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By ARC Advisory Group
ARC WHITE PAPER
JANUARY 2012
Asset Information and Analytics:
Drivers of Process Industry Operational Excellence
Executive Overview ......................................................................2
Process Industries Still Need Operational Excellence to Win ...............3
Asset Performance Management is Essential for OpX ........................5
Asset Information Management Enables APM Excellence ...................6
AIM Challenges and Goals .............................................................8
Building an AIM Solution for Operational Excellence........................ 10
Rolta OneView™ Helps Companies Overcome Key AIM Hurdles ........ 16
VISION, EXPERIENCE, ANSWERS FOR INDUSTRY
ARC White Paper • January 2011
2 • Copyright © ARC Advisory Group • ARCweb.com
Operational excellence (OpX) is
fundamental for success in the
process industries and asset
performance management plays a
central role in every OpX
program.
This report reviews how poor
asset information is constraining
asset performance and what
organizations can do to overcome
these problems and significantly
improve their asset performance.
Executive Overview
Operational excellence (OpX) is fundamental for success in the process in-
dustries. Every leading company has an OpX program and most include a
broad set of financial, safety, environmental, product and
customer satisfaction goals. But many of these are by-
products of how well the organization manages their
enormous investments in high volume, heavily-
automated plants. So, asset performance management
plays a central role in every OpX program.
Recent studies conducted by ARC Advisory Group have
identified poor Asset Information Management (AIM) as
the root cause of many asset performance problems, such
as poor asset utilization, low maintenance efficiency, high
maintenance, repair, and operations (MRO) costs, and
others. ARC estimates the financial costs of poor AIM for
a typical asset-intensive organization to be 1.5 percent of
sales revenues – a staggering burden for any company today. Poor AIM
also increases the risk of safety, health, and environmental incidents, which
can jeopardize an enterprise’s very survival.
AIM problems take many forms, but there are two root causes for this situa-
tion - poor information quality and poor information usability. Poor
quality leads to inefficiencies and errors. Poor usability adds to these prob-
lems and limits the ability of managers to avoid problems, identify the root
causes for poor performance, and improve their facilities and business pro-
cesses. Both prevent companies from implementing emerging,
collaborative problem solving strategies that can drive better asset perfor-
mance.
While the opportunity for improvement is incredible, many organizations
continue to suffer the pains of poor AIM. Some do not recognize the oppor-
tunity. Others understand that they have problems, but do not know how
to solve them or cannot justify the required investments. This report is in-
tended to help them overcome all of these issues and launch an effective
AIM improvement program. We also describe how Rolta’s OneView™ En-
terprise Suite can help organizations overcome some of the key hurdles that
they will encounter in their AIM journey.
ARC White Paper • January 2011
Copyright © ARC Advisory Group • ARCweb.com • 3
Business has become more
challenging today and every
business needs to become more
vigilant and agile to survive.
For the process industries, the
critical factors of competition
remain the same and excellence
remains the key to long term
business success. But the bar for
excellence has risen and
companies need to find even
more ways to improve their
performance if they want to
survive and thrive.
Process Industries Still Need
Operational Excellence to Win
Business has clearly become more challenging. Today’s competitive land-
scape is more complex, with more competitors, more products, global
supply chains, shorter product lifecycles, fluctuating material costs, and
better educated, more discerning customers. Connectivi-
ty has made the world more dynamic, as it enables
customers to quickly share every bad experience with a
company and competitors to respond faster to every
change in product and corporate strategy. Political up-
heaval, environmental catastrophes and financial
defaults have added uncertainty to every business deci-
sion and increased the risk of every capital investment.
But what is the real impact of this on business strategy?
Certainly, every business needs to become more vigilant
and agile to survive. For some industries, like publishing
and retail, the basic factors of competition have also
changed and survival requires completely new business
models. But, for most industries, the critical factors of
competition remain the same and excellence remains the
key to long term business success. So, this simply means that the bar for
excellence has risen and companies need to find even more ways to im-
prove their performance if they want to be the best.
Operational Excellence is Key for Process Industries
Excellent companies do everything well and surpass competitors in the fac-
tors of most importance to their customers. For example, electronics
manufacturers like Apple have to provide good service and maintain good
relationships with supply chain partners, but the ultimate determinant of
their stellar success has been excellence in designing products that people
really want. While this formula for success is the same for all industries,
the critical factors vary. In retail, Walmart dominates because of their sup-
ply chain excellence. In automotive, Toyota has used quality and
manufacturing efficiency to become the world’s leading automaker.
Operational excellence (OpX) is the path to market leadership in process
industries, like oil and gas, metals, bulk chemicals, and power generation.
ARC White Paper • January 2011
4 • Copyright © ARC Advisory Group • ARCweb.com
Companies in these industries produce indistinguishable products and de-
liver them in bulk, often with large, long term contracts, so consistent
quality and low costs have become the key competitive factors. And to lead
the market an organization has to have tight control over the quality and
cost of every factor of production, including people, materials, energy, and
logistics.
Not surprisingly, production is the central focus for most process industry
organizations. This includes all of the activities related to the use and care
of production facilities as well as the management of materials and the lo-
gistics involved in acquiring raw materials and distributing the facility’s
output. And, many people naturally think of OpX as a program focused
solely on optimizing this central activity and achieving the best possible
production metrics like throughput, unit cost, quality, safety, etc. While
achieving these goals is obviously important, this limited view can restrict
organizational performance.
Scope for OpX in Process Industries
Process industry organizations have various support departments like
product/process R&D, Plant design & build, sales & marketing, finance &
accounting and general administration that place significant constraints on
production activities. For example, a Product/Process Engineering group
might dictate the use of a certain process that is inefficient or creates bottle-
necks that limit output, adds costs, etc. The same is true with Plant Design
& Build groups. They can make poor design decisions, select unreliable
equipment that constrains performance, or have budget and schedule over-
runs that make it impossible to ever generate acceptable ROA. Including
these groups in the OpX program makes it easier to recognize problems
and rapidly resolve them. This also enables use of broad, shared metrics,
like ROA, TQM, and Balanced Scorecards as the basis for OpX and ensures
that everyone feels a direct responsibility for performance.
ARC White Paper • January 2011
Copyright © ARC Advisory Group • ARCweb.com • 5
Asset Performance Management is
Essential for OpX
Process industries are also noteworthy for their extensive investments in
high volume, heavily-automated plants. These industries offer tremendous
economies of scale and optimizing the use and care of these facilities is crit-
ical. The ability to efficiently design and build new plants in areas that
offer logistics and market advantage can
be another competitive advantage. To
achieve these goals, every process indus-
try organization needs a good Asset
Lifecycle Management (ALM) program
like the one illustrated in the sidebar.
