design, transform and run intelligent industrial asset optimization operations
TRANSCRIPT
DESIGN ∙ TRANSFORM ∙ RUN
EXECUTEACTIONS
PROVIDEVISIBILITY
EXECUTEACTIONS
STEER
EFFECTIVENESSPROVIDE
VISIBILITY
PROVIDEVISIBILITY
STEER
EFFECTIVENESS
EXECUTEACTIONS
http://www.genpact.com/home/solutions/industrial-solutions/industrial-asset-optimization
IMS Industrial Asset Optimization Intelligent OperationsSM
Design, transform and run intelligent industrial asset optimization operations to help OEMs and operators enhance service revenues and reduce costs
Gianni GiacomelliSenior Vice PresidentHead of Genpact Research InstituteChief Marketing Officer
DESIGN • TRANSFORM • RUN 2© 2015 Copyright Genpact. All Rights Reserved.
We design, transform and run the intelligent enterprise operations that strengthen our clients’ competitiveness
Genpact ► Overview
*US$22B is a cumulative figure since 2006
*Cumulative figure since 2006
Wh
at w
e d
o Help leaders of some of the largest enterprises
…design, transform and run
…business-critical operations including the very complex and industry-specific
Ho
w w
e d
o it
Smart Enterprise Processes (SEPSM) crystallizes operational and domain expertise, rigor inherited from GE
Achieve Intelligent OperationsSM through Systems of EngagementTM, Core IT and Data-to-Action AnalyticsSM
The strength of a large company, but flexible solutions; top management directly involved with clients
Unbiased and agile solutions limit upfront costs, reach results faster and enhance adaptability
Our impact
We make clients more competitive:
• More efficient, effective
• Able to better manage costs, risks, regulations, and support growth
The results: US$22B*+ of impact for 800 global clients
DESIGN • TRANSFORM • RUN 3© 2015 Copyright Genpact. All Rights Reserved.
Domain + Technology + Analytics + Operations = Reimagine processes, build Intelligent Operations
Genpact Intelligent OperationsSM
EXECUTE
ACTIONS
PROVIDE
VISIBILITYSTEER
EFFECTIVENESS
EXECUTE
ACTIONS
Smart ProcessesDesign, transformation and operations support generate real impact by aligning tightly to measurable business outcomes thanks to proprietary SEPSM framework
Smart Decision ServicesGenpact Data-to-Action AnalyticsSM leverage Intelligent Process Insight EngineSM and advanced organizational delivery models
Smart Technology Genpact Digital harnesses effective, agile technology including Genpact Systems of EngagementTM and effective Core IT services
Genpact Intelligent OperationsSM
DESIGN • TRANSFORM • RUN 4© 2015 Copyright Genpact. All Rights Reserved.
Industry challenges
Solution
Impact
Case studies
DESIGN • TRANSFORM • RUN 5© 2015 Copyright Genpact. All Rights Reserved.
OEMs face financial and operational challenges in the absence of an effective industrial asset optimization program
Industrial asset optimization ► Industry challenges ► OEM
Difficult service monetization
• Difficult to transition from product- to service-centric organization
• Inaccurate installed base data and inadequate analysis limits service contract sale/renewal causing losses of up to 20% of services revenues
Higher service costs
• Inadequate remote monitoring/diagnostics leads to high field fixes, suboptimal field force scheduling and skill set matching
• Limited parts/tools availability due to inaccurate service forecasts, unplanned shutdown, limited triage across warehouses etc.
Lower asset uptime
• Unscheduled asset downtime impacts end-customer satisfaction and OEM’s market share
Undifferentiated products
• OEMs find it hard to create differentiation without strong value and performance engineering to create more reliable machines
Increasing regulatory oversight
• OEMs and operators need to overcome increasing number of environment (e.g. for oil & gas) and operational (e.g. NERC* for energy equipment) regulations
*North American Electric Reliability Corporation
DESIGN • TRANSFORM • RUN 6© 2015 Copyright Genpact. All Rights Reserved.
Operators face revenue and margin pressures due to asset downtime, expensive servicing and stringent regulations
Industrial asset optimization ► Industry challenges ► Operators
Asset downtimeUnscheduled asset downtime results in overall productivity loss (e.g. oil & gas, wind energy) and revenues (e.g. healthcare, transportation)
Higher service costs
Limited analytics of remotely monitored operational data results in non-coordinated preventive maintenance activities, non-availability of spare parts in inventory and higher than desirable operational disruption
Data security and compliance issues
Equipment operation data is regarded “sensitive” by end-customer/ operators and requires adequate data security measures
Suboptimal contract negotiation
Absence of operational data insights and SLA violations, results in higher costs getting agreed and paid
Increasing regulatory oversight
Operators need to overcome increasing number of environment (e.g. for oil & gas) and operational (e.g. NERC* for energy equipment) regulations
*North American Electric Reliability Corporation
DESIGN • TRANSFORM • RUN 7© 2015 Copyright Genpact. All Rights Reserved.
