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Industry Perspective

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Page 1: Industry Perspective
Page 2: Industry Perspective

Vimal Kapur

President, Honeywell Process Solutions

Page 3: Industry Perspective

Welcome

27th 1,000+

Attendees 409 Customers

207 Channel Partners

15 Media Outlets

Page 4: Industry Perspective

Agenda

IIoT

Solutions

Conclusions

Challenges

Page 5: Industry Perspective

CAGR 2014–15

CAGR 2010–14

Industries are challenged to do more with less CAPEX…

2015 EMEA CAPEX ($B)

$164

$159

$102

$70

$36

$20

$19

$13

Power

O&G

Batch

MMM

Water

Ref

Chem

P2

2% -10%

5% -20%

2% -7%

-1% -9%

6% -7%

4% -23%

3% -11%

-1% -8%

Total $ 583B

Source: IHS Oct 2015 Estimates Nominal CapEx

Four main drivers hindering CapEx outlook in EMEA:

Sustained lower oil prices

Weaker demand due to a China-led global economic slowdown

Currency depreciation

Geopolitical and security risks

Page 6: Industry Perspective

-20.9%

11.0%

16.7%

-2.9% -0.3%

-1.4%

-20.1%

2009 2010 2011 2012 2013 2014 2015

…as well as do more with less OPEX

Change in OPEX Spending vs Prior Year

Bounced Back Just After Recession; Very Tight Spending Since Then with Further Declines in 2015

Source: IHS Oct 2015 Estimates

Page 7: Industry Perspective

Industries facing skills attrition as experienced employees retire

Industries Must Ensure Thorough Knowledge Transfer Among Shifting Workforce Demographics

Source: Hays Oil & Gas Global Salary Guide 2015

Aging Workforce % workforce with more than 20 years in the Industry

29%

16%

2010 2014

20%

42%

2010 2014

X 2.1 times in 4 years

Years of Experience in the Industry

Younger Workforce % workforce with less than 4 years in the Industry

Almost halved in 4 years

Page 8: Industry Perspective

Accelerated change increasing pace of Obsolescence of legacy assets

Drivers of

accelerated change

Shift from Hardware

to Software

Faster turnaround of

software releases

with higher

functionality

Rate of change

is increasing

dramatically

Managing

obsolescence is

becoming

increasingly

challenging

Implications

for customers

Time interval between two technological releases

1975

Data Hi-way

2015

IIoT

Experion

R100

2003 1985

TDC3000

R200 R300

2006

R400

2010

R431.1

Page 9: Industry Perspective

Increasing Threat of Cyber Attacks

48% increase in overall number of detected attacks

Power & Utility companies reported a 6-fold increase in number of detected threats from the year before

3.4

9.4

22.7 24.9

28.9

42.8

2009 2010 2011 2012 2013 2014

Millions of Detected Attacks Across All Industries

Source: PWC The Global State of Information Security Survey 2015

48%

Page 10: Industry Perspective

Safety Remains the Highest Priority but is Plateauing

Injury rate continues to drop, however

is the goal

Total Recordable Injury Rate per One Million Hours Worked in the European Oil & Gas Industry

Source: International Association of Oil & Gas Producers, June 2015

3.9

3.5

3.1 2.8

2.6 2.6 2.6

2008 2009 2010 2011 2012 2013 2014

0

Page 11: Industry Perspective

3

Safety & Security

Operate safely and securely

2

Skills

Manage the skills gap & ensure

knowledge transfer

CapEx & OpEx

Do more with less

1

In summary as operators you are asked to:

4

Technology

Leverage existing & new technology to

stay relevant & competitive

Page 12: Industry Perspective

Agenda

IIoT

Solutions

Conclusions

Challenges

Page 13: Industry Perspective

4 What should be my IIoT roadmap

Deploying IIoT in Process Industry

2 How can IIoT benefit my legacy assets

3 What are the skills required and how to train my team

How can IIoT solve my challenges

1

The questions we’ve heard from our customers on IIoT:

?

?

?

?

