Smart Operations: Sustaining Optimization through a Connected Enterprise

2015 Honeywell Users Group

Europe, Middle East and Africa

Smart Operations: Sustaining Optimization through a

Connected Enterprise

Yiannis Bessiris, Honeywell

2 © 2015 Honeywell International All Rights Reserved

Outline

• Transformative time in the Industry and Challenges

• Smart Operations: Technology Enabling Business

Transformation

• Value Delivered

• Engagement Approach


Industrie 4.0

Are We Ready?!

Transformative Time

Cloud

Big Data Predictive Analytics

Connectivity

Industrial Internet of Things

Mobility

Gartner’s 2013 Predictions

“Key business transformation drivers”


HPI | An Industry in Change

Data Has No Value … Until You can Translate it into Action to Become Agile

It is estimated that 40 exabytes (4.0 x 1019) of

unique new information

will be generated worldwide this year

Shell …”Over 40 Pbyte (1015 or quadrillion) of data

today but growing by several factors in coming years”


Challenges: Need for a Paradigm Shift

…Leading to

*Global Energy Talent, 2015

** PWC, 2014

The need to transforming

how things are done to

remain competitive, taking

advantage of:

Customer Challenges…

average age of production engineers in

North America, leading to a 38%

forecasted shortage in talent by end of

decade*

Workforce

Expertise 51

More with

Less 40%

estimated OPEX reduction (vs. ‘14)

needed within fields in the North Sea to

remain vital at current oil prices**

Data

Overload/

Accessibility

22% of average annual revenue was lost

due to not being able to leverage

information collected***

Market

Pressure 40%

percent of process upsets caused by

human error. Increased competition &

more frequent market volatility is

making uptime even more critical****

• Business process

management and redesign

• Industrial Internet of Things

• Technology enablers:

Cloud, Mobility, Analytics

• Operational consolidation

• Reduced Lifecycle cost of

technology deployment

• Performance contracting

***Oracle “From Overload to Impact: An Industry Scorecard,” 2015

****ARC “Improving Margins with Smart Operations,”2015


Digital Transformation

Powered by Mobility, Cloud and OPC UA

1. Connectivity

Easier integration leading to pervasive analytics

2. Real-time

Now and always up to date information

3. Collaboration

Work process transformation. Knowledge retention

OPC UA Connectivity


Alarm & Operations

Management Solutions

Profit Solutions

Simulation & Competency

Solutions

Product Management,

Planning & Scheduling Solutions

Data, Analytics &

Collaboration Solutions

Industry Vertical

Solutions

Cloud

Mobility


Suite of Honeywell Advanced Solutions

For Improved Safety, Reliability, Efficiency and Sustainability


Alarm & Operations


Profit Solutions


Solutions

Product Management,


Data, Analytics &


Industry Vertical

Solutions

• Advanced Process Control • Blending & Movement Management

• Process Design • Operator Competency • Corrosion

• Production Management • Advanced Planning & Scheduling

• Enterprise Collaboration • Uniformance (PHA) • Uniformance Sentinel • Sentinel Mine

• Digital Suites for Oil & Gas • OptiVision

• Dynamo Alarm Management • Dynamo Operations Management





Alarm & Operations


Profit Solutions


Solutions

Product Management,


Data, Analytics &


Industry Vertical

Solutions








DynAMo® Alarm & Operations Management

Improved Plant Safety, Availability & Compliance across Enterprise

Alarm Management

Stale and Standing Alarm

Safety Bypasses and Inhibits

Critical Alarm Limits

Boundaries and Constraints

Operations Logbook

Secure Shift Handover Process

Shift Log History Compliance

Critical Alarm Limit Recording

Operations Monitoring

Critical Limit Deviations

Excursions from Production

Envelopes

Integrity Operating Windows

Next generation integrated Suite goes beyond the Operator and

enables new workflows to better manage Operations integrity


DynAMo® Alarm & Operations Management

Improved Plant Safety, Availability & Compliance across Enterprise

Alarm Management

Stale and Standing Alarm

Safety Bypasses and Inhibits

Critical Alarm Limits

Boundaries and Constraints

Operations Logbook

Secure Shift Handover Process

Shift Log History Compliance

Critical Alarm Limit Recording

Operations Monitoring

Critical Limit Deviations

Excursions from Production

Envelopes

Integrity Operating Windows

`

Business

Layer

Process

Automation/

Operations

Plant

Management/

Maintenance

Operator

Next generation integrated Suite goes beyond the Operator and

enables new workflows to better manage Operations integrity


DynAMo® Mobility

One Single, Vendor-Neutral, Mobile Enabled Solution

Situational Awareness and Collaboration

Honeywell “Pulse”





