Industrial Asset OptimizationImprove asset uptime and service profitability through M2M design and deployment support, remote monitoring, data management, prognostics and in depth analytics
Gianni GiacomelliSenior Vice President, Genpact
David Petrucci Vice President, Industrial Solutions, Genpact
PROCESS • ANALYTICS • TECHNOLOGY 2© 2014 Copyright Genpact. All Rights Reserved.
A Global Business Process Services Leader: Process Transformation and Outsourcing, Analytics, Technology
We help leaders of some of the largest enterprises transform and run their processes and operations, including the very complex and industry-specific
What we do
Unbiased, agile combination of process science, related technology and analytics limits upfront costs and enhances future adaptability
Right critical mass:
• we are large (64,000+ global staff) but our solutions appropriately flexible
• our top management is directly involved in our client partnerships
How we do it
Our impact
We help enterprises to be more competitive by becoming more intelligent: adaptive, innovative, globally effective and connected…
…by enabling tighter management of costs, risks, regulations, and supporting growth
The results: US$22B* of impact for 800+ global clients
PROCESS • ANALYTICS • TECHNOLOGY 3© 2014 Copyright Genpact. All Rights Reserved.
THE CHALLENGE
PROCESS • ANALYTICS • TECHNOLOGY 4© 2014 Copyright Genpact. All Rights Reserved.
OEMs face financial and operational risks in the absence of an effective industrial asset optimization program
Difficult service monetization
• Difficult to transition from product to service-centric organization• Inaccurate installed base data and inadequate analysis limits service
contract sale/renewal up to 20% of services revenues
Higher service costs
• Limited remote monitoring/diagnostics leading to high field fixes
• Suboptimal field force scheduling, skill set matching
• Limited parts/tools availability due to inaccurate service forecasts, unplanned shutdown, limited triage across warehouses etc.
Lower asset uptime
• Unscheduled asset downtime impacts end-customer satisfaction and OEM’s market share. This provides untapped opportunity to maximize utilization by end customer
Product differentiation
• OEMs find it hard to create differentiation without strong value and performance engineering to create increasingly reliable machines
• Usage of sensor data by end customer to create innovative service lines is possible
Regulatory risk management
• OEMs and operators need to overcome increasing number of environment (e.g for Oil & Gas) and operational (e.g NERC for energy equipment) regulations
PROCESS • ANALYTICS • TECHNOLOGY 5© 2014 Copyright Genpact. All Rights Reserved.
Similarly operators risk experiencing productivity loss and costly service operations
Revenue from operations
• Unscheduled asset downtime is undesirable and results in overall productivity loss (e.g. Oil & Gas, wind energy, automotive, mining, etc.) and revenues (e.g. healthcare, transportation)
Higher service costs
• Customer is significantly inhibited in its ability to negotiate service contract price based on the absence of operational data insights and SLA violations, resulting in higher costs getting agreed and paid
• Limited analytics of remotely monitored operational data results in non-coordinated preventive maintenance activities, non-availability of spare parts in inventory and higher than desirable operational disruption
Risk management
• Operators need to better manage SLA related risks with the customers instead of routinely following OEM’s equipment maintenance programs
• End customers/ operators need to overcome increasing number of environment (e.g for Oil & Gas) and operational (e.g NERC for energy equipment) regulations
• Equipment operation data is regarded “sensitive” by end-customer/ operators and requires adequate data security measures
PROCESS • ANALYTICS • TECHNOLOGY 6© 2014 Copyright Genpact. All Rights Reserved.
THE SOLUTIONS
PROCESS • ANALYTICS • TECHNOLOGY 7© 2014 Copyright Genpact. All Rights Reserved.
Exponential potential exists by combining prognostics with service contract management…
Reactive• Extensive Damage• High Cost• Most Downtime
Predictive• Some Damage• Moderate Cost• Moderate Downtime
Optimized• New revenue • Minimum Damage• Minimum Cost• Planned Downtime
Dia
gnos
tics
Hea
lthM
onito
ring
Con
trac
t Ana
lysi
s &
Mgt
Inte
rnal
Mai
nten
ance
Opt
imiz
atio
n
Ope
ratio
nal
Opt
imiz
atio
nC
ontr
ol T
ower
Fai
lure
P
redi
ctio
n
Con
trac
t Ana
lysi
s &
M
gt E
xter
nal S
LA
Inte
grat
ed
Pla
tform
M2M
Des
ign
& B
uild
Fai
lure
A
ssoc
iatio
n
Fle
et A
nom
aly
Pre
dict
ion
Bor
esco
pe
Insp
ectio
ns
PredictiveModeling
Statistical Analysis
AlgorithmAutomation
Data Integration
Process optimization
Reporting
Cu
sto
mer
Val
ue
Integrated approach
Traditionalapproach
Process maturity
PROCESS • ANALYTICS • TECHNOLOGY 8© 2014 Copyright Genpact. All Rights Reserved.
For example, service revenues can be enhanced by up to15%...
Outcome Key areas Value drivers and Key levers
Increase service revenue by 10-15%
New Service Offerings
Providing different tiers of service like uptime assurance, first time fix etc.
Offer Parts Optimization Solution to operators (through accurate failure prediction)
New Contracts
Better installed base (IB) coverage by increasing IB accuracy, IB growth and targeted lead generation
Effective bid and prospect management and win-loss analysis ensuring higher win rates
Better contract pricing through reliability based failure forecasting and past usage history
Existing Contracts
Higher contract renewals and better pricing by increasing IB accuracy, past usage history based proposals etc.