Most companies recognize the im-
portance of ALM, but many have an
overly restricted view of what this
means. Some see ALM as simply the
management of equipment reliability,
and forget that asset performance also
depends upon how well the asset is utilized when it is available. Both of
these concepts are included in the single ALM process that we call Asset
Performance Management (APM). But, even those that include operations
are still forgetting that projects play a major, recurring role in the lifecycle
of every industrial facility and that the selection and timing of these pro-
jects is essential to controlling investment costs and exploiting limited
windows of market opportunities. Some organizations also have an overly
restricted view of their assets. They forget that their facilities can only op-
erate well when they are staffed with knowledgeable, well-trained people
and that these people need good asset information to do their work effi-
ciently and effectively. So, both of these “hidden assets” need to be
considered in an ALM program if the goal is asset performance.
ALM is so important for process industries that it can be reasonably argued
that ALM, or APM, is the model for OpX that companies need to adopt if
they hope to become an industry leader. Organizations may have OpX
goals that go beyond the facilities, like those related to products, customers
and shareholders, but performance in these areas is often a byproduct of
how well the organization manages their assets. For example, ensuring a
consistent flow of products with consistent quality and low cost is often
ARC Model for Asset Lifecycle Management
ARC White Paper • January 2011
6 • Copyright © ARC Advisory Group • ARCweb.com
enough to satisfy customers and ensure an ongoing revenue stream that
make shareholders happy. Operating pants safely, with minimal environ-
mental impact, is likewise the key to satisfying other constituents, like
regulators.
Whether or not you accept ALM/APM as OpX, there should be little doubt
that ALM/APM performance has a direct impact on OpX performance.
Anything you can do to improve ALM/APM performance will therefore
have a direct impact on your long term success in the process industries.
Information is a Key Factor in ALM/APM Performance
Management researchers and consultants generally agree that the perfor-
mance of any business activity is jointly determined by the mix of people
(which includes organization and culture), processes and technology that is
applied. Furthermore, an organization can im-
prove performance by making changes to any of
these factors, within certain limits and con-
straints.
ARC’s research indicates that information (asset
information in this particular case) is another,
equally important performance factor. We have
also found that these factors are all interrelated
and have a natural precedence that must be re-
spected as you consider ways to improve
performance. This precedence goes from the
top to the bottom of the performance pyramid as
improvement plans are developed and bottom to top during implementa-
tion, as capabilities at each level rely upon the presence of those below. So,
good asset information is the foundation for ALM/APM performance and
efforts to improve performance need to begin with better AIM.
Asset Information Management Enables
APM Excellence
Investments in IT can be hard to justify and this is true for AIM as well. A
major challenge in the case of AIM lies in the fact that asset information is a
“hidden asset”. It is fundamental to the performance of every person, ac-
tivity, and system in a modern process facility, but no one sees it.
ARC Performance Pyramid
ARC White Paper • January 2011
Copyright © ARC Advisory Group • ARCweb.com • 7
People may complain when asset information is unavailable or inaccurate,
but many have come to expect that and have developed wasteful worka-
rounds to accomplish their work. While this lowers overall performance,
the impact that poor information is having has been buried. Identifying
these problems is essential to enabling real performance improvements.
ARC’s research into this issue indi-
cates that better AIM can improve
the performance of most process
plants, financially and otherwise.
Furthermore, the typical process
plant can reap annual savings equal
to 1.5 percent of its sales revenue.
As the table in the sidebar shows,
this represents a staggering oppor-
tunity for process industries, like
refining and steel production, with
large integrated facilities. The rewards can be just as incredible for large
organizations in process industries with smaller, distributed operations, as
they can implement AIM enterprise-wide. As the savings are annual, even
smaller organizations can benefit by including AIM in their continuous im-
provement programs.
Evaluating the Opportunity
To assess the financial impact of poor AIM on asset performance, organiza-
tions need to consider three different areas – revenues, operating and
maintenance costs (OPEX), and the capital costs of modifications and up-
grades (CAPEX). Poor AIM significantly impacts all three and the effects
are cumulative with respect to overall financial performance.
The opportunity will be different for every organization, according to in-
dustry, scale of operations, existing IT situation, etc. We have done an
analysis of the costs of poor AIM for what we believe to be a typical indus-
trial organization1. The results of that study are summarized in the
following figure and indicate potential savings of 1.5 percent of sales. Our
report on these savings also documents our analysis so that organizations
can use our methodology to make an assessment of their own situation.
1
See ARC Strategy Report - Asset Information Management (AIM): Part I – The
Case for Developing an AIM Strategy, July 2010
Industry
Typical Facility
Revenues (M$)
Annual Cost of
Poor AIM (M$)
Refining 11,855 177.8
Chemical 210 3.2
Power 203 3.1
Steel 3,433 51.5
Mining 28 0.5
What Can 1.5% Savings Mean?
ARC White Paper • January 2011
8 • Copyright © ARC Advisory Group • ARCweb.com
Poor AIM Means Money Down the Drain
Comparison of our estimates with related studies indicates that losses due
to AIM may be even larger than our estimates. This may be due to factors
we did not consider or our use of overly conservative assumptions of the
impacts. In either case, these other studies clearly support the call for im-
mediate action.
AIM Impacts All Asset Performance Metrics
While the above discussion focused on financial benefits, it is important to
recognize that a good AIM strategy can improve asset performance across
all performance metrics including EH&S (environmental, health, & safety)
and sustainability. Too often organizations discount non-financial perfor-
mance benefits in their evaluation of IT opportunities. In the case of AIM, a
good strategy can help the organization avoid significant financial penalties
and other effects that might jeopardize the organization’s reputation and
very survival.
AIM Challenges and Goals
To avoid these losses, organizations need an AIM strategy that ensures eve-
ryone convenient access to all of the information they need to execute all of
their tasks efficiently and effectively.
Developing the right information content is the first challenge. Require-
ments vary but the following figure provides a general checklist of the
kinds of information that a typical organization needs.
Annual Losses:
1.5% of Sales
Increased EH&S Risk
ARC White Paper • January 2011
Copyright © ARC Advisory Group • ARCweb.com • 9
Asset Information Spans Many Information Categories
Ensuring that this information is always complete, accurate, consistent and
timely is the next AIM challenge. Asset information only generates benefits
when people use it in their decision making and this only occurs if they
consider it trustworthy. So, it is mandatory that every AIM program in-
cludes the information management processes and technology to establish
and sustain information quality.
Information benefits also depend upon the usability of the information and
the AIM technology that is deployed. Technically, good usability means
that information is accessible, understandable, actionable, and easily
shared. But usability in the real world is in the eye of the beholder and de-
pends upon the user and the work they are doing.
In the case of AIM, there are many different stakeholders and use cases.
