Final Report

Business credibility of System Integration in ICT domain using SCADA

CHAPTER 1

INTRODUCTION

1.1 PROJECT OBJECTIVE

HCL Infosystems Limited is India’s premier IT System Integration company, with a strong

legacy and over thirty years of experience in this domain, HCL offers System Integration

services as a single-window turnkey solution, that integrate best-in-class products and

solutions to meet the business needs of enterprise.

HCL Infosystems wanted to implement a new System Integration Vertical in the automation

sector citing their competency in the hardware, software and networking domains. HCL

Infosystems wanted to implement SCADA as their new vertical and I had to conduct a

market feasibility study in order to suggest certain Go-to market strategy for HCL

Infosystems to enter the market.

1.2 DESCRIPTION OF THE SITUATION

Lack of a Clear Business Case to justify investments on SCADA Systems dampens market

potential. With increasing power requirements and improved economic forecasts in India,

utilities are elevating the priority of grid management technologies such as supervisory

control and data acquisition (SCADA) systems. However, a significant restraint on the

market is the frequent inability of utility personnel to clearly justify to approving officers of

the need for investments on these systems. Consequently, vendors need to refashion

approaches to SCADA system justification and work closely with SCADA personnel at

different utilities to develop convincing business plans. Besides tangible benefits, many

unquantifiable or unanticipated benefits can also be identified to add value to the investments

and help demonstrate the importance of SCADA technology as a strategic tool for operations.

This research analyses the Indian markets for power transmission SCADA systems. The

study reveals important differences between the various electric utility segments and non-

utility segments with power transmission application, thus providing a deeper understanding

of the markets and its opportunities. It further provides a review of Government of India’s

Eleventh 5 year plan on the automation sector supporting SCADA systems.

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CHAPTER 2

LITERATURE SUPPORT

SCADA is an acronym that stands for Supervisory Control and Data Acquisition. SCADA

refers to a system that collects data from various sensors at a factory, plant or in other remote

locations and then sends this data to a central computer which then manages and controls the

data.

Fig: Typical SCADA System

SCADA is a term that is used broadly to portray control and management solutions in a wide

range of industries. Some of the industries where SCADA is used are Water Management

Systems, Electric Power, Traffic Signals, Mass Transit Systems, Environmental Control

Systems, and Manufacturing Systems.

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2.1 SCADA AS A SYSTEM

There are many parts of a working SCADA system. A SCADA system usually includes

signal hardware (input and output), controllers, networks, user interface (HMI),

communications equipment and software. All together, the term SCADA refers to the entire

central system. The central system usually monitors data from various sensors that are either

in close proximity or off site (sometimes miles away).

For the most part, the brains of a SCADA system are performed by the Remote Terminal

Units (sometimes referred to as the RTU). The Remote Terminal Units consists of a

programmable logic converter. The RTU are usually set to specific requirements, however,

most RTU allow human intervention, for instance, in a factory setting, the RTU might control

the setting of a conveyer belt, and the speed can be changed or overridden at any time by

human intervention. In addition, any changes or errors are usually automatically logged for

and/or displayed. Most often, a SCADA system will monitor and make slight changes to

function optimally; SCADA systems are considered closed loop systems and run with

relatively little human intervention.

One of key processes of SCADA is the ability to monitor an entire system in real time. This

is facilitated by data acquisitions including meter reading, checking statuses of sensors, etc

that are communicated at regular intervals depending on the system. Besides the data being

used by the RTU, it is also displayed to a human that is able to interface with the system to

override settings or make changes when necessary.

SCADA can be seen as a system with many data elements called points. Usually each point is

a monitor or sensor. Usually points can be either hard or soft. A hard data point can be an

actual monitor; a soft point can be seen as an application or software calculation. Data

elements from hard and soft points are usually always recorded and logged to create a time

stamp or history.

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2.2 USER INTERFACE (HMI)

A SCADA system includes a user interface, usually called Human Machine Interface (HMI).

The HMI of a SCADA system is where data is processed and presented to be viewed and

monitored by a human operator. This interface usually includes controls where the individual

can interface with the SCADA system.

Fig: Typical Human Machine Interface

HMI's are an easy way to standardize the facilitation of monitoring multiple RTU's or PLC's

(programmable logic controllers). Usually RTU's or PLC's will run a pre programmed

process, but monitoring each of them individually can be difficult, usually because they are

spread out over the system. Because RTU's and PLC's historically had no standardized

method to display or present data to an operator, the SCADA system communicates with

PLC's throughout the system network and processes information that is easily disseminated

by the HMI.

HMI's can also be linked to a database, which can use data gathered from PLC's or RTU's to

provide graphs on trends, logistic info, schematics for a specific sensor or machine or even

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make troubleshooting guides accessible. In the last decade, practically all SCADA systems

include an integrated HMI and PLC device making it extremely easy to run and monitor a

SCADA system.

2.3 SCADA SOFTWARE AND HARDWARE COMPONENTS

SCADA systems are an extremely advantageous way to run and monitor processes. They are

great for small applications such as climate control or can be effectively used in large

applications such as monitoring and controlling a nuclear power plant or mass transit system.

SCADA can come in open and non proprietary protocols. Smaller systems are extremely

affordable and can either be purchased as a complete system or can be mixed and matched

with specific components. Large systems can also be created with off the shelf components.

SCADA system software can also be easily configured for almost any application, removing

the need for custom made or intensive software development.

2.4 SCADA ARCHITECTURES

SCADA systems have evolved through 3 generations as follows :

First generation: "Monolithic"

In the first generation, computing was done by mainframe systems. Networks didn’t exist at

the time SCADA was developed. Thus SCADA systems were independent systems with no

connectivity to other systems. Wide Area Networks were later designed by RTU vendors to

communicate with the RTU. The communication protocols used were often proprietary at

that time. The first-generation SCADA system was redundant since a back-up mainframe

system was connected at the bus level and was used in the event of failure of the primary

mainframe system.

Second generation: "Distributed"

The processing was distributed across multiple stations which were connected through a LAN

and they shared information in real time. Each station was responsible for a particular task

thus making the size and cost of each station less than the one used in First Generation. The

network protocols used were still mostly proprietary, which led to significant security

problems for any SCADA system that received attention from a hacker. Since the protocols

were proprietary, very few people beyond the developers and hackers knew enough to

determine how secure a SCADA installation was. Since both parties had vested interests in

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http://en.wikipedia.org/wiki/Bus_(computing)

http://en.wikipedia.org/wiki/Wide_Area_Network

http://en.wikipedia.org/wiki/Mainframe_computer


keeping security issues quiet, the security of a SCADA installation was often badly

overestimated, if it was considered at all.

Third generation: "Networked"

These are the current generation SCADA systems which use open system architecture rather

than a vendor-controlled proprietary environment. The SCADA system utilizes open

standards and protocols, thus distributing functionality across a WAN rather than a LAN. It is

easier to connect third party peripheral devices like printers, disk drives, and tape drives due

to the use of open architecture. WAN protocols such as Internet Protocol (IP) are used for

communication between the master station and communications equipment. Due to the usage

of standard protocols and the fact that many networked SCADA systems are accessible from

the Internet; the systems are potentially vulnerable to remote cyber-attacks.

2.5 SCADA APPLICATIONS

SCADA systems are used to automate complex industrial processes where human control is

impractical — systems where there are more control factors, and more fast-moving control

factors, than human beings can comfortably manage.

Around the world, the most typical implementation of SCADA systems include:

Electric power generation, transmission and distribution:

Electric utilities use SCADA systems to detect current flow and line voltage, to monitor the

operation of circuit breakers, and to take sections of the power grid online or offline.

Water and sewage:

State and municipal water utilities use SCADA to monitor and regulate water flow, reservoir

levels, pipe pressure and other factors.

Buildings, facilities and environments:

Facility managers use SCADA to control HVAC, refrigeration units, lighting and entry

systems.

Manufacturing:

SCADA systems manage parts inventories for just-in-time manufacturing, regulate industrial

automation and robots, and monitor process and quality control.

Mass transit:

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http://en.wikipedia.org/wiki/Internet_Protocol

http://en.wikipedia.org/wiki/Security_through_obscurity


Transit authorities use SCADA to regulate electricity to subways, trams and trolley buses; to

automate traffic signals for rail systems; to track and locate trains and buses; and to control

railroad crossing gates.

Traffic signals:

SCADA regulates traffic lights, controls traffic flow and detects out-of-order signals.

2.6 TRENDS IN SCADA

There is a trend for PLC and HMI/SCADA software to be more "mix-and-match". In the mid

1990s, the typical DAQ I/O manufacturer supplied equipment that communicated using

proprietary protocols over a suitable-distance carrier like RS-485. End users who invested in

a particular vendor's hardware solution often found themselves restricted to a limited choice

of equipment when requirements changed (e.g. system expansions or performance

improvement). To mitigate such problems, open communication protocols such as IEC

60870-5-101 or 104, IEC 61850, DNP3 serial, and DNP3 LAN/WAN became increasingly

popular among SCADA equipment manufacturers and solution providers alike. Open

architecture SCADA systems enabled users to mix-and-match products from different

vendors to develop solutions that were better than those that could be achieved when

restricted to a single vendor's product offering.

Towards the late 1990s, the shift towards open communications continued with individual

I/O manufacturers as well, who adopted open message structures such as Modbus RTU and

Modbus ASCII (originally both developed by Modicon) over RS-485. By 2000, most I/O

makers offered completely open interfacing such as Modbus TCP over Ethernet and IP. The

North American Electric Reliability Corporation (NERC) has specified that electrical system

data should be time-tagged to the nearest millisecond. Electrical system SCADA systems

provide this Sequence of events recorder function, using Radio clocks to synchronize the

RTU or distributed RTU clocks.

SCADA systems are coming in line with standard networking technologies. Ethernet and

TCP/IP based protocols are replacing the older proprietary standards. Although certain

characteristics of frame-based network communication technology (determinism,

synchronization, protocol selection, environment suitability) have restricted the adoption of

Ethernet in a few specialized applications, the vast majority of markets have accepted

Ethernet networks for HMI/SCADA.

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http://en.wikipedia.org/wiki/Ethernet

http://en.wikipedia.org/wiki/Radio_clocks

http://en.wikipedia.org/wiki/Sequence_of_events_recorder

http://en.wikipedia.org/wiki/Millisecond

http://en.wikipedia.org/wiki/North_American_Electric_Reliability_Corporation

http://en.wikipedia.org/wiki/Modbus

http://en.wikipedia.org/wiki/Open_architecture

http://en.wikipedia.org/wiki/Open_architecture

http://en.wikipedia.org/wiki/DNP3

http://en.wikipedia.org/wiki/IEC_60870-5

http://en.wikipedia.org/wiki/RS-485


With the emergence of software as a service in the broader software industry, a few vendors

have begun offering application specific SCADA systems hosted on remote platforms over

the Internet. This removes the need to install and commission systems at the end-user's

facility and takes advantage of security features already available in Internet technology,

VPNs and SSL. Some concerns include security, Internet connection reliability, and latency.

SCADA systems are becoming increasingly ubiquitous. Thin clients, web portals, and web

based products are gaining popularity with most major vendors. The increased convenience

of end users viewing their processes remotely introduces security considerations. While these

considerations are already considered solved in other sectors of internet services, not all

entities responsible for deploying SCADA systems have understood the changes in

accessibility and threat scope implicit in connecting a system to the internet.

2.7 SCADA VENDORS

SCADA systems come in a myriad of types, sizes, and applications. They may

monitor/control only a few hundred points or tens of thousands of points. For the scope of

this report, only SCADA systems that apply to electrical transmission, distribution, water

treatment, traffic control, mass transit system and generation and were of substantial size

were evaluated. EMS contains a suite or modularized set of applications such as AGC, outage

coordination, load forecasting, remote clients, and business applications.

Frequently, many vendors enter or leave the SCADA market based on corporate buy outs.

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http://en.wikipedia.org/wiki/Web_based

http://en.wikipedia.org/wiki/Web_based

http://en.wikipedia.org/wiki/Thin_clients

http://en.wikipedia.org/wiki/Secure_Sockets_Layer

http://en.wikipedia.org/wiki/VPN

http://en.wikipedia.org/wiki/Internet

http://en.wikipedia.org/wiki/Software_as_a_service


Figure (a) shows the percentage of manufacturer use from the respondents of a recent

survey on existing systems.

Figure (b) identifies future vendors being considered for new EMS procurements. The

term

“EMS” in Figure (b) represents a consolidation of the existing installations (SCADA, DMS,

EMS, etc.) shown in Figure (a). The number of vendors in the legend of Figure (b) is less

than shown in Figure (a) due to industry consolidation and vendors no longer providing

SCADA systems.

The following are vendor profiles of the top six SCADA suppliers shown in Figure (b).

Company: Advanced Control Systems (ACS)

Background and Strengths: ACS was founded in 1975 to supply real-time control systems

and equipment to the electric utility industry. ACS has delivered more than 470 SCADA,

SCADA/AGC, DMS, and EMS masters and 11,000 RTUs. Their current masters are based

on UNIX software and workstations or workstations and servers using RISC processors in an

open network environment. A full line of RTUs is supplied, all with IED interface

capabilities and various communications protocols, including DNP 3.0. A full line of

substation equipment is offered from legacy RTUs to protocol’s converters/data concentrators

to substation automation systems with or without graphical user interface

Company: Siemens

Background and Strengths: Siemens Power Transmission and Distribution was formed to

focus specifically in the operations and needs of domestic and international electric utility

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markets. Siemens provides a complete range of products. Siemens is a supplier of SCADA

and automation systems to the electric, water, and gas utility industries as well as to industrial

customers worldwide. TeleGYR is now part of Siemens. Other products include SICAM

controllers and RTUs.

Company: QEI

Background and Strengths: Founded in 1960 as Quindar Electronics, QEI designs and

manufactures SCADA equipment and systems. The company supplies industries such as

water, gas, power, petroleum, pipeline, railroad, steel, communication, traffic control, and

telemetry. Products include the TDMS 2000 and RTUs.

Company: GE Network Solutions

Background and Strengths: Currently owned by GE Power systems. GE provides complete

solutions to support T&D automation programs. They provide both hardware and software

solutions.

Company: ABB

Background and Strengths: ABB is one of the world’s largest suppliers of automation

systems for the electric power industry. The ABB network management specializes in

SCADA/DMS/EMS applications software. Major products include the RANGER system.

ABB also integrates their own microprocessor-based relays with SCADA systems. They have

installed more than 5,000 substation automation systems worldwide.

Company: Alstom ESCA

Background and Strengths: Alstom provides small- and large-scale SCADA/EMS/DMS

systems. Primarily focused on the electric power industry, they provide hardware and

software in substation automation and real-time energy information systems. They are a

worldwide industry leader in SCADA technology. Products include e-terra Global energy

solutions.

2.8 SCADA EXPECTED LIFE AND DISPOSAL

Procurement, installation, and commissioning of a SCADA system is a time- and capital-

intensive process. As a result, major upgrades and/or replacements are performed

infrequently. The average life of a SCADA system is typically 8 to 15 years. This

corresponds with the expected life of typical hardware used. As a result, there is almost no

aftermarket value for these components. A web search for aftermarket SCADA hardware

confirmed this. The only exception is in the nuclear industry. Many nuclear plants still have

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original control system hardware that could be 20 to 30 years old. Much of it still uses analog

technology as compared to newer digital hardware. With the multitude of requirements that

need to be met for a control system replacement, in addition to the complexity of these

systems, many plant owners choose to limp along with older controls rather than upgrade.

This is especially true of plants that are near the end of their operating licenses.

Substation and control center hardware, once removed, is typically discarded or stored

indefinitely in a warehouse or back room. One utility in fact gave its old RTU cabinets to its

employees to use as smokers, which apparently works quite well.

CHAPTER 3

METHODOLOGY OF STUDY

3.1 CUSTOMERs PERCEPTION OF SCADA

SCADA is used in nearly every industry and public infrastructure project — where

automation increases efficiency.

What’s more, these examples don’t show how deep and complex SCADA data can be. In

every industry, managers need to control multiple factors and the interactions between those

factors. SCADA systems provide the sensing capabilities and the computational power to

track everything that’s relevant to your operations.

3.1.1 VALUE OF SCADA

Maybe you work in one of the fields listed in the previous section; maybe you don’t. But

think about your operations and all the parameters that affect your bottom-line results:

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Does your equipment need an uninterrupted power supply and/or a controlled

temperature and humidity environment?

Do you need to know — in real time — the status of many different components and

devices in a large complex system?

Do you need to measure how changing inputs affect the output of your operations?

What equipment do you need to control, in real time, from a distance?

Where are you lacking accurate, real-time data about key processes that affect your

operations?

3.1.2 EVALUATING SCADA SYSTEM

SCADA can do a lot for the clients — but how can the clients make sure that you’re really

getting the full benefits of SCADA? Evaluating complex systems can be tricky — especially

if you have to learn a new technology while still doing your everyday job.

But you’ve got to be able to make an informed decision, because the stakes are incredibly

high. A SCADA system is a major, business-to-business purchase that your company will

live with for maybe as long as 10 to 15 years. When you make a recommendation about a

permanent system like that, you’re laying your reputation on the line and making a major

commitment for your company.

And as much as SCADA can help you improve your operations, there are also some pitfalls

to a hasty, unconsidered SCADA implementation:

You can spend a fortune on unnecessary cost overruns

Even after going way over budget, you can STILL end up with a system that doesn’t

really meet all your needs

Or just as bad, you can end up with an inflexible system that just meets your needs

today, but can’t easily expand as your needs grow

3.1.3 WHAT CUSTOMERS WANT FEOM THE SCADA SYSTEM

The Two Most Important Components of SCADA System

Although you need sensors, control relays and a communications network to make a

complete SCADA system, it’s your choice of a master station and RTUs that really determine

the quality of your SCADA system.

Sensors and Networks

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Sensors and control relays are essentially commodity items. Yes, some sensors are better than

others, but a glance at a spec sheet will tell you everything you need to know to choose

between them.

An IP LAN/WAN is the easiest kind of network to work with, and if you don’t yet have LAN

capability throughout all your facilities, transitioning to LAN is probably one of your long-

term goals. But you don’t have to move to LAN immediately or all at once to get the benefits

of SCADA. The right SCADA system will support both your legacy network and LAN,

enabling you to make a graceful, gradual transition.

SCADA RTU requirements

Your SCADA RTUs need to communicate with all your on-site equipment and survive under

the harsh conditions of an industrial environment. Here’s a checklist of things you should

expect from a quality RTU:

a) Sufficient capacity to support the equipment at your site … but not more capacity

than you actually will use. At every site, you want an RTU that can support your

expected growth over a reasonable period of time, but it’s simply wasteful to

spend your budget on excess capacity that you won’t use.

b) Rugged construction and ability to withstand extremes of temperature and

humidity. You know how punishing on equipment your sites can be. Keep in

mind that your SCADA system needs to be the most reliable element in your

facility.

c) Secure redundant power supply. You need your SCADA system up and

working 24/7, no excuses. Your RTU should support battery power and, ideally,

two power inputs.

d) Redundant communication ports. Network connectivity is as important to

SCADA operations as a power supply. A secondary serial port or internal modem

will keep your RTU online even if the LAN fails. Plus, RTUs with multiple

communication ports easily support a LAN migration strategy.

e) Non-volatile memory (NVRAM) for storing software and/or firmware. NVRAM

retains data even when power is lost. New firmware can be easily downloaded to

NVRAM storage, often over LAN — so you can keep your RTUs’ capabilities up

to date without excessive site visits.

f) Intelligent control. As I noted above, sophisticated SCADA remotes can control

local systems by themselves according to programmed responses to sensor inputs.

