ARC's Sid Snitkin's ALM Presentation from ARC's 2008 Industry Forum

Sid SnitkinVice-President

ARC Advisory [email protected]

Asset Lifecycle Management (ALM)

A Community Worth Joining!

AIM For Excellence

2© ARC Advisory Group

Why an ALM Community/Service …

ARC Research Area for Over a Decade

• Coverage: EAM, FSM, PAM, PET, Plant Design, etc.

• Activities: Studies, EAS Reports, BP Research, Workshops

• Concepts: ALM, CALM, DOM, DOM Interoperability

What Have We Learned?

• Asset Management is Critically Important in its own right

• Problems cause incredible financial costs every year

• EH&S impact can be even more important

• Issues are different and span many groups, technologies

• Many shared with manufacturing/automation

• Many outside of manufacturing/automation

• Need all groups collaborating to overcome key challenges


DOM – A Model for ALM & Asset Performance

Optimum

Performance

Design Maintain

Operate

The Right Capability

High Availability

Optimal Utilization

Optimum Performance

X X =

Design MaintainOperate Win!

Optimum Performance Requires “Joint” Optimization!


Focus of ALM Community/Service

Optimum

Performance

Design Maintain

Operate

ALM Focus

Manufacturing Focus


ALM Will Reflect the O/O View of Community

Fabricators

Construction

Contractors

Maint Service

Providers

Shareholders

Repair Shops

OEMs

Engr &

EPCs

Consumables

Financial Regulators

EH&S Regulators

Product Supply Chain

Design Maintain

Operate

Improve

OEMs & Parts

Distributors

Optimum

Performance


Communities for key Topics/Issues (AIM, PAM, etc.)

On-line support: Blogs, wikis, web meetings, etc.

Community-driven ARC Research

Community-driven ARC Forums (Houston ALM Forum)

Augmenting, not duplicating efforts of other groups (OpenO&M, Fiatech, etc.)

Use ARC ALM Communities for collaborative solving of your critical problems !

ARC’s ALM Service Will Include …


ARC ALM Forum Houston, TX, Oct 6-8, 2008

Presentations and panel discussions by O/Os, suppliers, and ARC analysts - Learn what leading, companies are doing to address ALM Issues.

Workshops - increase your understanding of standards that are emerging around ALM.

Facilitated discussion groups - on key ALM topics will give you an opportunity to work collaboratively with peers and suppliers to identify solutions to shared problems

Technology Showcase - learn more about specific products and discuss your needs with technology experts

Great opportunity for networking ! AIM For Excellence

Join the ALM Community and share ideas at this Important Event!


Manufacturing IT Benchmarking… Another ARC Community Effort !


A Manufacturing Community Challenge …

Manufacturing IT Issues/Concerns

• How do my Systems compare with Peers - Industry/Region?

• Are my IT Investments too big, too small, just right?

• Am I addressing the right areas – opportunities & threats?

General IT Surveys Don’t Provide the Answers

• Manufacturing IT More Complex

• Don’t Address Many Manufacturing IT Issues

• Aren’t Comprehensive Enough to Answer Real Questions


A Manufacturing Community Solution …

Global Database of Information Reflecting:

• IT Application/Feature Adoption by Mfgs–all Regions/Verticals

• Current State

• Planned Investments for This Year

• Likely Investments over next 3 Years

• Drivers/Targets of planned IT Investments

• Impact of Global Trends

• Business Area/Objective

Annual Update via websurvey of users

• Comprehensive to ensure information is useful

• Selective to enable broad participation

• Benefits reflect community support


Creates Community-shared Value –How Are Manufacturers Reacting to Market Trends?

0 20 40 60 80 100

Market Price Erosion

Shrinking Product Lifecycles

More Product Customization

Higher Quality Requirements

Better Service Requirements

Increasing Regs & Compliance

Geographical Shifts in Market

Globalization of Operations

Globalization of Product Design

Constrained Growth

Industry Consolidation

Aging Workforce

Lack of Skilled Workforce

Rising IT Support Costs

Market Trend Impact on IT InvestmentsNorth America, Chemicals

Very big

impact Big Impact

Important

Not Important


Creates Community-shared Value –Where are they Focusing New IT Investments?

