TEN COST-SAVING METRICS

ENABLED BY ASSET INTEGRITY

2023
MANAGEMENT SOFTWARE By
Fernando Verzotto
CEO and Co-Founder, Antea

Mustapha Mazouzi

WHITE PAPER
President, Antea Americas

Floyd Baker
Vice President, Antea Americas

Phone: +1 888-642-6832
E-mail: info@antea.tech
www. antea.tech
 CONTENTS
03 Introduction

04 Case Study Parameters

04 Key Findings

#1 Insurance Premiums
#2 Time to Find (TTF) Asset Data
#3 Data Management of P&IDs, Maps,
and Drawings
#4 Report Generation, Duplication,
and Distribution
#5 Geospatially Indexed Data
Optimizationand Distribution

#6 Data Entry from External Sources

#7 Systems Coherence and Extension

#9 Production Capacity Reduction

and Shutdowns

#10 Document Reconstructions

09 Conclusion

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INTRODUCTION
Operators in asset-intensive industries such as oil and gas, petrochemical, nuclear, and power generation
are under stringent requirements to provide proof-of-fitness of their assets while ensuring safety and
environmental considerations for personnel and surrounding communities. Stringent regulatory
requirements exist to ensure that these standards are met, making regulatory compliance and readiness
for audit another crucial component of any mechanical integrity (MI) program.

These objectives become challenging if the right systems are not in place. If asset data exists in an array
of disparate file types (paper reports, excel spreadsheets, PDFs), it can be timely and difficult to retrieve
the data required for decision making or audit reporting. If different departments or sites are responsible
for upkeeping their own data, and this data is not centrally available, it creates the opportunity for
information silos. This can lead to excess time to find (TTF) information, critical errors in parts ordering
or maintenance planning, and, in worst cases, catastrophic failure events if the information on an asset’s
conditions cannot be readily retrieved and assessed.

Asset integrity management (AIM) software exists to circumvent these challenges. By consolidating
all available data on every piece of equipment into one central database, it creates a collaborative
environment, or ecosystem, from which every interested party can access the same current version of
the truth. It enables access to real-time data for smarter and more efficient decision making.

In theory, the purpose and benefits of AIM software might be widely known. But what about in practice?
What are the tangible cost savings that an AIM software solution might deliver to a company? What have
real facilities experienced after implementing digital AIM software?

This white paper draws upon an extensive case study conducted by Antea with multiple process facilities
from the oil and gas and petrochemical sectors to answer those questions. It will examine the key areas
where companies discovered immediate cost savings in the first year, including metrics for cost saved in
each.

