psug 2011 session 7 - automation lifecycle · pdf fileit’s not easy trying to manage...

Copyright © 2011 Rockwell Automation, Inc. All rights reserved.

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Rockwell Automation Process Solutions User Group (PSUG)November 14-15, 2011Chicago, IL – McCormick Place West

Automation Lifecycle

Dave CarpenterProcess Services Manager

Lonnie MorrisLifecycle Services Manager

Session Abstract

This session will share recommendations as process automation systems approach the end of their expected life, the availability of parts and resources become more difficult to obtain, until the point one or both are exhausted. Learn how to proactively manage your automation system lifecycle to maximize uptime, prioritize migrations, and bridge to new technology.

2Copyright © 2011 Rockwell Automation, Inc. All rights reserved.

Today’s Agenda

1. Automation Lifecycle Perspective and Background

2. Quantifying Automation Lifecycle Risks

3. Mitigating Automation Lifecycle Risks

4. Eliminating Automation Lifecycle Risks

5. Summary and Q&A


Defining Automation Obsolescence Risk . . .

What Is Automation Obsolescence Risk?

The extended downtime risk automation users take (knowingly or unknowingly) using products that are no longer available for sale and have limited to no serviceability remaining.

“Maintain on-going awareness of automation obsolescence and develop a strategy to

mitigate and ultimately eliminate this risk”


The goal is quite simple:

When is the optimal time to replace legacy (automation) equipment?

• Capital constraints still present

• No consistent replacement policies

• Capital funding available to prevent a failure– But you cannot buy too soon nor can you wait until it is too late

• Fear of lost production is the #1 factor in deciding to upgrade

• Conclusions / Recommendations: Conduct an assessment as far ahead of time as possible. It’s the only way to be prepared for failure and catch failure at its earliest point and prevent extended downtime.

You Cannot Start (Planning) Too Soon!

• Migrations to occur in phases vs. wholesale basis

Survey Summary


What is your obsolescence concern?

Economic uncertainty and rapidly advancing technologies are driving market focus towards the development of

improved obsolescence mitigation strategies.

What we hear . . .

“Help me identify what products are obsolete in my plant”

“What options are available to reduce my obsolescence risk?”

“I want to migrate on my timeline”

“ I Must keep my equipment running”

“How do I better quantify my obsolescence risk to plant management?”


What is being asked of you?

While at the same time……..Assets are Aging & Obsolescence Risk is GROWING

Automation users are being asked to “Do More with Less”

• Contain Costs• Improve Productivity• Reduce Risk

• Nearly 3/4 of U.S. plants are more than 20 yrs. old (source: IndustryWeek/MPI)

• The installed base of legacy automation systems reaching the end of their useful life ~$65B

• Average Impact of Unscheduled Downtime: $20B or almost 5% of production in the process industry (source: ARC Advisory Group)


Lifecycle costs estimatedApproximately 18% of a facility's operating cost can be

attributed to its control system and associated maintenance.

Recent surveys have also indicated that 80% of requested maintenance is unnecessary, and, if a problem occurs, only one-third of the time assigned to the repair is actually spent on the repair. The remaining two thirds of the maintenance

time is spent in diagnosis. (ISA)

Increased Costs = Increased Pressure


Increased Downtime Pressures


Industry Average Hourly Downtime CostsEnergy (Including Oil & Gas) $2,817,846.00Discrete Manufacturing (Including Auto) $1,610,654.00Pharmaceuticals $1,082,252.00Food/Beverage Processing $804,192.00Consumer Products $785,719.00Chemicals $704,101.00Utilities (Power & Water) $643,250.00Metals/Natural Resources $580,588.00Package Shipping (Distribution) $28,000.00

Meta Group: Quantifying Performance and Loss

As plant productivity improves, what happens to the cost of downtime?

