© ABB Group March 25, 2010 | Slide 1

Asset Management of Analyzers

Daan Otter PPA Dag 2010

© ABB Group March 25, 2010 | Slide 2

ABB Products and Systems from 5 divisions

Robots, peripheral devices and modular manufacturing solutions for industry

ProcessAutomation

Sales: $5.0 billion

Control systems and application-specific automation solutions for process industries

Substations, FACTS, HVDC, HVDC Light, power plant & network automation

Power Systems

Sales: $4.0 billion

Robotics

Sales: $1.7 billion

Transformers, high- and medium-voltage switchgear, breakers,automation relays

Power Products

Sales: $6.4 billion

AutomationProducts

Sales: $5.9 billion

Low-voltage products, drives, motors, power electronics.

n Market-leading positions in most key product areasn Integrated solutions for grid reliability, productivity and energy efficiencyn Robust global value chain to serve established and emerging marketsn Extensive global network of value-added channel partnersn Market leader in industrial servicesn ABB Installed Base value USD168 Billion

© ABB Group March 25, 2010 | Slide 3

Value Chain & Installed Base Management

§ Installed Base (IB)§ Consists of ABB produced products and systems

delivered to ABB customers

§ Starts at installation and ends at de-commissioning

§ Installed Base Management§ Is planning and execution of service and support

the ABB Installed Base

§ Generates customer satisfaction and a competitive advantage

§ Is a part of ABB service business.

§ ServIS is an IS system, a tool, to support Installed Base Management

Sales/

Proposal Eng

Business/Scope

Approval Production Integration LogisticsInstallation

CommissionService

6-18mo 6-24 Mo 2-8 wks 6-24 mo 1-20 Yrs

Quotation

Negotiations

Spec’sNew SystemRequirement

Installation &

Commissioning

EngineeringWarranty

Installed base Mgmt

Improving Customer Productivity

© ABB Group March 25, 2010 | Slide 4

Assets

Analyzers

from Transmitter-Type up to complex systems

© ABB Group March 25, 2010 | Slide 5

Cost Emergence

Where are the problems?

Electronics

Sensor Physics

Sample Conditioning

5%

25%

70%

© ABB Group March 25, 2010 | Slide 6

Life cycle-Costs of Analytical Equipment

§ 1/3 Device Costs

§ 2/3 Operating Costs

Service25%

Calibration24%

Maintenance27%

Inspection20%

Documentation4%

source: atp 2/96

© ABB Group March 25, 2010 | Slide 7

Life cycle phases of production tools

n

PRU

Active

DevelopementAnd sales

Classic

Maintenanceof products

Limited

Service and support

Obsolete

Diminishing support and service possibilities

Four Phases of the life cycle

Life cycleStart-up End of warranty

Performancereduction Repair

Revision

Maintenance

ModernisationsRetro fîtReplacement

OptimisationCustomer value

Perf

orm

ance

í

© ABB Group March 25, 2010 | Slide 10

Classic§ maintenance phase of product

Active§ Sales and development

phase of the product

n Product introduction on market

n Acitve sales

n Periodical Evolution of product (improve)

n Active product support

n Product no longer actively sold,

n Full support available

n No more evolution.

n Price evolution (lowvolumes, prices of parts go up…etc.)

Active(~5..10 years)

Classic(~7..10 years)

Limited(~3..5 years)

Obsolete

Obsolete§ End of life of a product

Limited§ support phase

n Spares maybe available but no guarantee

n No more development for obsolete or unavailableparts

n Refurbished parts may beavailable

n No more development of service activities

n Support available but canget less with shrinkinginstalled base (degradingcompetences

n For the major part the costs and technicalrisks become too highto be reasonable

n Some items can bemaintained and repaired for manyyears after

Different life cycle phases over 10---20 years

Life cycle management

© ABB Group March 25, 2010 | Slide 11

Product ProductLine

End ofProductio

nList Layout: A=Active, C=Classic, L=Limited, O=Obsolete

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

AO2000 Uras14 24511 active A A A A A A A A AAO2000 Uras26 24541 active A A AAO2000 Limas11 IR 24921 active A A A A A A A A AAO2000 Limas11 UV 24911 active A A A A A A A A AAO2000 Limas11 HW 24911 active A A A A A A A A AAO2000 Magnos16 24611 2003 A A A C C C C C C L L OAO2000 Magnos17 24621 active A A A A A A A A AAO2000 Magnos27 24642 active A A AAO2000 Magnos106 24613 active A A A A A A A A AAO2000 Magnos206 24641 active A A AAO2000 Caldos15 24711 active A A A A A A A A AAO2000 Caldos25 24741 active A A AAO2000 Caldos17 24721 active A A A A A A A A AAO2000 Caldos27 24742 active A A AAO2000 MultiFID14 24811 active A A A A A A A A AMagnos106 EGA 24616 active A A A A A A A CMagnos206 EGA active A A A ALimas11 EGA 24915 active A A A A A A A A AUras 3G and 3G Ex 20310 1993 C C C L O O O O OUras 3G-H 20314 1993 L O O ORadas 1G and 1G-Ex 20340 1994 L L L O O O O O ORadas 1G-EM 20342 1990 L O O ORadas 1G-H 20344 1993 L O OUras 10 P 20412 1996 C C C C C L O O O