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This isn’t necessary for every application, but it does come in handy for some

users.

g) Real-time clock for accurate date/time stamping of reports.

h) Watchdog timer to ensure that the RTU restarts after a power failure.

SCADA Master requirements

Your SCADA master should display information in the most useful ways to human operators

and intelligently regulated your managed systems. Here’s a checklist of SCADA master

must-haves:

a) Flexible, programmable response to sensor inputs. Look for a system that

provides easy tools for programming soft alarms (reports of complex events that

track combinations of sensor inputs and date/time statements) and soft controls

(programmed control responses to sensor inputs).

b) 24/7, automatic pager and email notification. There’s no need to pay personnel

to watch a board 24 hours a day. If equipment needs human attention, the SCADA

master can automatically page or email directly to repair technicians.

c) Detailed information display. You want a system that displays reports in plain

English, with a complete description of what activity is happening and how you

can manage it.

d) Nuisance alarm filtering. Nuisance alarms desensitize your staff to alarm reports,

and they start to believe that all alarms are nonessential alarms. Eventually they

stop responding even to critical alarms. Look for a SCADA master that includes

tools to filter out nuisance alarms.

e) Expansion capability. A SCADA system is a long term investment that will last

for as long as 10 to 15 years. So you need to make sure it will support your future

growth for up to 15 years.

f) Redundant, geo diverse backup. The best SCADA systems support multiple

backup masters, in separate locations. If the primary SCADA master fails, a

second master on the network automatically takes over, with no interruption of

monitoring and control functions.

g) Support for multiple protocols and equipment types. Early SCADA systems

were built on closed, proprietary protocols. Single-vendor solutions aren’t a great

idea — vendors sometimes drop support for their products or even just go out of

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business. Support for multiple open protocols safeguards your SCADA system

against unplanned obsolescence.

3.1.4 FIVE MOST IMPORTANT QUERIES A CUSTOMER MAY ASK

1. Does the SCADA package integrate with both existing and new hardware?

More often than not you have an existing infrastructure such as programmable logic

controllers (PLCs) and remote terminal units (RTUs) to which you need to add new devices

to optimize your automation system. The SCADA package that you choose must be able to

communicate with legacy hardware as well as the latest hardware, such as programmable

automation controllers (PACs). While OLE for process control (OPC) has become the de-

facto industry standard to communicate to automation devices, there are still many sensors

and instruments that require their own drivers. The ability to write your own drivers within

your SCADA environment becomes a key factor in your ability to use existing hardware with

new hardware.

In addition to OPC client functionality, Modbus is another popular industrial protocol that is

often used to access registers on RTUs and sensors. TCP/IP and UDP are some of the other

low-level protocols that you can use to communicate with different hardware. With a truly

open SCADA system, you can communicate with any existing hardware while adding the

newest hardware as your system progresses.

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Figure: Typical open architecture HMI/SCADA system connecting to both legacy and

the latest hardware.

2. What is the total cost incurred after SCADA system is deployed?

Most SCADA vendors charge based on the number of tags you use while developing your

SCADA system. A decent-sized application easily ends up using a few thousand tags. With

the SCADA vendors charging a premium for each tag used, you typically develop your

application with an eye toward the number of tags you have used up so far. If you do reach

the limit, you have to go through the painful process of getting another purchasing order

approved and devoting time toward all the overhead associated with it instead of

concentrating on developing your application.

Once the development is complete, even during the deployment phase, vendors charge by the

number of tags for their run-time systems, which can lead you to exceed your budget if you

do not plan properly in the beginning. To reduce costs, investigate packages that do not

charge by the number of tags but still deliver the performance requirements.

3. How flexible is the SCADA package when the customer wants to add advanced

analysis features?

While automation systems are designed to optimize by improving uptime and yield, SCADA

systems are often required to perform advanced analysis and be flexible to implement

features not typical of traditional SCADA systems. For instance, if you are acquiring

vibration data and want to perform fast Fourier transform to discern if your system vibration

is above the specified limits, you typically turn to separate analysis packages or, at best,

invoke a programming language such as Visual Basic or even C from within your SCADA

package.

If your SCADA package is flexible enough to double as a programming language to

implement custom features and perform advanced analysis functions, you greatly reduce the

development time and training costs associated with having to learn different packages to

meet your final system specifications.

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Figure: Specialized development environments such as National Instruments LabVIEW

provide the flexibility and integrated HMI and logic required by modern HMI/SCADA

systems.

4. Can the customer program both the controller logic and its HMI/SCADA

functionality in the same environment?

Many times you prefer to buy most of your hardware and software from a single vendor.

Except for the convenience of a single purchase order, you could buy equipment from

different vendors as long as the specifications meet your requirements. However, if you can

program both your control hardware logic and the SCADA in the same environment, you can

minimize your development time considerably. You can also save on training costs because

you do not have to be proficient in two different environments.

5. Which operating systems can the customer use to run the SCADA application?

All HMI/SCADA systems typically run on Windows XP and now Windows Vista operating

systems. However, with Windows CE and Windows XP Embedded gaining popularity

because of their relatively lower costs and smaller software footprints, touch panel

manufacturers have developed many touch panels to support these operating systems. A great

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option to keep the cost of the total system down is to use this low-cost software where

possible. To do this, you need to make sure that the SCADA system can run on different

operating systems. Linux and Macintosh OSs are not as popular in this field but should be

considered nevertheless.

3.2 MISCONCEPTIONS ABOUT THE SCADA SYSTEM

At the heart of the issue of SCADA system security are three major misconceptions that are

commonly held by utility managers. The report points to the misconceptions, listed on the

following page, as the major obstacles to the implementation of the best possible information

security strategies.

MISCONCEPTION #1 – “The SCADA system resides on a physically separate,

standalone network.”

Most SCADA systems were originally built before and often separate from other corporate

networks. As a result, IT managers typically operate on the assumption that these systems

cannot be accessed through corporate networks or from remote access points. Unfortunately,

this belief is usually fallacious.

In reality, SCADA networks and corporate IT systems are often bridged as a result of two

key changes in information management practices. First, the demand for remote access

computing has encouraged many utilities to establish connections to the SCADA system that

enable SCADA engineers to monitor and control the system from points on the corporate

network. Second, many utilities have added connections between corporate networks and

SCADA networks in order to allow corporate decision makers to obtain instant access to

critical data about the status of their operational systems. Often, these connections are

implemented without a full understanding of the corresponding security risks. In fact, the

security strategy for utility corporate network infrastructures rarely accounts for the fact that

access to these systems might allow unauthorized access and control of SCADA systems.

MISCONCEPTION #2 – “Connections between SCADA systems and other

corporate networks are protected by strong access controls.”

Many of the interconnections between corporate networks and SCADA systems require the

integration of systems with different communications standards. The result is often an

infrastructure that is engineered to move data successfully between two unique systems. Due

to the complexity of integrating disparate systems, network engineers often fail to address the

added burden of accounting for security risks. As a result, access controls designed to protect

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SCADA systems from unauthorized access through corporate networks are usually minimal,

which is largely attributable to the fact that network managers often overlook key access

points connecting these networks. Although the strategic use of internal firewalls and

intrusion detection systems (IDS), coupled with strong password policies, is highly

recommended, few utilities protect all entry points to the SCADA system in this manner.

MISCONCEPTION #3 – “SCADA systems require specialized knowledge, making

them difficult for network intruders to access and control.”

The above misconception assumes that all attackers of a SCADA system lack the ability to

access information about their design and implementation. These assumptions are

inappropriate given the changing nature of utility system vulnerabilities in an interconnected

environment. Due to the fact that utility companies represent a key component of one of the

nation’s critical infrastructures, these companies are likely targets of coordinated attacks by

“cyber-terrorists”, as opposed to disorganized “hackers.” Such attackers are highly motivated,

well-funded, and may very well have “insider” knowledge. Further, a well-equipped group of

adversaries focused on the goal of utility operations disruption is certain to use all available

means to gain a detailed understanding of SCADA systems and their potential vulnerabilities.

Furthering this risk is the increasing availability of information describing the operations of

SCADA systems. To support competition in product choices, several standards for the

interconnection of SCADA systems and remote terminal units (RTUs) have been published,

as have standards for communication between control centres, acceptance of alarms, issuance

of controls, and polling of data objects. Further, SCADA providers publish the design and

maintenance documents for their products and sell toolkits to help develop software that

implements the various standards used in SCADA environments.

Finally, the efforts of utility companies to make efficient use of SCADA system information

across their company has led to development of “open” standard SCADA systems. As a

result of this development, SCADA system security is often only as strong as the security of

the utility’s corporate network. While the RTUs on a network may be difficult to access

outside of the dedicated serial lines, it is only moderately difficult to penetrate the control

panel for the SCADA manager through the corporate network and quickly ‘learn’ commands

by watching actions that are carried out on the screen. Attacks on highly complex systems

become much easier when attackers first penetrate the workstations of SCADA operators.

3.3 TYPICAL REQUIREMENT OF A CUSTOMER

Page 19


3.3.1 GENERAL CONDITIONS AND MANUFACTURING FACILITIES

1. SCADA Vendor should have complete control over the design,

modification/alteration of basic structure of RCC Software and RTU such as CPU,

its programming, communication protocol, bus configuration, input/output

modules and analog modules. Detail circuitry of all such module should be

available with the vendor.

2. SCADA Vendor should have commissioned at least three complete SCADA

systems for reputed organisation like I.R., SEBs, NTPC, ONGC & other reputed

Pvt &PSU organisations.

3. SCADA Vendor should have adequate no. of service centres in India. Mention

number of service centres available in India.

4. SCADA Vendor should have adequate covered accommodation for the purpose of

effective storage of inward raw material, and the finished product awaiting

dispatch and prototype / routine inspection

5. SCADA Vendor should have a proper drawing office to support the designs/

development of product

6. SCADA Vendor should have a clean and pollution free environment, and is taking

adequate safety precautions during the production

7. SCADA Vendor should have items like fire extinguishers, safety warning board,

shock treatment charts and medical first aid kit in their premises.

8. SCADA Vendor should carry out regular employee training programs for regular

up-gradation of the knowledge and skills of the employees.

3.3.2 MANPOWER REQUIREMENT

1. SCADA Vendor should have dedicated group of professionals for SCADA

development and support especially software development personals.

2. Number of qualified engineers (B.Tech) degree holders employed

3. Whether they are associated for the last five to ten year continuously in the field

of SCADA. (Relevant Certificates to this extent are required to be submitted.)

4. SCADA Vendor should have adequate staff /man power to commission SCADA

system anywhere in India and have adequate service network/ centres in the

country.

5. SCADA Vendor should have adequate number of software and hardware

engineers conversant with SCADA system communication technique and

Page 20


knowledge of communication protocol preferably on IEC 870. Whether Supplier

have in house capability to write/develop/test communication protocols.

6. Whether software engineers employed with firm have adequate experience in

multiple platform programming like WINDOWS, .net, Linux, VB, VC++, ASP

etc.

3.3.3 QUALITY CONTROL REQUIREMENTS

1. SCADA Vendor should have acquired ISO-9000 certification for the product

broadly, for which approval is being sought

2. SCADA Vendor should have the system of easy tractability of the product from

the raw-material stage to the finished product stage to the finished product stage is

available

3. SCADA Vendor should have a system of monitoring the supplied product

complaints.

4. SCADA Vendor should have an effective quality control system to monitor

quality control.

Inward raw material

Stage inspection at various assembly stages such as PCB inspection before and

after soldering inspection, IC functionality check, Transducer testing, modem

functionality test etc.

Inspection of the final assembled product to confirm adherence to the

requirement / specification

Test equipment to test designed feature of SCADA system, MODEM and

simulators to simulate field signals, Current injection set, Variable and

stabilised ac voltage source, Variable PF source of adequate range.

3.3.4 QUALITY ASSUARANCE REQUIREMENTS

1. SCADA Vendor should have the Quality assurance plan for the product detailing

following aspect:

Organization chart.

Flow process chart.

Stage inspection details.

Various parameters to maintain the control over the manufacturing.

Page 21


2. The Quality manual of SCADA Vendor indicating the extent of control over

production and testing should be available.

3. A degree/diploma holder should be the head of the inspection / testing / final

control section with 5 years of experience in the relevant fields.

4. The System of documentation in respect of following should be available.

Rejection at the customer and its warranty replacement e.g. documentation of

problems reported from field, corrective action taken thereof,

monitoring/validation of the action taken.

Incoming raw material with the reference of suppliers as well as internal test.

Details regarding stage inspection and test results.

Details regarding the final testing and dispatch to the customer in proper

packed condition.

System for calibration of testing and measuring instruments.

3.4 SECURITY CONSIIDERATIONS

3.4.1 COMMON SECURITY VULNERABILITIES

As described in the previous section, corporate networks and SCADA systems are often

linked, which means that the security of the SCADA system is only as strong as the security

of the corporate network. With pressure from deregulation forcing the rapid adoption of open

access capabilities, vulnerabilities in corporate networks are increasing rapidly. The

following section outlines several common system vulnerabilities found on SCADA and

corporate networks that impact the relative security of SCADA systems:

Public Information Availability

Often, too much information about a utility company corporate network is easily

available through routine public queries. This information can be used to initiate a

more focused attack against the network. Examples of this vulnerability are listed

below:

Websites often provide data useful to network intruders about company

structure, employee names, e-mail addresses, and even corporate network

system names

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Domain name service (DNS) servers permit “zone transfers” providing IP

addresses, server names, and e-mail information.

Insecure Network Architecture

The network architecture design is critical in offering the appropriate amount of

segmentation between the Internet, the company’s corporate network, and the

SCADA network. Network architecture weaknesses can increase the risk that a

compromise from the Internet could ultimately result in compromise of the SCADA

system. Some common architectural weaknesses include the following:

Configuration of file transfer protocol (FTP), web, and e-mail servers

sometimes inadvertently and unnecessarily provides internal corporate

network access.

Network connections with corporate partners are not secured by firewall, IDS,

or virtual private network (VPN) systems consistent with other networks

Dial-up modem access is authorized unnecessarily and maintenance dial-ups

often fail to implement corporate dial access policies

Firewalls and other network access control mechanisms are not implemented

internally, leaving little to no separation between different network segments

Lack of Real-Time Monitoring

Vast amounts of data from network security devices overwhelm utility

information security resources rendering monitoring attempts futile

Even when intrusion detection systems are implemented, network security

staff can only recognize individual attacks, as opposed to organized patterns of

attacks over time

3.4.2 ELECTRONIC SECURITY

3.4.2.1 ATTACKS

Attacks on electronic systems have become a reality for many companies and electric

utilities implementing SCADA are no exception. This section discusses the types of

attacks typically seen and the defence tools used to ward off these attacks. This survey

is not focused on the electric utility industry (4% of respondents were from utilities),

it does provide a baseline for the types of attacks perpetrated and damage done by

unauthorized users in almost all the SCADA implementation. According to the

survey, approximately 56% of respondents reported unauthorized computer use in the

Page 23


past 12 months, slightly less than the numbers reported in the previous 4 years. Figure

shows the data gathered from the survey.

Yes No Don't know0

20

40

60

80

100

120

Did you find any unauthorized use of computer system re-lated to SCADA within the last 12 months?

The downward trend in reported attacks may be somewhat misleading. The report

also shows an increasing trend toward not reporting unauthorized use of computer

systems. Respondents cited fear of negative publicity or exploitation by competitors

as primary reasons for not reporting. Figure shows the actions taken by respondents

when they were attacked.

Patched holes

Did not report

Reported to Law enforcement

Reported to Legal Counsel

0 10 20 30 40 50 60 70 80 90 100

If Yes, then what actions did you take?

Although documented evidence of attacks on utility systems is sparse, the threat is

real. According to security firm Riptech (now owned by Symantec), 70% of their

electric utility clients experienced at least one major attack in the first half of 2009,

Page 24


compared with 57% in the last half of 2008. Riptech also reports that when they try to

penetrate a utility’s network, they are successful 95% of the time.

Types of attacks and/or misuse include viruses, laptop theft, net abuse, system

penetration, denial of service, and others. Figure shows types of attacks/misuse and

their trends during the past four years. Viruses are the most common type of attack.

One can also see from this figure that several attack types show an increasing trend,

including system penetration and denial of service. These two attack types, in addition

to viruses, typically use the internet as a source of attack. Indeed, the survey found an

increasing trend toward internet-based attacks compared to inside attacks or remote

dial-in.

Virus

Net abuse

Denial of Service

System Penetration

Unauthorized access

Sabotage

0 5 10 15 20 25 30 35 40 45

Which among the following are the most commonly used type of cyber attack on SCADA system?

Internet68%

Internal Systems20%

Remote dial-in12%

What was the communication medium used for the attacks on the SCADA system?

Page 25


Regarding types of attackers, survey respondents, as shown in Figure, pointed to

independent hackers and disgruntled employees as the most common. Domestic

competitors, foreign corporations, and foreign governments were also significant

sources of attack. Since many attackers are not caught, it is not clear whether this data

is based only on those who are caught or whether these numbers are base on

conjecture by the respondents.

Foreign/Domestic Competitors

Disgruntled Employees

Independent Hackers

0 10 20 30 40 50 60 70 80 90 100

Who basically are involved in the attacks on the SCADA system?

3.4.2.2 ATTACK TOOLS

An attacker need not be an accomplished programmer to penetrate a network or

computer system. Several tools are available to either gain access to or learn more

about a system targeted for attack. This section gives a brief description and some

examples of several types of tools of this nature.

Password Crackers

The term password cracker is basically self explanatory. The intent of this software is

to try multiple login attempts, typically using one of two methods, dictionary or brute

force. Dictionary attack tools use common words or phrases that often appear in

passwords. Brute force attack tools simply try every possible character combination

that could be entered as a password. Brute force attacks can obviously take longer but

also have the ability to crack more passwords. A bevy of password cracking programs

is available free on the internet. Lophtcrack is a commercially available program that

costs about $250 and is capable of performing brute force and dictionary attacks.

War Dialers

War dialers use a single modem or a bank of modems to dial a range of numbers to

determine whether a particular phone line has a modem connected to it. If this is the

case, the attacker can then attempt to gain access to this modem using a password

Page 26


cracker or other tool. Like password crackers, war dialers can also be downloaded

from the internet. Examples include ToneLoc and THC-Scan. PhoneSweep is a

commercially available program that can differentiate between modems and faxes.

