Flexible, Scalable Asset Management Solutions to Help You Increase Uptime

Copyright © 2012 Rockwell Automation, Inc. All rights reserved.Rev 5058-CO900C

Flexible, Scalable Asset Management Solutions to Help You Increase Uptime

Copyright © 2012 Rockwell Automation, Inc. All rights reserved. 2

Agenda

Networked Devices

ERP and CMMS

Storeroom

Reliability Strategy

Asset Management

Firmware

Copyright © 2012 Rockwell Automation, Inc. All rights reserved.

Session Objectives

Keys to Its Success

How to Position it Strategically in Your Organization

Getting Started Make Connection with Opportunities You Have Perspective on Path Forward Electrical and Instrumentation Focus

Reliability Centered Maintenance Storeroom, ERP, Connected Devices, FirmwareSome Examples

Asset Management

3


What are the Issues Facing Manufacturers Today?

Extreme pressure on budgets to run and maintain operations - 88% of manufacturers run to failure, 42% have no equipment end of life plans

Need to reduce operational costs – maximize uptime and minimize maintenance expense

Increase machine availability

Resource limitations - need to do more with less (broad competency needs)

Business drivers such as OEE, RONA, margins, etc.

Challenged to engage and empower factory workforce

Regulatory compliance

How will you achieve your operational goals? 4


Where to Start the Journey:Step by Step


Enterprise Asset Management

Improves utilization and performance

Reduces capital costs

Reduces asset-related operating costs

Extends asset life

Improves RONA

6

The management of assets across departments, locations, facilities and business units

Improve your cost position by managing your assets


Asset Management at a Glance

7

PAS 55 being replaced by ISO 55000 in 2014


• Informal process• Individual metrics• Methodologies

recognize key repeatable steps

• Ad hoc management

• Reactive • No coordinated

management• No metrics• Corrective

projects w/o methodology

• SOPs exist• Limited

collaboration across stakeholder organizations

• KPI metrics• Unclear

accountability for whole process suite

• Dedicated manager

• Lifecycle opportunities identified

• Formal global SOPs

• Single point of process responsibility

• Departmental mesh point inside storeroom not only at management level

• Shared goals / metrics aligned Enterprise results

• Lifecycle opportunities realized

Optimizing• Seamless

customer experience

• Global SOPs visible and understood by all involved or impacted

• Continuous improvement based on enterprise metrics / customer experience

• Manufacturing operation reliability as part of the solution

Leading

Aware

Developing

Practicing

Asset Management:Operational Effectiveness Evaluation

Operational Effectiveness

Improving asset effectiveness – becomes self funding8


Rockwell AutomationAsset Management Process

9

Set Goals Prioritize Improvement

Take ROI Driven Action

Get Results

A step-by-step approach to implement a customized, scalable solution

Reduce your MRO parts spend by as much as 25 percent while improving plant profitability and uptime


Agenda

Networked Devices

ERP and CMMS

Storeroom


Asset Management

Firmware


Analyzing

Predicting

Preventing

Mitigating

Reducing Equipment DowntimeAnd Operational Risk

Time

Down

time

Maintenance and Reliability – It is about What to Know and Do?

What should I be working

on?

What is the health of my equipment?

Do I have the parts I

need?


Maintenance, Reliability and Operations is at the Center of Asset Management

Reliability focus Throughput Availability Spare-parts stock

Criticality is key to Return on Investment Lower Risk Cross Functional Objectives Increasing Profits

12


Equipment Criticality Vital for a proper maintenance strategy Optimum maintenance strategy should be based on criticality 60% of preventive maintenance tasks

are considered unnecessary (ARC)

Strategies for maintenance Predictive/Direct health Preventive Reactive/Corrective

Implement a criticality-based strategy Mission Critical –10-15% of criticality rated equipment Critical –Impact of failure is 60-80% of criticality-rated equipment Non-Critical –Impact of failure is the lower 10-15% of equipment

Criticality and Reliability Centered Maintenance (RCM)

13

Criticality-based maintenance strategies support asset management


Agenda

Networked Devices

ERP and CMMS

Storeroom


Asset Management

Firmware


Asset Management Supports Storeroom Strategy

15

Interrelated processes impact business objectives


Asset Management: Storeroom Management is Critical

16

Storeroom Can we improve production while reducing inventory? What is actually in our storeroom? Can we shorten lead time? Can we improve our systems and software around

maintenance and spares? How can we manage our maintenance budget? Can we collaborate better with our vendors? Are the right parts available at the right time? Do I have too much inventory? Is my storeroom efficiently run? Is it tough finding parts? Are parts easily identifiable?

