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TABLE OF CONTENTS JANUARY 2017 / VOL. 37, NO. 1

FEATURES

SPECIALISTS

26 / COVER STORY

07 / FROM THE EDITOR

15 / ENERGY EXPERT

Game On

Your Best Digital Year

How the IIoT is transforming asset lifecycle management

Will this be the year that your enterprise makes the IIoT leap?

Hot Topic: Decarbonizing Heating

31 / WORKFORCE

09 / HUMAN CAPITAL

How to Use KPIs to Drive Behavioral Change

A Canine Lesson on Leadership

New software and other tech tools can help you compel continuous improvement 35 / MAINTENANCE

Seize the IIoT in Just 3 Steps Here’s what your maintenance and operations teams should be doing to prepare for IIoT success 42 / BIG PICTURE INTERVIEW

Anne-Marie Walters, Global Marketing Director, Bentley Systems “Visual software in the same way as sensors is flagging to the maintenance people visual information – there’s something changing about this view.

Something’s beginning to shift a bit, move, shake a bit maybe.”

PLANT SERVICES (ISSN 0199-8013) is published monthly by Putman Media, Inc., 1501 E. Woodfield Road, Suite 400N, Schaumburg, IL 60173.

Phone (630) 467-1300, Fax (630) 467-0197. Periodicals Postage Paid at Schaumburg, IL and additional mailing Offices. Canada Post International Publications Mail Product Sales Agreement No. 40028661. Canadian Mail Distributor Information: Frontier/BWI,PO Box 1051, Fort Erie, Ontario, Canada, L2A 5N8. Printed in U.S.A. POSTMASTER: Postmaster: Please send change of address to Putman Media, PO Box 1888, Cedar Rapids IA 52406-1888; 1-800-553-8878 ext 5020. SUBSCRIPTIONS: Qualified reader subscriptions are accepted from PLANT SERVICES managers, supervisors and engineers in manufacturing plants in the U.S. and Canada.

To apply for qualified-reader subscriptions, please go to www.plantservices. com. To non-qualified subscribers in the U.S., subscriptions are $96 per year. Single copies are $15. Subscription to Canada and other international are accepted at $200 (Airmail only) © 2017 by Putman Media, Inc. All rights reserved. The contents of this publication may not be reproduced in whole or in part without consent of the copyright owner. In an effort to more closely align with our business partners in a manner that provides the most value to our readers, content published in PLANT SERVICES magazine appears on the public domain of PLANT SERVICES’ Website, and January also appear on Websites that apply to our growing marketplace.

Putman Media, Inc. also publishes CHEMICAL PROCESSING, CONTROL, CONTROL DESIGN, FOOD PROCESSING, THE JOURNAL, PHARMACEUTICAL MANUFACTURING and SMART INDUSTRY. PLANT SERVICES assumes no responsibility for validity of claims in items published.

What a dog’s run-in with a staircase teaches about assigning new tasks

Why greater heat efficiency is needed, and why it may need to be a group effort 16 / PALMER’S PLANNING CORNER

Plan-It Fitness Get your maintenance planning game in gear to boost your plant’s profits

11 / TECHNOLOGY TOOLBOX

It’s a Lock: Secure Your Network Vendors are joining forces to offer more-robust industrial network security solutions

DEPARTMENTS 19 / AUTOMATION ZONE

23 / YOUR SPACE

Busting 3 IIoT Myths

6 Steps to Project Leadership Success

Don’t let these misconceptions be excuses for not getting your plant more connected 21 / YOUR SPACE

How to deliver what your organization will want to see with a new initiative

IIoT: The Right Tools for the Job

39 / PRODUCT ROUNDUP

Know your security, speed, and data access needs as you work to connect your plant

The latest IT and data network tools to support plant operations and reliability

Control Systems and Networks

40 / CLASSIFIEDS / AD INDEX

JANUARY PLANTSERVICES.COM ONLINE EXCLUSIVE The way ahead for American manufacturers in 2017: http://plnt.sv/1701-BOLDLYGO

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FROM THE EDITOR

IN MEMORY OF JULIE CAPPELLETTI-LANGE, Vice President 1984-2012 PUTMAN MEDIA, INC. 1501 E. Woodfield Road, Suite 400N, Schaumburg, IL 60173 (630) 467-1300 Fax: (630) 467-1120 MIKE BRENNER Group Publisher mbrenner@putman.net

EDITORIAL STAFF THOMAS WILK Editor in Chief twilk@putman.net

CHRISTINE LaFAVE GRACE Managing Editor clafavegrace@putman.net

ALEXIS GAJEWSKI Associate Editor, Digital Media agajewski@putman.net

STEPHEN C. HERNER V.P., Creative & Production sherner@putman.net

DEREK CHAMBERLAIN Senior Art Director dchamberlain@putman.net

DAVID BERGER, P.ENG. Contributing Editor

PETER GARFORTH Contributing Editor

SHEILA KENNEDY, CMRP Contributing Editor

TOM MORIARTY, P.E., CMRP Contributing Editor

DOC PALMER, P.E., MBA, CMRP Contributing Editor

PUBLICATION SERVICES CARMELA KAPPEL Assistant to the Publisher ckappel@putman.net

JERRY CLARK V.P., Circulation jclark@putman.net

JACK JONES Circulation Director jjones@putman.net

RITA FITZGERALD Production Manager rfitzgerald@putman.net

RHONDA BROWN Reprint Marketing Manager Foster Reprints (866) 879-9144 ext.194 rhondab@fosterprinting.com

EXECUTIVE STAFF JOHN M. CAPPELLETTI President/CEO

THOMAS WILK, EDITOR IN CHIEF

YOUR BEST DIGITAL YEAR Will this be the year that your enterprise makes the IIoT leap?

Happy New Year! For the second

January in a row, we’re using this lead issue to look ahead at the industry conversations likely to follow over the next 11 months. Like last year, there’s still no bigger buzz than the impact that digital transformation and the industrial internet is having both on work and on the people who do work.

I’m writing this note on the 10-year anniversary of the launch of the iPhone, which marks a genuine milestone in the history of both internet-enabled communications and mobile computing. As the iPhone evolved and the iPad emerged, savvier organizations and IT workers caught on early to the opportunities available to digitize operations.

For example, a close friend who works in commercial real estate directed his teams early on to rethink his organization’s processes as each new Apple device launched, reducing business friction in the field and moving toward nearly paperless operations.

Our coverage of the IIoT last year was anchored by a review of how organizations were collaborating to develop common industrial IoT vocabularies, as well as an evaluation of how ready assetintensive organizations are to adopt IIoT technologies into their operations.

In this issue, Jason Kasper of LNS Research charts how far industry has come in the past 12–18 months, focusing on the impact that digital transformation is having on asset lifecycle management.

Specifically, Kasper sees industry moving in 2017 toward the wider adoption of smart connected assets and prescriptive analytics to manage asset health and generate operational efficiencies.

Many other contributors this month round out the digital conversation: • IFS CTO Dan Matthews identifies

three myths that cause organizations to hesitate on IoT projects.

• Skkynet’s Bob McIlvride examines how to combine in-house skills with outside expertise to build systems that enable deeper data-driven insights into your assets.

• Bruce Hawkins and Scott Bruni review the foundational IIoT steps that plant teams can take, noting that roughly 60% of the instrumentation needed for critical assets often already exists.

THERE’S STILL NO BIGGER BUZZ THAN THE IMPACT OF DIGITAL TRANSFORMATION. • Tech Toolbox’s Sheila Kennedy surveys the network security solutions landscape in an age of IT-OT convergence.

• Jeff Shiver of People and Processes outlines six steps that can improve the speed and quality of cultural change in your organization.

• Finally, in her Big Picture Interview, Bentley Systems’ Anne-Marie Walters looks ahead to the role that 3D modeling will play in the internet-enabled asset management landscape.

This issue also marks the first column from our newest regular contributor, Richard “Doc” Palmer, with the launch of new monthly department “Palmer’s Planning Corner.” Doc leaves a positive impact wherever he turns his gaze, and we’re thrilled to begin sharing his insights with you.

Thomas Wilk, Editor in Chief twilk@putman.net, (630) 467-1300 x412

KEITH LARSON VP, Content and Group Publisher

WWW.PLANTSERVICES.COM JANUARY 2017 7

HUMAN CAPITAL TOM MORIARTY, P.E., CMRP

A CANINE LESSON ON LEADERSHIP What a dog’s first run-in with a staircase teaches about assigning new tasks Maggie is our beautiful, solid black German Shepherd.

She is a stunning specimen. Maggie was five or six years old when my wife adopted her from the local animal shelter (where everyone should get their pets). We knew very little of her earlier life with her previous owner. She loves people, especially little children, and behaves very well. When we take her for walks around the neighborhood, people stop what they are doing to watch her graceful strides and her striking appearance. We often hear people in the distance say, “What a beautiful dog.”

In October 2016, Hurricane Matthew was bearing down on Florida, threatening to rake nearly the entire East Coast with over 100-mile-per-hour winds, flooding, loss of power, etc. Not being the adventurous person I used to be, we decided to find a dog-friendly hotel in Orlando to ride out the worst of the storm. It is in this hotel where Elegant Maggie provided a leadership metaphor.

No first-floor rooms were available, so we got a room on the second floor, on the side of the hotel that had a nice area where we could take her for walks. I took Maggie’s leash and led her, with her elegant, graceful strides, to the side entrance to the hotel. Predictably, I heard another guest across the parking lot say, “Wow, what a beautiful dog” as we walked. I got to the door with the smile of a proud father after hearing the comment. I swiped my room key card, opened the door and walked into the building. Immediately to the left was the stairwell.

As we started up the stairs, I did not think; I just ascended the first couple of steps. Suddenly the leash tightened as Maggie refused to proceed. It had never occurred to me, but Maggie had never seen or had to negotiate a flight of stairs! Her body language was telling me that she did not know what to do. Our home is a ranch-style house, with all rooms on one level – no stairs. With me gently pulling on the leash and encouraging her to follow me, she began to slowly walk up with me.

Elegant Maggie, walking on the flat ground, was a sight to behold: beautiful, sleek, graceful strides. Maggie on unfamiliar stairways was not so. More like clumsy, awkward, spasmodic Maggie … I burst out laughing at the sight of her trying to move her four legs in any coordinated manner. We finally made it up the two flights of stairs and into the hotel room. Over the course of the next 24 hours, Maggie had to negotiate the stairs several times; it didn’t get better.

So, what does this have to do with leadership?

