Jason Vick Manager, Mobility Technical Sales Consultants

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1 Operational Excellence A Reliability Journey Jason Vick Manager, Mobility Technical Sales Consultants

2 Introduction Reliability based initiatives are nothing new to Industry. Traditionally these initiatives have focused on: Condition Directed/Time Directed Activities Tasks that target preventing failures at the component level. Failure Finding Activities Tasks that target identification of failed components before a plant consequence. Commitment Activities Tasks required by Regulatory Agencies. To achieve the goals of the Reliability Initiative it will take help from everyone at the plant. Success will also depend on their ability to enforce Procedures and create visibility to the data collected.

3 Agenda Industry Challenges Workforce Enablement Improving Efficiencies w/ Mobility ROI

4 1 Industry Challenges

5 Challenges Confronting Industry Today Industry struggles w/ human performance & cultural change issues Change Adoption: New Work Processes/Technologies Talent Retention: Lack of Support & Priorities Motivation: Lack of Inspiration & Vision Knowledge Retention (Tribal/Institutional): Aging Workforce & Talent Retention Workplace accountability: Consistent & Responsible Completion of Duties Other plant & facility management issues Visibility of non-instrumented equipment Plant equipment reliability Safety and Regulatory compliance SOP (Standard Operating Procedures) management Paperless work management Task management & workforce scheduling optimization Plant maintenance & turnaround management

6 Organizational Challenges While Reliability initiatives offer huge benefits to many organizations, there are a host of challenges that prevent most people from achieving the highest levels of reliability. 1.Top down organizational support. 2.Employee Ownership. 3.Task Selection/Frequency. (Failure Finding, Failure Preventing, and Commitment) 4.Many PMs exist outside of CMMS (Data Visibility). 5.Deficient training (initial and ongoing). 6.Lack of Procedural Enforcement. 7.Misaligned Roles or lack of expertise. 8.ETC. 85% of change projects only achieve 40-60% of the anticipated result. The other 15% fail.

7 Failure to Identify/Assess Hazards Where there is no situational awareness there is complacency. Example of Challenges in Process Industries: Over 50% of maintenance cost are directly related to improper operation of equipment. 89% of all components fail randomly. These failures are most often caused by neglecting the basic care of equipment. Secondary equipment failures and production slowdowns are 8-10 times more costly than primary equipment failures. These failures are often caused by Reassembly Errors, Part Defects, Installation Errors, and Improper Operation. The front line workforce has the opportunity to radically improve plant reliability and operational profitability.

8 Multimillion Incident an Exception? Average cost per major incident related to operator error exceeds $80M. Findings by the Chemical Safety Topical Committee reveal an average of one Chemical incident/day. Average cost to comply with ORPS process is estimated at $2M per incident. * Source: Gulf Coast Plant Managers Forum Workshop Plant Success 2011 (ORPS Occurrence Reporting and Processing System US DOE) Note: Incident compliance cost requirement does not take into account other direct or indirect costs (e.g. repairing equipment/facilities, employee injuries, revising procedures, increased training, work slowdowns and stoppages during accident investigations and corrective action implementations, etc.).

9 2Workforce Enablement

10 A Perspective on Workforce Enablement Encompasses all Disciplines (e.g. Operations, Maintenance, Engineering, EHS Personnel etc.). Recognized as one of the foremost contributors to the bottom-line. Results derived from a combination of skills, tools and system design that includes the following elements: Competency based learning Accessibility of information and procedures on demand Human factor issues (situational awareness and responsiveness) Computer Graphic User Interface design for relevance Automation and control system integrity and reliability Abnormal Situation Management Effective communications and collaboration Control room/system design and environment Asset performance management Data integrity/ accuracy/ reliability

11 A Strategy to Improve Workforce Enablement The goal - Executives want to run plants safely and profitably and know in order to achieve these objectives they must empower employees to make better decisions faster. The Workforce Enablement strategy framework should address the company s management of: Content (knowledge, document, intellectual property) Learning (initial & ongoing) Business /Work processes (supports/accelerates continuous improvement)

12 Getting It Right Getting it right requires identifying and prioritizing where Workforce Enablement capabilities can best help achieve Operational Excellence. Factors to be considered include: Organization field workforce, subject matter experts, management, etc. Disciplines operations, health / safety / environmental, maintenance, reliability, etc. Locations process areas, control rooms, offsite areas Workforce Enablement tools simulation, work process management, mobility, workflow, communications etc. Scope what is in/out Validation leveraging industry references and experts SMEs Justification quantifying the ROI Auditing assessing/tracking the benefits

13 Workforce Enablement Targets 1. Leadership Accountability Facilitates setting and changing goals and objectives for the field workforce Provides better exception reporting so leaders can engage in continuous process improvement Encourages recognition, reinforcement and rewarding of good performance identified by metrics and events 2.Protecting People and Environment Helps enforce cost effective Process Safety Management compliance Helps ensure cost effective Environmental compliance Helps reduce likelihood of incidents and improves Risk Management assessment 3. People and Skills Development Mitigates loss of experience by capturing best practices Aids assimilation of new workers thru new processes and technologies (e.g. mobile learning on-the-job to accelerate experience and time to readiness) Increases Supervisors visibility/awareness

14 Workforce Enablement Targets (cont.) 4. Operations Reliability and Mechanical Integrity Delivers a best-in-class framework for procedural management Encourages a culture of asset ownership Helps bridge the chasm between Operations and Maintenance 5. Technical Excellence, Knowledge Management and Change Management Supports new work process improvement designs and repositories for best practices. Integral to continuous improvement to the company s Operations Management System (OMS) or Performance Management System (PMS) Ensures field personnel have right access with right procedural information in an auditable framework 7. Business Competitiveness Provides hard dollar value proposition with <12 month payback Improves asset responsiveness during changing business conditions (e.g. weather, market, costs, etc.) Improves risk management

15 What is Technology s Role in Workforce Enablement? Technology s role if it is good technology, provides three benefits: Serves as catalyst for change by providing a framework to reduce risk of implementing the process improvements Accelerates the deployment of the process improvements Helps gain user acceptance to sustain the process improvements The process improvement combined with the technology drive the new desired behavioral and culture changes to improve safety and profitability while empowering the workforce to quickly make better decisions.

