ARC's Bob Mick Asset Performance Management Presentation @ ARC Industry Forum 2010 in Orlando, FL. Aligning IT Strategies with Asset Performance Management How do I Start Improving AIM? You Can Start Small – Build Artifacts for the Long Term 􀂍 What asset performance do I want to impact? 􀂍 How do I determine that performance? 􀂍 What roles influence that performance? 􀂍 What processes are involved? 􀂍 What information needed? Share Information may be used in is 􀂍 What info is shared? • Where does it come from? Local Processes as well as Cross- Functional Processes • Who owns it (create, transform, change …)? 􀂍 What is required to manage quality? 􀂍 How can technology help? Performance Specific Metrics, Roles and Processes Are a Great Place to Start

1. li i i i hli i i i hAligning IT Strategies with
Asset Performance Management
Aligning IT Strategies with
Asset Performance Managementgg
Bob Mick
VP Emerging Technology
dARC Advisory Group
bmick@arcweb.com

2. APM Context for IT InitiativesAPM Context for IT Initiatives
ALM Strategies
Key IT Trends for APMKey IT Trends for APM
Continuing Role of ALM Applications
2
© ARC Advisory Group

3. ARC Top Level Model for ALM and AIM
Processes & Information Drive IT Strategy
ARC Top Level Model for ALM and AIM
Processes & Information Drive IT Strategy
P R O C E S S E S
Y
HandoverProject
Performance
Management
Asset
Performance
Management
OPLE
NOLOGY
BUDGET
g
(Design & Build)
Management
(Operate & Maintain)
ROA
PEO
TECHN
Modification
Requests
Funded
Projects
New
Asset &
Project
Portfolio
Facility
Requests
BENEFITS
Management
(Evaluate & Select)Asset Information
Management
For APM
3
© ARC Advisory Group
I N F O R M A T I O N
For APM

4. ARC’s ALM Is Based on Structured Models
Critical to get the Top Level Right for Top Down
ARC’s ALM Is Based on Structured Models
Critical to get the Top Level Right for Top Down
Level 1
Level 2
Level 3Level 3
4
© ARC Advisory Group

5. Aligning IT Strategies with APMAligning IT Strategies with APM

6. Not Everyone Wants Big ALM
IT Strategy Must Align with Business Commitment to ALM
Not Everyone Wants Big ALM
IT Strategy Must Align with Business Commitment to ALM
Level Business Commitment Action
Asset Management is part Holistic ALM initiatives
Optimize of the way we think
about our business
Broad view of “assets”
Formal ALIM IT Strategy
Preemptive
Big asset investments are
imminent!
Want to get it right
Focus on ALM
Formalize cross-functional
needs and processes
ALM
Information
Management
(ALIM)
Project
Information
Management
(PIM)
Asset & Project
Portfolio Info
Management
(APPIM)
Asset
Information
Management
(AIM)
Want to get it right
Formal AIM IT Strategy
Improvement
Asset Reliability and
Performance are low
Some costs are too high
Asset performance focus
Focus on APM
Define metrics, identify and
improve related roles,
processes and information
C ll b ti (M lti D t)
LMValue
ROA
Service
Providers
Operations &
Maintenance
Managers
Operators &
Maintenance
Technicians
Corporate &
Operations IT
MRO
Purchasing
Project
Management
MRO Material
Suppliers
AIM
Performance
Maintain
Performance
Operate
Performance
Asset performance focus
Collaborative (Multi-Dept)
Maintain
Current asset practices fit
my business model
Asset Info Quality is OK
Maintenance focused
Department driven
improvements
ROI based investments
Strategic Applications
AL
Capital Costs (CAPEX) Net Income
÷
OPEXRevenue
Applications!
Equipment
& Systems
Suppliers
g pp
Clueless Asset Management? New CFO
Capital Costs (CAPEX) Net Income
ROI
6
© ARC Advisory Group
Business Situation & Perception Drive AIM Investment

7. How do I Start Improving AIM?
You Can Start Small – Build Artifacts for the Long Term
How do I Start Improving AIM?
You Can Start Small – Build Artifacts for the Long Term
What asset performance do I want to impact?
How do I determine that performance?
What roles influence that performance?
What processes are involved?
What information is needed?
Share Information
may be used in
What information is needed?
What info is shared?
• Where does it come from?
Local Processes
as well as Cross-
Functional Processes
• Who owns it (create, transform, change …)?
What is required to manage quality?
How can technology help?How can technology help?
Performance Specific Metrics, Roles and Processes
7
© ARC Advisory Group
Are a Great Place to Start