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Case Study Parameters
The case study surveyed a multitude of companies
of varying size and output, and averaged/
normalized the data to represent a standard
refining or petrochemical process plant with a
given output of 50,000 barrels per day of product.
The results reflect approximately 1,000 pieces of
pressure equipment and an onsite workforce of
200 employees.
The solution that was implemented by the
participating companies is an AIM software with
inspection data management (IDMS) and risk based
inspection (RBI) capabilities. It utilizes digital twin
technology for contextualized visualization of an
asset’s conditions in real-time. It bidirectionally
integrates with informational technology (ERP,
CMMS, SAP, NDT findings, etc.) and operational
technology (remote sensors on the asset, humans
reporting from the edge environment) to provide a
single, collaborative database of all data sources.
The resultant findings indicate ten key areas of
immediate and tangible cost savings that were
delivered as a result of implementing the software
solution.
Key Findings
#1 Insurance Premiums
International brokers were polled to determine
both the typical rate of insurance and expected
premium reductions for a standard facility with
the aforementioned parameters. According to
data retrieved from the brokers, a facility with
approximately 1,000 pieces of pressure equipment
has an average annual insurance rate of $1.1 to
$1.6 million USD per year.
An average savings of up to 5% can be realized by
the insurer per annum if the following requirements
are met:
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• Documents submitted to the insurer and
required data is immediately retrievable and
available; and
• Continuous monitoring of agreed risk relievers
can be proven to the insurer.
Utilizing an AIM software with RBI capabilities can
satisfy both of these requirements. By maintaining
a real-time, centralized database of evergreen
asset data, required documents, and demonstrable
data can be readily retrieved and reports instantly
generated.
With RBI methodology inherent in the AIM software,
especially if a Digital Twin is utilized for the visual
representation of the risk throughout a facility, the
second requirement provided by the insurers can
also be satisfied.
Figure 1. Example of an RBI matrix demonstrating probability of failure vs.
severity or consequence of failure and contextualizing risk through a 3D
model of the plant.
#2 Time to Find (TTF) Asset Data
In a typical process facility with disparate data
sources, the average time needed to locate
corresponding documentation or information for
any given piece of equipment in a plant is four hours.
According to publicly available Nielson research, a
typical process employee spends an average of 50
hours per year searching for documents. Assuming
a fully loaded cost of $55 per hour, that employee
costs the plant $2,750 annually just in searching for
documents or relevant equipment data. Factoring
a plant workforce of 200 employees, the cost of
searching for documents equates to $550,000
annually.
The results of the case study determined that this
factor – time to find, or TTF – presented the single
most significant savings and ROI for each company.
With AIM software implemented – particularly
with Digital Twin converging IT/OT data with real-
time access – companies reported that the time
required to search for actionable intelligence was
reduced to minutes or even seconds. Given the
continuous updating of data and real-time access,
employees were able to access information nearly
simultaneously.
Accenture estimates that 42% of process employees
use incorrect or out-of-date information at least
once per week. Assuming a per-incident cost of
$300 for meetings and/or corrective actions, the
savings from TTF for a plant of 200 employees
is over $1.8 million USD per year. This amount
does not reflect the savings from an unknown risk
related to delayed information that leads to injury,
damage, or an unplanned shutdown, which can
equate to expenditure in the tens of millions.
The costs of finding documents that will eventually
prove to be untraceable, missing, or duplicated
are difficult to quantify. On average, 38% of the
documents will have three or four copies or
versions.
The Gartner Group found on average an employee
spends 19% percent of their time managing and
researching documents.
AIM software provides a mechanism that enables
any type of document or file to be linked or
attached to its corresponding part, equipment,
unit, area, or plant. All documents pertaining to a
given asset may be retrieved with one click, or by
simply specifying the location of the item within
the physical process system.
#3 Data Management of P&IDs, Maps,
and Drawings
Process operators face the ongoing task of
maintaining evergreen data and ensuring all data
formats are both current and retrievable. This task
becomes particularly difficult when considering
the management of P&IDs, maps, and drawings.
The management of P&IDs alone is a significant
contributor to decreased efficiency and increased
risk, as critical maintenance and repair plans
rely on quick and accurate versions for prudent
decision making.
The consensus among all the operators who
participated in this case study was that digital AIM
software provided two direct sources of measurable
savings in this regard:
1. Employees were able to spare hours in time
searching for a particular asset within the
drawing set, given the bidirectional linking
of P&IDs with corresponding assets and
components; and
2. Use of redlines as unofficial updates to incorrect
P&IDs ensures that the correct information
is always available, regardless of the state
of the P&IDs. This further helps continuous
monitoring and readiness for audit as outlined
by requirements from insurance brokers and
regulatory bodies.
Figure 2. Smart P&ID linked to assets & components within AIM software.
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In order to calculate the savings provided by this
feature, a few expense factors were measured: the
direct costs of employees, and the cost for activities
by engineering companies for modifications or
revamping. The total savings per annum delivered
by intelligent P&ID management with AIM software
averaged $100,000 among participants.
Tip: AIM software tools are not one size fits all. To
maximize the savings of P&ID management, seek a
software that utilizes Smart P&ID centric method of
bidirectionally linking and managing them, as well
as one that allows for both formal and informal
updates and notes (redlines or markups). This
helps solve process operators’ problems with out-
of-date or incorrect P&IDs, maps, and drawings.
#4 Report Generation, Duplication, and
Distribution
Report generation and distribution in classical
mechanical integrity practices are typically quite
inefficient. If reports are distributed via handoff or
emails, it can take a while for them to filter through
the chain of command and reach all interested
parties, sometimes with modifications along
the way and arriving either too late or too out of
date for actionable and timely decision making.
In addition, report preparation using traditional
methods can take time to prepare and result in
multiple copies of the documentation being made
and kept separately by the stakeholders. This is
especially true if reports are being generated post-
shift or relying on pen and paper notes to complete.
Finding specific reports – or the correct version of
a report – becomes more difficult over time with
these methods, perpetuating the use of outdated
or incorrect data, due to the existence of multiple
versions sent to different distribution lists.
AIM software resolves this by providing a single
digital repository and notification system for
MOR reports and documentation. Further, it
can provide automated report generations that
populate reports according to specific regulatory
criteria, pulling from the current data available
in the database. Data storage is reduced and
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confidence in the system can be enhanced due to
being always able to access a current and correct
version or update.
While this element is difficult to universally
quantify, as the current reporting practices and thus
savings incurred will differ with each company, the
normalized average reported by all participants of
this study concurred that a cost savings of $100,000
per year is not uncommon with enhancements to
report generation, duplication, and distribution.
#5 Geospatially Indexed Data
Optimization
Digital transformation is a scalable journey
and, as with any journey, can be considered in
stages – each more evolved than the last. For
example, moving from pen - and- paper reports
and MI documentation to Excel Spreadsheets
and PDFs is, in fact, a more digitalized approach.
Similarly, managing complex process systems
with traditional ‘flat’ data sources – e.g. relational
databases, spreadsheets, or interactive retrieval
systems – is yet another step that is more digitalized.
Still, it’s at best just a faster method of using a file
cabinet. This data, while digitalized, will still exist
in silos, leading to the same problems of outdated,
inaccurate, or untrustworthy data that is difficult
and timely to retrieve.
The next evolution for data optimization in the
digital transformation journey is geospatial
indexing. By using specific coordinates, such as
an element’s X, Y, Z position, in a geo-referenced
space as its index, it becomes no longer necessary
to know *what* something is in order to find it.
Instead, simply knowing *where* it is helps an
operator quickly find and retrieve any pertinent
data related to it.
Especially when using a Digital Twin, it becomes
possible for an operator to view a replica of the
plant on their device within the AIM software. From
there, they can zoom to the asset or component
of interest and simply click on it to access the data
associated geospatially with that point of interest.

