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GLOBAL DISRUPTION IN ASSET PERFORMANCE MANAGEMENT
APM 4.0: Redefining Asset Lifecycle for Industry 4.0
TABLE OF CONTENTS
EXECUTIVE SUMMARY: Beginning an Evolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
SECTION 5: Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
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Executive Summary:
Beginning an Evolution
Executive Summary: An Evolution Has Begun
To date, Asset Performance Management (APM) has been a poorly hype. To clarify where APM is headed, the market requires a clear
PAGE
4 understood and underutilized opportunity for asset-intensive indus- understanding and definition: APM 4.0.
tries. Too often, reliability and maintenance professionals' ideas for Early adopters of this new paradigm have lower operations costs
LIFECYCLE FOR INDUSTRY 4.0
APM 4.0: REDEFINING ASSET
creating value through maintenance have been sidelined by larger because of improved asset reliability, longer asset life, and better de-
objectives. In fact, their ideas don’t just easily align to these larger commissioning and disposal costs. But there is a greater opportuni-
goals; they help operations staff drive toward achieving them. ty to affect the asset lifecycle and what it means for operations and
Yet, over the last 20 years, industry has pushed assets, people and maintenance moving forward in this IIoT era.
related maintenance technology to their limits to meet these objec- At the heart of this opportunity is understanding everything this
tives. It has shown some success through reduced downtime, im- new era touches related to the asset; it all revolves around driving
proved safety, and workforce efficiency, but it is still not enough. new insights and innovations for Operation Excellence. As organi-
New opportunities to push APM now emerge through the Digital zations talk about Industry 4.0 projects, they must consider how this
TABLE OF Transformation Framework, Industrial Internet of Things (IIoT) plat- evolution in industry is creating an enhanced model—APM 4.0. This
CONTENTS
forms, and smart connected assets. As this framework and related eBook discusses the evolutionary path of APM and how to reach
SECTION technologies come together, there is confusion about what is new, APM 4.0 by managing the asset lifecycle in the IIoT era.
1 2 3 what is repackaged as new but is novel, and what is purely marketing
4 5
allows us to get a full view of the market and trends that are con-
verging as Digital Transformation initiatives take shape in discrete, Batch 30%
process and batch industries.
0% 10% 20% 30% 40% 50% 60%
The mix of geography and company size has changed as LNS Re-
search receives more responses from the Middle East due to a surge
TABLE OF of interest in best practices for IIoT and APM. As expected, most sur-
CONTENTS
vey respondents reside in North America, with virtual tie in respons-
SECTION es from Europe and the Middle East. The Asia Pacific region rounds
1 2 3 out global participation.
4 5
8.8%
9.5%
10.5%
37.5%
18.9%
49.4% GEOGRAPHY 14.2% COMPANY SIZE
North America $1-5 Billion
Europe $50-250 Million
Middle East and Africa $250-500 Million
18.9% Asia/Pacific
29.1%
$750-1,000 Million
South America $500-750 Million
Rest of World
Research Demographics (Cont.)
