Industrial asset optimization overview slideshare
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Genpact aims to enhance industrial asset optimization to improve uptime and profitability for enterprises by leveraging remote monitoring, analytics, and data management. The company identifies challenges faced by OEMs and operators, such as inaccurate data and high service costs, and provides solutions to optimize asset management and service offerings. With a focus on innovation and risk management, Genpact helps clients increase competitiveness and adapt to industry-specific regulations.
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Gianni.giacomelli[at]genpact.com
David.petrucci[at]genpact.com
www.genpact.com/home/solutions/industrial-solutions/industrial-asset-optimization](https://image.slidesharecdn.com/industrialassetoptimization-overviewslideshare-140227065202-phpapp01/85/Industrial-asset-optimization-overview-slideshare-14-320.jpg)
Industrial asset optimization overview slideshare
- 1. Industrial Asset Optimization Improve asset uptime and service profitability through M2M design and deployment support, remote monitoring, data management, prognostics and in depth analytics Gianni Giacomelli Senior Vice President, Genpact David Petrucci Vice President, Industrial Solutions, Genpact
- 2. A Global Business Process Services Leader: Process Transformation and Outsourcing, Analytics, Technology What we do How we do it We help leaders of some of the largest enterprises transform and run their processes and operations, including the very complex and industry-specific Unbiased, agile combination of process science, related technology and analytics limits upfront costs and enhances future adaptability Right critical mass: • we are large (64,000+ global staff) but our solutions appropriately flexible • our top management is directly involved in our client partnerships Our impact We help enterprises to be more competitive by becoming more intelligent: adaptive, innovative, globally effective and connected… …by enabling tighter management of costs, risks, regulations, and supporting growth The results: US$22B* of impact for 800+ global clients PROCESS • ANALYTICS • TECHNOLOGY © 2014 Copyright Genpact. All Rights Reserved. 2
- 3. THE CHALLENGE PROCESS • ANALYTICS • TECHNOLOGY © 2014 Copyright Genpact. All Rights Reserved. 3
- 4. OEMs face financial and operational risks in the absence of an effective industrial asset optimization program Difficult service monetization • Difficult to transition from product to service-centric organization • Inaccurate installed base data and inadequate analysis limits service contract sale/renewal up to 20% of services revenues • Limited remote monitoring/diagnostics leading to high field fixes Higher service costs • Suboptimal field force scheduling, skill set matching Lower asset uptime • Unscheduled asset downtime impacts end-customer satisfaction and OEM’s market share. This provides untapped opportunity to maximize utilization by end customer Product differentiation Regulatory risk management PROCESS • ANALYTICS • TECHNOLOGY • Limited parts/tools availability due to inaccurate service forecasts, unplanned shutdown, limited triage across warehouses etc. • OEMs find it hard to create differentiation without strong value and performance engineering to create increasingly reliable machines • Usage of sensor data by end customer to create innovative service lines is possible • OEMs and operators need to overcome increasing number of environment (e.g for Oil & Gas) and operational (e.g NERC for energy equipment) regulations © 2014 Copyright Genpact. All Rights Reserved. 4
- 5. Similarly operators risk experiencing productivity loss and costly service operations Revenue from operations Higher service costs • Unscheduled asset downtime is undesirable and results in overall productivity loss (e.g. Oil & Gas, wind energy, automotive, mining, etc.) and revenues (e.g. healthcare, transportation) • Customer is significantly inhibited in its ability to negotiate service contract price based on the absence of operational data insights and SLA violations, resulting in higher costs getting agreed and paid • Limited analytics of remotely monitored operational data results in noncoordinated preventive maintenance activities, non-availability of spare parts in inventory and higher than desirable operational disruption • Operators need to better manage SLA related risks with the customers instead of routinely following OEM’s equipment maintenance programs Risk management • End customers/ operators need to overcome increasing number of environment (e.g for Oil & Gas) and operational (e.g NERC for energy equipment) regulations • Equipment operation data is regarded “sensitive” by end-customer/ operators and requires adequate data security measures PROCESS • ANALYTICS • TECHNOLOGY © 2014 Copyright Genpact. All Rights Reserved. 5
- 6. THE SOLUTIONS PROCESS • ANALYTICS • TECHNOLOGY © 2014 Copyright Genpact. All Rights Reserved. 6
- 7. Exponential potential exists by combining prognostics with service contract management… Optimized • New revenue • Minimum Damage • Minimum Cost • Planned Downtime Reactive • Extensive Damage • High Cost • Most Downtime PROCESS • ANALYTICS • TECHNOLOGY Traditional approach Process optimization Contract Analysis & Mgt External SLA Contract Analysis & Mgt Internal Predictive Modeling Integrated Platform Maintenance Optimization Statistical Analysis Fleet Anomaly Prediction Failure Prediction Algorithm Automation Health Monitoring Failure Association Reporting Borescope Inspections Diagnostics M2M Design & Build Data Integration Process maturity Integrated approach Operational Optimization Control Tower Customer Value Predictive • Some Damage • Moderate Cost • Moderate Downtime © 2014 Copyright Genpact. All Rights Reserved. 7