Cost for this program is approximately $1,000.

Ping Sweep and Port Scan Programs

Ping sweep and port scan programs work on TCP or UDP networks. Ping sweep

programs work similarly to war dialers, except instead of dialing phone numbers they

ping ranges of IP addresses to determine which ones are used. Port scan programs can

then be used to determine which ports are being used. Nmap is an example of a tool

that can do ping sweeps and port scans. It is freely available on the internet and works

on Windows-based machines. Ethereal is a UNIX/LINUX version that is also freely

available.

Packet Sniffers and Protocol Analyzers

Packet sniffers intercept data being transmitted between computers in a TCP/IP

network. This requires that the packet sniffer be in the path between sender and

receiver. Protocol analyzers take raw packet data and attempt to determine the

protocol used and the information being transmitted by each packet. Like other tools,

many products are available freely from the internet. Ethereal, mentioned in the

previous section, also performs sniffing and protocol analysis.

Denial of Service Tools

Denial of service (DOS) attack tools work by flooding a network with either

legitimate or malformed packets of data, thereby effectively locking out legitimate

traffic. Some tools come with several malformed packet types known to cause certain

systems to crash. Examples of these tools are smurf, fraggle, and SYNflood.

SYNflood sends connection requests (SYN packets) to the intended target, but never

acknowledges the connection so that many ports are left open on the target

machine(s).

3.4.2.3 ATTACK SCENARIOS

Page 27


As shown in the previous section, there are several ways to gain access to a networked

system. Once a system has been penetrated, an attacker has several options to choose

from if his or her target is an electric utility.

He or she could:

1. Take direct control of devices in substations and/or generation plants,

shutting these facilities down.

2. Plant malicious code or a “logic bomb” that executes on a given event or at

a preselected time to disrupt the system.

3. Plant code that opens a “back door” to allow easy access in the future.

4. Change data such as billing information to disrupt financial operations.

5. Perform a “man in the middle” attack to intercept and change data to

deceive system operators into thinking the system is in a condition that it is not

(e.g., circuit overload). The operators may therefore take unnecessary or

damaging action to mitigate this condition.

6. Change protective device settings to make a protective relay trip when it

shouldn’t, not trip when it should, or both, thus taking the system out of

service and/or causing damage to equipment.

7. Take resources hostage for other purposes (e.g., game hosting), degrading

performance of the system for the tasks it was designed to do.

Of course, system penetration is not necessarily even required. An attacker could

initiate a denial of service (DOS) or distributed denial of service (DDOS) attack that

basically ties up all network resources and prevents legitimate traffic from getting

through a network.

3.4.2.4 DEFENCE TOOLS

Several tools are also available to defend systems. These tools include passwords,

firewalls, intrusion detection systems, virtual private networks, and access control.

The following sections provide a brief description of each of these tools.

Passwords

Passwords can be an effective security method. Two factors that influence their

effectiveness are whether the passwords are strong passwords and whether they

are encrypted. Strong passwords are defined as passwords of six characters or

more, with at least one special character or digit and mixed-case character, that do

not form a pronounceable word, name, date, or acronym.Table shows a

Page 28


comparison of the time it takes a password cracking program to crack passwords

of different lengths for strong passwords (require brute-force cracking) and for

dictionary passwords. Dictionary passwords in this case are based on the 25,143-

word UNIX spell-check dictionary that contains words, numbers, common names,

and acronyms. Strong passwords are based on a 90-character set of letters,

numbers, and special characters.

Table: Comparison of times to crack dictionary vs. strong passwords

As one can see from the table, strong passwords, especially those of six characters or

longer, are almost impossible to crack using brute force methods. Of course, if a

potential intruder can sniff a network and see the password in clear text, the strongest

password is no better than a weak password. It is therefore important that passwords

not be transmitted in clear text. Several tools are available for password encryption for

workstations and servers. Intelligent devices in substations, on the other hand, often

do not support a full character set for passwords, nor do they support password

encryption.

Firewalls

A firewall serves as a barrier to traffic crossing the boundary of a network.

Firewalls allow only packets satisfying predetermined rules to get from outside a

network to the inside or vice versa. Firewalls can be either stand-alone devices or

software running on a computer. They are often set up with a buffer zone, or

DMZ, between the protected network and the outside world. The DMZ allows

web servers, for instance, to provide information to outside customers without

having to get through the firewall. Standalone firewalls are manufactured by

companies like Cisco Systems and Nokia. A simple software firewall called

TinyFirewall is available to run on Microsoft Windows-based machines.

Page 29


Intrusion Detection Systems

Intrusion detection systems (IDS) are used to detect unauthorized use of a

computer network. They can be set up to detect internal abusers, external abusers,

or both. Intrusion detection systems fall into one of two categories: signature

detection systems or anomaly detection systems. Signature detection systems

match packets with known intrusion characteristics and, based on sensitivity

settings, determine whether an attack is occurring. Anomaly detection compares

system behavior with a profile of past behavior to determine whether an intrusion

is taking place. Both system types require care in setting sensitivity as well as

monitoring of event logs.

Virtual Private Networks

Virtual private networks (VPNs) tunnel through open IP-based networks by

encrypting data to provide a secure connection. VPNs can encrypt just the data

packet payload or the whole packet, including the source and destination address.

In the latter case, a new packet header with a new IP address is added. VPN

devices in this case are matched so that each has a compatible address. Once a

packet is received by a VPN device, the packet is decrypted and, if the entire

packet was encrypted, the dummy address is stripped off. The packet is then

routed to its proper destination. VPNs typically use the tripledata encryption

standard (3DES or triple DES) with 128- to 168-bit encryption. Vendors of these

systems include Cisco Systems, Netgear, and Nokia.

Access Control

Access control can include the control of physical access to computer systems. It

can also refer to electronic access. For electronic access, control measures are

identified as one, two, or three factor authentication. The three factors are:

o Something you have (e.g., ID card)

o Something you know (e.g., password)

o Something you are (e.g., fingerprint)

Obviously the most secure authentication and access control would incorporate all

three, but this is seldom the case in actual systems. Two-factor authentication is

sometimes used, but single-factor authentication is still commonplace for many

systems. RSA security is a leader in two-factor authentication systems. According

Page 30


to the RSA website (http://www.rsasecurity.com/), their SecurID cards are the

most popular two-factor identification systems in the world.

Biometrics is the term typically used to describe the third factor. Several methods

of using biometrics to verify identity are available. Factors checked by various

systems include fingerprints, retinas, iris, face patterns, hand geometry, signature,

or voice recognition. Although costs for these devices are decreasing, they do not

appear to be used widely. Perhaps one of the reasons is that at least some of them

are quite easy to spoof. According to a recent PC Magazine article, fingerprint

scanners could be spoofed by simply breathing on the sensor, making the last

fingerprint reappear. Some face recognition sensors could be spoofed by a still

photo. Iris sensors could similarly be fooled by placing a photograph of a person’s

eye on someone else’s face.14 Newer products are addressing some of these

problems but it appears for the most part that biometric devices are not quite ready

for prime time.

3.4.2.5 USAGE OF DEFENCE TOOLS

Respondents to the survey report use several tools to defend against attacks (see

Figure). Most common among these are anti-virus software, firewalls, access control,

and physical security. Intrusion detection is also becoming a more commonly used

tool, as well as encrypted files. Most of the technologies in Figure in the previous

section are fairly self explanatory.

Biometrics

Digital IDs

Encrypted Login

Intrusion detection

Physical Security

Access Control

Firewalls

Antivirus Software

0 5 10 15 20 25 30 35 40 45 50

What are the most commonly used security technolo-gies implemented for protecting SCADA environment?

Page 31


Information specific to electric utilities in comparison indicates that perhaps this

industry is falling behind.

According to the Newton-Evans report, use of defence tools among utilities lags well

behind industry in general. Figure shows that most respondents use passwords as a

primary means of protection. Only two-thirds of respondents use virus protection as

compared to 99% in the survey.

Less than half of the respondents use any measure other than these to defend against

attacks.

A trend that exacerbates the problem for utilities is the increasing use of the internet

for applications. Figure shows current and planned implementation of applications

using internet technology. Notice that in every application category there is planned

expansion in the use of the internet.

Of the respondents, nearly 40% either currently use the internet for supervisory

control (17%) or plan to do so (21%).

Figure: Current/future implementation of functions using internet technology

As mentioned previously, NERC has been involved with the security of electric utility

systems. Its Urgent Action Standard 1200, which was issued in August 2003, is an

attempt to standardize and enforce compliance with cyber-security principles. The

standard mandates that every entity involved with the generation, transmission, or

distribution of electric power must perform several steps, including:

1. Identify its critical cyber assets.

2. Identify its physical and electronic perimeters.

Page 32


3. Implement physical and electronic access controls.

4. Monitor physical and electronic access.

5. Identify response actions for physical and electronic incidents.

6. Identify recovery plans in the case of an attack.

3.4.3 PHYSICAL SECURITY

Physical security at electric power substations and generation facilities varies from

installation to installation depending on level of risk, level of impact, and cost of

implementation. Cost is a particularly important factor as a result of the competitive pressures

brought on by deregulation. IEEE Std. 1402-2000, “IEEE Guide for Electric Power

Substation Physical and Electronic Security,” is available as a resource for planning and

implementing security measures. The main categories of physical security at electric power

substations are physical barriers and electronic barriers. Examples of physical barriers include

fences, walls, and locks. Examples of electronic barriers include photo-electric/motion

sensing, video surveillance systems, building systems, computer security systems, passwords,

dial-back verification, selective access, virus scans, encryption, and encoding. Examples of

other types of security measures are lighting, landscaping, buildings, patrols,

communications, and internal and external information restrictions.

Table identifies three sample electric power utilities and their implementation of IEEE Std.

1402-2000. The three utilities are a hydro-electric utility, a utility performing transmission,

distribution, and generation, and a utility performing transmission and distribution only.

Page 33


Table: Three sample electric power utilities and implementation of IEEE Std. 1402-2000

Effectiveness of Security Methods

A security survey was performed and documented in IEEE Std. 1402-2000. The survey

results, shown in Table, provide an indication of the effectiveness of security methods used

by respondents in an urban substation. One general observation is that lights, signs, and

special locks are the most common security methods employed. Although generally effective

according to the majority of the respondents, these methods were not found to be completely

effective and can be defeated. Some of the methods used least often (alarms systems, motion

detectors, and electronic protection) were reported to be completely effective. The

respondents were from various utilities.

Table: Results of security survey on effectiveness of security methods

Page 34


3.5 GOVERNMENT POLICIES

3.5.1 POWER GENERATION IN INDIA

Cost of Generation of Power in India

(2008-2009)

Contents

Net Total Cost of

Generation Cost of Generation

(Million Unit) Generation Unit

(Rs. in Lakh) (Paise/kWh)

Hydro Stations 89739.16 612376.97 68.24

Thermal Stations 419344.84 8040393.86 191.74

Nuclear Generation 18659 330219 176.98

17%

79%

4%

Net Generation of Power in IndiaHydro Stations Thermal Stations Nuclear Generation

The entire power requirement in India is basically met by the following three methods:

Hydro Stations

Thermal Stations

Nuclear Generation

From the pie chart we can clearly conclude that the major portion of the requirement of the

power is met using the Thermal generation technique.

Page 35


Subsequently the total cost of production for the Thermal power generation is the maximum

followed by Hydro stations and the Nuclear generation in the end. One of the reasons for the

low contribution of the Nuclear sector is that it is relatively a new domain and currently the

production is only under the control of the Central Government.

7%

90%

4%

Total Cost of GenerationHydro Stations Thermal Stations Nuclear Generation

Per Unit cost for Thermal power generation is maximum closely followed by Nuclear power.

Whereas the per unit cost of Hydro power generation is the least. But however due to the lack

of proper projects on the river beds across India, there is a lot of emphasis on the production

of electricity using the Thermal stations even though it is very costly. In the Eleventh Five

year plan the Government of India has given a lot of emphasis on the Hydro electric power

stations.

16%

44%

41%

Unit Cost of GenerationHydro Stations Thermal Stations Nuclear Generation

Page 36


3.5.2 POWER CAPACITY ADDITIONS – NEW PROJECTS

Power Capacity Addition Targets in India

(11th Plan)

(Figure. in MW)

Particulars Central State Private Total

Thermal 12790 6676 5951 25417

Hydro 8742 4481 1170 14393

Nuclear 1300 0 0 1300

Total 22832 11157 7121 41110

Central State Private0

2000

4000

6000

8000

10000

12000

14000

Power Capacity addition - New Projects

ThermalHydroNuclear

In the Eleventh Five year plan (2007-2012) the Government of India plans to clearly increase

the capacity of all the three Power generation sectors i.e. Thermal, Hydro and Nuclear in

order to satisfy the ever increasing requirement of the Urban and the Rural India. This clearly

indicates that there will be an increase in the number of projects to meet the requirement

which will provide a clear opportunity for the SCADA implementation as these projects will

involve a lot of automation.

Page 37


Number, Capacity and Amount Spent on Grid-Connected Renewable Power Projects Installed in India

(As on 31.03.2008)

Type of Project

Total Total Total Govt.Capacit

y No. of Estimated Subsidy$

(MW) Projects Investment* (Rs. in Crore)

(No.) (Rs. in Crore) Wind Power 8757 13 35000 145

Small Hydro Power 2181 618 11000 400

Biomass Power/Cogeneration 1407 181 5500 74

U&I Waste to Power 56 17 360 59

Solar Power 2 33 50 35

Total 12403 13511 51910 713

Wind power and Hydro electric power stations are the two most cheap way of producing

energy to satisfy the requirement of the Urban and Rural masses across India. Therefore the

Government of India has given the maximum subsidies to the projects in these sectors to

encourage energy production.

0 50 100 150 200 250 300 350 400 450

Government Subsidies in the individual sectors

Solar PowerU&I Waste to PowerBiomass Power/CogenerationSmall Hydro PowerWind Power

Page 38


71%

18%

11%

0% 0%

Total Capacity of individual sectors in IndiaWind Power Small Hydro Power Biomass Power/CogenerationU&I Waste to Power Solar Power

Due to the limited infrastructure across the river beds in India the total capacity production of

Hydro power stations is not adequate to meet the requirements of the Indian population.

There exists a great potential in the Wind power stations for generating energy and meet the

requirements.

2%

72%

21%

2%4%

Total number of projects in IndiaWind Power Small Hydro Power Biomass Power/CogenerationU&I Waste to Power Solar Power

Page 39


The subsidies provided by the Government of India encourage the projects in the Wind power

sector. However being a relatively new sector there are fewer projects in this domain but it is

slowly increasing.

India has been heavily relying on the Small hydro power stations for satisfying the energy

requirement and hence the total number of projects is maximum in this particular sector.

India has also started concentrating on the generation of energy using Biomass and Urban

waste as it is one of the cheapest ways and is environmental friendly.

3.5.3 SECTORWISE POWER GENERATION

Sector/Category-wise Targets Fixed for Electricity Generation in India

(2007-2008 to 2009-2010)

(Figures in Million Unit)

Category/ Sector 2007-08 2008-09 2009-10

Thermal

Central Sector 237449 260824 261148

State Sector 277604 304764 303192

Pvt. Sector 57141 65682 84139

Total 572194 631270 648479

Hydro

Central Sector 39790 42912 43239

State Sector 64299 70221 67123

Pvt. Sector 5361 5317 5106

Total 109450 118450 115468

Nuclear

Central Sector 22713 19000 19000

All India

Central Sector 299952 322736 323387

State Sector 341903 374985 370315

Pvt. Sector 62502 70999 89245

Bhutan Import 5643 5624 6564

Total 710000 774344 789511

The increase in the participation of the private sector over the years for the production of

energy provides an opportunity for HCL to provide infrastructure support as well as to

implement SCADA for the automation related processes in the project and provide an end to

end support. HCL has a tremendous potential to tap the Thermal and the Hydro projects

across India and thus give a boost to its SCADA domain.

3.5.3.1 THERMAL

Page 40


2007-08 2008-09 2009-100

50000

100000

150000

200000

250000

300000

350000

Thermal Power for Electricity Generation

Central Sector State SectorPvt. Sector

3.5.3.2 HYDRO

2007-08 2008-09 2009-100

10000

20000

30000

40000

50000

60000

70000

80000

Hydro Electric Power Generation

Central Sector State SectorPvt. Sector

5.3.3 NUCLEAR

However Nuclear sector being a relatively new and a niche domain is solely under the

control of the Central Government. All the projects of Nuclear energy production is

managed by the Central Government and HCL does not have an opportunity in this

particular domain. The production of energy has gone down tremendously for 2007-

08 to 2009-10 due to the restrictions introduced for the nuclear energy production by

the Indo-US nuclear deal.

Page 41


2007-08 2008-09 2009-1017000

18000

19000

20000

21000

22000

23000

Nuclear Power for Electricity Generation

Central Sector

3.5.4 PRODUCTION OF NATURAL GAS AND CRUDE OIL

Projected Production of Crude Oil and Natural Gas in India

(2007 to 2012)

Company 2007-082008-

092003-

10 2010-112011-

12 Total

Production of Crude Oil (MMT)

ONGC 27.16 28 29 28.53 27.37 140.06

OIL 3.5 3.55 3.73 3.91 4.3 18.99

Joint Venture/ Private Companies 10.57 10.78 9.76 8.75 7.85 47.71

Total 41.23 42.33 42.49 41.19 39.52 206.76

Actual Production 34.12

Production of Natural Gas

ONGC 60.55 61.73 62.38 62.99 60.27 112.39

OIL 8.58 8.79 8.9 8.99 9.75 16.43

Joint Venture/ Private Companies 23.42 61.78 80.58 78.82 103.2 126.45

Total 92.55 132.3 151.86 150.79 173.23 255.27

Actual Production 88.42

There are basically three major players involved in the production of the Natural Gas and Crude Oil as

a Secondary source of Commercial energy provider. These players are:

ONGC

OIL

Joint Ventures/ Private Companies

Page 42


2007-08 2008-09 2003-10 2010-11 2011-120

5

10

15

20

25

30

35

Production of Crude Oil

ONGCOILJoint Venture/ Private Companies

The overall production projects of Crude Oil are basically under the Central Government

organizations ONGC and OIL. However there are around 25 % of projects under the private

sector which again throws up an opportunity for HCL to provide infrastructure support and

implement SCADA in its automation processes.

2007-08 2008-09 2003-10 2010-11 2011-120

20

40

60

80

100

120

140

Production of Natural Gas

ONGCOILJoint Venture/ Private Companies

Whereas in the production of the Natural Gas around 50% of the total projects are under the

private sector thus opening up another opportunity for HCLs SCADA implementation.

