A Look Inside Digital Industrial Transformation General Electric Company - All rights reserved

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Chester Holmes
6 years ago
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3 Market opportunity Digital industrial revolution by 2020 Consumer ~$170B Enterprise [IT] ~$200B Industrial [OT] ~$225B Applications $80B $130B $125B Platform $90B $70B $100B Source: Harbor Research, IDC, TCG Analysis

4 Why a platform for digital-industrial transformation? PREDIX The engine of modern industry Faster innovation Reduce risk Lower total cost of ownership Easier monetization Leverage a growing ecosystem

automation & control + intelligence machine apps machinelevel security data governance machine learning Digital

5 Confidential. Not to be copied, distributed, or reproduced without prior approval. The Predix Difference: Built from the ground up for industrial computing Machine connectivity Industry insight automation & control + intelligence machine apps machinelevel security data governance machine learning Digital Twins scalable cloud Built for + industry Edge to Cloud Distributed Compute + Digital Twin and Physicsbased = Analytics Digital Transformation

6 The platform to build and manage Digital Twins

7 Real world computing from edge-to-cloud 7

8 Real world computing from edge-to-cloud Predix-ready controllers Predix-ready gateways Predix-ready appliance Cloud

9 San Diego Gulf of Mexico Dubai North Atlantic Central U.S. Rio de Janeiro

11 Value Story Strategy & Practice SCENARIO Replacement Asset Value $1B Production capacity tons per day 500K Net margin per ton $4.65 METRICS Reactive Preventive Predictive Proactive Annual Maint. Spend % of RAV 13% 8% 5% 2% Annual Maint. Spend $ $130,000,000 $80,000,000 $50,000,000 $20,000,000 Stores value % of RAV 7% 4% 1.60% 0.60% Stores value $ $70,000,000 $40,000,000 $16,000,000 $6,000,000 Production Improvement % -3% 0% 1% 3% Production Improvement $ ($25,458,750) $0.00 $8,486,250 $16,972,500 GE Oil & Gas Digital 11

12 System 1 + Meridium Portfolio Strategy Integrated Enterprise Value Enterprise / Strategic Level APM/ Meridium Enterprise Impact Intelligent Asset Strategy Operations Executive Management COO/Plant/Asset Manager Reliability Manager Maintenance Manager Enterprise Fleet/Equipment Analysis Supervising Machinery Engineer Maintenance Manager Operations Manager Reliability & Process Manager/Engineer Seamless integration from enterprise level to deep tactical equipment level (Real Edge-2-Cloud) Multi-stage analytics tailored to customer need Enterprise level for mid to long term analysis and strategic planning Machine / Tactical Level System 1 Machinery Condition & Diagnostics Reliability Engineer Machinery Engineer Condition Monitoring Engineer Condition Data Technician 4 Machine level for technical tactics, short term oversight and intervention GE Oil & Gas Digital 12

Presentation Online continuous vibration and process Offline portable vibration Lube oil Maintenance and operating

13 Reactive to Predictive to Proactive Scope 4 regions with 9 sites Combination of gas gathering, water treatment, and gas processing Customer Value Project Objectives Operations Commissioning Functionality Acquisition, Integration, Analysis, Presentation Online continuous vibration and process Offline portable vibration Lube oil Maintenance and operating Production costs Increase Total annual savings Savings through commissioning phase $2m GE Oil & Gas Digital February 10,

15 Consumer P{ Event } P{ E } Industrial Digital Twin Models that continuously increase insights in each asset to deliver specific business outcomes. Amazon Apple Google Age Income < $70K Parents live ~ 600 miles Female First child, 5-10 months Spends $1.2K/month online Model of 1 Flying in North America 2.6 Service Years Last inspection found distress ranking < 2 Flies 80% in Pacific NW Temp. T49 delta < 10 o F Due for overhaul in 7.1 months Individual LIFE Life 0.5 Individual PERF. Performance P&L of Trips [K] Efficiency [%] Platform for all GE Oil & Gas Digital 15

16 Digital Twin driving business outcomes across Oil & Gas Strategic Transformation Physical Digital Outcomes Early Warning (LM 2500 Bearing Failure) Bearings Inlet and exit Pressures, temperatures, flow rates, vibration day advance notice with zero unplanned downtime Continuous Prediction (Frame 5 Nozzle Damage) S1 Nozzle Oxidation, Cracking Operating data (Pressures, Temperatures), Environmental Data Unplanned outage reduction, Predictive Maintenance $8MM in savings Dynamic Optimization (Reservoir Production Optimization) Reservoir Production Surrogate and network models - Flood and field continuous optimization, Historical data Increased yield and reduced operational cost- ~15% NPV improvement

