Smart Operations – Enabling Optimization Through Connected Enterprise

Smart Operations Enabling Optimization through Connected Enterprise

2 © 2015 Honeywell International All Rights Reserved

Outline

• What is Smart Operations

• Value Proposition

• Engagement Approach – Examples

• Q & A


Background

Operational challenges have remained the same

• Technology, People, Processes are key factors for success

• Industry Trends

– Resource challenges – “Doing more with less and less” – Market volatility

Unfortunately, traditional technology approaches are still coming up short in terms of Value Delivery and Sustainability


Background

BUT we see a change coming! • Internet of Things / Increased seamless Connectivity

– Mobility / Cloud / … • Applications and Analytics development specific to HPI

– Enabling integration of information – Work process transformation


Smart Operations

Value-driven, consultative approach to technology deployment for the Enterprise • Connects operational decisions to business objectives

to improve profitability without compromising safety and reliability.

• Transforms existing work processes to ensure sustainable technology deployment

Enabling Optimization through Connected Enterprise


Enterprise Challenges

• Are you facing challenges in driving the operational performance of your assets and sites to align with overall business goals?

• Can you monitor the performance of these assets in real time to drive actions where you can be competitive and generate value for your shareholders?

• Are you getting the most out of your technology and people investments?

Enabling Optimization through Connected Enterprise


Typical Operations

Operating Assets

Bringing ‘Smart’ to the Operations

Data Integration

Analytics

Reporting / Dashboards

EPW Offshore High Priority Opportunities Potential Impact

15,000

0

0

10,000

5,000

12,500

7,500

2,500

1501005025 75 125

Alex

Auger

Boxer

Brutus

Bullwinkle

Cognac

17,500

Mars

Salsa

BEQ

per D

ay

Estimated Project Duration in Days

Auger

Mars

Production at RiskEstimated Production Increase


15,000

0

0

10,000

5,000

12,500

7,500

2,500

1501005025 75 125

Alex

Auger

Boxer

Brutus

Bullwinkle

Cognac

17,500

Mars

Salsa

BEQ

per D

ay


Auger

Mars


15,000

0

0

10,000

5,000

12,500

7,500

2,500

1501005025 75 125

Alex

Auger

Boxer

Brutus

Bullwinkle

Cognac

17,500

Mars

Salsa

BEQ

per D

ay


Auger

Mars

Production at RiskEstimated Production Increase Production at RiskEstimated Production Increase

Next in WS queue- Currently

delayed due to Gustav and Ike

Being executed this week

Re-alignment of WS foremen may allow for project to be moved up in the schedule

Asset likely unavailable for 2-3

weeks due to storm damage

Obtaining a lift boat is currently

delaying execution

Can’t complete WS jobs due to A-

8 drilling (2,000 BEQ/day)

Moved out to end of

December -Increased risk of BEQ / day loss by 9,200

Storm damage will create significant

delays in execution

Enterprise Decision Support System

Evaluate Opportunities

Prioritize / Execute

Work Process Transformation Aligning Business Objectives to Operational decisions Closing the Loop to drive Efficiency, Safety, Reliability and Agility


Who can benefit from Smart Operations

• Multiple, geographically distributed sites/assets

• Large site with multiple processing areas, integrated complex

• Competitive market segment / geographical region

• Culture – Centralized key functions or organization structure to drive

key business initiatives via a corporate team – CRM, ERP,.. – Focus on value delivered – has an organization to support


Who can benefit from Smart Operations

NEEDS

• Getting more Value from technology investments • Consistency and Standardization • Driving a Step Change in the organization

– To be Best in Class – Market competitiveness: Maximizing

performance of the assets


Smart Operations for Enterprise

… Drives Superior Safety and Reliability

Performance

… Improves OPEX Efficiency across the

Enterprise … Improves

Operational Agility

• Drive operational consistency to improve staff efficiency - consistent use of technology and work processes.