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3.5.5 GOVERNMENT POLICIES TOWARDS ENERGY PRODUCTION SECTOR

3.5.5.1 Water Management Policy

Sr. No

PROJECT ALLOCATION

1. Flood management programme Rs. 8500 crore2. Development of Water Resources Information System Rs.230 crore3. Hydrology project Rs.180 crore4. Ground water management and regulation Rs. 515 crore5. Flood Forecasting Rs.150 crore6. Infrastructure development Rs.125 crore

Total Rs.9700 crores

Flood management programme:

This centrally sponsored scheme includes the continuing schemes related to Flood

Management Works in Ganga Basin/Brahamaputra & Barak Basin and improvement

of drainage in Brahamaputra, flood management and anti erosion works being

executed by Brahamputra Board, feasibility studies of channelization of Brahamputra

etc. This scheme will also include activities to be taken up in all the other basins

throughout the country such as Flood proofing programme, critical flood control and

anti erosion works including sea erosion, improvement in drainage in critical areas,

inundation modeling of flood disaster preparedness, Grant-in-Aid to Brahamputra

Board and Ganga Flood Control Commission, Strengthening of Flood Management

Organisation, CWC, setting up of National Flood Management Commission, share

cost for flood component in multi-purpose water resources development projects etc.

A provision of Rs. 8500 crore has been kept for this scheme under Central sector in

XI Plan. Out of this Rs.7000 crore is for the Centrally Sponsored Programme and

Rs.1500 crore is meant for the Central Sector Schemes of GFCC, Brahamputra

Board and CWC.

Development of Water Resources Information System:

Planning of water resources development and management improves with the

availability of data. Water resources projects were planned and executed even when

long term rainfall or runoff data was not available. With the availability of modern

computing technology, the State of the Art of technologies such as GPS, GIS, Remote

Sensing, Telemetry, RDBMS, MIS, DSS, Expert Systems, SCADA etc. it is possible

to further improve the planning and operation of the projects. But this requires

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substantial amount of spatial and time series data on all aspects including water

quality data, data related to snow hydrology, sedimentation, river morphology, minor

irrigation etc. As emphasized in the National Water Policy, a standardized National

Information System should be established with a network of data banks and

databases, integrating and strengthening the existing central and State level agencies

and improving the quality of data and the processing capabilities. Often there is a

considerable time lag between the developmental activities and reporting of physical

and financial progress. It is considered essential to have “On-line monitoring system”

for having up to date information of physical and financial progress of ongoing

projects in different states. This can be achieved by strengthening the present

monitoring mechanism, introduction of remote sensing technique in the monitoring

system and providing Central Assistance to projects for time bound communication of

monitoring related information. It is in this background all the activities of data

collection including monitoring have been merged under this Central sector scheme of

“Development Water Resources Information System” and a provision of Rs.230 crore

has been kept under Central sector in XI Plan for this scheme.

Hydrology project:

The system being established under Hydrology Project need to be developed as

operational Management System rather than creation of the hydrological system

alone. The project component should include decision support system (DSS) – real

time, operational management system, etc. involving hardware, software and

appropriate training need to be established in all the States including the States in

Ganga and Brahmaputra River Systems. The scheme of “Hydrology Project” is

proposed to cover all activities identified under World Bank Assistance for the project

and will include the continuing schemes of the hydrology related to MoWR, CWC,

CGWB, CWPRS and NIH. A provision of Rs.180 crore has been kept for this scheme

under Central sector in XI Plan.

Ground water management and regulation:

The scheme will cover all activities related to ground water management studies with

an objective to evolve sustainable strategies including exploration, investigations,

artificial recharge to ground water, conjunctive use of surface and ground water

resources, geogenic contamination etc. The scheme will include existing scheme of

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Ground Water Survey, Exploration & Investigations, Artificial Recharge of ground

water and Central Ground Water

Authority. A provision of Rs. 515 crore has been kept for this scheme under Central

sector in XI Plan

Flood Forecasting:

The scheme will include the activities of collection of Hydro-meteorological data and

issue of Flood Forecasts in India and will include the continuing scheme related to

Strengthening & Modernization of FF & HO network in Brahamaputra & Barak basin

and Establishment and Modernization of flood forecasting network in India including

inflow forecasts.A provision of Rs.150 crore has been kept for this scheme under

Central sector in XI Plan.

Infrastructure development:

This scheme will include the activities related to lands & building and IT

Development and will include the continuing schemes related to Land and Buildings

of CWC, Lands and Buildings of GFCC, Lands and building of CGWB, IT

Development of MoWR, Upgradation and Modernisation of Computerisation and

Information system of CWC etc. A provision of Rs.125 crore has been kept for this

scheme under Central sector in XI Plan.

3.5.5.2 Power Management Policy

Sr. No.

PROJECT ALLOCATION

1. Development of sensor systems for online fuel calorific value & unburnt carbon in ash measurement Rs.3 crores

2. Steam Generator condition assessment model through neutron activation techniques

Rs.20 crores

3. Development of desalination technology with LP exhaust steam/Solar heat source

Rs.16 crores

4. Advanced RLA methodologies Rs.25 crores5. Application of GIS / GPS in river inflow / discharge

measurements, flood forecasting, etc.Rs.1.5 crores

6. Soft rock tunnelling Rs.1.5 crores7. Testing and simulation laboratory for SCADA

(Complying with IEEE 61850) & demonstration projects

Rs.7.5 crores

8. SCADA implementation in 27 cities Rs.1000 crores9. Wide area measurements for grid

protection & controlRs.10 crores

Total Rs.1084.5 crores

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Steam Generator Condition Assessment Model Through Neutron Activation

Techniques

The objective of the proposal is to development of a comprehensive Boiler Condition

& Performance Assessment. Boiler Condition assessment shall be done through a

combinatorial program of Neutron Activation Technique, Electro-Mechanical

Acoustic Transducer, and Fibre Optic embedded Raman Scattering Technique. The

entire proposal is to be executed in an integrated manner. The nature of the project is

such that the elements mentioned below are neither modular nor discrete; rather they

are intrinsically intermingled and interdependent and hence cannot be taken up in a

serial manner. Though interdependent, the main elements of technology development

in the project shall be following:

It would involve complete, identify the required competence areas and potential

collaborating institutes for each of the following technologies and initiation of its

execution:

i. Neutron Activated Tomography for scanning of Boiler Tube Thickness.

ii. Electro-Mechanical Acoustic Transducer based scanning of Boiler Tube

Thickness.

iii. Fibre Optic embedded Raman Scattering Technique or any other alternate

technology for scanning of Boiler Tube Metal Temperature.

iv. Neutron Activation based combustion visualization technology.

Technologies are available for boiler condition assessment. However the major issue

involved is to make it suitable & approachable, when it comes to real life situation in

a boiler. The main deliverable for the project is to demonstrate these technologies in

an integrated manner for true assessment of boiler condition.

Advanced RLA methodologies (Robotic corrosion mapping, phased array

technology, remote eddy current, temper embrittlement and electro magnetic

acoustic transducers)

Robotic based Corrosion mapping system for water wall tubes through Magnetic

Inductance Bridge based robotic system. The water wall tubes in the primary pass of

thermal power plant boiler are subjected to severe corrosion problems especially in

the burner zones leading to loss in thickness. The wall thickness of each tube needs to

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be monitored during annual shutdown periods for ascertaining their suitability for

continued service and schedule for replacement if necessary. In view of the short shut

down periods, it is not possible to measure the thickness of all tubes using

conventional ultrasonic technique. In a robotic based system, the probe/magnetizing

coil is supported on robotic device which can crawl along the whole length of the

water wall tubes and maps the corrosion thickness. The high temperature boiler tube

during service forms coherent oxide layer on the outer surface due to oxidation. The

presence of this oxide layer on the outside of tubes interferes with ultrasonic wall

thickness measurement and prevents proper sound coupling during conventional UT

technique. The application of EMAT probes permits enables direct measurement

without any surface cleaning of the boiler. When coupled with a robotic device, large

number of tubes and different elevations can be covered in a short shut down period.

Phased array technique is a specialized type of testing that utilizes multi element array

transducers and software controls for steering the ultrasonic beam. In view of

complexity in shape & geometry of component of turbine components such as blades,

rotor steeple and disk rim attachments, the conventional techniques suffer by

reliability, accuracy & reproducibility. The advanced linear phased array ultrasonic

technology wherein multiple UT probes mounted in a single holder is used to for this

purpose and reported that the reliable and redundant results can be obtained in respect

of defect detection, sizing and shape. HP / IP rotors suffer in-service degradation from

rotor material temper embrittlement. The rotor material fracture toughness, which

governs the size of the critical flaw for fracture, is hence adversely affected. A reliable

assessment of the fracture toughness properties of steam turbine rotor requires

sampling of material from inservice rotor. A miniature sample removal and small

punch testing technique for direct estimation of fracture toughness provides a rational

basis for reduction of conservatism during RLA of rotor. The remote eddy

current/CCTV system is capable of examining the trailing and attachment areas of L-0

and L-1 turbine blades without turbine disassembly. Eddy current tests have also been

successfully used to detect cracks in the area of the satellite wear strips on the leading

edge of last stage blades and for inspection of turbine casing bolt and bolt holes.

Critical turbine components must be evaluated to assure safe operation during their

lifetime. The adoption of advanced RLA methodologies leads to the emergence of

sophisticated practice in RLA with reliable and upgraded assessment technologies in

the short time available during periodic maintenance, application of Robotics,

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improved deterministic routes and evolution of technology options. The project

envisages development of state-of-art technology in the area and adopts them in a few

thermal power stations. The project will support a number of spin off research in the

related area.

Combustion modelling and technologies for utilization of fly ash unburnt carbon

in pressurized fluidized bed gasifier

The objective of the project is to demonstrate pressurized fluidized bed char

combustor in a pilot scale facility & to explore other ways of separating char from fly

ash of pressurized fluidized bed gasifier. Pressurized fluidized bed gasifier operating

in a bubbling mode normally gives lower carbon conversion efficiency in the range of

90-91% only. The attributing factors are particle attrition & elutriation from the bed.

Freeboard reaction is normally limited due to dearth of oxidant resulting in 15%

combustibles in fly ash. The fly ash recycling is another option to reduce the overall

combustible in ash. For high ash Indian coal, large amount of ash recycling is always

a big threat in a pressurized system. Another option is to separate char from fly ash &

utilize the char in a separate furnace. Various separation methodologies are still in

developmental stage only. Tribo-electrostatic separation & dry fluidization separation

are among few technologies, which have been tried so far. However research work

needs to be carried for demonstration of such technologies for Indian coal. The third

option is to put the fly ash in a pressurized fluidized bed combustor to produce steam

& the hot gases i.e. a mixture of nitrogen & carbon dioxide at around 1000C can be

reintroduced back to main gasifier. The heat carried over with the flue gas will sustain

the endothermic reaction & carbon dioxide can be used as a gasifying agent in the

gasification process. The project would have deliverables in three stages. Modelling

of the char combustor with actual fly ash constituent as an input would be the first

deliverable. Next would be a development of a bench scale pressurized char

combustor & final will be its integration with main gasifier. The cost of the project

has been estimated as 19 crores & project is expected to be completed in six years.

AC/ DC Microgrid Demonstration Project By Deploying Various Distributed

Energy Sources, Energy Storage Systems, Communication Systems, AMR, DVR,

STATCOM, HVDC Light

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Distributed power generation system is emerging as a complementary infrastructure to

the traditional central power plants. This infrastructure is constructed on the basis of

decentralized generation of electricity close to consumption sites using Distributed

Generation (DG) sources. The increase in DG penetration depth and the presence of

multiple DG units in electrical proximity to one another have brought about the

concept of the micro-grid. A micro-grid is a portion of a power system which includes

one or more DG units capable of operating either in parallel with or independent from

a large utility grid, while providing continuous power to multiple loads and endusers.

The idea supporting the formulation of the micro-grid is that a paradigm consisting of

multiple generators and aggregated loads is far more reliable and economical than a

single generator serving a single load. India being geographically diverse country with

habitation spread over all kind terrains such as, hilly inaccessible areas, desert lands,

small islands etc, providing reliable power at affordable price is a challenging task. At

the same time, India is endowed with different kinds of renewable sources like solar,

hydro, bio-mass etc. Micro grid system encompassing locally available one or more

resources for power generation could offer possible solution to the challenges of a

nation to provide energy to the remote locations. The demonstration micro-grid

project would also include energy storage systems to supply power to critical loads

and also for emergency system start-up power. These projects incorporating concepts

of microgrid would include suitable communication system required for AMR.

Research on AMR technology is needed to optimize cost of overall distribution

system.

The advantages of VSC based HVDC system can be best utilized for applications

like:

Deep river crossings

Power supply to isolated loads (supply to distant town, mine, island or even

production platform in the sea needing power from main land),

Feeding Power from small isolated generation (wind, small hydro, tidal solar

etc.) to a grid or to a separate load without affecting power quality of receiving

network.

The implementation of technology developed in the area of power distribution is also

envisaged. Here, power electronics devices such as DVR, STATCOM etc. based on

VSC based converters would be developed. These would be included in the feeders to

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improve power quality. These demonstration systems would have suitable AMR

system to monitor energy supplied to customers. The deliverables from the project

would result in demonstration of high quality power distribution systems. The

selection and development of suitable power electronics devices and a field show

casing as stated above forms an integral part of the project.

The project would pave the way for design of future rural energy network, where

distributed generation sources are likely to be deployed and would act as a

benchmark.

3.5.5.3 Petroleum Management Policy

Sr No. PROJECTS ALLOCATION1. Coal Liquefaction Project by OIL Rs.250 Crore

XI Plan Break Up Rs Crore

Upstream 159,161

Refining 81,545

Gas 13,079

Marketing 6,080

Crude Pipelines/Crude Oil Terminal

4,230

R&D (including in upstream) 1,418

Others including RGIPT 3,536

TOTAL 269,049

The above investments are based on the information received from various companies and

does not include investment in the oil and gas sector by the private sector. However, these

investments may undergo some change at the time of finalisation of the Annual Five Year

Plans.

3.6 SWOT ANALYSIS

SWOT analysis is a tool for auditing an organization and its environment. It is the first stage

of planning and helps marketers to focus on key issues. SWOT stands for strengths,

Page 51


weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors.

Opportunities and threats are external factors.

Strengths

1. Advantages of the proposition-SCADA System

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a) A SCADA system can help industry to save time and money through

standardisation of technology.

b) SCADA systems are equipped to make immediate corrections in the

operational system, so they can increase the life-period of your equipment and

save on the need for costly repairs.

c) SCADA software enables you to monitor the operations in real time thus

reducing the operational costs and improves the efficiency of any automation

set up.

d) Reduced incident risks through the reduction in the number and severity of

operational incidents and improved capability to respond once an incident has

occurred (remote monitoring, remote control, and ability to control groups of

assets)

e) Standardize operating procedures and better utilization of staff and the auto-

generated reporting system can ensure compliance with regulatory principles.

f) Improved ability to integrate with other company information systems such as

financial, customer, maintenance management, planning, geographic, email,

etc

2. Capabilities of HCL

a) HCL has a well established and reputed brand name in the market in both

primary sector requirements for SCADA implementation

i. IT domain

ii. Hardware and Networking

b) HCL thus can have a competitive advantage over other existing niche players

in the market by providing end-to-end solutions by itself.

c) HCL keeps up its pace with the changing trends in the technology. Therefore

the clients can be assured of the solution provided by HCL will not become

obsolete.

d) HCL Infinet- the Networking service provider has received MAIT's 'Level II

recognition for Business Excellence'. HCL Infinet has also received the

ELCINA award for quality in networking solution.

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Weaknesses

HCL Infinet while providing the networking solution for SCADA might adopt the

standardized technologies with known vulnerabilities because of the constraints on the use of

existing security technologies and practices which may give rise to the security

vulnerabilities.

1. Security Concerns for SCADA

a) Denial of Service (DoS) attack to crash the SCADA server leading to shut

down condition (System Downtime and Loss of Operations)

b) Delete system files on the SCADA server (System Downtime and Loss of

Operations)

c) Planting a Trojan and take complete control of system (Gain complete control

of system and be able to issue any commands available to Operators)

d) Log keystrokes from Operators and obtain usernames and passwords

(Preparation for future take down)

e) Log any company-sensitive operational data for personal or competition usage

(Loss of Corporate Competitive Advantage)

f) Change data points or deceive Operators into thinking control process is out of

control and must be shut down (Downtime and Loss of Corporate Data)

g) Modify any logged data in remote database system (Loss of Corporate Data)

h) Use SCADA Server as a launching point to defame and compromise other

system components within corporate network. (IP Spoofing)

Opportunities

1. Market developments

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a) SCADA system for different verticals are showing tremendous growth

potential in the next few years:

i. Water & Waste water treatment industry– 5.4% over the next five

years

ii. Oil & Gas industry – 9.3% over the next five years

iii. Electric Power industry – 5.5% over the next five years

b) Indian market is showing an above average growth rate as compared to the

EMEA in the automation sector which provides a great opportunity for

SCADA implementation.

2. Technological Development & Innovation

a) Customization of the PLCs through the use of Software is a market which has

remained aloof from the existing players. HCL has the capability to explore

this opportunity in a profitable manner and can use it as a potential entry

point.

3. New Verticals

a) Opportunities exist for the implementation of SCADA in new verticals in

India like the Traffic Signal control system, Hospitals & Laboratories and

Food Processing industry.

b) HCL can also target operations in niche segments like Nuclear and

Radioactive processing industry which is a booming sector in India due to the

recent Indo-US nuclear deal.

c) SCADA integration with GIS - HCL can also plan to integrate SCADA with

the existing System Integration vertical of HCL-Vehicle Tracking Signal for

proper Traffic Signal control and Congestion Management System.

4. Strategic Alliances / Acquisitions

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a) HCL can go for key strategic alliances with established core automation

sector players in the market and provide them with the required hardware,

software and networking technologies for SCADA implementation.

b) HCL can also go for the acquisition of some small SCADA implementing

firms and thus need not worry about acquiring new projects.

Threats

1. Existing players

a) A number of domestic and international players in the Indian market can pose

a great challenge and competition for HCL.

b) Difficulty in acquiring projects due to customer’s perception that HCL might

lack knowledge about the automation domain.

2. Insurmountable weakness

a) Security threat which is a weakness of the SCADA system both internal and

external, are the biggest threat that HCL might face while developing and

implementing the SCADA system

3. Low cost implementation

a) Thin clients, web based products and web portals which provides low cost

solution for SCADA implementation can pose a threat for new entrant like

HCL

CHAPTER 4

Page 56


ANALYSIS OF THE FINDINGS

4.1 COMPETITIOR’S ANALYSIS

4.1.1 WIPRO

WIPROs Strategy for SCADA implementation

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Wipro's engineering services help automate plants for process industries, particularly when

system integration across a variety of technologies is key to success. Our engineering services

include

Obsolescence protection such as feasibility studies, porting to 64 bit environment

Testing and deploying vendor-solutions

Remote management and SCADA implementation such as pipelines

Design and development of HMI/GUI for process monitoring

Customization and implementation of standard HMI packages

Simulation and Modeling based on Matlab, Labview, others...

Enhancement of in-house solutions such as Data Analysis and Visualization

High Performance Computing such as high volume data analysis, GIS Systems, Simulation

Integrating industrial and business systems

Implementation of surveillance systems for pumping stations

For the implementation of the SCADA successfully Wipro has gone into a number of

strategic alliances with the leading players in this particular domain.

