Industrial asset optimization overview slideshare

Industrial Asset OptimizationImprove asset uptime and service profitability through M2M design and deployment support, remote monitoring, data management, prognostics and in depth analytics

Gianni GiacomelliSenior Vice President, Genpact

David Petrucci Vice President, Industrial Solutions, Genpact

PROCESS • ANALYTICS • TECHNOLOGY 2© 2014 Copyright Genpact. All Rights Reserved.

A Global Business Process Services Leader: Process Transformation and Outsourcing, Analytics, Technology

We help leaders of some of the largest enterprises transform and run their processes and operations, including the very complex and industry-specific

What we do

Unbiased, agile combination of process science, related technology and analytics limits upfront costs and enhances future adaptability

Right critical mass:

• we are large (64,000+ global staff) but our solutions appropriately flexible

• our top management is directly involved in our client partnerships

How we do it

Our impact

We help enterprises to be more competitive by becoming more intelligent: adaptive, innovative, globally effective and connected…

…by enabling tighter management of costs, risks, regulations, and supporting growth

The results: US$22B* of impact for 800+ global clients


THE CHALLENGE


OEMs face financial and operational risks in the absence of an effective industrial asset optimization program

Difficult service monetization

• Difficult to transition from product to service-centric organization• Inaccurate installed base data and inadequate analysis limits service

contract sale/renewal up to 20% of services revenues

Higher service costs

• Limited remote monitoring/diagnostics leading to high field fixes

• Suboptimal field force scheduling, skill set matching

• Limited parts/tools availability due to inaccurate service forecasts, unplanned shutdown, limited triage across warehouses etc.

Lower asset uptime

• Unscheduled asset downtime impacts end-customer satisfaction and OEM’s market share. This provides untapped opportunity to maximize utilization by end customer

Product differentiation

• OEMs find it hard to create differentiation without strong value and performance engineering to create increasingly reliable machines

• Usage of sensor data by end customer to create innovative service lines is possible

Regulatory risk management

• OEMs and operators need to overcome increasing number of environment (e.g for Oil & Gas) and operational (e.g NERC for energy equipment) regulations


Similarly operators risk experiencing productivity loss and costly service operations

Revenue from operations

• Unscheduled asset downtime is undesirable and results in overall productivity loss (e.g. Oil & Gas, wind energy, automotive, mining, etc.) and revenues (e.g. healthcare, transportation)

Higher service costs

• Customer is significantly inhibited in its ability to negotiate service contract price based on the absence of operational data insights and SLA violations, resulting in higher costs getting agreed and paid

• Limited analytics of remotely monitored operational data results in non-coordinated preventive maintenance activities, non-availability of spare parts in inventory and higher than desirable operational disruption

Risk management

• Operators need to better manage SLA related risks with the customers instead of routinely following OEM’s equipment maintenance programs

• End customers/ operators need to overcome increasing number of environment (e.g for Oil & Gas) and operational (e.g NERC for energy equipment) regulations

• Equipment operation data is regarded “sensitive” by end-customer/ operators and requires adequate data security measures


THE SOLUTIONS


Exponential potential exists by combining prognostics with service contract management…

Reactive• Extensive Damage• High Cost• Most Downtime

Predictive• Some Damage• Moderate Cost• Moderate Downtime

Optimized• New revenue • Minimum Damage• Minimum Cost• Planned Downtime

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PredictiveModeling

Statistical Analysis

AlgorithmAutomation

Data Integration

Process optimization

Reporting

Cu

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Integrated approach

Traditionalapproach

Process maturity


For example, service revenues can be enhanced by up to15%...

Outcome Key areas Value drivers and Key levers

Increase service revenue by 10-15%

New Service Offerings

Providing different tiers of service like uptime assurance, first time fix etc.

Offer Parts Optimization Solution to operators (through accurate failure prediction)

New Contracts

Better installed base (IB) coverage by increasing IB accuracy, IB growth and targeted lead generation

Effective bid and prospect management and win-loss analysis ensuring higher win rates

Better contract pricing through reliability based failure forecasting and past usage history

Existing Contracts

Higher contract renewals and better pricing by increasing IB accuracy, past usage history based proposals etc.

