You are on page 1of 17

March 22 2011, Pertti Weissenfelt

ABB Full Service


Maintenance as Service Business Maintenance as Service Business
Industrial Viewpoint
ABB Group
September 1, 2011 | Ver. 1.1 Slide 1
Table of Contents
What is Industrial Maintenance Service?
Maintenance Service keep cost focus but get
back to production factors
Outsourcing evolving in industrial maintenance
What is general and what is industry specific g y p
Structuring maintenance services industrial
viewpoint
Industy specific maintenance offering an
example
Summary
ABB Group
September 1, 2011 | Ver. 1.1 Slide 3
ABB Group
September 1, 2011 | Slide 3
What is Industrial Maintenance Service?
Industrial maintenance usually Industrial maintenance usually
refers to the repair and upkeep of
the total industrial plant consisting
of different types of equipment of different types of equipment,
machines and technology used for
production.
According to this wide variety of
different kind of technology and
equipment, industrial maintenance
t h i i d t b lti technicians need to be multi-
skilled individuals, proficient in
many tasks and to know the
facility and process that they are facility and process that they are
maintaining extremely well.
ABB Group
September 1, 2011 | Ver. 1.1 Slide 4
Key Objectives of Asset Performance Management
Smart Information
Asset Performance
Operations
Mainten-
Manage
Improve
Asset
ance
Improve
Asset
g
Critical
Issues and
Constraints
Asset
Utilization
Asset
Availability
Sustainability Stewardship
ABB Group
September 1, 2011 | Ver. 1.1 Slide 5
Source: Asset Performance Management for Process Industries
ARC Strategies, August 2010
What drives our businesses?
Industrial manufacturing, Capex, commodity production
Forecast suggests
industrial production
World GDP and industrial production growth
Source: Global Insight; Nov 2010
GDP
Industrial
Forecast
p
growth will decelerate
towards next year.
Commodity prices
ti dth i d
2
4
6
10
20
30
GDP
growth %
World
GDP
production
growth %
Industrial
production
China
continued their upward
trend, but still are below
pre-crisis level.
Oil price (WTI) averaged
4
-2
0
2
20
-10
0
10
Industrial
production
US
Industrial
production
Eurozone
p ( ) g
$80 a barrel during last 3
months; growth reflected
renewed investor appetite
for risk, consumption rise,
-4 -20
0
8
Q
1
0
8
Q
2
0
8
Q
3
0
8
Q
4
0
9
Q
1
0
9
Q
2
0
9
Q
3
0
9
Q
4
1
0
Q
1
1
0
Q
2
1
0
Q
3
1
0
Q
4
1
1
Q
1
1
1
Q
2
1
1
Q
3
1
1
Q
4
Commodity prices
indexed, Jul08=100; source: GF-SCM; LME; EIA; MetalBulletin; Nov 2010
, p ,
weakness of US dollar.
Copper price has nearly
reached pre-crisis level,
drivenby fiscal stimulus
75
100
125
Iron Ore
Aluminum
Copper
Pre-crisis level
driven by fiscal stimulus
measures and restocking;
China and emerging Asia
mainly driving the growth. 25
50
75
0
8
t
0
8
0
9
r
0
9
0
9
t
0
9
1
0
r
1
0
1
0
t
1
0
Steel
Crude oil (WTI)
ABB Group
September 1, 2011 | Ver. 1.1 Slide 6
ABB Group
September 1, 2011 | Slide 6
J
u
l
O
c
t
J
a
n
A
p
r
J
u
l
O
c
t
J
a
n
A
p
r
J
u
l
O
c
t
The focus - Primary Drivers for maintenance
Management Management
ABB Group
September 1, 2011 | Ver. 1.1 Slide 7
Outsourcing evolving in industrial maintenance
Today more and more of the common
coals for industrial maintenance, coals for industrial maintenance,
increasing efficiency, cutting costs and
extending the life time of production
assets, are being received by
maintenance outsourcing
ABB Group
September 1, 2011 | Ver. 1.1 Slide 8
Outsourcing evolving in industrial maintenance
The cost of Industrial Maintenance in Europe will be growing
1,5% per annum until 2015.
Mainentenance outsourcing is estimated to increase from the
rate of 36% (2007) to 60% by the year 2015
ABB Group
September 1, 2011 | Ver. 1.1 Slide 9
Source: FIM Studie
AlixPartners 2008
rate of 36% (2007) to 60% by the year 2015
Business Models of Industrial Maintenance Service
Maintenance providers critical task is to select the business
model and balance between:
1 Customers maintenance strategy 1. Customers maintenance strategy
2. Maintenance providers own strategy
Service providers business model depends on: Service providers business model depends on:
1. Industrial technological and system know-how
2. Industry process know-how
3 Size and resources 3. Size and resources
4. Own background
E.g. ABB Industrial Service main categories
Life-cycle services
Consulting services Consulting services
ABB Full Service
ABB Group
September 1, 2011 | Ver. 1.1 Slide 10
Example of maintenance Offering
ABB Full ServiceValue Proposition
Core Features:
ABB Full ServiceValue Proposition
Provenwith 300+ Core Features:
1. Complying with HSE
regulations at minimum
2 I i l t d
Proven with 300+
completed
agreements
worldwide
Revenues 2009
over 1BUSD
Energy
Cost Savings
Indirect
Benefits
n
e
f
i
t
s
Energy
Cost Savings
Indirect
Benefits
n
e
f
i
t
s
2. Improving plant and
financial performance
3. Managing maintenance
with a business mindset
over 1 BUSD
5,500+direct
service
professionals
Delivery in more
th 20 t i
Maintenance
Plant
Performance
Benefits
S
a
v
i
n
g
s

