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Best Practices for the Osisoft UC and Slide Template Improving Operations for Business Impact: Using Your Data Asset as an Enabler for Competitive Advantage Presented by Lance Fountaine Industry Principal, Mining, Metals and Materials REGIONAL SEMINARS 2015 © Copyright 2015 OSIsoft, LLC Company Visions REGIONAL SEMINARS 2015 © Copyright 2015 OSIsoft, LLC 2 The OSIsoft Vision We believe People with Data can Transform their world REGIONAL SEMINARS 2015 © Copyright 2015 OSIsoft, LLC 3 Typical Industry and Manufacturing Vision Commodity Production: Low Cost Producer Sustainability: Eliminate / Minimize Risk Value-Add Production: Products that Differentiate REGIONAL SEMINARS 2015 © Copyright 2015 OSIsoft, LLC 4 An Operational Intelligence Strategy: The Marriage of our Visions REGIONAL SEMINARS 2015 © Copyright 2015 OSIsoft, LLC 5 What Challenges / Opportunities Exist within Your Operations? Challenge – Market Conditions •Commodity Market Prices •New or Improved Operations / Known Technology Competition •New, Competitive Manufacturing Technologies Challenge – Cost Headwinds •Energy Costs •Raw Materials Costs •Labor Costs •Logistics / Transportation Costs •Aging Assets / Sustaining Capital Requirements Other Challenges •Geology – Decreasing Yields on Known Reserves •Environmental Regulations / Reporting Requirements •Slow Global Economic Recovery Opportunities •Commodity Market Growth in Developing Countries •Market Pull for New Materials / Alloys (Strength, Weight) •Sustainable Materials REGIONAL SEMINARS 2015 © Copyright 2015 OSIsoft, LLC 6 Information as a Competitive Enabler: The Concept is Not New Common Operations Programs • SPC (Statistical Process Control) • Lean Manufacturing / Six Sigma • TPS (Toyota Production System) • Continuous Improvement / Deming Cycle Improving Plant / Enterprise Performance Management • Established / Managed KPIs • Visibility into Uncontrollable Impacts (e.g., Energy Rate, Raw Material Rate, Metal Prices, etc.) • Engaged Workforce driving Collective Innovation • Enabling Platform for Process CoEs (Centers of Excellence) • Leverage / Adoption of Best Practice REGIONAL SEMINARS 2015 © Copyright 2015 OSIsoft, LLC 7 What If Your Company had the Ability to Leverage Its Current Data Assets to… Improve Enterprise Visibility and Improve Awareness and More Directly Impact Management Forecasted Impact of Controllable Costs / (Operating System) Uncontrollable Factors Performance • Establish and Automatically • Rising Energy Rates • Continuously Improve Report Standard KPIs to • Rising Raw Material Costs, Process Productivity / OEE Measure Performance Reduced Raw Material Quality • Better Control Product • Support Operations through • Rising Water Rates Quality / Improve Genealogy Global and Regional CoEs • Rising Labor Rates Tracking (Centers of Excellence) or • Cost of Environmental • Extend Life of Critical Assets Remote Operation Centers Regulation / Mandates / Reduce Maintenance Costs • Drive Real-time Action in • Reduce Energy / Raw Support of Operational Material / Natural Resource Excellence Consumption • Rapidly Identify and Leverage • Continuously Improved Best Practices Environmental Performance • Increase Employee to Meet Regulatory Engagement with Continuous Compliance and Reporting Improvement Innovation Requirements REGIONAL SEMINARS 2015 © Copyright 2015 OSIsoft, LLC 8 Why the Need to Re-Evaluate Your Information Platform? The Data Capability and Maturity Model REGIONAL SEMINARS 2015 © Copyright 2015 OSIsoft, LLC 9 Data to Value: Recognizing the Critical Contributors People •Subject Matter Experts (SMEs) • Innovators (Enabled Workforce) Resources •Centers of Excellence (CoEs) •Change Agents Tools / •Visualization Tools •Analytical Tools (Big Data) Applications •Application Systems •Reporting Tools VALUE •Data Collection / Historization •Data Contextualization / Enterprise Data Normalization Infrastructure •Calculations / Rollup / Aggregation Network •Ethernet TCPIP / Proprietary Connectivity •Wired / Wifi / Cellular Sensors / Data •IoT / IIoT •Calibration Sources •Transactional Databases REGIONAL SEMINARS 2015 © Copyright 2015 OSIsoft, LLC 10 Information and the Operational Intelligence Concept Operational Intelligence Concepts • Hidden information, • Common platform & • Proactive problems problems tools solving to reduce Excursions • Data in many • Real-time data locations & not easily transparent, • Process modeling & accessible available to all improvements • Multiple versions of • Standardized Data • Customer the truth Model connections Operational Traditional Excellence in the Operating 21st Century Processes REGIONAL SEMINARS 2015 © Copyright 2015 OSIsoft, LLC 11 How Does Operational Intelligence Drive Results? Production and Operations Daily/Real-Time Operations Process Stability/Improvement Management