Figure 3. Example of geo-spatially indexed data in AIM software.
The inverse is also true. With geospatially indexed
data, information from a given asset or component
can be related visually to that item. For example:
displaying the temperature of a vessel directly on
the interactive P&ID or space in the Digital Twin.
For those companies seeking to ensure
sustainability and readiness for future technological
advancements, this form of geospatial indexing
is a required capability for next generation Virtual
Reality (VR) and Augmented Reality (AR) systems.
In terms of operational cost benefits, maintenance
planning is at the forefront. It becomes possible to
overlay the position of the proposed scaffolding
with the inspection schedule to enhance
productivity.
There aren’t yet tangible metrics to quantify the
exact savings experienced by moving from a
flat database system to a retrieval and indexing
system. However, each of the participants in the
case study was asked if they felt $100,000 per year
savings would be a fair estimate at this time. The
response? The companies interviewed argued that
that would be a significant underestimation – and
that the annual savings provided are in fact much
higher.
Regardless of the quantification, the consensus
was unanimous that the use of geospatial indexing
is a key savings driver for MI programs, and it’s an
essential one to look toward if the objective is to
remain future-ready for the coming advancements
of VR, AR, and AI.
Not all AIM software will come readily equipped
with this feature. For the best overall value, look for
an option that provides the following:
• Visually based, 3D spatially indexed system for
process systems.
• Data is homogenous between five main points
of access each connected and indexed together.
• Data can be accessed directly from and between
a flat database hierarchy, interactive P&IDs,
models, point clouds, or physical location.
• Finding an item in one interface locates it in all
interfaces simultaneously.
• Integration of this capacity can be extended to
traditional legacy applications (Maximo, SAP,
Meridium) for extended usefulness and power.
#6 Data Entry from External Sources
Inspection, maintenance, and repair information
is usually provided on paper or within external
files from a service provider (e.g. PDFs). The plant
workforce is then responsible for loading the
contents and all their requirements, suggestions,
explanations, and findings into one or many flat
data systems manually. Often, critical information
reported in these documents can become buried in
files that are either waiting to be input, or will not
be input due to error or neglect, essentially making
that critical information inaccessible.
AIM software provides the ability to internally edit
standing reports, import them from templates,
and import them into a single data system. This is
a significant source of savings due to the reduced
data loading costs, reduced errors or missed input,
and increased efficiency delivered by immediately
available information.
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This is also an important factor in managing risk
and mitigating the possibility that critical data
input will be delayed past a failure event. With the
advent of the Industrial Internet of Things (IIoT)
and advances in remote sensing technology, the
ability to directly input generated data directly into
the system becomes more essential.
To quantify the savings of this feature in the case
study, a conservative estimate was used of two
data entry employees at $25 per hour inputting
data full-time into multiple systems for a year –
delivering a savings of $100,000+ per annum. This
does not include any of the savings gained by the
ability to immediately access loaded data (though
those are demonstrated in other categories of this
report).
#7 Systems Coherence and Extension
Operators require a host of information systems
to classify and maintain data. Often, they rely on a
multitude of different software solutions to manage
every facet of data. This leads to the oft-mentioned
challenges of information silos, difficulty retrieving
data, duplication of or inaccurate data, and
eventually a loss of trust by users.
This can lead to an expensive and risky practice
where users begin to concentrate on keeping
data evergreen within their sphere of influence,
exacerbating the issue. When data for a given
process is held by just a few users, over time it can
become hidden or lost.
Given the current economic climate, it is
reasonable to infer how these practices might be
threatened by the “Great Crew Change,” where
older workers are retiring en-masse faster than the
new generation is onboarded, without sufficient
overlap of knowledge transfer.
The risks posed by these practices are why a
common goal of many MI programs is to implement
a system that enables a “single version of the truth.”
In fact, it is this purpose for which AIM software was
essentially designed and exists.
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AIM software establishes convergence between
IT and OT platforms, bidirectionally linking all
sources of data into one collaborative database.
This makes it possible for those utilizing installed
