Digitalization for profitability and cost optimisation. revised
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Schneider Electric at the NAICE 2018 talking on trends in dgitalization
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Digitalization for profitability and cost optimisation. revised
- 1. Driving profitability and cost-optimisationDriving profitability and cost-optimisation through digitalizationthrough digitalization Confidential Property of Schneider Electric Presented by: Tolulope Falola, Oil & Gas Segment Lead
- 2. Page 2Confidential Property of Schneider Electric | The Challenges in O&G
- 3. What’s driving digitalization in industry? CONNECTIVITY • Smart connected devices (products) • Standards-driven connectivity • Lower cost of measurement MOBILITY • Pervasive and affordable communication • Remote access • User-driven interfaces CLOUD ANALYTICS • Massive aggregation of data • Data access by specialists • Industrial application developer ecosystem • Cognitive applications • Artificial intelligence optimizing performance at all levels Confidential Property of Schneider Electric |Page 3
- 4. Page 4Confidential Property of Schneider Electric | Macroeconomic Trends
- 5. EcoStruxure: our IoT-enabled, open, and interoperable system architecture Connected Products Edge Control Apps, Analytics & Services EndtoEnd Cybersecurity Cloudand/orOn Premise InfrastructureBuilding Data Center Industry Page 5Confidential Property of Schneider Electric | EcoStruxureTM Grid EcoStruxureTM IT EcoStruxureTM Plant EcoStruxureTM Machine EcoStruxureTM Building EcoStruxureTM Power
- 6. Customer First / APMaaS EcoStruxure Asset Advisor Digital asset life cycle management Remote and on-site monitoring of customers assets -Maintenance plan -Detect obsolete parts -Spares availability Predictive maintenance Anticipate and plan maintenance activities Improve asset performance with predictive analytics Profit Advisor Software analytics to optimize operational efficiency and drive profitability Page 6Confidential Property of Schneider Electric | Solutions Driving Profitability through Technology EcoStruxure Profit Advisor
- 7. The Customer - Dangote Refinery •Nigerian Private Refinery Investor: Largest Refinery Project in Africa •Capacity of 650,000 barrels per day. Customer Challenge •Safety •Business Process efficiency and optimization •Profitability •No unplanned outages •Process Reliability •Big Data Analysis and integration •Seamless communication and integration- People- Process-Asset •Lifecycle support & Maintenance The Solution •Deployment of IPMCC solution( Intelligent Power Motor control centre - Low Voltage system with open communication protocols with ICSS (Integrated Control and safety systems) with IRIS (Integrated Refinery Information Systems) software solutions •Centralized control and data management, automation, electrical distribution The Results •Improved operational efficiency and reliability •Meet OPEX reduction goals without reduced productivity Dangote Refinery Project Page 7Confidential Property of Schneider Electric | Apps, analytics, and services Edge control Connected products Supply, Demand, Sustainability Altivar Process Power metersPower meters Industry
- 8. Confidential Property of Schneider Electric |Page 8 2 million licenses of our software platform are in 100,000+ sites globally 20 billion operating parameters are monitored in our installed base 4 trillion industrial transactions are processed and stored every day 4 thousand industrial application companies use our system platform today with 160,000 developers We have leading IoT software The most prevalent information management platform for industrial segments and infrastructure
- 9. A proven global leader Our safety and control solutions run the largest refinery in the world We help to refine 30% of the world’s crude oil We enable more than 60% of LNG production in the world 80% of the largest pipeline operators in the world trust our solutions We address more than 80% of the onshore production and operation market. We manage 80% of the supply chain pricing and billing transactions in North America Page 9Confidential Property of Schneider Electric |
Editor's Notes
- This is an example of a Title Slide. We need to convey Life Is On in everything we do, so try to lead with compelling images that are vibrant, authentic, and human. The human element should be apparent and within the context of a segment that we touch. To keep this PowerPoint template file size reduced, we included a small library of image choices in the Slide Master (under View). You can also get them from the SE Asset Library: https://schneiderelectric.telescopeondemand.com
- Talking points: Four major technology and market changes are driving digitization in the industrial sector: Connectivity – standards-driven connectivity has allowed for the large scale deployment of wireless sensors. In addition, the sensors themselves have become much more cost-effective. Both are rapidly increasing the deployment of IIoT Mobility – the proliferation of smart devices means communication has become pervasive. User experiences are easy and rich. And it allows for user-recognition – the buildings, machines etc. recognizes me because of my mobile device Cloud – sharing data, working at the same time using the same database to improve efficiency. This was not possible before. It also means that large companies can have the specialists, regardless of their location, manage their facilities and assets anywhere, remotely Analytics – the increasing use of analytics in Industry to provide the context and ability for operators to become real-time business decision makers. This optimization is felt at every level of a company Additional comments: All of these not only provide context for operators but also mean that operators can better understand the health of their assets and leverage our global field services to extend the life of their assets – reducing CAPEX and optimizing OPEX.
