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Asset and Work Management Trends for Utilities
Saif Chowdhury – IBM Tiger Team, Energy & Utilities10 Sept. 2013
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Agenda
• Introduction• Asset/Asset Management• The Value and Purpose of Asset Management• Asset Management Standards • Changes across the Utilities Value Chain• Big Data /Data Analytics• Smarter Planet/Infrastructure• Maximo Spatial• HSE• RCM Analysis• IBM Focus Areas
• Advanced Scheduling & Workforce Management• Mobile Applications, Asset Performance Management• Data Center Infrastructure Management• Asset Performance Management and Analytics
• Asset Management Benefits• Asset Management Maturity• Q & A
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What is an asset?
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Definition of Asset Management and Work Management
• Asset Management: Coordinated activities of an organization to realise value from an asset.
systematic and coordinated activities and practices through which an organization optimally and sustainably manages its assets and asset systems, their associated performance, risks and expenditures over their life cycles for the purpose of achieving its organizational strategic plan
*From PAS (Publicly Available Specification) 55-1/2: 2008
• Work Management: Is simply the management of work or work order management.
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The Value of Asset Management
LimitedResources
ComplianceFramework
MaximizingReturn on
Assets
Highestreliability
Lowestcost
Reduce labor costs
Improve planning & scheduling
Reduce Inventory
Reduce downtime
Managerisk
Comply withRegulations
Maximize output
Visibility
RetainKnowledge
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Purposes of Asset ManagementImproving Service:- Manage the service by improving production reliability: Productivity (units produced per hour), Cost (cost per unit), Quality (percent perfects)
Reducing Cost:- Transform assets into business value faster by controlling costs around its management: Labor efficiency, Spare parts optimization
Mitigating Risk:- Prevent safety and regulatory risk- Pinpoint under utilized software- Improve compliance management- Connecting to the world securely with 100% availability and improved resilience
Acting with Agility and Speed- Lean and connected supply chain visibility- Informed and collaborative workforce- Real time insight into all physical assets across the lifecycle- Understand cost of delivering IT enabled service management
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Challenges that companies faceCompanies are more and more focusing on Asset Management as a response to significant market pressures:
Need to Maximize Return on Assets (RoA) Risk of Failure of Critical Assets Complexity of Operations High Energy Costs Regulatory Compliance Aging/Retiring Workforce
In order to address these pressures, Best-in-Class companies are more likely to standardize asset maintenance and reliability
processes across the enterprise.
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Full Support of the Asset Lifecycle
Drivers for Enterprise Asset Management:• The emergence of pervasive, RFID, sensors, detectors and IP addresses attached to enterprise
assets• Extending the useful life of capital assets• Need to measure and manage the availability and use of all strategic assets• Integration of information from Shop Floor to the Top Floor• Improved risk management across the enterprise
AssetStrategy Plan Evaluate and
DesignCreate / Procure Operate Maintain Modify Dispose
Asset Management Lifecycle
All Asset Classes
Plant and Production Industrial, Mining, Chemical, Petroleum, Electronics, CP, Life Sciences, Power Gen
IT Equipment and Network Laptops, Desktops, Servers, Networks, Routers, Software, Licenses
Transportation and Fleet Fleet, Freight & Logistics, Airlines, Marine, Military, Railroad, Transit
Facilities and Real Estate Airports, Seaports, Offices, Warehouses, Retail Space, Land, Hospitals, Schools
Runways, Railways, Roads, Tunnels, Electric / Gas Distribution, Telecom, WaterInfrastructure
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Infrastructure Is Increasingly Complex
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The Way We Work Is Changing
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PAS 55 – Optimized Management of Physical Assets
14 Source: PAS 55 Part 1: Specifications for the optimized management of physical assets , BSI 2008
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Config-uration
ManagementChangeManage
ment
AssetManagement
FacilitiesProduction
IT
Asset Convergence: IT-enabled Operating AssetsBlurring lines of ownership require a unified solution to manage all assets
Transportation
IT-enabled operating assets• IT improves asset
performance
• Networked connectivity for remote monitoring
• Networked connectivity for maintenance automation
• On-board IT creates asset sophistication
• Automation of complex tasks
• Mechanics replaced by electronics
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Maximo Asset Management leverages PAS 55/ISO 55000• Enables a natural alignment with PAS 55 - Using IBM Maximo Asset
Management software supporting PAS 55 can help to:• improve customer service, increase return on assets, enable greater compliance,
improve asset performance, reduce risk—all in a shorter time period, provide bettervisibility and control of all required information to better align with the organization’soverall business goals and objectives.
