ARC WHITE PAPER By ARC Advisory Group APRIL 2013 Integrated Drive Systems What Is an Integrated Drive System? .......................................... 3 The Siemens Integrated Drive Systems ....................................... 6 Siemens Legacy as an Electrical Equipment Supplier ...................... 9 Business Issues Faced in Absence of an Integrated Drive System Offering ..................................................................... 12 Mining Industry Benefits of Integrated Drive Systems .................. 15 Oil & Gas Industry Benefits of Integrated Drive Systems .............. 17 Cement Industry Benefits of Integrated Drive Systems ................ 18 Last Word ............................................................................. 21 VISION, EXPERIENCE, ANSWERS FOR INDUSTRY ARC White Paper • April 2013 VSD Motor: 6000HP, 1800RPM, 6kV, TEWAC Gear: Rated speed 1785/6761 RPM Coupling Base Plate Integrated Drive Systems Single purchase order for entire drive system; streamlined processes Coordinated delivery times across multiple products Custom service contracts and extended warranty options Technologically innovative products and processes from a single source Matched engineered components Time to market, development and implementation efficiency Highly flexible, complete process and customer-oriented solutions Optimized design efficiencies Engineered systems built from a comprehensive range of components Systems responsibility Streamlined Business Process Benefits of Integrated Drive Systems for EPCs, OEMs and End Users 2 • Copyright © ARC Advisory Group • ARCweb.com ARC White Paper • April 2013 What Is an Integrated Drive System? Drive train is a term widely used referring to a combination of electric drive, motor, gearbox, and coupling which transfers electrical energy to a rotating part of machinery. This paper will focus on drive trains in the mining, cement, and oil and gas markets. Copyright © ARC Advisory Group • ARCweb.com • 3 ARC White Paper • April 2013 Drive Trains Are Engineered Solutions Often Posing Huge Challenges Reducing Risk and Cost of a Drive Train Implementation 4 • Copyright © ARC Advisory Group • ARCweb.com ARC White Paper • April 2013 Siemens Integrated Drive System Components Maximize ability to customize products/solutions to meet my specs (operational effectiveness) Optimized components designed to work together (operational effectiveness) Maximize speed of implementation (simplification of the process) Minimize installation downtime (efficiency) Copyright © ARC Advisory Group • ARCweb.com • 5 ARC White Paper • April 2013 The Siemens Integrated Drive Systems Integrated Drive System Team Approach Expert Consultation Pre-tested Installation Maintenance Customization Purchase Order Process Streamlined Optimal Design Configuration Warranty administration Single point of contact Logistics management Operation and Engineering Center (OEC) 6 • Copyright © ARC Advisory Group • ARCweb.com ARC White Paper • April 2013 Operations and Engineering Center Support of Integrated Drive System Project Project Management Adjustable Frequency Drives (low voltage, medium voltage, DC) SIMOTIC Motors (AC Induction, DC) Gearbox Units Mechanical Couplings Siemens Integrated Drive Systems Offering Copyright © ARC Advisory Group • ARCweb.com • 7 ARC White Paper • April 2013 Siemens Provides Critical Technical Overview Necessary for IDS Evaluating direct online vs. VSD starting for energy efficiency, cost, and performance Optimizing economic, efficiency, and reliability for specific application Provide comprehensive diagnostic tools for entire drive train Optimization with ‘what if’ scenario Modeling analysis Thermal analysis of a system Torsional analysis Resonance points Load dynamic analysis Appropriate method of cooling gear units to prevent overheating Flexibility requirement in coupling to avoid vibration 8 • Copyright © ARC Advisory Group • ARCweb.com Value Derived from a Global Base of Proven Products ARC White Paper • April 2013 Siemens Legacy as an Electrical Equipment Supplier Electric Drives Technology Product Family Max Power Range Low Voltage AC Drives SINAMICS S120, S150, G130, G150, G180 4.5 MW Medium Voltage AC Drives SINAMICS GM150, SM150, GL150, SL150 GH180 85 MW DC Drives SINAMICS DCM 2.5MW Siemens’ Variable Speed Drive Portfolio Copyright © ARC Advisory Group • ARCweb.com • 9 ARC White Paper • April 2013 Electric Motors Technology Product Family Max Power Range General Purpose AC SIMOTICS GP 200 HP Severe Duty AC SIMOTICS SD 1,650 HP Trans-standard for harsh conditions SIMOTICS TN 1,650 HP Definite Purpose AC SIMOTICS DP 1,650 HP Explosion Protected AC SIMOTICS XP 1,350 HP DC Motors SIMOTICS DC 2,150 HP Large Custom Motors & Generators