Flexible, Scalable Asset Management
Solutions to Help You Increase Uptime
Rev 5058-CO900C
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
Agenda
Asset Management
Reliability Strategy
Storeroom
ERP and CMMS
Networked Devices
Firmware
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
2
Session Objectives
Asset Management
 Keys to Its Success
 How to Position it Strategically in Your Organization
Make Connection with Opportunities You Have
 Perspective on Path Forward
 Electrical and Instrumentation Focus

Getting Started
Some Examples
Reliability Centered Maintenance
 Storeroom, ERP, Connected Devices, Firmware

Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
3
What are the Issues Facing
Manufacturers Today?
 Extreme pressure on budgets to run and maintain
operations - 88% of manufacturers run to failure, 42%
have no equipment end of life plans
 Need to reduce operational costs – maximize uptime
and minimize maintenance expense
 Increase machine availability
 Resource limitations - need to do more with less
(broad competency needs)
 Business drivers such as OEE, RONA, margins, etc.
 Challenged to engage and empower factory workforce
 Regulatory compliance
How will you achieve your operational goals?
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
4
Where to Start the Journey:
Step by Step
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
5
Enterprise Asset Management
The management of assets across departments,
locations, facilities and business units
 Improves utilization and performance
 Reduces capital costs
 Reduces asset-related operating costs
 Extends asset life
 Improves RONA
Improve your cost position by managing your assets
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
6
Asset Management at a Glance
PAS 55 being replaced by ISO 55000 in 2014
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
7
Asset Management:
Operational Effectiveness Evaluation
Operational Effectiveness
Leading
Optimizing
Practicing
Developing
Aware
• Reactive
• No coordinated
management
• No metrics
• Corrective
projects w/o
methodology
• Informal process
• Individual metrics
• Methodologies
recognize key
repeatable steps
• Ad hoc
management
• SOPs exist
• Limited
collaboration
across
stakeholder
organizations
• KPI metrics
• Unclear
accountability for
whole process
suite
• Dedicated
manager
• Lifecycle
opportunities
identified
• Formal global
SOPs
• Single point of
process
responsibility
• Departmental
mesh point inside
storeroom not only
at management
level
• Shared goals /
metrics aligned
Enterprise results
• Lifecycle
opportunities
realized
• Seamless
customer
experience
• Global SOPs
visible and
understood by all
involved or
impacted
• Continuous
improvement
based on
enterprise metrics
/ customer
experience
• Manufacturing
operation
reliability as part
of the solution
Improving asset effectiveness – becomes self funding
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
8
Rockwell Automation
Asset Management Process
 A step-by-step approach to implement a customized, scalable solution
Set Goals
Prioritize
Improvement
Take ROI
Driven Action
Get Results
Reduce your MRO parts spend by as much as 25 percent while
improving plant profitability and uptime
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
9
Agenda
Asset Management
Reliability Strategy
Storeroom
ERP and CMMS
Networked Devices
Firmware
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
10
Maintenance and Reliability – It is
about What to Know and Do?
Analyzing
Downtime
Predicting
Preventing
Mitigating
Reducing Equipment Downtime
And Operational Risk
Time
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
11
Maintenance, Reliability and Operations
is at the Center of Asset Management
 Reliability focus
 Throughput
 Availability
 Spare-parts stock
 Criticality is key to Return on Investment
 Lower Risk
 Cross Functional Objectives
 Increasing Profits
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
12
Criticality and Reliability Centered
Maintenance (RCM)
 Equipment Criticality
 Vital for a proper maintenance strategy
 Optimum maintenance strategy should be based on criticality
 60% of preventive maintenance tasks
are considered unnecessary (ARC)
 Strategies for maintenance
 Predictive/Direct health
 Preventive
 Reactive/Corrective
 Implement a criticality-based strategy



Mission Critical –10-15% of criticality rated equipment
Critical –Impact of failure is 60-80% of criticality-rated equipment
Non-Critical –Impact of failure is the lower 10-15% of equipment
Criticality-based maintenance strategies support asset management
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
13
Agenda
Asset Management
Reliability Strategy
Storeroom
ERP and CMMS
Networked Devices
Firmware
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
14
Asset Management Supports
Storeroom Strategy
Interrelated processes impact business objectives
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
15
Asset Management:
Storeroom Management is Critical
Storeroom
At least

Can we improve production while reducing inventory?

What is actually in our storeroom?

Can we shorten lead time?

Can we improve our systems and software around
maintenance and spares?

How can we manage our maintenance budget?

Can we collaborate better with our vendors?

Are the right parts available at the right time?