First, you shouldn’t laugh and make fun of someone who is having difficulty. (Maggie is a dog; I don’t think she understands ridicule. But don’t ever do that to a per-

WE ASK PEOPLE TO TAKE ON RESPONSIBILITIES WITHOUT KNOWING WHETHER THEY ARE COMFORTABLE TAKING ON THOSE TASKS. ... DON’T JUST DUMP RESPONSIBILITIES ON PEOPLE. TALK WITH THEM. ASK THEM WHAT THEY NEED TO BE SUCCESSFUL. son. Even when they can’t hear you.)

Second, we often assume things about people. We see Elegant Maggie in most day-to-day activities and may not know about their clumsy tendencies.

Assuming someone is capable can set him or her up for problems. We ask people to take on responsibilities without knowing whether they are comfortable taking on those tasks. The only way to find out what someone can do is to provide opportunities for that person to do representative tasks. Don’t just dump responsibilities on people. Talk with them. Ask them what they need to be successful, and support them.

Third, an encouraging tug from someone who believes in you may be enough to get you started, but continued coaching and an adequate amount of repetition are needed before confidence and good performance can be anticipated.

These lessons are particularly true when a tradesperson or staff engineer is being considered for a supervisory position. Don’t assume that he or she has the experience and skills needed to be successful. Provide productive leadership training. But of equal importance, provide coaching and hold them accountable to practice the leadership training. Work with them enough so they are capable and confident when they are ultimately assigned to a supervisory position.

Tom Moriarty, P.E., CMRP, is president of Alidade MER. Contact him at tjmpe@alidade-mer.com and (321) 773-3356.

WWW.PLANTSERVICES.COM JANUARY 2017 9

COMPRESSORS

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ure. We make a better compressor. More reliable. More Air for less energy.

Easier to maintain. And quieter. But when it comes to efficiency, system design is critical.

You can run several very efficient machines, but not run them efficiently. That’s why we are such sticklers

for system controls. Our Sigma Air Manager 4.0 makes compressors “play well with others”. Under SAM’s supervision, compressors don’t fight each other. And when they aren’t playing, they are off. No wasting energy idling or cycling.

Beyond saving energy, SAM 4.0 ensures reliable steady pressure for production. It also minimizes run time which extends service intervals. Reduced cycling and idling means less wear and tear on the motor, starter, valves, etc.

SAM 4.0 also provides full time energy monitoring and easy integration into plant control/IIoT systems. Stop neglecting your compressor and give it the supervision it needs with SAM 4.0.

Kaeser’s Sigma Air Manager 4.0 (SAM) compressed air management system brings the IIoT to industrial plants with its adaptive control, data storage, analysis, and predictive maintenance capabilities, and it does it all while ensuring a reliable, consistent supply of compressed air. Learn more at us.kaeser.com/sam.

Kaeser Compressors, Inc. • 866-516-6888 • us.kaeser.com/PS Built for a lifetime is a trademark of Kaeser Compressors, Inc.

©2017 Kaeser Compressors, Inc.

customer.us@kaeser.com

TECHNOLOGY TOOLBOX SHEILA KENNEDY, CMRP

IT’S A LOCK: SECURE YOUR NETWORK Vendors are joining forces to offer more-robust industrial network security solutions Industrial networks are not what they used to be.

These critical infrastructures now accommodate more systems, devices, and data than ever before, making security far more complex. The cloud, the internet of things (IoT), the convergence of operations and information technology, persistent cybersecurity threats, and a growing skills gap are among the forces heightening security challenges.

Fortunately, new monitoring and protection solutions and strategic alliances are helping mitigate risks and enable real-time, proactive control of industrial network security.

ACTIVE MONITORING

As the threat landscape evolves, companies need to recognize that assets operating in a connected environment must be protected, advises Tom Mueller, executive director of product management at GE Digital’s Wurldtech.

Wurldtech applies security in real-world OT environments with products and services that let customers identify and mitigate threats, Mueller says.

“Wurldtech’s technology solution, OpShield, monitors network traffic in OT networks, enforces policies, and blocks attacks at the application command level, helping reduce the attack surface in critical infrastructure,” he says. “The technology provides protection at the point where traditional or next-generation firewalls leave off.”

Indegy’s nonintrusive cybersecurity platform provides visibility into the critical control layer of OT networks. All activity – authorized or not, and regardless of whether the

INDEGY

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activity is performed over the network or on devices – is monitored, says Indegy CEO Barak Perelman. This helps eliminate security blind spots, Perelman says.

Indegy “uses deep-packet-inspection technology that builds a continuous audit trail of activity, including access to controllers – PLCs, RTUs, DCSs,” he says. “It captures all modifications and analyzes risk to devices.”

A nonintrusive joint solution integrates SCADAfence’s

NEW MONITORING AND PROTECTION SOLUTIONS ARE HELPING MITIGATE RISKS, ELIMINATE BLIND SPOTS, AND ENABLE REAL-TIME NETWORK SECURITY CONTROL. Industrial Continuous Network Monitoring with Gigamon’s GigaSECURE Security Delivery Platform. GigaSECURE aggregates and deduplicates network traffic and passes it to SCADAfence for continuous monitoring. IT and OT personnel are alerted to abnormal activity in real time.

“When combined, SCADAfence and Gigamon offer broader coverage of industrial networks to improve visibility,” says Yoni Shohet, co-founder and CEO of SCADAfence.

SECURE CONNECTIONS

Network, system, device, and data connections require special attention. ProSoft Connect from ProSoft Technology is a cloud-native platform designed for secure remote monitoring of automation systems. Its Container and Microservices architecture is designed to minimize vulnerability to attacks. The platform avoids the need for user-installed software, and there are fewer components as compared with a full VM and operating system. Containerized functions prevent potentially cascading issues.

“ProSoft Connect’s EasyBridge technology lets the user’s PC work as if it were directly connected to a switch on a remote network,” says Keith Blodorn, director of the wireless program at ProSoft Technology. “This kind of streamlined process lets users get right to their top priority – making sure they can monitor and troubleshoot devices worldwide from wherever they are.”

The SkkyHub cloud service and DataHub and WebView middleware products from Skkynet Cloud Systems are foWWW.PLANTSERVICES.COM JANUARY 2017 11

TECHNOLOGY TOOLBOX

HOLISTIC PROTECTIONS

PROSOFT

For Rockwell Automation, partnerships with companies like Cisco (for secure network convergence) and Panduit (to optimize physical network infrastructure) advance the goal of making networks remain robust, reliable, and secure, helping manufacturers reduce risk while boosting performance and reliability.

“Engineered solutions and integration services help in implementation to deliver that fully designed network infrastructure to the plant floor,” says Pat Murray, Rockwell market development director.

Email Contributing Editor Sheila Kennedy, CMRP, managing director of Additive Communications, at sheila@addcomm.com.

http://plnt.sv/1701-TT02

cused on ensuring the safety and security of SCADA processes, embedded devices, and financial information systems.

Skkynet’s IoT approach “needs no VPN, keeps all firewalls closed, works with corporate proxies, and yet allows twoway data communication at speeds that rival on-premises performance,” says Skkynet CEO Andrew Thomas.

REFERENCE WEBSITES: www.wurldtech.com www.indegy.com www.scadafence.com www.gigamon.com

www.prosoft-technology.com www.skkynet.com www.rockwellautomation.com

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Motors, like any other machines, are subject to wear and aging. Fortunately, condition monitoring solutions from ABB can identify possible weaknesses and defects at an early stage, while there is still time to take action.

– Life Expectancy Analysis Program (LEAP) assesses the condition of stator winding insulation and evaluates the insulation’s remaining life.

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ABB conditioning monitoring services – minimizing unplanned downtime, improving reliability and enhancing performance.

So you can identify possible failures before they happen. For more information on condition monitoring services from ABB, visit new.abb.com/motors-generators/service.

ABB Motors and Generators Service Team Tel 1-800-Help365 Email US-MotorService@abb.com

ENERGY EXPERT PETER GARFORTH

HOT TOPIC: DECARBONIZING HEATING Why greater heat efficiency is needed, and why it may need to be a group effort The commitment by most major companies to reduce

their carbon footprint is showing interesting shifts in priorities. For decades, most electricity has been generated by coal and natural gas. This produced a convenient alignment of the cost and carbon reduction benefits of efficiency aimed at reducing electricity use. Conversely, efficiency measures aimed at process and space heating usually yielded high carbon reductions but offered poor economics, especially where natural gas is as cheap as it is now in the U.S. The result has been predictable. Most corporate efficiency programs tend to prioritize electrical efficiency measures over thermal efficiency. Put simply, we are more likely to invest in efficient lighting, motors, and compressors than we are to rethink heat-based production processes or even improve insulation and windows in buildings.

Electricity is decarbonizing quickly in many parts of the world, including the U.S. This is driven by policy and market forces that serve to reduce coal and increase renewables and natural gas. The economics of electrical efficiency measures remain attractive, but the carbon reduction benefit is shrinking. The need to meet demanding carbon targets while maintaining sound economics is shifting businesses’ focus to cost-effectively decarbonizing heating.

As always, the first step is to reduce heat waste through end-use efficiency. In heat-intensive manufacturing, this inevitably means reconfiguring the process, which demands a high level of trust between the energy and production teams.

In buildings, the focus must be on the envelope efficiency.

The carbon reduction tends to be high; the economic gain, while attractive, is proportionally less.

Shifting focus to heat efficiency will inevitably lead to a discussion of acceptable returns. It’s common for energyefficiency projects to be asked to deliver one- to two-year paybacks, equivalent to returns in excess of 50%. Changing this to still-attractive levels closer to 25% may be needed to meet both economic and carbon challenges.

Allied with heat efficiency is heat recovery and reuse. The reality on many sites is that recovering heat can be costly and complex, and the available uses are relatively small as compared with the primary processes. However, the goal of decarbonizing heat will inevitably bring at least some heat recovery and reuse back into play. This is especially true where heat recovery is technically relatively easy, as it is with air compressors.

In some locations, using on-site combined heat and power generation (CHP) may reduce overall emissions. However, this will be the case only if the heat can be effectively used, and often it can’t. Many industrial sites already have high levels of heat waste, so adding CHP simply exacerbates the challenge of decarbonizing heat use. Despite this, local power generation may be economically attractive because of relative gas vs. electricity costs. This creates a risk of conflict

WE ARE MORE LIKELY TO INVEST IN EFFICIENT LIGHTING, MOTORS, AND COMPRESSORS THAN WE ARE TO RETHINK HEAT-BASED PRODUCTION PROCESSES. between the company’s economic and carbon goals, though.

These last two challenges of heat recovery and effective use of CHP within a single site raise the question of cooperation with neighbors. The bigger and more diverse the energy needs, the more likely that it’s possible to find creative and profitable energy solutions.

