ARC's Bob Mick Asset Performance Management Presentation @ ARC Industry Forum 2010

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ARC's Bob Mick Asset Performance Management Presentation @ ARC Industry Forum 2010 in Orlando, FL.
Aligning IT Strategies with Asset Performance Management
How do I Start Improving AIM?
You Can Start Small – Build Artifacts for the Long Term
􀂍 What asset performance do I want to impact?
􀂍 How do I determine that performance?
􀂍 What roles influence that performance?
􀂍 What processes are involved?
􀂍 What information needed?
Share Information
may be used in is 􀂍 What info is shared?
• Where does it come from?
Local Processes
as well as Cross-
Functional Processes
• Who owns it (create, transform, change …)?
􀂍 What is required to manage quality?
􀂍 How can technology help?
Performance Specific Metrics, Roles and Processes
Are a Great Place to Start

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ARC's Bob Mick Asset Performance Management Presentation @ ARC Industry Forum 2010

  1. 1. li i i i hli i i i hAligning IT Strategies withAsset Performance ManagementAligning IT Strategies withAsset Performance ManagementggBob MickVP Emerging TechnologydARC Advisory Groupbmick@arcweb.com
  2. 2. APM Context for IT InitiativesAPM Context for IT InitiativesALM StrategiesKey IT Trends for APMKey IT Trends for APMContinuing Role of ALM Applications2© ARC Advisory Group
  3. 3. ARC Top Level Model for ALM and AIMProcesses & Information Drive IT StrategyARC Top Level Model for ALM and AIMProcesses & Information Drive IT StrategyP R O C E S S E SYHandoverProjectPerformanceManagementAssetPerformanceManagementOPLENOLOGYBUDGETg(Design & Build)Management(Operate & Maintain)ROAPEOTECHNModificationRequestsFundedProjectsNewAsset &ProjectPortfolioFacilityRequestsBENEFITSManagement(Evaluate & Select)Asset InformationManagementFor APM3© ARC Advisory GroupI N F O R M A T I O NFor APM
  4. 4. ARC’s ALM Is Based on Structured ModelsCritical to get the Top Level Right for Top DownARC’s ALM Is Based on Structured ModelsCritical to get the Top Level Right for Top DownLevel 1Level 2Level 3Level 34© ARC Advisory Group
  5. 5. Aligning IT Strategies with APMAligning IT Strategies with APM
  6. 6. Not Everyone Wants Big ALMIT Strategy Must Align with Business Commitment to ALMNot Everyone Wants Big ALMIT Strategy Must Align with Business Commitment to ALMLevel Business Commitment ActionAsset Management is part Holistic ALM initiativesOptimize of the way we thinkabout our businessBroad view of “assets”Formal ALIM IT StrategyPreemptiveBig asset investments areimminent!Want to get it rightFocus on ALMFormalize cross-functionalneeds and processesALMInformationManagement(ALIM)ProjectInformationManagement(PIM)Asset & ProjectPortfolio InfoManagement(APPIM)AssetInformationManagement(AIM)Want to get it rightFormal AIM IT StrategyImprovementAsset Reliability andPerformance are lowSome costs are too highAsset performance focusFocus on APMDefine metrics, identify andimprove related roles,processes and informationC ll b ti (M lti D t)LMValueROAServiceProvidersOperations &MaintenanceManagersOperators &MaintenanceTechniciansCorporate &Operations ITMROPurchasingProjectManagementMRO MaterialSuppliersAIMPerformanceMaintainPerformanceOperatePerformanceAsset performance focusCollaborative (Multi-Dept)MaintainCurrent asset practices fitmy business modelAsset Info Quality is OKMaintenance focusedDepartment drivenimprovementsROI based investmentsStrategic ApplicationsALCapital Costs (CAPEX) Net Income÷OPEXRevenueApplications!Equipment& SystemsSuppliersg ppClueless Asset Management? New CFOCapital Costs (CAPEX) Net IncomeROI6© ARC Advisory GroupBusiness Situation & Perception Drive AIM Investment