But two define the limits of what is required: AIM for Engineering and AIM
ARC White Paper • January 2011
10 • Copyright © ARC Advisory Group • ARCweb.com
for Operations. Both of these cases use the same asset information, but the
information management challenges and technology are quite different. So,
treating them as separate initiatives is a common approach to building a
complete AIM solution. As AIM for Operations is the use case that aligns
best with APM, it is the focus for our discussion in this paper.
Building an AIM Solution for Operational
Excellence
AIM for Operations enables better APM and OpX in two ways. It increases
the efficiency of everyone involved in the use and care of the facilities. It
enables management to control and improve performance.
Research shows that people
throughout the APM organiza-
tion need information they can
trust to do their work efficient-
ly and effectively. For
example, studies of wrench
time show that a typical
maintenance worker wastes 15
to 20% of their time just look-
ing for information and they
waste additional time correct-
ing errors caused by missing
and inaccurate information.
Obviously this adds cost, but
more importantly it significant-
ly lowers plant availability.
Shutdowns take more time,
scheduled downtimes have to
be longer and breakdowns
cause longer delays. Likewise,
poor information leads to mis-
takes that waste even more
time.
A good AIM for Operations program solves these problems by making sure
that everyone has access to the right information within the context of their
AIM Helps to Resolve Equipment Issues
AIM Helps to Resolve Performance Problems
ARC White Paper • January 2011
Copyright © ARC Advisory Group • ARCweb.com • 11
normal workflows. This includes access from any mobile devices that may
be used.
Latent problems in equipment and business processes can have an even
greater impact on plant performance. Not only do they limit current per-
formance, they lower everyone’s performance expectations and create
unnecessary constraints in the organization’s best practices that limit man-
agement’s ability to improve performance. AIM for Operations helps
organizations overcome these problems by exposing recurrent problems
and bottlenecks and by providing the tools needed to explore alternatives.
Integration and Visibility is the First Step to AIM
The starting point for addressing all these performance challenges is good
asset information. But, unfortunately, many companies skip this basic step
in their rush to build “management dashboards” with lots of cute icons. So
it is not surprising that many of these dashboards have little impact on real
performance management and are quick-
ly abandoned by people who find the
information neither trustworthy nor ap-
propriate for their needs.
A lot of the information that AIM users
need is buried in the many applications
that are used to operate and maintain a
modern process plant. These applications
have user interfaces that enable local
workers to access and enter the infor-
mation they use in executing their daily
tasks. But they offer little access to infor-
mation beyond this, so the potential
benefits of coordinating activities across groups are lost. Constraints on
information access also reduce management’s ability to monitor and expe-
dite work so that delays are averted.
These issues are not new and many companies have taken steps to address
them by building point-to-point integrations between applications. But the-
se integrations are often driven by specific, urgent requests and IT is forced
to solve them with custom code that only exposes the specific information
needed to solve the problem. As the organization sees value in this addi-
tional information, they ask IT to solve another specific problem which
takes more custom code, etc. While these investments may make sense, this
AIM for Operations Information is buried in
Many Software Applications
ARC White Paper • January 2011
12 • Copyright © ARC Advisory Group • ARCweb.com
incremental, shortsighted approach to AIM delays benefits and creates an
IT maintenance nightmare.
The right approach is to appreciate the general value of asset information
and recognize that there are many stakeholders who will use it and multi-
ply the benefits. So every effort to expose
this “hidden” information should also
enable easy access for anyone who wants
to use it.
Choosing the right approach may cost
more in the short run, but it produces
many more benefits that generate a much
better ROI. The right approach enables
performance improvements in every
APM activity by ensuring that everyone
has access to information they need to
work efficiently and coordinate their ef-
forts with everyone else. It also provides
management with better visibility into
everyone’s performance and enables them to implement performance met-
rics and end-to-end business processes that cross departmental boundaries
and drive more collaboration and coordination that will improve perfor-
mance even further.
Of course, this approach is also more challenging. Most organizations cur-
rently lack standard information management practices across their APM
departments and applications. So, different groups have different data
models with different names for the same things, the same names for dif-
ferent things, different units, and even different views of the assets and
business processes. So, alignment of data models is a precursor for integra-
tion. Fortunately, there are data models like S95 and S88 that can help
organizations do this.
Other challenges include implementing the integration in a way that mini-
mizes IT costs and implementing a common platform for building
dashboards and user interfaces so that barriers in people using “foreign”
applications, like CAD systems, are minimized. Again, standard approach-
es are available that leverage methodologies like SOA and standard
information exchange schemas like OpenO&M and ISO15926. Many organ-
izations choose to address these last two challenges by implementing a
AIM Stage I - Enabling Integration & Visibility
ARC White Paper • January 2011
Copyright © ARC Advisory Group • ARCweb.com • 13
single collaborative integration platform, like SAP Netweaver, Oracle Fu-
sion or IBM websphere.
Enabling Analytics is the Second Step to AIM
Many organizations have already taken this first step and may believe that
they have a good AIM solution. But, smart organizations realize that inte-
gration and visibility are necessary, but
not sufficient to achieve APM Excel-
lence. They understand that they also
need to empower people with the in-
formation and tools to identify the root
causes of their problems and explore
ways that they can further improve
their processes.
This is the second stage of AIM for Op-
erations and includes the
implementation of a data warehouse to
manage the valuable history about eve-
rything that has occurred during the
life of the facility and a set of analytic tools to allow analysis of past per-
formance to identify opportunities for improvement.
The benefits of this additional step can be enormous, but like the previous
case, there are also challenges. First, there is the old issue of Data Models
and this next step requires additional effort to develop dimensional data
models that are consistent with standards like S95 and S88. The second
challenge is enabling casual users to leverage the power of analytics.
Standard Analytics packages offer tremendous capabilities, but these tools
also require special skills. Suppliers of Analytics packages have addressed
this problem for business users in areas where the focus is product or sup-
ply chain excellence. But none has yet developed screens for APM
professionals, because OpX is just not a focus for them.
Enterprise-wide AIM is the Final Goal
While AIM Analytics enables OpX across all plant activities, this is still not
the end of the AIM for Operations story. Many process industry enterpris-
es have a global footprint, with multiple plants in different regions and
corporate support functions that drive standardization and improvements
across the organization. So, the final stage of an AIM for Operations so-
AIM Stage II – Enabling Analysis & Continuous
Improvement
ARC White Paper • January 2011
14 • Copyright © ARC Advisory Group • ARCweb.com
lution occurs when organizations
rollout these capabilities across all
of their facilities and integrate
them across the corporation so that
everyone is enabled with integrat-
ed, corporate-wide visibility,
performance management and
analysis.
The benefits of this are two-fold.
First, it enables the organization to
reap the basic plant-level benefits
we just discussed in every plant.
Second, it enables cross-plant
benchmarking and rollout of new
and better practices to all plants to
ensure that every plant is a Best
Plant.
