Shangri-La Hotel | November 16 - 17, 2016 | Jakarta Indonesia

ABB’s Enterprise Software Digital Transformation Summit 2016

Simon Wrench, Asset Performance Management

Challenges in your Industry

Preserve Export Levels against Reduced O&M

Reliable Power

Information everywhere

Run Assets for Longer Maintain Safety

Maintain & Operate

Efficiently

© ABB Group

November 15, 2016 | Slide 2

Firstly - The Goal!Asset Management is a long game..

• To help asset intensive customers make

short term (maintain/repair) and long term

(replace) asset management decisions

based on a holistic understanding of

asset condition and underlying risk, in

alignment with the objectives and mission

of their utility/industry.

• To enable asset managers make

engineering, economic and financial

decisions that balance costs, risks and

performance

© ABB Group

November 15, 2016 | Slide 4

Secondly - ISO 55000/PAS 55Best Practice & Questions to Address

What are my assets? Where are they?

What is the condition of my assets?

What is the risk associated with the failure of my

assets?

Is the risk manageable?

If not, what corrective action needs to be taken in:

The Short-Term

The Long-Term

Of the above actions, which actions yield the best

return?

How to optimize actions/decisions with a “fleet”

perspective noting budget, performance and other

constraints?

Is the process repeatable, auditable and justifiable?

PAS 55/ISO 55000 Holistic approach to asset management reinforces the following best practices:

Alignment with the Business Plan

Risk Evaluation and Mitigation

Life Cycle Cost Management

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 5

Technology

within

operations

transforming

the use of data,

for insight and

automation

IoTProcesses

Operations MaintenanceSupply

Chain

Assets

Advanced Analytics

Technology is a Critical Part of your Operation

Predictability,

safety,

efficiency

Trucks, trains,

drills, motors,

power

Insight &

control from

corporate to

the operator

Increasing Automation is Key

IT/OT Convergence Transforms Real-time Data into Actionable InsightsDrive Operational Excellence & Automation

Information Technology Synthesizes big data into critical insights and automated actions

Insights drive just-in-time work to optimize enterprise

Large volumes of data for visibility into

condition and status

Operational Technology

Monitors and controls critical assets

31

2

Benefits of the IT/OT Converged Enterprise

Respond fasterto real time conditions

Gain insight for business process improvement

Prioritize work to reduce the risk of failures.

1

2

3

8

Data is the new

Oil

Sparking the

4th Industrial

Revolution

IoTDevices

InsightsNew Business

ModelValue

OT

Advanced Analytics

Data is the New Oil…

Question: Does anyone know who this is?

© ABB Group

November 15, 2016 | Slide 9

Next Question: What does he do wrong?

How do we?

…Analyse everything then filter 1st level

of data and automate actions where

possible…

. . . Manage the exceptions to help

you drive your transformation!

Gather your data and information

about all your Assets. . .

Manage Exceptions

Evolution of Analytics

Source: Gartner (February 2015)

Asset Health

Select the model that best meets your equipment monitoring needs and organisation’s objectives.

Empirical models – Statistical methods predict deviations from normal (i.e. vibration, temperature,

pressure, etc)

Asset Health Indices – Limited subjective, weighted attributes

First-principles models – Models physical limitations and behavior of equipment using deep technical

expertise

Hybrid approach – Typically ad-hoc. Combine approaches

No one approach may meet all objectives so flexibility is key

Prescriptive Model Approaches

Prescriptive Analytics for Asset Performance

CollectUnified view of all

asset data in

proven analytics

platform

1Predict

Algorithms codify

experience to

predict and

prioritise risk

2Inform

Industry-standard

KPIs and expert

decision support

3Act

Prescribe

Automate

Perform

4

Asset Health CenterBlends Business Intelligence and Asset Analytics

Performance ModelsBI & Asset

Analytics

Enterprise

Asset and Work

Management

Data Processing and

Analytics

All Data Sources:

• Sensors

• Historian

• Databases

• Spreadsheets

Collect Asset Data Make it Intelligent Process It Make it Available

Make it Actionable

Third-Party Models

© ABB Group

November 15, 2016 | Slide 14

Asset Health CenterPrescriptive analytics turning data into action

Actionable intelligence – not just information

Integration of offline data, maintenance records, cost,

work management, SCADA, and other disparate data sources

ABB expert knowledge built into the solution

1

2

3

15

© ABB Group

November 15, 2016 | Slide 15

The ability to assess and manage critical assets = Operational Excellence

How Prescriptive Analytics Provide Value?

Risk Management

• Monitor Fleet and decrease risk of failure on Critical Assets

• Track and trend individual asset data

• Notifications where asset health is deteriorating

• Recommend Actions to correct problems before failure

• Improve stakeholder communication – Management & Regulators, etc

Increase Productivity

• Focus maintenance budgets on assets with high criticality & ROF

• Better planning of resources with performance predictions

• Recommend actions to correct problems and extend life

• Continuous monitoring eliminates need for some routine inspections and testing

• Free up SME time to focus on high value activities.

Case Study: American Electric Power

Situation:

33% transformers over 50yrs old

18% over 60yrs old

Time based maintenance – sub-optimal

Asset data across multiple platforms - ↓ Productivity

Equipment run to failure - ↑ risk

Reliance on manual processes – Inefficient and error prone

Challenge:

Prevent failures, optimise maintenance and support asset

renewal prioritisation

Case studyAEP

Aging infrastructure

Control O&M spend

Reduce asset failures

Prioritise asset renewals

Challenges

Optimised O&M spend

Centrally-focused intelligence

Predictive insights = prioritised

response

Informed repair /replace

decisions

Codify staff expertise

No incremental platform costs

Benefits / results

Solution: Asset Health

Center

© ABB Group

November 15, 2016 | Slide 18

Asset Health Center - Business Case

Near term benefits

Organised & automated analysis with OT-IT integration

Highlights red-yellow-green conditions, “outliers,” and trends of

interest “The Exceptions”

Avoids capital cost of unexpected failures

Avoid/re-deploy O&M $ thru condition awareness

Better insight into remaining life and replacement priority

Medium & Long Term

Maturing sensing & decision support technology will escalate benefits

No added platform costs - cost to achieve includes monitoring only

Support the

Workforce

Improve Asset

Productivity

Improve Asset

Reliability

Manage the

Exceptions

Extend the life of

AssetsPrevent Failures

For Success

THANK YOU

© ABB Group

November 15, 2016 | Slide 21

Any Questions?

If you have further questions, please contact me at:

Presenter : Simon Wrench

Company: ABB Enterprise Software

Contact phone : +61 422 090 702

Contact e-mail : Simon.Wrench@au.abb.com

I am available at the AHC and Analytics Showcase