F Kh b t Fayez Kharbat, Engineering Specialist

Saudi Aramco, Engineering SolutionsProcess & Control Systems Department

Fifth Workshop on Industrial Systems and C t l 2008 (WISC08) Control 2008 (WISC08)

November 24th, 2008

l CHolistic Management ConceptAsset Performance Management (APM)Asset Lifecycle ManagementSolution & Architecture Drivers & BenefitsCase Study – Success StorySummary

Energy Management

Asset Performance Other  Performance Management

Functions

Integration

3D Virtualization

Advisory Systems VirtualizationSystems

Visualization & KPI 

Development

Process Performance

RCM (Reliability Centered Maintenance) & RCM and FMEA analysis serves as a powerful h i f d l i i d th

Provide equipment owners the ability to d t d th d l i f f il

Ensures that inspection strategies are l t d i t diti h

Enables organizations to standardize how t t i d d id th h ld

Provides a collection of analytical tools and th d th t l li bilit i i

Provides a seamless integrated work process bet een Maintenance Ope ations Enginee ing Provides the ability to calculate the minimum thickness required to safely operate the To achieve a holistic approach toward

i t d li bilit d ti APM initiative can fail when the program is f d l l i t t d ti Allows asset owners and operators to manage inspection plans doc ment the condition of an APM Solution aligns with corporate

FMEA (Failure Mode Effect Analysis)

Root Cause Analysis (RCA)

Risk Based Inspection (RBI)

mechanism for developing an in-depth understanding of equipment functions and failures. With that understanding, it is possible to develop successful failure-prevention strategies.

understand the underlying causes of failures and use that information to prevent future occurrences.

evaluated as equipment condition changes, ensuring an evergreen program.strategies are measured and provide thresholds and benchmarks to indicate when corrective actions need to take place. Web portals allow asset managers to assess the current health of their divisions, sites, areas, units and

methods that apply reliability-engineering principles to help owners make tactical and strategic decisions to optimize the performance of your assets.

between Maintenance, Operations, Engineering, and Inspection organizations, thus eliminating the need to manually maintain data between multiple systems.

thickness required to safely operate the equipment, thickness measurement data management, and corrosion rate analysis, as well as next inspection and retirement date calculations.

maintenance and reliability, recommendations are an output from any given APM solution, but the actual engineering redesign work is typically done in solutions such as Intergraph SmartPlant or others.

focused solely on maintenance cost reduction and not improving the overall business strategy. For an APM program to reach its full potential, companies must develop a strong plan for organizational change and adoption

inspection plans, document the condition of an asset and track inspection recommendations to closure.

goals, is tied to key performance indicators, and provides analyses to decision makers about their production assets on an enterprise, plant, system,

Developing Metrics & KPIs / Web Portal

Reliability Tool Analysis

g , , ,equipments.p g g pof the comprehensive APM initiative. or equipment level.

Calibration Management

Inspection Management

APM Functions

Thickness Monitoring

Equipment Redesign APM Functions

Business Case & Organizational Change

Strategize ExecuteInspection

Upfront Work Closed Loop Sustainable Process

Asset St

M

RBI Analysis

Inspection Strategies

Process Excursion Data(Process Historian)

pEvent Data

Corrosion Study Operating Envelopes

Asset Strat

Asset Strat trategy Im

plementa

Measure Strategy

EffectivenessKPI/

Reassessment Criteria

SIL Analysis

RCM/FMEA

SIS Proof Testing Data HAZOPFailure

Scenarios

Criticality Study Maintenance

IPF Strategies

Calibration Data

tegy Managem

ent (tegy O

ptimization ( ations

AnalysisMaintenance Event Data

(EAM – SAP, Maximo)

ODR &Condition Monitoring

Data

Criticality Study Maintenance Strategies

ODR Strategies

ASM

)(A

SO)

ateg

ize

Recommendations &Strategy Re-Evaluations

Decision Support MethodologiesEvaluate

Re-S

tra Decision Support Methodologies

- Root Cause Analysis - Life Cycle Costing- Weibull Analysis - Growth Analysis- Trending - Spares Analysis/Optimization- Ad hoc Analysis - Condition Assessment

RAM (Reliability Asset Strategy Management- RAM (Reliability - Asset Strategy Management Availability Maintainability)

• Outside operator detects an Outside operator detects an abnormal situation (e.g. visual inspection, noise, etc.)