11%

4%

22%

15%15%

7%

4%

4%

18%

Focus for IT InvestmentsEMEA, Automotive

Management of Customers

products and/or design

processesManufacturing Operations

Supply Chain

processes/practicesRisk & Regulatory Compliance

Management of Suppliers

Management and/or capabilities

of EmployeesFinancial Systems and/or

Financial Supply ChainsIT Systems and/or IT

Operations


Creates Community-shared Value –What are they hoping to accomplish?

3%7%

11%

4%

7%

18%14%

9%

9%

18%

Objective for IT Investments - Mfg OperationsAsia, Metals

Real-time visibility of Manufacturing OperationsBetter Genealogy Tracking

Integration of Plant & Enterprise

Better Planning & Scheduling

Lower Plant Operating Costs

Higher Plant Availability

Better EH&S Compliance

Better Investment Planning

Better Project Management

Shorter Shutdowns, Turnarounds and

Outages


Creates Community-shared Value –What IT Applications Do They/Will They Have?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FIN HR PLM-D SRM CRM Prod SCM WMS TMS GTM PLM-P EAM FSM PIT EIT

Current IT Portfolio Latin America, Pulp & Paper

Have Plan to Acquire in This YearPlan to Acquire within 3 Years No Plans to AcquireNot Applicable


Creates Community-shared Value –Who is Adopting New Technologies/Ideas?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

N.A. EMEA Asia L.A.

% o

f R

eg

ion

al

Sam

ple

Manufacturing – Real-time VisibilityPulp & Paper, Latin America

Have

Plan to Acquire in This

Year

Plan to Acquire within 3

Years

No Plans to Acquire

Not Applicable


16%

9%

7%

4%

4%

3%3%

2%2%2%2%

46%

CPM/MES SuppliersDiscrete Industries, North America

Applied Materials

SAP

Camstar

Visiprise

Rockwell

Siemens

IBS AG

Oracle

Activplant

Apriso

IBM SiView

Other

Creates Community-shared Value –Whose Technology Are They Using?


16%

9%

7%

4%

4%

3%

3%2%2%

50%

CPM/MES SuppliersProcess Industries, North America

OSISoft

Honeywell

Aspen Technology

Rockwell

Invensys

ABB

SAP

Matrikon

Emerson

Other

Creates Community-shared Value –Whose Technology Are They Using?


Creates Community-shared Value –How Fast Will Adoption Occur?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2009 2011

% o

f S

urvey S

am

ple

Real-time Visibility, 2008-2011North America, Process Industries

Not Applicable No Plans to Acquire

Plan to Acquire within 3 Years Plan to Acquire in This Year

Have


Thank YouFor more information, contact the author at [email protected] or visit our website at

www.arcweb.com


Acronyms Used in This Presentation

AIM Asset Information Management

ALM Asset Lifecycle Management

Apps Software Aplications

BP Best Practice

CALM Collaborative Asset Lifecycle Management

DOM Design, Operate, Maintain

EAM Enterprise Asset Management

EAS Enterprise Advisory Services

EH&S Environmental, Health & Safety

EPC Engineer, Procure and Construct Company

Fiatech Industry Organization focused on Facility Design, Build, Operate & Maintain

FSM Field Service Management

Info Information

A complete list is available on ARC’s Homepage: ARCweb.com


Acronyms Used in This Presentation

OEM Original Equipment Manufacturer

O/O Owner/Operator of the Asset

OpenO&M Consortium of Standards Organizations involved in Operations & Maintenance

OPEX Operating Expenses

PAM Predictive Asset Management

PET Process Engineering Tools

P&ID Process and Instrumentation Diagram

ROA Return on Assets

A complete list is available on ARC’s Homepage: ARCweb.com

ARC's Sid Snitkin's ALM Presentation from ARC's 2008 Industry Forum

Technology

Transcript of ARC's Sid Snitkin's ALM Presentation from ARC's 2008 Industry Forum