• Improved decision support system to minimize unplanned shutdown and reduce cost of production

• Real-time Surveillance of critical equipment and early notification to drive proactive reliability practices

• Provide increased situational awareness to make the right decisions

• Provide the relevant business and operational information to the right people at the right time to make the right decisions.

Driving Best in Class Performance consistently across the Enterprise


Smart Operations is unique to Honeywell

Value Driven Technology Deployment

Proven proficiency delivering value through consulting-based approach to technology deployment. HPS’s portfolio of technology, associated engineering services and on-going application support allows customers to drive ROI on technology and people investments.

Work Process Transformation

Operational knowledge allows HPS to drive the work process transformation required to integrate information from operating assets and processing plants to drive sound business decisions.

Enabling Enterprise Optimization

12 © 2015 Honeywell International All Rights Reserved Connecting the Enterprise to drive Smart Decisions

Incremental Value

Value Area How

Improved OPEX Efficiency Lower Production costs / unit

produced

Maximizing Assets Performance

Driving consistent operational practices aligned with business objectives. Provides role based information and transforms work processes to drive faster appropriate operational decisions at the site level.

Reliability and Safety Lower unplanned

shutdowns/outages

Improving Situational Awareness

Real time proactive surveillance and early notification for critical equipment / assets across the enterprise. Enabling Proactive Operational Reliability practices.

Operational Agility Maximizing Profitabillity

Faster response to market

conditions

Business process transformation; Integration of operational information into Business systems allowing for better logistics, supply chain decisions at the enterprise level.


Executive management workshop to validate business objectives Deliverables: 1.Expected Value

Capture 2.Identified business

drivers

Workshops to engage key stakeholders at the sites Deliverables: 1. Budgetary proposal

for technology deployment

2. ROI on potential investment

3. Deployment Road-map

Deliverables: 1.FEED – identified

technologies to be deployed, map of new work processes

2.Firm proposal – ROI based schedule and pricing

3.Identify Business / operational KPI

Deliverables: 1.Transformed work

processes 2.Implementation of

technology 3.Audit of the

identified KPI / Baseline the delivered value

Deliverables: 1.System to track

KPI 2.Support

structure (remote, site visits) to ensure business results

3.Scheduled audits/reviews of KPI

Phase 1 Vision & Concept

Phase 2 Discovery Process

Opportunity Assessment

Phase 3 Front End

Engineering (FEED)

Phase 4 Project

Execution

Phase 5 Life Cycle

Management (A360)

Engagement Approach – How we Deliver it?

Consultative Scalable Approach


PHASE 1 Example - Vision / Concept

• Identification and Validation of Business Drivers

• Establishing a Base line on Expected Value

• Alignment of Business Drivers to Operational Objectives


Phase 2 Example - Opportunity Assessment

• Workshops to Engage with the key stakeholders from different

functional groups within an organization

• Definition of Opportunities


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Business Drivers Solution Layout Consulting Services LayoutCustomer OpportunitiesX Accident Avoidance X X X X X X XX X Downtime Avoidance X X X XX X Loss Prevention X X X X X X X X X Asset Reliability X X X X X

X Boundary Management X X XX Emission Compliance X X X X

X Procedural Management X X X X X XX X Operators Training X X X

X Simulation (Training & validation) XX X X Alarm Rationalization X X X X X

X Alarm Performance Management X X X X XX X X X X Early Process upset Identification X X X X X

X Increase Process Repeatability X X XX Operators data errors X X X

X X X X X Improve Emergency Response X X X X X X X XX X X Auditability X X X

X Safe Profitability X X X X X X X X XX Abnormal Situation Management X X X X X X