AIM Analytics Supports
All Management Needs
There are many ways that people
add visibility and Analytics capa-
bilities to their information
management systems, but they
have different goals and provide
different capabilities.
Some APM solution providers have added analytics capabilities to their
local user interfaces to help local users improve performance. For example,
a materials management package might include screens for analyzing in-
ventory strategies and supplier performance. Reliability packages likewise
include a lot of analytics capabilities. While this shows that there is signifi-
cant value in analytics for APM, these local approaches have limited impact
because people can only analyze the data locked in those applications.
Many automation and MES software suppliers also offer their clients opera-
tional or manufacturing intelligence solutions. These solutions help people
aggregate information from many sources and develop management dash-
boards. But they do little to share information across applications and they
are generally only used only for real-time performance tracking of KPIs and
Real Enterprises Have Many Plants
AIM Stage III - Enterprise Excellence
ARC White Paper • January 2011
Copyright © ARC Advisory Group • ARCweb.com • 15
alerts. This is helpful and shows the value
of information aggregation for manage-
ment, but offers little support for
understanding the root causes of perfor-
mance problems.
AIM analytics offers the benefits of both of
these approaches. You get the aggrega-
tion you need to manage and you have
the capabilities to develop dashboards
and special screens to suit everyone’s in-
dividual needs.
Standard Analytics packages, like SAP Business Objects and Oracle OBIEE,
offer the same fundamental capabilities, but their focus is different. This
means that they often lack standard connectors for popular APM applica-
tions and end users are left with the task of building custom data models
and interfaces for Operational Excellence.
AIM Analytics Supports All Management Needs
The figure below summarizes the requirements for a good AIM for Opera-
tions solution. Each level of this pyramid adds value and, like the
performance pyramid discussed earlier, a full AIM solution has to be built
from bottom up to ensure a solid foundation for performance improve-
ment. This model also provides a helpful tool for evaluating the AIM
capabilities of different software solutions.
AIM for Operations Requirements
AIM Analytics is more than Operational
Intelligence
ARC White Paper • January 2011
16 • Copyright © ARC Advisory Group • ARCweb.com
Rolta OneView™ Helps Companies
Overcome Key AIM Hurdles
Rolta is one software solution provider that appreciates the need for AIM
for Operations solutions and has the background to provide the right tools
for companies to achieve these capabilities quickly and at minimal cost.
Rolta OneView™ enables operational excellence by providing users with a
pre-built solution for collecting raw data from APM applications, organiz-
ing this into an operations-centric dimensional data model, and generating
industry specific, cross-functional KPIs that provide actionable intelligence,
data drill down and convenient, customizable reporting. OneView™ can
also present plant operations as one fully connected ecosystem spanning
the whole enterprise and enable executives to drive operational and relia-
bility performance improvements through key initiatives like Balanced
Scorecards, Six Sigma, and TQM.
Rolta OneView™ Logical Model
A comparison of Rolta OneView™ with ARC’s model of an effective AIM
for Operations solution shows that Rolta OneView™ satisfies key AIM re-
quirements at every level of the pyramid.
For the bottom layer, Rolta OneView™ provides a set of standard ETL con-
nectors for seamlessly capturing information from a variety of popular
APM applications including enterprise resource planning (ERP) and supply
chain management (SCM); operations management systems such as manu-
ARC White Paper • January 2011
Copyright © ARC Advisory Group • ARCweb.com • 17
facturing execution systems (MES) or collaborative production manage-
ment (CPM) systems; and plant automation systems such as distributed
control systems (DCS) and programmable logic controllers (PLC).
Above this lies a feature rich, information processing environment that can
enrich and manage both real-time data and data destined for analysis in a
historical data warehouse. Information can be analyzed for thresholds and
alerts, cross-functional KPIs can be generated, and information can be
stored in an operations-centric, dimensional data model that supports rapid
retrieval and analysis in the way that managers actually view their opera-
tions.
At the analysis level, Rolta OneView™ provides a full suite of analytics
tools based upon solutions from leading Analytics suppliers like Oracle,
SAP and Microsoft. These tools enable slice-and-dice, basic statistical anal-
ysis and advanced statistical analysis that enable users to quickly explore
data, model relationships and forecast the effect of process changes.
At the top level, Rolta OneView™ provides a complete set of pre-built user
interfaces, which they call Insights, that bring the power of AIM Analytics
to users across the enterprise. Operational Insights spans industry-specific
functional areas in operations such as Production, Maintenance, Reliability,
HSE, Quality, MRO and Supply Chain. Rolta OneView™ also features pre-
built insights for critical areas like Projects and Sustainability.
Rolta OneView™ was designed by domain experts with the mix of func-
tional and industrial experience needed to understand what’s needed to
support the operation and care of modern process plants. Rolta OneView™
is a comprehensive integrated decision support system, built on a best-in-
breed technology platform. The solution set is also scalable and can work
with geospatial systems to further enhance the display of actionable infor-
mation and key performance indicators.
ARC White Paper • January 2011
18 • Copyright © ARC Advisory Group • ARCweb.com
AIM Enables Operational Excellence in Process Industries
Rolta OneView™ Helps Companies Overcome Key AIM Hurdles
ARC White Paper • January 2011
Copyright © ARC Advisory Group • ARCweb.com • 19
Analyst: Sid Snitkin
Editor: Arcot V. Rajabahadur
Acronym Reference: For a complete list of industry acronyms, refer to our
web page at www.arcweb.com/Research/IndustryTerms/
AIM Asset Information Management
ALM Asset Lifecycle Management
APM Asset Performance Management
BOM Bill of Materials
CAPEX Capital Expenditures
CPM Collaborative Production
Management
CRM Customer Relationship
Management
D&B Design & Build
DCS Distributed Control System
EAM Enterprise Asset Management
ERP Enterprise Resource Planning
GIS Geospatial Information Systems
HAZOP Hazard & Operability
IT Information Technology
KPI Key Performance Indicator
MDM Master Data Management
MES Manufacturing Execution
Systems
MI Manufacturing Intelligence
MRO Maintenance, Repair, and
Operations
O&M Operations & Maintenance
OI Operational Intelligence
OPEX Operations Expenditure
OpX Operational Excellence
P&ID Process & Instrumentation
Diagram
PLC Programmable Logic Controller
ROA Return on Assets
SCM Supply Chain Management
QM Quality Management
UI User Interface
Founded in 1986, ARC Advisory Group is the leading research and advisory
firm for industry. Our coverage of technology from business systems to prod-
uct and asset lifecycle management, supply chain management, operations
management, and automation systems makes us the go-to firm for business
and IT executives around the world. For the complex business issues facing
organizations today, our analysts have the industry knowledge and first-hand
experience to help our clients find the best answers.