Cross-selling opportunities through detailed understanding and monitoring of customer accounts
Reducing revenue leakage by capturing T&C’s correctly and addressing missed billing opportunities
Predictive Optimized
Improvement potential
10-15% 15-20%
8-10% 10-15%
8-10% 10-12%
5-7% 8-10%
15-20% 20-25%
5-8% 10-12%
7-8% 9-10%
4-6% 6-8%
8-10% 12-15%Overall
PROCESS • ANALYTICS • TECHNOLOGY 9© 2014 Copyright Genpact. All Rights Reserved.
…and service cost can be reduced by up to 10%
Outcome Areas Value Drivers Levers
Service Cost Reduction by 8-10%
Field Service Field service optimization
• Reduced emergency dispatch• Centralized field and parts
supplier team
Batch service scheduling
• Prognostics based scheduling• Consolidation between preventive
and reactive visits
Contact Center
Centralization • Consolidation of service operations back office
Offshoring • Offshore L0 and L1 monitoring/ support
Parts Management
Parts cost • Separate RFQ for service parts
Parts availability • Dynamic forecasting• Part pooling at warehouse
Inventory optimization & turnover
• Triaging multiple warehouses• Obsolescence liquidation
Kit configuration & optimization
• BOM drill down analysis
Predictive Optimized
Improvement Potential
8-10% 10-12%
15-20% 20-25%
8-10% 10-12%
5-7% 8-10%
10-12% 12-15%
5-6% 7-8%
4-5% 5-6%
10-15% 20-25%
6-7% 8-10%Overall
PROCESS • ANALYTICS • TECHNOLOGY 10© 2014 Copyright Genpact. All Rights Reserved.
4C framework for an optimized industrial asset management function
Structured
Unstructured+
Automated Connectivity Monitoring
Service Cost Optimization
• Field service management
• Parts management
Service Revenue Enhancement
• Installed base management
• Service contract management
• New service lines
DATA
CustomerInternalNetwork
IP SEC Tunnel
Internet
Customer Network Server Customer
Provides Public Routable IP for Connection Via VPN tunnel
Firewall
Internal Network
Prognostics
Performance engineering
Reliability based failure forecasting
Failure mode analysis
Early wear and tear detection
DW
ETL
BIG Data?
Data QualityCollation & Segregation
Asset Reliability
• Reduce unplanned downtime
• Reduce financial and operational risk
• Less product failure rates
End client utilization
Algorithms, Rules, Alerts
Model free/Model based
Self learning model/rule
Test and monitor connectivity Collation & Segregation
Connect Collect ControlCompute
Build robust and secure infrastructure for data gathering, rule based filtering and storage
Enable proactive maintenance, engineering interventions and streamlined operating practices
Utilize big data protocols to gather, filter and store data
Derive actionable insights from data
Remote Monitoring & Diagnostics
PROCESS • ANALYTICS • TECHNOLOGY 11© 2014 Copyright Genpact. All Rights Reserved.
Case exampleChallengesClient Solution and Results
A leading Aero
turbine OEM
Remote Connectivity
• Connectivity solution for globally installed assets• Scalable and flexible solution for different controls systems• Cyber secure NERC compliant solution design and deployment• Legacy process improvement by 90% - TAT reduced by 3 months
Data Quality
• 24x7 monitoring of remotely connected assets• Remote trouble shooting for reliable connectivity• Data quality metrics improvement by 40%• Sustained connectivity uptime to 95%
Data Management Automation
• Implement automation for data management in the asset health center
• Design algorithms for anomaly identification and alerts automation
• Drive automation in monitoring and diagnostics process• Achieved $2 million savings thru automation
Prognostics Model
Development
• Rule based sensor health check process implementation• Develop physics based model to enable part load performance
monitoring• Loss attribution and degradation analysis
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CONTACT GENPACT TO EXPLORE THE “ART OF THE POSSIBLE”
PROCESS • ANALYTICS • TECHNOLOGY 13© 2014 Copyright Genpact. All Rights Reserved.
About Genpact
Genpact Limited (NYSE: G) is a global leader in transforming and running business processes and operations, including those that are complex and industry-specific. Our mission is to help clients become more competitive by making their enterprises more intelligent through becoming more adaptive, innovative, globally effective and connected to their own clients.
Genpact stands for Generating Impact – visible in tighter cost management as well as better management of risk, regulations and growth for hundreds of long-term clients including more than 100 of the Fortune Global 500. Our approach is distinctive – we offer an unbiased, agile combination of smarter processes, crystallized in our Smart Enterprise Processes (SEPSM) proprietary framework, along with analytics and technology, which limits upfront investments and enhances future adaptability.
We have global critical mass – 62,000+ employees in 24 countries with key management and corporate offices in New York City – while remaining flexible and collaborative, and a management team that drives client partnerships personally.
Our history is unique – behind our single-minded passion for process and operational excellence is the Lean and Six Sigma heritage of a former General Electric division that has served GE businesses for more than 15 years.
For more information, visit www.genpact.com. Follow Genpact on Twitter, Facebook, and LinkedIn.
Thank You
Gianni.giacomelli[at]genpact.com
David.petrucci[at]genpact.com
www.genpact.com/home/solutions/industrial-solutions/industrial-asset-optimization
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