Pooling the waste heat potential with the heating requirements of multiple co-located plants has the potential to be a win-win. Creating a structure where waste thermal energy can be a communal resource can cut both costs and carbon footprint for all concerned.

Similarly, the diversity of processes from multiple sites is likely to make it easier to optimize the power and heat use from CHP when viewed as a shared asset rather than dedicated to a single site. If CHP can run at fuel efficiencies of 80% or higher, economics are likely to be good, and carbon footprints will generally drop. Similar end-use diversity may make sharing other assets, such as compressors or steam boilers, economically and environmentally viable.

The last step in decarbonizing heating will be to steer away from fossil fuel in favor of alternatives such as biomass or biogas. In most industrial settings, this is not a practical short-term option, but it may well be realistic in the not-toodistant future. The more efficient the overall heating system is, the easier it will be to migrate to alternative fuels.

Peter Garforth is principal of Garforth International, Toledo, Ohio.

He can be reached at peter@garforthint.com.

WWW.PLANTSERVICES.COM JANUARY 2017 15

PALMER’S PLANNING CORNER DOC PALMER, PE, MBA, CMRP

PLAN-IT FITNESS Get your maintenance planning game in gear to boost your plant’s profits Maintenance planning gives a

maintenance workforce a massive advantage in trying to increase company profit. Planning maintenance work helps plants keep assets running reliably because performing moreproactive activities can let plants avoid having to do reactive work to restore lost production.

The mission of maintenance is to maintain reliable operation. Proper maintenance is not about letting assets fail and then having to restore them to service. (That wouldn’t be “maintaining,” would it?) Yet, many good plants perform a significant amount of such reactive maintenance. Nevertheless, the good plants that strive to be great plants and that understand the true mission of maintenance ask, “How can we turn the corner and do even more proactive work when we have our hands full with reactive work?”

Maintenance planning answers this question by leveraging an understanding of maintenance wrench time.

So-called wrench time is the percentage of time that craftspeople

DISTRIBUTION OF TIME 40 30 20 10 0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Category

Most good maintenance forces operate at only about 35% “wrench time” (Category 1) with numerous other activities that do not move jobs ahead.

moves the job ahead. However, if that person stops work to walk to the storeroom and return with a spare part, the job momentarily stops moving ahead. So the time obtaining the part counts as a delay and not wrench time even though the person is obviously “working.” Consider as delays such circumstances as morning check-in meetings, obtaining new assignments, walking to or from jobs, obtaining parts or tools, asking for help, breaks,

PROPER MAINTENANCE IS NOT ABOUT LETTING ASSETS FAIL AND THEN HAVING TO RESTORE THEM TO SERVICE. move jobs ahead out of the total time they are available to work. First, take out vacation, training, and similar circumstances that make persons simply not available to work. Then consider the time they are on-site and available to a supervisor for work assignment. Next, for moving jobs ahead, think of a craftsperson at a job site turning a wrench. The person 16

JANUARY 2017 WWW.PLANTSERVICES.COM

putting away tools at the end of the day, and most travel. They are delays because although these activities make up part of a normal craft day and are certainly a cost of doing business, jobs do not move ahead during these times.

On the other hand, consider as wrench time most circumstances of persons actively doing just about anything to a piece of equipment at a job site or

in the shop and also include troubleshooting for unclear job scopes, LOTO involvement (although not waiting on others), confined-space attending, and even filling out job paperwork before, during, and after jobs.

With this conceptual definition of wrench time, it surprises most people that wrench time for good plants with good maintenance forces with everybody busy is only about 35% (see the above chart). That is, crafts average only about 3½ hours out a 10-hour shift productively moving jobs ahead out of the time they are available to do work. They average about 6½ hours (65% of their time) in other activities, not actively moving jobs ahead.

Furthermore, it’s notable that these good plants are at 35% wrench time across industries and cultures worldwide. Why is everyone at the same percentage? It is because at 35% wrench time, crafts “feel busy” and plants have “right-sized” their maintenance staff over the years to take care of operations (i.e., do reactive work).

Over time, when operators report an

increasing number of problems, causing the work backlog to grow, a plant hires additional maintenance staff. Yet also over time, when maintenance persons leave or retire, the plant does not immediately replace them if the backlog is not growing. Consequently, plants essentially size their workforce to be good at doing reactive maintenance.

This low wrench time presents a great opportunity because proper planning (and scheduling) can improve a maintenance force to 55% wrench time, so the merely good plant has an inherent capacity to do more proactive work. Best practice wrench time is 55% (not 80% as some might think), a level easily achieved and sustained. Improving from 35% wrench time to 55% wrench time might not seem like a huge gain, but the gain is much more than the apparent 20%. The gain is a 57% improvement (55/35=1.57). This means that a 30-person workforce would be performing the work of a 47-person force (30 x 1.57 = 47). Thus, the workforce of 30 persons gains an extra 17 persons “for free” to do extra work. Of most importance, any extra work is proactive work because the workforce has already been “sized” to handle all the reactive work!

Consider the financial leverage of such planning by using $50 per hour for a loaded (including benefits) craft wage.

(Many persons use $100 per hour.) The extra 17 persons are worth $1.8 million in labor alone (17 persons × 2,080 hours per year × $50 per hour). Furthermore, the industry rule of thumb that says that every $1 invested in extra proactive work contributes $10 to company profit means that proactive maintenance heads off more-expensive reactive work, but of more importance, it also increases reliable plant capacity.

Thus, a single planner who helps increase wrench time for 30 persons makes an $18 million (10 x $1.8 million) profit contribution.

Far-fetched? The hard-to-believe concept that most good maintenance workforces operate at only 35% wrench time means there exists an untapped source of extra labor for proactive maintenance. Merely good plants can turn the corner to reduce reactive maintenance beyond “normal” levels to become great plants with proper planning and scheduling.

Doc Palmer is the author of McGraw-Hill’s Maintenance Planning and Scheduling Handbook; he helps companies worldwide with planning and scheduling success. Visit www.palmerplanning.com or email docpalmer@palmerplanning.com.

Delivering leading-edge content by showcasing smart technology, reliable asset management and promoting a culture of safe, sustainable plant operations. www.plantservices.com

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LIGHT TOUCH Build the right combination of predictive tools and technologies to proactively monitor your electrical systems

How is industry tackling the problem of counterfeit parts?

What evolving OSHA standards and new technologies mean for electrical safety in your plant.

Build your CMMS dream team / P.15

Tools for Workforce Development / P.11

The secret to reliability liftoff / P.23

Build Your Reliability Strategy / P.32

How (and why) to train operators on maintenance / P.40

Get Your Stuff Together: A Road Map for a Better Storeroom / P.38

The key to IIoT: Interoperability / P.43

Robotics Safety Gets an Upgrade / P.42

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Your 3-point strategy for control system maintenance / P.17

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Heinz Bloch: Keep expanding your skills to survive / P.19

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High tech gets productive & personal

SUSTAIN PdM SUCCESS Recognize the seven critical success factors that keep strong predictive maintenance programs on track

Find the right leaders to breathe new life into your PdM program

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IIoT-Enabled Monitoring Equipment / P.11 Industry Leaders Sound Off on PdM Survey / P.19 Energy Monitoring Double Feature / P.32 & 34 How (and Why) to Calculate OEE / P.41

2O16

What context-aware technology means for your plant

PdM FORECAST NEW SURVEY: Readers want more from PdM / P.30

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AUTOMATION ZONE DAN MATTHEWS, IFS

BUSTING 3 IIoT MYTHS Don’t let these misconceptions be excuses for not getting your plant more connected There’s no doubt that the industrial internet of things (IIoT) market is evolving quickly. International Data Corp.

(IDC) predicted in a 2016 report for IFS that the installed base of IoT endpoints would grow from fewer than 13 billion units at the end of 2015 to 30 billion by 2020. The industries that IDC predicts will spend the most on IoT solutions are manufacturing, transport, energy and utilities, and retail, with a wide range of IoT use cases.

In other words, the industrial IoT clock is ticking, and businesses not already addressing the opportunity offered by the IoT need to create and implement their plans – quickly.

So why are some companies still hesitating? One answer is that there are several misperceptions or myths regarding the IIoT that are causing decision-makers to hesitate and sometimes delay or stop an IIoT project altogether. A heavy focus on standards, exorbitant expected costs, and the fear of big changes all are cited as reasons for not pursuing IIoT projects. Let’s take a closer look at these.

MYTH #1: WE SHOULD WAIT FOR STANDARDIZATION

BUSTED! Unlike consumer markets, where standardization – formal or by market dominance – is key to success, for the IIoT, standardization won’t be a concern for decades.

Sure, there are multiple emerging standardization initiatives in the IIoT, and it’s not yet possible to know which will grow or be marginalized. But the thing is that it doesn’t matter. In consumer markets, new standards for, say, NFC chips in smartphones can roll out and get near-full market presence in the few years it takes for people to replace their phones. But industries are run on equipment that is anywhere from years to several decades old. This equipment has been provided by tens or hundreds of different suppliers.

Even if the equipment manufacturers “IIoT-enable” their latest generation according to some IIoT standard, it will take decades before industries have replaced all their existing equipment and assets with new IIoT-standadarized versions. For the foreseeable future, we won’t see standards on how to connect up all industrial things. Instead, industries should expect and plan for bespoke integration development or even retrofitting of other sensors and communications capabilities to equipment and assets to get them connected.

MYTH #2: IIoT WOULD BE A GIANT LEAP FOR MY BUSINESS

BUSTED! IIoT success is all about choosing small, action-

able steps that will improve your business today – not aiming for giant leaps that will transform your industry tomorrow. For many people, the IoT still brings to mind disruptor companies like Uber or Netflix. But in most cases the IIoT develops rather than disrupts the entire business. According

A LOOK AT THE VAST MAJORITY OF COMPANIES THAT HAVE ALREADY OPERATIONALIZED THE IIoT SHOWS THAT THE SUCCESSFUL ONES OFTEN HAVE STARTED WITH A FEW WELL-CHOSEN PROCESSES AND INCREMENTAL CHANGE. to the previously mentioned IDC report, the main drivers behind IIoT are improvement of day-to-day operations, including improved productivity (14.2% of the companies), improvement of quality and time-to market (11.2%), process optimization improvement (10.2%), reduced costs (9.9%), and improved decision-making (9.3%).

A look at the vast majority of companies that have already operationalized the IIoT shows that the successful ones often have started with a few well-chosen processes and incremental change. It can begin with connecting just one piece of equipment. Earning a little more revenue from this can then inspire us to take a bigger step. What would happen if we integrated these findings with input from another data stream – external events, such as weather forecasts or temperature changes, for instance? How could changing operations on this machine according to these inputs optimize its performance?