• Supports full Maintenance Management requirements. This is optimized at process level. - Examples are reactive, preventive and planned maintenance combining materials and service management.
• Supports Asset Risk Management. This is optimized at asset performance level. - Examples are asset reliability, service and performance management. Maximo Key Performance Indicators (KPIs) and metrics as Mean Time To Repair (MTTR), Mean Time Between Failure (MTBF) addresses such requirements.
• Supports Infrastructure Management - This is optimized at service performance level. Examples are utilities and facilities management. Maximo's spatial and linear asset management, facilities and integrated workplace management capabilities (based on integration with Tririga’s IWMS).
• Supports IT Asset Management - which is important managing today's complex assets and to integrate requirements from shop floor to the corporate office.
MAXIMO ASSET
MANAGEMENT
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Variety, Volume and Velocity Of Data is Increasing
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Key E&U Big Data Use Cases:
Meter Data Analytics
Big Data ChallengesUse Cases
Distribution Load Forecasting & Scheduling
Asset Management & Sensor Data
• High volume of structured data• Valuable Information• Compute intensive analytics• Low latency response on queries• Business Intelligence and Analytics• Understanding the customer through segmentation and analysis
• Very high volumes (TBs to PBs) unstructured data
• Exploration and discovery• Text, Entity and Social Media Analytics
• Real time processing• Detect failure patterns• High volume, low latency
processing• Scoring and decision analytics
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Meter Data Analytics:
Business Problem Managing the large volume/velocity of information generated by short
interval reads of smart meter data can overwhelm existing IT resources Ensure privacy of meter data which has become a major issue in all smart
meter deployments Cost of retention of meter data to satisfy regulations is unacceptable
Technical Challenges Moving from reading a meter once a month to every 15 minutes increases
data volume by 3,000X which can overwhelm existing IT infrastructure Data storage costs can get out of control using relational data base
technologies Report Generation and analytics can become painfully slow
Opportunity Identification Do you have a Smart Meter program in progress or planned? Are you able to load and analyze all of your information fast enough to
support decision making? Do your applications struggle to meet SLAs due to increased data volume? Have your storage costs exploded due to increased data volumes? Is sensitive customer meter information secure?
Informix Time SeriesNetezzaOptim Guardium
Solution:
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Distribution Load Forecasting and Scheduling:Business Problem:
Forecasting performed using highly aggregated historical data Accurate demand forecasting to enhance planning and trading Predict when you can profitably sell excess power and when you need
to hedge supply Incorporate renewables and distributed generation into forecasting mix Determine where to optimize investment on new capabilities to
address changing demand patterns of the future
Technical Challenges:
Large volumes of granular historical information required to improve accuracy of forecasting models
Data timeliness Need to understand which parameters actually correlate to drive
demand.
Opportunity Identification: Do you accurately predict when you have excess capacity that can be
traded? Can you accurately predict demand so that you can buy power at most
optimal prices? Do you know which factors most influence demand? Temperature,
weather, day of the week/month, holiday, prior day/week usage, etc. Do you know where to invest to support future demand?
• Netezza SPSS Predictive Analytics in Netezza and Infosphere StreamsCognosMine future demographic projections to determine where to build new plants and transmission facilities
Solution:
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Asset Management and Sensor Data:
Business Problem: How to determine the best use of maintenance resources. Can you find which operational data is an indicator of impending
equipment problems? Today’s approach to EAM relies heavily on institutional knowledge and
anecdotal insights. Understanding which failures have the greatest cost & operational
impact?
