vimal kapur - honeywell · vimal kapur president, honeywell process solutions industry perspective...
TRANSCRIPT
CAGR 2014–15
CAGR 2010–14
Since the last recession, industries have been challenged to do more with less CAPEX…
2015 Americas CAPEX ($B)
Slower project activity across multiple industries with significant impact on Oil & Gas since Q4 2014
$280 $160
$100 $90
$60 $40
$20 $15
Oil & Gas Power Batch MMM
Chemicals Refining
P3 Water
12% -28%
2% 3%
1% 0.5%
6% -7%
3% 2%
-2% -10%
9% 0%
2% -5%
Total $ 760M Source: IHS May 2015 Estimates
-25.7%
20.2% 18.9%
0.4% 1.2% -0.4%
-12.3%
2009 2010 2011 2012 2013 2014 2015
…as well as do more with less OPEX
Change in OPEX Spending vs Prior Year
Bounced back just after recession; very tight spending since then with further declines in 2015
Source: IHS May 2015 Estimates
Aging assets and workforce are driving a larger skills gap
9% 10% 16%
12% 11%
42%
< 5 5 to 10 11 to 20 21 to 30 31 to 40 > 40 years
22% of the Baby Boomer Workforce has Retired Since 2006…but the Plants from the Same Generation are Still Operating
Baby Boomers in the Workforce
Asset Age Average Asset Age 36.5 years
Source: Deloitte analysis based on data from U.S. Bureau of Labor Statistics
60 60 60 60 59 56 55
53 51
49 48 46
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 M
illio
ns
22%
Obsolescence of open systems are introducing disruption to plant operations
Closed Systems Open Systems
Benefits
Challenges
• Proprietary • Expensive hardware • Isolated systems
• Limited 3rd party influence • Standard less expensive hardware
(PCs) • Integration with other systems
• Dependence on 3rd party • Faster HW and SW obsolescence
Windows XP Hit End of Support on April 8th 2014
Increasing Threat of Cyber Attacks
48% increase in overall number of detected attacks
Power & Utility companies reported a 6-fold increase in number of detected threats from the year before
3.4 9.4
22.7 24.9 28.9
42.8
2009 2010 2011 2012 2013 2014
Millions of Detected Attacks Across All Industries
Source: PWC The Global State of Information Security Survey 2015
48%
Environmental Regulations Continue to Increase
EPA’s Clean Power Plan “Estimates are that it will cost the power industry up to $480B over the next 15 years to comply.”
NERA Economic Consulting
Tighter Emission Controls for Automobiles
“Rules are likely to cost Refiners $10B in capital costs and $2.4B/year in compliance expenses.”
Baker & O’Brien Consulting
National Emission Standards for Hazardous Air Pollutants
“Estimated cost to the Oil & Gas industry for compliance will be $170M annually.”
Environment Protection Agency
Boiler MACT
“The final boiler MACT rule is estimated to cost the Pulp & Paper industry $3B.”
Pulp & Paperworkers Resource Council
Safety Remains the Highest Priority but is Plateauing
Incident rate continues to drop, however
is the goal
Total Recordable Incidents per 100 Full Time Workers
Source: US Bureau of Labor Statistics, December 2014
3.9
3.6 3.5
3.4 3.4 3.3
2008 2009 2010 2011 2012 2013
0
Do more with less
Operate safely and in compliance
Leverage technology in order to stay relevant and competitive
In summary as operators you are asked to:
1
2
3
Manage the skills gap 4
DCS’ Expanding Role
Alarm Mgmt
RTU
Safety Systems
F&G Systems
Historians
PLC
Metering Systems Power
Mgmt Turbine Control Systems
Alarm Mgmt Safety
Systems PLC
RTU
F&G Systems
Historians
Turbine Control Systems
Power Mgmt
Metering Systems
Metering Systems
Alarm Mgmt
RTU Safety
Systems Power Mgmt
F&G Systems
Historians
PLC
Turbine Control Systems
DCS
DCS as the focal point for all your control functions
• Single system and user interface leveraging scarce resources
• Single platform facilitating and lowering the cost of installation and maintenance
• Doing more with less
Disparate systems performing isolated control of your plant
• “Black Box” control • Multiple user interfaces increasing
complexity and maintenance costs • Complex integration required to
bring data together
Cloud Engineering is now a standard part of HPS automation projects
Cloud Computing Milestones
Leverage Global Resources, Reduce Schedule and Lower Costs
Amazon enters the Cloud
Cloud use expands as more vendors enter the market
Open Source Cloud Movement takes hold
Cloud computing finds its niche
HPS embraces Cloud computing for customer projects
2181
9300
Jul-13 Nov-13 Mar-14 Jul-14 Nov-14 Mar-15
Cloud Project Use at HPS
# of Projects # of Virtual Machines on HPS’ Cloud
2006
2008
2010
2012
2013
As of April 2015 almost 2,200 projects have been executed in the cloud environment
We are simplifying FAT process by leveraging the Cloud
Securely connect physical hardware to Virtual System