63% of spares are classified as -Inactive-Excess-Obsolete

50% of downtime can be attributed to insufficient spares

Carrying costs can range from 15%-25% for MRO spares

How is this valuable to me?

At least


Asset Management: Rockwell Automation Storeroom Improvement

A step-by-step approach to implement storeroom management

Rockwell Automation Focus: Reducing Demand Side

Assess current environment

Assess process

efficiencies and lean initiatives

to drive productivity

Implement ROI-driven

processes that will help improve

productivity and lower

costs

Dashboard reporting tools help optimize

storeroom operations

through day-to-day inventory management, reconciliation/integrity, etc.

17


Asset Management: Storeroom Benefits

Reduce inventory levels and MRO costs

Improve MRO management process

Improve KPIs (inventory accuracy, shipped on time, cycle count accuracy, etc.,

Improve maintenance decisions

Reduce storeroom costsManage obsolescenceReduce stockouts

FeaturesPoint or complete solutionsUsage analysis identifies

areas for SKU reduction Increase capacity without

adding spaceStreamline reporting

structure and standardize processes

Move and reorganize storeroom

Efficient Labor Utilization

18

Improvement Focus is to Sustainably Lower Demand


Agenda

Networked Devices

ERP and CMMS

Storeroom


Asset Management

Firmware


• Business and compliance• Supply chains• IT and operations functionality

Customer

EnterpriseBusiness

System

SuppliersConvergence

Asset Management: ERP and CMMS Processes

Convergence of ERP and control systems helps ensure high productivity


Asset Management: ERP/CMMS Data Improvement

Ensure material masters are current Update leadtimes for indirect materials Maintain accurate equipment records

Maintain accurate work centers Where are issues occurring? What are the critical pieces in the

process?

Utilize functional objects Notifications Work orders

21

Use your ERP system to manage critical asset data


Asset Management: Rockwell Automation is a Certified Meridium Partner

3 Main Data Sources• Equipment• Work History• Functional Location

SAPEAM / CMMS

Oracle MaximoIndus

• Strategy Actions• Work Orders

APM Analysis• Searches• Queries• Datasets• Reports• Graphs

A P M

22


Asset Management: Meridium and Maintenance System Integration

Work History

Computerized MaintenanceManagement System (CMMS)

Work Execution

Work SchedulingWork Planning

IntegratedData Sources• Production• Engineering• Inspection• Condition• Financial• Incidents• Process HistoriansAnalysis/Assessment

Strategy Development

Effectiveness Efficiency

Data management facilitates parts and process management 23


Agenda

Networked Devices

ERP and CMMS

Storeroom


Asset Management

Firmware


Asset Management: Converging Plant Floor and Storeroom

How will you manage your networks and networked devices?

Are my networked devices running within known control limits?

What steps can I take to proactively manage them?

Can I do it remotely?

25

To what level are physical assets defined How am I tracking asset data? Will replacement parts meet required

specifications? How much downtime is caused by parts

issues?


Asset Management for Networked Devices

Diagnostic Reliability Services System-wide visibility to health of devices Diagnostics, trending, alarming, configuration

data, change management Remote access Live Process BOM – components and

subcomponents

Hardware status and parameters EtherNet, DeviceNet, and ControlNet SMART Drill Down to Firmware, COMMs …

Real-time and historical data

Enhances predictive maintenance capabilities

26

State of the Art Focus on Electrical and Instrumentation


Agenda

Networked Devices

ERP and CMMS

Storeroom


Asset Management

Firmware


Asset Management: Firmware Services

Customer Feedback Unplanned downtime caused by firmware

incompatibilities Foundational basis for an automation migration plan Change management control of plant assets Identifying and managing risk Need for a proactive and sustainable solution

28

Automation systems are made up of a broad range of components, networks and software which were developed and modified over an extended period of time by various vendors. An effective, sustainable solution must include end user business process.

A solution for the failed component replacement scenario to minimize unplanned downtime risk.


Firmware Services

29

… develop a sustainable firmware management solution.