Multiple Product Families 100,000 HP High HP Engineered Motors 2,950-136,000 HP Geared Motors SIMOGEAR 260 HP The Siemens Global Motor Portfolio Note: Engineered solutions available in higher power rating 10 • Copyright © ARC Advisory Group • ARCweb.com ARC White Paper • April 2013 Flender Acquisition Complements the Core Business Helical / Bevel Helical Gear Units Vertical Gear Units Planetary Gear Units Geared Motors The Siemens Flender Brand Mechanical Drive Types Mechanical Drives and Coupling Flexible Highly Flexible Hydrodynamic Torsionally Rigid Types of Coupling Copyright © ARC Advisory Group • ARCweb.com • 11 ARC White Paper • April 2013 Business Issues Faced in Absence of an Integrated Drive System Offering High Power Drive Trains Are Custom Engineered 12 • Copyright © ARC Advisory Group • ARCweb.com ARC White Paper • April 2013 Unifying Order Management across the Drive Train Opportunities to Optimize the Design Copyright © ARC Advisory Group • ARCweb.com • 13 ARC White Paper • April 2013 Integration Challenges Faced Service and Repair 14 • Copyright © ARC Advisory Group • ARCweb.com ARC White Paper • April 2013 Mining Industry Benefits of Integrated Drive Systems Revenue and Capital Expenditure Index of the Mining and Metals Industry; Source: ARC CapEX Index Copyright © ARC Advisory Group • ARCweb.com • 15 ARC White Paper • April 2013 Conveyors Gearless Conveyors Horizontal mills Vertical mills Crushers Grinding rollers Water/slurry pumps Draglines Mining trucks Mining Shovels Mining Industry Applications Combustible Corrosive High temperature High degree of condensation High elevation IDS Designed for Mining Industry Environment 16 • Copyright © ARC Advisory Group • ARCweb.com ARC White Paper • April 2013 Oil & Gas Industry Benefits of Integrated Drive Systems Offshore/Onshore Drilling and Production Gas/Liquid Pipeline LNG Gas Storage Refining Petrochemicals Oil & Gas Industry Applications Examples Copyright © ARC Advisory Group • ARCweb.com • 17 ARC White Paper • April 2013 Cement Industry Benefits of Integrated Drive Systems Industry Energy Cost Variable Cost 1995 2010 Automotive 2% 5% Cement & Glass 9% 21% Chemical & Petrochemicals 5% 11% Food & Beverage 2% 5% Mining & Metals 22% 50% Oil & Gas 6% 14% Pharmaceutical 4% 9% Pulp & Paper 4% 9% 18 • Copyright © ARC Advisory Group • ARCweb.com ARC White Paper • April 2013 Crushers Roller presses Vertical mills Tube mills Rotary kilns Separators Bucket elevators Conveyor belt Fans Cement Industry Applications Copyright © ARC Advisory Group • ARCweb.com • 19 ARC White Paper • April 2013 20 • Copyright © ARC Advisory Group • ARCweb.com ARC White Paper • April 2013 Last Word Copyright © ARC Advisory Group • ARCweb.com • 21 ARC White Paper • April 2013 22 • Copyright © ARC Advisory Group • ARCweb.com ARC White Paper • April 2013 Analysts: Himanshu Shah, Salvatore Spada Acronym Reference: For a complete list of industry acronyms, please refer to www.arcweb.com/research/pages/industry-terms-and-abbreviations.aspx AC Alternating Current ASD Adjustable Speed Drive MV Medium Voltage DC Direct Current MW Mega Watt MMDC Main Motor and Drive Contractor EMPP Electrical Motor and Two Planetary Gears OEC Operations & Engineering Center OEM Original Equipment EPC Engineering, Procurement and Construction PLM HP Horse Power ROI Return on Investment RPM Revolutions per Minute HVAC Heating, Ventilation, Air IDS Manufacturer Product Lifecycle Management Conditioning SITRAIN Training for Industry Integrated Drive System TCO Total Cost of Ownership LC-I Load Commutated Inverter VFD Variable Frequency Drive LNG VSD Variable Speed Drive Liquid Natural Gas Founded in 1986, ARC Advisory Group is the leading research and advisory firm for industry. Our coverage of technology from business systems to product and asset lifecycle management, supply chain management, operations management, and automation systems makes us the go-to firm for business and IT executives around the world. For the complex business issues facing organizations today, our analysts have the industry knowledge and first-hand experience to help our clients find the best answers. All information in this report is proprietary to and copyrighted by ARC. No part of it may be reproduced without prior permission from ARC. This research has been sponsored in part by Siemens. However, the opinions expressed by ARC in this paper are based on ARC's independent analysis. You can take advantage of ARC's extensive ongoing research plus experience of our staff members through our Advisory Services. ARC’s Advisory Services are specifically designed for executives responsible for developing strategies and directions for their organizations. 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