The key is to ask, “How can we make this a little more efficient?” not, “How can we revolutionize our whole business?” Incremental change is the name of the game. The IIoT is about improving performance.

MYTH #3: IIoT WILL BE EXPENSIVE AND CAPITAL-INTENSIVE

BUSTED! A few years back this statement might have been true, but three key developments have made IIoT implementation more affordable than ever before: • The falling price of IIoT hardware and software: Everything from the smallest sensors to the largest gateways has WWW.PLANTSERVICES.COM JANUARY 2017 19

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fallen in cost. Smarter, cheaper sensors and gateways are available to all industries, allowing you to increase your level of software control. If we take as a typical example a forklift truck, 10 years ago, connecting one of these would have cost at least $1,000 – out of reach for most logistics and manufacturing operations running several of them.

Today a single forklift could be connected for not much more than a 10-dollar note.

• Cheaper, broader internet access: This has made it evereasier to connect a broader range of machines and equipment across a wider geographic area at a low cost. New developments such as 5G mobile networks and LoRa will help ensure that this trend continues.

• Cost-effective IoT cloud platforms: On the platform side, we’ve seen big, exciting changes. Ready-to-use cloud-based IoT platforms that can handle massive scale, storage, and computing are now more widely available than ever before.

These three changes have made it possible for companies to get started with IIoT projects more quickly and with lower risk than before, enabling more experimenting to reach success.

OPERATIONALIZING DATA: THE KEY TO IoT SUCCESS

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Beyond buying into these IIoT myths, many companies overlook the critical issue of how their IIoT data should be operationalized. To get returns from IIoT investments, it’s important not to stop at collecting and analyzing IoT data. If you do only that, you still have not made a dollar. To benefit from the IIoT, the knowledge and insight you gain needs to be turned into action that optimizes your business – whether that’s in the form of a more-optimal maintenance plan, higher service levels, improved logistics, better-engineered better products, or entirely new business models.

This can be done in several different ways, but one key step in operationalizing your data is automating the right processes based on gathered data. To illustrate with an example: Equipped sensors capture data about too-high temperatures. Instead of just collecting, registering, and manually acting on this data, a process is created for automatically dispatching service personnel to replace a part that has suffered overheating – thus preventing future catastrophic failures. Operationalizing and automating: This is when the true power of the IIoT comes to life and can generate significant revenues.

Dan Matthews is CTO at IFS (www.ifsworld.com).

In that role, he leads the company’s Research & Strategy unit. Before joining IFS in 1996, Matthews ran his own software development business.

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BOB MCILVRIDE, SKKYNET CLOUD SYSTEMS

IIoT: THE RIGHT TOOLS FOR THE JOB Know your security, speed, and data access needs as you work to connect your plant The American poet Carl Sandburg wrote, “They will go far and see much, and they will never be any good for sitting with the sitters and knitting with the knitters.” As true today as it was almost 100 years ago, those who sit tight and stick to their knitting rarely accomplish much. Right now in the world of manufacturing and industry, a new horizon is opening up: the industrial internet of things (IIoT). Are you curious? Do you want to go far and see how much you can do with it, or will you just sit back and knit?

Even from a distance, the benefits of the IIoT are visible.

Plant Services contributing editor Sheila Kennedy highlighted many of them last August in her article “Yes, IIoT Can Drive Operational Improvements.” Put briefly, the IIoT offers a number of ways to optimize your system performance by providing data-driven insights into your processes. Among other things, you can see how well your assets are performing, implement predictive maintenance, simplify logistics, coordinate procurement, and drive down resource costs.

OK, you may say, that all sounds fine. Suppose I am interested. How will it work? Can the IIoT fit with my current system? How much will all of this cost? What about security? And supposing I do want to build IIoT connectivity and capabilities in my plant, how should I get started?

Should our company try this on our own, or should we seek expert outside guidance or assistance?

Taking the last question first, building your own system from scratch may not be the best way, according to those who have tried it. Bringing in an outside expert always involves the challenging task of deciding who’s most qualified for the job, but a recent Machina Research survey, “Lessons Learned from Early Adopters of the IoT,” shows that most early adopters in the IoT space who took a do-it-yourself approach found the task to be more complicated to implement than they had expected.

“When asked about primary concerns around IoT, adopters have some insight that nonadopters just don’t yet have,” the report’s authors wrote. “Adopters point to ‘complexity of the IoT solution’ as the largest concern around IoT, a concern that nonadopters have yet to consider fully.”

CHOOSING THE RIGHT TOOL

Whomever you choose, an in-house team or a system integrator, you can save a lot of time and money by not reinventing the wheel. You can benefit by using tools, and you’ll

want to choose the right ones. Because the IIoT looks a lot like SCADA, some may be tempted to continue using the same tools. This can be a mistake, though, because industrial data communications software was not built for the open spaces of the internet.

Take security, for example. The IIoT presents security challenges that industrial system designers never contemplated. First, there’s the obvious need to eliminate the

A WELL-DESIGNED, CLOUD-BASED IIoT SYSTEM DOES NOT REQUIRE MUCH UPFRONT INVESTMENT IN TIME OR MONEY.

chance of attack from outside the perimeter. But there’s also a need to protect the system and its data from inside as well.

Using designed-for-IT approaches like Microsoft’s RDP or a VPN may seem like the logical choice, but Microsoft Developer Clemens Vasters raises valid concerns in a paper titled “Internet of Things: Is VPN a False Friend?” Useful as they are for the purposes for which they were designed, RDPs and VPNs give each user the keys to the kingdom – access to applications and data far beyond what they might need or what you might want them to see. The 2014 attack on Target via a VPN shows how dangerous and costly that can be.

What is needed is a secure-by-design technology that does not rely on a VPN and keeps all firewall ports closed. This can be done by making outbound-only connections to a secure cloud service. This design exposes zero attack surface and makes your system invisible to hackers. At the same time, it allows for bidirectional data communication through reverse proxies, which corporate IT departments are increasingly recommending as a standard for ensuring the security of OT systems. Needless to say, developing this kind of technology from scratch is not a project for your average plant engineering team. Instead, you can get the most out of your team and keep costs down by using a tool designed for the job.

The tool you choose should also support real-time data throughput speeds at scant milliseconds above network or internet latencies. Ad-hoc approaches like collecting process data in an SQL database and then accessing it from the cloud will slow down your applications like a sloth at the DMV in WWW.PLANTSERVICES.COM JANUARY 2017 21

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“Zootopia.” You won’t get the response you need. Use of the internet shouldn’t mean compromising on speed.

And the tool should be convenient.

It should fit unobtrusively and connect

seamlessly with any new or existing system, with no need for programming and no dependencies. If the outside network or the internet goes down, your primary control system

should experience no effect whatsoever. The IIoT should be considered as data access or at most supervisory control. All low-level control should be completely isolated.

START GRADUALLY

With the IIoT team assembled and tools in hand, start gradually. There is no need to tackle a huge project.

Pick the low-hanging fruit. You may be able to connect sensors, monitors, or other devices in different locations and aggregate their data or even bridge their data sets.

A well-designed, cloud-based IIoT system doesn’t require much upfront investment in time or money. If you work with a provider who offers a monthly subscription, you should be able to start a pilot project for as little as $100 per month. And if the service is reasonably complete, it should take only a few days to get up and running. Of course, you’ll need to ensure that such a system meets your specific needs, whether that means offering data archiving options, web-based HMI, access to analytics packages, or something else.

The adage “well begun is half done” applies here. If you work with a good team, choose the right tools, and start with something manageable, chances are you will succeed. Once you have some initial experience, your next project can be more elaborate and ambitious. Soon you’ll see for yourself what the IIoT can do for you and your bottom line.

Bob McIlvride is director of communications at Skkynet Cloud Systems (www.skkynet.com). Skkynet is a partner member of the Control System Integrators Association. Visit the company profile on the CSIA Exchange (www.csiaexchange.com), and contact McIlvride at bob.mcilvride@skkynet.com.

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JEFF SHIVER, PEOPLE AND PROCESSES INC.

6 STEPS TO PROJECT LEADERSHIP SUCCESS How to deliver what your organization will want to see with a new initiative With the speed of change being what it is today, you may find yourself tasked with spearheading a new initiative seemingly overnight. Most likely, your business will challenge you with a list of objectives to meet as part of this initiative, and as you get to work, your organization likely will be watching for indicators of future success. So will you succeed? Look no further than your existing culture for clues.

Culture is a grouping of self-sustaining patterns. Those patterns include how people feel, think, and behave and in what they believe. At its worst, culture can put the brakes on reliability and emotional commitment. Long-term success is jeopardized. When things have gone wrong, how many times have you heard, “But this is how we do it around here”? Culture determines how things get done. At its best, culture energizes people. They become engaged and emotionally committed. They feel good knowing how they are contributing to meeting the organization’s priorities.

Don’t get caught up in thinking that you can change organizational culture swiftly. Rome wasn’t built in a day, and neither was your culture. It is not like a piece of equipment; you can’t just swap it out. Those who try to promote swift culture change annoy people and destroy good intent.

It’s common to see banners go up on walls declaring the new ways. Yet under those same banners, people go about their work using the same old habits. Habits are slow to change.

True culture change can take upward of 3–5 years.

Management does not have the patience for slow change, however. Organizations go bankrupt in less time. But in promoting swift change, managers fail to realize that old ways are self-renewing. Formal change efforts rarely get to the heart of what makes people tick – the motivators that drive them. Thus, change is not anchored. Often when some level of transition does occur, it’s short-lived. Before long, people slide back to their old, comfortable ways. The employees see the initiative as a flash in the pan or a flavor of the month.

Studies continue to show that 60% of organizations are reactive; that figure has not changed in more than 20 years despite all the efforts otherwise.

1. To achieve success, work within your culture rather than trying to swap it for new. Typically, cultures are neither all bad nor all good. The first step is to understand your culture: You must be able to identify and define the traits likely to be a help or a hindrance.

2. Recognize that culture is more a matter of doing than talking. Instead of focusing on swift change, focus on changing behaviors to drive culture transformation.

Once behaviors are changed, hearts and minds will follow. Let those behavior changes become your wildly important goals (WIGs), and ideally, limit yourself to three WIGs. Changes to behaviors are tangible. We can act on them, repeat them, observe them, and measure

DON’T GET CAUGHT UP IN THINKING YOU CAN CHANGE ORGANIZATIONAL CULTURE SWIFTLY. ROME WASN’T BUILT IN A DAY, AND NEITHER WAS YOUR CULTURE. them. A good way to start with behaviors is to relate them to empowerment. Translate these into simple, practical steps that people can take every day. Think about how you can enable people to make decisions in small groups or individually and act. Rather than pushing behaviors down, ask people to help develop new behaviors. It is much easier to buy in to something you helped design. Think ownership. Link the behaviors to business objectives and initiatives.