• Field data readings are wirelessly • Field data readings are wirelessly transmitted and combined with real time process sensor data and suggest impending failuresuggest impending failure

maintenance wants to ____?operations wants to _____?

h k h dl d ?• How is the work process handled ?

• Should we deal with this in a logical - consistent way ?

A l i t t i t d i t As large investments in assets and ongoing cost are made, owners are eager to see higher rates of return on their capital employed – maximized p p ylifecycle value.

This gets fulfilled when:This gets fulfilled when:The operational performance of plant assets is assuredThe risk involved in operating those assets are controlled

Program-CentricProject Mgmt

Asset-CentricOperations Project Mgmt

Engr/DesignProcurementConstruction

OperationsProcess EngrMaintenanceReliability

Human

PrimaryFacilities & EquipAutomationRemote

Reference DataFunctionalDesignProcedural

Physical VirtualProcedural

SupportIT HW/SWMobileMRO Material

Activity RecordsCommercialStatusStatusHistory

Asset = Plant AssetM hi E i t P l d I f ti ith th Machinery, Equipment, People and Information - with the purpose of providing an economic and/or social benefit

APM provides means to share information regarding the right time to do maintenance based on the health of equipment  coupled based on the health of equipment, coupled with the best time to bring an asset down given operational demands.

“APM   b d  i t  It  t    “APM goes beyond maintenance: It cuts across many boundaries. The bottom line is return‐on‐

assets [ROA]” ARC Advisory Group

Operations is measured on Operations is measured on maximum asset utilization while maintenance is measured on availabilityavailabilityAsset Performance Management is about striking an optimal balance between asset utilization between asset utilization, availability and sustainability

Since the bottom line in the hydrocarbon industries Since the bottom line in the hydrocarbon industries is Return  on Assets  (ROA),  improving  the  bottom line  is    a  function  of  how  much  utilization  is hi d  f   t   d  h   ll  t    achieved  from  assets  and  how  well  assets  are 

utilized when on line

APM E th t th t f l APM Ensures that the asset safely performs its planned function over defined time horizon in terms of:

The operational performance of plant assets is assured

The risk involved in operating those The risk involved in operating those assets are controlled

Energy, Emissions, and other Sustainable Manufacturing targets are Sustainable Manufacturing targets are achieved

Enterprise Asset Managementk i l lWork management ‐Materials Management – Plant Maintenance – Supply Chain Management

Enterprise Asset Performance Management Schedules

Targets & Schedules Performance & Constraints

Performance Analytics                           Capability AssessmentStrategy Management

Maintenance ManagementCondition Monitoring

Engineering andDesign

Change ManagementRegulatory Documents

Production DataIncident Data

Production Management/Monitoring

Asset ManagementCondition MonitoringRegulatory Documents

Engineering DataTag Master

Incident DataQuality DataCycle Times

Condition MonitoringVibration Monitoring

Online Device Monitoring

Enterprise Asset Management (EAM)•Work management

M i t

•Work management•Materials Management•Purchasing and Stores

MaintenanceHistory

MaintenanceStrategy

Enterprise Asset Performance Management (EAPM)•Strategy Development (RCM, RBI, etc.)Strategy Management (Asset)•Strategy Management (Asset)

•Condition Assessment (Calibration, Inspection, etc.) •Performance Management (KPIs, RCA, Analysis, etc.)

MonitoringSt t

ConditionalAl t

Re-design R d ti

Engineering Ch t i ti

ConditionalAl tStrategyAlerts

Condition Monitoring•Asset Diagnostics•Online Monitoring•Anomaly Detection

RecommendationsCharacteristics

Engineering and Design•Tag Master•Engineering Data•Regulatory Documents

Control System/ Process Historian•Process Control/Alarm & Events•Operating Envelope Definition

Alerts

•Anomaly Detection •Regulatory Documents•Management of Change

•Operating Envelope Definition•Online Monitoring

Ramp TimepUp Oper

Rdy

PeakAssm

FuncAsset

PeakPerf

AssmAsset

ModsSpec

Liab

Des

ProjPlan

Cash

Idea

DesBasis

ARC Advisory Group.

