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Best P
B t Practices for Fieldbus & HART
          ti   f  Fi ldb
Project Implementation & Lifecycle
        Benefits Realization



                             ARC Forum
                           February 2008
                            By Larry O’Brien
                                     O Brien
                          lobrien@arcweb.com
Outline

♦ The Future Potential for Fieldbus and HART
♦ What are the Installed Cost Benefits?
    h       h       ll d           fi
♦ What are the Lifecycle Cost Benefits?
♦ What are Best Practices for Project Success?
♦ What are Best Practices for Lifecycle Success?
♦ Panel Discussion/Q&A
Fieldbus & HART are a Permanent Fixture on the
Automation Landscape

♦ Market for Fieldbus Products and Services for the
  Process Industry (Profibus PA and Foundation
  Fieldbus) is growing rapidly and there is already a
  large installed base.
♦ Installed base of HART devices is already in the
  tens of millions and growing.
♦ Fieldbus and HART are both part of the purchase
  specifications of most major companies in the oil
  and gas, chemical, and other industries.
♦ Anyone who is still “Waiting to see” what happens
  in this market is already missing out on big
  p
  potential.
Fieldbus Market is Booming
Installed Base of HART Devices
            55 Million Devices in 2005


                              35%

                                                                13%




           11%
                 2%
                                                  39%
         HART    Fieldbus     Proprietary   4-20mA +   Pneumatic

                      Smart                       Non - Smart


    Only Ab t T
    O l About Ten Percent of HART Devices Installed are Working
                  P      t f       D i     I t ll d     W ki
                 To their Full Operating Potential
What are the Benefits? Installed Cost


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

        Electrical                140,000€            0€       140,000€        0.0%

        Analyzers                 140,000€            0€       140,000€        0.0%

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

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

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

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

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

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

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

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

        Total All Process I&C   3,500,000€    -124,702€      3,375,298€       -3.6%
What are the Benefits? Installed Cost

Ability to Replicate Common Applications                                                                                                  Cost was Additional
                                                                                                                                          No Savings
                     Project Overheads                                                                                                    Little Savings
                                                                                                                                          Medium Savings
                    Project Management                                                                                                    Significant Savings

                  Easier P&ID Diagrams

           Reduced System Complexity

           Reduced Hardw are Footprint

                   Documentation Costs

                          System Costs

  Maintenance Personnel Training Costs

                Operator Training Costs

                           Wiring Costs

           Device/Instrumentation Costs

         FAT or SAT Time to Completion

Front End Engineering and Design Costs

    Commissioning Costs and Checkout

        Reduced Overall Time to Startup


                                           0   2   4   6   8   10   12   14   16   18   20   22   24   26   28   30   32   34   36   38
Real Advantages of Fieldbus & HART are in
Lifecycle & Operational Costs



        100%


         80%



         60%


         40%

                  Initial Costs          Maintenance &
         20%
                                         Operation Costs

          0%




      Initial Costs Represent Only 20% of Total Cost of Ownership
What are the Primary Lifecycle Cost Benefits?

                                                                                                                                      Cost was Additional
                                                  Tighter Control of the Process                                                      No Savings
                                                                                                                                      Little Savings
                                                                                                                                      Medium Savings
                                                Increased Accuracy of Devices                                                         Significant Savings


Increased Interoperability and Ability to Choose Devices from Different Suppliers


                                                   Increased System Availability
                                                              y                y


                                           Increased Return on Installed Assets


                                                           Prolonged Asset Life


                      Incident Avoidance or Avoidance of Unplanned Dow ntime


                                                         Better Process Visibility


                                                      Improved Response Times


                             Enhanced Effectiveness of the Automation System



                                                                                     0   2   4   6   8   10 12 14 16 18 20 22 24 26
Lifecycle Cost Benefits Continued:
  Maintenance Cost Benefits