- EcoStruxure is our IoT-enabled open and interoperable system architecture and platform delivering enhanced value around safety, reliability, efficiency, sustainability and connectivity for our customers. We have leveraged advancements in IoT, mobility, sensing, cloud, analytics, and cybersecurity technologies to deliver Innovation At Every Level from Connected Products to Edge Control to Applications, Analytics and Services. Is the industry-leading Technology Stack from connected products to edge control, to applications, analytics, and services. •Connected Products: Our first conviction is innovating at our core to produce great connected products. Because the Internet of Things starts with things, it is intelligent products like connected UPS, power distribution units, breakers, sensors, CRAC units, security cameras that serve as the foundation of smarter operations. •Edge Control: We enable our customers to have real time solutions for control at the Edge of the IoT network. For mission critical scenarios, not all control decisions can be made remotely and overridable control of devices at the Edge of the network of things is a must. Software for Data cemters in this level is more for monitoring, less or control. •Applications, Analytics and Services: Our customers come with a variety of hardware and systems. EcoStruxure enables the most extensive breadth of agnostic Applications, Services and Analytics working with any hardware, any systems, and any control.
- CUSTOMER OVERVIEW: SWDE is one of the 2 Country Target accounts selected in Belgium. This utility services half of Belgium. The KAM is Philippe Guedes. He leads a multi entity team and has more than 10 years of experience with this customer, its operational people across the regions and its GTM “eco system” of partners: system integrators,…. SWDE has a 350 M € turnover. CHALLENGE OVERVIEW: The average age of pipes is 56 years and the current replacement rate is below the 1% target. Reasons are administrative (permits) but the funding can be provided only by reducing Opex. OPEX Reduction challenge entails: 20% staff reduction until 2022 (many stations going unmanned) 15% energy needs reduction until 2030 ( 15Mio € cost/year currently) 1,1Mio M3 leakage reduction / year (25% NRW today) SOLUTION OVERVIEW: 1000 units of M580-RTU Plcs to be connected to the existing central Wonderware system platform Altivar Process drives Energy accounting system (Resource Advisor/ PM 5320 meters) + (in the pipe): Intouch on bigger sites SM6 MV equipment Pumping scheduling + (to up-sell): Leakage SW Maintenance SW . BENEFITS: REASONS TO CHOOSE OUR SOLUTION: The =S= complete architecture with the specific characteristics of the products/components allows a seamless stream of info between layers. Our value prop : from “field devices” to “analytics” is the only one allowing SWDE plan. Its is a perfect example of the Eco Xre concept. Please refer to the previous slide and insist on the fact that we cover all parts of the architecture with our Water offering. The innovation introduced on Plcs, Drives were very instrumental on the success. This is no bullshit . It pays off. To be complete, we shall note though that the succes comes from the products caracteristics and their ability to communicate in a system; there is not much smart data exchange between the plcs and the drives for instance. Naturally the sales team skills are to be highlighted too….In 2012 the Scada+Rtu providers (SimView and T Box) were preferred by the IT department due mainly to costs but their technical solution would not allow to support a web based architecture. More over obsolescence of their installed solutions may have caused a breakdown of the distribution system. No need to illustrate the customer pain, not the political issues which may have happened. The Utility was becoming overly stressed by the lack of a proper solution. Moreover the problem was not only to secure the basic operational needs but as well to allow the strategic plan. The reduction of Opex deemed necessary by the investment gap. The cost reductions (people, energy,…) require to implement “data+analysis+modify” strategies. This is mostly achievable with the help of softwares . THE APPLICATION SOLD: The case of the SWDE is the dream case and perfect illustration of the concept! We cover all 3 layers…. In Nov 2015 the PLC program order was received : Siemens -slightly cheaper- was beaten thanks to our better cybersecurity (DNP3+ protocol and embedded features), our higher performances and the influence of the different stakeholders capturing a better share of the project value with us.The drives are 50% =S=, 50% ABB in principle. In fact the SIs/panelbuilders purchases and even if ABB is extremely aggressive on prices, our advantage –configuration time- outweights the pure buying price.A Ressource advisor order scopes the detailed reporting above EU regulations: on major sites several meters will allow to deep dive and implement energy reduction actions. Combined with our existing installed base of legacy Plcs or Drives and with the 2 existing Archestra/ Wware platform general supervision (by Tracys) , SWDE illustrates perfectly that our innovations combined together are key to manage such complex operations as Water utilities. External actors like Endress+H or the local Contracting like Balteau or Degremeont supported as well our collaborative model. The discontinued SiView scada of AstenTech will be replaced by local Intouch SW. Under consideration is an Aquis software module (on the global system) which would allow to avoid pumping water to fulfill storage tanks during peak time cost of KWh We are certainly well positioned to sell the full Aquis SW to visualize the network behavior and select leakage investigations priorities. Since SWDE has no Maintenance SW we shall as well prevent IBM or ABB to connect their SWs on our platform…. . HIGHLIGHTS OF SUCCESS Results are clear: the Wware platform contract (2012-2017) as a foundation for the new blocks has been thoroughly tested and validated. The current phases are a strict implementation. Hence simple KPIs are not available as such but the following points are proven: The management of SWDE today has regained confidence on the possibility of their master plan; they trust our integrated engineering approach. The time plan is deemed realistic now. They see as well that our phased methodologies are critical for the future savings. Projects must be executed step by steps. We still need to embark all divisions and decision makers on the next optimization projects. Lots to do still to build up on the backbone of data !
- Talking points: We are not new to the industrial software space We have 4000 industrial application companies using our system platform today, and 160,000 developers We have 2 million licenses of that platform at over 100,000 sites all over the world There are 20 billion operating parameters monitored in our installed based and 4 trillion industrial transactions process and stored every day in that installed base
- Closing slide