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Confused? You won’t be after this episode of Soap. “

Who does not remember this tagline from the first official Soap series starting in 1977 and released in the Netherlands in 1979?

Every week the Campbells and the Tates entertained us with all the ingredients of a real soap: murder, infidelity, aliens’ abduction, criminality, homosexuality and more.

The episode always ended with a set of questions, leaving you for a week in suspense , hoping the next episode would give you the answers.

For those who do not remember the series or those who never saw it because they were too young, this was the mother of all Soaps.

What has it to do with PLM?

Soap has to do with strange people that do weird things (I do not want to be more specific). Recently I noticed that this is happening even in the PLM blogger’s world. Two of my favorite blogs demonstrated something of this weird behavior.

First Steve Ammann in his Zero Wait-State blog post: A PLM junkie at sea point-solutions versus comprehensive mentioned sailing from Ventura CA to Cabo San Lucas, Mexico on a 35 foot sailboat and started thinking about PLM during his night shift. My favorite quote:

Besides dealing with a couple of visits from Mexican coast guard patrol boats hunting for suspected drug runners, I had time alone to think about my work in the PLM industry and specifically how people make decisions about what type of software system or systems they choose for managing product development information. Yes only a PLM “junkie” would think about PLM on a sailing trip and maybe this is why the Mexican coast guard was suspicious.

Second Oleg in his doomsday blog post: The End of PLM Communism, was thinking about PLM all the weekend. My favorite quote:

I’ve been thinking about PLM implementations over the weekend and some perspective on PLM concepts. In addition to that, I had some healthy debates over the weekend with my friends online about ideas of centralization and decentralization. All together made me think about potential roots and future paths in PLM projects.

imageIt demonstrates the best thinking is done during out-of-office time and on casual locations. Knowing this from my long cycling tours in the weekend, I know it is true.
I must confess that I have PLM thoughts during cycling.

Perhaps the best thinking happens outside an office?

I leave the follow up on this observation to my favorite Dutch psychologist Diederik Stapel, who apparently is out of office too.

Now back to serious PLM

Both posts touch the topic of a single comprehensive solution versus best-of-breed solutions. Steve is very clear in his post. He believes that in the long term a single comprehensive solution serves companies better, although user performance (usability) is still an issue to consider. He provides guidance in making the decision for either a point solution or an integrated solution.

And I am aligned with what Steve is proposing.

Oleg is coming from a different background and in his current position he believes more in a distributed or network approach. He looks at PLM vendors/implementations and their centralized approach through the eyes of someone who knows the former Soviet Union way of thinking: “Centralize and control”.

imageThe association with communism which was probably not the best choice when you read the comments. This association makes you think as the former Soviet Union does not exist anymore, what about former PLM implementations and the future? According to Oleg PLM implementations should be more focused on distributed systems (on the cloud ?), working and interacting together connecting data and processes.

And I am aligned with what Oleg is proposing.

Confused? You want be after reading my recent experience.

I have been involved in the discussion around the best possible solution for an EPC contractor (Engineering Procurement Construction) in the Oil & Gas industry. The characteristic of their business is different from standard manufacturing companies. EPC contractors provide services for an owner/operator of a plant and they are selected because of their knowledge, their price, their price, their price, quality and time to deliver.

This means an EPC contractor is focusing on execution, making sure they have the best tools for each discipline and this is the way they are organized and used to work. The downside of this approach is everyone is working on its own island and there is no knowledge capitalization or sharing of information. The result each solution is unique, which brings a higher risk for errors and fixes required during construction. And the knowledge is in the head of experience people ….. and they retire at a certain moment.

So this EPC contractor wanted to build an integrated system, where all disciplines are connected and sharing information where relevant. In the Oil & Gas industry, ISO15926 is the standard. This standard is relative mature to serve as the neutral exchange standard of information between disciplines. The ideal world for best in class tools communicating with each other, or not ?

imageImagine there are 6 discipline tools, an engineering environment optimized for plant engineering, a project management environment, an execution environment connecting suppliers and materials, a delivery environment assuring the content of a project is delivered in the right stages and finally a knowledge environment, capitalizing lessons learned, standards and best practices.

This results in 6 tools and 12 interfaces to a common service bus connecting these tools. 12 interfaces as information needs to be send and received from the service bus per application. Each tools will have redundant data for its own execution.

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What happens if a PLM provider could offer three of these tools on a common platform? This would result into 4 tools to install and only 8 interfaces. The functionality in the common PLM system does not require data redundancy but shares common information and therefore will provide better performance in a cross-discipline scenario.