- 8. For example, service revenues can be enhanced by up to15%... Improvement potential Outcome Key areas Value drivers and Key levers Optimized Providing different tiers of service like uptime assurance, first time fix etc. 7-8% 9-10% Offer Parts Optimization Solution to operators (through accurate failure prediction) 4-6% 6-8% 10-15% 15-20% 8-10% 10-15% 5-8% 10-12% 8-10% 10-12% Cross-selling opportunities through detailed understanding and monitoring of customer accounts 5-7% 8-10% Reducing revenue leakage by capturing T&C’s correctly and addressing missed billing opportunities New Service Offerings Predictive 15-20% 20-25% Better installed base (IB) coverage by increasing IB accuracy, IB growth and targeted lead generation Increase service revenue by 10-15% New Contracts Effective bid and prospect management and winloss analysis ensuring higher win rates Better contract pricing through reliability based failure forecasting and past usage history Higher contract renewals and better pricing by increasing IB accuracy, past usage history based proposals etc. Existing Contracts Overall PROCESS • ANALYTICS • TECHNOLOGY 8-10% 12-15% © 2014 Copyright Genpact. All Rights Reserved. 8
- 9. …and service cost can be reduced by up to 10% Improvement Potential Outcome Areas Value Drivers Levers Service Cost Reduction by 8-10% Field Service Field service optimization • Reduced emergency dispatch • Centralized field and parts supplier team 8-10% 10-12% Batch service scheduling • Prognostics based scheduling • Consolidation between preventive and reactive visits 15-20% 20-25% Centralization • Consolidation of service operations back office 10-15% 20-25% Offshoring • Offshore L0 and L1 monitoring/ support 8-10% 10-12% Parts cost • Separate RFQ for service parts 5-7% 8-10% Parts availability • Dynamic forecasting • Part pooling at warehouse 10-12% 12-15% 5-6% 7-8% 4-5% 5-6% 6-7% 8-10% Contact Center Parts Management Predictive Optimized Inventory optimization & turnover • Triaging multiple warehouses • Obsolescence liquidation Kit configuration & optimization • BOM drill down analysis Overall PROCESS • ANALYTICS • TECHNOLOGY © 2014 Copyright Genpact. All Rights Reserved. 9
- 10. 4C framework for an optimized industrial asset management function Connect Collect Build robust and secure infrastructure for data gathering, rule based filtering and storage Utilize big data protocols to gather, filter and store data Compute Derive actionable insights from data Remote Monitoring & Diagnostics Control Enable proactive maintenance, engineering interventions and streamlined operating practices Service Revenue Enhancement • Installed base Firewall BIG Data? management • Service contract Internal Network IP SEC Tunnel DW ETL Internet Algorithms, Rules, Alerts Structured + Unstructured End client utilization Model free/Model based Self learning model/rule Customer Network Server Customer DATA Provides Public Routable IP for Connection Via VPN tunnel Data Quality Collation & Segregation Prognostics • Field service management management Automated Connectivity Monitoring Reliability based failure forecasting Test and monitor connectivity Collation & Segregation Failure mode analysis Early wear and tear detection PROCESS • ANALYTICS • TECHNOLOGY Service Cost Optimization • Parts Performance engineering Customer Internal Network management • New service lines Asset Reliability • Reduce unplanned downtime • Reduce financial and operational risk • Less product failure rates © 2014 Copyright Genpact. All Rights Reserved. 10
- 11. Case example Client Challenges Solution and Results Remote Connectivity Connectivity solution for globally installed assets Scalable and flexible solution for different controls systems Cyber secure NERC compliant solution design and deployment Legacy process improvement by 90% - TAT reduced by 3 months Data Quality • • • • 24x7 monitoring of remotely connected assets Remote trouble shooting for reliable connectivity Data quality metrics improvement by 40% Sustained connectivity uptime to 95% Data Management Automation • Implement automation for data management in the asset health center • Design algorithms for anomaly identification and alerts automation • Drive automation in monitoring and diagnostics process • Achieved $2 million savings thru automation Prognostics Model Development A leading Aero turbine OEM • • • • • Rule based sensor health check process implementation • Develop physics based model to enable part load performance monitoring • Loss attribution and degradation analysis PROCESS • ANALYTICS • TECHNOLOGY © 2014 Copyright Genpact. All Rights Reserved. 11
- 12. CONTACT GENPACT TO EXPLORE THE “ART OF THE POSSIBLE” PROCESS • ANALYTICS • TECHNOLOGY © 2014 Copyright Genpact. All Rights Reserved. 12
- 13. About Genpact Genpact Limited (NYSE: G) is a global leader in transforming and running business processes and operations, including those that are complex and industry-specific. Our mission is to help clients become more competitive by making their enterprises more intelligent through becoming more adaptive, innovative, globally effective and connected to their own clients. Genpact stands for Generating Impact – visible in tighter cost management as well as better management of risk, regulations and growth for hundreds of long-term clients including more than 100 of the Fortune Global 500. Our approach is distinctive – we offer an unbiased, agile combination of smarter processes, crystallized in our Smart Enterprise Processes (SEPSM) proprietary framework, along with analytics and technology, which limits upfront investments and enhances future adaptability. We have global critical mass – 62,000+ employees in 24 countries with key management and corporate offices in New York City – while remaining flexible and collaborative, and a management team that drives client partnerships personally. Our history is unique – behind our single-minded passion for process and operational excellence is the Lean and Six Sigma heritage of a former General Electric division that has served GE businesses for more than 15 years. For more information, visit www.genpact.com. Follow Genpact on Twitter, Facebook, and LinkedIn. PROCESS • ANALYTICS • TECHNOLOGY © 2014 Copyright Genpact. All Rights Reserved. 13