8. APM Process Refinement - Identify Roles
Processes & Information are Linked by Roles
APM Process Refinement - Identify Roles
Processes & Information are Linked by Roles
Operations &
Maintenance
Managers
Operators &
Maintenance
Technicians
Corporate &
Technicians
p
Operations IT
Identify
Roles
(Examples)
Refine These
APM Processes
Service
Providers
MRO Material
Suppliers
AIM
Performance
(Examples)
MRO
Project
Management
Maintain
Performance
Operate
Performance
ROA
Purchasing
Management
8
© ARC Advisory Group
Equipment
& Systems
Suppliers

9. Key IT Trends For ALMKey IT Trends For ALM

10. Technology Trends Leading to Easier AIM
In Support of Next Generation Enterprise Solutions
Technology Trends Leading to Easier AIM
In Support of Next Generation Enterprise Solutions
Technology Trend Clarification
Collaborative Platforms
Evolution of Technology Platforms.
Collaborative Tools & Environments
Role-based User
Environments
Workflow, Information, Tools, and Security
Optimized for Roles
Modern Browser-based
User Interfaces
AJAX, RESTful, Silverlight … for higher
productivity in a Browser
Management of shared information
Master Data
Management Practices
Management of shared information
Common Practices
Improve information quality
Pervasive Intelligence
and Analytics
Embedded in more role-based environments
and applicationsy
SOA-Based Solutions
Common Technology Approach
More flexible
10
© ARC Advisory Group
AIM Strategies Can Build on Other IT Initiatives

11. Asset Information is Complex
Asset Info Ranges from Paper Drawings to Operating Data
Asset Information is Complex
Asset Info Ranges from Paper Drawings to Operating Data
Document
Formats
• Paper
Data
Formats
• Proprietary
Organized By
“List” or “Object”
Organized by
Documents
Files Database
“Drawings”
P&ID
Installation
Electrical
Piping
• Paper
• Image
• DWG, …
• XML
• Std XML
• …
Proprietary
• RDB
• Object DB
• XML
• Std XML
• …
“Data”
Instrument Lists
Equipment lists
Bill of Materials
Asset (Object)
Attribute Value Note
ID P-300-27
Type CPump
DFlow 200 CFM
PR-MAX 3.5
Material Ni-222 Internal
P-300-27
D-300-2003
Piping
…
Virtual Views
Bill of Materials
Assemblies
Sub-Assemblies
Standards
Performance
History
…
Virtual Models
Asset (Object)
Attribute Value Note
ID P-300-27
C
Virtual Models
Meta Data
P-300-27
Type CPump
DFlow 200 CFM
PR-MAX 3.5
Material Ni-222 Internal
“Documents”
Manuals
Operating Procedures
Maintenance Procedures
…
11
© ARC Advisory Group
Formal Structures
Information Complexity Precludes Simple ALM Solutions

12. Master Data Management is Evolving
MDM Addresses Many AIM Quality & Cost Problems
Master Data Management is Evolving
MDM Addresses Many AIM Quality & Cost Problems
Quality Issues Explanation
Category Cost
Avoidance
Effort Taken to prevent
or minimize impact
Redundant systems, paper
Q y p
Outdated and
Wrong Values
Information is obsolete or
entered incorrectly
Incomplete
Definitions
Missing Information
A bi
No units inconsistent Redundant systems, paper
backups …
Mitigation
Reentry of Information,
redesign, rework,
verifying information …
Ambiguous
Information
No units, inconsistent
units, unrecognizable
abbreviations
Inconsistent
Formats
File formats, multiple
proprietary formats or
schemas
Inconsistent
Same labels different
Delay
Late projects, late
startups, increased
downtime, lost customers
Inconsistent
Semantics
meaning - different labels,
same meaning
Different National
Languages
English, French, Spanish,
Chinese, …, units, dates, …
Redundant Items
Same or similar items
defined in multiple places
The high cost of poor quality asset
information has been well
U MDM P O
MDM Practices and Tools
Address Common Quality Issues
information has been well
documented by NIST
12
© ARC Advisory Group
Use MDM Processes On
Shared and Reused Asset Information