                                                                                                                                   Cost was Additional
                               Reductions in Fixed Maintenance Costs                                                               No Savings
                                                                                                                                   Little Savings
                                                                                                                                   Medium Savings
                             Reduction in Variable Maintenance Costs                                                               Significant Savings



               Increased Efficiency and Ease of Change Management


                      Easier and Faster De ice Replacement Upgrade
                                        Device Replacement,



Identify Problems Before they Happen, Predictive Maintenance Strategy


                                      Reduced Spare Parts Inventory



   Reduced Number of Unnecessary Trips to the Field by a Technician


                                      Enhanced Process Diagnostics



                                        Enhanced Device Diagnostics



                                                                        0   2   4   6   8   10   12   14   16 18   20 22   24 26
The Maintenance Opportunity Should not be
Underestimated


              35%               63% of maintenance labor
     35%
                                  results in no action!!
     30%                28%

     25%
                                   20%
     20%
     15%
     10%
                                                6%         6%
                                                                   4%
      5%
      0%
            Routine      No     Calibration   Zero Off   Plugged   Failed
             check    Problem      shift                   lines

      Source: Shell Global Solutions
Who is Realizing the Benefits?

                                            5 Very High Return on Investment
                                           14 Achieved Return on Investment
                                           24 Not Sure
                                            6 Did Not Y t A hi
                                                  N t Yet Achieve Return on Investment B t E
                                                                  R t       I    t   t But Expect T
                                                                                                t To
                25.5 %                      6 Did Not Achieve Return on Investment and Do Not Expect To




                                  9.1 %




                                  10.9 %
43.6 %




                         10.9 %




         Most Are Unclear on the Long Term Economic Benefits
                          They Are Achieving
How Long Did It Take to Achieve Full Return on
Investment?

                                                                            2 0-3 Months
                                                                            3 4-6 Months
                                                                            5 7-9 Months
                                                                            5 10-12 Months
                                                                            3 12-18 Months
                                                 14.3 %                     0 19-24 Months
         23.8 %                                                             3 Over two years




                                                                    9.5 %




                                                                  14.3 %
23.8 %

                                                          0.0 %

                                        14.3 %




                  Almost Half of Respondents Achieved a Full Return
                                   in Under a Year
Best Practices for Project Success:
Why Do Fieldbus Projects Fail?

♦ Poor Planning/Pre FEED Stage Involvement
♦ Lack of Employee Buy In
     k f      l
♦ Lack of Management Buy In
♦ Lack of PAM Solution Deployment
♦ Lack of an Experienced Engineering Partner
♦ Lack of an Experienced Supplier Partner
♦ Lack of Proper Training
Proper Training & Education is essential

           No single standard available

           Lack of management buy-in

               Lack of employee buy-in

     Lack of field workforce knowledge

               Increased training costs                                                                        Strongly Agree
                                                                                                               Agree
   Insufficient host system functionality
                                                                                                               Neutral
                                                                                                               Disagree
     Multivendor interoperability issues
                                                                                                               Strongly Disagree
    Not proven in mission critical apps

                  Initial cost is too high

  Lack of supplier support/commitment

        Not enough products available

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


                                             Lack of field workforce knowledge is
                                                       key limiting factor
                                                  in fieldbus implementation
Up Front Planning is Essential to Success

♦ Get the Involvement of the Supplier and Partners
  ASAP
♦ Avoid the “Now that it’s Installed, What do we do
  Now?” Syndrome
♦ Lifecycle Benefits are Determined in the Planning
  Stage
♦ Need to rethink worker roles
Employee & Management Buy In

♦ Employee buy in must reach from maintenance to
  operations and engineering
♦ Management buy in is essential, justification of
  the technology must match overall corporate
  objectives
♦ This is where training and education begins.
  Maintenance personnel could view fieldbus/HART
  as a threat. Show them how it will make them do
  their jobs better!
Why is PAM so Important to HART & Fieldbus?