Technical Challenges: Identifying early indicators of equipment health issues Managing all relevant performance information about all types of
equipment Real time monitoring of asset conditions
Opportunity Identification: Can you turn the vast amounts of Enterprise Asset Management /
Metering / Sensor & SCADA data into actionable insight, foresight and prescriptions for maintenance activities?
Is too much maintenance activity focused on unproductive work?
• Netezza
• Identify and integrate the wide variety of data that can impact equipment health SPSSIntegration with Streams and Enterprise Asset Management System to implement predictive maintenance
Solution:
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Instrumented + Interconnected + Intelligent
… gives us the opportunity to think and act in new ways to make assets more
productive, efficient, and secure.
+ + =
The vision
SMARTER PLANETINSTRUMENTED
INTERCONNECTED
INTELLIGENT
PEOPLE
COMPANIES, INSTITUTIONS, INDUSTRIES
MAN-MADE SYSTEMS, NATURE’S SYSTEMS
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Measuring, Monitoring, Modeling and Managing
MeteringSensing
Real Time Data Integration
Real Time+ Historical Data
Data Modeling + Analytics
Visualization+ Decisions
Data modeling and analytics to create insights from data to feed decision support and actions
Feed
back
to us
er an
d data
sour
ce;
Incen
tives
and a
ction
s to c
hang
e beh
avior Feedback to user and data source;
Incentives and actions to change behavior
Comparison of historical data, with newly collected data
Data collection
Data Integration
Source: IBM Corporate Strategy
What does it mean to become Smarter?
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Examples of Smarter Physical infrastructureSmart Meters to reduce power consumption through
demand response.
Many bridges now have built-in sensors to monitor stress and indicate potential failure.
Locomotives built by Bombardier have on-board computer systems using telematics for real-time diagnostics.
A datacenter reduces energy consumption and optimizes service delivery by collecting power, thermal and temperature inputs from IT equipment,
datacenter infrastructure and facilities.
Smart buildings use building automation systems to optimize comfort, safety and energy consumption.
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More Accurately define work locations
When a new service request is created, either manually or through a call center, having access to a map of the region to determine the location of the problem leads to a more efficient resolution.
Plan and schedule work by area
Query a map by Address
Optimize technicians travel time
Advanced analytics
Ability to look at a number of open work orders and create a project or work package using a map view. Query work order by status, work type or craft requirements to find related work.
When trying to locate an asset or work order users can query the map by a specific address.
By having a work orders location accurately specified, there is less time spent on travel trying to find the correct address or location, and less time traveling between work locations inefficiently.
Ability to overlay information on a map like traffic or weather information, asset failure history or population to prioritize work, schedule outages or plan future maintenance projects.
Maximo Spatial - Features and Benefits
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Maximo Oil & Gas/HS&E 7.5.1 - Q1 2013
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Survey and Audit is required by Maximo customers to meet “Quality Management System” requirements.
Permit to Work supports full permit to work process including initiation of a permit from a Work Order and an ability to incorporate permit information into Operator Logs.
Turnarounds and Modifications introduces the capability to manage turnaround and modification project preparedness and execution. Customers are now able to create resource profiles associated with a turnaround and modification project.
Creation of certification records for assets, locations, surveys and audits fulfills compliance requirements for asset intensive companies.
Address critical gaps that remain in the HSE market, which will address opportunities in both the Oil & Gas market and the overall Safety market:
Corporate Responsibility
GHG & EnergyManagement
ProductStewardship
Environmental Management
Health & SafetyManagement
Operational Risk Management
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Defining and implementing a Maintenance Strategy …Service...Condition Based ..RCM
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Standards for Failure reporting:Failure => Cause => Remedy
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Smarter Infrastructure Growth
• Advanced Scheduling and Field Work Force Management
• Focus on Mobile Applications
• Data Center Infrastructure Management
• Asset Performance Management and Analytics
Four primary investment themes for 2013 and beyond.
