sustaining your profit with help from aftermarket services
TRANSCRIPT
With Help from After Market ServicesSUSTAINING YOUR PROFITSTathagata Basu
June 22, 2016
Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.
Typical Application Benefits
Sustaining These Benefit Levels is the Real Challenge!
0
1
2
3
4
5
6
7
Operator Training & Simulation, Asset
Management
Production Management
Advanced Planning & Scheduling
Blending & Movement
Management
Operations Management
Advanced Process Control &
Optimization
An
nu
al B
enef
its:
$ M
illio
ns
2.0
1.5
1.0
0.5 Typ
ical
pay
bac
k p
erio
ds
(yea
rs)
Typical Benefits Range of $10M - $50M Per Year Per Site (Actual Benefits Depend on Industry & Scale & Life Cycle)
Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.
20
40
60
80
100
120
0 6 12 18 24
Be
ne
fits
(as
% o
f o
rigi
nal
)
Time (months)
No Maintenance
Basic Maintenance
Reactive Maintenance
Proactive Maintenance
Opportunity Assessment
Understanding the High Cost of Neglect
• Good initial
benefits from
Advanced
Applications
• Potential for rapid
degradation of
benefits without
proper monitoring
and maintenance
Position after circa 12 months
No Maintenance 50% loss
Basic Maintenance 20% loss
Reactive maintenance 10% loss
Proactive Maintenance 5% loss
Opportunity
Assessment+5% gain
Related to sample data: Results will depend
on many factors, so indicative only.
“…..applications can quickly degrade to yield nominal benefits of <25% if they are not
properly monitored and maintained from point of installation”….Customer, Honeywell
Users Group
Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.
The Benefit Sustainability Issues
Reduce Total Cost of
Ownership
Knowledge
Management
Optimize or Sustain
Performance
Maintaining and
enhancing
performance of
Applications
•Health monitoring
•Latest functionality
•Technology Refresh
•Address changes to people,
processes, plant, equipment and
operating conditions
Failure to address
support early will
greatly reduce long-
term benefits
•Dealing with scarce resources
•Leverage Technology
•Consistent Asset Mgmt
strategies
•Avoid obsolescence
Difficulty in finding,
training and retaining
skilled support
resources
•Awareness / training
•End user handover and acceptance
•Knowledge transfer & retention
•Consistency for multi-site installations
Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.
BGP Optim
a
BGP Perfor
ma
BGPPlus
BGP“On demand” services to provide technical
resources for non-periodic activities
Benefits Guardianship Tiered Services
In simple terms:
BGP Performa is a collaborative
service whereby Honeywell commits to
jointly maintain agreed plant / unit
performance targets, with regular
progress reviews.
Honeywell will provide remote
monitoring and alerting to issues
likely to impact on Performance targets,
with the recommended (and
prioritized) actions that the customer
should undertake.
Honeywell will work with the customer
to ensure their in-house resources are
suitably skilled to undertake the
actions and tasks.
Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.
Methodology for BGP Performa
Assess
Sustain Remediate
Honeywell conduct reviews to
assess health of systems,
applications, performance
and in-house skills
Honeywell performance
specialists monitor
outcomes, identify the root
cause of issues and
recommend intervention by
customer to sustain
performance and
long-term benefits
A sustainable
remediation
action list is
created to
address areas
of vulnerability
and to focus
attention of
in-house skilled
resources
An audit needs to be conducted to
establish baselines and areas for
remediation
Remediation needs to be completed to
address gaps and issues
1
23
Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.
Change
Management
Proactive Service
Management
Reporting
Performance
Monitoring &
remote
connectivityContract
Performa
nce
Metrics
How does BGP Performa deliver
Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.
Identification, Guidance and Competency Management
Proactive Service
ManagementHoneywell will minimize
incidents by proactively
identifying issues and
guiding on appropriate
interventions
• 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 and performance targets
How does BGP Performa deliver
Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.
Connect, Monitor, Predict and Support
Performance
Monitoring &
remote
connectivity
• 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
Honeywell experts will
remotely monitor
performance and provide
proactive service
management
How does BGP Performa deliver
Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.
Plan, Test and Advise
Change
Management
• Assist with planning of Software Migrations and process changes
• Evaluate and recommend planned changes to achieve business goals
• Participate in application reviews
Honeywell will ensure
system changes work well
and continue to deliver
against expected
objectives
How does BGP Performa deliver
Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.
Status, Alerts and Recommendations
Reporting
• 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
Honeywell will provide
regular status updates and
recommendations
appropriate to the different
needs of stakeholders
How does BGP Performa deliver
Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.
BGP Performa: Collaboration
Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.
BGP Performa: Performance for APC
• Disk
•CPU
• Memory
• Network
• Data
• Events
• URT Services
• Comms
• Historian
• App. Execution
Indicative
$ Benefit
• Inferential prediction qualities
• CPM for related PID loops
How well is process
being optimized?
Early Warnings
Uptime
Obj Functionality
How is the capacity to add
value used?
How necessary is the
controller?
How much value is the
controller generating?
Is the controller operating
smoothly?
How well are CV constraints
being honoured?
Usefulness
Criticality
Value
Acceptance
Reliability
How well is
controller being
utilized?
This example is from APC, as
each Product Line has it’s own
unique set of performance
calculations and metrics
Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.
Plant
Crude Unit
CDU
APC Attainment
Usefulness
CV
Violation of hard limits
MV
Clamping
DATA
Reliability Acceptance Value Criticality
Objective Functionality
Inferential Attainment
Uptime
Historical trend
STAB SPLT
FCCU
MFRR DEBUT
Performance Monitoring Example: Advanced
Process Control
Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.
Key B
en
efi
ts
What are key benefits of BGP Performa?
• Faster incident response and Resolutions
• Reduced number of incidents and increased uptime
• Management of change and technology upgrades
• Cyber Security protection
• More effective deployment of in-house resources
Reduce Total Cost of
Ownership
• Customers can focus on their core competency
• Honeywell guide the customer to manage results
• Performance management to sustain benefits
• Application and process loop optimization
• Improved in-house skills development
Improve Operational
Effectiveness