                                                74 I plan to use PAM applications with fieldbus
                                                64 No plans to use PAM applications
                                                55 Currently use PAM with fieldbus
                              34.1 %            24 Would like to deploy PAM, but cannot




 29.5 %



                                       11.1 %




                     25.3 %




          Percent of Total Respondents Planning to Use PAM
                      In their Fieldbus Projects
Implementation of a PAM Solution in Conjunction
with HART and Fieldbus



                % Improvement vs Traditional Maintenance


      Equipment Productivity
        Workforce Efficiency
             Equipment Life
                     Defects
                  Downtime
             Inventory Costs
                     y
     Unplanned Breakdowns

                           -60   -40   -20   0    20       40
Impact of Fieldbus on Standard Work Processes and
  Procedures – 1=No Benefit at All; 5=Greatest Benefit

                                                                                                             N/A
                                                                                                             1
                                                                                                             2
                                                                                                             3
 Operations                                                                                                  4
                                                                                                             5




 Purchasing




Engineering




Maintenance




              0   1   2   3   4   5   6   7   8   9   10   11   12   13   14   15   16   17   18   19   20



                      Maintenance and Operations Are Getting the Most Benefit
How Has Fieldbus Changed Responsibilities and
  Work Processes?
                                                                                                                                          Strongly Agree
                                                                                                                                          Agree
                                                                                                                                          Neutral
     Fieldbus has improved the productivity of the process engineer                                                                       Disagree
                                                                                                                                          Strongly Disagree
                                                                                                                                               gy      g




                Fieldbus results in enhanced operator effectiveness




Fieldbus has improved the productivity of the maintenance technician




        Fieldbus has improved the productivity of the board operator




          Fieldbus has improved the productivity of the field operator




                                                                         0   2   4   6   8   10   12   14   16   18   20   22   24   26


                                      Users Believe the Biggest Impact Is on
                                   Maintenance Technician and Process Engineer
Finding the Right Partner


                       Services &
                        Project
                      Coordination




                                        Registered
       Partner    Successful Fieldbus    Devices &
      Products         Partners          Systems




                       Industry
                       Expertise
Conclusions and Recommendations

♦ There remains a substantial installed cost benefit
  to fieldbus technologies, but the real value lies in
  the operational and lifecycle cost phase
♦ Many end users are not realizing the optimum
  benefit that fieldbus and HART technology can
  provide
♦ Training and education are essential. Applying
                             essential
  fieldbus as a mere replacement for 4-20 mA
  guarantees project failure and zero ROI.
Best practices for fieldbus and hart project implementation and lifecycle benefits realization lo brien arc orlando 2008

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Best practices for fieldbus and hart project implementation and lifecycle benefits realization lo brien arc orlando 2008