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A new approach to Workforce ManagementSupport for optimization models, automated labor and
crew assignment
IBM Maximo Scheduler 7.5.x Embedded engine delivers objective based optimization
models Scenario based work planning Graphical crew management capabilities Optimized spatial scheduling for reduced crew windshield time
Replaces the need for pure planning and scheduling tools
Effective resource utilization through optimized work schedules
Improves the ability to respond quickly to emergency situations
Planned Availability 4Q 2013
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Advancing capabilities for better business outcomesOptimize an increasingly mobile workforce to increase organizational effectiveness
IBM Maximo Mobile 7.5.1 Device support extended to the Android platform RFID support for Asset Audits and Enhanced history and
exception handling Barcoding via camera – no scanner required Supports Device inherent capabilities - Voice to Text and
Photo attachments
Expands choice of available ruggedized field devices
Improved performance for increased productivity
Enables Scheduler Field Technicians
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• Investing in a phased rollout of a new mobile solution ‘Maximo Anywhere’ based on IBM’s WorkLight technologies
• Run on modern o/s and Smart devices (phones, tablets), leveraging device specific capabilities
• Support connected and disconnected scenarios• Easily tailor the mobile UI, for delivered applications and ability to create custom
applications
• Redefine the way work is performed and information is accessed with a common UI across the portfolio (Maximo, SmartCloud Control Desk, TRIRIGA)
Mobility Enterprise Application PlatformPlanned
Availability 3Q 2013
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Accelerated cross-functional coordination of resources and tasks
Enhance visibility of business impact of issues across IT, space, power, cooling
Enhance problem identification & resolution by correlating IT & non-IT events
Manage complexity and risk by enabling increased visibility and automation across digital and physical infrastructures
IBM SmartCloud Control DeskIntegrated view of resources & relationships beyond the data center; can visualize on mapsAutomated logical fixes thru endpoint management integrationWhat-if impact analytics
IBM Data Center Infrastructure MgmtPartnership with Emerson linking management of the logical and physical aspects of the data center
Extending IT Asset Management Solutions
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Schedule & Resource Optimization
Asset Management Based Analytics
Scorecards, KPI’s & Reporting
Performance Scoring
Historical Performance Analysis
Predictive Analysis
Failure & Remaining service life analytics
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Automate execution based on insights from operational data to increase predictability of outcomes
IBM Predictive Asset OptimizationBig Data, Asset Management and Predictive Analytics software and services with a pre-built solution framework Analyzes structured, unstructured and streaming information to determine asset performancePredicts asset failure to optimize quality and supply chain processesIntegrates data and predictive insights to proactively enable corrective actions
Reduces repeat repairs by up to 50%
Reduces overall accident rates by 20% or more
Reduces utility network incidents by up to 41%
Advancing capabilities for better business outcomes
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IBM Asset Management Benefits for CompaniesBusiness Scenarios ROI Points Customer Examples
Labor Utilization Up 10-20% A major US railroad saved US $5M by better tracking labor to specific work
Asset Utilization Up 3-5% Reduction in forced outages for a multi-state power generation company expected to yield $2.1 million annual savings
Equipment Purchases Down 3-5% A pipeline company saved US $4M by meeting 100% availability with fewer vehicles
Warranty Recoveries Up 10-50% A consumer products company with a medium size fleet increased warranty recovery 50%
Inventory Needs Down 20-30% A large drilling company was able to identify US $12M in excess or obsolete inventory
Inventory Carrying Costs Down 5-20% A railroad reduced saved US $1.8M impacting financing,
insurance, handling, overhead, etc.
Material Costs Reduced 10-50% A rail maintenance service company reduced costs 20% by optimizing material purchases
Purchasing Labor Reduced 10-50% A fleet management company reduced purchasing staff by 20%
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Asset Management Maturity
5Initial EAM ImplementationInitial EAM Implementation55--10 years for Optimization10 years for Optimization
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Remember………
Smarter Asset Management begins with understanding where you stand.
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Questions
Saif Chowdhury ([email protected]) – Tiger Team, Energy & Utilities
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