13. Trends In BI & Analytics
Align with Challenges of APM
Trends In BI & Analytics
Align with Challenges of APM
Metric Examples
Step Technologies
Method Intelligence
Equipment
Performance
OEE, Quality,
Throughput, Reliability
Financial &
Schedule
NPV/ROI,
CAPEX/Schedule,
/O
Instrument
ALM Processes
BPM, Workflow and
Domain Applications
Collect
Performance
Information
Integration and Manual
Processes Schedule
Revenue/OPEX
Health & Safety
OSHA & Similar
Regulations
Environment
EPA & Local
G t R l ti
Information
Organize and
Structure
Information
BI Technologies,
Possibly Portals
Government Regulations
Sustainability
Energy Use,
Carbon Footprint,
Capabilities/Training
Develop KPIs
and Make
Visible
MI and BI Technologies
with Portals
Find Inefficient
and Highly
Used processes
BI and Process-oriented
MI Technologies
Asset Information Drives
Business Performance
Used p ocesses
Use Intelligence and Analytics
to Instrument and Improve
APM Processes
13
© ARC Advisory Group
To Optimize Business Processes
We Must Apply Analytics … Analyze, Share, Collaborate

14. Generic Platforms are Not Enough
AIM Requires Domain Specific Frameworks, Components …
Generic Platforms are Not Enough
AIM Requires Domain Specific Frameworks, Components …
Function Description
Information
Management
Independent storage of information to enable filling application gaps.
Support both centralized and federated strategies. Parses AIM content
in support of asset information structure, asset objects, categories and
relationships Supports change management and versioning
Technology Trend
Collaborative Platforms
Role-based User
relationships. Supports change management and versioning.
Information
Loading
Supports loading, validating, transforming and categorizing asset
information from applications and legacy formats.
Standardization
Supports industry standards for structuring and exchanging asset
information.
Integration
Includes tools for integration to common applications containing asset
information, with prebuilt integrations for Engineering, Maintenance
and EAM applicationsRole based User
Environments
Modern Browser-based
User Interfaces
Master Data
and EAM applications.
Information
Quality
Supports data quality strategies, including validation and quality checks
at critical points in information flows. Aligns with corporate Data Quality
and MDM programs.
Information
Sharing
Provides common asset information services directly usable by
workflow, visualization, analytics and other similar elements. Provides
information in common formats.
R l b d ith t l i t f AIM l I l dMaster Data
Management Practices
Pervasive Intelligence
and Analytics
SOA Based Products
User Interface
Role-based with tools appropriate for AIM players. Includes
visualization of AIM content and collaborative workflow. Integrates with
popular enterprise portal frameworks.
Terms and
Concepts
Language of AIM should be built into solutions to be effective for AIM
players: Engineering, Operations, Maintenance, etc.
Collaboration
Provides an environment and workflows for collaborations in all ALM
domains. Includes capability to create and exchange packages,
markups, comments, as-built, etc.SOA-Based Products markups, comments, as built, etc.
Projects
Includes specific capabilities for associating asset information with
engineering projects. For example, includes as-built concepts and
handling of multiple concurrent projects.
Workflow Includes AIM specific workflows. Can be configured by AIM players.
Analytics
Provides metrics on workflows and content changes. Easily integrates
with common enterprise analytics software.
14
© ARC Advisory Group
APM Domain Applications Can Make It Easier

15. Technology Evolution Makes APM Easier
And Aligns with Enterprise Application Roadmaps
Technology Evolution Makes APM Easier
And Aligns with Enterprise Application Roadmaps
AIM Platform Enhancements
• Asset Information types and formats
• AIM Visualization components
• Aggregation and federated info access
AIM Processes
• AIM Data Model Management
• AIM Content Loading & Linking
• AIM Quality & Change Management Aggregation and federated info access
• Support projects, as-built, asset objects
• Data quality tools for AIM
• etc.
AIM Quality & Change Management
• AIM Role-based User Access Management
• ALM Collaboration Management
O&M
Applications
15
© ARC Advisory Group
Collaborative Platform
(IBM, Microsoft, SAP, Oracle, …)

