Andy chatha - arc advisory group - rethinking it and automation solutions

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This presentation was given at ARC World Industry Forum 2011 in Orlando, FL

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Andy chatha - arc advisory group - rethinking it and automation solutions

  1. 1. Rethinking IT & Automation Solutions for Achieving Performance Breakthroughs Andy Chatha President ARC Advisory Group [email_address] Technology People Information Processes
  2. 2. <ul><li>Forum Goals </li></ul><ul><li>Rethinking IT Solutions </li></ul><ul><li>Rethinking Asset Lifecycle Management </li></ul><ul><li>Rethinking Operations & Automation </li></ul><ul><li>Rethinking Cyber Security </li></ul><ul><li>Performance-based Outsourcing </li></ul><ul><li>Top Strategies </li></ul>
  3. 3. ARC World Industry Forum Goals <ul><li>Four Forums to encourage collaboration among: </li></ul><ul><ul><li>IT, engineering, operations and supply chain executives </li></ul></ul><ul><li>Rethinking as the main theme to encourage: </li></ul><ul><ul><li>Open discussion and sharing of breakthrough ideas </li></ul></ul><ul><li>Conducted research related to many new topics: </li></ul><ul><ul><li>ALM, CPAS 2.0, cyber security, logistics, smart grid, sustainability </li></ul></ul><ul><li>Encourage active attendee participation with an audience response system </li></ul><ul><li>Invited many industry organizations to plan their meetings here </li></ul><ul><li>Encouraged industry media to cover the event </li></ul><ul><li>All presentations and panel discussions are being audio recorded for broad access </li></ul>
  4. 4. Today’s Business Drivers <ul><li>Security </li></ul><ul><li>Uncertainty </li></ul><ul><li>Scarce Resources </li></ul><ul><li>Need to Go Green </li></ul><ul><li>Global Competition </li></ul><ul><li>Changing Workforce </li></ul><ul><li>Increasing Regulations </li></ul><ul><li>Emerging Smart Grid </li></ul><ul><li>Easy IT Solutions </li></ul>Today’s business drivers demand agility
  5. 5. Easy IT Solutions are Proliferating <ul><li>Web Sites </li></ul><ul><li>Search </li></ul><ul><li>Phone </li></ul><ul><li>Web Apps </li></ul><ul><li>Web Meetings </li></ul><ul><li>GPS </li></ul><ul><li>eBook </li></ul><ul><li>Digital TV </li></ul><ul><li>Virtual PCs </li></ul><ul><li>Social Networks </li></ul>Cloud computing hides complexity from the user
  6. 6. Easy Collaboration Tools are Maturing eMail, Calendar BlackBerry Portals, Wikis, RSS IM, Videochat, NetPhone Webcast Business Process, Workflow Collaborative Devices Telepresence Social Networks Collaborative Authoring 2010 Distant Past Capability Presence time Telephone
  7. 7. Easy Collaboration Tools are Maturing eMail, Calendar BlackBerry Portals, Wikis, RSS IM, Videochat, NetPhone Webcast Business Process, Workflow Collaborative Devices Telepresence Collaborative Authoring Presence 2010 Distant Past Capability time Social Networks Telephone
  8. 8. Enterprise Collaboration Platform It takes more than a desk and a phone… Enterprise Collaboration Platform Department, Site, or Organization Enterprise Collaboration Platform Partner External External Individual Collaboration Environment
  9. 9. The Collaborative Enterprise Enterprise Technology Platforms are Becoming Enterprise Collaboration Platforms ARC Collaborative Management Model (CMM) Suppliers Customers Business Automation Supply Chain Operations Lifecycle
  10. 10. Four Disciplines of The Collaborative Enterprise Supply Chain Product Plant & Equipment Operations
  11. 11. Why Rethink Asset Lifecycle Management? <ul><li>Bigger, More Complex Projects </li></ul><ul><li>Riskier Business Opportunities </li></ul><ul><li>Limited Capital, Tough Capital Markets </li></ul><ul><li>More Mandatory Investments </li></ul><ul><li>Global Projects, Global Project Teams </li></ul><ul><li>Escalating Labor and Material Costs </li></ul><ul><li>Poor Asset Utilization, High O&M Costs </li></ul><ul><li>Aging Workforce, Lack of Skilled Workers </li></ul><ul><li>Legacy IT Systems Constrain Improvement </li></ul><ul><li>Easy IT solutions can help </li></ul>
  12. 12. ALM Begins with a Proper View of the Asset Primary Facilities Equipment Remote Reference Data Functional Design Procedural Project-Centric Project Mgmt Engr/Design Procurement Construction Support IT HW/SW Mobile MRO Material Asset-Centric Operations Process Engr Maintenance Reliability Activity Records Commercial Status History The Three Asset Classes are Equally Important to Success
  13. 13. Collaborative Devices are Emerging Device Users, Technical Support, and Service Technicians Can Interact via the Device’s Collaboration Workspace PM2009a1 pipeline mixer Interactive Chat: - Respond to status request - Run diagnostics - Upload error logs - etc. Planner Service Engineer Operator Technical Support Shift Supervisor