RampUp Oper

RdyFuncAsset

Operate &PeakPerf

AssmAsset

Design &

Operate & Optimize

Maintain &ModsSpec

Design &Build

Maintain &Improve

Liab

D

ProjPlan

Cash

Idea

DesBasis

With APMWO/APM

Business Process

With APM

PlantPlant

WO/APM

FailureReduction

Production Incident Tracking

Maintenance Operations Inspection EH&S

Management EH&S

OperationsMaintenance Inspection

MechanicalIntegrity

Financial

Focus on Business ProcessOperational Silos

N ll 5 7% C t A id i Normally 5-7% Cost Avoidance is achieved when Asset Performance Management System is used effectively

Strategy & Programs

effectively

It has been shown that typically equipment reliability

People & Processes

Di t d problems accounts for about 38 percent of all unplanned slowdowns or shutdowns

Applications & Information

Disconnected

Problems with Data Quality, Data Entry C l ti E d t li bilit Completion, End users are not reliability

oriented, No Standardization

Provides asset owners with a single Strategy

& Programs

Provides asset owners with a single point of access to a collaborative transactional workspace to manager their assets throughout their productive lifecycle

Asset Performance

People & Processes Asset Performance Management

is the backbone to culture of reliability

productive lifecycle

Management (APM)

Applications & Information

reliability

APM enables organizations to id tif t i l d identify, contain, analyze and remove production losses and

thus improve production performance

Vi ibl t l d hi Visible corporate leadership − Baseline reliability performance expectations

The establishment of clear attainable goals The establishment of clear, attainable goals

The selection of metrics− Measure reliability performance and a path to

improvement

Establishing a partnership with other organizations to develop and implement changeorganizations to develop and implement change

Clearly defined roles and responsibilities− Impacted Maintenance, Operations – the entire p , p

organization

E G d R li bilit d M i t D tEnsure Good Reliability and Maintenance Data

Establish Business KPI’s and provide consistent methods of calculationsmethods of calculations

Conduct risk-based criticality assessment of plant equipment (ABC indicator)equipment (ABC indicator)

Establish RCA, RCM, Reliability Engineering, Statistics, Six Sigma

Work flow roles and responsibilities

Management Empowermentg p

M t f Ch (MOC) S t / Management of Change (MOC): Support / Participation

Culture Change: Change Toward APMCulture Change: Change Toward APM

Software / Tool: Cost of Suitable Integration

R di M / G A l i Readiness: Measure / Gap Analysis

APM Effective Implementation: Action Plan

d dTraining: Focused Training and Awareness Sessions

Changing Agent: Empower & Support Implementation TeamImplementation Team

Clearly and consistently communicate the

Reliability Oriented 

User

Data Quality

communicate the value of APM to the higher management

Establish awareness

APM program of the value of APM for the organization

Reduction of unplanned downtimeReduction of unplanned downtime

Reduction of planned downtime

Reduction of maintenance inventory

Avoidance of major maintenance work

Reduced production losses

Reduced safety and environmental lossesReduced safety and environmental losses

Reduced Capital Costs

Improved quality performance

Improved Energy Utilization

Maximize the effectiveness of your assets

O ti i th d ti it d li bilit f l t tOptimize the productivity and reliability of your plant assets

W k i l d dWork scope included:

Inspection Management and Thickness MonitoringMonitoring

Using APM to track Mechanical Availability consistently across all sites and roll up to consistently across all sites and roll up to corporate

Better understanding of equipment health and equipment replacement needs

Source: Meridium 2002 User Conference

C tCorporate− Early focus – regulatory

compliance$14+ million in documented − $14+ million in documented savings

− IRR > 20%

Single plant− $1,117,800 in maintenance

cost savingsg− Reduced LPO cost of in-service

heat exchanger failures by $3 million

− Equipment life increased 12%Source: Meridium 2002 User Conference

D l i APM id Deploying APM provides:

Integrated solution for reliability and maintenance

ARCAdvisory G roup

reliability and maintenance

Obtaining a satisfactory ‘transformation change’ ARC Advisory G roup. transformation change

And, it supports the overall “Holistic Management” concept