Status Life Cycle Phase

Life cycle management

© ABB Group March 25, 2010 | Slide 13

Reasons for new products

§ Technology shift

§ 1980’s µprocessors

§ 1990’s data communication

§ 2000 LCD/TFT ßà CRT

§ 2010 MEMS

§ Market requirements

§ Rules and regulations

§ Economics

§ Specifications

§ Obsolescence of components

§ Economic lifespan of components reduced

© ABB Group March 25, 2010 | Slide 14

Treating « old » or « obsolete » series

§ ABB’s objectives are:

§ Protect customer’s investment beyond technology shifts

§ Identify obsolete analyzers

§ Structure the handling of the obsolescence

§ Inform about upcoming obsolescence during life cycle

§ Inform customers about the maintainability of their production tools

§ Define technico-economical limits for maintenance and the investmentneeded for treating the obsolescence

© ABB Group March 25, 2010 | Slide 15

Key elements§ Identify the affected analyzers

§ Audit for identifying the installed base

§ Positioning of each analyzer in the life cycle based on factory and/or supplier info

§ Implement a migration plan

§ Take in to account operational constraints and life cycle of the equipment

§ Take in to account market evolution, opportunities and economicalconstraints

§ Develop a common plan together for the modernisation

© ABB Group March 25, 2010 | Slide 16

Analysis of life cycle and obsolescence

§ ABB analytical’s approach by priority

§ Classification of criticality as a function of frequency of malfunction and impact on production

§ Vital, Important, Secondary

§ Classification of criticality as a function of life cycle phase

§ Active, Classic, Limited, Obsolete

§ Classification of criticality as a function of rules and regulations

© ABB Group March 25, 2010 | Slide 18

§ Invest or Maintain? in limited or obsolete phase

Life Cycle

Real depreciation costs

Maintenance

Reduction performanceRepairRevision

Optimisation

Perf

orm

ance

í

Global costsCosts

Maintenance costs

Maintenance effort

Costs due to stops

InvestmentCosts

Economics of obsolescence

Keeping analyzer performance up, requires an ever increasingbudget and effort

Overall costs increase

© ABB Group March 25, 2010 | Slide 19

50+ years of PGC history !

© ABB Group March 25, 2010 | Slide 20

Extending usefull life

§ 2009§ 1985§ With LCD

from 2006

© ABB Group March 25, 2010 | Slide 21

Product and Technology Development

Karl Luft

Erwin Lehrer

1938 First Usable NDIR-Spectrometer Uras (~1950), still running

Uras 1 –License H&B 1952

Uras26

Calibration Cell1988

Advanced Optima1996

Uras 4 – 1980

© ABB Group March 25, 2010 | Slide 22

Advance OptimaThe Modular Concept

YesterdayYesterday

Caldos

Uras 10E

Uras 4

Fidas

Magnos

Uras 10P

TodayToday

Limas

Uras

MultiFID

Magnos

Caldos

© ABB Group March 25, 2010 | Slide 23

Backwards compatible components

§ Syscon 1 à 1996

§ Syscon 2 à 2005

§ Syscon 3 à 2009

© ABB Group March 25, 2010 | Slide 24

Standard System SolutionsComplete and Economic Analyzer Systems

TodayYesterday

© ABB Group March 25, 2010 | Slide 25

Installed Base Management process

§ Use ServIS in all phases of Installed Base Management

© ABB Group March 25, 2010 | Slide 26

ServIS status in ABB

§ Use statistics§ 4000 + registered user

§ 315 active users

§ 575,000 installations (Number of products and systems)

§ 46,000 customer sites - 25,000 customers

§ System is operated and supported by GF-IS§ Today 5 permanent full time employees

§ Implementation in 4 divisions - PA, AP, PP & PS

Active Users

0

50

100

150

200

250

300

350

400

Jun-

06

Aug

-06

Oct

-06

Dec

-06

Feb

-07

Apr

-07

Jun-

07

Aug

-07

Oct

-07

Dec

-07

Feb

-08

Apr

-08

Jun-

08

Aug

-08

Oct

-08

Dec

-08

Feb

-09

Customers & Sites

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Ap r-07May -07

J un-0 7Jul-07

Aug -07Sep -07

O ct-07

Nov-07D ec-07

J an-0 8

F eb-08M a r-0

8

Ap r-08May -08

Jun -08Ju l-08

Aug -08Sep -08

O ct-08N ov-08

D ec-08Jan -09

F eb-09

Companies

Sites

Users

Users

Sites

© ABB Group March 25, 2010 | Slide 27

Continued development of Installed Base Intelligence

§ Soon to come

§ A new interactive analytical tool § ServIS Extranet for our customers

© ABB Group March 25, 2010 | Slide 28