ARC's Sid Snitkin's ALM Presentation from ARC's 2008 Industry Forum in Orlando, FL.

1. Sid Snitkin
Vice-President
ARC Advisory Group
srsnitkin@arcweb.com
Asset Lifecycle Management (ALM)
A Community Worth Joining!
AIM For Excellence

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Why an ALM Community/Service …
 ARC Research Area for Over a Decade
• Coverage: EAM, FSM, PAM, PET, Plant Design, etc.
• Activities: Studies, EAS Reports, BP Research, Workshops
• Concepts: ALM, CALM, DOM, DOM Interoperability
 What Have We Learned?
• Asset Management is Critically Important in its own right
• Problems cause incredible financial costs every year
• EH&S impact can be even more important
• Issues are different and span many groups, technologies
• Many shared with manufacturing/automation
• Many outside of manufacturing/automation
• Need all groups collaborating to overcome key challenges

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DOM – A Model for ALM & Asset Performance
Optimum
Performance
Design Maintain
Operate
The Right
Capability
High
Availability
Optimal
Utilization
Optimum
Performance
X X =
Design MaintainOperate Win!
Optimum Performance Requires “Joint” Optimization!

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Focus of ALM Community/Service
Optimum
Performance
Design Maintain
Operate
ALM Focus
Manufacturing
Focus

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ALM Will Reflect the O/O View of Community
Fabricators
Construction
Contractors
Maint Service
Providers
Shareholders
Repair Shops
OEMs
Engr &
EPCs
Consumables
Financial Regulators
EH&S Regulators
Product Supply Chain
Design Maintain
Operate
Improve
OEMs & Parts
Distributors
Optimum
Performance

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 Communities for key Topics/Issues (AIM, PAM, etc.)
 On-line support: Blogs, wikis, web meetings, etc.
 Community-driven ARC Research
 Community-driven ARC Forums (Houston ALM Forum)
 Augmenting, not duplicating efforts of other groups
(OpenO&M, Fiatech, etc.)
Use ARC ALM Communities for collaborative
solving of your critical problems !
ARC’s ALM Service Will Include …

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ARC ALM Forum Houston, TX, Oct 6-8, 2008
 Presentations and panel discussions by O/Os, suppliers,
and ARC analysts - Learn what leading, companies are doing
to address ALM Issues.
 Workshops - increase your understanding of standards that
are emerging around ALM.
 Facilitated discussion groups - on key ALM topics will give
you an opportunity to work collaboratively with peers and
suppliers to identify solutions to shared problems
 Technology Showcase - learn more about specific products
and discuss your needs with technology experts
 Great opportunity for networking ! AIM For Excellence
Join the ALM Community and share
ideas at this Important Event!

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Manufacturing IT Benchmarking
… Another ARC Community Effort !

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A Manufacturing Community Challenge …
 Manufacturing IT Issues/Concerns
• How do my Systems compare with Peers - Industry/Region?
• Are my IT Investments too big, too small, just right?
• Am I addressing the right areas – opportunities & threats?
 General IT Surveys Don’t Provide the Answers
• Manufacturing IT More Complex
• Don’t Address Many Manufacturing IT Issues
• Aren’t Comprehensive Enough to Answer Real Questions

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A Manufacturing Community Solution …
 Global Database of Information Reflecting:
• IT Application/Feature Adoption by Mfgs–all Regions/Verticals
• Current State
• Planned Investments for This Year
• Likely Investments over next 3 Years
• Drivers/Targets of planned IT Investments
• Impact of Global Trends
• Business Area/Objective
 Annual Update via websurvey of users
• Comprehensive to ensure information is useful
• Selective to enable broad participation
• Benefits reflect community support

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Creates Community-shared Value –
How Are Manufacturers Reacting to Market Trends?
0 20 40 60 80 100
Market Price Erosion
Shrinking Product Lifecycles
More Product Customization
Higher Quality Requirements
Better Service Requirements
Increasing Regs & Compliance
Geographical Shifts in Market
Globalization of Operations
Globalization of Product Design
Constrained Growth
Industry Consolidation
Aging Workforce
Lack of Skilled Workforce
Rising IT Support Costs
Market Trend Impact on IT Investments
North America, Chemicals
Very big
impact
Big Impact
Important
Not
Important

