Intelligent Asset Management Embedding Analytics to Improve Asset Maintenance and Renewal Decisions London, 30 April 2014, Russell Hodge Success or otherwise of the Asset Intensive Enterprise is driven by the value they deliver from those assets Network Rail Analytics Intelligent Asset Management How we have helped Network Rail make better decisions on managing the UK railway The role of Big Data, Analytics and the analytics practitioner Wider role of Analytics in delivering value from assets through the asset life Critical role of analytics in delivering tangible value from assets. Intelligent Asset Management | April 2014 Copyright © Capgemini 2014. All Rights Reserved ‹#› My background Principal, Head of Intelligent Asset Management, Capgemini Consulting UK Experience in AM What we hear from clients Role of Analytics Leading engagements in Rail and Utilities Engaging with CXOs and heads of Asset Management Personal focus on Business Analytics 10 years experience in delivering consulting led transformation Our clients recognise the need for Asset Management transformation Core capability in Asset Management Leader in Business Analytics End to end solutions require a focus on the: Delivers insight to make better decisions how assets are managed Post granulate research degree in ‘Reliability and Maintainability in Aerospace’ Undergraduate in Engineering and Business Analytics Corporate member of IAM and active engagement People; capability build IAM Competency alignment: Process; changed ways of working Risk Management & Performance Management Technology; enabling data & apps Policy Development, Strategy Development, AM Planning Asset Knowledge Management Intelligent Asset Management | April 2014 Copyright © Capgemini 2014. All Rights Reserved ‹#› Like all asset intensive organisations Network Rail’s ability to manage their assets directly impacts performance • Network Rail have huge investments tied up in their assets • Own and run UK wide rail infrastructure • 22, 000 miles of track • Annual asset spend of £4bn • Core business processes are focused on maximising the availability and uptime while minimising whole life cost • Recognised they were not making well informed decisions through the asset lifecycle • Require a step change in their asset management function • Requires the right people capabilities, process and enabling technology Embedding Analytics in the heart of your organisation drives tangible value; For Network Rail we have demonstrated £125m benefits. Intelligent Asset Management | April 2014 Copyright © Capgemini 2014. All Rights Reserved ‹#› Data & Analytics at the core of programme to transform how they manage the infrastructure through the asset lifecycle Intelligent Asset Management | April 2014 Copyright © Capgemini 2014. All Rights Reserved ‹#› Linear Asset Decision Support (LADS) provides the capability to deliver true predictive insight for Asset Management Data collected from monitoring fleet, manual inspections and other sources LADS provides visual layered view of multiple information sources providing root cause analysis For example, better understanding of underlying cause of problems relating to track geometry LADS enables NR to deliver more effective maintenance, fewer renewals of the right specification for at least the same level of performance LADS enables consistent, evidence-based decision making and application of policy over time through use of algorithms More reliable decisions around track maintenance processes, refurbishment and renewals processes Intelligent Asset Management | April 2014 Copyright © Capgemini 2014. All Rights Reserved ‹#› Consolidates existing data and delivers additional insight to those that are making key decisions when and where they need it “Data – Insight – Action – Outcome” Renewals Planned maintenance Unplanned maintenance “Right Work, Right Place, Right Time” Less complete renewals by better targeted single component replacement Proactive maintenance management through better understanding asset condition More effect treatments through better root cause analysis Better, more informed decisions at heart of the business. Intelligent Asset Management | April 2014 Copyright © Capgemini 2014. All Rights Reserved ‹#› Getting the foundations in place; an integrated single source of accurate asset data, is key to delivering improved decision making Consolidating Diverse Data into One Place Get the data foundation in place Deliver insight from the data Turn insight into actions and outcomes Intelligent Asset Management | April 2014 Copyright © Capgemini 2014. All Rights Reserved ‹#› With the data in place we deliver insight that supports key investment decisions through analytics Using Analytics to Deliver the insight Get the data foundation in place Deliver insight from the data Turn insight into actions and outcomes Intelligent Asset Management | April 2014 Copyright © Capgemini 2014. All Rights Reserved ‹#› It is then important to clearly articulate the business outcome and benefits that are driven from making better decisions Delivering Measurable Benefit from Better Asset Decision Making Get the data foundation in place Deliver insight from the data Turn insight into actions and outcomes All data in one place Data that users will not have seen Geometry trace data aligned Able to overlay data/see trends iPad as well as PC usage Able to predict asset degradation Able to compare sites/assets Able to pinpoint specific locations Delivers over £125m in direct benefit Intelligent Asset Management | April 