3. E ducate people by painting a vision not of a theoretical future state, but of the behaviors you are trying to drive. Too often organizations neglect to teach people how to apply best-practice principles to change their behavior and fail to provide tools to help them change.

In some cases, an on-site course might be required to provide personnel with enough detail to understand how to modify their behaviors. Make it easy for people to translate their behaviors into business objectives.

Answer the question, “What’s in it for me?” For example, there are numerous organizations that perform basic work execution practices such as maintenance planning and scheduling. Training a single planner/ scheduler will not transform an organization’s approach. Production and management philosophies can easily prevent the most basic planning and scheduling approaches from being implemented unless those groups are trained and achieve buy-in.

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4. Work hard to demonstrate business results quickly.

You want to establish and retain continued management support. Determine which measures reflect the behavior change you are seeking. Measure them and share the numbers. Collect success stories. Be sure to reward teams, not heroes. Success begets more success.

5. Don’t forget to leverage your informal leaders to drive changed behaviors. These are often your most collaborative people. These individuals often lack formal authority from a positional role and as such tend to be overlooked.

They develop strong relationships across many functions, however. Because of this, they can facilitate the connection of people and behaviors. Call on some of these informal leaders, those who respond positively to what you’re trying to do, to help implement and spread new behaviors.

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company

6. Audit frequently. To sustain a behavior, it must become habit. Sitting behind the desk is a dangerous place to watch the world pass by. You must get in the field, observe what is happening, and reinforce the behaviors you are trying to achieve. Now is not the time to be conflict-averse and to look the other way when you see old behaviors self-renewing. Other managers must also reinforce the desired new behaviors. Ensure that people feel good about demonstrating these new behaviors so that you can tap into their emotional commitment to keep effecting them.

Use of these six steps will allow you to transform the culture over time while still achieving your business objectives in shorter time frames. Focusing on behaviors makes that change much more actionable, as behaviors reflect doing. In doing this, you can tap into an incredibly powerful force: the emotions of your people to sustain change.

Jeff Shiver is a founder of People and Processes Inc. (www.peopleandprocesses.com) and is the member services director for the Society of Maintenance and Reliability Professionals (SMRP). Contact him at JShiver@PeopleandProcesses.com.

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COVER STORY / IIoT

by Jason K

asper, LNS

Research

agement

le man c y c e f li t e s g as

D

igital transformation, the industrial internet of things (IIoT), and smart connected assets have been prominent themes over the past 12–18 months. For the most part, these have been separate focus areas in industrial organizations. In fact, however, they’re closely related topics. As pilot projects take hold in a variety of industries, no one industry has the lead; many are finding small wins and value. This is creating a larger opportunity for investments in technology and transformation in 2017. This means that pilots are successful, so expansion into larger asset bases or different parts of the business will occur.

These enabling technologies and related transformational efforts are letting organizations gain competitive advantages. The early adopters of this new paradigm can expect lower overall operations costs thanks to improved asset reliability, longer asset life, and lower decommissioning and disposal costs. What is missing is a discussion of the larger picture of these projects’ potential effects on the asset lifecycle and what it all means for operations and maintenance moving forward in the IIoT era.

At the heart of the discussion should be a commitment to understanding everything this new era touches related to the asset. This includes changes in the technology architecture: The asset becomes smart; the workforce becomes empowered; and applications evolve. Understanding the new asset lifecycle era in IIoT is a key focus for LNS Research, and the firm believes emerging technology will continue to play a prominent role in asset lifecycle management.

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JANUARY 2017 WWW.PLANTSERVICES.COM

THE ROLE OF DIGITAL TRANSFORMATION, IIoT PLATFORMS, & SMART CONNECTED ASSETS

Digital Transformation Framework

Digital transformation means shift ing to new production, business, and customer engagement models and enabling unprecedented business possibilities. These can include packaging services of industrial equipment, selling capacity instead of capital, and improved performance. For industries that rely on physical assets to produce the goods and services they deliver, smart connected assets (SCA) are at the heart of digital transformation efforts.

Smart Connected Assets

© LNS Research, 2017

formin s n a r t is T o How the II

One of the strategic objectives we see asset-intensive organizations beginning to pursue is smart connected assets. We define SCA as those assets a business uses to produce and deliver its goods and services that can sense and respond to internal and external environments as intelligent agents.

This means they are aware of and can react to: • Design and configuration • Past performance • Predicted future failure • Raw material • Environmental impact • Other factors, such as customer requirements or supplier performance These assets are more than just digital sensors connected to a control system. Smart connected assets allow an enterprise to move beyond real-time control to predictive control and possibly autonomous operation.

The glue that holds these efforts together for transformation and assets is the emergence of IIoT platforms. No offering today can provide everything required to enable asset lifecycle management in an IIoT era, and possibly this may never occur. This is a big reason why moving forward now

arch, 2017 © LNS Re se

with pilot projects is so important: Doing so will help you figure out what works and what doesn’t for your business so your organization can build a platform that works for it. Understanding key platform components is a good first step here; a best-in-class platform should consist of cloud services, big data and analytics, connectivity, and application development capabilities.

IIoT AS CATALYST FOR OPERATIONAL ARCHITECTURE

A larger challenge organizations face as they make the leap with IIoT platforms is making the transition from an IT-centric view typical of classic enterprise architecture (EA) activities to a focus on the day-to-day operations of the business. When applying EA to daily operations, companies need to think in new terms: specifically, in terms of operational architecture (OA).

Operational architecture takes the discipline of the IT domain and its EA activities and translates them to reflect the operational side of the business. It is only natural that we think of operational architecture as the culmination of the IT and operational technology (OT) convergence. LNS Research strongly believes that OA is critical to executing a successful asset lifecycle management approach in an IIoT era.

WWW.PLANTSERVICES.COM JANUARY 2017 27

COVER STORY / IIoT

© LNS Research, 2017

Operational Architecture

A NEW WAY OF THINKING ABOUT THE ASSET LIFECYCLE

Traditionally, the asset lifecycle has been viewed as a silo, with only operations and maintenance responsible for “plan, do, check, and act” processes from an asset’s design until its death.

In an IIoT era, this changes as assets evolve digitally and physically. More touchpoints occur with outside groups that hunger for data that can help manufacturers, suppliers, sales and marketing departments, and customers. This means that we need to think of the asset lifecycle as a platform. The notion of connected platforms comes the consumer world: Think of the success of Facebook, Snapchat, Instagram, What’s App, etc. These solutions ultimately became successful because of the size of connections made.

For industrial platforms to take hold, we need to go beyond IIoT thinking and bring the platform to what’s of value to connecting in the first place – the asset. It’s not just 28

JANUARY 2017 WWW.PLANTSERVICES.COM

about connecting an asset, adding more sensors, and enabling predictive analytics; it’s about creating as many connections as feasible to that asset throughout its entire asset lifecycle.

For social media platforms, this means people, but it’s also advertisers, the analytics to direct to whom to send a message, the momentum of stories and collaboration, and getting as many people on the same platform to scale and creating value exponentially.

This means connecting assets, services, workforce, suppliers, manufacturers, sales and marketing, operations, and maintenance together on one platform, with many applications that span specific users or use cases to enterprise apps for many. Following are some of the innovations that begin to emerge in an IIoT era.

As technology has progressed, we have seen an evolution from break/

fix reactive maintenance to conditionbased maintenance (CBM) and, ultimately, to the holy grail today: predictive analytics. In the past, the prohibitive factor in moving from reactive to predictive maintenance was the high cost of sensors and network connectivity. Now the convergence of cloud and big data is enabling cheaper infrastructure costs, increased flexibility, and greater processing power.

There are two levels to consider when talking about becoming prescriptive.

The first is the ability to understand and prescribe which maintenance activity or activities should be taken to postpone or prevent asset failure.

The second is the ability to prescribe operational changes to alter the profile of the equipment to delay or prevent the failure. The first is important to become maintenance-smart, while the second enables operational excellence.

Big Data Analytics Framework

© LNS Research, 2017

As with any initiative, there are strategic concerns and tactical elements to consider. The OA exercise helps clarify and separate strategy from tactics and aids an organization in understanding where it is today and defining where it needs to be to accomplish its business objectives. It provides the map for how to get from the as-is to the desired state.

Early indicators show that organizations that adapt smart connected assets gain a competitive advantage and can be more profitable in doing so. As asset-intensive industries move from traditional analytics toward predictive and prescriptive analytics, the insights are an opportunity to provide better services. These analytics will incorporate new sources of data, such as video and geospatial data, as well as new algorithms via machine learning to further push organizations to evolve to present new business models and competitive offerings.

One opportunity is in employing a smart services model with the manufacturer of the equipment you’re investing in.

This removes the learning curve and makes the manufacturer responsible for monitoring, analyzing, and acting on the asset if it is predicted to fail. The second opportunity is in vendors selling capacity instead of the physical asset itself.

Organizations are buying the capability of the machine with guarantees of uptime. This allows companies to become more competitive in their customer base offerings. They can deliver products at a lower price or with a higher level of service because of supplier agreements and confidence in a consistent and reliable manufacturing process.

MOVING FORWARD WITH ALM IN AN IIoT ERA

In the pursuit of asset lifecycle management in an IIoT era, it is important to understand potential obstacles. There is a direct correlation between knowledge about new technologies such as the IIoT – an integral component of both smart connected assets and digital transformation – and the ability to build a business case and therefore get the funding required to execute.

A common strategy across all industries is to start small with pilot projects. This approach provides the opportunity to learn about the capabilities available from technology providers and equipment manufacturers as well as what works best for each case and then build a larger future business case. Findings provide the proof needed to address executive leaders’ concerns and get executive buy-in to fund bigger projects.

Leveraging data to enable new business models is in its infancy, but we are hearing more customer stories on the opportunity it presents. According to our research, a nearmajority of industrial companies, 47%, have not deployed smart connected assets and therefore are not getting the APM data these assets so richly provide. Another split is in the remaining 43% that do have assets generating APM data; more than half of these will not allow suppliers to access it. This is a missed opportunity in companies’ relationship with suppliers.

If companies share data, they more than likely will reap benefits such as improved product designs and pre-emptive fixes to support warranty issues. More proactive organizations do at some level share their APM data, either with proactive or diagnostic-level support. Starting here allows asset-intensive organizations to understand how suppliers use the data and can be the first step in requesting smart services or usage based asset models.

