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Reliability Integrated Solution

Speaker: Eduardo Rimoli


Company: ABB
Market Forces

Market Dynamics
„ Global competition
„ Increasing energy prices and raw material
„ Shifting labor pool
„ Demand
„ The Challenge
„ Reaching financial goals
„ Staying competitive
„ Increased productivity, reduced costs and safe
operations a mandate
„ Sustainable, profitable growth required
© ABB - Page 2
© ABB - Page 3 Pressures, Actions, Capabilities, Enables
Achieving Operational Excellence
„ Balancing act between high availability
and low cost demands requires a
proactive business strategy with clearly
defined metrics
„ Establishing the baseline

„ Real-time Assessment of
Key Performance Indicators (KPI)
“Plant Asset Management
„ Measure asset performance and identify
systems providing real-time
asset performance performance gaps and opportunities
information to operations
and maintenance will „ Provide continuous improvement
increase Return on Assets
services
(ROA) and lead to
© ABB - Page 4

operational excellence.” –
ARC Insights
Overall Equipment Effectiveness
Equipment Effectiveness is maximized through efforts
to keep control of and to eliminate production’s “six major losses”:

Theoretical
TheoreticalProduction
ProductionTime
Time

Planned Planning
Planned Planning
Factor
Planned
PlannedProduction
ProductionTime
Time Down Factor
DownTime
Time (Pf)
(Pf)

Unplanned Equipment
Equipment Failure
Failure
Unplanned Availability
Gross Availability
GrossOperating
OperatingTime
Down Time
Time Down Time (A)
Losses (A)
Losses Setup
Setup &
& Adjustment
Adjustment

Idling
Idling &
& Minor
Minor Stops
Stops
Speed Performance
Net Performance
NetOperating
OperatingTime
Speed
Time Losses (P)
Losses (P)
Reduced
Reduced Speed
Speed

Valuable Defects
Defects in
in Process
Process
Valuable Quality Quality
Operating Quality Quality
(Q)
Operating Losses
Losses (Q)
Time Start
Time Start up
up Losses
Losses
© ABB - Page 5

Overall Equipment Effectiveness : OEE = A * P * Q


Total Productivity = OEE * PF
Reliability Integrated Solution
Reliability Integrated Solution (RIS) increases the Life Cycle Profit of the
customer’s operational assets.
-increase of Overall Equipment Effectiveness (OEE)
-by ABB’s Asset Optimization Solutions and Reliability Services
© ABB - Page 6
Why Focus on Asset Optimization?
An effective asset optimization strategy can boost the
bottom line by improving OEE while reducing cost of goods
sold & avoiding capital expense.

O&M costs are calculated


Operations
Asset reliability improves in the cost of goods sold.
and maintenance
every aspect of OEE. Improvements impact the
costs
operating profit component.

Increased
Production x Selling _ Cost of Operating _ Cost of Return
OEE = On
yield price goods sold income capital Assets
And Capital

Improved asset reliability reduces


© ABB - Page 7

amount of capital needed.


Source: Plant Services, October 2004.
Influence of OEE on Earning Power
Planned
hours
8 760 The earning power of a
Theoretical Actual plant under
prod/year prod/year
some assumptions:
438 000 263 019
Max prod/h
Contribution
50 margin/year
OEE 65 755
60.0 % Contribution
margin/unit Profit
0.250 11 286
Availability Price/unit
77.0% 0.600 Direct
maintenance Fixed
costs costs/year Revenues Profitability
Variable
Performance cost/unit 9 469 54 469 157 811 7.15 %
ROCE
85.7% 0.350
Capital turn 6.81%
Depreciation Fixed assets Revenues over rate
15 000 150 000 157 811 0.95
Quality yield
© ABB - Page 8

91.0% Capital
Other fixed costs NOWC employed
30 000 15 781 165 781
Higher OEE Substantially Increases Earning Power
Planned
hours
8 760 OEE increase of
Theoretical Actual 10% gives $9.3M
prod/year prod/year
in increased profit
438 000 306 697
Max prod/h
Contribution
50 margin/year
OEE 76 674
70.0 % Contribution
margin/unit Profit
0.250 20 633
Availability Price/unit
83.0 % 0.600 Direct
maintenance Fixed
costs costs/year Revenues Profitability
Variable
Performance cost/unit 11 041 56 041 184 018 11.21 %
ROCE
91.7 % 0.350
Capital turn 12.25 %
Depreciation Fixed assets Revenues over rate
15 000 150 000 184 018 1.09
Quality yield
© ABB - Page 9

