ABB Industrial Maintenance

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March 22 2011, Pertti Weissenfelt

ABB Full Service

Industrial Viewpoint

ABB GroupSeptember 1, 2011 | Ver. 1.1 Slide 1


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Table of Contents

What is Industrial Maintenance Service?

Maintenance Service keep cost focus but get

back to production factors Outsourcing evolving in industrial maintenance

What is eneral and what is industr s ecific

Structuring maintenance services industrialviewpoint

Industy specific maintenance offering an

example Summary

ABB GroupSeptember 1, 2011 | Ver. 1.1 Slide 3 ABB GroupSeptember 1, 2011 | Slide 3


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What is Industrial Maintenance Service?

refers to the repair and upkeep of

the total industrial plant consisting,machines and technology used forproduction.

According to this wide variety ofdifferent kind of technology andequipment, industrial maintenanceec n c ans nee o e mu -

skilled individuals, proficient in

many tasks and to know the

maintaining extremely well.



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Key Objectives of Asset Performance Management

Smart Information

Asset Performance

Operations Mainten-Mana e

Improve

ance

Improve

CriticalIssues and

Constraints

Utilization

Availability

Sustainabili ty Stewardship


Source: Asset Performance Management for Process IndustriesARC Strategies, August 2010


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What drives our businesses?Industrial manufacturing, Capex, commodity production

Forecast suggestsindustrial production

World GDP and industrial production growthSource: Global Insight; Nov 2010

GDPIndustrial

Forecastgrowth will deceleratetowards next year.

Commodity prices

4

6

20

30

growth %

WorldGDP

productiongrowth %

Industrialproduction

China

con nue e r upwartrend, but still are belowpre-crisis level.

Oil rice WTI avera ed

-2

0

-10

0

Industrialproduction

US

IndustrialproductionEurozone

$80 a barrel during last 3months; growth reflectedrenewed investor appetitefor risk, consum tion rise,

- -

08

Q1

08

Q2

08

Q3

08

Q4

09

Q1

09

Q2

09

Q3

09

Q4

10

Q1

10

Q2

10

Q3

10

Q4

11

Q1

11

Q2

11

Q3

11

Q4

Commodity pricesindexed, Jul08=100; source: GF-SCM; LME; EIA; MetalBulletin; Nov 2010

weakness of US dollar.

Copper price has nearlyreached pre-crisis level,

100

125

Iron OreAluminum

CopperPre-crisis level

measures and restocking;China and emerging Asiamainly driving the growth.25

50

08

08

09

09

09

09

10

10

10

10

SteelCrude oil (WTI)

ABB GroupSeptember 1, 2011 | Ver. 1.1 Slide 6 ABB GroupSeptember 1, 2011 | Slide 6

Jul

Oct

Ja

n

Apr

Jul

Oct

Ja

n

Apr

Jul

Oct


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The focus - Primary Drivers for maintenance



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Outsourcing evolving in industrial maintenance

The cost of Industrial Maintenance in Europe wil l be growing1,5% per annum unti l 2015.

Mainentenance outsourcing is estimated to increase from the


Source: FIM StudieAlixPartners 2008


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Business Models of Industrial Maintenance Service

Maintenance providers cri tical task is to select the businessmodel and balance between:

.

2. Maintenance providers own strategy

1. Industr ial technological and system know-how

2. Industry process know-how

.