platforms (Maximo, SAP, etc) to utilize the visual and
spatially based components of the AIM software
as a common point of reference. The benefits of a
converged AIM database include:
• Budget management of inspection and
maintenance activities
• Streamlined work order processes
• Faster scheduling of maintenance activities
• Enhanced cross- checking and compliance
to and within P&IDs
• More complete datasets for analysis by
management-facing software products
• Efficient, intuitive access to complex data
systems
• The average quantified savings reported by
participants in this case study for a process
plant of 1,000 assets estimated a per annum
return of over $150,000.
#8 Production Capacity Reduction and
Shutdowns
During the span of a year in operation, a single
unit will frequently face critical issues in need of
solving. This can be due to equipment degradation
and/or failure resulting in a reduction of production
capacity or, at worst, a temporary shutdown of the
entire unit. In the span of one year, the unit capacity
loss is typically equivalent to two or three days of
lost production – either through limited capacity or
temporary shutdown.
The data supplied by operators for this case study
estimates that a day of non-production from a
single unit is equivalent to an expenditure of
$222,000. This number could be extremely higher
based on the commodity being processed and the
demand on that product at the time. This, compiled
with the fact that a facility will have multiple units
experiencing similar issues and losses, begins to
show the economic impact when accurate technical
information cannot be immediately accessed to
solve critical issues.
The participants in this case study utilized centric
P&ID method of centralizing reports, inspections,
and other data into a single database – one that
also bidirectionally links with IT platforms and
legacy systems.
Quantifying the savings of this feature of course
depends on the frequency and extent of production
loss and shutdowns experienced by each facility.
Yet, more than one participant in this study reported
actual shutdown avoidance as a result of using the
software – by enacting preventive maintenance to
avoid production loss and, in one case, by being
granted an extended Certificate of Fitness due to
the software’s availability to demonstrate suitable
risk levels.
In any case, given the expenditure of just one
production loss event, and the ability of AIM
software to prevent them from occurring, it is
reasonable to assume a large and quantifiable
savings in this regard (average estimate reported
by case study participants totaled $650,000).
#9 Document Reconstructions
An estimated 81% of business documents are not
consulted due to insufficient knowledge of their
existence, whereabouts, or improper storage. In
such cases, when those documents are needed
for technical, insurance, or litigation purposes,
and they cannot be found, the documents must
be reconstructed. This can be a costly process that
requires the use of site surveys, technical inquiries,
plant and labor downtime, and other unplanned
production complications. Plant operators
who participated in this case study reported
typical spending of more than $50,000 per year
reconstructing documents (not including the cost
of production losses during the process).
AIM software mitigates or eliminates this
expenditure by creating a digital repository
that keeps all data sources current, evergreen,
geospatially indexed, and instantly accessible.
Integration with IT systems ensures that these
access and documentation benefits extend to
those operating with legacy platforms such as
SAP and Maximo. Any document can be found and
referenced within moments, removing questions
of their existence or improper storage that would
lead to the requirement of data reconstruction.
Conclusion
Factoring in the savings reported by operators in
this case study for each of these areas, the total
average reported savings for a process plant of
1,000 assets and 200 employees that migrates to
digital AIM software was in excess of $3.2 million
dollars per year.
Of course, the scope of this study is limited to the
unique profiles of the companies that participated,
and each of these features could result in either
higher or lower savings for an operator, depending
on the amount and type of assets at the facility, the
current level of digitalization in practice, and the
amount and type of personnel employed.
As we approach the future with Machine Learning
and Artificial Intelligence already at the helm,
digitalized and geospatially referenced databases
become more critical – as they form the basis of
requirements for these advancements, helping
companies remain future-ready.
Regardless of the concrete dollar amount, it is
evident that AIM software provides a pathway for
cost savings in a multitude of areas by streamlining
storage, analysis, and access to data. It enhances
the inspection and maintenance planning of any MI
program and ensures contextualized visualization
of asset conditions, which can be a powerful
tool in prolonging asset lifecycles and adopting
preventative maintenance.
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Phone: +1 888-642-6832
E-mail: info@antea.tech
www.antea.tech