T83 - Lifecycle Extension and Migrations Minimizing Obsolescence Risk on the Journey to The Connected Enterprise
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1 CO900H T83 - Lifecycle Extension and Migrations Minimizing Obsolescence Risk on the Journey to The Connected Enterprise PUBLIC
2 Agenda Global Manufacturing Outlook Defining Risk Identifying Risk Mitigate Risk Help Eliminate Risk Getting Started
3 GLOBAL MANUFACTURING Tomorrow s Scenario GLOBAL POPULATION TRENDS INCREASE DEMAND FOR Manufacturing Resources Infrastructure More Water EMERGING MARKET CONSUMERISM 30% 100% 80% More Steel More Vehicles 50% More Energy RESOURCE PRODUCTIVITY INVESTMENT $1T Annually PUBLIC By billion new middle class consumers will add $8 trillion to consumer spending Source: McKinsey 3
4 How Industry Meets the Challenge Transactional data: orders, supply network, product design ERP FINANCIALS HR LOGISTICS QUALITY CRM IT CONVERGENCE SENSORS, ACTUATORS OT Real-time data: control, safety, security CONTROLLERS MATERIALS & TRANSPORT MACHINES & EQUIPMENT The Connected Enterprise has become a business imperative
5 Connected Enterprise The Industrial Internet of Things at work for Industrial Applications DATA ANALYTICS CLOUD & VIRTUALIZATION MOBILITY Contextualizing and analyzing data Smart devices create more things to be analyzed Reliability, support and disaster recovery Shift from CapEx to Flexible & Scalable OpEx Access to actionable information Work force is Mobile during typical work day Enabled by Integrated Control and Information
6 6 Industry Status What is your Status and what is your Plan?
7 7 Automation Obsolescence Risks Increasing Support Costs Subject Matter Expert Attrition Safety & Sustainability Regulatory Compliance Limited Parts Availability Modernization of legacy automation helps eliminate obsolescence risk and helps accelerate progress to The Connected Enterprise
8 Copyright 2015 Rockwell Automation, Inc. 8 All Rights Reserved. 8 Defining Automation Obsolescence Risk What is Automation Obsolescence Risk? The extended downtime risk automation users take (knowingly or unknowingly) using products that are no longer available for sale and have limited to no serviceability remaining The goal is simple: Help you maintain awareness of automation obsolescence and develop a strategy to mitigate and ultimately help eliminate this risk
9 Product Lifecycle Category Definitions Product Launch A Newer Product in that Category is Launched Announcement that Product will be Discontinued Discontinued Date
10 10 What We Want You to Know Discontinued Powerflex 700H Automax DCS ICS Triplex Regent 1394 Servo Drives 1326 Motors 1305 AC Drives PanelView Std 1336 AC Drives 1557 MV 1395 DC Drives A number of popular Rockwell Automation products are no longer produced or are nearing the end of their production life
11 PLC5 End of Life Current State PLC-5 has been sold for nearly 30 years End of Life for PLC-5 and 1771 I/O is near PLC5 and 1771 I/O sales are currently restricted Parts availability will become more restricted for installed base support PLC-5 and 1771 customers need a migration plan
12 Strategy
13 Strategy PUBLIC 13
14 14 Step 1 - Identify Identify Safe collection and attention to detail are necessary for success
15 15 Step 2 - Research Research
16 16 Step 3 - Prioritize Prioritize
17 17 Online Lifecycle Lookup Tool
18 Additional Self-Help Tools
19 19 Migration Brochure
20 Migration Solutions Notifications Initial Releases Powerflex 700H PanelView Standard PLC Servo Drives AutoMax Reliance Drives 1336 AC Drives 1305 AC Drives 1395 / 1397 DC Drives 1557 MV Drives
