Sustaining Your Profit with Help from Aftermarket Services

With Help from After Market ServicesSUSTAINING YOUR PROFITSTathagata Basu

June 22, 2016

Honeywell Confidential - © 2016 by Honeywell International Inc. All rights reserved.

Typical Application Benefits

Sustaining These Benefit Levels is the Real Challenge!

0

1

2

3

4

5

6

7

Operator Training & Simulation, Asset

Management

Production Management

Advanced Planning & Scheduling

Blending & Movement

Management

Operations Management

Advanced Process Control &

Optimization

An

nu

al B

enef

its:

$ M

illio

ns

2.0

1.5

1.0

0.5 Typ

ical

pay

bac

k p

erio

ds

(yea

rs)

Typical Benefits Range of $10M - $50M Per Year Per Site (Actual Benefits Depend on Industry & Scale & Life Cycle)


20

40

60

80

100

120

0 6 12 18 24

Be

ne

fits

(as

% o

f o

rigi

nal

)

Time (months)

No Maintenance

Basic Maintenance

Reactive Maintenance

Proactive Maintenance

Opportunity Assessment

Understanding the High Cost of Neglect

• Good initial

benefits from

Advanced

Applications

• Potential for rapid

degradation of

benefits without

proper monitoring

and maintenance

Position after circa 12 months

No Maintenance 50% loss

Basic Maintenance 20% loss

Reactive maintenance 10% loss

Proactive Maintenance 5% loss

Opportunity

Assessment+5% gain

Related to sample data: Results will depend

on many factors, so indicative only.

“…..applications can quickly degrade to yield nominal benefits of <25% if they are not

properly monitored and maintained from point of installation”….Customer, Honeywell

Users Group


The Benefit Sustainability Issues

Reduce Total Cost of

Ownership

Knowledge

Management

Optimize or Sustain

Performance

Maintaining and

enhancing

performance of

Applications

•Health monitoring

•Latest functionality

•Technology Refresh

•Address changes to people,

processes, plant, equipment and

operating conditions

Failure to address

support early will

greatly reduce long-

term benefits

•Dealing with scarce resources

•Leverage Technology

•Consistent Asset Mgmt

strategies

•Avoid obsolescence

Difficulty in finding,

training and retaining

skilled support

resources

•Awareness / training

•End user handover and acceptance

•Knowledge transfer & retention

•Consistency for multi-site installations


BGP Optim

a

BGP Perfor

ma

BGPPlus

BGP“On demand” services to provide technical

resources for non-periodic activities

Benefits Guardianship Tiered Services

In simple terms:

BGP Performa is a collaborative

service whereby Honeywell commits to

jointly maintain agreed plant / unit

performance targets, with regular

progress reviews.

Honeywell will provide remote

monitoring and alerting to issues

likely to impact on Performance targets,

with the recommended (and

prioritized) actions that the customer

should undertake.

Honeywell will work with the customer

to ensure their in-house resources are

suitably skilled to undertake the

actions and tasks.


Methodology for BGP Performa

Assess

Sustain Remediate

Honeywell conduct reviews to

assess health of systems,

applications, performance

and in-house skills

Honeywell performance

specialists monitor

outcomes, identify the root

cause of issues and

recommend intervention by

customer to sustain

performance and

long-term benefits

A sustainable

remediation

action list is

created to

address areas

of vulnerability

and to focus

attention of

in-house skilled

resources

An audit needs to be conducted to

establish baselines and areas for

remediation

Remediation needs to be completed to

address gaps and issues

1

23


Change

Management

Proactive Service

Management

Reporting

Performance

Monitoring &

remote

connectivityContract

Performa

nce

Metrics

How does BGP Performa deliver


Identification, Guidance and Competency Management

Proactive Service

ManagementHoneywell will minimize

incidents by proactively

identifying issues and

guiding on appropriate

interventions

• Service request response time and resolution tracking will improve resolution

times and reduce incidents

• Focused attention to vulnerabilities will help prioritize the actions needed to

remain aligned to customers’ goals and performance targets



Connect, Monitor, Predict and Support

Performance

Monitoring &

remote

connectivity

• Diligent remote monitoring of performance metrics and the lead indicators likely to

impact key KPIs

– Reactive alarming on imminent events and on trended metrics

– Proactive expert data analysis to identify performance issues, longer-term trends

and to assist in planning

Honeywell experts will

remotely monitor

performance and provide

proactive service

management



Plan, Test and Advise

Change

Management

• Assist with planning of Software Migrations and process changes

• Evaluate and recommend planned changes to achieve business goals

• Participate in application reviews

Honeywell will ensure

system changes work well

and continue to deliver

against expected

objectives



Status, Alerts and Recommendations

Reporting

• Honeywell provide regular status updates, recommendations and prioritised tasks.

• Established monthly, quarterly and annual reporting schedule

• Deliver appropriate information to different stakeholders and users

• Periodic site review meetings to evaluate metrics and address gaps

Honeywell will provide

regular status updates and

recommendations

appropriate to the different

needs of stakeholders



BGP Performa: Collaboration


BGP Performa: Performance for APC

• Disk

•CPU

• Memory

• Network

• Data

• Events

• URT Services

• Comms

• Historian

• App. Execution

Indicative

$ Benefit

• Inferential prediction qualities

• CPM for related PID loops

How well is process

being optimized?

Early Warnings

Uptime

Obj Functionality

How is the capacity to add

value used?

How necessary is the

controller?

How much value is the

controller generating?

Is the controller operating

smoothly?

How well are CV constraints

being honoured?

Usefulness

Criticality

Value

Acceptance

Reliability

How well is

controller being

utilized?

This example is from APC, as

each Product Line has it’s own

unique set of performance

calculations and metrics


Plant

Crude Unit

CDU

APC Attainment

Usefulness

CV

Violation of hard limits

MV

Clamping

DATA

Reliability Acceptance Value Criticality

Objective Functionality

Inferential Attainment

Uptime

Historical trend

STAB SPLT

FCCU

MFRR DEBUT

Performance Monitoring Example: Advanced

Process Control


Key B

en

efi

ts

What are key benefits of BGP Performa?

• Faster incident response and Resolutions

• Reduced number of incidents and increased uptime

• Management of change and technology upgrades

• Cyber Security protection

• More effective deployment of in-house resources

Reduce Total Cost of

Ownership

• Customers can focus on their core competency

• Honeywell guide the customer to manage results

• Performance management to sustain benefits

• Application and process loop optimization

• Improved in-house skills development

Improve Operational

Effectiveness