92.0 % Capital
Other fixed costs NOWC employed
30 000 18 402 168 402
Same Earning Either Requires Price Increase...
Planned
hours
8 760 Same earning power
Theoretical Actual can be achieved by a
prod/year prod/year
6.2 % price increase...
438 000 263 019
Max prod/h
Contribution
50 margin/year
OEE 75 486
60.0 % Contribution
margin/unit Profit
0.287 20 434
Availability Price/unit
77.0 % 0.637 Direct
maintenance Fixed
costs costs/year Revenues Profitability
Variable
Performance cost/unit 10 053 55 053 167 543 12.20 %
ROCE
85.7 % 0.350
Capital turn 12.25 %
Depreciation Fixed assets Revenues over rate
15 000 150 000 167 543 1.00
Quality yield
© ABB - Page 10

91.0 % Capital
Other fixed costs NOWC employed
30 000 16 754 166 754
...Or Reduction in Maintenance Costs of 95%!
Planned
hours
8 760 … or by reduction
Theoretical Actual of maintenance costs
prod/year prod/year
438 000 263 019
by >95 % !
Max prod/h
Contribution
100 margin/year
OEE 65 755
60.0 % Contribution
margin/unit Profit
0.250 20 313
Availability Price/unit
77.0 % 0.600 Direct
maintenance Fixed
costs costs/year Revenues Profitability
Variable
Performance cost/unit 442 45 442 157 811 12.87 %
ROCE
85.7 % 0.350
Capital turn 12.25 %
Depreciation Fixed assets Revenues over rate
15 000 150 000 157 811 0.95
Quality yield
© ABB - Page 11

91.0 % Capital
Other fixed costs NOWC employed
30 000 15 781 165 781
Reliability Integrated Solution

„ Reliability – applying
technology to improve
reliability and drive productivity

„ Integrated – linking dynamic


OEE data with asset health
information and CbM data with
CMMS. All viewable through a
dashboard.

„ Solution – connecting
maintenance and operations
with dynamic KPI based
information.
© ABB - Page 12

The bridge between Technology and Reliability Services


The Key Elements of a Reliability Integrated Solution

Diagnose Implement Sustain


Continuous
Lost opportunities Technology Solution Improvement
Services
© ABB - Page 13
Diagnose : Reliability Fingerprint

Assessment Findings
0% 25% 50% 75% 100%

1.) Improve OEE


1 GAP

2.) Optimize Maintenance Performance

2 GAP

3.) Develop Reliability Culture


3 GAP
© ABB - Page 14
Implement : Reliability Integrated Solution
Asset Reliability
Condition Dashboard
Reporting CMMS /
Automation Assets System Calibration
Systems

Management

Production
Assets

Operations Maintenance

Reliability Integrated Solution

Dynamic OEE
© ABB - Page 15

Condition
Real-Time Based
Field Devices Production Monitoring
Intelligence
Asset Performance Management Process Flow
„ Streamlined anomaly detection and workflow reduces time to action
„ Continuous Condition Monitoring
„ Fault Condition Reporting
„ Alarming, Visualization,Access to detailed diagnostic
„ Fault Report Submitting into CMMS
„ Work order information in Asset Optimizer Workplace
„ Reduced Paperwork Needed

Analyzing
Decision
Reporting
Action
Submit

Monitoring
© ABB - Page 16
Sources of Maintenance Costs

Chemical
ChemicalPlant:
Plant:typical
typicaldistribution
distribution
Piping Other
Boilers 5% 5% Instruments
Instruments
8% 20%
20%
Electrical
8%
Heat exchangers
Motors & Heat exchangers
Drives 12%
Drives 12%
8% 8%
Pumps
Pumps
Vessels
9% 9%
8%
Valves Compressors
Valves Compressors
8% 9%
8% 9%
Asset types
Instruments Heat exchangers Pumps Compressors Target
Valves Vessels Drives Electrical Assets
© ABB - Page 17

Boilers Piping Other


Asset Monitor Library
„ Basic Asset Monitors
„ Field Device Asset Monitors (Hart, FF, Profibus)
„ IT Asset Monitors
„ Electrical Equipment Monitoring
„ Process Equipment Monitoring
„ Run Time Accumulation
„ Heat Exchanger Asset Monitoring
„ Compressor Monitoring
„ Rotating Machinery Monitoring
„ Centrifugal
„ Dynamic OEE (Real-Time Production Intelligence)
„ Condition Based Monitoring (CbM) – DLI
„ Control Loop
„ Control Network , (CPU usage, memory, etc..)
© ABB - Page 18