PLC System partners of WIPRO

Allen Bradley

GE Fanuc

Siemens

SCADA & DCS systems partners of WIPRO

Wonderware

Honeywell

Yokogawa

Intellution

Cimplicity

Spectrum of SCADA Services offered by WIPRO

Page 58


BCG Matrix of WIPROs SBUs

Page 59


-1012345

0

2

4

6

8

10

12

14

16

18

20

WIPRO TECHNOLOGIESWIPRO INFOTECHWIPRO LIGHTINGWIPRO INFRASTRUCTURE EN-GINEERINGWIPRO CONSUMER CARE WIPRO BPO

WIPROs alliance with Schneider Electric

Page 60


Wipro will market and deliver Schneider Electric's solutions including Manufacturing

Execution Systems (MES) and Supervisory Control And Data Acquisition (SCADA) in India.

To begin with, Wipro shall provide Schneider Electric’s Ampla MES Solution to the mining,

mineral processing and metals industries.

Wipro’s System Integration capabilities and Schneider Electric’s reach in the SCADA market

will promote the synergy and alliance. Wipro's matured consulting practice and proven

delivery model for large and complex projects will help Schneider Electric’s collective

customers make the most of their energy.

WIPROs alliance with GE Fanuc

GE Fanuc Automation entered into a Solution Provider go-to-market agreement with Wipro

Technologies, the global IT services business of Wipro Limited (NYSE:WIT). The two

companies will work together globally to better serve manufacturing enterprises in the

Automotive, Pharmaceutical, Food & Beverage and Consumer Packaged Goods industries

with solutions in the Production Management area.

This relationship will provide significant value to customers looking to integrate their

Production Management and ERP systems by leveraging Wipro’s knowledge of GE Fanuc

Production Management solutions and their expertise in ERP.

The scope of the agreement covers services, point solution development and joint go-to-

market activities. Wipro’s knowledge of supply chain, plant floor operations, enterprise

technologies and business processes will enable timely and effective deployment of GE

Fanuc Production Management solutions which include the Proficy family of products:

Proficy Tracker, Proficy Plant Applications, Proficy HMI/SCADA CIMPLICITY and iFIX,

as well as Proficy Historian, Proficy Change Management and Proficy Real-Time

Information Portal products that encompass an integrated suite of applications providing

execution, logistics, quality, tracking, reporting and visibility throughout all of a company’s

plant operations.

4.1.2 ASEAN BROWN BOVERI

Page 61


Page 62


Business Segments 2008 2007Power Systems 31% 36%Power Products 28% 26%

Process Automation 18% 17%Automation Products 23% 21%

Power Systems36%

Power Products26%

Process Automation17%

Automation Products

21%

Business Segment Share in 2007

The following pie chart shows the segment wise performance of ABB in the year 2008 and

2007. The revenue from all the other segments of ABB in 2008 other than the Power System

shows a significant increase in the performance from the year 2007.

Power Systems31%

Power Products28%

Process Automation18%

Automation Products

23%

Business Segment Share in 2008

Power System Segment

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2008 2007

Orders Received 25608 30029

Revenues 23054 22514

2008 20070

5000

10000

15000

20000

25000

30000

35000

Power System Segment

Orders ReceivedRevenues

Central Government’s focus on the power sector reforms and introduction of the National

Electricity policy in past few years is reflected in increasing investments in capacity addition,

development of transmission network and power distribution improvements. However due to

the exceptional global liquidity crunch, economic downturn and increase in capital costs

resulted in the postponement and implementation of several power projects, especially those

which has been taken up by industrial houses. The rescheduling of few power projects and

Company’s decision to exit Rural Electrification projects due to safety and cash flow

concerns has resulted in lower orders received as compared to the previous year.

The exit of ABB from the Rural Electrification projects presents an opportunity in front of

HCL to grab these projects and thus enter the market in automation projects and provide end

to end solution to the Government of India.

Power Product Segment

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2008 2007



2008 20070

5000

10000

15000

20000

25000

30000

Power Product Segment


Buoyancy in the transmission sector and the distribution sector continued during the year

with higher level of investment in this sector until the middle of the year. The orders

somehow slowed down during the second half of the year due to liquidity crunch and

slowdown in the global market. However as per the current indications in the Eleventh five

year plan the Government of India is planning towards the implementation of the power

generation, distribution and transmission projects. The stimulus package announced by the

Government of India of around Rs.20 crore shows the seriousness of the Government of India

towards this sector.

Thus the impetus of the Government towards this sector can be perceived by HCL as a

positive indicator and can use this as an opportunity to enter the market.

Process Automation Segment

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2008 2007



2008 20070

2000

4000

6000

8000

10000

12000

14000

16000

18000

Process Automation Segment


The Industrial climate in the country remained buoyant during the first half of the year with

strong growth indicators from various verticals. The global market meltdown affected the

second half of the year with some of the proposed investments being deferred or postponed

indefinitely. The industry has significant opportunities for investments looking at the trend of

increasing per capita consumptions of steel, cement etc. Also the setting of industrial plants

by steel majors like POSCO and Arcelor-Mittal provides an opportunity for this sector to

grab new projects.

HCL can plan acquisitions or a strategic merger with Siemens and acquire mechanical OEMs

in the metal sector and then put effort to consolidate this acquisition with their own

automation solutions for metals to provide an end to end solution to the customer

Automation Products Segment

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2008 2007



1 20

5000

10000

15000

20000

25000

Automation Product Segment


A positive market environment particularly in the first half of the year coupled with strategic

thrust on capacity and product range expansion and focused marketing efforts depending

upon the industry verticals helped the segment in registering a growth of 34% in orders

received and 30% increase in the revenues during the year. There was a strong marketing

focus on the original equipment manufacturer (OEM) segment including HVAC, pumps,

compressor, boiler machinery, wind energy, waste water management.

Building up of capacities by the segment and increase in competition coupled with reduction

in the demand in the market on account of the slow down posed challenges for the growth in

business volumes. Capacity expansion planned in infrastructure sector like water, roads,

railways, wind and water management projects are expected to grow.

HCL can plan major marketing activities in potential growth areas like railways, water, waste

water, maintain efficient distribution network and continuous range expansion in order to

establish itself in the market.

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4.1.3 ROCKWELL AUTOMATION

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Business Segment Information

Rockwell Automation is a leading global provider of industrial automation power, control

and information solutions that help manufacturers achieve a competitive advantage for their

businesses. Rockwell determines their operating segments based on the information used by

their chief operating decision maker, Chief Executive Officer, to allocate resources and assess

performance. Based upon these criteria, Rockwell organized their products and services into

two operating segments: Architecture & Software and Control Products & Solutions.

Architecture & Software

The Architecture & Software segment contains all of the elements of our integrated control

and information architecture capable of controlling the customer’s plant floor and connecting

with their manufacturing enterprise.

Architecture & Software has a broad portfolio of products including:

Control platforms that perform multiple control disciplines and monitoring of

applications, including discrete, batch, continuous process, drives control, motion

control and machine safety control. Our platform products include controllers,

electronic operator interface devices, electronic input/output devices, communication

and networking products, industrial computers and condition based monitoring

systems. The information-enabled Logix controllers provide integrated multi-

discipline control that is modular and scalable.

Software products that include configuration and visualization software used to

operate and supervise control platforms, advanced process control software and

manufacturing execution software (MES) that addresses information needs between

the factory floor and a customer’s enterprise business system. Examples of MES

applications are production scheduling, asset management, tracking, genealogy and

manufacturing business intelligence.

Other Architecture & Software products, including rotary and linear motion control

products, sensors and machine safety components.

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2009 2008

Sales $1,723.

5 $2,419.

7Segment Operating

Earnings 223 584.7Segment Operating Margins 12.90% 24.20%(in millions, except percentages)

Sales

Architecture & Software sales decreased 29 percent in 2009 compared to 2008 as plant

shutdowns occurred and production slowed across many industries. Organic sales decreased

24 percent, as the effects of currency translation contributed approximately 5 percentage

points to the decline.

2009 20080.00

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

Sales

We experienced year-over-year declines in sales of this segment as a result of the global

recession and the short-cycle nature of this segment’s sales activities.

Logix sales declined 17 percent in 2009 compared to 2008, while the decline in sales of our

legacy processor products was greater than the segment’s average rate of decline.

Page 70


Operating Margin

Architecture &Software segment operating margin decreased by 11.3 points to 12.9 percent

in 2009 compared to 2008. The decrease was primarily due to significant declines in sales

volume. The unfavorable impact of currency exchange rates and restructuring charges also

contributed to the decrease, partially offset by cost reductions.

2009 20080.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

Segment Operating Margins

Control Products & Solutions

The Control Products & Solutions segment combines a comprehensive portfolio of intelligent

motor control and industrial control products with the customer support and application

knowledge necessary to implement an automation or information solution on the plant floor.

This comprehensive portfolio includes:

Low voltage and medium voltage electro-mechanical and electronic motor starters,

motor and circuit protection devices, AC/DC variable frequency drives, contactors,

push buttons, signaling devices, termination and protection devices, relays and timers

and condition sensors.

Value-added packaged solutions, including configured drives, motor control centers

and custom-engineered panels for OEM and end-user applications.

Automation and information solutions, including custom-engineered hardware and

software systems for discrete, process, motion, drives and manufacturing information

applications.

Page 71


2009 2008

Sales 2,609.0

03,278.1

0Segment Operating Earnings 206.7 440.5Segment Operating Margins 7.90% 13.40%

(in millions, except percentages)

Sales

Control Products & Solutions sales decreased 20 percent in 2009 compared to 2008. Organic

sales decreased 15 percent as the effects of currency translation contributed 5 percentage

points to the decrease.

2009 20080.00

500.00

1,000.00

1,500.00

2,000.00

2,500.00

3,000.00

3,500.00

Sales

We experienced significant year-over-year declines in sales by the products businesses of this

segment as a result of the global recession and the short-cycle nature of these businesses’

sales activities. Sales by our solutions and services businesses declined at a lower rate than

the segment’s average rate of decline, as we delivered solutions from our backlog.

Operating Margin

Page 72


2009 20080.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

Segment Operating Margins

Control Products & Solutions segment operating margin decreased by 5.5 points to 7.9

percent in 2009 compared to 2008. The decrease resulted primarily from significant declines

in sales volume. Inflation, the unfavorable impact of currency exchange rates and

restructuring charges also contributed to the decrease.

Competitors

The major competitors of our Architecture & Software operating segment include

Siemens AG, Mitsubishi Corp., ABB Ltd, Honeywell International Inc., Schneider

Electric SA and Emerson Electric Co.

The major competitors of our Control Products&Solutions operating segment include

Siemens AG, ABB Ltd, Schneider Electric SA, Honeywell International Inc. and

Emerson Electric Co.

Page 73


4.1.4 SIEMENS

Page 74


Segment information :

The primary and secondary reportable segments are business segments and geographical

segments respectively.

Business Segments: The business of the company is divided into eleven segments. These

segments are the basis for management control and hence, form the basis for reporting. The

business of each segment comprises of:

RevenueExternal sales Inter segmental sales Total

2008 2007 2008 2007 2008 2007Automation and

drives1,59,78,71

11,34,10,66

350,69,64

031,44,81

62,10,48,35

11,65,55,47

9Industrial solutions

and services1,17,95,42

0 92,37,928 2,34,009 2,91,0521,20,29,42

9 95,28,980Transport 67,08,858 34,67,424 0 0 67,08,858 34,67,424Building

technologies 0 9,84,319 0 35,274 0 10,19,593

Power4,15,42,87

94,17,79,90

6 8,35,46512,28,24

94,23,78,34

44,30,08,15

5Healthcare and other services 60,53,460 52,46,931 0 0 60,53,460 52,46,931

Real estate 6,44,530 4,95,568 0 0 6,44,530 4,95,568Information and communication 0 14,41,880 0 28,088 0 14,69,968

Automotive 2,31,596 12,03,437 0 0 2,31,596 12,03,437

Page 75


20080

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000Segment-wise External Sales 2008

Automation and drives

Industrial solutions and services

Transport

Building technologies

Power

Healthcare and other services

Real estate

Information and communication

Automotive

Power

Provides automation solutions for a wide range of applications in power plants,

focusing on a complete range of medium and high voltage switchgears, medium

voltage switchboards, protection and control systems for sub-stations, power system

control and energy management systems, meters, transformers and industrial turbines.

2008 200741,400,000

41,450,000

41,500,000

41,550,000

41,600,000

41,650,000

41,700,000

41,750,000

41,800,000

Power

Automation & drives

Provides the complete range of automation products & systems, from large and

standard drives and motors, special purpose motors, process and motion control

systems, industrial automation systems to low-voltage controls and distribution and

electrical installation technology.

Page 76


2008 200712,000,000

12,500,000

13,000,000

13,500,000

14,000,000

14,500,000

15,000,000

15,500,000

16,000,000

16,500,000

Automation and drives

Information technology services

Provides comprehensive range of technology services, including software

development, packaged software integration and systems maintenance to its

worldwide customers operating in different industries.

2008 20070

200000

400000

600000

800000

1000000

1200000

1400000

1600000

Information and communication

Convergence communications solutions for enterprises, communications, video

conferencing, and call centers, networking, mobility, teleworking, multimedia

customer relation management. Provides mobile handsets and accessories. Provides

back office support services to group companies and other external customers.

Page 77


Siemens India has discontinued the operations in the Information Communication

sector in 2008. This is clearly evident from the fact that the sales in the year 2008

were zero.

Transport

Provides solutions for rail automation, railway electrification, light and heavy rail,

locomotives, trains, turnkey projects and integrated services.

2008 20070

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Transport

Healthcare & other services

Provides diagnostic, therapeutic and life-saving products in computer tomography

(CT), magnetic resonance imaging (MRI), ultrasonography, nuclear medicine, digital

angiography, patient monitoring systems, digital radiography systems, radiology

networking systems, lithotripsy and linear accelerators.

2008 20074,800,000

5,000,000

5,200,000

5,400,000

5,600,000

5,800,000

6,000,000

6,200,000

Healthcare and other services

Industrial solutions & services

Page 78


Undertakes turnkey projects in the industrial and infrastructure sectors over the entire

life cycle including concept, engineering, procurement, supplies, installation,

commissioning and after sales services.

2008 20070

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

Industrial solutions and services

Building Technologies

Executes projects for providing Integrated Building Management Systems including

Building Automation Systems, Fire Alarm/Access Control/Security Systems.

2008 20070

200000

400000

600000

800000

1000000

1200000

Building technologies

Siemens India has discontinued the operations in the Building Technologies sector in

2008. This is clearly evident from the fact that the sales in the year 2008 was zero.

Real estate

Page 79


Provides comprehensive real estate management.

2008 20070

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Real estate

Automotive

Manufacturing and trading of dashboard instruments, tachographs and other allied

equipments for the automobile.

2008 20070

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Automotive

Geographical Segments: The business is organised in two geographic segments i.e.

domestic and exports.

Page 80


4.1.5 HONEYWELL

Page 81


Honeywell manages their operations basically through four major businesses that are reported

as operating segments:

Aerospace

Aerospace segment is a leading global provider of integrated avionics, engines,

systems and service solutions for aircraft manufacturers, airlines, business and general

aviation, military, space and other operations.

Automation and Control Solutions

Automation and Control System is a leading global provider of environmental and

combustion control systems, sensing controls, security and life safety products and

services, scanning and mobility devices and process automation and building

solutions and services for homes, buildings and industrial facilities.

Speciality materials

Speciality material segment is a global leader in providing customers with high

performance speciality materials, including hydrocarbon processing technologies,

catalysts, adsorbents, equipments and services, speciality materials and electronic

equipments.

Transportation Systems

Transportation System segment is one of the leading manufacturers of engine

boosting systems for passenger cars and commercial vehicles as well as a leading

provider of automotive care and braking products.

2009 2008 2007Net Sales

Aerospace 10,763 12650 12,236

Page 82


Automation and Control Solutions 12,611 14,018 12,478Specialty Materials 4,144 5,266 4,866Transportation Systems 3,389 4,622 5,009Corporate 1 0 0

(dollars in millions) $ 30908 $ 36556 $ 34589

35%

41%

13%

11%

0%

Net Sales Segment wiseAerospace Automation and Control SolutionsSpecialty Materials Transportation SystemsCorporate

2009 2008 2007Segment Profit

Aerospace 1,893 2,300 2,197 Automation and Control Solutions 1,588 1,622 1,405Specialty Materials 605 721 658Transportation Systems 156 406 583Corporate (145) (204) (189)

(dollars in millions) $ 4097 $ 4845 $ 4654

Page 83


45%

37%

14%

4%

Segmentwise Profit

Aerospace Automation and Control Solutions Specialty Materials Transportation Systems

Aerospace 2010 Areas of Focus

2009 2008 20079,500

10,000

10,500

11,000

11,500

12,000

12,500

13,000

Aerospace-Net Sales

Aerospace

2009 2008 20070

500

1,000

1,500

2,000

2,500

Aerospace-Profit

Aerospace

Aerospace’s primary areas of focus for 2010 include:

Page 84


Focus on cost structure initiatives to maintain profitability in the face of challenging

commercial aerospace conditions;

Aligning inventory, production and research and development with customer demand

and production schedules;

Expanding sales and operations in international locations;

Pursuit of new defense and space platforms;

Continuing to design equipment that enhances the safety, performance and durability

of aerospace and defense equipment, while reducing weight and operating costs;

Delivering world-class customer service and achieving cycle and lead time reduction

to improve responsiveness to customer demand; and

Continued deployment of our common enterprise resource planning (ERP) system.

Automation and Control Solutions 2010 Areas of Focus

2009 2008 200711,500

12,000

12,500

13,000

13,500

14,000

14,500

ACS- Net Sales


2009 2008 20071,250

1,300

1,350

1,400

1,450

1,500

1,550

1,600

1,650

ACS - Profit


ACS’s primary areas of focus for 2010 include:

Products and solutions for energy efficiency and asset management;

Page 85


Extending technology leadership: lowest total installed cost and integrated product

solutions;

Defending and extending our installed base through customer productivity and

globalization;

Sustaining strong brand recognition through our brand and channel management;

Centralization and standardization of global software development capabilities;

Continuing to identify, execute and integrate acquisitions in or adjacent to the markets

which we serve;

Continuing to establish and grow emerging markets presence and capability;

Continuing to invest in new product development and introductions; and

Continued deployment of our common ERP system.

Speciality materials 2010 Areas of Focus

2009 2008 20070

1,000

2,000

3,000

4,000

5,000

6,000

Specialty Materials - Net Sales

Specialty Materials

2009 2008 2007540

560

580

600

620

640

660

680

700

720

740

Specialty Materials - Profit

Specialty Materials

Specialty Materials primary areas of focus for 2010 include:

Continue to develop new processes, products and technologies that address energy

efficiency, renewable energy sources, global warming, security regulations and

position the portfolio for higher value;

Page 86


Commercialize new products and technologies in the petrochemical, gas processing

and refining industries;

Drive sales and marketing excellence and expand local presence in fast growing

emerging markets;

Execution of awarded government stimulus projects and pursuit of additional projects;

Manage exposure to raw material commodity fluctuations; and

Prioritize critical investment to increase plant reliability and attainment, productivity,

quality and operational excellence.

