lifecycle service contracts - siemens · spare parts, repair services extended exchange option...

Siemens AG 2016. All Rights Reserved. CS event: Service 2020.

Lifecycle Service Contracts

Industry Services

Siemens AG 2016. All Rights Reserved.

Your company strategy? Reactive versus Proactive approach

Life Cycle Services

Cost / year

Life Cycle Services

accumulated

Obsolescence

risk

year



year

Life Cycle Services

Cost / year

Life Cycle Services

accumulated

Obsolescence

risk



Reactive service: risk- / cost situation

Strong unsteady obsolescence risk

Unsteady efforts for maintenance and risk coverage

Unsteady and no predictable cost

Proactive LCS approach: Risk-/costs situation

Minimized obsolescence risk

Cost for maintenance and risk cover are optimized

Costs are predictable and "flat rate„ if required

Life Cycle Services

Cost / year

Life Cycle Services

Cost / year

Life Cycle Services

accumulated

Life Cycle Services

accumulated

Obsolescence

risk

Obsolescence

risk


System Initial Cost

Initial Engineering Cost

Installation & Commissioning Cost FAT

End of Life

Investment

Modifications

Operating Cost

Maintenance Support Cost

Start Operation

Lif

ecycle

Co

st

CAPEX

Capital Expenses

OPEX

Operational Expenses

Proposal

Lifecycle

Services

Contracts

up to 15 years

Market needs TCO is an important issue for the customer

Service & Support

Modernization, Update, Upgrade

Project

Proposal


Parameters for the LCS – KPI

LC-Period 15 years

Investment cost (project)

Upgrade cost: Upgrade (PC-HW, SW-Lic., Services)

Cost for maintenance services

(preventive, corrective services, spare parts supply,..)

„LCS–KPI“ = (modernization cost + maintenance cost) /a

Investment cost

“Go to Market” - Strategy Benchmark for Life Cycle Service contracts LCS-KPI


Higher upgrade cost for SW Upgrades

Higher upgrade cost for SW adaptions & Audit

High cost peaks ( investment budget)

Never touch a running system (LC–KPI = 3,5 %)

0

50.000

100.000

150.000

200.000

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

Upgrade Services

HW

Audit

SW-Upgrade packages / SUS

0

50.000

100.000

150.000

200.000

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

0

50.000

100.000

150.000

200.000

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

Yearly SUS cost ( maintenance budget)

Higher upgrade cost for SW adaptions & Audit

Reduced cost peaks for upgrades

Be prepared for an upgrade (LC–KPI = 3,3 %)

Strategy Different Approaches – Example of optimized cost in case of PCS 7 LCS

Reduced SUS cost (long term contract)

Reduced Upgrade cost “Design for LCS”

Reduced lifecycle cost, cost prediction

Reduced Risk, Improved Availability

Fix lifecycle cost LCS-contract (LC–KPI = 2,25 %)


SIEMENS answer: Modular and standardized LCS contracts

SIMATIC

Lifecycle Services

SIMATIC

System

Assessment /

Audit

SIMATIC

System

Assessment /

Audit

Lifecycle

Information

Services

Lifecycle

Information

Services

Spare Parts,

Repair

Services

Spare Parts,

Repair

Services

Extended

Exchange

Option

Extended

Exchange

Option

Asset

Optimization

Services

Asset

Optimization

Services

SIMATIC

Remote

Services

SIMATIC

Remote

Services

SIMATIC

Virtualization

as a Service

SIMATIC

Virtualization

as a Service

SIMATIC

Inventory

Baseline

Services

SIMATIC

Inventory

Baseline

Services

Online

Support,

Technical

Support

Online

Support,

Technical

Support

Modernization

Upgrade /

Update

Services

Modernization

Upgrade /

Update

Services

Modernization

/ Updates

/ Upgrades

Modernization

/ Updates

/ Upgrades

Asset

Optimization

Services

Asset

Optimization

Services

Inspection Inspection Maintenance Maintenance

Lifecycle

Information

Services

Lifecycle

Information

Services

Lifecycle

Service

Contracts

Spare Parts Spare Parts SIMATIC

Remote

Services

SIMATIC

Remote

Services

Support

Services

Support

Services

Repair

Services

Repair

Services


Page 10

Service Agreements / Contracts Lifecycle Service Contracts

Maintenance

Services

Maintenance

Services

Modernization

Services

Modernization

Services Lifecycle

Service

Contracts

Support

Services

Support

Services

Spare Part

Services

Spare Part

Services

Lifecycle Contracts / Service Contracts

Lifecycle Contracts / Service Contracts

Managed Service Contract

SLA / KPI Fulfilment:

Fix Lifecycle Service Costs

Defined Migrations Steps

Service Performance

Logistics & Delivery

Managed Service Contract

SLA / KPI Fulfilment:

Fix Lifecycle Service Costs

Defined Migrations Steps

Service Performance

Logistics & Delivery

Customized lifecycle service contract,

containing various service products out of the

Industry Services portfolio. All service

parameters, such as duration, defined

migration steps, logistics, contract

management, etc. are individually combined

and agreed upon.