For the small percentage of forward-thinking companies that have taken advantage of the full smart connected assets opportunity that exists today, benefits are accumulating on multiple fronts. This is apparent in particular from reliability’s impact on operational performance, as measured in part via overall equipment effectiveness (OEE). As the product of availability, productivity, and quality, asset reliability can affect all three of those factors, meaning that organizations with higher reliability will show higher OEE. Looking at organizations that have real-time visibility into APM data vs. those that do not, we see that those that have the capability exhibit a substantially higher OEE performance than those that do not, with a median OEE of 75 vs. 67.

IT’S ALL ABOUT THE PLATFORMS

We are in the early phases of transforming asset lifecycle management in this era of IIoT. A thoughtful approach to leveraging these changes is a switch to an operational architecture point of view. As more and more pilot projects lead to success and expand to larger enterprise projects, a more-holistic view will be required to understand the relationships that change and improve within the asset lifecycle.

© LNS Research, 2017

What are the top challenges in deploying IIoT technology?

WWW.PLANTSERVICES.COM JANUARY 2017 29

COVER STORY / IIoT

© LNS Research, 2017

Which statement best describes your attitudes toward APM services provided by the vendors of the smart connected devices in your facility?

For those ready to act now, here are some key considerations for asset lifecycle management in an IIoT era: • T he IIoT is a transformative technology trend that will change the definition of IT-OT convergence, system architecture, organizational structure, and business models: Smart connected assets, whether legacy or new,

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will play a crucial role in generating the value of operational architecture.

• Look to vendors that can deliver the needed capabilities of an IIoT platform: They should have an open view of technology platforms, as proprietary capabilities will be arduous to work with long-term.

• Vendor collaboration is critical for delivering on the vision of smart connected assets and operations: There will not be a one-size-fits-all approach, so look to vendors with strong partnerships that can provide a broad reach across the platform.

• Take the first step in the business-case journey by preparing technically for what is to come. The best approach for this is a pilot. Understanding at a small scale how things work improves the plan and helps develop the value to move to a larger scale.

• Do not forget people and processes and their connection with operational performance benefits and ROI: As the information begins flowing, new ideas and resources will be required. Processes will change; staying on top of this will extend competitive advantages and can be a value multiplier.

Jason Kasper is a research analyst with LNS Research, which provides advisory and benchmarking services to help line-of-business and IT executives make decisions across areas including the IIoT, digital transformation, and operational excellence (www.lnsresearch.com/blog). Kasper’s primary focus is on asset performance management with collaborative coverage across sustainability, energy management, and IoT/machine-to-machine (M2M) practice areas. Contact him at jason.kasper@lnsresearch.com.

WORKFORCE / KPIs

How to use KPIs to drive behavioral change New software and other tech tools can help you compel continuous improvement

by Sheila Kennedy, contributing editor

Ideally, key performance indicators

KPIs ARE MAKING A DIFFERENCE

(KPIs) reflect a company’s strategic objectives and compel continuous improvement. In practice, this isn’t always the case.

KPIs are wholly ineffective if they don’t drive positive change. If the data is not timely enough, the corrective actions are not prompt enough, the wrong information is measured, or no action is taken, KPIs’ full potential will never be achieved.

Fortunately, there are new, more-efficient ways to access KPIs and put them into action.

In the past, specialists needed to pull data from multiple systems into a spreadsheet, perform the analysis, and present the data to decision-makers. New software and technology options enable a more streamlined approach. Rather than waiting weeks or even months to receive reports, executives can now sometimes instantly receive actionable KPI data and analytics in dashboards and reports. Some software tools even go so far as to identify the root cause of problems and suggest possible solutions.

The following experiences of four reliability professionals hint at the many ways KPIs can drive behavior, for better and sometimes worse. A summary of innovative KPI enablers reveals how it is becoming much easier to spur positive change.

KPIs encapsulate large quantities of information into relevant snippets, making it easier to stay on top of trends, evaluate options, and formulate action plans. Leaders from the C-suite, the plant floor, and external service providers need this high-quality information as fast as possible to make the best, most timely decisions.

BorgWarner, a supplier of automotive parts and systems, is a very data-driven business.

“We keep our finger on the pulse of the manufacturing process by being aware of subtle changes in performance through our KPIs, taking action at the appropriate levels and times to eliminate any possible impact to our quality and productivity goals,” says Wilfred Venet, reliability engineer at BorgWarner PowerDrive Systems (www.borgwarner.com).

“We have evolved in my short term with BorgWarner as a result of the extensive use of meaningful KPIs,” adds Venet. “I have seen a cultural growth in terms of communicating opportunities with supporting data from several perspectives, allowing people of various levels in the organization to recognize their potential in contributing toward goals and objectives.”

At CB&I Peruana S.A.C. (www.cbi.com), reliability & CBM leader Victor Manriquez

WWW.PLANTSERVICES.COM JANUARY 2017 31

32

JANUARY 2017 WWW.PLANTSERVICES.COM

BorgWarner depends on software and dashboards to enable its KPI-driven improvements.

Source: IFS

manages according to the KPIs included in his client’s service level agreements (SLAs). “KPIs show us how the maintenance contract that we are involved in is performing in relation to the KPI clauses, and to the values that the client expects as result of our performance. It allows us to look at what measures we have to take in order to meet the contracted KPIs,” says Manriquez.

For instance, if the maintenance backlog values are high, his team will analyze the work orders to determine what kinds of tasks and what equipment are draining their labor resources.

“We are not chasing the KPIs, per se, anymore. We see the KPIs as a result of our actions,” explains Manriquez. “If we find any kind of deviation in the main KPIs, we look to find where to improve in order to manage the deviation.”

Amber Monceaux, reliability engineer at Solvay Specialty Polymers (www.solvay.com), says that KPI monitoring has had an overwhelmingly positive impact with very few exceptions. “In my previous role as maintenance manager for another polymer manufacturer, we started off way behind the curve. We had no KPIs, an ineffective maintenance management system, and a minuscule maintenance budget.

We spent most of our time ‘bailing water,’” she says. Then the company standardized all sites on one computerized maintenance management system (CMMS). “It allowed me to monitor several KPIs – the most significant at that time being storeroom stock-outs and mean time between failure (MTBF).”

Over time, her team was able to reduce the overall stores value and nearly eliminate stock-outs by making changes such as correcting the inventory levels in the system. The tracking of MTBF from their CMMS dashboards revealed a few failure modes that were happening across

Source: BorgWarner

WORKFORCE / KPIs

Some operational intelligence tools deliver real-time visibility into current and forecasted operational issues and even identify likely solutions.

multiple pieces of equipment, and they very quickly realized where extra time and attention was warranted.

Maintenance began to ask the right questions and lead initiatives to solve problems, after which the seeds of a reliability-centered culture began to take hold, she remarks.

Every positively changed behavior had a marked effect on plant reliability and uptime. “The greatest example is how my first maintenance crew

transitioned from parts changers to troubleshooters – a change that was relatively easy to accomplish,” says Monceaux. “They used to look to me for direction and would comply, whether it was a good or bad idea.

Finally, we began coming together as a team whenever a significant failure occurred and would brainstorm, troubleshoot, plan a solution, and apply a permanent fix. Eventually, this became ingrained in our culture.”

Percent of Planned Work Percent Overtime

Maintenance Cost per Unit Produced Expediting Costs

KPI Trees help to identify role-specific KPIs for department and business objectives.

Spare Parts Cost as a Percent of Total Maintenance Costs

The only somewhat negative experience she had with KPI monitoring was regarding a shift board used to hold each shift accountable for housekeeping. “The areas that were on the board were cleaned, so in that sense the board worked. But in many cases the mess was simply moved to another area,” explains Monceaux. “I guess the lesson here was that KPIs need to evolve over time, especially once you have started to meet your goal in that area.”

James Kovacevic, principal consultant at High Performance Reliability (www.hpreliability.com) and host of the Rooted in Reliability podcast (www.reliability.fm), agrees that KPIs have the ability to drive changes in behavior almost immediately, but some changes are not always positive.

“Negative changes are generally unintended,” he explains. “For example, if the KPI is ‘overtime percentage,’ a supervisor may elect to forgo a Saturday maintenance shift, leaving some preventive maintenance (PM) work orders incomplete. The intention might have been to reduce costs, but maintenance costs will actually increase over time due to poor equipment reliability from reduced PM compliance.”

With properly selected and balanced KPIs, he has seen organizations drive up PM compliance from a low of 63 percent to a high of 95 percent and

Stock Outs

sustain it. And with proper storeroom KPIs, he has seen a reduction of 30 percent of the storeroom value while service levels improved.

“The key is to connect the KPIs with the individuals performing the work,” says Kovacevic, giving as examples “percent maintenance cost per unit” to the maintenance department, wrench time for the planners, overtime for the supervisors, and stock turns for the storeroom. Kovacevic recommends using a KPI tree to help identify rolespecific KPIs for departments and their associated business objectives.

“KPIs don’t just drive business performance improvements; they have the ability to improve employee morale,” adds Kovacevic. “When employees know what they are measured on, they will work to meet that objective and not feel slighted by performance evaluations.”

DATA SOURCES AND KPI REPORTING TOOLS

Most CMMS, enterprise asset management (EAM), and enterprise resource planning (ERP) systems are capable of tracking KPIs to some extent. For more advanced analytics, these systems may be supplemented by business intelligence (BI), performance management, or operational intelligence software.

Source: High Performance Reliability

Wrench Time

“Many business intelligence projects fall short because they are not adequately tied to strategic priorities or objectives,” says Chuck Brans, vice president of IFS’s EOI Global Competency Center. “So while KPIs are great, it really comes down to the ability to pull data from an enterprise application that tracks things down to a point of work execution, and then compare that to data from other systems that do not track to that level.

Once you can do this, you have a single version of the truth that delivers actionable data in real time.”

Though the branding and capabilities of the analytics software may vary, there is some commonality in their purpose. Business intelligence solutions will alert management when a KPI or SLA threshold is nearing, but separate steps may be needed to determine what is causing the problem and why. Performance management is similar in that it will identify where a performance problem is occurring, but may not explain why it is happening or suggest corrective actions. Operational intelligence solutions, on the other hand, strive to alert, explain, and offer prescriptive solutions.

The best analytics solutions capture knowledge from multiple enterprise systems, such as ERP, CMMS/EAM, human resources, contracts, and CRM. They build data relationships and can accommodate embedded algorithms. With time, the software develops its own tribal knowledge.

Advanced solutions also alert managers to threshold breaches with more specificity. For instance, they may point to a resource problem, a part problem, or a procedure problem.

Some will attempt to identify the root cause of the issue, and some may even suggest options for corrective action.

These solutions also place focus on the most important processes, so that time and money is no longer wasted making improvements that have little bearing on strategic objectives or the bottom line.