Consistent with LNS' focus on the business leader, the surveys
PAGE
7 show a strong mix of C-level and director level responses from
for both APM and IIoT. As companies consider the effects IIoT will
LIFECYCLE FOR INDUSTRY 4.0
APM 4.0: REDEFINING ASSET
43%
Information
44%
Technology
40%
TABLE OF
CONTENTS 36%
Operations 24%
SECTION 26%
1 2 3
4 5 17%
Engineering 26% COLOR BY JOB TITLE
28% CxO
Director
3%
Manager
Maintenance 7%
6%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
SECTION 2
everything began to change. In its simplest form, the APM (i.e. main-
tenance) space has gone through three evolutionary stages:
TABLE OF
CONTENTS
SECTION
1 2 3
4 5
WORK ORDER
The original definition of Asset Performance Management didn’t
PAGE
10 emerge until the third stage, “instrumentation of assets.” The APM
Applications Landscape by LNS Research helps organizations un-
LIFECYCLE FOR INDUSTRY 4.0
APM 4.0: REDEFINING ASSET
Services
Business SLA Management Digital Twin
Process HR Training Mashups
TABLE OF & Certifications
Centric
CONTENTS
AR/VR Based Financial
MRO Inventory
CMMS Training Analytics
SECTION Optimization
1 2 3
4 5 Behavior Based
MRO
Procurement ERP/EAM Predictive/
Training
Applications
Stores & Inventory Prescriptive
Management Analytics
Lockout RCM Packages
Tagout Mobile & Tools
Field Service IEM (RCA, FMEA, etc)
Corrosion
MOM/MES* Analysis
Lube
Analysis
Advanced
Calibration CBM Tools Machine
Diagnostics
Machine Historians/ Vibration
Centric Data Acquisition Analysis
*With MX functionality
TABLE OF
CONTENTS
SECTION
1 2 3
4 5 APM 4.0
Asset Management Complexity
TABLE OF
CONTENTS
SECTION
1 2 3
4 5
Prescriptive Analytics
Maintenance has evolved from reactive to condition-based mainte-
PAGE
14 nance (CBM), but this is not enough to match the Digital Transfor-
mation paradigm shift maintenance organizations face. The APM
LIFECYCLE FOR INDUSTRY 4.0
APM 4.0: REDEFINING ASSET
mated search through data to look for patterns, and is the basis to
adjust and improve APM processes and actions.
For APM 4.0, consider two types of machine learning. The first is
low hanging fruit: applying it to old data sets and predicting failure.
The second is applying machine learning to Big Data to discover an-
swers to questions maintenance organizations didn't know to ask.
TABLE OF
CONTENTS
SECTION
1 2 3
4 5
+
NEW
=
EXAMPLE: Discover previously
ANSWERS unknown relationships between
to certain materials, assets, produc-
NEW QUESTIONS tion schedules, plants, and workers.
MACHINE LEARNING BIG DATA
ANALYTICS
+
OLD
=
A B C EXAMPLE: Predict asset failures
ANSWERS
based on sensor data like vibration,
to
corrosion, flow, temperature.
NEW QUESTIONS
MACHINE LEARNING DATA
ANALYTICS
Smart Connected Assets SMART CONNECTED ASSETS
PAGE
Industry 4.0 includes cyber-physical systems, IIoT Platforms, and Converged Sensors, Instrumentation,
16 Cloud computing; the outcome for maintenance is smart connect- Controls, and Assets
ed assets. From an operations perspective, the information and po-
LIFECYCLE FOR INDUSTRY 4.0
APM 4.0: REDEFINING ASSET
SMART CONNECTED
SMART CONNECTED ASSETS ASSETS
Converged
ConvergenceSensors,
of sensors,Instrumentation,
instrumentation,
controls, and
Controls, andassets
Assets
TABLE OF
CONTENTS
SECTION
1 2 3
4 5 OEM-SUPPORTED REMOTE MONITORING SELLING CAPACITY vs. EQUIPMENT
40.65 8.871000
IIoT Platforms
PAGE
Much work has been done by LNS to define and describe the promise INDUSTRIAL INTERNET OF THINGS PLATFORM by LNS Research
18 of IIoT platforms. We are now at the stage that these platforms have describes the connectivity, network styles, analytics, and applications
solidified enough through partnerships and investments that it makes frameworks to support smart connected
LIFECYCLE FOR INDUSTRY 4.0
sense for companies to shift their IIoT posture from concept to action.
For APM 4.0 to work properly, IIoT platforms are required. Technology within and across a plant, facility or pro-
companies build them specifically to handle many connections to as- duction network in a manufacturing or
sets and communication protocols, and when it makes sense, to send other industrial operations setting.
data to the Cloud. This is the backbone and the future of APM 4.0.