All information in this report is proprietary to and copyrighted by ARC. No part
of it may be reproduced without prior permission from ARC. This research has
been sponsored in part by Rolta. However, the opinions expressed by ARC in
this paper are based on ARC's independent analysis.
You can take advantage of ARC's extensive ongoing research plus experience
of our staff members through our Advisory Services. ARC’s Advisory Services
are specifically designed for executives responsible for developing strategies
and directions for their organizations. For membership information, please
call, fax, or write to:
ARC Advisory Group, Three Allied Drive, Dedham, MA 02026 USA
Tel: 781-471-1000, Fax: 781-471-1100
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Asset Information and Analytics Drivers of Process Industry Operational Excellence

  • 1. By ARC Advisory Group ARC WHITE PAPER JANUARY 2012 Asset Information and Analytics: Drivers of Process Industry Operational Excellence Executive Overview ......................................................................2 Process Industries Still Need Operational Excellence to Win ...............3 Asset Performance Management is Essential for OpX ........................5 Asset Information Management Enables APM Excellence ...................6 AIM Challenges and Goals .............................................................8 Building an AIM Solution for Operational Excellence........................ 10 Rolta OneView™ Helps Companies Overcome Key AIM Hurdles ........ 16 VISION, EXPERIENCE, ANSWERS FOR INDUSTRY
  • 2. ARC White Paper • January 2011 2 • Copyright © ARC Advisory Group • ARCweb.com Operational excellence (OpX) is fundamental for success in the process industries and asset performance management plays a central role in every OpX program. This report reviews how poor asset information is constraining asset performance and what organizations can do to overcome these problems and significantly improve their asset performance. Executive Overview Operational excellence (OpX) is fundamental for success in the process in- dustries. Every leading company has an OpX program and most include a broad set of financial, safety, environmental, product and customer satisfaction goals. But many of these are by- products of how well the organization manages their enormous investments in high volume, heavily- automated plants. So, asset performance management plays a central role in every OpX program. Recent studies conducted by ARC Advisory Group have identified poor Asset Information Management (AIM) as the root cause of many asset performance problems, such as poor asset utilization, low maintenance efficiency, high maintenance, repair, and operations (MRO) costs, and others. ARC estimates the financial costs of poor AIM for a typical asset-intensive organization to be 1.5 percent of sales revenues – a staggering burden for any company today. Poor AIM also increases the risk of safety, health, and environmental incidents, which can jeopardize an enterprise’s very survival. AIM problems take many forms, but there are two root causes for this situa- tion - poor information quality and poor information usability. Poor quality leads to inefficiencies and errors. Poor usability adds to these prob- lems and limits the ability of managers to avoid problems, identify the root causes for poor performance, and improve their facilities and business pro- cesses. Both prevent companies from implementing emerging, collaborative problem solving strategies that can drive better asset perfor- mance. While the opportunity for improvement is incredible, many organizations continue to suffer the pains of poor AIM. Some do not recognize the oppor- tunity. Others understand that they have problems, but do not know how to solve them or cannot justify the required investments. This report is in- tended to help them overcome all of these issues and launch an effective AIM improvement program. We also describe how Rolta’s OneView™ En- terprise Suite can help organizations overcome some of the key hurdles that they will encounter in their AIM journey.
  • 3. ARC White Paper • January 2011 Copyright © ARC Advisory Group • ARCweb.com • 3 Business has become more challenging today and every business needs to become more vigilant and agile to survive. For the process industries, the critical factors of competition remain the same and excellence remains the key to long term business success. But the bar for excellence has risen and companies need to find even more ways to improve their performance if they want to survive and thrive. Process Industries Still Need Operational Excellence to Win Business has clearly become more challenging. Today’s competitive land- scape is more complex, with more competitors, more products, global supply chains, shorter product lifecycles, fluctuating material costs, and better educated, more discerning customers. Connectivi- ty has made the world more dynamic, as it enables customers to quickly share every bad experience with a company and competitors to respond faster to every change in product and corporate strategy. Political up- heaval, environmental catastrophes and financial defaults have added uncertainty to every business deci- sion and increased the risk of every capital investment. But what is the real impact of this on business strategy? Certainly, every business needs to become more vigilant and agile to survive. For some industries, like publishing and retail, the basic factors of competition have also changed and survival requires completely new business models. But, for most industries, the critical factors of competition remain the same and excellence remains the key to long term business success. So, this simply means that the bar for excellence has risen and companies need to find even more ways to im- prove their performance if they want to be the best. Operational Excellence is Key for Process Industries Excellent companies do everything well and surpass competitors in the fac- tors of most importance to their customers. For example, electronics manufacturers like Apple have to provide good service and maintain good relationships with supply chain partners, but the ultimate determinant of their stellar success has been excellence in designing products that people really want. While this formula for success is the same for all industries, the critical factors vary. In retail, Walmart dominates because of their sup- ply chain excellence. In automotive, Toyota has used quality and manufacturing efficiency to become the world’s leading automaker. Operational excellence (OpX) is the path to market leadership in process industries, like oil and gas, metals, bulk chemicals, and power generation.
  • 4. ARC White Paper • January 2011 4 • Copyright © ARC Advisory Group • ARCweb.com Companies in these industries produce indistinguishable products and de- liver them in bulk, often with large, long term contracts, so consistent quality and low costs have become the key competitive factors. And to lead the market an organization has to have tight control over the quality and cost of every factor of production, including people, materials, energy, and logistics. Not surprisingly, production is the central focus for most process industry organizations. This includes all of the activities related to the use and care of production facilities as well as the management of materials and the lo- gistics involved in acquiring raw materials and distributing the facility’s output. And, many people naturally think of OpX as a program focused solely on optimizing this central activity and achieving the best possible production metrics like throughput, unit cost, quality, safety, etc. While achieving these goals is obviously important, this limited view can restrict organizational performance. Scope for OpX in Process Industries Process industry organizations have various support departments like product/process R&D, Plant design & build, sales & marketing, finance & accounting and general administration that place significant constraints on production activities. For example, a Product/Process Engineering group might dictate the use of a certain process that is inefficient or creates bottle- necks that limit output, adds costs, etc. The same is true with Plant Design & Build groups. They can make poor design decisions, select unreliable equipment that constrains performance, or have budget and schedule over- runs that make it impossible to ever generate acceptable ROA. Including these groups in the OpX program makes it easier to recognize problems and rapidly resolve them. This also enables use of broad, shared metrics, like ROA, TQM, and Balanced Scorecards as the basis for OpX and ensures that everyone feels a direct responsibility for performance.