WWW.PLANTSERVICES.COM JANUARY 2017 33

WORKFORCE / KPIs

work order data to find more insights about the assets, tasks, and so on. We will use different filters and presentations to fulfill the needs of the different areas of our organization for the maintenance service.”

“A CMMS or BI system will help, even though I have seen successful organizations use only a spreadsheet,” remarks High Performance Reliability’s Kovacevic. “Tools that enable real-time analytics allow the team to identify any issues and take corrective actions before it is too late. Manual reporting and period reporting do not allow this quick response.”

Kovacevic adds a few words of advice: “Just remember, if the data is poor, so will be the KPIs. This is why sometimes it is better to focus on the fundamentals and data first, before going after advanced functionality or graphs.”

BorgWarner depends on software and dashboards to enable its KPI-driven improvements. “Our selected CMMS provides an intuitive, easy-to-use interface that offers all levels of the organization visibility of relevant data. We also deployed kiosks throughout the facility to allow for ready employee access to load pitch data, providing immediate feedback on area/asset performance,” says Venet.

“I personally like having my maintenance and reliability KPIs as part of the CMMS with dashboards for all users to see,” says Solvay’s Monceaux. “In my present role, this isn’t the case, so I’m old-schooling it with spreadsheets and pulling data from a variety of sources to display KPIs.” This method, too, has proven effective for driving positive changes in behavior.

“Our client uses a CMMS for maintenance management,” says CB&I Peruana’s Manriquez. “We have to use it, too, but we are implementing a BI application to feed and analyze the

Email Contributing Editor Sheila Kennedy, CMRP, managing director of Additive Communications, at sheila@addcomm.com.

FURTHER INFORMATION Plant Services recently conducted research into how our readers are deploying software solutions that can help quantify MRO-related business performance improvements, from field service management to EAM/CMMS. A sample of survey results is presented below, with the full set of survey results available at http://plnt.sv/1701-KPI Somewhat Important 32.80%

Not a factor 29.20%

More than 70% of survey respondents consider field service to be a revenue driver.

Very High 16.80%

High 21.20%

When calculating their return on CMMS software investment, plant teams most often factor in the value of reduced downtime, increased productivity, and asset life.

34

5

(Least important)

1

2

3

4

(Most important)

Asset life

3.0%

7.1%

31.3%

42.4%

16.2%

Downtime

2.0%

8.1%

15.2%

32.3%

42.4%

Parts / inventory

3.0%

17.2%

32.3%

41.4%

6.1%

Labor / productivity

1.0%

7.1%

30.3%

41.4%

20.2%

Utilities / energy efficiency

10.1%

15.2%

37.4%

27.3%

10.1%

JANUARY 2017 WWW.PLANTSERVICES.COM

MAINTENANCE / IIoT

by Bruce Hawkins, Emerson, and Scott Bruni, independent reliability consultant

Seize the IIoT in Just 3 Steps Good news! You don’t have to start from scratch.

But here’s what your maintenance and operations teams should be doing to prep for IIoT success.

Today it’s pretty hard to pick up an industry trade pub-

lication or Google anything related to manufacturing and not find an article on the promise of the industrial internet of things (IIoT). Combine the IIoT with advancements in cloud computing and cyber-physical systems (autonomous smart physical assets), and the experts say the stage is set for new manufacturing realities to evolve. Gartner’s Emerging Technology Hype Cycle put the IIoT firmly at the “peak of inflated expectations.” Despite the hype, we will be – or are – bearing witness to the beginning of what many are calling Industry 4.0, the next industrial revolution.

Those old enough to remember carbon paper, overhead transparencies, fax machines, and phone booths as critically important business tools will no doubt be optimistic.

The IIoT promises to redefine or add to the capabilities that organizations must master to be competitive, and it promises to do so sooner rather than later. Rest assured that it will have considerable impact. Accenture estimates it could add $14.2 trillion to the global economy by 2030. Is your organization ready?

That said, no one can actually deliver on the complete IIoT vision today. This is the stuff of tomorrow’s competitive landscape. Although vendors have been working for more than two decades to develop and perfect smarter instruments, realizing the full promise across a much broader set of assets will require significant collaboration, development work, and the establishment of a great many new standards.

However, organizations should not use this as an excuse to wait to get started on better leveraging data from connected assets. There is a great deal you can do to ensure

that your organization doesn’t go the way of the dodo bird.

While industry players negotiate the standards required to enable the promise of the IIoT and Industry 4.0 and IT teams work on organizations’ information “plumbing,” maintenance and operations teams have an opportunity to do some very important foundation work.

I’LL HAVE MY DATA BIG, MY FACTORIES SMART, AND MY MACHINES CURIOUS AND CHATTY

Forget synergy, rightsizing, future-proofing, and a host of other terms. The new buzzword bingo cards sport terms such as big data, machine learning, and virtual twin. After unprecedented IT spending in the late 1990s, by 2005, many senior executives were taking a hard look at IT spend and demanding better returns. Despite this, the risks of chasing new and shiny IT things – to your organization’s detriment – are as real as they were back then. The organization’s focus should be balanced between new IT capabilities and leveraging legacy investments, not just IT investments.

Your plants do not have the benefit of the same kind of trade-up offered by cell phone providers that allow customers to upgrade their phones every two years. IIoT solutions must enable the previous century of capital investment if they hope to see timely adoption, so while your data is big and getting bigger, don’t let that consume all of your focus and attention.

Organizations have significant historical and real-time data that, with advanced analytical tools or machine-learning capabilities, can lead to improved but often incomplete understanding of your assets. You can close some information gaps, but one must also ask, “What am I missing?”

WWW.PLANTSERVICES.COM JANUARY 2017 35

MAINTENANCE / IIoT

Pervasive sensing (think connected sensors almost everywhere, embedded or otherwise) is one of the keys to realizing the promise of the IIoT. Connected devices are critical and are growing in use, but according to a 2015 PricewaterhouseCoopers report, only one-third of U.S. manufacturers use smart devices in manufacturing and operations. This leaves a large gap in what’s needed to optimize reliability, safety, efficiency, and ultimately financial return. For companies that are limited to legacy sensing investments, most of which were made decades ago to meet minimum automation requirements rather than lifecycle value optimization objectives, the benefits of the IIoT will be significantly limited and challenged in many cases to pay for themselves.

The good news is you aren’t starting from scratch. Your organization has already made investments in sensing that will support realization of the IIoT’s promise. Our experience setting up equipment health monitoring solutions would suggest that roughly 60% of the instrumentation needed for critical assets already exists. So we can start there.

Step 1: KNOW WHAT YOU HAVE

Or, stated more accurately, find out what you have. Do not underestimate the importance of knowing what you have when it comes to developing a winnable proposal. A solid inventory will give you a head start with prioritizing new needs and identifying where legacy instrumentation investment supports the future vision.

That sounds simple enough, but in practice it is generally far from simple. Most plants’ master equipment lists were developed over many years by multiple contributors. Those contributions were not frequently focused on developing an accurate inventory. Rather, much of the equipment hierarchy was probably created just to facilitate ordering parts, capture costs, or fulfill some other workflow-driven requirement. As a result, the CMMS is generally not the repository for an accurate inventory of the organization’s assets. But even if your organization has recently completed a major master data cleanup, there’s value in confirming the quality of what you have documented against what’s in the plant.

Piping and instrumentation diagrams (P&IDs) can be equally suspect. If your plant has any age on it, chances are that the P&IDs do not accurately reflect the scope of the organization’s assets. A rigorous and disciplined management-of-change process might mean you have a better start than most, but in many cases, P&IDs and CMMS master equipment lists contain an incomplete and potentially flawed inventory.

Your people can be a treasure trove of information. Many of your mechanics and operators likely are carrying around in their heads a considerable inventory of the plant’s assets 36

JANUARY 2017 WWW.PLANTSERVICES.COM

just from being around the equipment for the past 30-plus years. (If a large number of your experienced, knowledgeable mechanics and operators have recently taken up residency in central Florida to work on their bocce and golf skills, however, you may have already missed that opportunity.)

If your master equipment list is in rough shape, you’ll want to start working on remedying that situation. For some plants, this will be a significant undertaking. It may well require physically walking down the complete asset base to document what you have. The good news is that there is a pretty strong business case (even without the IIoT benefits) for doing this work. According to our research and Doc Palmer, average wrench time in industrial settings falls between 25% and 35%. Effective planning and scheduling facilitated by quality asset master data can increase this to as high as 65%. Effectively doubling the capacity of organization to do work or cutting the labor content of your maintenance work in half will justify a considerable amount of data cleanup work.

In addition to evaluating the quality of your master data, you’ll want to look at your historical data – both process and transactional data. If a core tenet of the IIoT is deriving more insights from your data, then data quality will impact the value and frequency of those light-bulb moments. Data quality is a bit of a circular logic problem. We tend to not use data that we know is inaccurate, but then its poor quality exists because we don’t use it. Understanding where your data quality issues are will help you understand where your processes and performance management system might need some improvement or discipline.

Step 2: UNDERSTAND HOW EACH ASSET DRIVES (OR FAILS TO DRIVE) VALUE

The digital transformation of plants and factories promises many benefits.

Most are associated with optimizing availability and reliability. Filling the gap in sensing to support this transformation requires knowledge of the risks to equipment availability and reliability. It requires knowledge of how and why assets fail and ultimately what’s critical to drive enterprise value.

However, measuring or even defining value for your operations is not always as straightforward as one might think.

Often, the easy part is understanding an asset’s potential impact on cash flow (costs and revenue). Operational risk and uncertainty can have a significant impact on shareholder value as well. One need look only at the shareholder impact of the Deepwater Horizon incident on shareholder value for affected companies. Likewise, there’s a host of dotcom enterprises that demonstrate a history of negative cash flow but enviable valuations, so clearly there is more to value than just reducing spend or expanding revenue.

Understanding where your data quality issues are will help you understand where your processes and performance management system might need improvement.

The good news is you don’t need to prepare a valuation.

Also, there are proven approaches, based on reliability best practices, to help you develop the needed appreciation of how your assets impact value. These are criticality analysis and development, reliability-centered maintenance analysis (RCMA), failure modes and effects analysis (FMEA), and root cause failure analysis (RCFA).

Criticality analysis is an often underappreciated activity.

Too often, gut feelings are considered as effective as employing a disciplined, quantitative approach. But if you ask five people, you’ll likely get five different answers on asset rankings. Alternatively, with all the retirements that have happened in the past couple of years, you might get two different answers and, from your recent hires, three puzzled looks. There are several reasons why an organization should do a criticality analysis. As this relates to setting a foundation for IIoT, it’s worth focusing on a few points.