Transportation Systems 2010 Areas of Focus

2009 2008 20070

1,000

2,000

3,000

4,000

5,000

6,000

Transportation Systems - Net Sales


2009 2008 20070

100

200

300

400

500

600

700

Transportation Systems - Profit


Transportation Systems primary areas of focus in 2010 include:

Sustaining superior turbocharger technology through successful platform launches;

Page 87


Maintaining the high quality of current products while executing new product

introductions;

Increasing global penetration and share of diesel and gasoline turbocharger OEM

demand;

Increasing plant productivity to address capacity challenges generated by volatility in

product demand and OEM inventory levels;

Aligning cost structure with current economic outlook, and successful execution of

repositioning actions;

Aligning development efforts and costs with new turbo platform launch schedules;

and

Continuing global expansion and extension of established strong product brands in

CPG.

4.1.6 GENRAL ELECTRIC

Page 88


Segment Operations

Our five segments are focused on the broad markets they serve:

Energy Infrastructure

Page 89


Technology Infrastructure

NBC Universal

Capital Finance

Consumer & Industrial

Revenues 2009 2008 2007Energy Infrastructure 37,134 38,571 30,698Technology Infrastructure 42,474 46,316 42,801NBC Universal 15,436 16,969 15,416Caital Finance 50,622 67,008 66,301Consumer & Industrial 9,703 11,737 12,663

Energy In-frastructure

24%

Technology In-frastructure

27%

NBC Universal10%

Caital Finance33%

Consumer & Industrial6%

Segmentwise Revenue

Segment Profit 2009 2008 2007Energy Infrastructure 6,842 6,080 4,817Technology 7,489 8,152 7,883

Page 90


InfrastructureNBC Universal 2,264 3,131 3,107Caital Finance 2,344 8,632 12,243Consumer & Industrial 400 365 1,034

Energy In-frastructure

35%

Technology In-frastructure

39%

NBC Universal12%

Caital Finance12%

Consumer & Industrial2%

Segmentwise Profit


2009 2008 20070

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Energy Infrastructure-Revenue


Energy Infrastructure segment revenues decreased 4%, or $1.4 billion, in 2009 as higher

prices ($1.3 billion) were more than offset by lower volume ($1.6 billion), the stronger U.S.

dollar ($0.7 billion) and lower other income ($0.5 billion), primarily related to lower earnings

from associated companies and marks on foreign currency contracts. The increase in price

was primarily at Energy. The decrease in volume reflected decreased equipment sales at

Energy, partially offset by increased equipment sales at Oil & Gas. The effects of the stronger

U.S. dollar were at both Energy and Oil & Gas.

Page 91


2009 2008 20070

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Energy Infrastructure -Profit


Segment profit increased 13% to $6.8 billion, compared with $6.1 billion in 2008, as higher

prices ($1.3 billion) and lower material and other costs ($0.5 billion) were partially offset by

lower other income ($0.7 billion), primarily related to lower earnings from associated

companies and marks on foreign currency contracts, and lower volume ($0.2 billion). Lower

material and other costs were primarily at Energy. Lower volume at Energy was partially

offset by higher volume at Oil & Gas.


2009 2008 200740,000

41,000

42,000

43,000

44,000

45,000

46,000

47,000

Technology Infrastructure- Revenue


2009 2008 20077,000

7,200

7,400

7,600

7,800

8,000

8,200

8,400

Technology Infrastructure- Profit


Technology Infrastructure revenues decreased 8%, or $3.8 billion, in 2009 as lower volume

($4.1 billion), the stronger U.S. dollar ($0.4 billion) and an update at Transportation of our

estimate of product service costs in maintenance service agreements ($0.3 billion) were

partially offset by higher prices ($0.5 billion) and higher other income ($0.5 billion),

primarily including gains on the ATI-Singapore acquisition, dissolution of the joint venture

Page 92


with FANUC Ltd. and the Times Microwave Systems disposition. The decrease in volume

was across all businesses in the segment. The effects of the stronger U.S. dollar were at

Healthcare, Enterprise Solutions and Aviation. Higher prices, primarily at Aviation, were

partially offset by lower prices at Healthcare. Segment profit decreased 8% to $7.5 billion in

2009, compared with $8.2 billion in 2008, as the effects of lower volume ($1.0 billion) and

lower productivity ($0.4 billion) were partially offset by higher prices ($0.5 billion) and

higher other income ($0.4 billion), primarily including gains on the ATI-Singapore

acquisition, dissolution of the joint venture with FANUC Ltd. and the Times Microwave

Systems disposition. The decrease in volume was across all businesses in the segment. Lower

productivity at Transportation and Enterprise Solutions was partially offset by Aviation.

NBC Universal

2009 2008 200714,500

15,000

15,500

16,000

16,500

17,000

17,500

NBC Universal - Revenue

NBC Universal

2009 2008 20070

500

1,000

1,500

2,000

2,500

3,000

3,500

NBC Universal -Profit

NBC Universal

NBC Universal_ revenues decreased 9%, or $1.5 billion, in 2009 as lower revenues in our

broadcast television business ($1.1 billion), reflecting the lack of a current-year counterpart to

the 2008 Olympics broadcasts and the effects of lower advertising revenues, lower revenues

in film ($0.8 billion) and lower earnings and higher impairments related to associated

companies and investment securities ($0.4 billion) were partially offset by the gain relating to

A&E Television Network (AETN) ($0.6 billion) and higher revenues in cable ($0.3 billion).

Segment profit of $2.3 billion decreased 28%, or $0.9 billion, as lower earnings in film ($0.6

billion), lower earnings and higher impairments related to associated companies and

Page 93


investment securities ($0.4 billion), lack of current-year counterpart to 2008 proceeds from

insurance claims ($0.4 billion) and lower earnings in our broadcast television business ($0.2

billion) were partially offset by the gain related to AETN ($0.6 billion) and higher earnings in

cable ($0.2 billion).

Capital Finance

2009 2008 20070

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Capital Finance - Revenue

Caital Finance

2009 2008 20070

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Capital Finance - Profit

Caital Finance

Capital Finance revenues decreased 24% and net earnings decreased 73% compared with

2008. Revenues in 2009 and 2008 included $3.0 billion and $0.4 billion of revenue from

acquisitions, respectively, and in 2009 were reduced by $4.8 billion as a result of

dispositions, including the effect of the deconsolidation of Penske Truck Leasing Co., L.P.

(PTL). Revenues in 2009 also decreased $14.1 billion compared with 2008 as a result of

organic revenue declines, primarily driven by a lower asset base and a lower interest rate

environment, and the stronger U.S. dollar. Net earnings decreased by $6.3 billion in 2009

compared with 2008, primarily due to higher provisions for losses on financing receivables

associated with the challenging economic environment, partially offset by lower selling,

general and administrative costs and the decision to indefinitely reinvest prior-year earnings

outside the U.S.

Page 94


During 2009, GE Capital provided $72 billion of new financings in the U.S. to various

companies, infrastructure projects and municipalities. Additionally, we extended $74 billion

of credit to approximately 54 million U.S. consumers. GE Capital provided credit to

approximately 14,200 new commercial customers and 40,000 new small businesses during

2009 in the U.S. and ended the period with outstanding credit to more than 346,000

commercial customers and 174,000 small businesses through retail programs in the U.S.


2009 2008 20070

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Consumer & Industrial - Revenue


2009 2008 20070

200

400

600

800

1000

1200

Consumer & Industrial -Profit


Consumer & Industrial_ revenues of $9.7 billion decreased 17%, or $2.0 billion, in 2009

compared with 2008, as lower volume ($2.2 billion) and the stronger U.S. dollar ($0.1

billion) were partially offset by higher prices ($0.2 billion). The decrease in volume primarily

reflected tightened consumer spending in the European and U.S. markets. Segment profit

increased 10% in 2009 as higher prices ($0.2 billion) and lower material and other costs ($0.2

billion) were partially offset by lower productivity ($0.3 billion) and lower other income

($0.1 billion).

4.2 COMMISSIONING/VALIDATION

4.2.1 GENERAL COMMISSIONING

Page 95


Commissioning is the formal process of verifying and documenting that the installed SCADA

system complies with and performs in accordance with the design intent, as defined in the

design documentation. Commissioning should be identified as a specific activity requiring its

own planning, scheduling, management and monitoring during the design and construction

process. A commissioning team should be assembled including representatives of all

involved parties.

a. Those represented should include as a minimum:

(1) Government project management

(2) Facility operations

(3) Design engineer

(4) General contractor

(5) Mechanical subcontractor

(6) Electrical subcontractor

(7) System integrator

(8) Installation subcontractor

(9) Major equipment vendors

(10)Reliability engineer

b. Roles and responsibilities of the various parties within the commissioning process

may vary with the agency and the type of project. In some cases, an independent

engineer may be brought in to coordinate and oversee the commissioning process. If

an independent engineer is not used, the design engineer should be retained to oversee

the commissioning process. In either case, certain key components of the program that

must be included for a successful outcome:

(1) A clear definition of the process and the parties’ roles and responsibilities

(Commissioning Plan).

(2) Integration of commissioning activities into the overall project schedule.

(3) An organized system of commissioning documentation.

(4) Development of written testing and verification procedures for every

critical aspect of system performance.

(5) Review of these procedures by all affected parties prior to testing.

(6) Clear definition prior to testing of the criteria for acceptance.

(7) Procedures for correction and retesting in the case of failure.

Page 96


c. Projects completed through the Military Construction (Mil Con) process

automatically include commissioning. Facility managers must assure that

commissioning is included in the scope of site initiated projects.

4.2.2 FACTORY ACCEPTANCE TESTING

A factory acceptance test and demonstration should be required in which the controller(s),

I/O, and HMI hardware and software are verified to the extent possible without the actual

field devices.

a. This test should demonstrate the following:

(1) Simulation of all inputs

(2) Operation of all outputs with dummy load

(3) Loop operation

(4) Control sequences

(5) Network communications

(6) HMI screens, displays, and alarms

(7) Operator control functions

(8) Physical and information security measures

b. PLC systems providing control of standby generators and paralleling switchgear

should be factory tested with the switchgear to demonstrate actual operation of the

breakers and other controls with simulated utility and generator voltage and frequency

sources.

4.2.3 INTEGRITY TESTING

Pneumatic lines should be pressure tested per ISA RP 7.1 and checked for obstructions.

Electrical conductors should be tested for continuity and insulation resistance according to

industry standards for their voltage ratings.

4.2.4 CALIBRATION

Instrument and actuator calibration should be completed prior to loop checkout or startup of

systems. The calibration program should include the following:

a. All sensors, elements, indicators, transmitters and actuators should be calibrated

from NIST traceable standards according to the manufacturer’s instructions.

Page 97


b. All calibration equipment should have current independent certification of

accuracy.

c. Stroke actuators and verify control action, limits, and end switches.

d. Each calibrated instrument should be field-marked with a waterproof calibration

tag bearing the range, set point, date and calibrator’s initials.

e. An Instrument Certification sheet should be completed for each instrument and

included in the system documentation.

f. A Final Control Element Certification sheet should be completed for each control

valve and included in the system documentation.

4.2.5 LOOP VERIFICATION

The wiring of each control loop should be physically verified from the field device terminals

to the controller.

Cable, conductor, terminal board and terminal designations should be verified and marked off

as such on a copy of the loop diagram or equivalent schematic or wiring diagram.

Verification should be by signal tracing, continuity verification, or “ringing out”. Tags and

labels placed during construction should not be considered adequate verification.

a. Each control loop should be verified by injection of an appropriate pressure,

voltage, or current signal. Use actual signals where available.

(1) Closely observe controllers, recorders, alarm and trip units, remote

setpoints, ratio systems, and other control components. Make corrections as

required. Following any corrections, retest the loop as before.

(2) Stroke all control valves, cylinders, drives and connecting linkages from

the local control station and from the control room operator interface.

(3) Check all interlocks to the maximum extent possible. In addition to any

other as-recorded documents, record all setpoint and calibration changes on all

system documentation.

b. All analog loops should be tuned for optimum response using a closed-loop tuning

method and the resulting gain, reset and rate recorded on the loop checkout sheet.

c. A Control Loop Checkout sheet should be completed for each loop.

4.2.6 FUNCTIONAL PERFORMANCE TESTING

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Performance testing of all systems should be performed to verify compliance with the

specified sequences of operations and control diagrams. Functional performance testing

consists of executing written step-by step procedures in which a condition is initiated or

simulated and the response of the system is noted and compared to the specified response.

Functional performance tests must verify the following:

a. Manual and automatic control modes.

b. Normal system conditions and modes of operation.

c. Contingency conditions and modes of operation.

d. Effect of all operator controls.

e. Operation of all interlocks and permissives.

f. Confirmation of failure state of all outputs.

g. Physical and information security measures.

4.2.7 SOFTWARE INTEGRITY

It is common for PLC programming errors to be identified during functional performance

testing of SCADA systems. Typically these are easily corrected by revising the program logic

via a laptop computer and testing is then continued. It is also common for unforeseen

circumstances to dictate that a change be made to the specified sequence of operation in the

field, again easily implemented by changing the PLC logic. These common startup processes

contain the serious risk that a change made to correct misoperation at one point in the PLC

control sequence may inadvertently affect the performance of other control sequences that

have already been tested and accepted.

4.2.8 RE-COMMISSIONING

Whenever all or part of a SCADA system is modified, repaired or replaced, re-

commissioning is required to verify that the portions of the system affected function correctly

and that the work has not affected other portions of the system. The extent of re-

commissioning required should be determined from the extent of the modifications.

a. For work that affects only devices and wiring external to the controller, the affected

loops should be verified and functionally tested.

b. For changes to controller program logic or settings, the entire process or subsystem

supported by that controller should be functionally tested, and the interface to the

supervisory level HMI verified.

Page 99


c. More extensive modifications may require re-commissioning of the complete

SCADA system.

d. Functional performance testing for system certification must take place without

operator intervention in the processor from beginning to end of the test. For this

reason it is highly recommended that a complete pre-test be conducted, using the full

functional performance test procedure, prior to undertaking the certification test.

4.2.9 INSTRUMENT CERTIFICATION SHEET

Prior to functional performance testing, all sensors and instruments should be calibrated and

documented using an Instrument Certification Sheet. Each Instrument Certification Sheet

should include four sections:

a. Description of the Instrument such as Tag Number and Description;

b. A table to record the calibration of Transmitters and Indicators;

c. A table to record the calibration of Process Switches;

d. A list of the Calibration equipment used.

e. Instrument Description: The Instrument Description section should include the

following information:

(1) Project name

(2) Project location

(3) Project number

(4) Certifier’s name

(5) Certification date

(6) Control loop number

(7) Drawing references (such as P&ID, wiring diagram, etc.)

(8) Instrument tag number

(9) Instrument Description

(10) Instrument location

(11) Instrument manufacturer

(12) Instrument model number

(13) Instrument serial number, if applicable

(14) Instrument range

(15) Instrument setpoint and deadband (for switches)

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f. A record of the transmitters and indicators calibration should contain the following

data for both increasing and decreasing input signals at 0, 25, 50, 75 and 100 percent

of span.

(1) Input value

(2) Output value

(3) Error

g. A record of the process switches calibration should contain the following data for

both increasing and decreasing inputs at all setpoints:

(1) Setpoint value

(2) Operate value

(3) Error

h. Calibration equipment: The certification sheet should include the following

information on the calibration equipment used.

(1) Type of Device

(2) Manufacturer and Model Number

(3) Accuracy

(4) NIST Traceability (Yes/No)

i. Definitions:

(1) Input: the process value

(2) Output: the measured value of the switch actuation point

(3) Span: the difference between the Maximum and Minimum value of the

instrument

(4) Error: [(Output – Input) / Span] x 100%

4.2.10 FINAL CONTROL ELEMENT CERTIFICATION SHEET

Valve actuators and other final control elements should also be calibrated and documented. A

final control element certification sheet should include four sections:

a. Description of the final control element such as tag number and description

b. A table to record the calibration of the I/P (current to pneumatic) converter, if

applicable

c. A table to record the calibration of the final control element

d. A list of the calibration equipment used

e. The final control element description section should include the following

information.

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(1) Project Name

(2) Project Location

(3) Project Number

(4) Certifier’s Name

(5) Certification Date

(6) Control Loop Number

(7) Drawing References (such as P&ID, Wiring Diagram, etc.)

(8) Control Valve Tag Number

(9) Control Valve Description

(10) Control Valve Location

(11) Control Valve Manufacturer

(12) Control Valve Model Number

(13) Control Valve Serial Number, if applicable

(14) Control Valve Actuator (Pneumatic or Electric)

(15) Control Valve Positioner (Direct or Reverse), if applicable

(16) Control Valve Positioner Input and Output Signal, if applicable

(17) Control Valve I/P Converter Input and Output Signal, if applicable

(18) Control Valve Failure Mode (open or close) on air failure, if applicable

(19) Control Valve Failure Mode (open or close) on power failure, if

applicable

f. A record of the I/P (current to pneumatic) converter calibration should contain the

following data for both increasing and decreasing inputs at 0, 25, 50, 75 and 100

percent of span:

(1) Input value

(2) Output value

(3) Error

g. A record of the final control element calibration should contain the following data

for both increasing and decreasing signals at 0, 25, 50, 75 and 100 percent span:

(1) Input value

(2) Output travel (position)

(3) Error

h. The certification sheet should include the following information on the calibration

equipment used.

(1) Type of Device

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(2) Manufacturer and Model Number

(3) Accuracy

(4) NIST Traceability (Yes/No)

i. Definitions:

(1) Input: the control signal from the controller (PLC)

(2) Output: the measured value of the valve controller to the valve

(3) Travel: the valve percent open (not all valves are linear)

(4) Error: [(Output – Input) / Span] x 100%

4.2.11 CONTROL LOOP CHECKOUT SHEET

The control system integrator should perform loop checkouts for each control loop in the

system and provide suitable documentation certifying that the loop is tuned and operating

properly. The control loop checkout sheet should have a section verifying each of the six

steps described below. When this has been verified and signed off, the functional

performance testing (FPT) can be started.

a. Verify Mechanical Field Installation; that are no leaks;

(1) Motors and Pumps

(2) Valves and Dampers

b. Verify that all instruments are calibrated correctly for the specified ranges and

setpoints;

(1) Pressure instruments

(2) Flow instruments

(3) Level instruments

(4) Temperature instruments

(5) Analysis instruments

c. Verify Electrical power wiring;

(1) Incoming power sources for proper voltage

(2) Field cables properly installed and identified

(3) Circuit breakers sized and operating correctly

(4) Fuses sized correctly inside control panels

d. Verify control system Input and Output wiring;

(1) Digital (switch) inputs

(2) Digital (on/off) outputs

(3) Analog (transmitters) inputs

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(4) Analog (VFD’s, valves, and meters) outputs

e. Verify software logic is complete;

(1) Correct programs are loaded

(2) Factory Acceptance Test (FAT) thoroughly completed

(3) Software Management Practices in place

f. Verify HMI (or OIT) points and displays are complete;

(1) Graphic screens and screen navigation

(2) Alarm screens and operator actions

(3) Trend Displays and Data Archiving configured properly

g. The software logic and HMI/OIT should have been verified during the factory

acceptance test.

h. The Control Loop Checkout Sheet should have a section verifying each of the steps

describe above.