2014 Copyright © Capgemini 2014. All Rights Reserved ‹#› Success or otherwise of the Asset Intensive Enterprise is driven by the value they deliver from those assets Network Rail Analytics Intelligent Asset Management How we have helped Network Rail make better decisions on managing the UK railway The role of Big Data, Analytics, Mobility and the analytics practitioner Wider role of Analytics in delivering more from your assets through the asset life Critical role of analytics in delivering tangible value from assets. Intelligent Asset Management | April 2014 Copyright © Capgemini 2014. All Rights Reserved ‹#› Achieving the vision requires a step change in how an enterprise manages its assets Developing the People Capability Shortage of analytics talent Immature, disparate in-house capability Define the analytics operating model Provide expertise in sophisticated techniques to develop ‘engines’ Define capability requirements Build local capability (e.g. super users) to develop the analytics ‘engines’ in house Deliver Analytics as a Service Technology Need for faster decision making and greater flexibility Need for analytical technologies – descriptive, predictive and prescriptive People Process Technology Data Embedding in Business Process Poor “alignment” between analytics and the business Develop the processes that allow organisations to act on analytics Empower the organisation to act real time on insight Integrate analytics insight into Asset Management functions Embed processes to deliver sustainable value Develop the governance around the analytics operating model Data and Governance Integration of new data sources No single version of the truth Data quality and data ownership Transforming the People and Process components are key to delivering business change and business outcomes Intelligent Asset Management | April 2014 Copyright © Capgemini 2014. All Rights Reserved ‹#› With the right Asset data in place, Analytics provides the capability to make better, more informed decisions Diagnostic insight Predictive analytics Prescriptive analytics Predict asset degradation and exceedance Predict failure likelihood Predict impact of intervention type Decision Support Action Data Human Interaction Decision Descriptive insight Outcome Business Benefit Data Modelling is used to collect, store and cut the asset data in an efficient way Visualisation to integrate, consolidate and present asset information in a meaningful way to the right people at the right time Decision Automation Optimising whole life cost for asset portfolio Simulation of asset performance based on known environmental conditions Optimise long term workbank Intelligent Asset Management | April 2014 Copyright © Capgemini 2014. All Rights Reserved ‹#› 13 There are many key data sources included to support improved decision making Asset Objects (Geographical Data) • • • • • • • Age and type of components (Rail/Ballast/Sleeper) Geographical conditions and boundaries Infrastructure types (e.g. Embankments, cuttings etc.) Weak embankment information and drainage Cumulative tonnage over the track Start and finish locations of S&Cs and structures (e.g. Bridges, tunnels etc.) Tight Clearances Condition data • • • • Track Geometry Fine content in Ballast (GPR) Rail breaks and defects Track Photos and Video Intervention History and Plans • Intervention Records and Plans • Planned renewal works • Aspirational renewal works Intelligent Asset Management | April 2014 Copyright © Capgemini 2014. All Rights Reserved ‹#› LADS Operating Model defines people, processes, technology and data to deliver as a cohesive managed service Products Delivered By Business Processes LADS Service Services & Capabilities Operating Model LADS Strategy Optram Solution Functional Requirements Visualisation of Data Data Loading & Alignment Reference Data Condition Data Transactional Data Customer BRIG (x 10) Role Based Training Knowledge Transfer LADS Data Model Design Authority Corporate Communications Solution Build, Test & Deploy Business Algorithms Future Enhancements Modeled (Derived) Data Data Specification Data Stewardship Benefits Governance Board LADS Customer Board Super Users LADS Service Owner LADS System Owner Expert Users (Scripting & Analysis) Asset Information Operational Review Group Business Services Bentley (Software Vendor) Define LADS-as-a-service “up front” Define guiding principles to operate as managed service (i.e. customerfocused, owned, innovative, sustainable, valuable, affordable) Determine drivers, parameters, scope and overall “shape” of service Agree ownership, governance rules and policy constraints (e.g. safety, information security) Establish governance to last over CP5 Implement new governance components in sustainable structure (customer board, super user group, expert user scripting capability) Embed into existing governance framework for AI services Confirm reporting relationships into continuing programme Build organisational capabilities and processes Create outcome-focussed target operating model to define “end state” for service implementation Develop process decomposition for business & support processes, with swimlaned process flows designed to Level 3 Design business & support roles based on process swimlanes, develop RACI matrix and define skills & knowledge requirements for each role Define expectations for users, customers and (internal and external) suppliers Identify and assess change impacts, and plan actions required to address them Analyse skill & capability requirements by