Page 14: Industry Perspective

v

v

IIoT opportunities are not possible without Connectivity & Visibility to Industrial Data

The Industrial Internet of Things is a network of networks that uses the internet to connect people, processes and assets enabling a new way to optimize business results…

…it leverages smart connected assets,

enterprise integrated automation,

secured cloud-based data,

and advanced analytics

Field Devices

Equipment

DCS

Maintain

Operate

Optimize

Plant

Data

Page 15: Industry Perspective

HON iiOT thought leadership in action: ASM case example

Reduction in overall and nuisance alarms by up to 80%

40%+ improvement in time to solve problem

Faster recovery from abnormal situations

Data Gathering

Leading to an IIoT intelligent offering suite

20+ years experience in the process industry and gathering data

Alarm management

Early event detection

Events monitoring

Simulation training

User friendly graphics

Predictive Analytics

HON Safety Analysts / Data Scientists

Developed proprietary Pattern Recognition algorithms

Challenge Solved

Safety

Page 16: Industry Perspective

OPC UA is the universal standard that allows connectivity & visibility to industrial data

OPC UA is one of the most important modern standards

for industrial facilities and many further scenarios in an

intelligent and connected world.

OPC UA is considered a central building block on the

way towards Industry 4.0.

It is the first unified, worldwide recognized industrial

protocol for a secure smart factory.

Holger Junker, Federal Office for Information Security, (BSI), Head of Division

Benefits

Native security

Multi-platform implementation

Scalability – from embedded smart sensors to mainframes

Easy engineering

Connectivity with context (value & timestamp)

Page 17: Industry Perspective

We are also increasing training flexibility thanks to the Cloud

Accessed over a private secure network

Very small footprint at customer site

Honeywell Support & Engineering groups have instant access

Subscription pricing model

Honeywell-maintained Training System

Virtual OTS in the Cloud Hosted by Honeywell

Challenge Solved

Skills

Page 18: Industry Perspective

Challenge Solved

Technology

We leverage connectivity and collaboration to resolve real time alerts

Alerts that interest you Multiple data sources can send alerts Subscribe to the ones you want Unsubscribe

Timely delivery with appropriate content Related info pre-packaged

Faster decision making and awareness

Create your own alerting criteria

Act on alerts Comment, forward, take ownership

Share input from personnel not at location

Browse Historians Browse tags

Graph tag data

I just got a

Pulse™

Page 19: Industry Perspective

What benefits will it bring to the industry

Maximize production

throughput and reduce OpEx

Production Efficiency

Proven impact $5-15M per site per year

Enable the plant to run at peak

performance with no incidents

or shutdowns in a sustained

and prolonged manner

Reliability

Proven impact $7-20M per year

Optimize the end to end

profitability of when, where

and what to produce

Enterprise Optimization

Achieve $3-5M per site per year

Page 20: Industry Perspective

Agenda

IIoT

Solutions

Conclusions

Challenges

Page 21: Industry Perspective

Using modular and standardized designs, we reduce CapEx costs and construction lead times

Factory Built – not site built Better quality – standardize, pre-test Improved Change Management

Automation off critical path Support one week faster startup – +$30M 30% lower installed ICSS cost

Prefabricated Modular Control Room with Reduced

footprint

Fiber optic cables are run directly from remote cabinets to the controller cabinet

without intermediate marshalling – saves time and cost & site work

Standard Instrumentation Automatic device commissioning for

HART devices

Preconfigured displays, alarms and procedures

enables rapid time to first production and full capacity

(Modular Control Room)

Process Skid Module is pre-wired with remote universal IO

standard cabinet (URMC) in factory then shipped to site – no site eng

Integrated Security

Fire and Gas Detectors

Modular Gas Plants

Up to 6 months reduction of construction lead time

30% construction cost reduction (~$50M)

Challenge Solved

CapEx

Factory-built plant with:

Standard cabinets

Remote UIO

Modular control room

Standard instrumentation

Integrated Safety & Security

Page 22: Industry Perspective

Equipment Templates for UOP Licensed Processes

Challenge Solved

OpEx

1H 2016 4Q 2015

2Q 2015

Aromatics Complex Oleflex Complex LNG Pre-treatment Complex

UOPR Gas Plant Naphtha Complex (incl. Modular)

Provides schematic representation of equipment

References to master tags

UOP PIC system interfaces

Embedded procedures

Page 23: Industry Perspective

Process Solution Suites for UOP

Orion Operator Workspace for UOP Unit

Advantage of Experion Solution Suite

UOP knowledge and experience captured into pre-

engineered solution suite for Experion

Reduce Start-up and Operations Risk and DCS

schedule by as much as 40%

Solution Suites consists of: Operational Knowledge

Control Knowledge

Safety Knowledge

Alarm Knowledge

Experion pre-integration for UOP

critical control system packages

Challenge Solved

OpEx

Page 24: Industry Perspective

Comprehensive & Integrated Process Safety Management

Detect Prevent Protect

Challenge Solved

Safety

Perimeter Monitoring Access Control & Monitoring Operator Training Emergency Shut Down

