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Flexible, Scalable Asset Management Solutions to Help You Increase Uptime

Flexible, Scalable Asset Management Solutions to Help You Increase Uptime. Agenda. Asset Management. Reliability Strategy. Storeroom. ERP and CMMS. Networked Devices. Firmware. Session Objectives. Keys to Its Success How to Position it Strategically in Your Organization.

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Flexible, Scalable Asset Management Solutions to Help You Increase Uptime

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  1. Flexible, Scalable Asset Management Solutions to Help You Increase Uptime

  2. Agenda Asset Management Reliability Strategy Storeroom ERP and CMMS Networked Devices Firmware

  3. Session Objectives Keys to Its Success How to Position it Strategically in Your Organization Asset Management • Make Connection with Opportunities You Have • Perspective on Path Forward • Electrical and Instrumentation Focus Getting Started Some Examples • Reliability Centered Maintenance • Storeroom, ERP, Connected Devices, Firmware

  4. 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?

  5. Where to Start the Journey: Step by Step

  6. Enterprise Asset Management The management of assets across departments, locations, facilities and business units Improve your cost position by managing your assets • Improves utilization and performance • Reduces capital costs • Reduces asset-related operating costs • Extends asset life • Improves RONA

  7. Asset Management at a Glance PAS 55 being replaced by ISO 55000 in 2014

  8. Asset Management:Operational Effectiveness Evaluation Leading • 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 Optimizing • 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 Practicing • SOPs exist • Limited collaboration across stakeholder organizations • KPI metrics • Unclear accountability for whole process suite • Dedicated manager • Lifecycle opportunities identified Developing • Informal process • Individual metrics • Methodologies recognize key repeatable steps • Ad hoc management Aware • Reactive • No coordinated management • No metrics • Corrective projects w/o methodology Operational Effectiveness Improving asset effectiveness – becomes self funding

  9. Rockwell AutomationAsset Management Process • A step-by-step approach to implement a customized, scalable solution Set Goals Prioritize Improvement Take ROI Driven Action Get Results Reduce your MRO parts spend by as much as 25 percent while improving plant profitability and uptime

  10. Agenda Asset Management Reliability Strategy Storeroom ERP and CMMS Networked Devices Firmware

  11. Maintenance and Reliability – It is about What to Know and Do? Downtime Time

  12. 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

  13. Criticality and Reliability Centered Maintenance (RCM) Criticality-based maintenance strategies support asset management • 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

  14. Agenda Asset Management Reliability Strategy Storeroom ERP and CMMS Networked Devices Firmware

  15. Asset Management Supports Storeroom Strategy Interrelated processes impact business objectives

  16. Asset Management: Storeroom Management is Critical • 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? At least 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?

  17. Asset Management: Rockwell Automation Storeroom Improvement A step-by-step approach to implement storeroom management 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. Rockwell Automation Focus: Reducing Demand Side

  18. Asset Management: Storeroom • Benefits • Reduce inventorylevels and MRO costs • Improve MRO management process • Improve KPIs (inventory accuracy, shipped on time, cycle count accuracy, etc., • Improve maintenance decisions • Reduce storeroom costs • Manage obsolescence • Reduce stockouts • Features • Point or complete solutions • Usage analysis identifies areas for SKU reduction • Increase capacity without adding space • Streamline reporting structure and standardize processes • Move and reorganize storeroom • Efficient Labor Utilization Improvement Focus is to Sustainably Lower Demand

  19. Agenda Asset Management Reliability Strategy Storeroom ERP and CMMS Networked Devices Firmware

  20. Enterprise Business System Suppliers Customer Asset Management: ERP and CMMS Processes • Business and compliance • Supply chains • IT and operations functionality Convergence Convergence of ERP and control systems helps ensure high productivity

  21. Asset Management: ERP/CMMS Data Improvement Use your ERP system to manage critical asset data • 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

  22. Asset Management: Rockwell Automation is a Certified Meridium Partner • Strategy Actions • Work Orders SAP EAM / CMMS Oracle Maximo Indus • APM Analysis • Searches • Queries • Datasets • Reports • Graphs A P M • 3 Main Data Sources • Equipment • Work History • Functional Location

  23. Asset Management: Meridium and Maintenance System Integration Work Planning Work Scheduling Strategy Development • IntegratedData Sources • Production • Engineering • Inspection • Condition • Financial • Incidents • Process Historians Effectiveness Efficiency Analysis/Assessment Work History Work Execution Computerized Maintenance Management System (CMMS) Data management facilitates parts and process management

  24. Agenda Asset Management Reliability Strategy Storeroom ERP and CMMS Networked Devices Firmware

  25. Asset Management: Converging Plant Floor and Storeroom • 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? • 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?

  26. Asset Management for Networked Devices State of the Art Focus on Electrical and Instrumentation • 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

  27. Agenda Asset Management Reliability Strategy Storeroom ERP and CMMS Networked Devices Firmware

  28. Asset Management: Firmware Services A solution for the failed component replacement scenario to minimize unplanned downtime risk. 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. 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

  29. Firmware Services Installed Base Data Collection Load Data Change Management FW Management SOP’s Data Formatting & Evaluation IMPLEMENT … develop a sustainable firmware management solution. Test Station Firmware Library

  30. Asset Management: Firmware Management Services • 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 firmware Now that you’ve identified critical assets, how are you tracking them in your system? • 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)

  31. Asset Management:Return on Investment Proven tools that demonstrate ROI

  32. Benefits of Asset Management 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

  33. Asset Management:Operational Effectiveness Evaluation Leading • 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 Optimizing • 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 Practicing • SOPs exist • Limited collaboration across stakeholder organizations • KPI metrics • Unclear accountability for whole process suite • Dedicated manager • Lifecycle opportunities identified Developing • Informal process • Individual metrics • Methodologies recognize key repeatable steps • Ad hoc management Aware • Reactive • No coordinated management • No metrics • Corrective projects w/o methodology Operational Effectiveness With Each Step… Get Buy-in … Keep Moving …

  34. Asset Management: Storeroom Strategic Alignment Business Objectives Strategic Alignment Reliability Storeroom

  35. Real Results Heavy Equipment Manufacturer • Transmission plant • Produces transmissions for tractors and off-road equipment • Undergoing significant facility expansion • Uptime is critical • Changing out their storeroom vendor 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

  36. Real Results • Completed Six Sigma Study • Established new model for reviewing stock re-orders and eliminating duplicate or unnecessary orders • Performed Business Process Analysis • Storeroom 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 transactions • Implemented 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?

  37. Session Objectives Keys to Its Success How to Position it Strategically in Your Organization Asset Management • Make Connection with Opportunities You Have • Perspective on Path Forward • Electrical and Instrumentation Focus Getting Started Some Examples • Reliability Centered Maintenance • Storeroom, ERP, Connected Devices, Firmware

  38. Questions?

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