role, to determine organisational training needs Utilise process model to design service support model, solution test scenarios and end user training course content Define value proposition, service architecture, KPI framework and SLAs for managed service element Develop framework for commercial operation of managed service Combined with training, business change, operational process definition. Intelligent Asset Management | April 2014 Copyright © Capgemini 2014. All Rights Reserved ‹#› 15 Success or otherwise of the Asset Intensive Enterprise is driven by the value they deliver from those assets Network Rail Analytics Intelligent Asset Management How we have helped Network Rail make better decisions on managing the UK railway The role of Big Data, Analytics, Mobility and the analytics practitioner Wider role of Analytics in delivering more from your assets through the asset life Critical role of analytics in delivering tangible value from assets. Intelligent Asset Management | April 2014 Copyright © Capgemini 2014. All Rights Reserved ‹#› We recognise the challenges and expectations that these organisations must meet in driving value from their assets Market Expectations Increasing Stakeholder Pressure Increasing Customer Expectations • Delivery efficiency & effectiveness • Cost reduction • Safety criticality • Increased service level expectations • Willingness to share comment • Personalised service Aging Infrastructure • Years of underinvestment • Historic asset spec • Often safety critical or huge cost impact of failure Challenges & Expectations Diversity of Asset Portfolio • Age range of assets • Varying criticality; impact of failure Big Data Challenge • Asset knowledge and specification • Connected smart assets • Mix of continuous and fixed • New assets streaming data from multiple diagnostics • Standalone systems Business Challenges • Unstructured data Workforce Capability • Lack of trust in asset and don't know how to use the data that does exist • Base decisions on judgement alone, over maintain over renew • Aging workforce, reduction in expertise Quality of Asset Data • Historic assets, minimal data • Legacy systems and data management • Limited diagnostics Intelligent Asset Management | April 2014 Copyright © Capgemini 2014. All Rights Reserved ‹#› 17 There are a number of factors that will enable better decisions through planning and executing the asset lifecycle Analytical Capability Strategy & Vision Business Outcomes Business Operations Asset Org Design & Workforce Capability Acquire / Create • Capital Investment Decision-Making • Enhanced policy & standards • Design for reliability and maintainability Asset Information Strategy Workforce Enablement & Tooling Resourcing Strategy and Optimisation Asset Investment Planning & ManagementAsset Performance Strategic Planning Framework Asset Knowledge and Enablers Operating Model Process Optimisation Demand Analysis Asset Management Decision Making AM Strategy AM Policy Life Cycle Cost and Value Optimisation Utilise Criticality, Risk Assessment & Management Maintain Operations & Maintenance Decision-Making • Shutdowns & Outage Strategy & Optimisation • Reliability Engineering & Root Cause Analysis • Automated Inspection • Reliability-Centred Maintenance and FMEA • Risk-Based Maintenance • Maintenance effectiveness Management and BI Renew / Dispose • Aging Assets Strategy • Condition led renewal • Refurbish rather than renew Data & Asset Information Asset Knowledge Standards Asset Information Systems Asset Data & Knowledge (including Big Data) Intelligent Asset Management | April 2014 Copyright © Capgemini 2014. All Rights Reserved ‹#› 18 Delivering value from Asset data through Analytics is at the core of the ‘Intelligent Asset Management’ framework Analytical Capability Strategy and Vision Business Business Outcomes Outcomes Business Business Operations Operations Asset Information Vision & Value Discovery Operating Model Asset Management Transformation Service Asset Management Target Operating Model Workforce Planning & Optimisation ISO 55000 Strategic Alignment Asset Investment Planning Planning & Management Asset Investment Risk Assessment & Management Asset Management Decision Making Asset Performance Management Acquire / Create Utilise Maintain Asset Decision Support Big Data & Real-time Analytics Regulatory Support Renew / Dispose Predictive Asset Maintenance Energy Optimisation Asset Asset Knowledge Knowledge and Enablers and Enablers Digital industrial Asset Lifecycle Management (iALM) Asset Data Quality Asset Information Framework Enabling Analytics & BI platforms Intelligent Asset Management | April 2014 Copyright © Capgemini 2014. All Rights Reserved ‹#› Better decisions through the asset lifecycle enable Network Rail to achieve multiple business outcomes • Improved investment planning • Sustainably reduce whole life cost of renewing and maintaining assets • Meet the demands of customers, regulators and shareholders Financial benefit Reputation IAM Value Drivers Safety and risk • Safety risk modelling to reliably identify critical assets • Analysis of operational safetyrelated risk precursors Performance • More effective use of existing infrastructure • Improve the availability of assets Regulatory compliance • Meet regulatory obligations to avoid penalties • Evidence to support regulator negotiations Intelligent Asset Management | April 2014 Copyright © Capgemini 2014. All Rights Reserved ‹#› 20 Questions? Insert contact picture Russell Hodge Principal russell.hodge@capgemini.com Capgemini