16. Summary
AIM Offers Difficult Challenges and Help Is on the Way
Summary
AIM Offers Difficult Challenges and Help Is on the Way
Asset Information is Complex
C t d i St i lti l l
P R O C E S S E S
Y
HandoverProject
Performance
Management
Asset
Performance
Management
• Created in Stages in multiple places
• Arrives in large quantities, all at once
• Widely shared and transformed I N F O R M A T I O N
PEOPLE
TECHNOLOG
Modification
RequestsFunded
Projects
New
Facility
Requests
BUDGET
(Design & Build) (Operate & Maintain)
ROA
BENEFITS
Asset &
Project
Portfolio
Management
(Evaluate & Select)
Enterprise IT Trends
• Align with AIM
• Need ALM Applications
Level Business Commitment Action
Optimize
Asset Management is part
of the way we think
about our business
Holistic ALM initiatives
Broad view of “assets”
Formal ALIM IT Strategy
Big asset investments are
Focus on ALM
Formalize cross functional
ALM
Information
Management
(ALIM)
Project
Information
Management
(PIM)
Asset & Project
Portfolio Info
Management
(APPIM)
Asset
Information
Management
(AIM)
• Need ALM Applications
ALM Value
• Builds with Program Maturity
Preemptive
g
imminent!
Want to get it right
Formalize cross-functional
needs and processes
Formal AIM IT Strategy
Improvement
Asset Reliability and
Performance are low
Some costs are too high
Asset performance focus
Focus on APM
Define metrics, identify and
improve related roles,
processes and information
Collaborative (Multi-Dept)
Maintain
Current asset practices fit
my business model
Asset Info Quality is OK
Maintenance focused
Department driven
improvements
ROI based investments
Strategic Applications
ALMValue
(APPIM)
Capital Costs (CAPEX) Net Income
ROI
÷
OPEXRevenue
Applications!
ROA
Service
Providers
Operations &
Maintenance
Managers
Operators &
Maintenance
Technicians
Corporate &
Operations IT
MRO
Purchasing
Equipment
& Systems
Suppliers
Project
Management
MRO Material
Suppliers
AIM
Performance
Maintain
Performance
Operate
Performance
Define an AIM IT Strategy
Clueless Asset Management? New CFO
16
© ARC Advisory Group
gy
Consistent with Your Business Situation

17. Thank You.Thank You.
For more information, contact bmick@arcweb.com
or visit www.arcweb.com

18. Enterprise-wide APM
Productive Assets are More Than Equipment
Enterprise-wide APM
Productive Assets are More Than Equipment
Primary Internal
HumanPhysical
Facilities
Equipment
Remote
Operators & Admin
Maint Techs & Engrs
Plant & Process Engr
External
Corporate COE’s
Equip Suppliers
Service Providers
Support
IT HW/SW
Mobile
MRO Material
Virtual
R f D t
MRO Material
A ti it R dReference Data
Functional
Design
Procedural
Activity Records
Commercial
Status
History
18
© ARC Advisory Group
Each Asset Class is Important and Valuable …
Asset Managers Are Responsible for All !

19. Asset Performance Management (APM)
Make APM an Enterprise Program
Asset Performance Management (APM)
Make APM an Enterprise Program
Leveraging APM programs across multiple sites in an
enterprise brings additional benefits:
A source of good complete Benchmarking data• A source of good, complete Benchmarking data
• A platform for testing/evaluating different strategies
• A means to share costly parts/tools and unique expertise
• A way to leverage lessons learned across the organization
Implementing an Enterprise APM program requires
interoperability to extend across sites at the tactical and
strategic levels:
• Common Asset Management Practices
• Common and/or shared solutions (tactical & strategic)
• Common data models and enterprise naming conventions
19
© ARC Advisory Group

20. A Model for ALM Information Management
A Blend of ALM Process and Corporate Strategies
A Model for ALM Information Management
A Blend of ALM Process and Corporate Strategies
ALM
Information
Project
Information
Management
Asset
Information
M tManagement
(ALIM)
Management
(PIM)
Management
(AIM)
Asset & ProjectAsset & Project
Portfolio Info
Management
(APPIM)
20
© ARC Advisory Group
ALIM Improves ALM Performance Through Better Handover
Processes and More Efficient Information Exchanges!