21 Assessment Option PUBLIC Assessment Service Includes: MRO analysis including location & optimization recommendations Identification of automation obsolescence risks Identification of product lifecycle status via plant hierarchy Benefit Provides clear understanding of MRO stocking and obsolescence risks and opportunities for better storeroom and migration planning 21
22 Strategy
23 23 Once the Risks are Identified Then What? After the risk has been quantified, you have to make some critical decisions Mitigate Risk? Mitigating obsolescence risk until scheduling and/or capital funding becomes available How long do you intend to operate equipment? Is support readily available? Is capital funding available? Is there applicable new technology available? What are the migration implications (training, support, etc)? Eliminate Risk? Eliminating obsolescence risk through product migration
24 24 Risk Mitigation Being Prepared
25 25 Obsolescence Risk Mitigation Mitigating risk of irreplaceable, obsolete equipment requires a renewed level of attention...intensive-care Support Preventive Maintenance Critical Actions 2. Access to Legacy Technical Support 3. Spare Replacement & Legacy Repair Support 4. On-Going Management of Obsolescence Status
26 26 Preventive Maintenance for Discontinued Products Are filters replaced regularly? How often are PM actions performed? Are programs/parameters backed-up? When was battery last replaced? When was power last checked? Was there a product notification on equipment? Is current operating environment within OEM specifications? Are cooling fans operational and clear of obstructions? When is the last time grounding was checked? Does the equipment possess the last firmware update? Do you have an updated logbook documenting inspections of obsolete equipment? Legacy products DEMAND adherence to consistent preventive maintenance activities when maximum product life is desired
27 Access to Legacy Remote Support Are newer technicians skilled at maintaining all legacy products? Can they: All Legacy Products? Install or re-install... Configure... Maintain... Diagnose operating problems for... Fix operating problems associated with... Perform basic programming tasks for... Have the legacy experts been promoted, moved to different departments, employers or retired? PUBLIC 58% of companies surveyed have faced issues with training young engineers and technicians to operate and maintain older control systems (source: ARC Advisory Group 6/10) 27
28 Access to Legacy Spares and Repair Support Do you carry MRO automation spares inventory? If yes: How was it calculated? Has it been effective? By what measure? Is it too much? Is it too little? What is your carrying cost? Is it in operating condition? How do you know? Did you purchase, consign or leverage supplier? Do you know what is active, excess-active and inactive? Do you know what is legacy vs. active inventory? How have you re-calculated for your legacy installed base? If no: How are you going to support legacy products when you can no longer acquire new? An ineffective spares management process can result in at least 15% - 35% of machine down time PUBLIC MarcusEvans Maintenance conferences
29 29 On-Going Management of Obsolescence Status Are you prepared to make the investment to maintain an obsolescence database? If yes: Who has the expertise to maintain it? What makes them qualified? Do they have the bandwidth? What tools are at their disposal? If no: How do you avoid future problems regarding obsolescence? The key to success for better obsolescence management is committing to a continuous program... Are You Committed?
30 A Bridge to New Technology A single, comprehensive agreement created to maximize the life of your automation investment and minimize downtime events PUBLIC Copyright 2015 Rockwell Automation, 30 Inc. All Rights Reserved.