IMPLEMENT

Data Formatting & Evaluation

Installed Base Data Collection

FW Management SOP’s

Test StationFirmware Library

Load Data

Change Management


Asset Management: Firmware Management Services Firmware Solutions

Maximize automation capabilities Improve productivity Reduce unplanned downtime due to

firmware version incompatibilities Examination and documentation of

Rockwell Automation products and firmware levels

Benefits√ Reduced firmware compatibility issues√ Easy access to required firmware√ Faster firmware diagnostic time√ Key Performance Indicators (KPIs)

30

Features√ Audit of your installed firmware levels√ Standard Operating Procedures √ Customized test stands√ Firmware files set up in your

ERP system√ Online Web-based library tracks your

equipment firmwareNow that you’ve identified critical assets,

how are you tracking them in your system?


Asset Management:Return on Investment

31

Proven tools that demonstrate ROI


Benefits of Asset Management

32

Decreasing risk, minimizing downtime

Margin expansion Production volume efficiency Overall Equipment Effectiveness (OEE)

Driving uptime and improvement Optimizing utilization of people and parts Trend data to monitor machines and shifts

Return on Net Assets (RONA) Reduced inventory Decreased maintenance costs Driving financial performance

Empowering and Engaging Employees Actionable data helps employees solve issues Real-time access to critical data


Asset Management:Operational Effectiveness Evaluation

With Each Step… Get Buy-in … Keep Moving …

• Informal process• Individual metrics• Methodologies

recognize key repeatable steps

• Ad hoc management

• Reactive • No coordinated

management• No metrics• Corrective

projects w/o methodology

• SOPs exist• Limited

collaboration across stakeholder organizations

• KPI metrics• Unclear

accountability for whole process suite

• Dedicated manager

• Lifecycle opportunities identified

• Formal global SOPs

• Single point of process responsibility

• Departmental mesh point inside storeroom not only at management level

• Shared goals / metrics aligned Enterprise results

• Lifecycle opportunities realized

Optimizing• Seamless

customer experience

• Global SOPs visible and understood by all involved or impacted

• Continuous improvement based on enterprise metrics / customer experience

• Manufacturing operation reliability as part of the solution

Leading

Aware

Developing

Practicing

Operational Effectiveness

33


Asset Management: Storeroom Strategic Alignment

Storeroom Reliability

Strategic Alignment

Business Objectives


Challenges Improve MRO inventory management, reduce inventory costs, move and reorganize

storeroom Limited time to move and set up new storeroom, process and people Maximizing uptime is critical Inventory management controls and infrastructure not in place New machines were due thirty days after project started

Real Results

Transmission plant Produces transmissions for tractors and

off-road equipment Undergoing significant facility expansion Uptime is critical Changing out their storeroom vendor

Heavy Equipment Manufacturer

35


Real Results

Completed Six Sigma Study Established new model for reviewing stock re-

orders and eliminating duplicate or unnecessary orders

Performed Business Process AnalysisStoreroom Management team on-site

Project manager Thirteen Storeroom Attendants

Reconciled entire MRO Inventory Labeled all bin locations, identified all inventory,

updated customer’s business system Consolidated VMI inventory

Established SOPs for all material transactionsImplemented annual inventory analysis

processes

Solutions Results• Improved all major KPIs

– Inventory accuracy from 64% to 98%– Fill rate from 74% to 97%– Shipped on time 82% to 99%– Cycle count accuracy from none to 99%– Order accuracy from 88% to 100%

•Reduced overall inventory– From $12.5M to $10.6M reduction

•Reduction of stock orders $200K per month• Identified additional 21k line items of lost inventory•Converted all material transaction process from

manual paper to automatic electronic•Eliminated one third of the VMI vendors (6 to 4) •Reduced VMI spend by 50% per month ($70K to

$35K)

How can you quantify ROI?36


Session Objectives

Keys to Its Success

How to Position it Strategically in Your Organization

Getting Started Make Connection with Opportunities You Have Perspective on Path Forward Electrical and Instrumentation Focus

Reliability Centered Maintenance Storeroom, ERP, Connected Devices, FirmwareSome Examples

Asset Management

37


www.rockwellautomation.com

Follow ROKAutomation on Facebook & Twitter.Connect with us on LinkedIn.

Rev 5058-CO900C

Questions?

Documents

Flexible, Scalable Asset Management Solutions to Help You Increase Uptime