Lifecycle Extension & Migrations We Give You Notice and We Give You Options

Lifecycle Extension & Migrations We Give You Notice and We Give You Options Lonnie Morris & Scott Anthony Automation Fair November 2012

Agenda Defining Automation Obsolescence & Lifecycle Planning Justification Packaging Machinery Example Risk Identification Awareness Tools Risk Mitigation Lifecycle Extension Risk Elimination - Migrations 2

Automation Obsolescence Risk What is it? The risk automation users take (knowingly or unknowingly) by using products which are no longer available for sale and have limited to no serviceability remaining. The goal is simple Maintain awareness of obsolescence and develop a strategy to mitigate and ultimately eliminate this risk. 3

Rockwell Automation Product Lifecycle Status Three Stages of Product Life Many years Goal: 12-24 months Service Only Active Silver Discontinued In-stock Current product Full support Supported Low inventory Last Time Buy Well-defined migration Not available new No guarantees of service 4

What Suppliers Want You To Know The following product families are no longer produced: Family 1336 (PlusII, Impact, etc.) 1395/1397 DC 1398 Ultra 100/200 1557 MV Drives / Automax PanelView e Reliance GV3000(bookshelf) Reliance FlexPak3000 Reliance SP600 1305 AC Discontinued October 2010 March 2010 October 2010 Sept 2003 March 2009 July 2010 July 2010 July 2010 October 2011 The following product families are in mature phases with some products in Silver or beyond: 1771 I/O 50% of platform 1326AB servo motors 1394 motion products 1785 controllers 95% of platform PanelView Standard Reliance GV3000(non-bookshelf), MD60, MD65, DC2, DC3, FlexPak Plus, Minpak Plus, SP 500 A number of popular Rockwell Automation products are no longer produced or nearing the end of their production life Copyright 2011 Rockwell Automation, Inc. All rights reserved. 5

The Legacy Products Challenge Maintenance costs can approach or exceed the original purchase price Regulatory restrictions Hazardous substances (e.g. RoHS) Safety advancements Subject matter experts attrition Supply chain becomes fragile Technology shifts Diminishing demand Supplier mergers/failures 6

Do you have a lifecycle plan? In a study of process automation users, ARC Advisory Group identified that 88% of these users confirmed the use of automation beyond the manufacturer s obsolescence date. In this same study, a clear majority of users acknowledge having NO lifecycle plan. As a manufacturer today, you are being driven to leverage your automation investment in order to create an architecture for continuous optimization. Industrial Drivers for Migration Increasing global competition Rising maintenance & parts costs Emerging technology & demand for innovation Information Security Safer Technology Convergence of control disciplines Business Goals Improving Manufacturing performance Data availability Production flexibility & quality Reducing downtime & maintenance costs Regulatory Compliance Gaining competitive advantage The Right Supplier Proactive lifecycle plans & communications Trusted global leader Product longevity Flexible migration options for risk mitigation Global solutions and services 7

What if the issues that plague you How do I better quantify obsolescence risk to my plant management? I want to migrate on MY What options do I have to timeline. reduce my risk? How can I identify what I must keep my equipment running! products are obsolete in my plant? To address product end-of-life without negatively impacting productivity, you need to rely on forward-looking suppliers who prepare for the demands of tomorrow, without compromising your ability to meet the requirements of today. 8

could give way to tangible benefits? Optimal equipment utilization and long lifecycles Lower operation and maintenance Competitive advantage and costs global presence Compliance with industry regulations Data accessibility and security Innovative technologies Production flexibility Rockwell Automation can help you to identify, mitigate, and ultimately eliminate obsolescence risks, while providing a bridge to current technology. 9

Justification The Tangible Benefits 10

Price vs Functionality Curves Cost High Offering Middle Offering Low Offering High Offering Middle Offering Low Offering Functionality

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 12

Quantifying Obsolescence Risk Identify Lifecycle Prioritize Research Accurately quantifying obsolescence risks is an evolving process that must be repeated as products progress through their lifecycle 13

Product Longevity and Lifecycle Communication At Rockwell Automation, we give you notice, and we give you options. 16

Step 3 - Prioritize Prioritize 18

Rockwell Automation Methodology

Rockwell Automation Solution Installed Base Evaluation (IBE) with Lifecycle Analysis: Site-delivered assessment that provides actionable intelligence to help you make data-driven decisions regarding your installed base of automation equipment assets. Assessment Features & Benefits Identification of plant-wide automation lifecycle status Identification of top migration priorities MRO assessment & spares optimization Panel condition reporting Additional assessment options available Assessment includes: Executive summary Red-Yellow-Green lifecycle coding MTBF stocking analysis Grounding, environmental & ventilation inspection reporting Full reporting May include Safety, Arc Flash, Network or Software Assessments 20

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 21

Obsolescence Risk Mitigation Mitigating risk of irreplaceable, obsolete equipment requires a renewed level of attention...intensive-care Support 8143 1. Preventive Maintenance Critical Actions 2. Access to Legacy Technical Support 3. Spare Replacement & Legacy Repair Support 4. On-Going Management of Obsolescence Status Copyright 2011 Rockwell Automation, Inc. All rights reserved.

A Bridge to New Technology & Repairs 1Parts Support 2Remote Site Services 3On Reserved Repair Remote Support Discontinued Product On Site Services Discontinued Product A single, comprehensive agreement created to maximize the life of your automation investment and minimize downtime events 28

Rockwell Automation Solution Lifecycle Extension Agreement: designed to minimize the risk of operating discontinued Rockwell Automation hardware as you migrate to newer technology! What we offer you: Reserved Repairs Remote Support On-site Support...for discontinued product Annual installed base report updates Migration Planning Support! What you get: minimization of Downtime events Added time for capital expenditure planning On going awareness of Lifecycle changes to plant floor automation Time to implement your migration strategy! (Confidential For Internal Use Only) Copyright 2011 Rockwell Automation, Inc. All rights reserved. 29

Obsolescence Risk Elimination Managed Migration Installed (Legacy) Control System New (Rockwell) 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 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

Rockwell Automation Solutions Migration planning & execution options to meet all needs 32

Redefining StepForward: Phased Migration and an Extensive Migrations Toolkit StepForward s broad range of conversion enablers including the discount/incentive program you re used to allows for a proactive approach to upgrading automation systems over time, at a pace that accounts for customers unique applications and budgets. (Confidential For Internal Copyright Use Only) Copyright 2012 Rockwell 2012 Automation, Rockwell Automation, Inc. All rights Inc. All reserved. rights reserved. L

StepForward Tools and Enablers - Sample Control System Migration StepForward tools and enablers help you proactively plan and execute system migrations!* 34

I/O Wiring Conversion System An I/O Conversion System consists of 3 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 35

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. 37

Where to go for help For additional Migration information, visit us at: http://www.rockwellautomation.com/solutions/migration Check back often, as our content will be updated frequently! Migration Solutions Brochure Publication MIGRAT-BR002-EN-P 38

More Information at Automation Fair 2012 Booth 1123: Solutions and Services Booth 1135: Process Solutions W07: Process: Migration Strategies and Tools for Aging Distributed Control Systems Room: 103B Time: 12:30 PM, Wednesday & Thursday Presenter: Mike Vernak T10 - T15: Lifecycle Support & Migrations Management Track Room: 202A Time: 9:00 AM 3:00 PM, Wednesday & Thursday Presenter: Various

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