21 st – 22 nd August, 2008 Hilton Opera Hotel Hanoi, Vietnam Managing Your Plant Information Managing Your Plant Information Assets! Assets! Kevin Stanley Kevin Stanley Executive Vice President Executive Vice President – – Americas and Asia Pacific Americas and Asia Pacific
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21st – 22nd August, 2008Hilton Opera Hotel
Hanoi, Vietnam
Managing Your Plant InformationManaging Your Plant Information
Assets!Assets!Kevin StanleyKevin Stanley
Executive Vice President Executive Vice President –– Americas and Asia Pacific Americas and Asia Pacific
Process, Power & MarineAbout ARC Advisory Group
Established in 1986
80 Employees
Global: US, UK, Germany, Japan, China, India
Focused on Manufacturing and Supply Chain
Sample of Manufacturing Company Members
Process, Power & MarineAgenda
Why Do We Need Better Plant Information Management (PIM)?
Why Don’t Companies Address This Issue?
What is Needed to Solve the Problem?
A Better Model for Plant Lifecycle Management (PLM)
A Better Understanding of Plant Information Management
An Appropriate Plant Information Management Strategy
How Can You Justify this Investment?
Key Takeaways & Recommendations
Process, Power & Marine
The Challenge/OpportunityPoor Plant Information Management is Costly!
A 2004 NIST study estimated the annual losses due to the lack ofinformation interoperability within the North American Capital Projects Industryto be $15.8B (4.2% of installed asset cost). Almost $10B of this isowner/operator losses in the Operate and Maintain Lifecycle Stages (2.7% ofinstalled asset cost = 2.7% ROA penalty). .
Other studies with EPCs and O/O pegged this loss at 3% of revenues. For amodern 100,000 bpd refinery this would be approximately $60M/year
Maintenance studies consistently find “wrench time” to be 25-30%, due topoor access to information, waiting for parts, poor coordination withoperations, etc. activities.
EH&S Compliance today demands:
Complete, Accurate information for all assets
Proper Operating and Safety procedures
Complete histories of how assets have been operated
Much more than money is at Risk!
Process, Power & Marine
Why are we in this situation?Traditional PLM Models Encourage Poor PIM
Operate Maintain
EPC O/O
Design – Creates significant Asset Information. Not correlated
Source & Build – Vendor Asset Data / As-Built Data. Poorly managed
Commission – Significant Data Duplication and Handover issues
Operate Maintain – Multiple record sources, on-going changes
Process, Power & Marine
Why are we in this situation?Why Does This Cause Bad PIM?
Doesn’t recognize Plant Asset Information as a valuable Asset
Doesn’t show PIM contribution to other lifecycle activities
Ignores modifications and revamps
Ignores Interdependencies between activities
We Need a New PLM Model to Address These Issues!
Operate Maintain
EPC O/O
Process, Power & Marine
What is Plant Lifecycle Management?Life Cycle of A Capital Plant
Conceptu
al
Desig
n
Ram
p-U
p
Opt
imizat
ion
Det
ailed
Engine
ering
Wear/
Obsolescence
Source/
Build
Test/Commission
Retire FromOperation
Sell/
Rem
ove
Hands-on
Training
Pro
duct
Valid
atio
n
Identify
Opportu
nity
Process, Power & Marine
What is Asset Lifecycle Management?Life Cycle of A Capital Asset
Conceptu
al
Desig
n
Ram
p-U
p
Opt
imizat
ion
Det
ailed
Engine
ering
Wear/
Obsolescence
Source/
Build
Test/Commission
Retire FromOperation
Sell/
Rem
ove
Hands-on
Training
Pro
duct
Valid
atio
n
Identify
Opportu
nity
Design &Build
Operate &Optimize
Maintain &Improve
Process, Power & Marine
What is Asset Lifecycle Management?ARC’s DOM Model for ALM
Physical
Virtu
alH
um
an
ITServices
SoftwareSuppliers
Logistic Services
Industry &Standards Orgs
PLM Partners
Design&
Build
Operate&
Optimize
Maintain&
Improve
AssetInformation
Process, Power & Marine
What is Asset Information?PLM Program Perspective – Typical Case
Conceptu
al
Desig
n
Ram
p-U
p
Opt
imizat
ion
Det
ailed
Engine
ering
Wear/
Obsolescence
Source/
Build
Test/Commission
Retire FromOperation
Sell/
Rem
ove
Hands-on
Training
Pro
duct
Valid
atio
n
Identify
Opportu
nity
Handover
Ad Hoc
Handover
Mods/Upgrades
Process, Power & Marine
What is Asset Information?PLM Program Perspective – The Ideal Case
Conceptu
al
Desig
n
Ram
p-U
p
Opt
imizat
ion
Det
ailed
Engine
ering
Wear/
Obsolescence
Source/
Build
Test/Commission
Retire FromOperation
Sell/
Rem
ove
Hands-on
Training
Pro
duct
Valid
atio
n
Identify
Opportu
nity
Asset Information
O
D
M
Process, Power & Marine
What is Asset Information Management?AIM – Caring for the Organization’s Jewels
What is Plant Information Management (PIM)?
