B t P ti f Fi ldb & HARTB t P ti f Fi ldb & HARTBest Practices for Fieldbus & HART Project Implementation & Lifecycle

Benefits Realization

Best Practices for Fieldbus & HART Project Implementation & Lifecycle

Benefits RealizationBenefits RealizationBenefits Realization

ARC ForumFebruary 2008

By Larry O’BrienBy Larry O Brienlobrien@arcweb.com

OutlineOutline

♦ The Future Potential for Fieldbus and HART

h h ll d fi♦ What are the Installed Cost Benefits?

♦ What are the Lifecycle Cost Benefits?

♦ What are Best Practices for Project Success?

♦ What are Best Practices for Lifecycle Success?

♦ Panel Discussion/Q&A

Fieldbus & HART are a Permanent Fixture on the Automation LandscapeFieldbus & HART are a Permanent Fixture on the Automation Landscape

♦ Market for Fieldbus Products and Services for the Process Industry (Profibus PA and FoundationProcess Industry (Profibus PA and Foundation Fieldbus) is growing rapidly and there is already a large installed base.

♦ Installed base of HART devices is already in the tens of millions and growing.

♦ Fieldbus and HART are both part of the purchase♦ Fieldbus and HART are both part of the purchase specifications of most major companies in the oil and gas, chemical, and other industries.

♦ Anyone who is still “Waiting to see” what happens in this market is already missing out on big potential.p

Fieldbus Market is BoomingFieldbus Market is Booming

Installed Base of HART DevicesInstalled Base of HART Devices

55 Million Devices in 2005

13%

35%

11%2%

39%HART Fieldbus Proprietary 4-20mA + Pneumatic

Smart Non - Smart

O l Ab t T P t f HART D i I t ll d W kiOnly About Ten Percent of HART Devices Installed are WorkingTo their Full Operating Potential

What are the Benefits? Installed CostWhat are the Benefits? Installed Cost

Remote I/O Cost Fieldbus Percent System Cost Differential System Cost Difference

Electrical 140,000€ 0€ 140,000€ 0.0%

Analyzers 140,000€ 0€ 140,000€ 0.0%

Project Management 280 000€ 0€ 280 000€ 0 0%Project Management 280,000€ 0€ 280,000€ 0.0%

Field Devices 770,000€ 4,489€ 774,489€ 0.6%

I/O System 420,000€ -76,212€ 343,788€ -18.1%

DCS Incl. Engineering 525,000€ -24,795€ 500,205€ -4.7%

Installation 700,000€ -10,732€ 689,268€ -1.5%

Calibration/Quality 140,000€ -5,976€ 134,024€ -4.3%

Commissioning (IBS) 105,000€ -2,400€ 102,600€ -2.3%

Engineering 280,000€ -9,076€ 270,924€ -3.2%

Total All Process I&C 3,500,000€ -124,702€ 3,375,298€ -3.6%

What are the Benefits? Installed CostWhat are the Benefits? Installed Cost

Cost was AdditionalNo SavingsLittle SavingsMedium Savings

Project Overheads

Ability to Replicate Common Applications

Significant Savings

Reduced Hardw are Footprint

Reduced System Complexity

Easier P&ID Diagrams

Project Management

Operator Training Costs

Maintenance Personnel Training Costs

System Costs

Documentation Costs

FAT or SAT Time to Completion

Device/Instrumentation Costs

Wiring Costs

Operator Training Costs

Reduced Overall Time to Startup

Commissioning Costs and Checkout

Front End Engineering and Design Costs

38363432302826242220181614121086420

Real Advantages of Fieldbus & HART are in Lifecycle & Operational CostsReal Advantages of Fieldbus & HART are in Lifecycle & Operational Costs

100%

80%

60%

40%

Initial Costs Maintenance & Operation Costs20%

0%0%

Initial Costs Represent Only 20% of Total Cost of OwnershipInitial Costs Represent Only 20% of Total Cost of Ownership

What are the Primary Lifecycle Cost Benefits?What are the Primary Lifecycle Cost Benefits?