  14. 14. A New Model for the Major ALM Processes Project Performance Management (PPM) Asset Performance Management (APM)
  15. 15. Rethinking Operations Management Operations Management A Holistic Approach to Managing Operations is Needed Production Management Automation & Controls Business Integration Maintenance Management Regulatory Compliance Energy Management
  16. 16. Why Rethink Automation Systems? <ul><li>Not truly distributed </li></ul><ul><li>Not easy to upgrade or migrate </li></ul><ul><li>Susceptible to cyber attacks </li></ul><ul><li>Can’t do online software version updates </li></ul><ul><li>Do not prevent operational errors </li></ul><ul><li>Do not predict or avoid incidents </li></ul><ul><li>Do not provide zero downtime </li></ul><ul><li>Take too long to install & implement </li></ul><ul><li>Field devices are still not smart enough </li></ul><ul><li>Too complex & expensive </li></ul>
  17. 17. Why Rethink Cyber Security? <ul><li>Growing threat of cyber attacks </li></ul><ul><li>Pervasive use of IT in plant systems </li></ul><ul><li>Plant systems are no longer isolated </li></ul><ul><li>Plant systems require frequent software version updates </li></ul><ul><li>Cyber attack cost can be very high </li></ul><ul><li>Government mandate </li></ul>We need safe & secure systems
  18. 18. ARC CPAS 2.0 Vision Enables <ul><li>Highly distributed control </li></ul><ul><li>Safe and secure control </li></ul><ul><li>Autonomous execution </li></ul><ul><li>Online software version updates </li></ul><ul><li>Reduction in human errors </li></ul><ul><li>Incident prediction & prevention </li></ul><ul><li>Business and automation system unification </li></ul><ul><li>Power and automation systems integration </li></ul><ul><li>Dynamic production planning </li></ul><ul><li>Fast system implementation </li></ul><ul><li>Zero downtime </li></ul>
  19. 19. Automation Supplier Challenge <ul><li>Develop Automation Solutions that are: </li></ul><ul><li>Easy to use </li></ul><ul><li>Easy to implement </li></ul><ul><li>Easy to maintain </li></ul><ul><li>Easy to upgrade </li></ul><ul><li>Highly reliable </li></ul><ul><li>Highly flexible </li></ul><ul><li>Highly collaborative </li></ul><ul><li>Highly secure </li></ul>ARC CPAS 2.0 vision can help make easy automation solutions a reality
  20. 20. Performance-based Outsourcing (PBO) <ul><li>Main focus is on Logistics Outsourcing </li></ul><ul><li>What is performance-based outsourcing?  </li></ul><ul><li>How is PBO different from gain sharing and other types of contracts?  </li></ul><ul><li>What are the steps to creating a successful PBO relationship?  </li></ul><ul><li>Who is practicing PBO today and what benefits have they achieved?  </li></ul><ul><li>What are the main obstacles to implementing PBO? How do you overcome these obstacles? </li></ul><ul><li>Seminar with active attendee participation </li></ul>
  21. 21. Top Strategies <ul><li>Create a highly collaborative culture </li></ul><ul><li>Adopt easy IT collaboration platform </li></ul><ul><li>Adopt easy automation solutions </li></ul><ul><li>Standardize across all plants </li></ul><ul><li>Outsource non-core operations </li></ul><ul><li>Benchmark for continuous improvement </li></ul>Collaboration & agility are the seeds for achieving performance breakthroughs
  22. 22. Thank You. For more information, contact the author at achatha@arcweb.com or visit our web pages at www.arcweb.com
  23. 23. Acronyms Used in This Presentation <ul><li>AIM Asset Information Management </li></ul><ul><li>ALM Asset Lifecycle Management </li></ul><ul><li>CMM Collaborative Management Model </li></ul><ul><li>CPAS Collaborative Process Automation Systems </li></ul><ul><li>DCS Distributed Control Systems </li></ul><ul><li>ERP Enterprise Resource Planning </li></ul><ul><li>MES Manufacturing Execution System </li></ul><ul><li>OpX Operational Excellence </li></ul><ul><li>KPI Key Performance Indicators </li></ul><ul><li>PBO Performance-based Outsourcing </li></ul><ul><li>PLM Product Lifecycle Management </li></ul><ul><li>SCM Supply Chain Management </li></ul><ul><li>SOA Services Oriented Architecture </li></ul><ul><li>RPM Real-time Performance Management </li></ul>A complete list is available on ARC’s website: ARCweb.com
  24. 24. Smart Grid is on the Horizon <ul><li>Smart Grid is changing: </li></ul><ul><li>How we generate electricity </li></ul><ul><li>Where we generate electricity </li></ul><ul><li>How we distribute electricity </li></ul><ul><li>How we meet peak demand </li></ul><ul><li>How we store electricity </li></ul><ul><li>How we power our cars </li></ul><ul><li>How we price electricity </li></ul><ul><li>How we go green </li></ul>Smart Grid will empower the customer

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