10

Increased Cost Pressures

Incremental Financial Performance Improvement

Self-Maintenance Service Contract

Total Usage per year 8,400 hours 8,400 hoursFailures per year 6 2

MTBF 1,400 hours 4,200 hoursMTFR 0.25 hours 0.25 hoursMTTR 48.00 hours 4.00 hours

Lost time per event 48.25 hours 4.25 hoursLost time per year 289.50 hours 8.50 hours

Availability 8,110.50 hours 8,391.50 hoursAvailability% 96.55% 99.90%

ProductionProduction Rate 50 units per hour 50 units per hour

Selling Price, each $285 $285 COGS $171 $171

Gross Profit $114 $114 Losses

Lost Production 14475 units 425 unitsLost Revenues $4,125,375 $121,125

Lost Gross Profits $1,650,150 $48,450

Figure 3


It’s not easy trying to manage your automation lifecycle alone.

All these Pressures….What’s the plan?

In a 2010 study of process automation users, Automation Research Corporation (ARC) identified that 88% of these users confirmed the use of automation beyond the

manufacturer’s obsolescence date. In this same study, a clear majority of users acknowledge to having NO lifecycle plan.


How do you . . . ?

Plant ReliabilityMRO ManagementBudget PlanningData Convergence

Product QualityProduction RatesPlant Floor SafetyEnvironment

Without impacting

Quantify Obsolescence

Risk

Mitigate Obsolescence

Risk

Eliminate Obsolescence

Risk

While Improving


Agenda





5. Summary and Q&A


Quantifying Obsolescence Risk

ResearchPrioritize

Identify

Lifecycle

Accurately quantifying obsolescence risks is an evolving process that must be repeated as products progress through their lifecycle


Identify - Holistic Asset Criticality Assessment

• Step 1 - Gap Analysis– Review of current operating conditions as compared to target performance

• Step 2 - Team Based Risk Assessment – Equipment Criticality– Review probability & consequence of failure for each asset and its impact on:

• Environment, Health & Safety• Public Perception • Operations • Personnel• IT• Finance

– Formalize criticality ranking report (assets and equipment)– Prioritize assets and equipment to take action

• Step 3 - Preventive and Predictive Maintenance Plan Development– Develop actions that improve reliability of equipment with the highest criticality rankings– Take actions that reduce risk to health & safety, the environment, public perception, and operations– Develop standard operating procedures to incorporate into the PM system

Assess Situation and Develop Strategy to Improve Reliability15Copyright © 2011 Rockwell Automation, Inc. All rights reserved.

Identify – Installed Base Evaluation

• Define Goals• Determine Scope • Dedicate Qualified Resources • Develop a Collection Strategy

Safe collection and attention to detail are necessary for success

Locate and document automation inventory across entire facility Identify


Research

Compare collected data against manufacturers product availability Research

• Manufacturer’s Web sites & Notifications• Publications• Distributors / Reps / Resellers

Allen-Bradley Products – www.ab.com/silver

• Compare MRO spares vs. installed base– Identify inventory “gaps”– Identify inventory “orphans”– Compare repair/replace activity

• Collect and document product lifecycle status


Prioritize

Develop hierarchical method to quantify obsolescence risk Prioritize

• Aggregate data to highlight areas of greatest obsolescence concern

• Design plan to accept, mitigate and eliminate obsolescence risk

• Develop process to obtain on-going lifecycle status changes for installed products


Prioritize to maximize plant reliability

Example Spares Inventory Analysis from an Installed Base Evaluation

• Customer’s Spare Part Inventory Valued at $238,728 List (140 Items)

• Excess-Active and Inactive Inventory represents 78% of Spare Part Inventory, or $185,978 (93 Items)

• Estimated Annual Carrying Cost of Excess-Active and Inactive Inventory based on List Price @ 12% - $22,317

$52,750 22%

$8,453 4%

$177,52574%

Active Inventory Excess ActiveInactive

Inventory reduction efforts MUST be driven through Formalized and Resource Focused program for consistency & documentation!


Recommended Spare Inventory

• Based on Customer’s Installed Base, recommended inventory is valued at $266,872 (137 Items)

• Recommended Inventory Gap of $214,122 (90 Items), or 80% based on MTBF analysis

• Active Inventory that forms 22% of spares also represents 20% of total recommended inventory

• Lack of the correct inventory leads to:– Longer Lead Times– Higher Cost of downtime– Decreased Equipment Reliability

Inventory Spare Parts gap widens as a reflection of recommended inventory levels.

$52,750 20%

$214,12280%

Active Inventory Insufficient Inventory


Where do you go from here?

