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Sustain.Ability. 2012 Honeywell Users Group - EMEA 1 Sustaining Benefits from Advanced Applications Daren Lewis Global Services Director, Advanced Solutions

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Sustain.Ability.

2012 Honeywell Users Group - EMEA

1

Sustaining Benefits from Advanced Applications

Daren Lewis – Global Services Director, Advanced Solutions

2

Goal: To deliver an effective sustainment program

Agenda

• Challenges and pitfalls of supporting Advanced

Applications and sustaining the benefits

• How to successfully sustain, improve and extend the

benefits from advanced applications.

• Share some best practices and case studies that are

delivering long-term results

3

Typical Customer Benefits

Automation Suite Potential

Benefits Payback

Operations Management $3 Million / year 0.8 - 1.2 year

Production Management $3 Million / year 0.8 - 1.2 year

Blending & Movement Automation $4 Million / year 0.2 - 2.0 year

Advanced Planning & Scheduling $3 Million / year 0.5 - 2.0 year

Operator Training & Simulation, Asset

Management $6 Million / year 0.8 - 1.0 year

Advanced Process Control &

Optimization $4 Million / year 0.2 - 2.0 year

Typical Benefits Range of $10M - $50M Per Year Per Site

(Actual Benefits Depend on Industry & Plant Scale)

Sustaining These Benefit Levels is the Real Challenge!

4

“Sustainability” Defined

What Wikipedia Says… • the capacity to endure and remain

productive over time.

• the long-term maintenance of responsibility that has environmental, economic, and social dimensions

• the concept of stewardship and the responsible management of resources.”

5

The Sustainability Problem

• Complex Technical Solutions

– Awareness/ Training/ Knowledge

Transfer for the application

– End user handover & acceptance

– Support ownership & capability

• Changes and Updates to the

Application

– Effective Incident & Problem

management providing timely resolution

– Effective Change Management

• Handling Personnel Changes

– Limited Resources

– Retraining & Knowledge Management

6

Time (Months)

6 12 18

50

100

Ben

efit

s (%

of

Ori

gin

al)

No Maintenance

Basic Maintenance

Reactive Mantenance

Proactive Maintenance

Opportunity Assessment

Legend

Understanding the High Cost of Neglect

“…applications which are designed to make money can quickly degrade over a period of 18

months to yield nominal benefits (<25%) if they are not properly monitored and maintained

from the time of installation.” Customer, Honeywell Users Goup Forum

• Attractive investment with

good initial benefits

• Potential for rapid

degradation of benefits

without proper

monitoring/maintenance

• Combination of tools and

work process needed to

sustain benefits

7

Focus on the Benefits of Sustainability

This picture is worth a thousand words!

8

The Support Concern in a Nutshell

• Benefits can rapidly decline without proper focus

• Skilled support resources are difficult to find & retain

• Not addressing support factors in early project stages

greatly lowers the probability of sustaining benefits

Complex, Expensive Applications That Are Not Delivering Results

9

The Support Solution in a Nutshell

• Address application support early in the lifecycle

• Work maintenance aspects in parallel with original

delivery

• Use best practice support methodologies to ensure

long-term success

Explicitly Address Support Issues in All Phases of Implementation

10

Support Requirements - Not Rocket Science!

11

An Overview of Best Practices

• Build a comprehensive support & maintenance framework

Make better use of remote monitoring technology

Use tools to more clearly identify & prioritize problems

Leverage & train local resources

Layer support services for fast response

Structure supplier & end user support contracts

12

How can Honeywell help?

• Experienced personnel

• Familiar with the right technology

• Deliver the necessary services

• Ensure long-term sustained benefits

• Provide Continuity

13

Post-Project Support Solutions

Break-Fix Conflicts will

arise

Pro-Active Different

behaviors & goals required

Collaborative Establish

relationships & networks

Organizational alignment

14

Alignment with ITIL Service Framework

Overview of Life Cycle Services

15

Benefits Guardianship Program (BGP)

• Considered the foundation support program for

advanced applications across the Advanced

Solutions portfolio

• Entitlements:

– Expert Telephone Support

– Online Support

– Critical Software patches

– Free Software updates & upgrades

– New Documentation Updates

– Monthly Service Report & Newsletter

16

Benefits Guardianship Program (BGP)

• Benefits Guardianship Delivers Customer Value that

Keeps Applications Current and Available

– Lower Cost than On-Demand Services

– Predictable Support Costs

– Flexible Application Coverage

– Accelerated Problem Resolution

– Better Planning and Decision-Making

Considering software benefits alone, Benefits Guardianship coverage

results in a 40% reduction in estimated software maintenance costs over

a 3-year period.