Click to learn more about the
Industrial Internet of Things Platform
TABLE OF
CONTENTS
CHECK
experts to implement such programs, otherwise any technology will
fail to live up to its potential. DO
Mashup Applications
APM 4.0 is mashup at its best. It utilizes the sensing, prescriptive an- from more than one source for a single view and interface to operate
PAGE
19 alytics and autonomy of smart connected assets and services and it efficiently and effectively. APM 4.0 and the mashups for it break down
leverages the connectivity, Cloud and predictive capabilities of IIoT organizational silos and related applications, by bringing together in-
LIFECYCLE FOR INDUSTRY 4.0
APM 4.0: REDEFINING ASSET
platforms. Collectively, it brings to bear all the power of IIoT plat- formation that companies can now share more easily than before.
forms and smart connected assets to increase insights for mainte- APM 4.0 gains insight from applications and data across the value
nance, with industry-specific maintenance best practices delivered chain. Now in play is information from sales and marketing, opera-
through user-friendly, intuitive applications. tions, finance, and customers. Organizations can also start to take an
It’s no surprise then that it requires mashup applications to achieve industry view, across operating units, to get the whole picture when
it. These mashups will use content (video, weather, text, schedules, etc.) making decisions.
TABLE OF
CONTENTS
SECTION
1 2 3
+ + + +
4 5
MASHUP
APPLICATION
PAGE The Ultimate Mashup: Digital Twin
20
ONE OF THE FIRST “killer apps" of value to maintenance is the Digital Twin; it's at the top of the food chain for
LIFECYCLE FOR INDUSTRY 4.0
APM 4.0: REDEFINING ASSET
APM 4.0. LNS defines the Digital Twin mashup as an application that can connect the data from assets and the
services they provide, to anyone in the workforce, suppliers, manufacturers, sales and marketing, operations
and maintenance, together on one platform, one application. The interface is more than just a digital copy of
a physical asset; the Digital Twin mash-
up offers virtual and augmented reality Visualization, Simulation, Augmented
models that users can edit, manipulate
DIGITAL TWIN
and put into a larger set of context with Asset • Group of Assets • Refinery • Value Chain
MASH UP APPLICATIONS
other assets operating around them.
TABLE OF Consider petrochemical refining:
CONTENTS
the digital twins of the distillation Big Data Analytics, Collaboration, and Application Development
SECTION tower, cracking units, reformer and
1 2 3
alkylation units can be combined to
4 5 ANALYSIS TOOLS: ERP/EAM, RCM,
PREDICTIVE/DESCRIPTIVE,
simulate, visualize and monitor the CORROSION, LUBE,
CALIBRATION, VIBRATION
INCIDENT MANAGEMENT,
CHANGE MANAGEMENT MACHINE LEARNING
PAGE
Asset Performance Management is evolving, and leadership must DIGITAL TRANSFORMATION
22 take steps to manage the asset lifecycle in the IIoT era. A Digital FRAMEWORK by LNS Research
Transformation approach will smooth the transition from traditional describes a systematic approach to
LIFECYCLE FOR INDUSTRY 4.0
use of technology and prepare the company for the shift to the digi-
tal age of asset management. LNS recommends a five-step process to initiatives, in order to manage transformation
ensure you position the organization to succeed for years to come. across all levels and functions of the organization.
TABLE OF
CONTENTS
SECTION STEP 1
1 2 3 Align the Organization with Best Practices
4 5
Use the best practice frameworks to align people, process, and tech-
nology. This approach ensures the maintenance organization aligns
with the rest of the business and has a seat at the table when it comes
to creating value. The effort requires maintenance organizations to
commit to ISO 55000 and other applicable frameworks. These best
practices provide flexibility to configure processes to fit specific or-
ganizational requirements and industry needs. It also allows for in-
novation to make step change improvements, trying and failing, and
quickly adapting for continuous improvement. Formalizing the main-
tenance process will uncover any lacking skill sets, safety and regula-
tory gaps, and technology solution requirements. A good example of
this is the creation of a digital services division to bring maintenance
and IT closer to enable APM 4.0.
