Infor Asset Sustainability an integrated asset, energy, & environment mgt. strategy

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1 Infor EAM - De gateway naar Sustainable Asset Management Control Bas Beemsterboer - Infor AMC Seminar - 29 oktober 2009 Infor Asset Sustainability an integrated asset, energy, & environment mgt. strategy 1 1 Copyright Copyright 2008 Infor All Infor. rights All reserved. rights reserved.

2 Let me ask you What if you could enable your operations to improve operational efficiency? What if you could enable your operations to stimulate the bottom line by reducing energy costs by 20% or more? And, what if you could accomplish the above and have a demonstrable impact on preserving the environment? 2 Copyright 2008 Infor. All rights reserved.

3 The Case for Change: Energy Consumption Has The Highest Impact on Operations & the Environment Quadtrillion BTUs % BTUs Base Yr % of business leaders feel this way (source: Plant Services) Energy: the single largest indirect operating expense > 60% of O&M expense Electricity prices are up 30% since 2003 Predicts that energy costs will continue to rise another 57% by 2020 Proposed Cap-and-Trade would raise energy cost by 7% by 2012 Energy is the leading contributor to GHG emissions The U.N. is expected to act for the first time to regulate carbon dioxide and other GHGs Profound impact on transportation, manufacturing, and facility operational costs and how utilities generate power. Non- Energy 39% 63% 3% Energy 61% 24% 10% Methane Nitros Oxide Carbon Dioxide Others 3 Copyright 2008 Infor. All rights reserved.

4 Energy & Carbon Management Strategy Energy Conservation & Demand Reduction are Critical Elements for GHG Mgt. Source Fuel Efficiency Fleet Mgt. Fuel Total GHG GHG GHG GHG Continuous Commissioning Retro-fit / Equipment Upgrades Process Control LEED Conservation Assessment Business Process Integration Visibility Collaboration Reporting Compliance Validation Benchmarking Electricity Light Fuel Oil Heavy Fuel Oil Natural Gas Coal Steam Fugitive Gases Material & Supplies Global Asset Sustainability Waste Disposal Business Travel GHG Logistics 4 Copyright 2008 Infor. All rights reserved.

5 The Role of Enterprise Asset Management Practices Classic EAM addresses 25-30% of O&M expense Impact throughout the asset lifecycle Capacity Availability Life-cycle Indirect impact on energy consumption E.g. best-practice maintenance programs Environmental Stewardship Decommission & Disposal Operate & Maintain Asset Mgt. Planning & Procurement Construction & Commission Energy Demand Management But But energy energy and and GHG GHG impact impact is is not not factored in in yet yet it it represents the the largest largest portion of of O&M O&M budget budget and and potential risk risk to to a company and and the the environment! 5 Copyright 2008 Infor. All rights reserved.

6 Energy Efficiency Current Situation Typical Energy Loss Energy loss is due to inefficiencies in a wide range of equipment used for facility operations and manufacturing process activities (5% - 80%) Within a facility, energy is lost in fuel and electrical distribution lines, as well as steam pipes, traps, and valves (3% - 40%) Onsite losses occur in central energy generation applications such as steam plants, power plants, and CHP plants (10% 45 %) Energy is the single largest contributor to carbon emissions (CO 2 e) Percent Loss (%) Equipment Onsite T&D Onsite Generation Motors Fans Compressors max. HVAC Pumps min. Source; U.S. EPA 6 Copyright 2008 Infor. All rights reserved.

7 EAM Evolution The Paradigm Shift Global Asset Sustainability Infor Solution Asset Performance Capacity, Availability, Quality Financial Performance < 30% of O&M Expense** Based on industry standards ** excluding labor Yesterday The management of property, plant, and equipment to meet a company s valid operations Enriched Infor and financial requirements Solution EAM Enablement Today The management of property, plant, and equipment to meet the Infor operations, Solution economic, and socioeconomic needs of today without compromising the ability Enriched of future Infor Solution generations to meet their own such needs. GAS Enablement Asset Performance Capacity, Availability, Quality Financial Performance > 80% of O&M Expense ** Environmental Performance GHG & Fugitive Emissions ** excluding labor Rod Ellsworth; Vice President Infor Global Solutions; Copyright 2008 Infor. All rights reserved.