Assumes a recurring 1-yr renewable support agreement with upgrades on an 18 months cycle

17

Enhanced Benefits Program (EBP)

• Provides periodic on-site engineering labour to pro-

actively support advanced applications

• Can extend to a service framework that allows

Honeywell to provide a bundle of support activities

– Examples:

• Software installation services

• On-site engineering services

• Configuration and migration services

• Application Design Consulting Services

• Remote monitoring and diagnostics

• Performance Assessment & Health check Services

• Customised Training Services

18

BGP + EBP = A Different Focus

Benefits Guardianship

Program

+

Enhanced Benefits

Program

Software Focused

Help Desk

Software Updates

Newsletter

Monthly Service Reports

Engineering Focused

Remote Consulting

On-site Visits

User Alert Notifications

Periodic Meetings

…A Logical First Step to add Pro-active Expert Services

19

Benefits Guardianship Maximise (BG-Max)

• Ensures that advanced applications are kept at peak

performance and modified in line with changes to the

operating envelope to maximise benefits

• Tailored program offering range of expert services

and solutions: – Benefits Guardianship Program (base)

– Initiation services for Remote Monitoring

– Monitoring of on-line diagnostics (User Alert)

– Regular Performance Assessment & Reporting

– Periodic Review Meetings with Customer

– Preventative Maintenance & Tuning of application

– Change Management – modifications and technology refresh

20

Supporting Technologies & Solutions

Technology + Services = Customer Lifecycle Benefits

BG-Max Services

Proactive

Opportunity Assessment

Revive

Reactive

Attainment

Profit Stepper

Profit Stepper

Profit Suite Operator Station

Remote Data Visualization

Remote Process Monitoring

Loop Scout / CPM

Profit Expert User Alert

Benefit Assessment

Workforce Improvement

Data Collection

SE Shuttle

Performance

Assessment

21

Application

Support &

Training

Engineering

Labor

Remote

Services

• Honeywell offers comprehensive lifecycle service programs to sustain and enhance benefits from installed advanced solutions

• Honeywell offers flexible licensing options, like annual licensing, to deliver cost effective advanced solution benefits

• Honeywell offers remote services and on-site engineering labor programs to augment customer resources and capabilities

Aftermarket Services for Advanced Solutions

Modular, Cradle-to-Grave, Lifecycle Services to Drive Customer Value

22

Valero Wilmington APC Support Program

• Objective

– Augment customer support capabilities with resources and tools to

optimally maintain advanced process control (APC) applications at the

refinery site.

• Benefits Guardianship Program

– Software Maintenance and Troubleshooting

• Enhanced Benefits Program

– On-site Maintenance Visits

– Remote Consulting

– Proactive Alert Notifications

– Regular Meetings

• Added Options (Powered by Matrikon)

– Control Performance Monitor (CPM) for

APC Monitoring & Reporting

– On-site CPM Implementation & Training

23

Alcoa QUASAR Support Program

• Objective

– Deliver competitive advantage and measurable benefits to Customer and

Honeywell by providing improved alumina refining process automation through a

long term, co-sourced service agreement.

• Spans 7 alumina refineries in Australia, Brazil, Jamaica, Spain, and Suriname.

• Common suite of control and information applications

• Standard hardware and software to support value adding applications

• Support Services,

– Virtual services organization using ITIL Service Management Framework

– Consisting of Customer & Honeywell resources

– Service Level Agreement focused at sustaining (and extending) benefits

24

Shell Downstream GAME/ESP Support Program

• Objective

– Support Ensure Safe Production (ESP) program within

Shell downstream facilities. Run & Maintain

responsibility outsourced to Honeywell for Alarm

Management, Operations Management, Process

Historian and Field Advisor applications.

• Spans 30+ downstream facilities worldwide

• Multi-tiered levels of support

– Based on ITIL Service Management Framework

– Global teams provides Level 3 “follow-the-sun” support

– Dedicated team in India provide Level 2 “run &

maintain” using Shell laptops interfacing with Shell

Assist Desk and Service Management System.

– Close working arrangement between software test

team and development team in India

– ITIL Certified support engineers

• Managed Services approach – Delivering according to Service Level Agreement

25

Q & A

Daren Lewis

Global Services Director Advanced Solutions [email protected]

Gary Peacock Global AMS Marketing Leader Advanced Solutions [email protected]

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www.honeywellprocess.com