„ … 400 specialized Asset Monitors today and this library is


continuous growing …..
Asset Monitors for Field Devices

HART, Foundation, Profibus,


Drives, QCS, etc
„ Microprocessor-based
„ Integrated into an automation system
context
„ Capable of double duty
„ Process control
„ Diagnostic health
„ Diagnostics
„ Advanced device resident algorithms
„ Many conditions can only be
detected from within
© ABB - Page 19
DMS Calibration Connectivity
800xA „ DMS (Device Management System)
Workplace DMS Calibration Management package from
Meriam Process Technologies
„ MFT - Unique handheld device for
„ Calibration (reference and measure device)
„ Display bases user guidance for TAG
specific Calibration Procedures
„ Recording and Documentation of all
procedure steps
„ HART communication with the device

„ “In Place” calibration


„ Seamless integrated into 800xA
© ABB - Page 20
Rotating Machinery Overview

„ Motors, Drives, and Pumps


„ Vibration Monitoring
„ Runtime / Idle time Asset
Monitoring
„ Most Maintenance is
calendar time based
„ Some Condition Based
„ Other Alerts
„ Temp
„ Current
„ Torque
„ Lubrication
© ABB - Page 21
Rotating Machines vibration

Web-based
Remote Vibration On-site or
Services CD-based
Training
© ABB - Page 22

Portable / Online
Products
High Value Asset Monitors
„ HXAM-Generic (for any heat exchanger)
„ Temperature
„ Mass Flow
„ Pressure
„ Heat Duty

„ HXAM-ST (for Shell & Tube heat exchangers)


„ All of the above – plus…
„ Tube Velocity
„ Thermal-profile crossover check
„ Actual Heat Transfer Efficiency (“U”)
„ Limit Approach Temperature Lo-limit check

„ Boiler Performance
„ Flow delta
„ Boiler efficiency deviation from baseline
„ Excess O2 deviation from baseline
„ Boiler temperature profile
© ABB - Page 23
OEE - Real Time Production Intelligence

„ Monitors conditions
and performance parallel to
analysis and reporting in real
time

„ Assists in diagnosing and


identifying RCA
(Root Cause Analysis)
of breakdowns and stoppages

„ Graphic reports effectively


convey qualitative information
for decision making
© ABB - Page 24
CMMS Connectivity : Work Orders
For a particular asset,
active work orders submitted
in the CMMS system.

Work Order Number provides link to the


CMMS system work order details.
© ABB - Page 25
Solution Overview

24/7 available specialists for


equipment, process, control,
vibration, etc.
Remote Connectivity

Asset Optimizer (Optional))


CM
Asset Monitors
Expert
analysis
of data Critical Assets &
Processes

If data are out of


pre-defined limits, experts
provide intelligent
feedback, based on
© ABB - Page 26

all available data. Operations & maintenance can


request assistance at any time.
Mining Case study
Voisey Bay
Nickel Company
© ABB - Page 27
Voisey’s Bay Nickel Co., Labrador, Canada (Vale Inco)
ƒ $1 billion project (nickel mine and concentrator)
ƒ Start-up 2005 (350 employees)
ƒ Minimum 14-year life
ƒ 100% owned by Inco Limited
ƒ ABB Full Service
© ABB - Page 28

+58° 28' 48.00", -62° 39' 36.00"


© ABB - Page 29 Voisey’s Bay Nickel Co., Labrador, Canada (Vale Inco)
Reliability Integrated Solution
Concentrator – Nickel Processing
„ Motors and pumps
„ DLI Integration (vibration)
„ Runtime
„ Lubrication
„ Thermal Imaging
„ Pressure & flow
„ Maintenance Focused
„ Advanced Notification
„ Asset Documentation
„ Asset History
„ Reliability Dashboard
„ Æ Delta V Emerson
„ OEE 90% > budget

Consolidation
Consolidationof
ofreal-time
real-timeasset
assetinformation
informationandandmonitoring
monitoring
© ABB - Page 30

Value
Value==increased
increasedreliability
reliability
Reliability Integrated Solution

1. The ability to dynamically link


the technology with Reliability
Services will differentiate you
from your competition.

2. Applying the solution will help


drive sustainable results.

3. The solution is scalable and not


dependent on the installation of
a new system!
© ABB - Page 31
Are you getting a full return on their assets?

How can you optimize „ How do you compare to world-class


assets to improve your performers?
customers’ financial „ What has the greatest impact on
return? shareholder value: asset
effectiveness, or reduced costs?
„ How can you improve the reliability
and safety of their operation?
„ Where are hidden improvement
opportunities; how worthy are they?
„ How do you deliver actual, lasting
improvements?
© ABB - Page 32
© ABB - Page 33

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