Asset Lifecycle Management (ALM)Asset Lifecycle Management (ALM)Asset Lifecycle Management (ALM)A Community Worth Joining!

Asset Lifecycle Management (ALM)A Community Worth Joining!

AIM For Excellence

Sid SnitkinVice-President

ARC Advisory Groupsrsnitkin@arcweb.com

Why an ALM Community/Service …Why an ALM Community/Service …

ARC Research Area for Over a Decade• Coverage: EAM FSM PAM PET Plant Design etc• Coverage: EAM, FSM, PAM, PET, Plant Design, etc.

• Activities: Studies, EAS Reports, BP Research, Workshops

• Concepts: ALM, CALM, DOM, DOM Interoperability

What Have We Learned?• Asset Management is Critically Important in its own right

• Problems cause incredible financial costs every year

• EH&S impact can be even more important

• Issues are different and span many groups, technologiesIssues are different and span many groups, technologies • Many shared with manufacturing/automation

• Many outside of manufacturing/automation

d ll ll b k h ll

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• Need all groups collaborating to overcome key challenges

DOM – A Model for ALM & Asset PerformanceDOM – A Model for ALM & Asset Performance

Operate

OptimumOptimumPerformance

Design Maintain

The Right Capability

High Availability

Optimal Utilization

Optimum PerformanceX X =

Design MaintainOperate Win!

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Optimum Performance Requires “Joint” Optimization!

Focus of ALM Community/ServiceFocus of ALM Community/Service

Manufacturing

Operate

Manufacturing Focus

Optimum ALM FocusOptimumPerformance

Design Maintain

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ALM Will Reflect the O/O View of Community ALM Will Reflect the O/O View of Community

ConstructionContractors

ShareholdersProduct Supply Chain

Fabricators Financial RegulatorsOperate

OEMs EH&S RegulatorsOptimumPerformance

Maint Service Providers

Engr & EPCs

Design Maintain

Performance

Repair Shops Consumables

ImproveImprove

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Repair Shops

OEMs & Parts Distributors

ARC’s ALM Service Will Include …ARC’s ALM Service Will Include …

Communities for key Topics/Issues (AIM, PAM, etc.)

On-line support: Blogs, wikis, web meetings, etc.

Community-driven ARC Research

Community-driven ARC Forums (Houston ALM Forum)

Augmenting, not duplicating efforts of other groups (OpenO&M Fiatech etc )(OpenO&M, Fiatech, etc.)

Use ARC ALM Communities for collaborative

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solving of your critical problems !

ARC ALM Forum Houston, TX, Oct 6-8, 2008ARC ALM Forum Houston, TX, Oct 6-8, 2008

Presentations and panel discussions by O/Os, suppliers, and ARC analysts - Learn what leading, companies are doing to address ALM Issues. Workshops - increase your understanding of standards that are emerging around ALM.g gFacilitated discussion groups - on key ALM topics will give you an opportunity to work collaboratively with peers and suppliers to identify solutions to shared problems pp y pTechnology Showcase - learn more about specific products and discuss your needs with technology experts Great opportunity for networking ! AIM F E llGreat opportunity for networking ! AIM For Excellence

Join the ALM Community and share

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ideas at this Important Event!

Manufacturing IT Benchmarking… Another ARC Community Effort !

Manufacturing IT Benchmarking… Another ARC Community Effort !

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A Manufacturing Community Challenge …A Manufacturing Community Challenge …

Manufacturing IT Issues/Concerns• How do my Systems compare with Peers - Industry/Region?

• Are my IT Investments too big, too small, just right?

• Am I addressing the right areas – opportunities & threats?• Am I addressing the right areas – opportunities & threats?

General IT Surveys Don’t Provide the Answers• Manufacturing IT More Complexg p

• Don’t Address Many Manufacturing IT Issues

• Aren’t Comprehensive Enough to Answer Real Questions

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A Manufacturing Community Solution …A Manufacturing Community Solution …

Global Database of Information Reflecting:• IT Application/Feature Adoption by Mfgs–all Regions/VerticalsIT Application/Feature Adoption by Mfgs all Regions/Verticals

• Current State

• Planned Investments for This Year

• Likely Investments over next 3 Years

• Drivers/Targets of planned IT Investments

• Impact of Global Trends• Impact of Global Trends

• Business Area/Objective

Annual Update via websurvey of usersp y• Comprehensive to ensure information is useful

• Selective to enable broad participation

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• Benefits reflect community support

Creates Community-shared Value –How Are Manufacturers Reacting to Market Trends?Creates Community-shared Value –How Are Manufacturers Reacting to Market Trends?gg

Rising IT Support Costs

Market Trend Impact on IT InvestmentsNorth America, Chemicals

Industry Consolidation

Aging Workforce

Lack of Skilled Workforce

Rising IT Support Costs

Very big

Globalization of Operations

Globalization of Product Design

Constrained Growth

Very big impact Big Impact

Important

Higher Quality Requirements

Better Service Requirements

Increasing Regs & Compliance

Geographical Shifts in Market Not Important

Market Price Erosion

Shrinking Product Lifecycles

More Product Customization

Higher Quality Requirements

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0 20 40 60 80 100

Creates Community-shared Value –Where are they Focusing New IT Investments?Creates Community-shared Value –Where are they Focusing New IT Investments?y gy g

Focus for IT InvestmentsEMEA, Automotive

11%

, u o oManagement of Customers

products and/or design processes11%

4%

4%

18%processesManufacturing Operations

Supply Chain processes/practices

22%

7%

4%

4% processes/practicesRisk & Regulatory Compliance

Management of Suppliers

15%15%

Management and/or capabilities of EmployeesFinancial Systems and/or Financial Supply ChainsIT S d/ IT

