ARC's Sid Snitkin Asset Lifecycle Management @ ARC Industry Forum 2010 in Orlando, FL. Rethinking Asset Lifecycle Management ARC and Asset Lifecycle Management  ARC has a long history of research around ALM • Over 20 Years in Automation Systems and Field Devices • Over 10 Years in IT Systems related to ALM • ALM has been a key topic of ARC Forums for over 5 years  We have developed various models to help clients understand issues, develop strategies and select solutions • TEAM, ITEAM, CALM, DOM  ALM is a good match with our analysts’ capabilities • Ten analysts participate on our ALM Team • Most are Engineers with O&M and D&B experience • RCM, Reliability, Analytics

1. Rethinking Asset Lifecycle
Management
Rethinking Asset Lifecycle
Managementgg
Sid Snitkin
Vice-President & GM
Enterprise Advisory Services
ARC Advisory Group
srsnitkin@arcweb.com

2. ARC and Asset Lifecycle ManagementARC and Asset Lifecycle Management
 ARC has a long history of research around ALM
• Over 20 Years in Automation Systems and Field Devices
• Over 10 Years in IT Systems related to ALM
• ALM has been a key topic of ARC Forums for over 5 years
 We have developed various models to help clients We have developed various models to help clients
understand issues, develop strategies and select solutions
• TEAM, ITEAM, CALM, DOM
 ALM is a good match with our analysts’ capabilities ALM is a good match with our analysts capabilities
• Ten analysts participate on our ALM Team
• Most are Engineers with O&M and D&B experience
• RCM, Reliability, Analytics
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3. ARC and Asset Lifecycle ManagementARC and Asset Lifecycle Management
 Our Market Studies and End User reports cover all of the
Key technologies, IT solutions and Best Practices in ALM
PET PSC L S i• PET, PSC, Laser Scanning
• PAM, Field Devices, Mobile Devices, SCADA, etc.
• EAM, FSM, MRO Materials Mgmt
• EIM, AIM, GIS
 We have developed an ALM community, a website
dedicated to ALM and publish a monthly ALM newsletterdedicated to ALM and publish a monthly ALM newsletter
that is distributed to over 2500 ALM experts
 We have also provided consulting services on ALM issues
to many leading manufacturersto many leading manufacturers
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4. What Assets are we talking about?
ARC’s ALM Supports All Asset-Intensive Industries
What Assets are we talking about?
ARC’s ALM Supports All Asset-Intensive Industries
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5. A New Model for the Major ALM Processes
ALM Processes Have Specific Responsibilities
A New Model for the Major ALM Processes
ALM Processes Have Specific Responsibilities
Project Performance
Management (PPM)
Asset Performance
Management (APM)
Plan Design Procure Build Operate Maintain
Retire &
Recycle
Plan Design Procure Build Operate Maintain
Retire &
Recycle
Project AssetProject
Performance
Management
(PPM)
Asset
Performance
Management
(APM)
Handover
Asset & Project
Portfolio
Management
Modification
RequestsFunded
Projects
New
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Management
(APPM)
Facility
Requests

6. A New Model for ALM Goal Allocation
ALM Has to Balance & Integrate Many Goals
A New Model for ALM Goal Allocation
ALM Has to Balance & Integrate Many Goals
HandoverProject
Performance
Asset
Performance
Asset
Lif l
BUDGET
Management
(Design & Build)
Management
(Operate & Maintain)
ROA
Benefits
Lifecycle
Management Modification
Requests
Funded
Projects
New
Asset &
Project
Portfolio
Facility
Requests
BENEFITS
Management
(Evaluate & Select)
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7. A Model for ALM Processes Alignment
ALM Excellence Demands Interoperability
A Model for ALM Processes Alignment
ALM Excellence Demands Interoperability
Collaborative
People
Consistent
Collaborative
Teams
Processes
Compatible
Consistent
Processes
Technology
Complementary
p
Tools
Information
PPM APM APPM
p y
Data Models
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PPM APM APPM

8. An ALM Information Management Strategy
A Blend of ALM Process and Corporate Strategies
An ALM Information Management Strategy
A Blend of ALM Process and Corporate Strategies
ALM
Information
Project
Information
Management
Asset
Information
M tManagement
(ALIM)
Management
(PIM)
Management
(AIM)
Asset & ProjectAsset & Project
Portfolio Info
Management
(APPIM)
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ALIM Improves ALM Performance Through Better Handover
Processes and More Efficient Information Exchanges!

9. ARC Level 1 Model for ALM
The Major Processes, Goals and Information Mgmt
ARC Level 1 Model for ALM
The Major Processes, Goals and Information Mgmt
P R O C E S S E S
Y
HandoverProject
Performance
Management
Asset
Performance
Management
OPLE
NOLOGY
BUDGET
g
(Design & Build)
Management
(Operate & Maintain)
ROA
PEO
TECHN
Modification
Requests
Funded
Projects
New
Asset &
Project
Portfolio
M t Facility
Requests
BENEFITS
Management
(Evaluate & Select)
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I N F O R M A T I O N

10. A Structured Set of ALM Models
Structure Supports More Realistic Process Models
A Structured Set of ALM Models
Structure Supports More Realistic Process Models
Level 1
Level 2
Level 3Level 3
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11. A Typical Level 2 Model for APM
APM for a Process Manufacturing Facility
A Typical Level 2 Model for APM
APM for a Process Manufacturing Facility
E i t
Project
Management
Equipment
& Systems
Suppliers
O&M Service
Providers
Fabricators AIM
Performance
Construction
Services
MRO Material
Suppliers
Maintain
Performance
Operate
Performance
ROA
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Shareholders Regulators