STEP 2
PAGE
Understand Big Data and How to Use It
23 in Maintenance and Operations
Data is both friend and enemy; ensure the company has a resource
LIFECYCLE FOR INDUSTRY 4.0
APM 4.0: REDEFINING ASSET
who understands it and how to harness it. APM often deals with
data generated in multiple domains, such as historians, image/vid-
eo, vibrations, etc. When the company combines these data sourc-
es and then applies predictive analytics, there is a real opportunity
to move to APM 4.0.
Beware: simply monitoring hundreds or thousands of assets for
runtime to schedule preventative maintenance doesn’t qualify
as APM 4.0. Organizations must move to Big Data thinking,
TABLE OF combining readily available data, with unstructured infor-
CONTENTS
mation, like internet searches and weather.
SECTION
1 2 3
4 5
STEP 3
PAGE
Use Operational Architecture to Execute
24 We believe strongly that Operational Architecture (OA) is critical to
executing a successful APM 4.0 implementation within a manufactur-
LIFECYCLE FOR INDUSTRY 4.0
APM 4.0: REDEFINING ASSET
ing or asset intensive enterprise. Like any initiative, there are strategic
and tactical elements. The OA exercise helps to clarify and separate
strategy from tactics so that the company understands where their
APM capabilities are today and define where it needs to be to ac-
complish goals. This is the roadmap of how to get from the as-is to
the desired state.
TABLE OF
CONTENTS OPERATIONAL
SECTION
ARCHITECTURE
1 2 3
4 5
OT IT
L5 IoT Enabled Governance and Planning Systems IIoT Enabled
Next-Gen
Systems
Equipment and assets Computing technology Smart Connected Operations - IIoT Enabled
L3 Production, Quality, Inventory, Maintenance
Monitoring systems Business applications
L2 L1 L0 Smart Connected Assets -
Control systems Data analysis IIoT Enabled Sensors, Instrumentation, Controls,
Assets, and Materials
STEP 4 $$$$$
PAGE
Build the Business Case
The business case charts an organization's journey from
5
25 BUSINESS CASE
4
LIFECYCLE FOR INDUSTRY 4.0
APM 4.0: REDEFINING ASSET
line where asset lifecycle and APM 4.0 shifts from being per- 3 C OS T C
ENT
ER
**e.g. Revenue and Earnings
Financial
ceived as a cost center to a value center. It also helps to shape $$$$$
$$$$$
Siloed
1
TABLE OF
CONTENTS
DEPARTMENT CROSS-FUNCTION EXECUTIVE
SECTION $$$$$
1 2 3 BUSINESS CASE AND OBJECTIVE SCOPE
4 5
STEP 5
Build an IIoT Platform to Harness Data and Make Apps
APM 4.0 requires an IIoT Platform. Building it requires Big Data
analytics, connectivity, Cloud and application development. As-
sembling this correctly will enable mashup appli-
cations like the Digital Twin. There is no one-size-
fits-all approach to building the right IIoT
platform. It requires a multi-vendor ap-
proach. This is a journey, figure out the
requirements and map them to mainte-
nance best practices.
SECTION 5
Recommendations
Recommendations
After years—even decades—of managing assets in a back room,
PAGE
27 there is now an opportunity to be heard in the boardroom. APM 4.0
is the only way to manage the asset lifecycle in a world moving to
LIFECYCLE FOR INDUSTRY 4.0
APM 4.0: REDEFINING ASSET
• Align technology decisions with business objectives using Oper- Presented by:
ational Architecture;
• Adhere to best practices; this is an important component that no License to distribute this research
report has been granted to:
business can overlook – APM 4.0 will fail to deliver the innova-
tion promise without it; and