31 Elements of the Extension Agreement Lifecycle Extension Agreement: options designed to minimize the risk of operating discontinued Rockwell Automation hardware as you migrate to newer technology! PUBLIC Solutions to buy you TIME to implement your migration strategy! 31
32 Key Contract Services for End of Life and Discontinued Products Installed Base Evaluation On-site collection and consulting service that pinpoints automation obsolescence risk by enterprise, facility, line, machine, panel and identifies MRO inventory risks and optimization opportunities. Legacy TechConnect Remote Support to sustain availability to product updates and access to knowledgeable legacy product engineers. Supplements customer engineer staff. Reserved Repair Provides guaranteed repair-ability of discontinued products. Secured component parts, technicians, test stands, etc. for customers who cannot immediately migrate, but must keep legacy automation up and running. PUBLIC Parts Management Agreements (PMA) Rockwell Automation owned inventory dedicated to one (P1) or multiple (P2) customers. P1 PMA s are located on customer s site, while P2 PMA s are stored centrally at a Rockwell Automation facility. Generally, PMA s require that the contract is secured prior to the discontinue date. Last Time Buy Agreements Provides continued access to finished goods after the product has been discontinued. Contract must be secured prior to discontinuation (unless inventory remains) and customer agrees to a predetermined minimum quantities and consumption rate. On-Site Engineering Preventive Maintenance (PM) contracts to support legacy products. Embedded Lifecycle Engineers can be contracted as well to develop a modernization roadmap and execute migration services under contract. 32
33 Can Be Combined into Tailored Options Lifecycle Extension Agreement: options designed to minimize the risk of operating discontinued Rockwell Automation hardware as you migrate to newer technology! PUBLIC Solutions to buy you TIME to implement your migration strategy! 33
34 Elements of the Extension Agreement Lifecycle Extension Agreement: options designed to minimize the risk of operating discontinued Rockwell Automation hardware as you migrate to newer technology! PUBLIC Solutions to buy you TIME to implement your migration strategy! 34
35 Strategy
36 36 Benefits of Replacing Technology Cost High Offering Middle Offering Low Offering High Offering Middle Offering Low Offering Functionality
37 37 Technology Advancements PLC-5 ControlLogix More Memory: Fewer Processors Required for Same Applications Performance: Improved Scan Times = Increased Production & Quality Safety: Designed Into Product Reliability: Redundancy Without Relays Compliance: RoHS Certification Sustainable: No More Batteries Reduced Size: Less Panel Space
38 IBE Migration Planning Application Develop a migration plan Prioritize work processes and machines based on their reliability, priority to the facility, and expected life. Also prioritize the types of equipment that are most important i.e. Drives vs. PLCs vs. HMIs. Outcome Risk based scoring model shines the light on the most critical pieces of equipment based on collected information as well as customer inputs. This score can be used to know where to start a migration discussion!
39 Obsolescence Risk Elimination Managed Migration Installed (Legacy) Control System Considerations: Downtime for new install New application code development Employee training on new systems Network compatibility Retain field wiring investment Disposal of legacy products Managing spares PUBLIC New (Rockwell Automation ) Control System Rockwell Automation Products & Services New products: Integrate with existing systems (Drop-in replacement) Migration of legacy products: Migration tools (Adaptors, Code Conversion, IAB, etc.) Commercial programs Services (Installed Base Evaluation ) Simplify the plant maintenance effort by making automation Common & Current 39
40 40 Rockwell Automation Solutions Migration planning & execution options to meet all needs
41 41 Phased Migration & Extensive Migrations Toolkit
42 42 I/O Wiring Conversion System An I/O Conversion System consists of three components: 1492 Mounting Assy (Cover Plate and Base Plate) 1492 Conversion Modules 1492 Cables Cover-Plate (1756 Chassis Mounts on Top) Base-Plate (Houses Conversion Modules) 1756 Chassis & I/O D-shell Connectors for Cables Conversion Modules
43 43 I/O Conversion System
44 44 A Scalable, Phased Migration Option Rockwell Automation can help you cost-effectively migrate to the latest ControlLogix technology: We systematically prioritize your migration requirements by migrating only one PLC-5 rack, leaving any connected devices, slave controllers and I/O racks in place By migrating the core controller and chassis, you lay the foundation for future modernization The PLC-5 migration package is ideal for discrete, straightforward applications communicating to devices and remote I/O racks on existing networks such as DH+ and remote I/O A whole new meaning to migration Easy, Fast, Affordable
45 What Can Be Expected Post Migration Reduced maintenance Less downtime Enhanced data collection and analysis capabilities Ability to integrate other control/information systems Integrated Motion Integrated Safety Quicker product changeovers Fewer manual operations required Improved quality Less energy required Increased throughput Advanced process control capability Built-in cyber security features
46 46 For More Information Visit the Literature Library: Rockwell Automation Migration Solutions Brochure PLC-5 > ControlLogix Phased Migration Solution Profile 1756-RIO Product Profile 1492 I/O Wiring Conversion System Selection Guide Visit the E-tools website: Install Integrated Architecture Builder Install ProposalWorks Visit the Product Lifecycle Status website Visit the Migration Solutions website Visit the Integrated Architecture Tools website Visit the Lifecycle Extension & Migrations website
47 SUPPORT MIGRATE Getting Started STEP 1 STEP 2 STEP 3 COLLECT ANALYZE COLLABORATE SOLUTIONS Parts Repair Recycle Remote On-site Train PUBLIC
48 48 Summary Effective management of automation obsolescence risk can be accomplished without sacrificing profitability, quality, and production rates Quantifying Obsolescence should be looked at as a three-step process: 1. Identify 2. Research 3. Prioritize Constantly monitor product availability and serviceability Provide Intensive Care Support for legacy installed base Minimize surprises through Managed Migration Planning Successful implementation of these initiatives will significantly minimize obsolescence risks and drive improvements in plant uptime as well as improve corporate financial performance.