How long do you intend to operate equipment?Is support readily available?Is capital funding available?Is there applicable new technology available?What are the migration implications (training, support, etc.)?

Once your risk has been quantified, a critical decision must be made . . .

Mitigate Risk

Eliminate Risk


Product Risk Understanding and Mitigation

The critical question to be answered for risk mitigation is this: For how much longer can you be assured that service support will be available?

Product Announcement(Silver Period)

??

??

?

??

Optimally, migration plans should be developed prior to

product discontinuation

Risk of product failure highest with infant mortality and EOL wear-out

Need for service increases with time. Bathtub failure rate curve applies to all manufacturing equipment. Everything eventually wears out.

Risk increases when product is discontinued

Maintenance practices and spares stocking should be re-evaluated to insure maximum product life can be achieved. Catastrophic failures can no longer be replaced with new.

Discontinued Product(Increased Risk)

Risk becomes critical when component availability and expertise become limited

Migration plans must be in place to insure against uninterrupted operation

Discontinued Support(Critical Risk)


Agenda





5. Summary and Q&A


Obsolescence Risk Mitigation

1. Preventive Maintenance “Critical Actions”2. Access to Legacy Technical Support3. Spare Replacement & Legacy Repair Support4. On-Going Management of

Obsolescence Status

Mitigating risk of irreplaceable, obsolete equipment requires a renewed level of attention...Hyper-Care Support


Preventive Maintenance for Discontinued Products

Are filters replaced regularly?

Legacy Products DEMAND adherence to consistent Preventive Maintenance activities if maximum product life is desired

Are programs/parameters backed‐up?

When was battery last replaced?

When was power last checked?Was there a product notification on equipment?

Is current operating environment within OEM specifications?Are cooling fans operational and clear of

obstructions?When is the last time grounding was checked?Does the equipment possess the last

firmware update?

How often are PM actions performed?

Do you have an updated logbook documenting inspections of obsolete equipment?


Access to Legacy Remote Support

Are newer technicians skilled at maintaining all legacy products? • Can they:

– Install or re-install . . . – Configure . . . – Maintain . . . – Diagnose operating problems for . . . – Fix operating problems associated with . . . – Perform basic programming tasks for . . .

• all Legacy Products?

Have the “legacy experts” been promoted, moved to different departments, employers or retired?

58% of companies surveyed have faced issues with training young engineers and technicians to

operate and maintain older control systems26Copyright © 2011 Rockwell Automation, Inc. All rights reserved. (source: ARC Advisory Group – 6/10)

Access to Legacy Spares and Repair Support

Do you carry MRO automation spares inventory? • If yes:

– How was it calculated?Has it been effective? By what measure?Is it too much? Is it too little?What is your carrying cost?Is it in operating condition? How do you know?Did you purchase, consign or leverage supplier?

– Do you know what is active, excess-active and inactive?– Do you know what is legacy vs. current inventory?– How have you re-calculated for your legacy installed base?

• If no:– How are you going to support legacy products when you can

no longer acquire new?

MarcusEvans Maintenance conferences 2010

An ineffective spares management process can result in at least 15% - 35% of machine down time


On-Going Management of Obsolescence Status

Are you prepared to make the investment to maintain an obsolescence database? • If yes:

– Who has the expertise to maintain it?

What makes them qualified?Do they have the bandwidth?What tools are at their disposal?

• If no:– How do you avoid future problems

regarding obsolescence?

The key to success for better obsolescence management is committing to a continuous process to identify-analyze-prioritize.

Are You Committed?28Copyright © 2011 Rockwell Automation, Inc. All rights reserved.

Risk Mitigation - Lifecycle Service Agreement

• Base services include:– Reserved Repair (or exchange when available)– Remote Support for Discontinued Product– On-site Services for Discontinued Product

• Products include Rockwell Automation:– AC & DC drives– Programmable controllers– Operator interface– Medium voltage drives– Motion products

• Support assurance for product no longer available for sale

• Quarterly usage/update reporting• Migration planning support• Up to 5-year contract options• Monthly / quarterly payment options• Continuous awareness of obsolescence risk• Additional services available

A Rockwell Automation Lifecycle Service Agreement is a service agreement designed to minimize the risk of operating discontinued

Rockwell Automation hardware as you migrate to newer technology.