8 A New Approach: Global Asset Sustainability Delivers all of the benefits of EAM, plus: Integrates asset energy consumption into an EAM strategy Focuses on demand-side of energy (e.g. asset consumption) Makes energy consumption visible at meaningful and actionable level Assesses more complete operational, financial, and environmental risks Incorporates energy efficiency and impact into asset life cycle Provides significantly greater value: Reduces energy consumption and costs by 6-20% Reduces carbon emissions Maximizes value of carbon assets Improves compliance Reduces downtime, improves capacity & quality, and optimizes the asset life Optimize equipment performance at at lowest lowest possible costs costs and and environmental impact. 8 Copyright 2008 Infor. All rights reserved.

9 Infor EAM Asset Sustainability Energy and Environmental Impact Asset Management Asset Sustainability ENERGY INTEGRATION PROGRAM FUGITIVE EMISSIONS ALERT MANAGEMENT CO 2 e MGMT PLANNING PROCUREMENT ENGINEERING iprocure CONFIGURED KPIs, Inbox, Reports Energy & Environmental Impact: In addition to the enterprise asset management and energy demand management capabilities, Infor ASE provides a comprehensive, integrated energy and environmental sustainability environment. 9 Copyright 2008 Infor. All rights reserved.

10 Asset Energy Efficiency & GHG Mitigation Asset Continuous Commissioning Commission fixes Commission fixes Preliminary Data Collection Preliminary Data Collection (e.g. equipment nameplate information, set (e.g. equipment nameplate information, set points, points, energy energy efficiency, efficiency, operations operations limits) limits) Continuously monitor and run equivalent Continuously monitor and run equivalent functional asset tests functional asset tests Continuously Continuously record, record, analyze analyze and and interpret interpret observations and functional test results observations and functional test results Manually Manually correct correct problems, problems, change change installation, replace, repair installation, replace, repair Report results. store and archive data Report results. store and archive data Continuous Commissioning ongoing process for monitoring systems and assets, diagnosing and resolving issues, and making energy consumption as efficient as possible while maintaining or improving asset performance. includes all asset life-cycle operating and maintenance aspects from physical maintenance, to control strategies, to prioritizing and implementing retrofits. Benefits Optimize asset operations 20 % + energy reduction for monitored assets DOE Continuous Commissioning Guide Book Independent Study by Texas A&M 10 Copyright 2008 Infor. All rights reserved.

11 Actionable Results with Global Asset Sustainability Sustainability KPIs can reduce complex facility and manufacturing operating problems of optimizing operating performance at the least total energy cost and environmental risk into simple, intuitive presentation of actionable sustainability information. The Sustainability KPIs can be an Environmental Scorecard. KPIs can be set up at any level of organizational hierarchy providing the ability to drill down through in the organization to contributing organizational entities or functions. G.A.S. Index = Availability * Performance * Quality * Energy Efficiency CO 2 e Intensity 11 Copyright 2008 Infor. All rights reserved.

12 Actionable Results with Global Asset Sustainability Global Asset Sustainability KPI OEE KPI Global Global Asset Asset Sustainability Sustainability catches catches energy energy waste waste OEE OEE indicates indicates peak peak performance, performance, but but energy energy waste waste is is missed missed Global Global Asset Asset Sustainability Sustainability makes makes hidden hidden costs costs visible visible 12 Copyright 2008 Infor. All rights reserved.

13 Motor Efficiency Example Copyright 2008 Infor. All rights reserved.

14 Let s Look at a Motor Efficiency Example Motor efficiency ηsys is defined as follows: ηsys = energy (out) / energy (in) 90,000 Watts 300 HP 74,600 Watts 1HP =.746 Kwatts 15,400 Watts (17.4%) HP kw Run Time (hrs) Actual System Efficiency Calculated from Field Measurements (ηα) Optimal System Efficiency (ηο) kw 40, Copyright 2008 Infor. All rights reserved.