49 Thank you! PUBLIC
50 50 Installed Base Evaluation Assessment of Customer s Installed Base and Spare Parts Inventory Assessment Service Includes: MRO analysis including location & optimization recommendations Identification of automation discontinuation risks (RYG) Identification of product lifecycle status via plant hierarchy Benefit Provides clear understanding of MRO stocking and discontinuation risks and opportunities for better storeroom and migration planning
51 51 Reserved Repair When repair capabilities become constrained or finite only customers with Reserved Repair can be assured of repair access Guaranteed access to a repair, not a repair itself Components secured in Rockwell Automation repair center Testing equipment maintained Technicians trained on old products Documentation and systems The Rockwell Automation reserved repair obligation ends when all reserved repairs are consumed OR when the contractual time period ends, whichever comes first Quarterly reports are included
52 Extended Warranty (Assurance Integrated Support) PUBLIC 52 Holistic support that covers legacy equipment while your migration is taking place. All support is provided for one fixed price Repairs Remote Support On-Site Support
53 53 Legacy TechConnect Self-Assist Tech Support for Rockwell Automation discontinued and End of Life hardware Benefits include: Unlimited web support One business day response Technical assistance for Installation Configuration Troubleshooting Diagnosis Basic programming Access to Knowledgebase Possible upgrade to phone support
54 54 On-Site Support Annual Scheduled Maintenance services and Migration/Conversion planning support On-Site Support includes: Assessment to Record pertinent system/component data Conduct environmental observations Determine overall equipment condition Standard inspections and tests to help verify equipment is operating to specifications Collected information and discussions with facility managers will be used to construct migration plan Benefits: Provide visibility to changes in customer s plant floor Custom plan to support and migrate plant assets according to customer s needs *Additional on-site services available
55 55 Parts Parts Management Agreements confirm ready access to critical spares by providing Rockwell Automation owned inventory at your site or a Rockwell Automation location. Fixed monthly/quarterly pricing Flexible over time In-service warranty on agreement stock Extended warranty option may be purchased
56 56 Last-Time Buy Contract Support of Rockwell Automation products in the End of Life phase by providing a specified quantity of parts to be delivered over a specified period of time Rockwell Automation will Manufacture/acquire requested quantity of product Hold product in its own facilities Deliver product in pre-determined schedule over contractual period Benefits Cash flow improvement Buys extra time for your migration plan
57 57 Embedded Lifecycle Engineer An engineer who is dedicated solely to the identification, mitigation, and migration of a specific customer s discontinued RA assets A great option for customers: With a large and diverse installed base of Rockwell Automation End of Life and Discontinued products Who do not have enough time or personnel to maintain migration planning A Lifecycle Engineer s responsibilities include collaborating with the customer to: Identify and prioritize highest risk equipment Provide solution recommendations through Hardware Engineering Software Engineering Commissioning Services Develop comprehensive schedule for implementation of migration solutions
58 58 Migration Contract Contract that provides product migration support through planning and execution Migration that includes other services such as Pre-Engineering On-Site Support Extended Warranty Repair Support Benefits Multiple migration options Phased Complete Turnkey Upon Failure Opportunity for diverse product migrations *Works well with Embedded Lifecycle Engineer
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