Rethinking IT & Automation Solutionsfor Achieving Performance BreakthroughsAndy ChathaPresidentARC Advisory GroupAChatha@A...
2© ARC Advisory GroupForum GoalsRethinking IT SolutionsRethinking Asset Lifecycle ManagementRethinking Operations & Automa...
3© ARC Advisory GroupARC World Industry Forum Goals Four Forums to encourage collaboration among:• IT, engineering, opera...
4© ARC Advisory GroupToday’s Business Drivers Security Uncertainty Scarce Resources Need to Go Green Global Competiti...
5© ARC Advisory GroupEasy IT Solutions are Proliferating Web Sites Search Phone Web Apps Web Meetings GPS eBook Di...
6© ARC Advisory GroupEasy Collaboration Tools are MaturingeMail,CalendarBlackBerryPortals,Wikis, RSSIM,Videochat,NetPhoneW...
7© ARC Advisory GroupEasy Collaboration Tools are MaturingeMail,CalendarBlackBerryPortals,Wikis, RSSIM,Videochat,NetPhoneW...
8© ARC Advisory GroupEnterpriseCollaborationPlatformDepartment,Site, orOrganizationEnterprise Collaboration PlatformEnterp...
9© ARC Advisory GroupThe Collaborative EnterpriseSuppliers CustomersBusinessAutomationSupply ChainOperationsLifecycleARC C...
10© ARC Advisory GroupFour Disciplines of The Collaborative EnterpriseSupply Chain ProductPlant & Equipment Operations
11© ARC Advisory GroupWhy Rethink Asset Lifecycle Management? Bigger, More Complex Projects Riskier Business Opportuniti...
12© ARC Advisory GroupALM Begins with a Proper View of the AssetHumanVirtualPhysicalPrimaryFacilitiesEquipmentRemoteRefere...
13© ARC Advisory GroupCollaborative Devices are EmergingDevice Users, Technical Support, and Service TechniciansCan Intera...
14© ARC Advisory GroupA New Model for the Major ALM ProcessesPlan Design Procure Build Operate MaintainRetire &RecycleProj...
15© ARC Advisory GroupRethinking Operations ManagementOperations ManagementProductionManagementAutomation& ControlsBusines...
16© ARC Advisory GroupWhy Rethink Automation Systems? Not truly distributed Not easy to upgrade or migrate Susceptible ...
17© ARC Advisory GroupWhy Rethink Cyber Security? Growing threat of cyber attacks Pervasive use of IT in plant systems ...
18© ARC Advisory GroupARC CPAS 2.0 Vision Enables Highly distributed control Safe and secure control Autonomous executi...
19© ARC Advisory GroupAutomation Supplier ChallengeDevelop Automation Solutions that are: Easy to use Easy to implement...
20© ARC Advisory GroupPerformance-based Outsourcing (PBO) Main focus is on Logistics Outsourcing What is performance-bas...
21© ARC Advisory GroupTop Strategies1. Create a highly collaborative culture2. Adopt easy IT collaboration platform3. Adop...
22© ARC Advisory GroupThank You.For more information, contact the author atachatha@arcweb.com or visit our web pages atwww...
23© ARC Advisory GroupAcronyms Used in This PresentationAIM Asset Information ManagementALM Asset Lifecycle ManagementCMM ...
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Andy Chatha Rethinking IT & Automation Presentation @ ARC Industry Forum 2010

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Andy Chatha Rethinking IT & Automation Presentation @ ARC Industry Forum 2010 in Orlando, FL.
Today’s Business Drivers
Security
Uncertainty
Scarce Resources
Need to Go Green
Global Competition
Changing Workforce
Increasing Regulations
Emerging Smart Grid
Easy IT Solutions
Today’s business drivers demand agility

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Andy Chatha Rethinking IT & Automation Presentation @ ARC Industry Forum 2010