Digital Twin Value Creation Virtuous Cycles 661K+ Twins $300MM+ Work

Planning Work Optimization Service Optimization Design New Service Impact

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Production Transformation Production Optimization Factory Operations

17 Digital Twin Value Creation Virtuous Cycles 661K+ Twins $300MM+ Work Transformation Services Transformation Inspection Optimization Work Planning Work Optimization Service Optimization Design New Service Impact Creation Availability Efficiency Economics Customer Business & Data Customer Value Performance Customer Experience Production Transformation Production Optimization Factory Operations Optimization Process Optimization Design for Manufacturing

18 Oil Field Digital Twin Demo

19 From Machine Learning to Learning Systems Consumer Leadership Learning + Edge Controls TESLA Self-Driving Human Expert Trainer Industrial Leadership Learning + Edge Controls Oil Field Production Optimization Equipment failure early warning day lead time TESLA Road Experience One car to all cars GE Oil & Gas Reservoir optimizer 10-15% NPV increase Lift optimizer 10-20% Production increase Cloud/Edge Learning Semi Automated Tag Mapping 50-70% Reduction in data ingestion time New services: Driverless Trucks. Buses, Water Taxis. New services: NPV Bank, Network Efficiency, Inspection-as-a-Service Learn from Self Learn from Humans Learn from Fleet Learn from Simulation

20 Digital Twin Delivering Business Value in PREDIX APM PREDIX APM Upstream Parts Twins Frame-5 Stage1 Nozzle Product Twins Artificial Lift Process Twins Field engineer scheduling System Twins Field Optimization

Enterprise value The journey to value for Oil & Gas operators Data collection & visualization Phase 1 Accelerated Response Monitoring & diagnostics Analytics Phase 2 Reduce NPT Optimization &

22 Enterprise value The journey to value for Oil & Gas operators Data collection & visualization Phase 1 Accelerated Response Monitoring & diagnostics Analytics Phase 2 Reduce NPT Optimization & prediction Artificial intelligence Phase 3 Optimize Production Autonomous / Demanned operations Phase 4 Autonomous Operations Level 0 Level 1 Level 2 Level 3 Level 4 Level 5 Digital maturity 22

23 Oil & Gas customers looking beyond asset productivity Production Optimization Stairway Fully autonomous operations Economically optimal production Integrated remote collaboration 8.4 NPT Avoidance Stairway Complete production visibility Maximum asset utilization Optimized asset life 7.0 Zero unplanned downtime 8.5 Accelerated problem resolution 8.1 Customer value assessments on a 1 (low) to 10 (high) scale 23

24 The Predix-Powered Oil & Gas world Software and analytics Equipment data Apps Production data Fullstream industry domain Fullstream service excellence = Well completion data Reservoir data Differentiated productivity leader Logging and evaluation data Architecture Drilling data 24

25 Outcome KPI Value to Customer* GE+ BHI Fullstream BHI Upstream GE Oil & Gas Predix-powered outcomes Value to Segment Reduced NPT- LNG Reliability 2-3% +1% $40-50M LNG process optimization Production +4% +6% $5-10M $3-7B Downstream Midstream Avoid unplanned downtime Availability 1% 3% $10-20M Reduce OpEx cost- Refining OpEx Cost $30k/d $60k/d $10-20M Reduce artificial lift NPT Availability +3% +8% $10-25M Optimize lift sizing Production +10% +25% $20-30M $6-12B $5-8B $200b Opportunity for industry Reduce NPT - drilling Cost/well 10% 30% $5-$15M $15-20B Maximize ultimate recovery ROA 20% 40% $300-$350M $20-50B Creating the Fullstream productivity leader for the oil and gas industry *Annualized value creation opportunity for average sized opportunity (ie: mid-sized refinery, mid-sized LNG facility, 100 BOPD oil field operation) 25

26 GE Oil & Gas digital solution map Powered by Customer outcomes Non-productive time avoidance Production optimization Process optimization O&G vertical product suites Core services Upstream Onshore Offshore Subsea System health LNG/FPSO LNG FPSO FLNG Incident management Digital inspections Midstream Pipelines Storage Maintenance optimization Downstream Refinery Petrochemical Fertilizers Contribution model Utilize and extend Predix, APM, Meridium, ServiceMax cloud services Contribute back to GE Store Visualization and collaboration Digital twin foundation Asset services Edge and on-ramp services Connectivity Workflow optimization Analytics orchestration Edge Risk management Data management Inspections onramp Operations optimization Simulation System 1 onramp 26 26

27 What Do You Do Now? 1. Review How Digital Can Transform Your Business Beyond Optimization of Individual Silos 2. Adopt a Cloud-Based Asset Performance Management & Production Optimization-Based Strategy 3. Bring the Future to Life 27

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