quality► Efficiency► Productivity► (indirect benefits)► * all the case studies have benefits described► FIND AS MANY AS POSSIBLE!
► License► Man Hours► Training► Hardware► Consultancy...
ROI unzipped
Time
ROI unzipped
PAYBACK
Time
ROI unzipped
PAYBACK PROFIT
Time
The ROI formula:
► ROI is expressed as a time and a percentage:▪ The Time is the easier one – it’s the estimated
time that the value of accrued benefits offset the cost – the payback period
▪ The Percentage is a guide to the long term profit after payback, the quality of an investment, it has to be done over a fixed period • (this assumes elements of technical obsolescence will appear over extended periods)
► The Percentage figure is calculated using:▪ ROI % = (((year 1 saving + year 2 + year 3)/3)/initial cost) *100
Some definitions…
Return on Investment► The average total
savings over 3 years divided by the cost
▪ 3 years is notional for technology investments (technical obsolescence etc)
Savings (Year 1 + Year 2 + Year 3)/ 3
Initial cost
ROI =
Example…Savings
(Year 1 + Year 2 + Year 3)/ 3
Initial cost
ROI =
Year 1 Year2 Year3 AverageSaving 150 150 150Cost 200 0 0 200Net -50 150 150 83.3333333Payback 1 0.33 41.67%ROI 41.67 %Payback 1.33 years
Benefits
► One has to find Benefits▪ Some are obvious and believable
• (Scrap reduction, quality improvements, cycle time increase)
▪ Some are less obvious but believable• (Supply chain effects)
▪ Some are less believable and hard to value• (Brand value)
► Some will not directly transfer▪ Such as improved marketing efficiency!
► Gather them all up and place a value on them that is understated
The value of Benefits offset Cost
Benefit (converted to Value)► Lean improvements► OEE improvements► Reduced waste► Improved quality► Efficiency► Productivity► (indirect benefits)► * all the case studies have benefits
described► FIND AS MANY AS POSSIBLE!
Cost► License► Man Hours► Training► Hardware► Consultancy...
ROI unzipped – improving ROI
Decrease time
PAYBACK PROFIT
Increase value
Prolong life
Time
ROI unzipped – improving ROI
Decrease time
PAYBACK PROFIT
Increase value
Prolong life
Time
Better tools
More beneficiaries
Ease of change
ROI unzipped – improving ROI
Decrease time
PAYBACK PROFIT
Increase value
Prolong life
Time
Better tools
More beneficiaries
Ease of change
More benefits will increase the rate that benefit offset cost and make payback come earlier – search for them
Better tools for implementing Continuous Improvement will hold up the value of the investment over time – prolonging the profit
Wonderware Historian is a fundamental manufacturing business improver, it produces benefit through insight.
Historian is the MIS catalyser
Network
DAQ (ADAM)
Machine
DAQ (ADAM)
Machine (n)
MS OfficeWonderware Historian
Reports
Wonderware InformationServer Interactive Reports
SCADA
Machine / Process
SCADA
Machine / Process
Application Server Faster development, sustainable Continuous Improvement
System Platform Modules
Summary – Historian: the business case► Expect the unexpected from your plant► Consider what data can be acquired► Find data sources, SCADA, DAQ, Sensors etc► Use efficient report generators► Make reports dynamic► Find benefit (from everywhere)► Use Historian► Produce a business case, using ROI techniques
▪ Evidence http://www.wonderware.co.uk/success-stories/all/
► Develop the justification to a complete MIS solution based initially around Wonderware Historian and later around System Platform
► Take a step-by-step approach► Learn on the way► Engage in Continuous Improvement programmes► Ask for help in ROI methods from Wonderware UK & Ireland ► Hunting for ROI Benefit (saving) is fun!
Powering intelligent plant decisions in real time.