  • 1. Best P B t Practices for Fieldbus & HART ti f Fi ldb Project Implementation & Lifecycle Benefits Realization ARC Forum February 2008 By Larry O’Brien O Brien lobrien@arcweb.com
  • 2. Outline ♦ The Future Potential for Fieldbus and HART ♦ What are the Installed Cost Benefits? h h ll d fi ♦ What are the Lifecycle Cost Benefits? ♦ What are Best Practices for Project Success? ♦ What are Best Practices for Lifecycle Success? ♦ Panel Discussion/Q&A
  • 3. Fieldbus & HART are a Permanent Fixture on the Automation Landscape ♦ Market for Fieldbus Products and Services for the Process Industry (Profibus PA and Foundation Fieldbus) is growing rapidly and there is already a large installed base. ♦ Installed base of HART devices is already in the tens of millions and growing. ♦ Fieldbus and HART are both part of the purchase specifications of most major companies in the oil and gas, chemical, and other industries. ♦ Anyone who is still “Waiting to see” what happens in this market is already missing out on big p potential.
  • 5. Installed Base of HART Devices 55 Million Devices in 2005 35% 13% 11% 2% 39% HART Fieldbus Proprietary 4-20mA + Pneumatic Smart Non - Smart Only Ab t T O l About Ten Percent of HART Devices Installed are Working P t f D i I t ll d W ki To their Full Operating Potential
  • 6. What are the Benefits? Installed Cost Remote I/O Cost Fieldbus Percent System Cost Differential System Cost Difference Electrical 140,000€ 0€ 140,000€ 0.0% Analyzers 140,000€ 0€ 140,000€ 0.0% Project Management 280,000€ 280 000€ 0€ 280,000€ 280 000€ 0.0% 0 0% Field Devices 770,000€ 4,489€ 774,489€ 0.6% I/O System 420,000€ -76,212€ 343,788€ -18.1% DCS Incl. Engineering 525,000€ -24,795€ 500,205€ -4.7% Installation 700,000€ -10,732€ 689,268€ -1.5% Calibration/Quality 140,000€ -5,976€ 134,024€ -4.3% Commissioning (IBS) 105,000€ -2,400€ 102,600€ -2.3% Engineering 280,000€ -9,076€ 270,924€ -3.2% Total All Process I&C 3,500,000€ -124,702€ 3,375,298€ -3.6%
  • 7. What are the Benefits? Installed Cost Ability to Replicate Common Applications Cost was Additional No Savings Project Overheads Little Savings Medium Savings Project Management Significant Savings Easier P&ID Diagrams Reduced System Complexity Reduced Hardw are Footprint Documentation Costs System Costs Maintenance Personnel Training Costs Operator Training Costs Wiring Costs Device/Instrumentation Costs FAT or SAT Time to Completion Front End Engineering and Design Costs Commissioning Costs and Checkout Reduced Overall Time to Startup 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38
  • 8. Real Advantages of Fieldbus & HART are in Lifecycle & Operational Costs 100% 80% 60% 40% Initial Costs Maintenance & 20% Operation Costs 0% Initial Costs Represent Only 20% of Total Cost of Ownership
  • 9. What are the Primary Lifecycle Cost Benefits? Cost was Additional Tighter Control of the Process No Savings Little Savings Medium Savings Increased Accuracy of Devices Significant Savings Increased Interoperability and Ability to Choose Devices from Different Suppliers Increased System Availability y y Increased Return on Installed Assets Prolonged Asset Life Incident Avoidance or Avoidance of Unplanned Dow ntime Better Process Visibility Improved Response Times Enhanced Effectiveness of the Automation System 0 2 4 6 8 10 12 14 16 18 20 22 24 26
  • 10. Lifecycle Cost Benefits Continued: Maintenance Cost Benefits Cost was Additional Reductions in Fixed Maintenance Costs No Savings Little Savings Medium Savings Reduction in Variable Maintenance Costs Significant Savings Increased Efficiency and Ease of Change Management Easier and Faster De ice Replacement Upgrade Device Replacement, Identify Problems Before they Happen, Predictive Maintenance Strategy Reduced Spare Parts Inventory Reduced Number of Unnecessary Trips to the Field by a Technician Enhanced Process Diagnostics Enhanced Device Diagnostics 0 2 4 6 8 10 12 14 16 18 20 22 24 26
  • 11. The Maintenance Opportunity Should not be Underestimated 35% 63% of maintenance labor 35% results in no action!! 30% 28% 25% 20% 20% 15% 10% 6% 6% 4% 5% 0% Routine No Calibration Zero Off Plugged Failed check Problem shift lines Source: Shell Global Solutions