Business Drivers Solution Layout Consulting Services Layout

PHASE 2 Example – Discovery Process


Phase 3 Example – FEED & BPM

Solution Mapping

Work process Maps

ROI Driven Execution Plan


Output of our Consulting Study – a Strategic &Tactical Roadmap

PHASE 3 Example – ROI based deployment model

Real Time Reporting

And Visualization

KPI Dashboards Integration

Analytics Critical Equipment

Monitoring

Year 1 Year 1 Year 2 Year 3 Year 4

Proactive Surveillance

System

Site Level Deployment Enterprise Deployment

Business System

Integration

Operations Monitoring

System

ROC setup

Uniformance Insight iForms

Uniformance KPI IX

Uniformance Sentinel

Uniformance Sentinel Integration with KPI

IOM IOL

Mobility applications

ERP integration CMMS integration

Collaboration station Cybersecurity


Real-World Impact

O&G Customer in GOM – Exception Based Surveillance New Orleans Based Surveillance Center for Deep Water Assets in the Gulf of Mexico and off the Coast of Brazil. ~300 Wells across 7 GoM Floating Structures, 4 GoM Fixed Structures, 2 Brazil FPSOs, 3 Future TSPs/FPSO. What was the Value Delivered ($30MM/year in direct benefits): • Reliability and Safety

• Prevent Production Deferment • Prevent Equipment Failure

• People Enablement - Increased Staff Work Efficiency Technology deployed: - Asset management solution used for Data Management and Analytics

- 23 Million data points, 6000 Analytics, 2000 pieces of equipment

Offshore & Onshore Control Rooms Centralized Surveillance Center Asset Engineer Team Rooms

$30MM/year in Benefits


Real-World Impact

A Refining Manufacturing Information Intelligence System (MIIS) Operational data driven decision support system with consistent, role based views of key performance indicators across 14 manufacturing sites. What was the Value Delivered: • Improved OPEX Efficiency

• Improved unit operations • Energy savings

• Reliability and Safety • Reduction in process upsets • Standardization of performance and process monitoring

• People Enablement - Build intellectual capital for future generation Technology Deployed: • Consultative Approach – Benchmarking study

• Intuition Executive, i-KPI, Operations Monitoring

• Consistent and standardized KPI calculations

• Dashboards with actionable information supported by rich drill-downs to identify issues and opportunities

KPI /Dashboards Process Monitoring Collaborative networks

• Near real time process and equipment monitoring that link unit level process metrics to higher level business KPI’s supported by rich graphical and tabular drill-downs

• Collaborative networks for escalation and resolution of issues from plant level users to subject matter experts


Typical Operations

Operating Assets

Bringing ‘Smart’ to the Operations

Data Integration

Analytics

Reporting / Dashboards


15,000

0

0

10,000

5,000

12,500

7,500

2,500

1501005025 75 125

Alex

Auger

Boxer

Brutus

Bullwinkle

Cognac

17,500

Mars

Salsa

BEQ

per D

ay


Auger

Mars



15,000

0

0

10,000

5,000

12,500

7,500

2,500

1501005025 75 125

Alex

Auger

Boxer

Brutus

Bullwinkle

Cognac

17,500

Mars

Salsa

BEQ

per D

ay


Auger

Mars


15,000

0

0

10,000

5,000

12,500

7,500

2,500

1501005025 75 125

Alex

Auger

Boxer

Brutus

Bullwinkle

Cognac

17,500

Mars

Salsa

BEQ

per D

ay


Auger

Mars

Production at RiskEstimated Production Increase Production at RiskEstimated Production Increase

Next in WS queue- Currently

delayed due to Gustav and Ike

Being executed this week

Re-alignment of WS foremen may allow for project to be moved up in the schedule

Asset likely unavailable for 2-3

weeks due to storm damage

Obtaining a lift boat is currently

delaying execution

Can’t complete WS jobs due to A-

8 drilling (2,000 BEQ/day)

Moved out to end of

December -Increased risk of BEQ / day loss by 9,200

Storm damage will create significant

delays in execution

Enterprise Decision Support System

Evaluate Opportunities

Prioritize / Execute

Work Process Transformation Aligning Business Objectives to Operational decisions Value driven technology deployment