16 3Improving Efficiencies with Mobility

17 What determines a good mobility solution? It is not about displaying tiny images and data on small devices It is not about extending a small window view of an existing system It is not about replacing paper IT IS ABOUT CHANGING PEOPLES ROLES AND IMPROVING WORK PROCESSES THRU INTELLIGENT WORKFLOW TO ALLOW PEOPLE TO MAKE - better, faster decisions at the point of incident!

18 Mobile Platform Should Address Various Industry Challenges Field Worker Rounds Field Worker Training Process Data Logbook Product Changeover Maintenance WOE Alarms & Events Lock Out / Tag Out Compliance Startup/Shutdown Procedures

19 The Traditional Approach- Operations Pump high vibration noted on paper based system Results: Pump Repair $10K Exchanger Repair $80K Lost Production $120K Time to Repair 4 days Total Cost = $220k Field results turned in at end of round Pump fails and secondary damage occurs to exchanger Data entered into reporting package Hours later data is reviewed

20 How It s Done with Mobility Field worker logs into Mobile App on handheld/tablet computer Asset is properly identified using RFID or barcode label Tasks are date/time stamped as completed Actual field conditions can trigger focused advice messaging or conditional Task(s) which directs the field worker to: Input more information such as notes Perform a special procedure to mitigate the condition Take additional measurements, create Work Request Results: Pump Repair $10K Exchanger Repair $0K Lost Production $0K Savings = $210k

21 Integrated Operator Workflow with Mobility System Administration Super Users Mobile Workers User Administration, Device Management System & Data Center Management Minutes not hours, equipment saved Management Procedures Versioning Scheduling Supervisors Procedural Enforcement & Situational Awareness Enterprise Integration Exception Reports Process/Performance KPI s Notifications Round/Route Approval Performance Monitoring Exception Management Shift Handover/Logs CMMS / Reliability Process Historians

22 Integrated Maintenance Workflow with Mobility Improved Material Coordination: Material Reservations from a mobile environment enables customers to increase wrench time by allowing parts to be ordered remotely and either delivered by a parts runner or picked up when order is ready instead of waiting for materials to be picked. Improved Planning: Intelligent workflow. (e.g. Decisions, Conditional Tasks, Dynamic Limits/Actions, etc.) Attachment of Digital copies of all relevant Manuals, Guides and Procedures to be used on the mobile computer.

23 Integrated Maintenance Workflow with Mobility Improved Scheduling: Workload balancing metrics to help ensure resources are not being overloaded. Additionally, more accurate job completion times enable Planners to more accurately estimate durations based upon historical WO data. Increased Field Supervision: Procedural enforcement, enhanced data visibility, and ed exception reporting. This enables current Supervisors to work more efficiently thus reducing the need to add additional headcount. Decreased Travel: Mobile environment allows Mechanics to have all relevant reference materials at their fingertips including, trendable historical data of all tasks within the repair/pm procedure. Additionally, several WOs can be made available to Mechanics on the mobile allowing them to change to a different WO if the equipment they are supposed to work on is unavailable. New WOs can be sent to the mobile while Mechanic is in the field. Measure Progress: Consistent and accurate updates of WO history information to the CMMS. Additionally, the data can be; Integrated into other 3 rd party systems Trended Reported on (Exception, Compliance, Bad Actors, etc.)

24 4Return On Investment

25 KPIs & ROI Ensuring your Return On Investment (ROI) is critical for any project executed at your plant. Now the questions is: Where will the ROI come from?

26 Integrated Operator Workflow ROI Industry have seen the following improvements in their workforce when performing Integrated Operator Workflow: Asset uptime/availability 10-30% Reduced Maintenance Costs & Mechanical Effectiveness 5-30% Increased Workforce Productivity 20-30%+ Regulatory Compliance visibility >30% Increase in visibility to non-instrumented data 20-30%+ Typical payback in 6-12 months Source: Wonderware Customer Reference Statistics

27 Mobile Work Order Execution ROI Industry have seen the following improvements in their workforce when performing Mobile Work Order Execution: Safety incidents reduced to near zero Work capacity increased by 10 to 20% Labor productivity increased by up to 50% Rework reduced by 15 to 20% (Rework is 8-10 times more costly than the initial failure) Mobile Work Order Execution has helped customers realize these assetrelated benefits: Downtime and production delays reduced by 20 to 30% Preventable failures reduced by up to 90% Maintenance backlog reduced by up to 60% Inventory carrying costs reduced by 5 to 10% Source: SAP Customer Reference Statistics

28 Summary Mobile Apps can help to manage the processes and procedures used to ensure that organizations consistently execute all field tasks required to achieve reliable operations. Mobile Apps can provide an extensible Task Management and Performance Monitoring System that fosters stewardship and accountability. Mobile Apps can provide contextual information and user guidance to help drive reliability and improve performance. Mobile Apps can tightly couple enterprise applications with field workers and actionable tools to implement and sustain reliable operations in a wide range of industries.

29 Questions & Answers Contact Information: Jason Vick (m) +1 (302)

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