Asset management in offshore environments is a complicated business. The potential risks involved in equipment failure are significant – apart from the costs and inefficiency involved in potential downtime, there are obvious environmental, employee safety and legal consequences to consider. Saving Money with Improved Asset Management Offshore Europe 2017 Cinema Seminar Advances in technology mean it’s now easier than ever before to manage critical assets to increase compliance, safety and uptime. Scheduled maintenance, automated alerts, ordering stock ahead of port and the ability to better understand maintenance information are just a few integral components to the emerging maintenance toolkit. And by working smarter, offshore providers can save significant sums of money, often in unexpected ways. This technical seminar for oil and gas professionals was run from Parker's stand at Offshore Europe 2017. The presentation covers visible and unexpected costs of unscheduled maintenance, technology shifts and examples where companies have saved millions of pounds by improving their approach to asset management. Learn more: http://solutions.parker.com/OE17_Contact

1. Robert Airey, Parker Hannifin
Tobias Hammer, Parker Hannifin
Saving Money with Improved Asset Management
Offshore Europe 2017 Cinema Seminar

2. Speaker Biography
• Robert’s career spans general management, sales
development and marketing at international level. A
technology and market development for Parker’s UK
sales company, Robert has strong understanding of
the UK and global markets
• Tobias is highly experienced
in new product development,
operations management and
business development1

3. Frequent Asset Management Challenges
• Global – Norway to Namibia, Mexico to Mozambique
• Managing 10 to 100,000 assets
• Crane, valve, filter to a hose
• Recommissioning
2
Global –
Norway to
Namibia,
Mexico to
Mozambique
Managing
10 to 100,000+
assets
Crane, valve,
filter to a hose Recommissioning

4. Frequent Asset Management Challenges
• Effective maintenance schedules
• Lead time of OE spares and logistics
• Outsourcing of services & stock holding (on site product support)
• Specification and traceability
3
Outsourcing of
services & stock
holding (on site
product support)
Effective
maintenance
schedules
Lead time of
OE spares &
logistics
Specification and
traceability

5. Frequent Asset Management Challenges
• Downturn – less staff and resource
• Loss of knowledge and history
• Health and safety concerns
• Maintenance – man hour service costs
4
Downturn – less
staff and resource
Loss of
knowledge
and history
Health and
safety concerns
Maintenance –
man hour
service costs

6. Frequent Asset Management Challenges
• Costs – downtime
• Software of ‘management’ tools
compatibility
5

7. Frequent Asset Management Challenges
• Add it all up and asset management gets complicated
6
Asset
management
gets
complicated 6
Global –
Norway to
Namibia,
Mexico to
Mozambique
Managing
10 – 100’s
thousand
assets
Crane,
valve,
filter to a
hose
Recommissioning
Software of
‘management’
tools
compatibility
Costs -
downtime
Outsourcing
of services &
stock holding
(on site
product
support)
Effective
maintenance
schedules
Lead time
of OE
spares &
logistics
Specification
and
traceability
Downturn
– less staff
and
resource
Loss
knowledge
and history
Health
safety
concerns
Maintenance –
man hour
service costs

8. • Various options of asset management
7
Attempts to Deal With the Situation

9. Use Simple Hose as Example
• Inspect
• Decipher
• Remove
• Measure
• Cut
• Set up tooling
• Assemble
• Clean / flush
• Test
• Document
• Other – training / staff
• Other – tooling
Seems simple?
Cost per hour $60 and capital investment $250K minimum
8

10. Cost of Unscheduled Maintenance
• Impact of one hose failure
9

11. Even Scheduled Costs
• 3-4 containers
• Supervisors – extra staff
• Circa 3 months work – man hours
• Accommodation
10

12. $Millions + Prevent Injury, Loss of Life
• Attorney websites promote legal wins…
• Burns, blunt brain trauma, crush injuries etc.
• Compensation due to negotiations on one
settlement over $11 million (incl fees) before
trial
11
Feeds an Industry
Environmental,
human & legal consequences…
• Attorney websites
promote legal wins…
• Burns, blunt brain
trauma, crush
injuries etc.
• Compensation due
to negotiations on
one settlement over
$11 million (incl fees)
before trial
They WILL audit your
maintenance records