  • 5. ARC White Paper • January 2011 Copyright © ARC Advisory Group • ARCweb.com • 5 Asset Performance Management is Essential for OpX Process industries are also noteworthy for their extensive investments in high volume, heavily-automated plants. These industries offer tremendous economies of scale and optimizing the use and care of these facilities is crit- ical. The ability to efficiently design and build new plants in areas that offer logistics and market advantage can be another competitive advantage. To achieve these goals, every process indus- try organization needs a good Asset Lifecycle Management (ALM) program like the one illustrated in the sidebar. Most companies recognize the im- portance of ALM, but many have an overly restricted view of what this means. Some see ALM as simply the management of equipment reliability, and forget that asset performance also depends upon how well the asset is utilized when it is available. Both of these concepts are included in the single ALM process that we call Asset Performance Management (APM). But, even those that include operations are still forgetting that projects play a major, recurring role in the lifecycle of every industrial facility and that the selection and timing of these pro- jects is essential to controlling investment costs and exploiting limited windows of market opportunities. Some organizations also have an overly restricted view of their assets. They forget that their facilities can only op- erate well when they are staffed with knowledgeable, well-trained people and that these people need good asset information to do their work effi- ciently and effectively. So, both of these “hidden assets” need to be considered in an ALM program if the goal is asset performance. ALM is so important for process industries that it can be reasonably argued that ALM, or APM, is the model for OpX that companies need to adopt if they hope to become an industry leader. Organizations may have OpX goals that go beyond the facilities, like those related to products, customers and shareholders, but performance in these areas is often a byproduct of how well the organization manages their assets. For example, ensuring a consistent flow of products with consistent quality and low cost is often ARC Model for Asset Lifecycle Management
  • 6. ARC White Paper • January 2011 6 • Copyright © ARC Advisory Group • ARCweb.com enough to satisfy customers and ensure an ongoing revenue stream that make shareholders happy. Operating pants safely, with minimal environ- mental impact, is likewise the key to satisfying other constituents, like regulators. Whether or not you accept ALM/APM as OpX, there should be little doubt that ALM/APM performance has a direct impact on OpX performance. Anything you can do to improve ALM/APM performance will therefore have a direct impact on your long term success in the process industries. Information is a Key Factor in ALM/APM Performance Management researchers and consultants generally agree that the perfor- mance of any business activity is jointly determined by the mix of people (which includes organization and culture), processes and technology that is applied. Furthermore, an organization can im- prove performance by making changes to any of these factors, within certain limits and con- straints. ARC’s research indicates that information (asset information in this particular case) is another, equally important performance factor. We have also found that these factors are all interrelated and have a natural precedence that must be re- spected as you consider ways to improve performance. This precedence goes from the top to the bottom of the performance pyramid as improvement plans are developed and bottom to top during implementa- tion, as capabilities at each level rely upon the presence of those below. So, good asset information is the foundation for ALM/APM performance and efforts to improve performance need to begin with better AIM. Asset Information Management Enables APM Excellence Investments in IT can be hard to justify and this is true for AIM as well. A major challenge in the case of AIM lies in the fact that asset information is a “hidden asset”. It is fundamental to the performance of every person, ac- tivity, and system in a modern process facility, but no one sees it. ARC Performance Pyramid
  • 7. ARC White Paper • January 2011 Copyright © ARC Advisory Group • ARCweb.com • 7 People may complain when asset information is unavailable or inaccurate, but many have come to expect that and have developed wasteful worka- rounds to accomplish their work. While this lowers overall performance, the impact that poor information is having has been buried. Identifying these problems is essential to enabling real performance improvements. ARC’s research into this issue indi- cates that better AIM can improve the performance of most process plants, financially and otherwise. Furthermore, the typical process plant can reap annual savings equal to 1.5 percent of its sales revenue. As the table in the sidebar shows, this represents a staggering oppor- tunity for process industries, like refining and steel production, with large integrated facilities. The rewards can be just as incredible for large organizations in process industries with smaller, distributed operations, as they can implement AIM enterprise-wide. As the savings are annual, even smaller organizations can benefit by including AIM in their continuous im- provement programs. Evaluating the Opportunity To assess the financial impact of poor AIM on asset performance, organiza- tions need to consider three different areas – revenues, operating and maintenance costs (OPEX), and the capital costs of modifications and up- grades (CAPEX). Poor AIM significantly impacts all three and the effects are cumulative with respect to overall financial performance. The opportunity will be different for every organization, according to in- dustry, scale of operations, existing IT situation, etc. We have done an analysis of the costs of poor AIM for what we believe to be a typical indus- trial organization1. The results of that study are summarized in the following figure and indicate potential savings of 1.5 percent of sales. Our report on these savings also documents our analysis so that organizations can use our methodology to make an assessment of their own situation. 1 See ARC Strategy Report - Asset Information Management (AIM): Part I – The Case for Developing an AIM Strategy, July 2010 Industry Typical Facility Revenues (M$) Annual Cost of Poor AIM (M$) Refining 11,855 177.8 Chemical 210 3.2 Power 203 3.1 Steel 3,433 51.5 Mining 28 0.5 What Can 1.5% Savings Mean?