When this has been verified and signed off, the Functional Performance Testing can

be started.

4.3 MAINTENANCE PRACTICES

4.3.1 GENERAL MAINTENANCE

A comprehensive maintenance program is critical to attaining long-term reliable performance

of SCADA systems. Periodic device calibration, preventive maintenance, and testing allow

potential problems to be identified before they can cause mission failure. Prompt corrective

maintenance assures reliability by minimizing downtime of redundant components.

4.3.2 PREVENTIVE MAINTENANCE

The SCADA system should be part of the overall preventive maintenance (PM) program for

the facility. Preventive maintenance schedules for SCADA components and subsystems

should be coordinated with those for the mechanical/electrical systems they serve to

minimize overall scheduled downtime.

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a. Many components of SCADA systems, such as dead-bus relays, are not required to

function under normal system operating modes. For this reason the system should be tested

periodically under actual or simulated contingency conditions. These tests should approach as

closely as possible the actual off normal conditions in which the system must operate. For

example, SCADA for standby generator plants should be tested by interrupting the utility

source as far upstream of the normal service as possible.

b. Periodic system testing procedures can duplicate or be derived from the functional

performance testing procedures.

c. The SCADA software maintenance should include timely updates of any new versions

from the supplier and testing to verify proper installation on the SCADA computer. In

addition, software antivirus updates should be maintained. This should be performed any time

after the computer is connected to the Internet. Normal operation requires that the SCADA

computer not be connected to the Internet.

d. Electrical power systems, both AC and DC, serving SCADA systems should be maintained

in accord with the requirements of TM 5-692-1 and NFPA 70B.

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4.3.3 CONCURRENT MAINTENANCE

Concurrent maintenance is defined as testing, troubleshooting, repair or replacement of a

component or subsystem while redundant component(s) or subsystem(s) are serving the load.

The ability to perform concurrent maintenance is critical to attaining the specified

reliability/availability criteria for C4ISR facilities and must be designed into the SCADA

system. Where SCADA components are associated with equipment that has redundancy and

therefore are not themselves redundant, their maintenance should be scheduled to occur

during maintenance of the associated equipment. SCADA components and controllers that

are redundant must be capable of being taken out of service, repaired or replaced and tested

without interfering with the operation of the redundant component.

4.3.4 RELIABILTY CENTRED MAINTENANCE

Reliability-Centered Maintenance (RCM) is an approach for developing an effective and

efficient maintenance program based on the reliability characteristics of the constituent parts

and subsystems, economics,and safety. RCM provides a logical, structured framework for

determining the optimum mix of applicable and effective maintenance activities needed to

sustain the operational reliability of systems and equipment while ensuring their safe and

economical operation and support. RCM has changed the approach to preventive

maintenance, and can be considered the “next step” in moving from a trial and error based

approach to establishing PM frequencies to an intelligent approach to maintenance planning.

A significant by-product of the application of SCADA systems to the control of C4ISR

facilities is the large amount of operational data made available through the trending and data

storage features of the SCADA. This operational data can be used for automated performance

monitoring of mechanical and electrical systems that can support a RCM approach.

4.3.5 OPERATIONS AND MAINTENANCE DOCUMENTATION

The design agency should perform an O&M analysis to determine the O&M data required to

support maintenance of the SCADA system by the using government agency. This analysis

should be coordinated with the using government agency to determine maintenance

parameters and O&M data that are available to the using government agency. Typical O&M

data requirements include the following items:

a. System documentation as defined in chapter 10.

b. Minimum spare parts list.

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c. Recommended spare parts list.

d. Recommended onsite test equipment.

e. Recommended O&M training.

f. Recommended O&M to be performed by contract.

4.3.6 SPARE PARTS STOCKING

An adequate on-site stock of spare parts is essential to obtaining high availability of SCADA

systems.

Reliability calculations demonstrating compliance with “six nines” criteria typically use

repair times based on “replace with spare” which are shorter than those for “repair failed

component”. If on-site stocks are inadequate, actual availabilities will be significantly less

than these calculated values.

a. Minimum recommended stocking levels include the following. These quantities

may need to be increased for components which are used in large numbers in the

facility:

(1) Manufacturer’s recommended spare parts list.

(2) One each of all line replaceable boards or modules.

(3) Six each power and control fuses used in the system.

(4) Tools required to terminate coaxial on fiber optic cables.

b. Specifications should also require that the following be furnished with each system:

(1) Laptop computer loaded with software required to access controllers.

(2) Licenses for all software installed on the system.

(3) Permission to modify program code.

(4) Spare cables for connecting computer to controllers.

4.3.7 TECHNICAL SUPPORT

The design agency should specify functional areas of the operating system and/or equipment

where a technical representative will be furnished by the manufacturer for training, test,

checkout, validation, or pre-operational exercises. Ongoing O&M of SCADA system

software may require technical support from the system vendor or from agency technical

personnel not located at the facility. Commercial SCADA software typically has provisions

for remote modem access that permit this type of support from the vendor’s location or an

agency central engineering group. Such remote access provisions represent a vulnerability to

“hacking” and must be used with great caution. They should be monitored when in use and

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physically disconnected when not in use. PLC suppliers have indicated that they are unable to

provide a firewall that will protect the controller program in the event of unauthorized access

to the HMI processor.

Password protection policies for all SCADA systems, including PLC’s, shall be in

compliance with established DoD policies. The DoD policy is established by the Chairman of

the Joint Chiefs of Staff Instruction (CJCSI) 6510.01 D, Information Assurance (AI) and

Computer Network Defense (CND).

These policies require that the default password that came from the control supplier be

changed when placed into operation at the facility.

4.4 DOCUMENTATION AND CHANGE CONTROL

4.4.1 GENERAL

Complete and accurate documentation is critical to the commissioning and ongoing

maintenance and operation of a SCADA system and should be a high priority of design

contract administration.

a. SCADA system documentation provided by the system designer and/or system

integrator should include the following:

(1) One-line diagrams

(2) Process and instrumentation diagrams (P&IDs)

(3) Sequences of operation

(4) Instrument data sheets

(5) Points list

(6) Loop diagrams or I/O wiring diagrams

(7) Binary logic diagrams

(8) Control schematics

(9) PLC program listing

(10) HMI description (screen prints and database)

(11) Software configuration management documentation

(12) Facility physical and information security policies

b. All SCADA documentation should be furnished in both hard copy and appropriate

electronic format.

Electronic format should be capable of revision; i.e. scanned documents or portable

document format (pdf) files are not acceptable, although pdfs may be submitted as

archive copies in addition to revisable files.

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c. All system documentation for C4ISR facilities should be treated as sensitive and

this applies to SCADA system diagrams and documentation as well. At a minimum,

document security measures should include:

(1) Marking all documents For Official Use Only (FOUO)

(2) Controlling access to documents

(3) Properly destroying outdated or unused documents

4.4.2 SYMBOLS AND IDENTIFICATION

Individual control loops should be identified by loop number following the convention

established by ISA S5.1. Each instrument, actuator and control point should have a unique

tag number incorporating the loop number and identification letters per table 1 of ISA S5.1.

All equipment and instruments should be consistently identified by their complete tag number

on all drawings and points lists.

4.4.3 PROCESS AND INSTRUMENTATION DIAGRAM (P&IDs)

P&IDs should be provided for all mechanical systems. P&IDs should depict all components

of mechanical systems including vessels, pumps, compressors, chillers, heat exchangers,

piping, valves and instruments and the control relationships between them. Symbols used

should comply with ISA S5.1 – Instrumentation Symbols and Identification and ISA 5.3 -

Graphic Symbols for Distributed Control/Shared Display Instrumentation, Logic and

Computer Systems.

4.4.4 SEQUENCE OF OPERATIONS

Written sequences of operation should be provided for all control loops.

a. Sequences of operation should include the following minimum information:

(1) Manual and automatic control modes;

(2) Normal system conditions and modes of operation;

(3) Contingency conditions and modes of operation;

(4) Effect of all operator controls;

(5) Description of all interlocks and permissives;

(6) Identification of failure state of all outputs.

4.4.5 INSTRUMENT DATA SHEETS

Instrument data sheets should be provided per ISA S20.

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Points list

A points list should be provided that includes all real and virtual input, output and control

points.

a. Provide the following information, where applicable, for each point:

(1) System

(2) Equipment

(3) Loop number

(4) Tag number

(5) Controller, rack and slot

(6) Point type

(7) Field location

(8) Range

(9) Failure state

4.4.6 LOOP DIAGRAMS

Loop diagrams define the physical wiring for each loop from each instrument or actuator to

the controller. All field devices, terminal boards, junction boxes, etc. are depicted along with

the signal type and range. These drawings are the basis for verification of all SCADA system

field wiring, instrument calibration, and loop tuning. All devices, terminals, cables and

conductors must be completely identified on the loop diagrams per ISA S5.4 – Instrument

Loop Diagrams.

4.4.7 BINARY LOGIC DIAGRAMS

Binary logic diagrams are flowcharts that depict all discrete logic using Boolean logic

symbols. Logic diagrams should comply with ISA S5.3 – Binary Logic Diagrams.

4.4.8 CONTROL SCHEMATICS

Control schematics show the interface between the SCADA system and the internal wiring of

related equipment such as motor starters, pump control panels, generator control panels, etc.

Proper development of control schematics requires a significant effort on the part of the

SCADA system integrator because the standard drawings provided by manufacturers of these

related system drawings are typically inconsistent in format, symbols and content, requiring

that they be redrafted by the integrator to provide an integrated documentation package.

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Symbols used on control schematics should comply with the previously referenced ISA

standards and ANSI Y14.15. – Electrical and Electronic Diagrams.

4.4.9 PLC PROGRAM LISTING

A documented listing of the complete program of each PLC should be provided.

Documentation should consist of an English-language description of the function of each

logic rung inserted into the listing.

4.4.10 CHANGE CONTROL

All SCADA documentation should include creation date, issue date, revision data, and

revision history in a format that is consistent across all documents. A document database or

spreadsheet should be maintained that provides a current listing of all documents and their

revision status.

a. The database should include the following:

(1) Document Type

(2) Document Number

(3) Page Number

(4) Sheet Number

(5) Title

(6) Current Revision

(7) Revision Date

b. Each submittal of SCADA documentation should include an updated submittal of

the document database. The database should be provided in electronic format and

maintained on an ongoing basis by the facility manager after system commissioning.

All changes made to the system should be promptly reflected by revising the

documentation and the database and distributing copies of the revised documentation

and updated database to the field.

CHAPTER 5

CONCLUSIONS

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5.1 HCLs INFOSYSTEMs SCADA

5.1.1 HCL VERTICALS FOR SCADA IMPLEMENTATION

5.1.1.1 HEALTHCARE SECTOR

SCADA Software can be installed in many hospitals and research facilities in order to

ensure the continuous monitoring of all medical devices providing a steady and controlled

temperature (refrigerators, freezers, ..) and to guarantee the conservation for a long time

of special tissues and materials; any operational abnormal condition is immediately

recognized and filtered according to user settings; in case of persistent anomalies an

alarm is created that, depending on its gravity, can be related with a local signal (siren,

lamp, ...) or broadcast via SMS to a maintenance technician cellular phone; a TCP/IP

network can provide all data related to devices functionality and organic material

conservation to one or more client analysis stations; at defined time interval or at user

request.

HCL's current Focus areas

HCL offers end-to-end turnkey solutions to our customers in the 'Healthcare' domain.

Listed below are the areas on which we provide our services as a System Integrator.

Hospital Management Information Software (HMIS) Application:

Design, Development & Customization of HMIS application as per approved SRS

& BPR document.

Deployment of Integrated HIS with Data mining tool.

Data Migration/Porting from Existing/Legacy Application (HIS)

Support during Warranty

5.1.1.2 INFRASTRUCTURE

Airports

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http://www.hclinfosystems.com/si_infra.htm#air


An advanced Supervisory Control and Data Acquisition (SCADA) system

can be used at the Airports to control runway lighting. Unlike conventional

airport control applications, the SCADA system can be directly operated

from the airport's control tower.

With increasing passenger volume and stricter legal provisions, baggage

handling at airports requires maximum logistical performance. SCADA

Systems can be used to automate and control the baggage management

system at any airport in a very efficient manner.

SCADA System can also be used for the airport fuelling system that

handles barge and ship receiving, mainline pump control, tank inventory,

valve manifold control, ESD, jetty mainline metering/proving, interface to

leak detection system, distribution pump control, hydrant and truck rack,

fire and safety systems.

Railways

Indian Railways can use SCADA system for monitoring and control of Traction

Power system which is responsible for providing power to the electric trains. The

following railways specific applications can be implemented:

Auto Fault Localization

CB Tripping reports

Power Block

Maximum demand handling

HCL's current Focus areas

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http://www.aberle-automation.com/en/

http://www.aberle-automation.com/en/

http://www.engineeringtalk.com/guides/scada-system.html


IT enablement through solutions on reservation terminals, setting up Data centres,

creating WAN networks, development and rollout of e-Procurement solution for

optimizing the stores operations and ease to vendors, Setting up Automatic Ticket

vending machines infrastructure for unreserved ticketing system, Providing energy

management solutions for reducing energy consumption.

5.1.1.3 HOMELAND SECURITY

SCADA Systems can be used for the Homeland Security in the following areas:

Fleet Management

Fleet management is an all-inclusive urban public transit management solution which

enables you to plan your operations on strategic level, model routes and schedules

while providing you with intuitive insight into the status of routes in progress – just

what you need to improve the efficiency and timeliness of daily operations.

City Surveillance

It is the process of monitoring the behavior of people, objects or processes within city

for conformity to expected or desired norms in trusted systems for security or social

control. The purpose of the project is to investigate and generate better public

understanding of the practices, programs and systems used to screen in order to assess

the scope and depth of their concrete impacts on civil liberties, privacy rights and

mobility rights. This basically makes the security personnel to be OMNIPRESENT in

places where they do not need to be physically.

Red Light Violation Detection:

This system includes inductive loops which are placed in a roadbed to detect vehicles

as they pass over the loop by measuring the vehicle's magnetic field. The simplest

detectors simply count the number of vehicles during a unit of time (typically 60

seconds ) that pass over the loop, while more sophisticated sensors estimate the speed,

length, and weight of vehicles and the distance between them. As the right light is

violated by the person, it will be highlighted to the control room.

5.1.1.4 TRANSPORT MANAGEMENT SYSTEM

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SCADA System is important for maintaining good traffic and road conditions,

improve the monitoring of traffic flow, as well as rush hour traffic management,

safety signs and emergency alarm systems.

Firstly, the SCADA System has to provide a fast and reliable, high quality, data

transfer solution over long geographical distances. The second key factor was to

overcome the mountainous area around the Indian terrain. Wireless SCADA System

is the best and the most cheap option for the implementation of the SCADA System.

SCADA System can also be used for keeping a track of the efficient management of

the Toll Plaza.

5.1.1.5 POWER SECTOR

HCL Offerings to Power Field Automation to address IT automation of

commercial, technical and operational functions & ERP for corporate level

functions

Energy Audit services

Advance Metering Infrastructure

Smart Grid Technology

Automated Meter Reading Systems

LT SCADA

5.2 PROJECT PLANNING AND IMPLEMENTATION

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5.2.1 GENERAL PLANNING

This chapter has two objectives: to outline the basic process and key issues in planning,

design, construction and commissioning of a SCADA project; and to summarize key points

from the rest of the technical manual in a way that can serve as a checklist for the facility

manager during the implementation process. All project management methodologies involve

breaking a project down into phases, usually with approval gateways at the end of each

phase. A further breakdown into tasks is used to produce a work breakdown structure (WBS).

Typical Project Management Phases of a Typical SCADA project

Identification.

Initiation.

Definition.

Design.

Acquisition.

Project Closeout.

5.2.1.1 IDENTIFICATION

1. Identify need

2. Prepare Preliminary estimate. Costs to within (-50+100%)

3. Obtain approval for funds or resources to proceed to the next phase. This phase is

normally informal, and does not require a lot of resources

The identification of need may have arisen out of some other activity e.g. development of

Corporate Strategies, review of plant condition, or from the aftermath of coping with a

major incident.

Typically SCADA will be required for some of the following reasons:

To reduce power costs.

To reduce staffing.

To reduce future capital requirements.

To improve level of service.

To avoid environmental incidents.

To comply with regulators requirements.

It may not be possible to run the business without SCADA.

To obtain a competitive edge

To replace an existing aging system

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Often SCADA is not rigorously justified but simply required by management as being

part of the way management want to run the business. This may be the best way, as often

substantial resources are consumed attempting to provide a justification for SCADA, and

it is extremely common that after the system is installed, unexpected benefits arise that

overwhelm the originally predicted benefits. In addition, the benefits may arise because of

SCADA and several other key initiatives which are proceeding in parallel eg business re-

engineering and it is impossible to separate the benefits of SCADA from the benefits

arising from other initiatives.

In any event the decision as to whether to proceed with SCADA will often arise directly

out of the management philosophy. A progressive management will create a climate in

which staff will actively seek ways in which to improve the productivity of the

organisation. In other organisations, every such proposal will be treated with sceptism.

The key to this is for management to have developed a vision of how they want the

organisation to run in the future. If they have this, then it is likely this will encompass

automation, SCADA etc in order to become more efficient.

This phase is a crucial one in any SCADA project. It is here the business case for the

project is fleshed out to determine initial feasibility. The scope of the project is essentially

defined at this point. For example if you do not look at the benefits of use of off peak

electricity tariffs to reduce pumping costs, it is unlikely you will include this in the

SCADA project at a later date.

5.2.1.2 INITIATION

1. Validate project need

2. Establish concepts and scope

3. Establish Summary Work Breakdown Structure

4. Conceptual estimate (-30 to +50%)

At this stage some small amount of funding has been approved to undertake the

preliminary investigations, and prepare a preliminary project management plan. It will be

necessary to firm up on the scope, identify the main technologies to be used, and gain

agreement and approval of the potential users of the system. Sufficient work needs to be

done to enable a cost estimate to be prepared that is accurate to within -30 to +50%.

Similarly sufficient work needs to be done to establish the benefits of the system to

enough accuracy to convince management to give approval to proceed to the next phase.

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A common mistake at this point is to go into too much technical detail. It is surprising

how often detailed I/O listings for example are produced at this stage. The work at this

stage should be concentrating on the functional (or user) requirements, and the

technological requirements should only be looked at to the point of enabling cost

estimates to be produced (and only to within -30 to +50%).