London 40 Holborn Viaduct, London, EC1N 2PB +44789 115 0186 About Capgemini With more than 130,000 people in 44 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2012 global revenues of EUR 10.3 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model. Learn more about us at www.capgemini.com. www.capgemini.com The information contained in this presentation is proprietary. © 2014 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini. Network Rail: Asset Management System Transformation What was the client situation? Network Rail, an organisation of 35,000 employees, owns and operates Britain’s rail infrastructure. With an estimated 1.3 billion journeys made on Britain’s railways each year it is essential that Network Rail maintain the level of service expected by the travelling public and the Office of Rail Regulation (ORR), its industry regulator. With an anticipated future increase in rail usage, both higher passenger numbers and more trains on the track, Network Rail must find new ways to optimise the management of its core assets to meet this increased demand. What was the solution? As part of Network Rail’s Asset Information programme Offering Rail Better Information Services (ORBIS), Capgemini have worked with Network Rail and Bentley Systems to deliver a Linear Asset Decision Support system for Track assets. This solution utilises industry leading capabilities to consolidate Network Rail’s complex engineering data and provide insight from that data to the engineer, enabling them to make better decisions on managing the track. Importantly, the Linear Asset Decision Support system ensures this information is available when and where the engineers need it and in a visual format that is easy to interpret and act upon. The solution combines data from 14 asset information systems into a single digital solution, providing a consolidated and aligned view of all rail asset data. Engineers can view, manipulate and analyse this data. How did we collaborate? To deliver a solution that meets the needs of the business in such a complex area it was critical that the design and deployment of the solution was business led. Capgemini and Network Rail used a "Model Office" approach to harness the capabilities and expertise of the engineering Subject Matter Experts from the business. This approach was centred on engaging a cross section of business users to provide the depth of understanding required and design how best to embed these new technologies and ways of working in the business. This collaborative approach delivered business defined requirements and a business designed solution. What was the impact? With the deployment of a Linear Asset Decision Support solution Network Rail engineers now have access to enhanced insight to ensure they are doing the right work, in the right place at the right time. Through utilising new, digital technologies in the Asset Management function Network Rail is now able to make better decisions on how they manage their track assets, realising hundreds of improved decisions every day. Such improved decisions are resulting in more preventative track maintenance and renewal resulting in fewer asset faults and failures. In addition, where issues do occur better decisions are leading to more first time fixes and fewer repeat faults across the asset estate. All of this is contributing to a reduced number of separate interventions and less intrusive work on the track asset. Importantly this leads to increased asset availability and therefore and improved service for Network Rail customers, the train operators and ultimately the travelling public seeing less disruptions to train journeys and a subsequent improved customer experience "Network Rail is transforming how it manages its infrastructure assets. We are moving from paper-based working, time-based asset renewals and a 'find and fix' approach to asset management to a proactive digitally-enabled 'predict and prevent'. This requires insight into how different assets work and perform together as an asset system, along with historical condition and workbank data that enables reliable analytical predictions to be made. The Linear Asset Decision Support system developed and implemented by Network Rail's £330m ORBIS programme does just that. Our track engineers across the country can now access critical asset-related data where and when they need it most, enabling them to better target the most appropriate type of work to the right place. Getting our asset interventions right first time saves cost and helps us run an even safer, better performing railway.“ - Patrick Bossert, Director, Asset Information at Network Rail Copyright © Capgemini 2014. All Rights Reserved 23 The level 1 ‘logical application architecture’ illustrates the main technical components that enable insight through the asset lifecycle Business Outcomes Business Operations Applications: Asset Management Decision Making BI / Presentation Tier Unstructured Data Workforce Scheduling Asset User Data Weather Real time Analytics Asset Performance Management ADS Asset Decision Support tools AIP Asset Investment Planning ERP Investment Management Project Management Integration Layer - Asset Data Mart MDMS Network Model SCADA Images & Video Big Data GIS Internet Asset Tech. Drawing Business Operations Maintenance Management Asset Knowledge and Enablers Mobile EAM Asset Register & Condition Work History & Plans Finance Workforce Management Intelligent Asset Management | April 2014 Copyright © Capgemini 2014. All Rights Reserved ‹#›