To paraphrase Winston Churchill, the value of the plan is in the planning. Criticality development can be similar. While the end product has tremendous value, the process of reviewing the asset base and identifying how systems and equipment contribute to or affect safety, environmental quality, product quality, production, and ultimately plant economics will provide valuable insights on the business drivers for improvement and investment. Why is this important? If you are going to grow, you’ll need to justify some investment.

The other important contribution that criticality makes to building a solid foundation is that it will serve as something of a road map. A criticality analysis provides priority and informs the level of rigor required in the next part of Step 2, reliability engineering. RCMA, FMEA, and RCFA are proven approaches that will help you identify new sensing requirements to detect or prevent these failures. As a positive side effect, you’ll also eliminate non-value-adding activities and improve your return on maintenance in the process.

Step 3

(OR IS IT 0?): BUILD YOUR PLAN AND BUSINESS CASE

It wasn’t so long ago that quality was all the rage in manufacturing industries. Phil Crosby’s “Quality is Free” was required reading, among other books mandated by many employers. While it’s easy to appreciate the many lessons Crosby’s book had to offer, the most powerful contribution may have been the title.

In many ways, it’s equally true with reliability. But as with many free things, you still have to show up to be able to

claim your prize. Showing up in this case means implementing what you’ve learned from the previous steps.

For those who feel stuck in an endless “do loop,” it’s worth noting the chicken-and-egg nature of this business case. Sometimes you just need the funds to do the work to justify the funds. Many of you, after reviewing the first two steps discussed above, have come to the realization that your situation will require some level of upfront investment and therefore justification. If you find yourself needing to front-load the business case development step, rest easy.

The returns for investment in reliability best practices are generous and well-documented (see “Turning Enterprise Asset Management into Real Earnings Per Share” by Robert DiStefano and Scott McWilliams).

The aggressiveness and success of your plan will depend on how well you develop your business case and connect the recommendations to risk reduction and improved cash flow.

This isn’t necessarily just an exercise in math. A business case is a decision-support tool. In some organizations, it’s

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MAINTENANCE / IIoT

more about the math. In others, it’s as much an exercise in social engineering as it is a mathematical exercise. Building organizational momentum and support for investment is frequently more effective than investing in iterative math exercises. Executives are more likely to buy into a positive NPV (net present value) if there are a host of people standing up to say they’ll deliver the benefits.

Existing leadership support will also impact the size and scope of the initial business case. If your execs are already pointing to IIoT as a part of their corporate strategy, it may be time to go for broke and budget big. On the other hand, if you expect significant pushback, then a more targeted pilot or proof of concept may make more sense. Support the process in whatever way it makes sense in your organization, but don’t underestimate the importance of building organizational support and alliances.

As you do this, it’s probably worth broadening your approach to include influencers outside the usual maintenance and operations suspects. Many of your IT organizations already have money to spend and are making investments in the IIoT. It’s not a bad idea to brush up on your IT language skills and make some new friends. It’ll be worth your time and attention to know and influence how IT believes sensing will impact realization of their IIoT visions. If IT is too busy chasing shiny or cloudy things to appreciate the importance of collaboration and the role of sensing in enabling the IIoT, then perhaps a diet of fallen fruit, crabs, and shellfish (favorites of the dodo) would be appropriate.

As for the plan itself, there are too many variables to address here. But there is one key point of guidance worth covering. Engineers tend to focus exclusively on technology, and they ignore the balance of the holy trinity of consulting (people, process, and technology) at their peril. If you hear Shoeless Joe Jackson whisper-

ing through the cornfield outside the plant,then by all means, charge ahead. The rest of us will have to close the loop. To ensure that you realize the business case, you will need to redesign your processes, skill requirements, and potentially the organization to leverage the addition of new information.

Whether you believe the hype of IIoT or not, you can count on significant change in the not-too-distant future. Some would have you believe that the IIoT will render obsolete what we’ve known for the past quarter-century about driving reliability improvement. On the contrary, the IIoT will not only enable those best practices, but also will make them mandatory to compete. Regardless of whether you believe in silver-bullet solutions, remember one thing: Even the Lone Ranger had sights on his guns and didn’t aim with his eyes closed.

Organizations that have strong reliability programs in place will be better positioned to take advantage of what the IIoT has to offer. Their superior knowledge of their assets will ensure that they aim their sensing investments where they’ll have the greatest impact on value. Those that don’t will find themselves on the losing end of a widening gap between top- and bottom-quartile performers – if they don’t suffer the dodo’s fate.

Bruce Hawkins is director of technical excellence for Emerson (www.emerson.com) and is on the board of directors of the Society of Maintenance and Reliability Professionals. He has 38 years of industrial maintenance management and reliability engineering experience.

Scott Bruni is an independent consultant with more than 20 years of industry experience.

He specializes in enterprise asset management, overall maintenance & reliability strategy development, and operations management consulting.

PRODUCT ROUNDUP

CONTROL SYSTEMS AND NETWORKS The latest IT and data network tools to support plant operations and reliability ALLEN-BRADLEY STRATIX 5950 SECURITY APPLIANCE

The Allen-Bradley Stratix 5950 security appliance from Rockwell Automation incorporates new security technologies to help protect plantfloor systems. The device uses Adaptive Security Appliance (ASA) firewall and FirePOWER technology to create a security boundary between cell/area zones or to help protect a single machine, line, or skid. This supports compliance with IEC 62443. The device also uses deep-packet-inspection (DPI) technology, enabling inspection of the Common Industrial Protocol (CIP) and other industrial protocols.

Rockwell Automation www.rockwellautomation.com EPOS4 POSITIONING CONTROLLER MODULES

The first product in Maxon Motor’s new line of positioning controllers is the EPOS4 module with detachable pin headers and two different power ratings. With a connector board, the modules can be combined into a ready-toinstall compact solution. The position controllers are suitable for efficient and dynamic control of brushed DC motors and brushless BLDC motors (EC motors) with Hall sensors and encoders up to 750 W continuous power and 1500 W peak power. maxon motor www.maxonmotorusa.com EXPERION PROCESS KNOWLEDGE SYSTEM ORION

Honeywell Process Solutions (HPS) has launched its newest version of Experion Process Knowledge System (PKS) Orion, featuring advanced industrial internet of things (IIoT) capabilities, automated device commissioning, and integration of electrical systems with process control. The new solution will help industrial plants further optimize automation proj-

ect execution, reduce loop commissioning time, minimize operational risk, and protect intellectual investments while keeping current with today’s technology.

Honeywell www.honeywellprocess.com KEPSERVEREX V6 SOFTWARE

KEPServerEX Version 6 software enhancements includes a new method for remote configuration, additional languages that support critical industrial automation markets, and updates to the user interface and licensing experience. V6 also features enhancements to the core server functionality and user experience that deliver an IoT-friendly industrial connectivity platform, including programmatic changes via the configuration API, native development of OPC UA technology, an improved user interface, and robust security.

Kepware www.kepware.com IRB 1660ID ROBOT FOR WELDING, MACHINE TENDING

ABB Robotics introduces the IRB 1660ID, its latest compact robot for arc welding and machine tending applications. The IRB 1660ID’s Integrated DressPack design makes it easier to program and simulate predictable cable movements than standard robots with externally routed cables do.

The decreased cable wear and damage that also results reduces maintenance costs by 50%, and the compact footprint allows for moreefficient robot cell layouts, saving valuable space on the factory floor.

ABB www.abb.com WWW.PLANTSERVICES.COM JANUARY 2017 39

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BIG PICTURE INTERVIEW

FREEZE FRAME: PICTURING ASSET HEALTH Why digital photography and predictive modeling will remake the APM landscape Anne-Marie Walters, a chemical engineer, is global marketing director for Bentley Systems (www. bentley.com). In that role, she’s responsible for the global industrial process, offshore, and natural resources industries. Bentley is a leading player in the industrial 3D modeling world, and Walters spoke recently with Plant Services about the state of 3D predictive modeling, why it should be of interest to maintenance and operations teams – not just engineering teams – and how digital photography can provide at least as good of a view as sensors when it comes to asset performance management.

PS How can predictive modeling enhance organizations’ asset performance management (APM) efforts?

AW Bentley acquired some technology which we now call ContextCapture which basically turns digital photographs into 3D models. ContextCapture software first of all generates a 3D mesh model so that you can read that into a CAD environment and start engineering on the side.

After you’ve created the 3D mesh model and then you overlay back onto the model the actual photographs of the plant itself, you then can present to the engineers, the maintenance operatives, the operators, a 3D model of what they’re actually looking at as opposed to a simulated 3D or CAD model that doesn’t look real and they don’t necessarily recognize what they’re looking at because they’re not seeing familiar colors or shapes or sizes or wear and tear.

The value of the 3D reality model, particularly with ContextCapture and with the high-resolution photographs that you’d put on the model, is that they can see every ding, every dent, piece of rust, and they can really recognize what they’re seeing and then they can also relate that information back to what they have.

One of the things we do show is if you combine the digital photography with something like optical character 42

JANUARY 2017 WWW.PLANTSERVICES.COM

recognition, you can zoom in to, say, a nameplate on a pump or compressor or substation or something that’s got a serial number, and you can get the software to pick up the text and automatically relate what you have in your 3D model back to the serial model number and the rest of the asset information you have.

This is now. This is right now. ... You can capture all that information, come back to the office and play around with what you’ve got so you can make the best decisions and work it all out before you start to send people out there.

PS How well is this new technology resonating? Are maintenance and operations teams making the connection to how this new software and these more hands-off approaches can aid in asset management?

AW Today most asset information that operations and maintenance people are working with are old or out-of-date drawings. Being able to capture these reality models and bring that kind of information to their environment, they can start to make better connections between what engineering and design information they have with operations information and maintenance information and understand what options they have and make better decisions.

Visual software in the same way as sensors is flagging to the maintenance people visual information – there’s

something changing about this view.

Something’s beginning to shift a bit, move, shake a bit maybe.

You can start to use digital photography almost instead of putting sensors on everything. You can imagine having a camera looking at a whole area of the plant and the software constantly comparing differences between photographs.

It can direct your maintenance to those areas where they should be focusing their attention.

PS What excites you about the future of predictive modeling?

AW You’ve got literally unlimited computing capability now in the cloud.

You can analyze all of this data, and if you then combine that with modeling technologies and you test against reality to make sure your models are OK, you can model into the future and predict asset life, how much longer something has got under the circumstances you have now, how much more life you’ve got in your assets. You can put all of this information together.

Predictive modeling absolutely is something that is booming. It’s what people want. They want to know how much longer they’ve got before something is going to fail. That’s the whole thing about RCM, risk-based inspections – they want to direct their limited resources on the things that matter.

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