4. Own background

E.g. ABB Industrial Service main categories

Life-cycle services

ABB Full Service



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Example of maintenance Offering

1. Complying with HSEregulations at minimum

completedagreementsworldwide

Revenues 2009

Energy

Cost Savings

Indirect

Benefits

nefit

sEnergy

Cost Savings

Indirect

Benefits

nefit

s

. mprov ng p an anfinancial performance

3. Managing maintenance

5,500+ directserviceprofessionals

Delivery in moreMaintenance

Plant

Performance

Benefits

Savings/Be

Maintenance

Plant

Performance

Benefits

Savings/Be

4. Increasing reliability andlife-time of processe ui mentGlobally supported

an coun r esCost Savings

Year 1 Year 2 Year 3 Year 4 Year 5

Cost Savings

Year 1 Year 2 Year 3 Year 4 Year 5

5. Managing change and

creating a service culture

ong- erm, per ormance-based agreements in whichABB commits to maintain

and improve the. and knowledge of ABBsglobal network

performance, energy

efficiency and reliabili ty foran entire facility with

ABB GroupSeptember 1, 2011 | Ver. 1.1 Slide 11 ABB GroupSeptember 1, 2011 | Ver. 1.1 Slide 11


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What is general and what is industry specific

70% of all maintenance is seen as common practices in all industries

e res s n us ry spec c as or examp e n u p aper n us ry:

Safety at work

Process knowledge, Trouble shooting, Optimization

Quality requirements for the final product for customers

Material technology especially in pulp mill equipment

o erv ce an gr n ng

Quality Control System Service

Web Inspection System Service Men

Drives

Hydraulics Input Output

ater a

Machine

Method

ost

Quality

Delivery

on on mon or ng

Lubrication

Industr -s ecific

15% 15% 70%

Common PracticesSite -s ecific



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Structuring maintenance services industrial viewpoint

organization models are structuredaccording to the production

processes of the industry In Pulp and Paper the structure

usually separates the differentdepartments like pulp production,

ower lant a er machines and

converting as their own maintenanceareas. That is because of thecomplexity of the mills and machinery

Menindustry.

In addition to these there usually is acommon services department which is

Material

Machine

Method

Cost

Quality

Delivery

getting smaller and smaller as theseservices are today done more by localsubcontractors.

15% 15% 70%


Industry -specific Common PracticesSite -specific


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Industrial maintenance offering an example Roll

Paper quality depends on several issues like theraw materials, the mixture of them, the shortcirculation and after that the head box and theformer of the paper machine. All these are crucialfor the final paper quality and the mistakes takenin these phases are impossible to correct later inthe process.

After these the quality is made or totally destroyedy e ro s n e paper mac ne, coa ng mac ne

or calanders. It requires a lot of know how andexperience to know when each roll in its ownposition is good enough to perform its own task in

e process. ome ro s are us o ea e paperinto the next phases of the process but most of

them are doing something for the profile or thesurface of the paper - the quality.

A roll maintained and service to a right quality at aright way and equipment at the right time willensure a the quality of the paper.


I d t i l i t ff i l f


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Industrial maintenance offering an example ofSpecial Services to Support Maintenance Agreement

PreventiveTheoretical production time

maintenance

Service

Spare check

Planned production timeNon-

production

time

Drives

Remote

controlGross operating time

Availability

losses

Equipment & process

failures

Planned shuts and

set-up& adjustments

Drives

LoopPerformanceNet operating time

Speed

losses Reduced speed

Idling and minor

stoppages

p m za on

WIS

Site survey

QCS

Valuable

operating t ime

Quality

losses

Defects in process

Start-up lossesProcess

Analysis

Trim audi tsProcess

Optimizer

stability

AuditOEE Online

measurement


nergy mgm

& optimization


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Summary

Down-turn has clearly affected to development of maintenancemar e .

Indication that outsourcing trend will continue

specialists support

We need constantly new ideas and innovations on how to keep.

Best and most remarkable renewals and new ideas forimprovement come from an industry or business outside of your

.

ABB Full Service is focusing on several, but carefully selected,

industry areas, Pulp & Paper, Oil & Gas, Metals and Mineralsav ng e compe ence requ re or e n us ry spec c ssues

as well as the variety of overall maintenance similar to allindustries.



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Summary

An Industrial Maintenance Provider has to have the capability,know-how, recourses, partners and network to manage andexecute all maintenance activities in the entire lant.



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ABB Industrial Maintenance

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