Alarm & Operations


Profit Solutions


Solutions

Product Management,


Data, Analytics &


Industry Vertical

Solutions








Uniformance Asset Sentinel

Real-time Performance Monitoring: Asset Surveillance

Asset Sentinel


Uniformance KPI Management

Right Decisions Faster, Transforms Work Practices, Drives Collaboration

Process monitoring results rolled-up

and combined with other business KPI’s

• Role-based KPIs

supporting different

functional key areas of

data (like HSE, financial,

product, reliability, ...)

for each role

• Drill down dashboards

to share root causes

• Real-time monitoring

• Use SharePoint’s

collaboration and work

flow





Alarm & Operations


Profit Solutions


Solutions

Product Management,


Data, Analytics &


Industry Vertical

Solutions








Intuition ® Executive (IX)


Intuition® Executive (IX)

IX Closes the Loop & Enables Smart Operations

Continuous

Improvement

Converts your

business and process

data to key metrics

Provides visualization,

analysis and enables

collaboration

Monitors progress and

captures improvements,

knowledge

Workflows to ensure

appropriate actions are

implemented

Collaboration

Work Flow

Metric Management

Data/ Actions


Intuition® Executive Architecture

IX Closes the Loop & Enables Smart Operations

Intuition

Solutions

Components

Intuition Core

Data Access

Services Calculations

Reporting Notification

Workflow

Model

Management

Intuition Executive

Mobile

Framework

Visual

Controls

Event

Management

Event

Archive

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rma

nc

e

KP

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o

Ala

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nt

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o

Op

era

tio

ns

Mo

nit

ori

ng

Intuition Applications

… F

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re

De

ve

lop

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Ap

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ati

on

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3rd Party

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ati

on

2

Un

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e

As

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O

Mo

bilit

y


Operating Assets

Data Integration

Analytics

Reporting / Dashboards

Enterprise

Decision Support System

Evaluate Opportunities

Prioritize / Execute

Data Knowledge Action

Work Process Transformation

Aligning Business Objectives to Operational decisions

Bringing ‘Smart’ to the Operations


Solutions to Drive Real Value

Connecting the Enterprise to drive Smart Decisions

Incremental Value Challenges

2-5% increase in Operating

Margin

Market

Pressure

Operational Agility

Faster responses to market conditions

5-15% Reduction in OPEX

More with

Less

Operational Excellence

Lower production costs/ Improved OPEX Efficiency

Workforce

Expertise

Competency Management / Collaboration

Knowledge Retention

Improving Situational Awareness

Data

Overload/

Accessibility

Real time Exception Based Surveillance

Improved Safety and Business Performance

10-15% Reduction in unplanned production deferments

Smart Ops Solutions

30-50% reduction in

start-ups

Higher productive

workforce:

$350K/Operator (API study)


Smart Operations Deployment

Enterprise Deployment of Key Initiatives

Asset Utilization

Condition Based Monitoring

Operations Excellence

Competency Management

Real Time Production Monitoring

Energy Management

Translates into Faster Deployment and Higher ROI


Manufacturing Information Intelligence System (MIIS)

Enterprise Connectivity Collaboration Real Time Analytics

• Integration and visibility across functions

• Enable near real time performance monitoring

• Standardization of KPI definitions

• Fact based decision support system

• Collaborative Environment monitors and drives

accountability

Reliance Industries Ltd

MIIS Transformation Objectives


Business Transformation Priorities

In keeping with the requirement of time, Reliance has identified areas where

“transformation” is a necessity.

“Transformation” areas include:

• HSEF

• Operations

• Reliability Engineering and

Maintenance (REAM)

• Technology

• Automation

• Energy

• People

• Values

• Reliance and Honeywell are partnering towards Operational Excellence through automation by adopting best practices tailor made to fit the purpose.

• A significant improvement towards the objective has started to surface


Reliance Industries Ltd.