Cross-selling opportunities through detailed understanding and monitoring of customer accounts

Reducing revenue leakage by capturing T&C’s correctly and addressing missed billing opportunities

Predictive Optimized

Improvement potential

10-15% 15-20%

8-10% 10-15%

8-10% 10-12%

5-7% 8-10%

15-20% 20-25%

5-8% 10-12%

7-8% 9-10%

4-6% 6-8%

8-10% 12-15%Overall


…and service cost can be reduced by up to 10%

Outcome Areas Value Drivers Levers

Service Cost Reduction by 8-10%

Field Service Field service optimization

• Reduced emergency dispatch• Centralized field and parts

supplier team

Batch service scheduling

• Prognostics based scheduling• Consolidation between preventive

and reactive visits

Contact Center

Centralization • Consolidation of service operations back office

Offshoring • Offshore L0 and L1 monitoring/ support

Parts Management

Parts cost • Separate RFQ for service parts

Parts availability • Dynamic forecasting• Part pooling at warehouse

Inventory optimization & turnover

• Triaging multiple warehouses• Obsolescence liquidation

Kit configuration & optimization

• BOM drill down analysis

Predictive Optimized

Improvement Potential

8-10% 10-12%

15-20% 20-25%

8-10% 10-12%

5-7% 8-10%

10-12% 12-15%

5-6% 7-8%

4-5% 5-6%

10-15% 20-25%

6-7% 8-10%Overall


4C framework for an optimized industrial asset management function

Structured

Unstructured+

Automated Connectivity Monitoring

Service Cost Optimization

• Field service management

• Parts management

Service Revenue Enhancement

• Installed base management

• Service contract management

• New service lines

DATA

CustomerInternalNetwork

IP SEC Tunnel

Internet

Customer Network Server Customer

Provides Public Routable IP for Connection Via VPN tunnel

Firewall

Internal Network

Prognostics

Performance engineering

Reliability based failure forecasting

Failure mode analysis

Early wear and tear detection

DW

ETL

BIG Data?

Data QualityCollation & Segregation

Asset Reliability

• Reduce unplanned downtime

• Reduce financial and operational risk

• Less product failure rates

End client utilization

Algorithms, Rules, Alerts

Model free/Model based

Self learning model/rule

Test and monitor connectivity Collation & Segregation

Connect Collect ControlCompute

Build robust and secure infrastructure for data gathering, rule based filtering and storage

Enable proactive maintenance, engineering interventions and streamlined operating practices

Utilize big data protocols to gather, filter and store data

Derive actionable insights from data

Remote Monitoring & Diagnostics


Case exampleChallengesClient Solution and Results

A leading Aero

turbine OEM

Remote Connectivity

• Connectivity solution for globally installed assets• Scalable and flexible solution for different controls systems• Cyber secure NERC compliant solution design and deployment• Legacy process improvement by 90% - TAT reduced by 3 months

Data Quality

• 24x7 monitoring of remotely connected assets• Remote trouble shooting for reliable connectivity• Data quality metrics improvement by 40%• Sustained connectivity uptime to 95%

Data Management Automation

• Implement automation for data management in the asset health center

• Design algorithms for anomaly identification and alerts automation

• Drive automation in monitoring and diagnostics process• Achieved $2 million savings thru automation

Prognostics Model

Development

• Rule based sensor health check process implementation• Develop physics based model to enable part load performance

monitoring• Loss attribution and degradation analysis


CONTACT GENPACT TO EXPLORE THE “ART OF THE POSSIBLE”


About Genpact

Genpact Limited (NYSE: G) is a global leader in transforming and running business processes and operations, including those that are complex and industry-specific. Our mission is to help clients become more competitive by making their enterprises more intelligent through becoming more adaptive, innovative, globally effective and connected to their own clients.

Genpact stands for Generating Impact – visible in tighter cost management as well as better management of risk, regulations and growth for hundreds of long-term clients including more than 100 of the Fortune Global 500. Our approach is distinctive – we offer an unbiased, agile combination of smarter processes, crystallized in our Smart Enterprise Processes (SEPSM) proprietary framework, along with analytics and technology, which limits upfront investments and enhances future adaptability.

We have global critical mass – 62,000+ employees in 24 countries with key management and corporate offices in New York City – while remaining flexible and collaborative, and a management team that drives client partnerships personally.

Our history is unique – behind our single-minded passion for process and operational excellence is the Lean and Six Sigma heritage of a former General Electric division that has served GE businesses for more than 15 years.

For more information, visit www.genpact.com. Follow Genpact on Twitter, Facebook, and LinkedIn.

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Thank You

Gianni.giacomelli[at]genpact.com

David.petrucci[at]genpact.com

www.genpact.com/home/solutions/industrial-solutions/industrial-asset-optimization

http://www.genpact.com/home/solutions/industrial-solutions/industrial-asset-optimization

http://www.genpact.com/home/solutions/industrial-solutions/industrial-asset-optimization

Industrial asset optimization overview slideshare

Business

service revenues

service contract management

service profitability

copyright genpact

data management

limited analytics

service contract price

inaccurate service forecasts