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Creates Community-shared Value –
Where are they Focusing New IT Investments?
11%
4%
22%
15%
15%
7%
4%
4%
18%
Focus for IT Investments
EMEA, Automotive
Management of Customers
products and/or design
processes
Manufacturing Operations
Supply Chain
processes/practices
Risk & Regulatory Compliance
Management of Suppliers
Management and/or capabilities
of Employees
Financial Systems and/or
Financial Supply Chains
IT Systems and/or IT
Operations

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Creates Community-shared Value –
What are they hoping to accomplish?
3%
7%
11%
4%
7%
18%
14%
9%
9%
18%
Objective for IT Investments - Mfg Operations
Asia, Metals
Real-time visibility of Manufacturing
Operations
Better Genealogy Tracking
Integration of Plant & Enterprise
Better Planning & Scheduling
Lower Plant Operating Costs
Higher Plant Availability
Better EH&S Compliance
Better Investment Planning
Better Project Management
Shorter Shutdowns, Turnarounds and
Outages

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Creates Community-shared Value –
What IT Applications Do They/Will They Have?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FIN HR PLM-D SRM CRM Prod SCM WMS TMS GTM PLM-P EAM FSM PIT EIT
Current IT Portfolio
Latin America, Pulp & Paper
Have Plan to Acquire in This Year
Plan to Acquire within 3 Years No Plans to Acquire
Not Applicable

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Creates Community-shared Value –
Who is Adopting New Technologies/Ideas?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
N.A. EMEA Asia L.A.
%ofRegionalSample
Manufacturing – Real-time Visibility
Pulp & Paper, Latin America
Have
Plan to Acquire in This
Year
Plan to Acquire within 3
Years
No Plans to Acquire
Not Applicable

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16%
9%
7%
4%
4%
3%
3%
2%2%2%2%
46%
CPM/MES Suppliers
Discrete Industries, North America
Applied Materials
SAP
Camstar
Visiprise
Rockwell
Siemens
IBS AG
Oracle
Activplant
Apriso
IBM SiView
Other
Creates Community-shared Value –
Whose Technology Are They Using?

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16%
9%
7%
4%
4%
3%
3%2%2%
50%
CPM/MES Suppliers
Process Industries, North America
OSISoft
Honeywell
Aspen Technology
Rockwell
Invensys
ABB
SAP
Matrikon
Emerson
Other
Creates Community-shared Value –
Whose Technology Are They Using?

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Creates Community-shared Value –
How Fast Will Adoption Occur?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2011
%ofSurveySample
Real-time Visibility, 2008-2011
North America, Process Industries
Not Applicable No Plans to Acquire
Plan to Acquire within 3 Years Plan to Acquire in This Year
Have

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Thank You
For more information, contact the author at
ssnitkin@arcweb.com or visit our website at
www.arcweb.com

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Acronyms Used in This Presentation
AIM Asset Information Management
ALM Asset Lifecycle Management
Apps Software Aplications
BP Best Practice
CALM Collaborative Asset Lifecycle Management
DOM Design, Operate, Maintain
EAM Enterprise Asset Management
EAS Enterprise Advisory Services
EH&S Environmental, Health & Safety
EPC Engineer, Procure and Construct Company
Fiatech Industry Organization focused on Facility
Design, Build, Operate & Maintain
FSM Field Service Management
Info Information
A complete list is available on ARC’s Homepage: ARCweb.com

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Acronyms Used in This Presentation
OEM Original Equipment Manufacturer
O/O Owner/Operator of the Asset
OpenO&M Consortium of Standards Organizations
involved in Operations & Maintenance
OPEX Operating Expenses
PAM Predictive Asset Management
PET Process Engineering Tools
P&ID Process and Instrumentation Diagram
ROA Return on Assets
A complete list is available on ARC’s Homepage: ARCweb.com