/

B
e
n
Maintenance
Plant
Performance
Benefits
S
a
v
i
n
g
s

/

B
e
n
with a business mindset
4. Increasing reliability and
life-time of process
equipment
Globally supported
l t f
than 20 countries
Maintenance
Cost Savings
Year 1 Year 2 Year 3 Year 4 Year 5
Maintenance
Cost Savings
Year 1 Year 2 Year 3 Year 4 Year 5
equp e t
5. Managing change and
creating a service culture
6 Giving access to resources
long-term, performance-
based agreements in which
ABB commits to maintain
and improve the
production and equipment
6. Giving access to resources
and knowledge of ABBs
global network
production and equipment
performance, energy
efficiency and reliability for
an entire facility with
agreed cost base
ABB Group
September 1, 2011 | Ver. 1.1 Slide 11
ABB Group
September 1, 2011 | Ver. 1.1 Slide 11
agreed cost base
What is general and what is industry specific
70% of all maintenance is seen as common practices in all industries
Th t i i d t ifi f l i P l & P I d t The rest is industry specific as for example in Pulp & Paper Industry:
Safety at work
Process knowledge, Trouble shooting, Optimization g g
Quality requirements for the final product for customers
Material technology especially in pulp mill equipment
R ll S i d i di Roll Service and grinding
Quality Control System Service
Web Inspection System Service
Men
M t i l C t
Drives
Hydraulics
C diti it i
Input Output
Material
Machine
Method
Cost
Quality
Delivery
Condition monitoring
Lubrication
Industry -specific
15% 15% 70%
Common Practices Site-specific
ABB Group
September 1, 2011 | Ver. 1.1 Slide 12
Industry specific Common Practices Site specific
Structuring maintenance services industrial viewpoint
Most maintenance management and Most maintenance management and
organization models are structured
according to the production
processes of the industry
In Pulp and Paper the structure
usually separates the different
departments like pulp production,
power plant, paper machines and p p , p p
converting as their own maintenance
areas. That is because of the
complexity of the mills and machinery
in different areas even in the same Men in different areas even in the same
industry.
In addition to these there usually is a
common services department which is
Input Output
Men
Material
Machine
Method
Cost
Quality
Delivery
getting smaller and smaller as these
services are today done more by local
subcontractors.
Input Output
15% 15% 70%
ABB Group
September 1, 2011 | Ver. 1.1 Slide 13
Industry -specific Common Practices Site-specific
Industrial maintenance offering an example Roll
Service Service
Paper quality depends on several issues like the
raw materials, the mixture of them, the short
circulation and after that the head box and the
former of the paper machine. All these are crucial
for the final paper quality and the mistakes taken p p q y
in these phases are impossible to correct later in
the process.
After these the quality is made or totally destroyed
b th ll i th hi ti hi by the rolls in the paper machine, coating machine
or calanders. It requires a lot of know how and
experience to know when each roll in its own
position is good enough to perform its own task in
th S ll j t t l d th the process. Some rolls are just to lead the paper
into the next phases of the process but most of
them are doing something for the profile or the
surface of the paper - the quality.
A roll maintained and service to a right quality at a
right way and equipment at the right time will
ensure a the quality of the paper.
ABB Group
September 1, 2011 | Ver. 1.1 Slide 14
Industrial maintenance offering an example of
Special Services to Support Maintenance Agreement
24/7 Support
Preventive
Theoretical production time
24/7 Support
maintenance
Service
Spare check
Planned production time
Non-
production
time
Drives
Runnability+
Remote
control
Gross operating time
Availability
losses
Equipment & process
failures
Planned shuts and
set-up& adjustments
Drives
O ti i ti
Runnability+
Loop
Performance
Net operating time
Speed
losses
Reduced speed
Idling and minor
stoppages
Optimization
WIS
Site survey
QCS
Valuable
operating time
Quality
losses
Defects in process
Start-up losses
Process
bili
Analysis
Trim audits
E t
Process
Optimizer
stability
Audit
OEE Online
measurement
ABB Group
September 1, 2011 | Ver. 1.1 Slide 15
Energy mgmt
& optimization
Summary
Down-turn has clearly affected to development of maintenance
k t market.
Indication that outsourcing trend will continue
Each industry sector have and they need to have their own Each industry sector have and they need to have their own
specialists support
We need constantly new ideas and innovations on how to keep
continuouslyimproving our own behaviour and way of working continuously improving our own behaviour and way of working.
Best and most remarkable renewals and new ideas for
improvement come from an industry or business outside of your
own own.
ABB Full Service is focusing on several, but carefully selected,
industry areas, Pulp & Paper, Oil & Gas, Metals and Minerals
h i th t i df th i d t ifi i having the competence required for the industry specific issues
as well as the variety of overall maintenance similar to all
industries.
ABB Group
September 1, 2011 | Ver. 1.1 Slide 17
Summary
An Industrial Maintenance Provider has to have the capability,
know-how, recourses, partners and network to manage and
execute all maintenance activities in the entire plant. p
ABB Group
September 1, 2011 | Ver. 1.1 Slide 18
ABB Group
September 1, 2011 | Ver. 1.1 Slide 19

You might also like