Manufacturing Information Intelligence System (MIIS) Initiative

Operations

Management

Operator

Competency

Performance

Management

• Operations Monitoring and

Limits management

• Operator logbook for effective

shift handover

• Develop, implement & maintain

High Fidelity Operator Training

Simulator for every plant, at all

sites

• Information integration

• Role-based KPIs and

Dashboards

• Real-time Monitoring and

Collaboration

• Maintaining Operational

Integrity (Safety)

• Standard work processes

• Improved situational

awareness & communication

• Enhance Operator

Competency

• Increase productivity

• Improved operational

consistency

• Energy savings

• Visibility and Agility



Great Example of A Connected Enterprise

Enterprise Performance Management – Real Time KPIs for 2000+ Users (Role-based)

– Connecting 80+ base systems and 14 sites

– 18 Functional Areas

Drill down dashboards

Transforms work practices

Converts data into knowledge

Drives collaboration

Note: Above screenshot is from

Honeywell’s demo system



Rich Drill-downs To Get To Metrics And To Decisions Faster


Knowledge Capture: Collaborate with Experts

• Tools for the end-user to

collaborate with other

peers and experts

• Capture the knowledge of

your experts with

collaborative tools ‒ Training junior staff or for

when experts are

unavailable

• Improve personnel

productivity ‒ Searchable information in

document libraries, wikis


Collaboration to drive Actions: Closing the Loop

• Ensuring missed targets,

operational gaps to Actions

• Morning meetings

• Refinery manager meetings


Shell Deepwater Production Surveillance

Connected Assets and Analytics driving Smart Operations

New Orleans Based Surveillance Center for Deep Water Assets in the Gulf of Mexico and off the Coast of Brazil – ~300 Wells across 11 Floating Structures & 2 FPSOs

– 23M Data points processed per day

– 180K daily executed anomaly detections

Benefits – Improved Reliability and Safety

– Prevent Production Deferment

– Prevent Equipment Failure

– People Enablement - Increased Work Efficiency


A Structured Methodology


Eliminate Waste, Increase Efficiency,

Focus on High Value activities



Surveillance Business Process – An example



Identify, quantify

(ROI) specific

opportunities

Develop a ROI

Based

Deployment

Road-map

Develop solution

maps, KPI driven

execution plan,

organization

teams for

deployment.

Review/update

business

processes (BPM)

Develop a

delivery model

Deployment of

technology with

transformed

work processes

Facilitate Change

management

Program

management to

monitor

progress, track

benefits

Develop a

Support model

(remote, site

visits) to assist

in ensuring

continued

business results

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)

Validate

business

objectives

Developing a

business case

with

Benchmarking,

Workshops

How We Deliver

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


Engagement Approach

Example - Opportunity Assessment

• Workshops to Engage with the key stakeholders

from different functional groups within an organization

• Definition of Opportunities


Occupational S

afe

ty

Pro

cess S

afe

tyR

egula

tory

Com

plia

nce

Opera

tional E

ffectiveness

Info

rmation M

anagem

ent

Opera

tions M

anagem

ent

Advanced A

larm

Managem

ent

Asset M

anagem

ent

Opera

tors

Tra

inin

g S

imula

tors

AP

C (

Early E

vent D

ete

ction)

Inte

llatr

ac

One W

irele

ss

Pro

cedura

l O

pera

tions

Ala

rm P

erf

orm

ance A

ssessm

ent

Ala

rm P

hilo

sophy W

ork

shop

Ala

rm R

ationaliz

ation S

erv

ice

Boundary

Assessm

ent

Benchm

ark

ing / G

ap A

naly

sis

Pro

cedura

l C

onsultin

g

Benefit A

naly

sis

(site A

dult)

Valu

e A

udit

Business Drivers Solution Layout Consulting Services LayoutCustomer Opportunities

X Accident Avoidance X X X X X X X

X X Downtime Avoidance X X X X

X X Loss Prevention X X X X X X X

X X Asset Reliability X X X X X

X Boundary Management X X X

X Emission Compliance X X X X

X Procedural Management X X X X X X

X X Operators Training X X X

X Simulation (Training & validation) X

X X X Alarm Rationalization X X X X X

X Alarm Performance Management X X X X X

X X X X X Early Process upset Identification X X X X X

X Increase Process Repeatability X X X

X Operators data errors X X X

X X X X X Improve Emergency Response X X X X X X X X

X X X Auditability X X X

X Safe Profitability X X X X X X X X X

X Abnormal Situation Management X X X X X X

Business Drivers Solution Layout Consulting Services Layout

PHASE 2 Example – Discovery Process


Output of our Consulting Study – a Strategic &Tactical Roadmap

Real Time

Reporting

And

Visualization

KPI

Dashboards

Integration

Analytics

Critical Equipment

Monitoring

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

PHASE 2 Example – ROI based deployment

Year 1 Year 2 Year 3 Year 4


PHASE 3 Example – Business Process Modeling


Phase 3 Example – FEED & BPM

Solution Mapping

Work process Maps

ROI Driven Execution Plan

2015 Honeywell Users Group

Europe, Middle East and Africa

Smart Operations: Sustaining Optimization through Connected

Enterprise

Yiannis Bessiris, Honeywell