AUTOMATION –DIGITAL FACTORY

SCADA – PROCESS AUTOMATION

DRIVES

Repair

Services

Repair

Services

Consulting

Services

Consulting

Services


Page 11

Simatic PCS 7 lifecycle service contract

LCS contract

Online Support (Internet, FAQ

Technical support (standard / AVC)

Spare part provision & delivery

Repair service

Maintenance Support Service

Spare parts & Repair service

Product Service & Support

Service contract management

Preventive Maintenance (remote / on site)

Corrective maintenance on site

On call service via dispatch center

SW Upgrade/Update service

Modernization

PC / Server upgrade service

System upgrade service

Adaption application (Interfaces)

LCS agreement (site specific)

1 time upfront

2.1.1 Service Setup p/a

2.1.2 Inventory baseline service (inventory capturing) p/a

2.1.3 Lifecycle Information Services p/a

2.1.4 Asset Optimization Services - Analysis p/a

2.1.5 System Assesment/ Audit p/a

cyclic / a

2.2.1 Service Contract-Management p

2.2.2 Lifecycle Information Services p

2.2.3 Produkt-Service & -Support

2.2.3.1 Online Support p

2.2.3.2 Technical Support (AVC Card) (opt.) p

2.2.4 Maintenance-Support Service

2.2.4.1 Preventive maintenance (on-site / remote) p

2.2.4.2 Correctice maintenance (on-site / remote)

08:00am to 5:00 pm (Mo to Fr) aacc. to off icial

service price list

On call service

according to service times

2.2.5 Spare parts

spare parts via Siemens Logistic aacc. to off icial price

list

2.2.7 Software-Update

2.2.7.1 Microsoft Security-Updates (opt.) p

2.2.7.2 Software-Update PCS 7 (opt.) p

2.2.8 Upgrade-Services (Hardware and Software) p/a

Mandatory modules

p lump sum price

a price to time & material

opt. Modul optional

2.2.4.3 (opt.) p

2.2.6 Modernization of the PCS 7 System

Price

(opt.) a

(opt.) aacc. to off icial

service price list

acc. to off icial

service price list

Service Modules

2.1 Basic Services (1 time upfront)

2.2 Cyclic Services

Service

periods00:00 am to 12:00 pm (Mo to Sa)

00:00 am to 12:00 pm 365 days


Page 12

Market needs NAMUR AK 2.11 “NE 121” is requesting adequate Lifecycle Services from DCS suppliers

Assure system availability

Assure investment protection

Maintaining the function of the control

system

Maintaining the functionality to the next

DCS version

The cycles for migration and upgrades

are specified

Suitable measures for the avoidance of

obsolescence

Requirements

Preventive, Corrective Maintenance

Variable scope of supply

Predictable Cost LCS contract

Contract up to 15 years

Assured serviceability

All Upgrades included

Defined migration steps

Obsolescence Management

Siemens Offering


Page 17

Extended

Lifecycle Service

Basic

Lifecycle Service

Maintenance

Service

Standard

Service

Online Support, Technical Support

Standby Service, Repair

Inspection, Maintenance

Obsolescence Management

(Information Service)

Spare Parts Inventory (Option)

Software Update

Service

Modernization

Update/Upgrade

Contract Modules Upgrade of the PCS 7 SW and the relevant PC HW

Adaption of the application (Interfaces)

Mgmt. of SW Updates, Service Packs and Hotfixes

Implementation due to customer’s needs

Delivery and management of spare parts

Spare part warehouse (on customer’s site)

Plant specific product and service information

Recommendations on spare part strategy

Check system load & resources, Log-files

Check Application, Back Ups and System Images

SIMATIC PCS 7 Lifecycle Services Scope of contract adaptable to the customer’s requirements

Se

rvic

e M

od

ule

s

Investment Protection

Assure System Availability

Assure Maintainability

Decreasing maintenance

people on customer side

Avoid Obsolescence risk –

Assures Spare Parts

Transparent life cycle cost

Up To Date Plant

Driver

lifecycle service contracts - siemens · spare parts, repair services extended exchange option...

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