  7. 7. How do I Start Improving AIM?You Can Start Small – Build Artifacts for the Long TermHow do I Start Improving AIM?You Can Start Small – Build Artifacts for the Long TermWhat asset performance do I want to impact?How do I determine that performance?What roles influence that performance?What processes are involved?What information is needed?Share Informationmay be used inWhat information is needed?What info is shared?• Where does it come from?Local Processesas well as Cross-Functional Processes• Who owns it (create, transform, change …)?What is required to manage quality?How can technology help?How can technology help?Performance Specific Metrics, Roles and Processes7© ARC Advisory GroupAre a Great Place to Start
  8. 8. APM Process Refinement - Identify RolesProcesses & Information are Linked by RolesAPM Process Refinement - Identify RolesProcesses & Information are Linked by RolesOperations &MaintenanceManagersOperators &MaintenanceTechniciansCorporate &TechnicianspOperations ITIdentifyRoles(Examples)Refine TheseAPM ProcessesServiceProvidersMRO MaterialSuppliersAIMPerformance(Examples)MROProjectManagementMaintainPerformanceOperatePerformanceROAPurchasingManagement8© ARC Advisory GroupEquipment& SystemsSuppliers
  9. 9. Key IT Trends For ALMKey IT Trends For ALM
  10. 10. Technology Trends Leading to Easier AIMIn Support of Next Generation Enterprise SolutionsTechnology Trends Leading to Easier AIMIn Support of Next Generation Enterprise SolutionsTechnology Trend ClarificationCollaborative PlatformsEvolution of Technology Platforms.Collaborative Tools & EnvironmentsRole-based UserEnvironmentsWorkflow, Information, Tools, and SecurityOptimized for RolesModern Browser-basedUser InterfacesAJAX, RESTful, Silverlight … for higherproductivity in a BrowserManagement of shared informationMaster DataManagement PracticesManagement of shared informationCommon PracticesImprove information qualityPervasive Intelligenceand AnalyticsEmbedded in more role-based environmentsand applicationsySOA-Based SolutionsCommon Technology ApproachMore flexible10© ARC Advisory GroupAIM Strategies Can Build on Other IT Initiatives
  11. 11. Asset Information is ComplexAsset Info Ranges from Paper Drawings to Operating DataAsset Information is ComplexAsset Info Ranges from Paper Drawings to Operating DataDocumentFormats• PaperDataFormats• ProprietaryOrganized By“List” or “Object”Organized byDocumentsFiles Database“Drawings”P&IDInstallationElectricalPiping• Paper• Image• DWG, …• XML• Std XML• …Proprietary• RDB• Object DB• XML• Std XML• …“Data”Instrument ListsEquipment listsBill of MaterialsAsset (Object)Attribute Value NoteID P-300-27Type CPumpDFlow 200 CFMPR-MAX 3.5Material Ni-222 InternalP-300-27D-300-2003Piping…Virtual ViewsBill of MaterialsAssembliesSub-AssembliesStandardsPerformanceHistory…Virtual ModelsAsset (Object)Attribute Value NoteID P-300-27CVirtual ModelsMeta DataP-300-27Type CPumpDFlow 200 CFMPR-MAX 3.5Material Ni-222 Internal“Documents”ManualsOperating ProceduresMaintenance Procedures…11© ARC Advisory GroupFormal StructuresInformation Complexity Precludes Simple ALM Solutions
  12. 12. Master Data Management is EvolvingMDM Addresses Many AIM Quality & Cost ProblemsMaster Data Management is EvolvingMDM Addresses Many AIM Quality & Cost ProblemsQuality Issues ExplanationCategory CostAvoidanceEffort Taken to preventor minimize impactRedundant systems, paperQ y pOutdated andWrong ValuesInformation is obsolete orentered incorrectlyIncompleteDefinitionsMissing InformationA biNo units inconsistent Redundant systems, paperbackups …MitigationReentry of Information,redesign, rework,verifying information …AmbiguousInformationNo units, inconsistentunits, unrecognizableabbreviationsInconsistentFormatsFile formats, multipleproprietary formats orschemasInconsistentSame labels differentDelayLate projects, latestartups, increaseddowntime, lost customersInconsistentSemanticsmeaning - different labels,same meaningDifferent NationalLanguagesEnglish, French, Spanish,Chinese, …, units, dates, …Redundant ItemsSame or similar itemsdefined in multiple placesThe high cost of poor quality assetinformation has been wellU MDM P OMDM Practices and ToolsAddress Common Quality Issuesinformation has been welldocumented by NIST12© ARC Advisory GroupUse MDM Processes OnShared and Reused Asset Information
