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Presentacion ABB - ACIEM 2008
Presentacion ABB - ACIEM 2008
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
Increased
Production x Selling _ Cost of Operating _ Cost of Return
OEE = On
yield price goods sold income capital Assets
And Capital
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
Solution – connecting
maintenance and operations
with dynamic KPI based
information.
© ABB - Page 12
Assessment Findings
0% 25% 50% 75% 100%
2 GAP
Management
Production
Assets
Operations Maintenance
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
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
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
Consolidation
Consolidationof
ofreal-time
real-timeasset
assetinformation
informationandandmonitoring
monitoring
© ABB - Page 30
Value
Value==increased
increasedreliability
reliability
Reliability Integrated Solution