  1. 1. Rethinking IT & Automation Solutionsfor Achieving Performance BreakthroughsAndy ChathaPresidentARC Advisory GroupAChatha@ARCweb.comTechnologyPeopleInformationProcesses
  2. 2. 2© ARC Advisory GroupForum GoalsRethinking IT SolutionsRethinking Asset Lifecycle ManagementRethinking Operations & AutomationRethinking Cyber SecurityPerformance-based OutsourcingTop Strategies
  3. 3. 3© ARC Advisory GroupARC World Industry Forum Goals Four Forums to encourage collaboration among:• IT, engineering, operations and supply chain executives Rethinking as the main theme to encourage:• Open discussion and sharing of breakthrough ideas Conducted research related to many new topics:• ALM, CPAS 2.0, cyber security, logistics, smart grid,sustainability Encourage active attendee participation with anaudience response system Invited many industry organizations to plan theirmeetings here Encouraged industry media to cover the event All presentations and panel discussions are being audiorecorded for broad access
  4. 4. 4© ARC Advisory GroupToday’s Business Drivers Security Uncertainty Scarce Resources Need to Go Green Global Competition Changing Workforce Increasing Regulations Emerging Smart Grid Easy IT SolutionsToday’s business drivers demand agility
  5. 5. 5© ARC Advisory GroupEasy IT Solutions are Proliferating Web Sites Search Phone Web Apps Web Meetings GPS eBook Digital TV Virtual PCs Social NetworksCloud computing hides complexity from the user
  6. 6. 6© ARC Advisory GroupEasy Collaboration Tools are MaturingeMail,CalendarBlackBerryPortals,Wikis, RSSIM,Videochat,NetPhoneWebcastBusinessProcess,WorkflowCollaborativeDevicesTelepresenceSocialNetworksCollaborativeAuthoring2010Distant PastCapabilityPresencetimeTelephone
  7. 7. 7© ARC Advisory GroupEasy Collaboration Tools are MaturingeMail,CalendarBlackBerryPortals,Wikis, RSSIM,Videochat,NetPhoneWebcastBusinessProcess,WorkflowCollaborativeDevicesTelepresenceCollaborativeAuthoringPresence2010Distant PastCapabilitytimeSocialNetworksTelephone
  8. 8. 8© ARC Advisory GroupEnterpriseCollaborationPlatformDepartment,Site, orOrganizationEnterprise Collaboration PlatformEnterprise Collaboration PlatformPartnerExternalExternalIt takes more than a desk and a phone…Individual CollaborationEnvironment
  9. 9. 9© ARC Advisory GroupThe Collaborative EnterpriseSuppliers CustomersBusinessAutomationSupply ChainOperationsLifecycleARC Collaborative Management Model (CMM)
  10. 10. 10© ARC Advisory GroupFour Disciplines of The Collaborative EnterpriseSupply Chain ProductPlant & Equipment Operations
  11. 11. 11© ARC Advisory GroupWhy Rethink Asset Lifecycle Management? Bigger, More Complex Projects Riskier Business Opportunities Limited Capital, Tough Capital Markets More Mandatory Investments Global Projects, Global Project Teams Escalating Labor and Material Costs Poor Asset Utilization, High O&M Costs Aging Workforce, Lack of Skilled Workers Legacy IT Systems Constrain Improvement Easy IT solutions can help
  12. 12. 12© ARC Advisory GroupALM Begins with a Proper View of the AssetHumanVirtualPhysicalPrimaryFacilitiesEquipmentRemoteReference DataFunctionalDesignProceduralProject-CentricProject MgmtEngr/DesignProcurementConstructionSupportIT HW/SWMobileMRO MaterialAsset-CentricOperationsProcess EngrMaintenanceReliabilityActivity RecordsCommercialStatusHistoryThe Three Asset Classes are Equally Important to Success
  13. 13. 13© ARC Advisory GroupCollaborative Devices are EmergingDevice Users, Technical Support, and Service TechniciansCan Interact via the Device’s Collaboration WorkspacePM2009a1 pipeline mixerInteractive Chat:- Respond to status request- Run diagnostics- Upload error logs- etc.PlannerServiceEngineerOperatorTechnicalSupportShiftSupervisor
  14. 14. 14© ARC Advisory GroupA New Model for the Major ALM ProcessesPlan Design Procure Build Operate MaintainRetire &RecycleProject PerformanceManagement (PPM)Asset PerformanceManagement (APM)ProjectPerformanceManagement(PPM)AssetPerformanceManagement(APM)Asset & ProjectPortfolioManagement(APPM)HandoverModificationRequestsFundedProjectsNewFacilityRequests
  15. 15. 15© ARC Advisory GroupRethinking Operations ManagementOperations ManagementProductionManagementAutomation& ControlsBusinessIntegrationMaintenanceManagementRegulatoryComplianceEnergyManagementA Holistic Approach to Managing Operations is Needed
  16. 16. 16© ARC Advisory GroupWhy Rethink Automation Systems? Not truly distributed Not easy to upgrade or migrate Susceptible to cyber attacks Can’t do online software version updates Do not prevent operational errors Do not predict or avoid incidents Do not provide zero downtime Take too long to install & implement Field devices are still not smart enough Too complex & expensive
  17. 17. 17© ARC Advisory GroupWhy Rethink Cyber Security? Growing threat of cyber attacks Pervasive use of IT in plant systems Plant systems are no longer isolated Plant systems require frequent softwareversion updates Cyber attack cost can be very high Government mandateWe need safe & secure systems
  18. 18. 18© ARC Advisory GroupARC CPAS 2.0 Vision Enables Highly distributed control Safe and secure control Autonomous execution Online software version updates Reduction in human errors Incident prediction & prevention Business and automation system unification Power and automation systems integration Dynamic production planning Fast system implementation Zero downtime
  19. 19. 19© ARC Advisory GroupAutomation Supplier ChallengeDevelop Automation Solutions that are: Easy to use Easy to implement Easy to maintain Easy to upgrade Highly reliable Highly flexible Highly collaborative Highly secureARC CPAS 2.0 vision can help make easy automationsolutions a reality
  20. 20. 20© ARC Advisory GroupPerformance-based Outsourcing (PBO) Main focus is on Logistics Outsourcing What is performance-based outsourcing? How is PBO different from gain sharing andother types of contracts? What are the steps to creating a successfulPBO relationship? Who is practicing PBO today and whatbenefits have they achieved? What are the main obstacles to implementingPBO? How do you overcome these obstacles? Seminar with active attendee participation
  21. 21. 21© ARC Advisory GroupTop Strategies1. Create a highly collaborative culture2. Adopt easy IT collaboration platform3. Adopt easy automation solutions4. Standardize across all plants5. Outsource non-core operations6. Benchmark for continuous improvementCollaboration & agility are the seeds forachieving performance breakthroughs
  22. 22. 22© ARC Advisory GroupThank You.For more information, contact the author atachatha@arcweb.com or visit our web pages atwww.arcweb.com
  23. 23. 23© ARC Advisory GroupAcronyms Used in This PresentationAIM Asset Information ManagementALM Asset Lifecycle ManagementCMM Collaborative Management ModelCPAS Collaborative Process Automation SystemsDCS Distributed Control SystemsERP Enterprise Resource PlanningMES Manufacturing Execution SystemOpX Operational ExcellenceKPI Key Performance IndicatorsPBO Performance-based OutsourcingPLM Product Lifecycle ManagementSCM Supply Chain ManagementSOA Services Oriented ArchitectureRPM Real-time Performance ManagementA complete list is available on ARC’s website: ARCweb.com

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