13. Asset Management – Typical ‘Wish List’
• Digital solution
• Quick and easy to use
• Accurate – less mistakes
• Global and easily accessible?
• Meet needs – specifier, engineer,
maintenance, legal, buyer, owner
• Drives improvements
12

14. Example of technology shift
Fleet drilling vessels – operate in several
countries
• Manual filing & storage held on the vessel
• Not always matched to asset
• Extensive time in port
• Poor tracking of life / failure
Additional risk
• Misplacement of documents
• Fines – documents vs inspections
13

15. Secure cloud-based documentation
Single source for record management
Accurate & available when needed
Reclassification every 5 years
• less time (man hours) in dock
Accommodation issues now relieved
Less risk to fines – quickly updated
14
Shift…

16. 5 vessels = $10m on hoses alone
Example using scheduled costs
• Just hose replacement
circa $2 million (based
on 5,000 assemblies)
• 5 years later –
recommission?
Time?
• 3-4 containers
• Supervisors – extra staff
• Circa 3 months work –
man hours
• Accommodation
15
Example Using Scheduled Costs

17. $700K Saving
• Initial work/cost involved
 3 Containers
 4 Supervisors
 14 Weeks
• Hoses
 Measure
 Fabricate
 Pressure test
 Clean
 Document
 Tag – Parker PTS
$700K Saving on 5,000 Assemblies
16

18. Recommissioning Result
• 1st hose replacement circa $2
million
• 5 years later, 2nd time approx. $1.2
million
How / why?
• Produce hoses prior to the project
start date
• Reduced on-site labour - planned
• Possible to swap out hoses - vessel in
transit
5 vessels = $3.5m ($140 per hose!)
17

19. • Customer only needs to survey
once
• Maintain records for the full 5 years
THEN
• Accurate records to start from –
no guesswork
• know material needed, less
scrap, less rework, MUCH
less labour
• Also means knowing the root
causes = improvements
18
More Info on Drill Ship

20. Technology / Features Required
• Multiple options on market
• Software and tags of various forms
• Parker is one of them
• Operate multiple countries / markets
19

21. PTS – Key Features
• Technology
• Specification
• Supply chain
• Scale
• Safety
• Quality
20

22. Tags and Traceability
• Unique ID provides accurate traceability to specific location
or asset
• Assembly date provides time-based inspection or
replacement triggers
• Customer part numbers and bar codes enable link to back
office systems
• Custom label data displays instructions or contact
information
21

23. Point-and-Click Workflow
• (Bill of materials)
• Record creation (application use)
22

24. 23
Sample Screen

25. Record creation
(application use)
Record creation
(bill of materials)
24
Point-and-Click Workflow

26. Inspection data Replacement
alerts
emailed
automatically
25
Tracking Asset Condition

27. 26
Asset Management

28. 27
Notifications

29. Documentation and Certification
• Customised data books
• Certification records
28
Customised
data books
Certification
records

30. Master Tags
• 1 Master Tag can equal Multiple Tagged Assets
• Fast and easy way to “reassemble” multiple records
in the field
• Copy on chassis, packing materials or paperwork
29
Parker® Tracking System
• 1 Master Tag can equal
Multiple Tagged Assets
• Fast and easy way to
“reassemble” multiple
records in the field
• Copy on chassis, packing
materials or paperwork

31. Leads to the Savings - $ and
Safety Improvements
• Produce hoses prior to the project start date
• Reduced on-site labour - planned
• Possible to swap out hoses - vessel in transit
30

32. 31
Not Parker-Specific:
All Brands or Technologies

33. Questions and Discussion
32
Contacts for further information
Mick Perry or Anand Ramachandran
Parker UK sales company
T: +44 (0)1926 317878
www.parker.com/pts