15 Improve Motor System Efficiency Factors that may impact operating performance Inefficiency Causes (Heat, etc.) Improper design and install Misadjusted parts Worn parts Corrections Motor replacement, or Replacing or refurbishing Process Change PM s (lubrications, etc.) Inspections Reliability Maintenance Performance Irregular Irregular performance performance patterns patterns Optimal System Efficiency (ho) Actual System Efficiency Calculated from Field Measurements (hα) Actual System Efficiency Calculated from Field Measurements (hα) Time As As complexity complexity increases, increases, several several different different failure failure modes modes may may exist exist Inefficiencies manifest themselves in in increased energy energy consumption. Energy efficiency degradation is is a indicator of of operating performance. 15 Copyright 2008 Infor. All rights reserved.

16 RCM, PM, etc. do not factor energy loss Condition Monitoring intervals vs Detection-Failure period Deterioration is detectable (potential failure) Performance Fix Energy loss Failure happens (functional failure) Time Condition Monitoring interval Cost benefit analysis based on OEE, maintenance, capital requirements however the total cost is not factored in! 16 Copyright 2008 Infor. All rights reserved.

17 ASE Continuous Commissioning The Energy Factor (GAS vs OEE) Deterioration is detectable (potential failure: energy) GAS Deterioration is detectable (potential failure: inspection) Performance Fix (GAS) Fix (OEE) OEE Energy loss differential Failure happens (functional failure) Time Condition Monitoring interval Cost benefit analysis considers energy efficiency 17 Copyright 2008 Infor. All rights reserved.

18 Infor EAM: Value that Distinguishes You Performance First Response with Infor EAM Preventative Maintenance, Inspections, RCM, PdM Infor EAM EAM Corrective Maintenance Time, Costs 18 Copyright 2008 Infor. All rights reserved.

19 Motor Efficiency Savings Example: Efficiency testing and analysis indicate that a 300-horsepower motor has an operating efficiency of 82.8%. However the manufacturer s Motor specification indicates that it should operate at 94% efficiency. The motor draws 90kW and operates 8,000 hrs. per year. Assuming that the motor can be restored to operate at its origin or design performance condition, estimated annual energy operating costs are as follows At an average cost of 10 cents per kwh: (300 HP x.746 kw/hp x 8,000 hrs. x $.10/Kwh ) /.828 efficiency = $216,231/yr. The motor should have cost: (300 HP x.746 kw/hp x 8,000 hrs. x $.10/Kwh ) /.94 efficiency = $190,468/yr. Savings: $25,763 / yr. or $128,815 over the motor life expectancy Results in in a 12% 12% reduction in in energy energy cost cost attainable through energy energy efficiency integration with with continuous commissioning asset asset management activities. 19 Copyright 2008 Infor. All rights reserved.

20 Infor EAM Asset Sustainability Edition The Bottom Line Copyright 2008 Infor. All rights reserved.

21 The Bottom Line: Infor ASE can energize your asset performance while supporting your environmental stewardship Track energy consumption details for individual assets, Facilitate asset life extension, Reduce energy consumption 20% + energy savings for monitored assets, Determine the financial impact of energy and natural resource consumption, Perform preventative maintenance and alerting based on equipment status and energy efficiency, Identify the most energy-efficient OEM products and equipment and evaluate them against current operating asset infrastructure, and Manage your environmental impact Theorem Theorem If If you you can can reduce reduce CO CO 2 via 2 via reducing reducing energy energy consumption, consumption, and and If If you you can can reduce reduce energy energy consumption consumption via via asset asset management, management, then then You You can can reduce reduce CO CO 2 via 2 via asset asset management, management, and and You You can can reduce reduce the the energy energy management management operating operating costs costs Rod Ellsworth; VP Global Asset Sustainability Rod Ellsworth; VP Global Asset Sustainability 21 Copyright 2008 Infor. All rights reserved.

22 Thank You For more information on Asset Sustainability Contact Bas Beemsterboer Tel: Copyright 2008 Infor. All rights reserved.

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