Intelligent OperationsSM to minimize revenue volatility, maintenance cost and improve controllership
Industrial asset optimization ► Solution ►Intelligent OperationsSM
Continuous learning• Suggest changes to data input
to minimize error • Alter maintenance schedules• Modify confidence intervals for
cost and revenue projections
4
4
Gather feedback
PROVIDEVISIBILITY
Consolidate, Report
Analyze
Run data-to-insight• Master data preparation• Analysis of deviation • Domain driven identification
of contextual root causes (e.g. material tagging)
• Formalize hundreds of business rules to prevent incorrect inputs
2Aviation engine contract analytics:Data-to-ActionSM process
EX
EC
UT
EA
CT
ION
S
Operate
Measure
• Identify target outcome Revenue volatility, maintenance cost, unplanned downtime
• Identify metrics: Data quality, cost estimates accuracy
1
ILLUSTRATIVE
SIMPLIFIED
STEER
EFFECTIVENESS
CorrectStrategy and
Targets
Improve execution practices • Determine data entry error patterns• Implement industrial internet
platform to flag future issues and enable continuous learning
• Change management reduces systematic issues
3
Implement
DESIGN • TRANSFORM • RUN 8© 2015 Copyright Genpact. All Rights Reserved.
An industrial asset optimization portfolio that enhances asset uptime and reduces revenue leakage and service costs
Industrial asset optimization ► Solution ►Portfolio
Structured
Unstructured+
Automated connectivity monitoring
Data
Customerinternalnetwork
IP sec tunnel
Internet Customer network server
Customer provides public routable IP for connection via VPN tunnel
Firewall
Internal network
Performance engineering
Reliability based failure forecasting
Failure mode analysis
Early wear and tear detection
DW
ETL
Big data?
Data quality, collation and segregation
End client utilization
Algorithms, rules, alerts
Model free/model based
Self learning model/rule
Test and monitor connectivity
Connect Collect Compute
Build robust and secure infrastructure for data gathering, rule based filtering and storage
Utilize big data protocols to gather, filter and store data
Derive actionable insights from data
Remote monitoring and diagnostics
Prognostics
Service cost optimization
• Field service management
• Parts management
Service revenue enhancement
• Installed base management
• Service contract management
• New service lines
Asset reliability• Reduce unplanned
downtime• Reduce financial and
operational risk• Lower product failure
rates
Enable proactive maintenance, engineering interventions and streamlined operating practices
Control
DESIGN • TRANSFORM • RUN 9© 2015 Copyright Genpact. All Rights Reserved.
Value drivers
Areas of improvement
• Proactive part replacement
• Better installed base coverage
• Higher contract renewals and win rates
• Field service optimization• Contact center
centralization• Parts inventory
management • Returns optimization
• Remote monitoring• Reliability based failure
forecasting• Lower time to repair• Field force optimization
• New service offerings• New contract revenues• Existing contract
revenues
• Field operations• Contact center• Parts and warranty
management
• Planned downtime• Unplanned downtime
Significant operational and financial impact
Industrial asset optimization ► Impact
What can be achieved
12 - 15%More revenue
8 - 10%Lower cost
6 - 8%More asset
uptime
Revenue leakage
Cost escalation
Riskmanagement
DESIGN • TRANSFORM • RUN 10© 2015 Copyright Genpact. All Rights Reserved.
Genpact’s industrial asset optimization solutions help clients realize measurable impact
Industrial asset optimization ► Case studies
ImpactChallenge Solution
High levels of unscheduled maintenance and low uptime and efficiency of gas turbines
Seamless remote monitoring infrastructure setup and preventive and ongoing maintenance support
10% improvement in asset uptime, and improvement in gas turbine efficiency
Global gas turbine manufacturer
Global aerospace OEM
Incorrect contract pricing leading to revenue leakage, failure prediction solution outdated
Sophisticated contract analytics solution, supported by a reliability life data analysis for failure prediction
US$10B in service contract pricing for all long-term contracts being delivered to the client
Power generation OEM
High cost of maintenance during service contract lifecycle
Advanced service contract process to identify and categorize failure types, and analytics to minimize cost of maintenance
Reduction in maintenance costs by 10%, and more accurate prediction of failure events
DESIGN • TRANSFORM • RUN 11© 2015 Copyright Genpact. All Rights Reserved.
About Genpact
Genpact (NYSE: G) stands for “generating business impact.” We design, transform, and run intelligent business operations including those that are complex and specific to a set of chosen industries. The result is advanced operating models that support growth and manage cost, risk, and compliance across a range of functions such as finance and procurement, financial services account servicing, claims management, regulatory affairs, and industrial asset optimization. Our Smart Enterprise Processes (SEPSM) proprietary framework helps companies reimagine how they operate by integrating effective Systems of EngagementTM, core IT, and Data-to-Action AnalyticsSM. Our hundreds of long-term clients include more than one-fourth of the Fortune Global 500. We have grown to over 68,000 people in 25 countries with key management and a corporate office in New York City. Behind our 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 16 years.
For more information, visit www.genpact.com.
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© 2015 Copyright Genpact. All Rights Reserved.
Genpact Research Institute
The Genpact Research Institute is a specialized think tank harnessing the collective intelligence of Genpact – as the leading business process service provider worldwide - its ecosystem of clients and partners, and thousands of process operations experts. Its mission is to advance the “art of the possible” in our clients’ journey of business transformation and adoption of advanced operating models.
www.genpact.com/research-institute