  • 8. ARC White Paper • January 2011 8 • Copyright © ARC Advisory Group • ARCweb.com Poor AIM Means Money Down the Drain Comparison of our estimates with related studies indicates that losses due to AIM may be even larger than our estimates. This may be due to factors we did not consider or our use of overly conservative assumptions of the impacts. In either case, these other studies clearly support the call for im- mediate action. AIM Impacts All Asset Performance Metrics While the above discussion focused on financial benefits, it is important to recognize that a good AIM strategy can improve asset performance across all performance metrics including EH&S (environmental, health, & safety) and sustainability. Too often organizations discount non-financial perfor- mance benefits in their evaluation of IT opportunities. In the case of AIM, a good strategy can help the organization avoid significant financial penalties and other effects that might jeopardize the organization’s reputation and very survival. AIM Challenges and Goals To avoid these losses, organizations need an AIM strategy that ensures eve- ryone convenient access to all of the information they need to execute all of their tasks efficiently and effectively. Developing the right information content is the first challenge. Require- ments vary but the following figure provides a general checklist of the kinds of information that a typical organization needs. Annual Losses: 1.5% of Sales Increased EH&S Risk
  • 9. ARC White Paper • January 2011 Copyright © ARC Advisory Group • ARCweb.com • 9 Asset Information Spans Many Information Categories Ensuring that this information is always complete, accurate, consistent and timely is the next AIM challenge. Asset information only generates benefits when people use it in their decision making and this only occurs if they consider it trustworthy. So, it is mandatory that every AIM program in- cludes the information management processes and technology to establish and sustain information quality. Information benefits also depend upon the usability of the information and the AIM technology that is deployed. Technically, good usability means that information is accessible, understandable, actionable, and easily shared. But usability in the real world is in the eye of the beholder and de- pends upon the user and the work they are doing. In the case of AIM, there are many different stakeholders and use cases. But two define the limits of what is required: AIM for Engineering and AIM
  • 10. ARC White Paper • January 2011 10 • Copyright © ARC Advisory Group • ARCweb.com for Operations. Both of these cases use the same asset information, but the information management challenges and technology are quite different. So, treating them as separate initiatives is a common approach to building a complete AIM solution. As AIM for Operations is the use case that aligns best with APM, it is the focus for our discussion in this paper. Building an AIM Solution for Operational Excellence AIM for Operations enables better APM and OpX in two ways. It increases the efficiency of everyone involved in the use and care of the facilities. It enables management to control and improve performance. Research shows that people throughout the APM organiza- tion need information they can trust to do their work efficient- ly and effectively. For example, studies of wrench time show that a typical maintenance worker wastes 15 to 20% of their time just look- ing for information and they waste additional time correct- ing errors caused by missing and inaccurate information. Obviously this adds cost, but more importantly it significant- ly lowers plant availability. Shutdowns take more time, scheduled downtimes have to be longer and breakdowns cause longer delays. Likewise, poor information leads to mis- takes that waste even more time. A good AIM for Operations program solves these problems by making sure that everyone has access to the right information within the context of their AIM Helps to Resolve Equipment Issues AIM Helps to Resolve Performance Problems
  • 11. ARC White Paper • January 2011 Copyright © ARC Advisory Group • ARCweb.com • 11 normal workflows. This includes access from any mobile devices that may be used. Latent problems in equipment and business processes can have an even greater impact on plant performance. Not only do they limit current per- formance, they lower everyone’s performance expectations and create unnecessary constraints in the organization’s best practices that limit man- agement’s ability to improve performance. AIM for Operations helps organizations overcome these problems by exposing recurrent problems and bottlenecks and by providing the tools needed to explore alternatives. Integration and Visibility is the First Step to AIM The starting point for addressing all these performance challenges is good asset information. But, unfortunately, many companies skip this basic step in their rush to build “management dashboards” with lots of cute icons. So it is not surprising that many of these dashboards have little impact on real performance management and are quick- ly abandoned by people who find the information neither trustworthy nor ap- propriate for their needs. A lot of the information that AIM users need is buried in the many applications that are used to operate and maintain a modern process plant. These applications have user interfaces that enable local workers to access and enter the infor- mation they use in executing their daily tasks. But they offer little access to infor- mation beyond this, so the potential benefits of coordinating activities across groups are lost. Constraints on information access also reduce management’s ability to monitor and expe- dite work so that delays are averted. These issues are not new and many companies have taken steps to address them by building point-to-point integrations between applications. But the- se integrations are often driven by specific, urgent requests and IT is forced to solve them with custom code that only exposes the specific information needed to solve the problem. As the organization sees value in this addi- tional information, they ask IT to solve another specific problem which takes more custom code, etc. While these investments may make sense, this AIM for Operations Information is buried in Many Software Applications
  • 12. ARC White Paper • January 2011 12 • Copyright © ARC Advisory Group • ARCweb.com incremental, shortsighted approach to AIM delays benefits and creates an IT maintenance nightmare. The right approach is to appreciate the general value of asset information and recognize that there are many stakeholders who will use it and multi- ply the benefits. So every effort to expose this “hidden” information should also enable easy access for anyone who wants to use it. Choosing the right approach may cost more in the short run, but it produces many more benefits that generate a much better ROI. The right approach enables performance improvements in every APM activity by ensuring that everyone has access to information they need to work efficiently and coordinate their ef- forts with everyone else. It also provides management with better visibility into everyone’s performance and enables them to implement performance met- rics and end-to-end business processes that cross departmental boundaries and drive more collaboration and coordination that will improve perfor- mance even further. Of course, this approach is also more challenging. Most organizations cur- rently lack standard information management practices across their APM departments and applications. So, different groups have different data models with different names for the same things, the same names for dif- ferent things, different units, and even different views of the assets and business processes. So, alignment of data models is a precursor for integra- tion. Fortunately, there are data models like S95 and S88 that can help organizations do this. Other challenges include implementing the integration in a way that mini- mizes IT costs and implementing a common platform for building dashboards and user interfaces so that barriers in people using “foreign” applications, like CAD systems, are minimized. Again, standard approach- es are available that leverage methodologies like SOA and standard information exchange schemas like OpenO&M and ISO15926. Many organ- izations choose to address these last two challenges by implementing a AIM Stage I - Enabling Integration & Visibility
  • 13. ARC White Paper • January 2011 Copyright © ARC Advisory Group • ARCweb.com • 13 single collaborative integration platform, like SAP Netweaver, Oracle Fu- sion or IBM websphere. Enabling Analytics is the Second Step to AIM Many organizations have already taken this first step and may believe that they have a good AIM solution. But, smart organizations realize that inte- gration and visibility are necessary, but not sufficient to achieve APM Excel- lence. They understand that they also need to empower people with the in- formation and tools to identify the root causes of their problems and explore ways that they can further improve their processes. This is the second stage of AIM for Op- erations and includes the implementation of a data warehouse to manage the valuable history about eve- rything that has occurred during the life of the facility and a set of analytic tools to allow analysis of past per- formance to identify opportunities for improvement. The benefits of this additional step can be enormous, but like the previous case, there are also challenges. First, there is the old issue of Data Models and this next step requires additional effort to develop dimensional data models that are consistent with standards like S95 and S88. The second challenge is enabling casual users to leverage the power of analytics. Standard Analytics packages offer tremendous capabilities, but these tools also require special skills. Suppliers of Analytics packages have addressed this problem for business users in areas where the focus is product or sup- ply chain excellence. But none has yet developed screens for APM professionals, because OpX is just not a focus for them. Enterprise-wide AIM is the Final Goal While AIM Analytics enables OpX across all plant activities, this is still not the end of the AIM for Operations story. Many process industry enterpris- es have a global footprint, with multiple plants in different regions and corporate support functions that drive standardization and improvements across the organization. So, the final stage of an AIM for Operations so- AIM Stage II – Enabling Analysis & Continuous Improvement