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IT Systems and/or IT Operations

Creates Community-shared Value –What are they hoping to accomplish?Creates Community-shared Value –What are they hoping to accomplish?y p g py p g p

Objective for IT Investments - Mfg OperationsAsia, Metals

3%7%

18%

Real-time visibility of Manufacturing OperationsBetter Genealogy Tracking

I t ti f Pl t & E t i11%

4%9%

Integration of Plant & Enterprise

Better Planning & Scheduling

Lower Plant Operating Costs

7%

9%

Higher Plant Availability

Better EH&S Compliance

Better Investment Planning

18%14%

Better Investment Planning

Better Project Management

Shorter Shutdowns, Turnarounds and Outages

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Outages

Creates Community-shared Value –What IT Applications Do They/Will They Have?Creates Community-shared Value –What IT Applications Do They/Will They Have?pp y/ ypp y/ y

Current IT Portfolio Latin America, Pulp & Paper

80%

90%

100%

50%

60%

70%

20%

30%

40%

0%

10%

20%

FIN HR PLM-D SRM CRM Prod SCM WMS TMS GTM PLM-P EAM FSM PIT EIT

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Have Plan to Acquire in This YearPlan to Acquire within 3 Years No Plans to AcquireNot Applicable

Creates Community-shared Value –Who is Adopting New Technologies/Ideas?Creates Community-shared Value –Who is Adopting New Technologies/Ideas?p g g /p g g /

Manufacturing – Real-time VisibilityPulp & Paper, Latin America

80%

90%

100%

le Have

60%

70%

nal S

am

pl Have

Plan to Acquire in This Year

30%

40%

50%

of

Reg

ion Plan to Acquire within 3

Years

No Plans to Acquire

10%

20%

30%

% o

Not Applicable

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0%

N.A. EMEA Asia L.A.

Creates Community-shared Value –Whose Technology Are They Using?Creates Community-shared Value –Whose Technology Are They Using?

CPM/MES SuppliersDiscrete Industries, North America

gy y ggy y g

16%Applied Materials

SAP

9%46%

Camstar

Visiprise

Rockwell

7%

46%Siemens

IBS AG

Oracle

4%

4%

Activplant

Apriso

IBM SiView

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3%3%

2%2%2%2%

Other

Creates Community-shared Value –Whose Technology Are They Using?Creates Community-shared Value –Whose Technology Are They Using?

CPM/MES SuppliersProcess Industries, North America

gy y ggy y g

16% OSISoft16%

9%

OSISoft

Honeywell

Aspen Technology

Rockwell9%

7%

50%

Rockwell

Invensys

ABB

SAP

4%

4%

SAP

Matrikon

Emerson

Other

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3%

3%2%2%

Other

Creates Community-shared Value –How Fast Will Adoption Occur?Creates Community-shared Value –How Fast Will Adoption Occur?pp

Real-time Visibility, 2008-2011North America, Process Industries

100%

Not Applicable No Plans to Acquire

Plan to Acquire within 3 Years Plan to Acquire in This Year

Have

70%80%90%

100%

mp

le

40%50%60%70%

Su

rvey S

am

10%20%30%0%

% o

f S

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0%

2008 2009 2011

Thank YouThank YouFor more information, contact the author at ssnitkin@arcweb.com or visit our website at

www arcweb com

19© ARC Advisory Group

www.arcweb.com

Acronyms Used in This PresentationAcronyms Used in This Presentation

AIM Asset Information ManagementALM Asset Lifecycle ManagementAIM Asset Information ManagementALM Asset Lifecycle Managementy gApps Software AplicationsBP Best PracticeCALM Collaborative Asset Lifecycle Management

y gApps Software AplicationsBP Best PracticeCALM Collaborative Asset Lifecycle ManagementDOM Design, Operate, MaintainEAM Enterprise Asset ManagementEAS Enterprise Advisory Services

DOM Design, Operate, MaintainEAM Enterprise Asset ManagementEAS Enterprise Advisory ServicesEH&S Environmental, Health & SafetyEPC Engineer, Procure and Construct CompanyFiatech Industry Organization focused on Facility

Design Build Operate & Maintain

EH&S Environmental, Health & SafetyEPC Engineer, Procure and Construct CompanyFiatech Industry Organization focused on Facility

Design Build Operate & MaintainDesign, Build, Operate & Maintain FSM Field Service ManagementInfo Information

Design, Build, Operate & Maintain FSM Field Service ManagementInfo Information

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A complete list is available on ARC’s Homepage: ARCweb.com

Acronyms Used in This PresentationAcronyms Used in This Presentation

OEM Original Equipment ManufacturerO/O Owner/Operator of the AssetOEM Original Equipment ManufacturerO/O Owner/Operator of the AssetpOpenO&M Consortium of Standards Organizations

involved in Operations & MaintenanceOPEX Operating Expenses

d

pOpenO&M Consortium of Standards Organizations

involved in Operations & MaintenanceOPEX Operating Expenses

dPAM Predictive Asset ManagementPET Process Engineering ToolsP&ID Process and Instrumentation DiagramROA R t A t

PAM Predictive Asset ManagementPET Process Engineering ToolsP&ID Process and Instrumentation DiagramROA R t A tROA Return on AssetsROA Return on Assets

21© ARC Advisory Group

A complete list is available on ARC’s Homepage: ARCweb.com