12. A Typical Level 2 Model for PPM
PPM for a Process Manufacturing Facility
A Typical Level 2 Model for PPM
PPM for a Process Manufacturing Facility
Asset
Management
Strategic
Suppliers
Fabricators
Project
Management
Services
Construct
Project
Constructors
Engineering
Services Engineer Procure
Project
Information
Mgmt
BUDGETBUDGET
Services g
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Shareholders Regulators

13. Asset & Project Portfolio Management
APPM Processes and Stakeholders
Asset & Project Portfolio Management
APPM Processes and Stakeholders
Allocate
Resources
Manage
Evaluate
Solutions
Identify
Opportunities
Manage
Information
BENEFITSBENEFITS
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14. A Level 3 APM Model People & Processes
APM for a Process Manufacturing Facility
A Level 3 APM Model People & Processes
APM for a Process Manufacturing Facility
Plant & Project
Engineering Support
gic
PPM
Reliability
Engr.
Proc/Mfg
Engr.
Strateg
Operate Maintain
pment
anges
Production
Planning
Maintenance
Planning
ctical
Strategy Strategy
AP
Equi
Cha
Ta
Maint
Staff
Oper
Staff
Parts
Mgmt
Materials
Mgmt
PM
Safety & CM
utomatic
Operate Maintain
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Safety & CM
Systems
Au
Action FeedbackCoordination

15. A Level 3 APM Model for Technology
APM for a Process Manufacturing Facility
A Level 3 APM Model for Technology
APM for a Process Manufacturing Facility
Plant Engr
(M/E/Auto, EH&S)
tegic
RCM, ReliabilityProcess Models
Plant Design, 3D
Models, Laser
Scanning
Reliability
Engr.
Proc/Mfg
Engr.
Strat
Operate
Strategy
Maintain
Strategy
Analysis &
Simulation, RBI
& Simulation
Production
Planning
Maintenance
Planning
Tactical
MaintOper PartsMaterials
gy Strategy
EAM/CMMS,
Inspection,
Mobile
ERP,
CPM/MES,
EH&S,
Sustainability,
HR
Tic
Staff
p
Staff MgmtMgmt
Automation
S t LIMS
Mobile
Devices, RFID
CPM/MES,
Mobile Devices
Safety & CM
S t
Automat
Systems, LIMS,
Historians, Alarm
Systems, Safety
Systems, PAM
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Systems
A
Action FeedbackCoordination

16. A Level 3 APM Model for AIM
APM for a Process Manufacturing Facility
A Level 3 APM Model for AIM
APM for a Process Manufacturing Facility
Plant Engr
(M/E/Auto, EH&S)
tegic
RCM, ReliabilityProcess Models
Plant Design,
3D Models,
Project Mgmt
Reliability
Engr.
Proc/Mfg
Engr.
Strat
Operate
Strategy
Maintain
Strategy
Analysis &
Simulation, RBI
& Simulation
Production
Planning
Maintenance
Planning
Tactical
MaintOper PartsMaterials
gy Strategy
EAM/CMMS,
Inspection
ERP,
CPM/MES
EH&S,
Sustainability
Tic
Staff
p
Staff MgmtMgmt
Automation
S t LIMS
pCPM/MES
Safety & CM
S t
Automat
Systems, LIMS,
Historians, Alarm
Systems, Safety
Systems, PAM AIM
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Systems
A
Action FeedbackCoordination

17. A Level 3 APM Model for Information
APM for a Process Manufacturing Facility
A Level 3 APM Model for Information
APM for a Process Manufacturing Facility
Functional
• Process
S
Design
• Process
D i
Procedures
• Project Mgmt
Commercial
• Financial Analysis
Status
• Project & Site
History
• Source &
B ild Hi tSpecs
• Process
Models
• Process Calcs
• Flow Diags
• Equip Calcs
Design
• P&ID
• Equip Layout,
Design,
BOMs
• System
• Install/Test
• Descriptions
of Operation
• Operating
• Insp & Maint
C tifi ti
• CAPEX
• Depreciation
• OPEX
• Purchasing
Records
W t &
• Procurement
• Operational
Status
• MRO
Inventory
• Training
Build History
• Operating
History
• Maint History
• Inspection
Records• Equip Calcs
• Equip Specs
• Func Designs
• System
Detail Design
• MRO BOMs
• Certification
Reqs
• Lockout &
Safety Reqs
• Warranty &
Repair Records
• O&M Service
Agreements
• Training Records
• Incident
Reports
• People
Certifications
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Reference Data Activity Records

18. A Structured Set of ALM Models
Framework Enables Cross-Industry Benchmarking
A Structured Set of ALM Models
Framework Enables Cross-Industry Benchmarking
Manufacturing
Energy
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19. Key TakeawaysKey Takeaways
 ARC has a long history of research around ALM
 We have developed various models to help clients
d t d i d l t t i d l t l tiunderstand issues, develop strategies and select solutions
• TEAM, ITEAM, CALM, DOM
 Our new ALM Model extends that research into more areas
and more industries.
 The structured nature of our new model:
• will enable ARC to provide you with more, valuable ALMwill enable ARC to provide you with more, valuable ALM
research,
• Enable you to develop ALM/ALIM strategies with more
appropriate support for people processes technology andappropriate support for people, processes, technology and
information needs analysis, and
• enable you to benchmark your ALM performance with peers
and other industries and identify the Best Practices for your
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and other industries and identify the Best Practices for your
program

20. Thank You.Thank You.
For more information, contact the author at
srsnitkin@arcweb.com or visit our web pages at
www arcweb comwww.arcweb.com