Gas Detection Alarm Management Asset Management Worker Safety

Page 25: Industry Perspective

Providing innovative solutions to continuously assess cyber risks in real time

Intuitive interface with at-a-glance visibility and

understanding with clear KPIs and drill down detail

Proactively identifies cyber vulnerabilities and threats and quantifies and prioritizes risks

Actionable intelligence with advice and decision support

Immediate information for ongoing situational awareness

Game-changing, platform delivering real time monitoring and management of cyber security risks

Developed specifically for industrial environments

Challenge Solved

Security

Page 26: Industry Perspective

Leveraging technology to stay relevant & competitive by migrating old systems

OR

Impact of Obsolescence

Product no longer available on the market

and has limited serviceability remaining

Can disrupt plant operations and impact:

- Safety

- Reliability

- Capacity

- Efficiency

Lean Execution of Migrations

Proven project execution Capability

Maintain, Support and Optimize

Why choose HPS

21st Century technology to reduce risk,

improve operability and efficiency

Challenge Solved

Technology

Page 27: Industry Perspective

Proactively reducing breakdowns and sustaining plant performance

Predict equipment failure

Define maintenance program

and shutdown (when, how long

and how many staff required)

Optimize spare part and inventory

Proven impact $7-20Mn per site per year

Challenge Solved

OpEx

Page 28: Industry Perspective

Revolutionary Wireless Measurement device for Continuous Web Applications

ZipLine

Optimize quality & productivity of paper machines & coaters

Experion MX

Maintaining our leadership in Pulp & Paper through innovation

Challenge Solved

OpEx

Unique sensor technology to monitor quality parameters on the machine

Fibre Optic Sensors

Unique Solutions to Increase Paper Mill Productivity

& Improve Asset Performance

Page 29: Industry Perspective

Getting more value from a complete portfolio of field devices and modular systems

Gas Instrumentation

Reduce Start-Up Time up to 50% on loop check

Up to 60% reduction in configuration & set-up

Tank Gauging

Pressure

Temperature

Level

Smart Multi-Variable (2016)

Analytical (Future)

Accurate Tank Gauging

Inventory management

Tank Terminal operations

Enraf SmartRadar

Enraf Servo Level Gauge

Tank Temperature Measurement

Easy to order, easy to install easy to maintain

Reduce billing discrepancy

Comprehensive Gas Pressure Regulating

Metering Products & Solutions

Field Instrumentation

Dif

fere

nti

ati

on

Modular Systems

Proven and Reliable, easy to use

Lowest Total Cost of Ownership

Comprehensive portfolio of Modular systems consisting of Experion LX, HC900, MasterLogic, RTU2020

Challenge Solved

Technology

Page 30: Industry Perspective

In summary, Everything We do is focused on helping you to…

Cloud Engineering

Experion Solution Suites for UOP

UniSim

HPS Offering

summary

3

Safety & Security

Operate safely and securely

2

Skills

Manage the skills gap & ensure

knowledge transfer

CapEx & OpEx

Do more with less

1 4

Technology

Leverage existing & new technology to

stay relevant & competitive

Assurance 360

Intuition Executive

Integrated Process Safety Manager

Cyber Security

ASM

OPC UA

Pulse™

SmartLine

Page 31: Industry Perspective

Agenda

IIoT

Solutions

Conclusions

Challenges

Page 32: Industry Perspective

Our objective is to put you, the customer, at the center of everything we do…

Cash Order

Delivery

Presales

Customer Touch Points

Time to bill

Invoice accuracy

Project engineering

Support

On-time product delivery

Product quality

Technical support

On-time proposals

Expected quality

Access to information

Order acceptance and confirmation

Timeliness of communication

On-track with schedule

Critical path avoidance

Re-work

Product quality

Expected delivery time

Expected lead time

1

2

5

4

3

6

Page 33: Industry Perspective

Introducing your Support Community

A modern Support Community that is easy to use, mobile friendly powered

by a powerful Knowledge Base and Case Management system

Configurable Dashboards

Real-time Status Updates

Knowledge Base / Search

Online TAC Case Management

Customer Specific Reports

Mobile Friendly

Next Now

Customer Communities & Forum

Live Help / Chat

Page 34: Industry Perspective

My Priorities

Continue to innovate to address your biggest concerns Do more with less Manage the skills gap and ensure knowledge transfer Operate safely, securely and in compliance Leverage existing and new technology to stay relevant and competitive

Continue to invest in technology differentiation and leading edge automation solutions

Build and strengthen our HPS culture to put customer experience at the heart of everything we do