  • 14. ARC White Paper • January 2011 14 • Copyright © ARC Advisory Group • ARCweb.com lution occurs when organizations rollout these capabilities across all of their facilities and integrate them across the corporation so that everyone is enabled with integrat- ed, corporate-wide visibility, performance management and analysis. The benefits of this are two-fold. First, it enables the organization to reap the basic plant-level benefits we just discussed in every plant. Second, it enables cross-plant benchmarking and rollout of new and better practices to all plants to ensure that every plant is a Best Plant. AIM Analytics Supports All Management Needs There are many ways that people add visibility and Analytics capa- bilities to their information management systems, but they have different goals and provide different capabilities. Some APM solution providers have added analytics capabilities to their local user interfaces to help local users improve performance. For example, a materials management package might include screens for analyzing in- ventory strategies and supplier performance. Reliability packages likewise include a lot of analytics capabilities. While this shows that there is signifi- cant value in analytics for APM, these local approaches have limited impact because people can only analyze the data locked in those applications. Many automation and MES software suppliers also offer their clients opera- tional or manufacturing intelligence solutions. These solutions help people aggregate information from many sources and develop management dash- boards. But they do little to share information across applications and they are generally only used only for real-time performance tracking of KPIs and Real Enterprises Have Many Plants AIM Stage III - Enterprise Excellence
  • 15. ARC White Paper • January 2011 Copyright © ARC Advisory Group • ARCweb.com • 15 alerts. This is helpful and shows the value of information aggregation for manage- ment, but offers little support for understanding the root causes of perfor- mance problems. AIM analytics offers the benefits of both of these approaches. You get the aggrega- tion you need to manage and you have the capabilities to develop dashboards and special screens to suit everyone’s in- dividual needs. Standard Analytics packages, like SAP Business Objects and Oracle OBIEE, offer the same fundamental capabilities, but their focus is different. This means that they often lack standard connectors for popular APM applica- tions and end users are left with the task of building custom data models and interfaces for Operational Excellence. AIM Analytics Supports All Management Needs The figure below summarizes the requirements for a good AIM for Opera- tions solution. Each level of this pyramid adds value and, like the performance pyramid discussed earlier, a full AIM solution has to be built from bottom up to ensure a solid foundation for performance improve- ment. This model also provides a helpful tool for evaluating the AIM capabilities of different software solutions. AIM for Operations Requirements AIM Analytics is more than Operational Intelligence
  • 16. ARC White Paper • January 2011 16 • Copyright © ARC Advisory Group • ARCweb.com Rolta OneView™ Helps Companies Overcome Key AIM Hurdles Rolta is one software solution provider that appreciates the need for AIM for Operations solutions and has the background to provide the right tools for companies to achieve these capabilities quickly and at minimal cost. Rolta OneView™ enables operational excellence by providing users with a pre-built solution for collecting raw data from APM applications, organiz- ing this into an operations-centric dimensional data model, and generating industry specific, cross-functional KPIs that provide actionable intelligence, data drill down and convenient, customizable reporting. OneView™ can also present plant operations as one fully connected ecosystem spanning the whole enterprise and enable executives to drive operational and relia- bility performance improvements through key initiatives like Balanced Scorecards, Six Sigma, and TQM. Rolta OneView™ Logical Model A comparison of Rolta OneView™ with ARC’s model of an effective AIM for Operations solution shows that Rolta OneView™ satisfies key AIM re- quirements at every level of the pyramid. For the bottom layer, Rolta OneView™ provides a set of standard ETL con- nectors for seamlessly capturing information from a variety of popular APM applications including enterprise resource planning (ERP) and supply chain management (SCM); operations management systems such as manu-
  • 17. ARC White Paper • January 2011 Copyright © ARC Advisory Group • ARCweb.com • 17 facturing execution systems (MES) or collaborative production manage- ment (CPM) systems; and plant automation systems such as distributed control systems (DCS) and programmable logic controllers (PLC). Above this lies a feature rich, information processing environment that can enrich and manage both real-time data and data destined for analysis in a historical data warehouse. Information can be analyzed for thresholds and alerts, cross-functional KPIs can be generated, and information can be stored in an operations-centric, dimensional data model that supports rapid retrieval and analysis in the way that managers actually view their opera- tions. At the analysis level, Rolta OneView™ provides a full suite of analytics tools based upon solutions from leading Analytics suppliers like Oracle, SAP and Microsoft. These tools enable slice-and-dice, basic statistical anal- ysis and advanced statistical analysis that enable users to quickly explore data, model relationships and forecast the effect of process changes. At the top level, Rolta OneView™ provides a complete set of pre-built user interfaces, which they call Insights, that bring the power of AIM Analytics to users across the enterprise. Operational Insights spans industry-specific functional areas in operations such as Production, Maintenance, Reliability, HSE, Quality, MRO and Supply Chain. Rolta OneView™ also features pre- built insights for critical areas like Projects and Sustainability. Rolta OneView™ was designed by domain experts with the mix of func- tional and industrial experience needed to understand what’s needed to support the operation and care of modern process plants. Rolta OneView™ is a comprehensive integrated decision support system, built on a best-in- breed technology platform. The solution set is also scalable and can work with geospatial systems to further enhance the display of actionable infor- mation and key performance indicators.
  • 18. ARC White Paper • January 2011 18 • Copyright © ARC Advisory Group • ARCweb.com AIM Enables Operational Excellence in Process Industries Rolta OneView™ Helps Companies Overcome Key AIM Hurdles
  • 19. ARC White Paper • January 2011 Copyright © ARC Advisory Group • ARCweb.com • 19 Analyst: Sid Snitkin Editor: Arcot V. Rajabahadur Acronym Reference: For a complete list of industry acronyms, refer to our web page at www.arcweb.com/Research/IndustryTerms/ AIM Asset Information Management ALM Asset Lifecycle Management APM Asset Performance Management BOM Bill of Materials CAPEX Capital Expenditures CPM Collaborative Production Management CRM Customer Relationship Management D&B Design & Build DCS Distributed Control System EAM Enterprise Asset Management ERP Enterprise Resource Planning GIS Geospatial Information Systems HAZOP Hazard & Operability IT Information Technology KPI Key Performance Indicator MDM Master Data Management MES Manufacturing Execution Systems MI Manufacturing Intelligence MRO Maintenance, Repair, and Operations O&M Operations & Maintenance OI Operational Intelligence OPEX Operations Expenditure OpX Operational Excellence P&ID Process & Instrumentation Diagram PLC Programmable Logic Controller ROA Return on Assets SCM Supply Chain Management QM Quality Management UI User Interface Founded in 1986, ARC Advisory Group is the leading research and advisory firm for industry. Our coverage of technology from business systems to prod- uct and asset lifecycle management, supply chain management, operations management, and automation systems makes us the go-to firm for business and IT executives around the world. For the complex business issues facing organizations today, our analysts have the industry knowledge and first-hand experience to help our clients find the best answers. All information in this report is proprietary to and copyrighted by ARC. No part of it may be reproduced without prior permission from ARC. This research has been sponsored in part by Rolta. However, the opinions expressed by ARC in this paper are based on ARC's independent analysis. You can take advantage of ARC's extensive ongoing research plus experience of our staff members through our Advisory Services. ARC’s Advisory Services are specifically designed for executives responsible for developing strategies and directions for their organizations. For membership information, please call, fax, or write to: ARC Advisory Group, Three Allied Drive, Dedham, MA 02026 USA Tel: 781-471-1000, Fax: 781-471-1100 Visit our web pages at www.arcweb.com
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