• Controllers • Safety Manager • Serial I/O and field devices • 3rd Party Systems • Lab systems
Test Target Hardware and Applications from Anywhere in the World
We are reducing configuration and set up time by up to 60% using our Cloud tools
Cloud Based Factory
Web Channel Ordering & Download
• Transmitters ordered to exact engineered requirements
• Delivered fully configured right out of the box
• Eliminate ordering errors • Minimize paper work • Reduce commissioning time
We are also increasing training flexibility thanks to the Cloud
• Accessed over a private secure network • Very small footprint at customer site • Honeywell Support & Engineering
groups have instant access • Subscription pricing model
Honeywell-maintained Training System
Virtual OTS in the Cloud Hosted by Honeywell
Comprehensive & Integrated Process Safety Management
Worker Safety
Access Control & Monitoring Emergency Shut Down
Gas Detection Alarm Management
Operator Training Perimeter Monitoring
Asset Management
Detect Prevent Protect
Providing innovative solutions to continuously assess your cyber risks in real time
Intuitive interface with at-a-glance visibility and understanding with clear
KPIs and drill down detail
Proactively identifies cyber vulnerabilities and threats and quantifies and prioritizes risks
Actionable intelligence with advice and decision support
Immediate information for ongoing situational awareness
Game-changing, platform delivering real time monitoring and management of cyber security risks
Developed specifically for industrial environments
Driving the Industrial Internet of Things with OPC UA
“OPC UA is one of the most important modern standards for industrial facilities and many further scenarios in an intelligent and connected world. OPC UA is considered a central building block on the way towards Industrie 4.0. It is the first unified, worldwide recognized industrial protocol for a secure smart factory.”
Holger Junker, Federal Office for Information Security, (BSI), Head of Division
Benefits • Native Security • Multi-platform implementation • Scalability – from embedded
smart sensors to mainframes • Easy engineering • Connectivity with context
(value & timestamp)
Downtime Monitoring
ERP
CMMS
Operations Monitoring
Asset Manager
Excel RCM Strategy
Tool
Operator Round
RBI Database
Condition Monitoring
RTDB
Your investments in applications are not fully leveraged…
Information between data sources Applications
Further complicated by number of human interfaces
…but can be brought together through dashboards and workflows for better decision making
Complete Solution to Enable SMART Operations
Visualization Metrics Management Events & Notification Collaboration & Workflow
HPS Software Mobile Enabled • Mobile device used for shift handover • Applications available for your iPhone/iPad
Control Functionality Enabled • Safe operating limit dashboards for your
mobile device
Alert Enabled • Alarms and alerts visible on your mobile device • Process deviations on your mobile device
Expansion of Mobility Solutions
0.0 8.0 12.0 15.0 2.0 6.0
10.0 2.0
6.0
12.0
2012 2015 2016 2017
Control Functionality Enabled
Alert Enabled
HPS Software Mobile Enabled
Applications Mobile Enabled
Driving Outcome-based Solutions in Services
2015 marks the “rise of the outcome-based solution” February 2015, CFO Magazine
2015: Outcome-based, value-priced
2014: Cost-plus, break-fix
Customer Revenue / Production
HON Price
+/-10% Contract Performance Swing
Customer Revenue / Production
HON Price
Expect 50% Adoption of Outcome-based Contracts Over the Next Three Years
Do more with less
Operate safely and in compliance
Leverage technology in order to stay relevant and competitive
Everything that we are doing is focused on helping you to…
1
2
3
Manage the skills gap 4
Our objective is to put you, the customer, at the center of everything we do…
Cash Order
Delivery
Presales
Customer Touch Points
Time to bill Invoice accuracy
Delivery Support
On-time product delivery Product quality Technical support
On-time proposals Expected quality
Access to information
Order acceptance and confirmation
Timeliness of communication
On-track with schedule Critical path avoidance
Re-work Product quality Expected delivery time Expected lead time
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2
5
4
3
6
My Priorities
Continue to innovate to address your biggest concerns • Do more with less • Operate safely and in compliance • Leverage technology in order to stay relevant and competitive • Manage the skills gap
Continue to invest in technology differentiation and leading edge automation solutions
Build and strengthen our HPS culture to put customer experience at the heart of everything we do