The collection, management and distribution of information
related to the creation, use and care of physical assets
and the human assets associated with these processes
PIM supports all lifecycle stages of a facility
PIM supports an organization’s complete PLM Program
All Processes (Design, Operate and Maintain)
All Personnel (Internal to the Organization & PLM Partners)
Process, Power & Marine
What is Asset Information Management?Elements of an PIM Infrastructure
ureFunction
Design
Practices
Status
History Financial
Role-Based User Interface(Portal & Mobile)
PIM
Work
flow
Analy
tics, R
eports
(B
I)
Data StoresLocal/Remote
Security
& C
hange
Managem
ent W
eb S
erv
ices
CADPDFImagesTextData …
CollectStructureTransform
All PIM Information
AccessTransformDistribute
PIM Information NotControlled by
DOM Applications
Apps• ERP• PLM• EAM• …
InternalGroups
PLMPartners
Process, Power & MarineInteroperability Simplifies PIM
Information Exchange is central to PIM
Collection/Transformation/Distribution of Information
Integration with Systems/Applications
Interoperability Simplifies Info Exchanges
Standardized Naming Conventions
Complementary Data Models
Compatible PLM Practices
Service-based Applications
Industry Standards Extend the Impact of PIM
Broadens PLM Partner Pool
Enables Benchmarking with Sister Facilities & Peers
Process, Power & Marine
What’s AIM Worth?AIM Also Provides non-Financial Benefits
Plant Performance = Financial + Functional + EH&S + Schedule
Functional
Better Use of Equipment Capabilities through ease of access to OperatingProcedures and Technical Data
Higher Plant Reliability/Availability due to Better Access to MaintProcedures, MRO Parts Information, Operating History, Maint History
EH&S
Better EH&S Performance through ease of access to Inspection Reports,Operations & Maint History
Better Management of Incidents through access to Oper, Inspection andMaint History, Reliability Calculations/Assumptions, etc.
Process, Power & Marine
What’s AIM Worth?AIM Also Provides non-Financial Benefits
Plant Performance = Financial + Functional + EH&S + Schedule
Schedule
Faster time-to-market through better MOC, better management of non-conformity, better coordination across project team, better access toaccurate information (1-3% per Intergraph experience)
Earlier Achievement of Operational Readiness Through Better Access toProcedures & Parts
Faster Shutdowns, Turnarounds and Outages due to more accurate, moreaccessible information
Process, Power & MarineTakeaways & Recommendations
Virtual Assets Enable PLM Excellence
People need Virtual Assets to understand and improve the performance ofPhysical and Human Assets
Lack of care in managing Virtual Assets can quickly lead to poorperformance of Physical and Human Assets
PIM is Important!
Direct and Indirect Costs to Owner/Operators of poor Asset Informationare Staggering
Potential Savings from PIM investments are large and accrue throughoutthe facility’s lifetime
PIM also helps functional, schedule and EH&S performance
The Time to Act is Now!
21st – 22nd August, 2008Hilton Opera Hotel
Hanoi, Vietnam
Thank you
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