  13. 13. Trends In BI & AnalyticsAlign with Challenges of APMTrends In BI & AnalyticsAlign with Challenges of APMMetric ExamplesStep TechnologiesMethod IntelligenceEquipmentPerformanceOEE, Quality,Throughput, ReliabilityFinancial &ScheduleNPV/ROI,CAPEX/Schedule,/OInstrumentALM ProcessesBPM, Workflow andDomain ApplicationsCollectPerformanceInformationIntegration and ManualProcesses ScheduleRevenue/OPEXHealth & SafetyOSHA & SimilarRegulationsEnvironmentEPA & LocalG t R l tiInformationOrganize andStructureInformationBI Technologies,Possibly PortalsGovernment RegulationsSustainabilityEnergy Use,Carbon Footprint,Capabilities/TrainingDevelop KPIsand MakeVisibleMI and BI Technologieswith PortalsFind Inefficientand HighlyUsed processesBI and Process-orientedMI TechnologiesAsset Information DrivesBusiness PerformanceUsed p ocessesUse Intelligence and Analyticsto Instrument and ImproveAPM Processes13© ARC Advisory GroupTo Optimize Business ProcessesWe Must Apply Analytics … Analyze, Share, Collaborate
  14. 14. Generic Platforms are Not EnoughAIM Requires Domain Specific Frameworks, Components …Generic Platforms are Not EnoughAIM Requires Domain Specific Frameworks, Components …Function DescriptionInformationManagementIndependent storage of information to enable filling application gaps.Support both centralized and federated strategies. Parses AIM contentin support of asset information structure, asset objects, categories andrelationships Supports change management and versioningTechnology TrendCollaborative PlatformsRole-based Userrelationships. Supports change management and versioning.InformationLoadingSupports loading, validating, transforming and categorizing assetinformation from applications and legacy formats.StandardizationSupports industry standards for structuring and exchanging assetinformation.IntegrationIncludes tools for integration to common applications containing assetinformation, with prebuilt integrations for Engineering, Maintenanceand EAM applicationsRole based UserEnvironmentsModern Browser-basedUser InterfacesMaster Dataand EAM applications.InformationQualitySupports data quality strategies, including validation and quality checksat critical points in information flows. Aligns with corporate Data Qualityand MDM programs.InformationSharingProvides common asset information services directly usable byworkflow, visualization, analytics and other similar elements. Providesinformation in common formats.R l b d ith t l i t f AIM l I l dMaster DataManagement PracticesPervasive Intelligenceand AnalyticsSOA Based ProductsUser InterfaceRole-based with tools appropriate for AIM players. Includesvisualization of AIM content and collaborative workflow. Integrates withpopular enterprise portal frameworks.Terms andConceptsLanguage of AIM should be built into solutions to be effective for AIMplayers: Engineering, Operations, Maintenance, etc.CollaborationProvides an environment and workflows for collaborations in all ALMdomains. Includes capability to create and exchange packages,markups, comments, as-built, etc.SOA-Based Products markups, comments, as built, etc.ProjectsIncludes specific capabilities for associating asset information withengineering projects. For example, includes as-built concepts andhandling of multiple concurrent projects.Workflow Includes AIM specific workflows. Can be configured by AIM players.AnalyticsProvides metrics on workflows and content changes. Easily integrateswith common enterprise analytics software.14© ARC Advisory GroupAPM Domain Applications Can Make It Easier
  15. 15. Technology Evolution Makes APM EasierAnd Aligns with Enterprise Application RoadmapsTechnology Evolution Makes APM EasierAnd Aligns with Enterprise Application RoadmapsAIM Platform Enhancements• Asset Information types and formats• AIM Visualization components• Aggregation and federated info accessAIM Processes• AIM Data Model Management• AIM Content Loading & Linking• AIM Quality & Change Management Aggregation and federated info access• Support projects, as-built, asset objects• Data quality tools for AIM• etc.AIM Quality & Change Management• AIM Role-based User Access Management• ALM Collaboration ManagementO&MApplications15© ARC Advisory GroupCollaborative Platform(IBM, Microsoft, SAP, Oracle, …)