Cost was AdditionalNo SavingsLittle SavingsMedium Savings

Tighter Control of the Process

Significant Savings

Increased System Availability

Increased Interoperability and Ability to Choose Devices from Different Suppliers

Increased Accuracy of Devices

Prolonged Asset Life

Increased Return on Installed Assets

y y

Better Process Visibility

Incident Avoidance or Avoidance of Unplanned Dow ntime

Enhanced Effectiveness of the Automation System

Improved Response Times

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Lifecycle Cost Benefits Continued: Maintenance Cost BenefitsLifecycle Cost Benefits Continued: Maintenance Cost Benefits

Cost was AdditionalNo SavingsLittle SavingsMedium SavingsSignificant Savings

Reductions in Fixed Maintenance Costs

Significant Savings

Easier and Faster De ice Replacement Upgrade

Increased Efficiency and Ease of Change Management

Reduction in Variable Maintenance Costs

Reduced Spare Parts Inventory

Identify Problems Before they Happen, Predictive Maintenance Strategy

Easier and Faster Device Replacement, Upgrade

Enhanced Process Diagnostics

Reduced Number of Unnecessary Trips to the Field by a Technician

Reduced Spare Parts Inventory

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Enhanced Device Diagnostics

Enhanced Process Diagnostics

The Maintenance Opportunity Should not be UnderestimatedThe Maintenance Opportunity Should not be Underestimated

35% 63% of maintenance labor35%35% 63% of maintenance labor

25%

30%

35%

28%

63% of maintenance labor results in no action!!

25%

30%

35%

28%

25%

30%

35%

28%

63% of maintenance labor results in no action!!

15%

20%

25%20%

15%

20%

25%20%

15%

20%

25%20%

0%

5%

10%6% 6%

4%

0%

5%

10%6% 6%

4%

0%

5%

10%6% 6%

4%

0%Routinecheck

NoProblem

Calibrationshift

Zero Off Pluggedlines

Failed

Source: Shell Global Solutions

0%Routinecheck

NoProblem

Calibrationshift

Zero Off Pluggedlines

Failed0%

Routinecheck

NoProblem

Calibrationshift

Zero Off Pluggedlines

Failed

Source: Shell Global Solutions

Who is Realizing the Benefits?Who is Realizing the Benefits?

5 Very High Return on Investment14 Achieved Return on Investment24 Not Sure6 Did N t Y t A hi R t I t t B t E t T6 Did Not Yet Achieve Return on Investment But Expect To6 Did Not Achieve Return on Investment and Do Not Expect To25.5 %

9.1 %

43.6 %10.9 %

10.9 %

Most Are Unclear on the Long Term Economic BenefitsMost Are Unclear on the Long Term Economic BenefitsThey Are Achieving

How Long Did It Take to Achieve Full Return on Investment?How Long Did It Take to Achieve Full Return on Investment?

2 0-3 Months3 4-6 Months5 7-9 Months5 10-12 Months5 10-12 Months3 12-18 Months0 19-24 Months3 Over two years

14.3 %23.8 %

9.5 %

23.8 %14.3 %

14.3 %

0.0 %

Almost Half of Respondents Achieved a Full Returnin Under a Year

Best Practices for Project Success: Why Do Fieldbus Projects Fail?Best Practices for Project Success: Why Do Fieldbus Projects Fail?