  • 12. Who is Realizing the Benefits? 5 Very High Return on Investment 14 Achieved Return on Investment 24 Not Sure 6 Did Not Y t A hi N t Yet Achieve Return on Investment B t E R t I t t But Expect T t To 25.5 % 6 Did Not Achieve Return on Investment and Do Not Expect To 9.1 % 10.9 % 43.6 % 10.9 % Most Are Unclear on the Long Term Economic Benefits They Are Achieving
  • 13. How Long Did It Take to Achieve Full Return on Investment? 2 0-3 Months 3 4-6 Months 5 7-9 Months 5 10-12 Months 3 12-18 Months 14.3 % 0 19-24 Months 23.8 % 3 Over two years 9.5 % 14.3 % 23.8 % 0.0 % 14.3 % Almost Half of Respondents Achieved a Full Return in Under a Year
  • 14. Best Practices for Project Success: Why Do Fieldbus Projects Fail? ♦ Poor Planning/Pre FEED Stage Involvement ♦ Lack of Employee Buy In k f l ♦ Lack of Management Buy In ♦ Lack of PAM Solution Deployment ♦ Lack of an Experienced Engineering Partner ♦ Lack of an Experienced Supplier Partner ♦ Lack of Proper Training
  • 15. Proper Training & Education is essential No single standard available Lack of management buy-in Lack of employee buy-in Lack of field workforce knowledge Increased training costs Strongly Agree Agree Insufficient host system functionality Neutral Disagree Multivendor interoperability issues Strongly Disagree Not proven in mission critical apps Initial cost is too high Lack of supplier support/commitment Not enough products available 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Lack of field workforce knowledge is key limiting factor in fieldbus implementation
  • 16. Up Front Planning is Essential to Success ♦ Get the Involvement of the Supplier and Partners ASAP ♦ Avoid the “Now that it’s Installed, What do we do Now?” Syndrome ♦ Lifecycle Benefits are Determined in the Planning Stage ♦ Need to rethink worker roles
  • 17. Employee & Management Buy In ♦ Employee buy in must reach from maintenance to operations and engineering ♦ Management buy in is essential, justification of the technology must match overall corporate objectives ♦ This is where training and education begins. Maintenance personnel could view fieldbus/HART as a threat. Show them how it will make them do their jobs better!
  • 18. Why is PAM so Important to HART & Fieldbus? 74 I plan to use PAM applications with fieldbus 64 No plans to use PAM applications 55 Currently use PAM with fieldbus 34.1 % 24 Would like to deploy PAM, but cannot 29.5 % 11.1 % 25.3 % Percent of Total Respondents Planning to Use PAM In their Fieldbus Projects
  • 19. Implementation of a PAM Solution in Conjunction with HART and Fieldbus % Improvement vs Traditional Maintenance Equipment Productivity Workforce Efficiency Equipment Life Defects Downtime Inventory Costs y Unplanned Breakdowns -60 -40 -20 0 20 40
  • 20. Impact of Fieldbus on Standard Work Processes and Procedures – 1=No Benefit at All; 5=Greatest Benefit N/A 1 2 3 Operations 4 5 Purchasing Engineering Maintenance 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Maintenance and Operations Are Getting the Most Benefit
  • 21. How Has Fieldbus Changed Responsibilities and Work Processes? Strongly Agree Agree Neutral Fieldbus has improved the productivity of the process engineer Disagree Strongly Disagree gy g Fieldbus results in enhanced operator effectiveness Fieldbus has improved the productivity of the maintenance technician Fieldbus has improved the productivity of the board operator Fieldbus has improved the productivity of the field operator 0 2 4 6 8 10 12 14 16 18 20 22 24 26 Users Believe the Biggest Impact Is on Maintenance Technician and Process Engineer
  • 22. Finding the Right Partner Services & Project Coordination Registered Partner Successful Fieldbus Devices & Products Partners Systems Industry Expertise
  • 23. Conclusions and Recommendations ♦ There remains a substantial installed cost benefit to fieldbus technologies, but the real value lies in the operational and lifecycle cost phase ♦ Many end users are not realizing the optimum benefit that fieldbus and HART technology can provide ♦ Training and education are essential. Applying essential fieldbus as a mere replacement for 4-20 mA guarantees project failure and zero ROI.