Intelligent Action Intelligent Analysis Intelligent Reporting / Integration Frequency: Real-time to Daily Frequency: Any Frequency: Daily to Monthly Learnings Applied: Manual or Closed Loop Visual Information / Notification Learning / Knowledge Expansion Evaluation / Decision Support Audience: Audience: • Audience: • Operators • Process Engineers (Location) • Location Managers • Craftsmen • Production Superintendents • Regional/Global Operations • Supervisors • CoE Experts (Regional/Global) • Business Leadership Objectives: Objectives: Objectives: • Achieve Daily Targets (DMS) • Detect Excursions (Leading) • Understand/Grade Performance • Situational Awareness • Maintain Process Stability • Adjust Expectations • Resolve Immediate Issues • Improve Productivity • Establish Plans (RCA/Problem Resolution) • Improve Quality • Calculate Forecasts • Maintain Schedule/Plan OSIsoft PI Data Infrastructure REGIONAL SEMINARS 2015 © Copyright 2015 OSIsoft, LLC 13 Meeting the Technical Requirements: Recognizing IT / OT Convergence REGIONAL SEMINARS 2015 © Copyright 2015 OSIsoft, LLC 14 Recognizing IT/OT Convergence REGIONAL SEMINARS 2015 © Copyright 2015 OSIsoft, LLC 15 Defining a Standard Technical Architecture Transactions Business Definition: The integration of data with process Environment Assets Orders & Health & expertise to enable proactive and I Purchasing D A Safety ERP intelligent manufacturing decisions in N A dynamic environments N T T Operational Intelligence A E A Key Components: L 1. REAL TIME and HISTORICAL G Operations / Production process data capabilities Y R Management M 2. Network / Data integration from shop S floor to the enterprise A Process Data Collection & Storage O 3. Comprehensive analysis toolset(s) I T D S E E Environment The Architecture Ties Together PCS Production D Processes Processes L Information from All Sources within a Plant and Across the Action Enterprise Operations REGIONAL SEMINARS 2015 © Copyright 2015 OSIsoft, LLC 16 Adopting a Project or Program Approach REGIONAL SEMINARS 2015 © Copyright 2015 OSIsoft, LLC 18 Project Based Approach Typical Scenario: Pros (often): • Limited Technical Scope • Well Defined, Limited Scope (Sources of Information / Tags) • Single Design / Deployment Project • Fixed Project Timeline • More Manageable Initial Cost Project Technology - Technology - • Working Group: Location #1 Scope Solution Solution Operations Resources working Design Deploy with IT / OT Resources Project Project Technology - Technology - #2 Scope Solution Solution Cons (often): Design Deploy • Site Based, One Off Solutions • Not Easy to Leverage / Deploy ‘Best Project Practices’ or ‘Standards’ across Multiple Sites Project Technology - Technology - • New Projects Require New Software / New #3 Scope Solution Solution Solutions / New Funding / New Start Design Deploy • Cost / Complexity Increase Over Time TIME REGIONAL SEMINARS 2015 © Copyright 2015 OSIsoft, LLC 19 Program Based Approach Typical Scenario: Pros (often): • Supports Vision of Data as an • Supports Transformation through Asset Continuous Improvement Program • Initial Scope / Focus on • Shorter Time to Value for Defined Data Technical Architecture and Data Value Initiatives Infrastructure Data Data Infrastructure • Less Investment / Funding Infrastructure Infrastructure • Defined Partnership between Design Deploy Required for Subsequent Projects Operations and IT /OT • Focus on Leverage of ‘Common Standards’ or ‘Best Practices’ Value • Provides Standard Approach to Initiative Solution Solution Technology / Minimizes Complexity #1 Design Deploy • Engages People Value Initiative Solution Solution Cons (often): #2 Design Deploy • Higher Initial Funding Investment (Offset by Lower ongoing TCO and Value Stronger Value Realization) Initiative Solution Solution #3 Design Deploy TIME REGIONAL SEMINARS 2015 © Copyright 2015 OSIsoft, LLC 20 Value Creation – The Project vs. Program Approach Performance Management VALUE Environmental Reporting Equipment Health Mgmt. Incremental Value Operations Management Application Benefits Value Realization TIME Initial Investment VALUE NOW VALUE OVER TIME REGIONAL SEMINARS 2015 © Copyright 2015 OSIsoft, LLC 21 Examples of Success REGIONAL SEMINARS 2015 © Copyright 2015 OSIsoft, LLC 22 Enterprise Operational Intelligence Barrick Gold “With Data, you are NOT just another person with an opinion.” “If you do measure it, you can manage it.” Ian Allen, Senior Manager, Mining Information Technology CHALLENGES SOLUTION RESULTS Meet the challenge of Operational Justify an Operation Intelligence Enterprise Agreement that gives Barrick Excellence program based on PI. the opportunity to use PI across its mines Respond to cost savings and efficiency Concentrate effort with the greatest needs of the business value – Energy & Water Request
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