Do I have too much inventory?

Is my storeroom efficiently run?

Is it tough finding parts?

Are parts easily identifiable?
How is this valuable to me?
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
16
Asset Management:
Rockwell Automation Storeroom Improvement
A step-by-step approach to implement storeroom management
Assess current
environment
Assess
process
efficiencies and
lean initiatives
to drive
productivity
Implement
ROI-driven
processes that
will help
improve
productivity
and lower
costs
Dashboard
reporting tools
help optimize
storeroom
operations
through day-today inventory
management,
reconciliation/
integrity, etc.
Rockwell Automation Focus: Reducing Demand Side
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
17
Asset Management: Storeroom
 Benefits
 Reduce inventory levels
and MRO costs
 Improve MRO management
process
 Improve KPIs (inventory
accuracy, shipped on time,
cycle count accuracy, etc.,
 Improve maintenance
decisions
 Reduce storeroom costs
 Manage obsolescence
 Reduce stockouts
 Features
 Point or complete solutions
 Usage analysis identifies
areas for SKU reduction
 Increase capacity without
adding space
 Streamline reporting
structure and standardize
processes
 Move and reorganize
storeroom
 Efficient Labor Utilization
Improvement Focus is to Sustainably Lower Demand
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
18
Agenda
Asset Management
Reliability Strategy
Storeroom
ERP and CMMS
Networked Devices
Firmware
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
19
Asset Management:
ERP and CMMS Processes
• Business and compliance
• Supply chains
• IT and operations functionality Enterprise
Business
System
Suppliers
Convergence
Customer
Convergence of ERP and control systems helps ensure high productivity
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
20
Asset Management:
ERP/CMMS Data Improvement
 Ensure material masters are current
 Update leadtimes for indirect materials
 Maintain accurate equipment records
 Maintain accurate work centers
 Where are issues occurring?
 What are the critical pieces in the
process?
 Utilize functional objects
 Notifications
 Work orders
Use your ERP system to manage critical asset data
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
21
Asset Management:
Rockwell Automation is a Certified Meridium Partner
• Strategy Actions
• Work Orders
APM Analysis
• Searches
• Queries
• Datasets
• Reports
• Graphs
APM
SAP
EAM / CMMS
Oracle
Maximo
Indus
3 Main Data Sources
• Equipment
• Work History
• Functional Location
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
22
Asset Management: Meridium and
Maintenance System Integration
Strategy Development
Integrated
Data Sources
•Production
•Engineering
•Inspection
•Condition
•Financial
•Incidents
•Process Historians
Effectiveness
Analysis/Assessment
Work Planning
Work Scheduling
Efficiency
Work History
Work Execution
Computerized Maintenance
Management System (CMMS)
Data management facilitates parts and process management
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
23
Agenda
Asset Management
Reliability Strategy
Storeroom
ERP and CMMS
Networked Devices
Firmware
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
24
Asset Management:
Converging Plant Floor and Storeroom
 How will you manage your networks
and networked devices?
 Are my networked devices
running within known control
limits?
 What steps can I take to
proactively manage them?
 Can I do it remotely?

To what level are physical assets defined
 How am I tracking asset data?
 Will replacement parts meet required
specifications?
 How much downtime is caused by parts
issues?
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
25
Asset Management
for Networked Devices
 Diagnostic Reliability Services




System-wide visibility to health of devices
Diagnostics, trending, alarming, configuration
data, change management
Remote access
Live Process BOM – components and
subcomponents
 Hardware status and parameters
EtherNet, DeviceNet, and ControlNet
 SMART Drill Down to Firmware, COMMs …