♦ Poor Planning/Pre FEED Stage Involvement

k f l♦ Lack of Employee Buy In

♦ Lack of Management Buy In

♦ Lack of PAM Solution Deployment

♦ Lack of an Experienced Engineering Partner

♦ Lack of an Experienced Supplier Partner

♦ Lack of Proper Training

Proper Training & Education is essentialProper Training & Education is essential

Lack of management buy-in

No single standard available

Increased training costs

Lack of field workforce knowledge

Lack of employee buy-in

Strongly Agree

Not proven in mission critical apps

Multivendor interoperability issues

Insufficient host system functionalityAgreeNeutralDisagreeStrongly Disagree

Not enough products available

Lack of supplier support/commitment

Initial cost is too high

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Lack of field workforce knowledge is key limiting factor

in fieldbus implementation

Up Front Planning is Essential to SuccessUp Front Planning is Essential to Success

♦ Get the Involvement of the Supplier and Partners ASAPASAP

♦ Avoid the “Now that it’s Installed, What do we do Now?” Syndrome

♦ Lifecycle Benefits are Determined in the Planning Stage

♦ Need to rethink worker roles

Employee & Management Buy InEmployee & Management Buy In

♦ Employee buy in must reach from maintenance to operations and engineeringoperations and engineering

♦ Management buy in is essential, justification of the technology must match overall corporate objectives

♦ This is where training and education begins. Maintenance personnel could view fieldbus/HARTMaintenance personnel could view fieldbus/HART as a threat. Show them how it will make them do their jobs better!

Why is PAM so Important to HART & Fieldbus?Why is PAM so Important to HART & Fieldbus?

74 I plan to use PAM applications with fieldbus64 No plans to use PAM applications55 Currently use PAM with fieldbus55 Currently use PAM with fieldbus24 Would like to deploy PAM, but cannot34.1 %

29.5 %

11.1 %

25.3 %

11.1 %

Percent of Total Respondents Planning to Use PAMIn their Fieldbus Projects

Implementation of a PAM Solution in Conjunction with HART and FieldbusImplementation of a PAM Solution in Conjunction with HART and Fieldbus

% Improvement vs Traditional Maintenance% Improvement vs Traditional Maintenance

Equipment Productivity

% Improvement vs Traditional Maintenance

Equipment Productivity

% Improvement vs Traditional Maintenance

Defects

Equipment Life

Workforce Efficiency

Defects

Equipment Life

Workforce Efficiency

Inventory Costs

Downtime

Defects

Inventory Costs

Downtime

Defects

-60 -40 -20 0 20 40

Unplanned Breakdowns

y

-60 -40 -20 0 20 40

Unplanned Breakdowns

y

Impact of Fieldbus on Standard Work Processes and Procedures – 1=No Benefit at All; 5=Greatest BenefitImpact of Fieldbus on Standard Work Processes and Procedures – 1=No Benefit at All; 5=Greatest Benefit

N/A123445

Operations

Purchasing

Engineering

Maintenance

20191817161514131211109876543210

Maintenance and Operations Are Getting the Most Benefit

How Has Fieldbus Changed Responsibilities and Work Processes?How Has Fieldbus Changed Responsibilities and Work Processes?

Strongly AgreeAgreeNeutralDisagreeStrongly Disagree

Fieldbus has improved the productivity of the process engineerg y g

Fieldbus results in enhanced operator effectiveness

Fieldbus has improved the productivity of the maintenance technician

Fieldbus has improved the productivity of the board operator

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Fieldbus has improved the productivity of the f ield operator

Users Believe the Biggest Impact Is onMaintenance Technician and Process Engineer

Finding the Right PartnerFinding the Right Partner

Services &Services &Services &Project

Coordination

Services &Project

Coordination

PartnerProducts

Registered Devices &Systems

Successful Fieldbus Partners

PartnerProducts

Registered Devices &Systems

Successful Fieldbus Partners

Industry ExpertiseIndustry Expertise

Conclusions and RecommendationsConclusions and Recommendations

♦ There remains a substantial installed cost benefit to fieldbus technologies, but the real value lies into fieldbus technologies, but the real value lies in the operational and lifecycle cost phase

♦ Many end users are not realizing the optimum benefit that fieldbus and HART technology can provide

♦ Training and education are essential Applying♦ Training and education are essential. Applying fieldbus as a mere replacement for 4-20 mA guarantees project failure and zero ROI.