The emphasis should be on ensuring that there is a common understanding within the end

users of what functionality the system will provide. If the system is being introduced to

improve productivity, then it is important that user management understand how they can

use the SCADA system to change work practices.

It is important at this stage that the project team include someone from the end user part

of the organisation to begin to build a sense of ownership of the system. This involvement

should continue throughout the project so that the system can be handed over on

completion to an operator who is committed to using it to its full potential.

Although the work should be concentrating on the functional requirements, it is necessary

to keep an eye on the technical capabilities offered by suppliers as "off the shelf" in your

industry. Restricting the amount of custom software that the system will require is

probably the biggest single action you can take to reduce costs, risks, and minimise the

project timeframe.

Some preliminary idea of the contracting strategy will have been developed e.g. to use

consultants, to use design and construct contracts (recommended) and so on. This can

have a substantial impact on costs and in particular a decision to use consultants requires

funding to proceed to the next phase.

The decision to use consultants must be taken with care. A consultant may have

preconceived ideas as to how the project should be managed. Some decisions such as the

use of design and construct contracts may not be in consultants interests, as they may

wish to carry out the design for example. They can normally point to a track record of

"success" for their approach. Care must be taken in the selection of the consultant to

ensure that you get what you want. Therefore you must be clear as to what your priorities

are before selecting the consultant. Do you want to take a low risk approach to your

SCADA acquisition to avoid purchasing an expensive boat anchor. If so, then an

approach which stipulates extensive testing at all phases of the contract may be best for

you. Involvement of consultants in the design gives a second perspective. Most

consultants are comfortable with this approach (low for them too). If however you want a

low cost solution, and are comfortable with the technology, then design and construct

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contracts are for you. Be sure to select a consultant who is familiar with this contracting

approach.

5.2.1.3 DEFINITION

1. Appoint key team members

2. Establish a preferred option (if not already done)

3. Develop baseline and schedules for project management

4. Assess risks

5. Studies (eg value management, economic)

6. Develop contracting strategies Develop implementation strategies

7. Definitive estimate (-15 to +25%)

8. Go/No-go decision

At this stage the project is starting to get serious. A project team is in place, and

organisational and reporting processes are established. The scope is being finalised

(which sites, which functions, etc). Firm decisions are being made on contracting

strategies such as design and construct, etc.

The work at this stage should still be concentrating on the functional (or user)

requirements, and the technological requirements should still only be looked at to the

point of enabling cost estimates to be produced) and only to within -15 to +25%). Site

audits should normally be conducted at this stage to avoid nasty surprises in the future.

It is important at this stage to firmly identify the benefits of the system, and to develop

"benefit realisation plans". These plans will identify exactly how the proposed benefits

will be realised ie what changes will be made to existing processes to achieve the

intended benefits. This will give management confidence that the investment is going to

be worthwhile.

As the project is about to proceed to design, it is important that the contracting strategies

are firmed up. The trends are towards increasing use of design and construct contracts.

These are highly recommended, and will reduce costs substantially. In the past it has been

common to engage a consultant (or to do "in-house") to do the design, and then tender for

a system based on this design. This meant the SCADA supplier was told how the system

was to be put together, and in effect he was somewhat absolved of responsibility. If it

didn't work, then it was an additional cost for him to fix up someone elses mistakes.

Bundling all parts of the system into a single contract (communications, instrumentation,

RTU's and SCADA system ) and using a design and construct approach can substantially

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reduce costs and increase the chance of the project being delivered on time. In effect you

are minimising the numbers of interfaces between designer and supplier, between

communications and SCADA, etc, and allowing the SCADA supplier to organise the

project in the most efficient manner for him. It is important that if you are going to use

design and construct contracts, you still don't do the design. Your contract for example

should not mandate the communications design to be used, but should lay down some

guidelines eg must be radio, x numbers of RTU's per repeater, reliability required, must

have diagnostic facility built in, and so on. The so-called "go-no go" decision at the

completion of this phase is probably the last serious chance that the project can be

stopped.

5.2.1.4 DESIGN

Design Reviews

Definition Report Reviews

Funds Justification

Design Estimate -10%+10%

If using a design and construct approach, then this phase normally involves preparing the

specification, and developing tender evaluation plans. It is probable that a prequalification

phase could proceed at this time to overlap the tender preparation, and the

prequalification phases. (Prequalification is used to preselect reputable tenderers who

have a proven track record in this field, and should always be undertaken.

Prequalification allows the selection of potential suppliers before they have submitted a

priced quotation, ie on the basis of their capability and experience. Without

prequalification you run risks of having to reject inappropriate tenderers in the tender

evaluation, and if your tender documents are not well prepared you can wind up in a

difficult position.)

A key decision in the tender documents is the extent of testing specified. In the 1980's

contracts routinely specified Factory Acceptance Tests, Commissioning tests, Site

Acceptance tests, and so on. This was required because the technology was new,

expensive and the separation of design and acquisition meant there was a great deal of

customisation. The modern approach is to use design and construct contracts, and pay for

performance. A functional test at the end is all that is required from the perspective of the

purchaser. If the supplier wants to run factory acceptance tests, then that is his business. I

have been told by one supplier that 80% of contracts no longer specify factory tests.

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5.2.1.5 ACQUISITION

1. Specification and working drawing preparation

2. Pre-construction estimate(after receipt of tenders) -5%+5%

3. Procurement

4. Construction

5. Off-site fabrication

6. Commissioning

7. Practical completion

Under design and construct contracts, all the detailed work is carried out by the

supplier(s). The vendors basically resist all suggestions to split the work. e.g. one contract

for the communications network, one for the SCADA. Every time you split the work, you

are taking the risks. If the radio system does not perform, are you sure the radio contractor

is responsible? If it meets your specification, then you have problems with both contracts.

The key players at this stage are

The supplier's project manager

The contract superintendent

The project manager

The success of the project will depend on all three performing.

In this phase the project will go through a number of phases:

Design (culminating in a design report from the supplier for approval)

Configuration of SCADA master software

Development of custom software

Assembly of RTU's in factory, and testing

Field installation of instrumentation, communications, and RTU's

Commissioning

Site acceptance testing

Customer training

Subsequent to this, the system normally has a defects liability period, and beyond that

maintenance must be contracted for.

5.2.1.6 PROJECT CLOSEOUT

1. Project Final report

2. Closeout of any outstanding defects and nonconformities

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3. Final completion

4. Post implementation review (PIR) as required

The post implementation review is something that is probably rarely undertaken, but

should be a mandatory part of all projects. It is important that an assessment be made of

how well the system is meeting the organisations needs as they are now understood. What

needs to be done now to remedy these "faults"? Remember as far as the contractor and

project team are concerned, these are not faults - the system has been delivered as

specified.

If it is likely that your organisation will be undertaking future SCADA projects, then the

PIR can be used to document any lessons learnt to avoid repeating the same mistakes.

5.2.2 PROJECT TEAM SELECTION

The following key personnel or their representatives make up the recommended project

implementation team. Although time commitment and degree of involvement will vary with

the stage of the project, all team members should be involved from the planning stage and

remain in the communications loop throughout the duration of the project. It is a mistake to

delay the involvement of maintenance staff or the commissioning agent until the end of the

design stage or the construction stage; making changes at this late stage based on their input

will undoubtedly impact schedule and cost.

a. Project manager

b. Facility manager

c. Operations and maintenance manager

d. Controls technician

e. Mission commander

f. Utility system designer(s)

g. SCADA system designer

h. Physical security specialist

CHAPTER 6

RECOMMENDATION

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6.1 HCL STRATEGY FOR SCADA

The far-reaching impact of new technologies and quantum change in the way companies are

restructuring and streamlining business processes are transforming the global Supervisory

Control and Data Acquisition (SCADA) market. The worldwide market for SCADA systems

for the oil and gas industry is expected to grow at a compounded annual growth rate (CAGR)

of 9.3% over the next five years. The market was nearly $850 million in 2007 and is

forecasted to be over $1.3 billion in 2012, according to a new ARC Advisory Group study.

The latest SCADA systems encompass a new generation of technology components. These

new generations of SCADA components are easier to integrate and provide vastly improved

capabilities and functionalities. SCADA systems are now being considered in a wide range of

applications and true business processes for a variety of purposes, including business

performance management thus providing ample opportunity for a new player to exploit the

profits in the different verticals related to this sector.

6.1.1 MARKET OVERVIEW

ARC has analyzed the SCADA market by geographic region, project size, and component

type, including hardware, software, and services. The worldwide SCADA market is

expanding as upstream development and new production occurs in remote and newly

developed regions, and the existing energy infrastructure utilizes the enhanced functionalities

of SCADA to improve its core business processes of managing global disparate assets.

Global demand for energy in the form of oil and gas is driving both exploration and

production activities of the oil and gas industry. New SCADA technology enables energy

companies to conduct their business in remote and increasingly hostile environments.

Exploration activities and new production fields are developed, monitored, controlled, and

optimized globally using advanced technologies including SCADA.

The energy sector in developed regions is using SCADA as a core technology to support new

business processes in response to changing industry dynamics. Developing regions are seeing

increased exploration and production activities for which SCADA is used to link the

geographically separated facilities. SCADA will be at the core of technology adoptions as the

world economy strengthens and as the industry moves to improve business processes to meet

growing energy demand and economic challenges. In both the upstream and midstream

portions of the oil and gas industry, SCADA will play an increasingly important role in the

real-time dissemination of knowledge and management control of assets.

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6.1.2 STRATEGIES FOR SUCCESS

Strategic planning for energy investments and the transition of the operation and management

of existing assets to incorporate new advances in technology is critical. Challenges and issues

the energy industry must address include:

Tightening integration of business processes to midstream oil and gas operational

systems such as SCADA;

Migration planning to enable efficient transition of legacy systems to meet new

demands from all stakeholders;

Updating and automating older fields, the coming of age of the digital oilfield, and the

proliferation of intelligence to all levels of physical assets on a global basis;

Implementation of Asset Lifecycle Management programs and regulatory compliance

initiatives such as integrity management, and

Increasing concern over security and environmental issues.

Energy industry operating firms are seeking ways to become more responsive to the demands

of all stakeholders. SCADA suppliers can play a major role by providing solutions. SCADA

systems are an enabling technology that can help to change the way energy companies

restructure business processes to respond to market dynamics with real-time knowledge flow.

With change come opportunities. There are a number of strategies that ARC recommends to

suppliers and users of SCADA systems and components to maximize their potential in the

changing marketplace. Here is a closer look at three of the strategies.

6.1.2.1 INTEGRATION OF BUSINESS AND MIDSTREAM SYSTEMS

Suppliers must develop a SCADA system that can be fully integrated with corporate business

systems. Energy companies are increasingly looking for a total solution, integrating SCADA

systems with other systems at the plant level and with higher level corporate business

systems. SCADA system design must go beyond plant systems that are open, modular, and

provide for simplified connectivity to other control systems.

For a SCADA system to be marketable, it is becoming necessary to be able to communicate

with business systems throughout a company. These systems include an ever-expanding

number of outside systems that typically reside in an extended supply chain. To be

competitive, suppliers must show how their SCADA systems can provide appropriate real-

time data to systems across this extended supply chain, both now and in the future.

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SCADA has evolved into a more robust technology capable of serving as the channel for

information flow to a number of higher level applications, including supply chain

applications. The midstream segment of the oil and gas industry, with its focus on transport

(pipelines), is particularly supply chain-centric. SCADA, long associated with operations

management of pipelines, must now have the functionality to provide supply chain systems

with real-time information.

Just as the upstream and downstream portions of the energy industry have become more

sophisticated in integrating operations management with business processes, so too will the

midstream portion. The supervisory control portion of SCADA is already transitioning to

better accommodate a collaborative production management approach. This collaboration is

closely tied to supply chain and other business processes, with linkage to upstream and

downstream industry workflows.

Most of the issues that pipeline management programs address may also be viewed in the

context of creating an efficient supply chain. Functions such as custody transfer, accounting,

and transactional management, batch tracking, nominations, and terminal management all

reside in both the operations management and supply chain domains.

There's also increasing need to operate the midstream portion of the industry as a value-add

business and to generate increased revenue from existing assets. Business drivers for

implementing supply chain management initiatives include clean fuels regulatory issues, an

increasing product mix, increasing market volatility, and tightened regulatory constraints.

The net result is a more complex set of scheduling and inventory management issues that are

forcing the adoption of more efficient business processes.

Emerging SCADA systems should have the capability to be both fully compatible with IT

and to communicate with internal and external enterprise systems.

They should also include an expanding number of applications that typically reside in the

extended supply chain, such as:

Strategic network planning

Replenishment planning/inventory management

Distribution planning and optimization

Scheduling movements

Execution management

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6.1.2.2 INITIATE AND MAINTAIN MIGRATION PLAN

When evaluating the lifecycle of a SCADA system, it's important to note that the components

that comprise a complete system have distinctly different lifecycles. While some

owner/operator firms have RTUs that are more than 25 years old, it is doubtful the software

applications that connect to business or IT systems would be viable for that length of time.

Migration planning is the interface for merging the automation and IT worlds. There are a

number of perspectives and issues to consider. Software is continually being developed to

reflect the changing demands of business processes and workflows. Companies must employ

a SCADA system that provides a flow of data and information to support these evolving

workflows. This often requires an upgrading of SCADA systems. Proper migration planning

is critical.

The principal issues are deficiencies in the functionality of legacy systems, component

obsolescence, and increasing security concerns. SCADA's role is changing dramatically in

response to changing business processes. More information is demanded more frequently by

additional functional groups, both internal and external to an enterprise.

Legacy SCADA system components may still function as designed. However, new

operational and business processes often require new, higher-level functionality not included

in the original components. This makes SCADA migration planning critical.

6.1.2.3 PROFESSIONAL CERTIFICATION

HCL should look for a comprehensive SCADA professional's certification program that

enables the measurement of SCADA knowledge, skills and abilities, and also serves to

enhance the standing of SCADA professionals in the industry.

The objectives of a certified SCADA professional's program should seek to:

Provide a means for an individual or organization to assess their skills against a

recognized and appropriate industry standard.

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Establish a recognized standard that ensures anyone who has access to a live SCADA

system for the purposes of support or administration has achieved a specified level of

competence and is aware of the best practices for performing specific tasks in a safe,

productive and professional manner.

Certify that employees are properly prepared for the professional responsibilities of

successfully supporting a SCADA system environment and fully understand the

impact of their actions on the safety and reliability of the operation.

6.1.2.4 SCADA SYSTEM CONSULTANCY

HCL SCADA consulting services can accelerate the productivity of the prospective channel

partners as well as our prospective end users. HCL Quality Process Consulting is a niche

service offering as a part of the suite of Transformation Services. HCL Quality Process

Consulting offers process improvement services that span the entire continuum ranging from

Process definition, implementation & training to Process assessments for Model and non-

model based improvement initiatives. HCLs System Integration team has an impressive track

record, offering first-hand experience working for channel partners in mission-critical

industries including oil & gas, power, transportation and water. Thus HCL can become only

the second organization in India after Reliance to provide both IT Consultancy and SCADA

Consultancy to the end user.

Custom application development

HCLs consulting team would have a wealth of vertical industry experience that they

can bring to bear on partner and end user efforts to develop specialized applications.

Our consultants can help customers develop the specialized software in applications

such as power generation and distribution, gas and liquids pipelines, rail and metro

transportation and water/wastewater applications.

HCL’s Consulting team will be leveraged to provide Quality Consulting Services to HCL’s

clients. HCL’s Quality Consulting strength lies in the skills and rich experience of our

consultants, who have experience in Energy sector. They bring with them practical

implementation experience of various processes that best fits client’s SCADA environment.

6.1.2.5 STRATEGIC ALLIANCES & ACQUISITIONS

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HCL can form a Global Strategic Alliance with some of the leading SCADA players and thus

combine its IT expertise with the SCADA domain knowledge of the leading players to

provide an end to end solution to the prospective customers.

As part of this alliance, HCL can focus on providing full-solution system integration services

in established markets, while the prospect partner will be responsible for the marketing and

sales of both companies HMI/SCADA products.

However it needs to be ensured that the target markets for both companies are oil and gas

production, water and wastewater, power and utilities industries, and environment change

tracking industry.

Some of the potential partners of HCL in the SCADA domain are listed below:

ABB

Siemens

Larsen & Toubro

GE

Honeywell Automation India Ltd

ABB

Siemens

GE

Honeywell

Rockwell Automation

19

16

10

5

5

Indian Market Share

HCL can also acquire a pre established small firm in the SCADA domain and thus be assured

of gaining a sure entry in to the market and provide an enhanced end to end solution to the

established clients. By doing this HCL can actually showcase its capability in the SCADA

domain and this will help HCL to acquire new projects.

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10 15 20 25 30 35 40 45 50 550

10

20

30

40

50

60

70

ABBSiemensGEHoneywellRockwell Automation

Quality of Implementation

High

Pric

e of

Impl

emen

tatio

n

Fig: Perceptual map showing the potential entry point in the SCADA domain

6.1.2.6 HCL – OUTSOURCEE & OUTSOURCER

Scalability is a constant challenge in IT. Acquiring new capacity may necessitate expansion

of IT staff, software licenses, floor space, power and more. Contracts change. Markets shift.

And managers face the possibility of either constantly buying or underutilizing IT resources.

How can players across the industry keep SCADA data and other mission-critical

applications safe without wasting money? To stay out of the fire-fighting mode it is better for

niche SCADA players to outsource functions like managing data centres, monitoring basic

security and ensuring fundamental network and application performance. HCL thus can

provide turnkey IT infrastructure to a number of energy-related companies.

HCL can provide the following advantage to the outsourcing company:

Manage risk cost-effectively. Providers of outsourced IT infrastructure typically offer

Service Level Agreements which guarantee a certain level of data and application

availability for a set price. Operators are assured that IT best practices are applied to

their infrastructure without investing in the latest and greatest of everything.

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Ensure system security without distraction. From auditing traffic patterns to

maintaining security patches to firewall management, as well as the physical aspects

such as power redundancy and redundant router configurations. Enbridge handed over

security functions to focus on the strategic capitalization of its SCADA data.

On the other hand HCL can also outsource its SCADA operations to some of the already

established players in the market. However every operator is not a prime outsourcing

candidate. Companies with little inherent fluctuation in SCADA resource demand are less

likely candidates. While looking for a SCADA firm HCL should look for the following:

Visit the data centre and talk to the staff, not just the salespeople. Test their

knowledge. Explore the environment and infrastructure--and how long they've been in

business.

Get references from the pipeline industry. A glossy brochure with a compressor

station on the front doesn't mean they understand what pipelines do.

Don't rush into a Service Level Agreement. Define what you really need. Get the

details of what they're guaranteeing, how it will be measured and what penalties apply

if you step outside the lines.

Get grassroots support. Make sure non-executive SCADA staff understands that these

measures will help them, not undermine them. Involve them in the selection process.

Draft up an exit strategy, just in case.

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Final Report

Documents

typical scada system

scada system justification

working scada system

scada chapter

scada personnel

term scada

entire system

data acquisition scada