 Real-time and historical data
 Enhances predictive maintenance capabilities
State of the Art Focus on Electrical and Instrumentation
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
26
Agenda
Asset Management
Reliability Strategy
Storeroom
ERP and CMMS
Networked Devices
Firmware
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
27
Asset Management: Firmware Services
Customer Feedback
 Unplanned downtime caused by firmware
incompatibilities
 Foundational basis for an automation migration plan
 Change management control of plant assets
 Identifying and managing risk
 Need for a proactive and sustainable solution
A solution for the failed component replacement scenario to
minimize unplanned downtime risk.
Automation systems are made up of a broad range of
components, networks and software which were developed
and modified over an extended period of time by various
vendors.
An effective, sustainable solution must include end user
business process.
28
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
Firmware Services
Load Data
Installed Base
Data Collection
IMPLEMENT
Change
Management
Data Formatting
& Evaluation
FW Management
SOP’s
… develop a sustainable
firmware management
solution.
Test Station
Firmware Library
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
29
Asset Management:
Firmware Management Services
 Firmware Solutions
 Maximize automation capabilities
 Improve productivity
 Reduce unplanned downtime due to
firmware version incompatibilities
 Examination and documentation of
Rockwell Automation products and
firmware levels
 Benefits
√ Reduced firmware compatibility issues
√ Easy access to required firmware
√ Faster firmware diagnostic time
√ Key Performance Indicators (KPIs)
 Features
√ Audit of your installed firmware levels
√ Standard Operating Procedures
√ Customized test stands
√ Firmware files set up in your
ERP system
√ Online Web-based library tracks your
equipment firmware
Now that you’ve identified critical assets,
how are you tracking them in your system?
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
30
Asset Management:
Return on Investment
Proven tools that demonstrate ROI
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
31
Benefits of Asset Management
 Margin expansion
 Production volume efficiency
 Overall Equipment Effectiveness (OEE)
 Driving uptime and improvement
 Optimizing utilization of people and parts
 Trend data to monitor machines and shifts
 Return on Net Assets (RONA)
 Reduced inventory
 Decreased maintenance costs
 Driving financial performance
 Empowering and Engaging Employees
 Actionable data helps employees solve issues
 Real-time access to critical data
Decreasing risk, minimizing downtime
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
32
Asset Management:
Operational Effectiveness Evaluation
Operational Effectiveness
Leading
Optimizing
Practicing
Developing
Aware
• Reactive
• No coordinated
management
• No metrics
• Corrective
projects w/o
methodology
• Informal process
• Individual metrics
• Methodologies
recognize key
repeatable steps
• Ad hoc
management
• SOPs exist
• Limited
collaboration
across
stakeholder
organizations
• KPI metrics
• Unclear
accountability for
whole process
suite
• Dedicated
manager
• Lifecycle
opportunities
identified
• Formal global
SOPs
• Single point of
process
responsibility
• Departmental
mesh point inside
storeroom not only
at management
level
• Shared goals /
metrics aligned
Enterprise results
• Lifecycle
opportunities
realized
• Seamless
customer
experience
• Global SOPs
visible and
understood by all
involved or
impacted
• Continuous
improvement
based on
enterprise metrics
/ customer
experience
• Manufacturing
operation
reliability as part
of the solution
With Each Step… Get Buy-in … Keep Moving …
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
33
Asset Management: Storeroom
Strategic
Business
Objectives
Alignment
Strategic Alignment
Storeroom
Reliability
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
34
Real Results
Heavy Equipment Manufacturer





Transmission plant
Produces transmissions for tractors and
off-road equipment
Undergoing significant facility expansion
Uptime is critical
Changing out their storeroom vendor
Challenges

Improve MRO inventory management, reduce inventory costs, move and reorganize
storeroom
 Limited time to move and set up new storeroom, process and people
 Maximizing uptime is critical
 Inventory management controls and infrastructure not in place
 New machines were due thirty days after project started
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
35
Real Results
Solutions
Results
• Improved all major KPIs
Completed Six Sigma Study
Established new model for reviewing stock reorders and eliminating duplicate or
unnecessary orders
 Performed Business Process Analysis

 Storeroom Management team on-site


Project manager
Thirteen Storeroom Attendants
Reconciled entire MRO Inventory
Labeled all bin locations, identified all inventory,
updated customer’s business system
 Consolidated VMI inventory

Established SOPs for all material transactions
Implemented annual inventory analysis
processes
–
–
–
–
–
Inventory accuracy from 64% to 98%
Fill rate from 74% to 97%
Shipped on time 82% to 99%
Cycle count accuracy from none to 99%
Order accuracy from 88% to 100%
• Reduced overall inventory
– From $12.5M to $10.6M reduction
• Reduction of stock orders $200K per month
• Identified additional 21k line items of lost inventory
• Converted all material transaction process from
manual paper to automatic electronic
• Eliminated one third of the VMI vendors (6 to 4)
• Reduced VMI spend by 50% per month ($70K to
$35K)
How can you quantify ROI?
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
36
Session Objectives
Asset Management
 Keys to Its Success
 How to Position it Strategically in Your Organization
Make Connection with Opportunities You Have
 Perspective on Path Forward
 Electrical and Instrumentation Focus

Getting Started
Some Examples
Reliability Centered Maintenance
 Storeroom, ERP, Connected Devices, Firmware

Copyright © 2012 Rockwell Automation, Inc. All rights reserved.
37
Questions?
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www.rockwellautomation.com
Rev 5058-CO900C
Copyright © 2012 Rockwell Automation, Inc. All rights reserved.