Agenda





5. Summary and Q&A


Migration Solutions: Turnkey to Self-Serve

Migration planning & execution options to meet YOUR needs

Self-ServeTools &

Programs

Global execution of complete turnkey

migrations with the power of Rockwell

Automation standing behind you

Integrators & Solution

Providers

Turn-key Solutions

Global network of trusted systems integrators

offering broad experience in Rockwell Automation

technologies

Programs and Tools developed by

Rockwell Automation to help you expertly

and quickly migrate to newer technology at

your pace


Obsolescence Risk Elimination –Managed Migration

Installed(Legacy)

Control System

Customer Considerations:

• Downtime for new install• New application code development• Employee training on new systems• Network compatibility• Retain field wiring investment• Disposal of legacy products• Managing spares

New(Rockwell)

Control System

Rockwell Automation Products, Tools & Services

New products:• Integrate with existing systems

(Drop-in replacement)

Migration of legacy products:• Migration tools

(Adaptors, Code Conversion, IAB, etc.)• Commercial programs• Services (Installed Base Evaluation)

Simplify the plant maintenance effort by making automation “Common & Current”


Global Process Technical Consultants (GPTC)

• Rockwell recognizes that the key to selling process control is having process domain expertise

• Rockwell has over 33 process control engineers worldwide for pre-sales support and technology adoption engagements

• Process Control Engineers come from a variety of industry segments as well DCS companies


DCS Migration Enablers

OPC Server SWDatabase Conversion Tool

Faceplate Library

Graphics and Config Conversion Service

OLDi SAM Interface

Control Strategy Library

Legacy I/O Scanner

Custom Cable Designs

08

N/A

Green = Available today

Yellow = Future Developments

Blue = Partner Capability


Bailey Migration Example


Bailey Conversion Tools

Tools and Services to convert Bailey Console database tags and control logic to PlantPAx


Bailey Hardware Conversion Solutions

Custom Cable Solutions

Peer to Peer communications for HMI Console replacements (<40K tags)


Bailey Migration Solutions

http://www.rockwellautomation.com/solutions/ migration/programs.html#dcs

38

Agenda





5. Summary and Q&A


Summary

• Effective management of automation obsolescence risk can be accomplished without sacrificing profitability, quality, and production rates

• Quantifying Obsolescence should be looked at as a three-step process:1. Identify2. Research3. Prioritize

• Constantly monitor product availability and serviceability • Provide “Intensive Care” Support for legacy installed base• Minimize surprises through Managed Migration Planning

Successful implementation of these initiatives will significantly minimize obsolescence risks and drive

improvements in plant uptime as well as improve corporate financial performance.


Copyright © 2011 Rockwell Automation, Inc. All rights reserved. 41

Lifecycle Support

Solutions and Services for the entire automation lifecycle

Global Solutions• Maximize Productivity

• Optimize Plant Assets

• Improve Financial Performance

• Global Execution

• Domain Expertise

• Project Management

Services & Support

More Information at Automation Fair 2011…

• Booth 323: Services and Solutions

• T1: Process: Migration Strategies and Tools for Aging Distributed Control Systems– Room: W470A - 8:00 AM, Wednesday & Thursday– Presenter: Mike Vernak

• T37: Maintenance: A Proactive Approach to Lifecycle Management and Product Obsolescence

– Room: W474B - 9:00 AM, Wednesday & Thursday– Presenter: Lonnie Morris

• T39: Maintenance: Training Solutions to Help Improve Workforce Productivity– Room: W474B - 11:00 AM– Presenter: Glenn Goldney

• W4: Migration Management Solutions - Tools and Services– Room: W184D - 2:30 PM, Wednesday & Thursday– Presenter: Chris Watkins


• Booth 531: Process Solutions


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Rockwell Automation Process Solutions User Group (PSUG)November 14-15, 2011Chicago, IL – McCormick Place West

Thank You!!!Questions? Comments?

Dave [email protected]+1.440.646.4426

Lonnie [email protected]+1.414 382 1362

psug 2011 session 7 - automation lifecycle · pdf fileit’s not easy trying to manage...

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