  16. 16. SummaryAIM Offers Difficult Challenges and Help Is on the WaySummaryAIM Offers Difficult Challenges and Help Is on the WayAsset Information is ComplexC t d i St i lti l lP R O C E S S E SYHandoverProjectPerformanceManagementAssetPerformanceManagement• Created in Stages in multiple places• Arrives in large quantities, all at once• Widely shared and transformed I N F O R M A T I O NPEOPLETECHNOLOGModificationRequestsFundedProjectsNewFacilityRequestsBUDGET(Design & Build) (Operate & Maintain)ROABENEFITSAsset &ProjectPortfolioManagement(Evaluate & Select)Enterprise IT Trends• Align with AIM• Need ALM ApplicationsLevel Business Commitment ActionOptimizeAsset Management is partof the way we thinkabout our businessHolistic ALM initiativesBroad view of “assets”Formal ALIM IT StrategyBig asset investments areFocus on ALMFormalize cross functionalALMInformationManagement(ALIM)ProjectInformationManagement(PIM)Asset & ProjectPortfolio InfoManagement(APPIM)AssetInformationManagement(AIM)• Need ALM ApplicationsALM Value• Builds with Program MaturityPreemptivegimminent!Want to get it rightFormalize cross-functionalneeds and processesFormal AIM IT StrategyImprovementAsset Reliability andPerformance are lowSome costs are too highAsset performance focusFocus on APMDefine metrics, identify andimprove related roles,processes and informationCollaborative (Multi-Dept)MaintainCurrent asset practices fitmy business modelAsset Info Quality is OKMaintenance focusedDepartment drivenimprovementsROI based investmentsStrategic ApplicationsALMValue(APPIM)Capital Costs (CAPEX) Net IncomeROI÷OPEXRevenueApplications!ROAServiceProvidersOperations &MaintenanceManagersOperators &MaintenanceTechniciansCorporate &Operations ITMROPurchasingEquipment& SystemsSuppliersProjectManagementMRO MaterialSuppliersAIMPerformanceMaintainPerformanceOperatePerformanceDefine an AIM IT StrategyClueless Asset Management? New CFO16© ARC Advisory GroupgyConsistent with Your Business Situation
  17. 17. Thank You.Thank You.For more information, contact bmick@arcweb.comor visit www.arcweb.com
  18. 18. Enterprise-wide APMProductive Assets are More Than EquipmentEnterprise-wide APMProductive Assets are More Than EquipmentPrimary InternalHumanPhysicalFacilitiesEquipmentRemoteOperators & AdminMaint Techs & EngrsPlant & Process EngrExternalCorporate COE’sEquip SuppliersService ProvidersSupportIT HW/SWMobileMRO MaterialVirtualR f D tMRO MaterialA ti it R dReference DataFunctionalDesignProceduralActivity RecordsCommercialStatusHistory18© ARC Advisory GroupEach Asset Class is Important and Valuable …Asset Managers Are Responsible for All !
  19. 19. Asset Performance Management (APM)Make APM an Enterprise ProgramAsset Performance Management (APM)Make APM an Enterprise ProgramLeveraging APM programs across multiple sites in anenterprise brings additional benefits:A source of good complete Benchmarking data• A source of good, complete Benchmarking data• A platform for testing/evaluating different strategies• A means to share costly parts/tools and unique expertise• A way to leverage lessons learned across the organizationImplementing an Enterprise APM program requiresinteroperability to extend across sites at the tactical andstrategic levels:• Common Asset Management Practices• Common and/or shared solutions (tactical & strategic)• Common data models and enterprise naming conventions19© ARC Advisory Group
  20. 20. A Model for ALM Information ManagementA Blend of ALM Process and Corporate StrategiesA Model for ALM Information ManagementA Blend of ALM Process and Corporate StrategiesALMInformationProjectInformationManagementAssetInformationM tManagement(ALIM)Management(PIM)Management(AIM)Asset & ProjectAsset & ProjectPortfolio InfoManagement(APPIM)20© ARC Advisory GroupALIM Improves ALM Performance Through Better HandoverProcesses and More Efficient Information Exchanges!

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