In the ultimate world all tools will be on one platform, providing the best performance and support for this EPC contractor. However this is utopia. It is almost impossible to have a 100 % optimized system for a group of independent companies working together. Suppliers will not give up their environment and own IP to embed it in a customer´s ideal environment. So there is always a compromise to find between a best integrated platform (optimal performance – reduced cost of interfaces and cost of ownership) and the best connected environment (tools connection through open standards).

And this is why both Steve and Oleg have a viewpoint that makes sense. Depending on the performance of the tools and the interaction with the supplier network the PLM platform can provide the majority of functionality. If you are a market dominating OEM you might even reach 100 % coverage for your own purpose, although the modern society is more about connecting information where possible.

MY CONCLUSION after reading both posts:

  • Oleg tries to provoke, and like a soap, you might end up confused after each episode.
  • Steve in his post gives a common sense guidance, useful if you spend time on digesting it, not a soap.

Now I hope you are not longer confused and wish you all a successful and meaningful 2013. The PLM soap will continue in alphabetical order:

  • Will Aras survive 21-12-2012 and support the Next generation ?
  • Will Autodesk get of the cloud or have a coming out ?
  • Will Dassault get more Experienced ?
  • Will Oracle PLM customers understand it is not a database ?
  • Will PTC get out of the CAD jail  and receive $ 200 ?
  • Will SAP PLM be really 3D  and user friendly ?
  • Will Siemens PLM become a DIN or ISO standard ?

See the next episodes of my PLM blog in 2013

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observation In the past months, I have talked and working with various companies about the topic of Asset Lifecycle Management (ALM) based on a PLM system. Conceptual it is a very strong concept and so far only a few companies have implemented this approach, as PLM systems have not been used so much outside the classical engineering world.

Why using a PLM system ?

To use a PLM system for managing all asset related information ( asset parameters, inventory, documents, locations, lifecycle status) in a single system assures the owner / operator that a ‘single version of the truth’ starts to exist. See also one of my older posts about ALM to understand the details.

alm_1 The beauty lies in the fact that this single version of the truth concept combines the world of as-built for operators and the world of as-defined / as-planned for preparing changes.  Instead of individual silos the ALM system provides all information, of course filtered in such a way that a user only sees information related to the user’s role in the system.

The challenge for PLM vendors is to keep the implementation simple as PLM initially in its core industries was managing the complexity. Now the target is to keep it extremely simple and easy to used for the various user roles, meanwhile trying to stay away from heavy customizations to deliver the best Return on Investment.

Having a single version of the truth provides the company with a lot of benefits to enhance operations. Imagine you find information and from its status you know immediately if it is the latest version and if other versions exists. In the current owner / operator world often information is stored and duplicated in many different systems, and finding the information in one system does not mean that this is the right information. I am sure the upcoming event from IDC Manufacturing Insights will also contribute to these findings

It is clear that historically this situation has been created due to the non-intelligent interaction with the EPC contractors building or changing the plant. The EPC contractors use intelligent engineering software, like AVEVA15926, Bentley, Autodesk and others, but still during hand-over we provide dumb documents, paper based, tiff, PDF or some vendor specific formats which will become unreadable in the upcoming years. For long-term data security often considered the only way, as neutral standards like ISO-15926 still require additional vision and knowledge from the owner/operator to implement it.

Now back to the discussions…

In many discussions with potential customers the discussion often went into the same direction:

“How to get the management exited and motivated to invest into this vision ? The concept is excellent but applying it to our organization would lead to extra work and costs without immediate visibility of the benefits !”

This is an argument I partly discussed in one of my previous posts: PLM, CM and ALM not sexy. And this seems to be the major issue in western Europe and the US. Business is monitored and measured for the short term, maximum with a plan for the next 4 – 5 years. Nobody is rewarded for a long-term vision and when something severe happens, the current person in power will be to blame or to excuse himself.

delta_works As a Dutch inhabitant, I am still proud of what our former Dutch government decided and did in the after the flooding in 1953.  The Dutch invested a lot of money and brain power into securing inhabitants behind the coast line in a project called the Delta Works. This was an example of vision instead of share holder value. After the project has been finished in the eighties there was no risk for a severe flooding anymore and the lessons learned from that time, brought the Dutch the knowledge to support other nations at risk for flooding. I am happy that in 1953 the government was not in the mood to optimize their bonus ( an unknown word at that time)

Back to Asset Lifecycle Management ….

Using a PLM system for asset lifecycle management provides the economical benefits by less errors during execution (working on the right information), less human involvement in understanding the information ( lower labor costs) and lower total cost of ownership (less systems to maintain and connect by IT).

But these benefits are in no relation with risk containment. What happens if something goes really wrong ?

If you you are a nuclear plant owner, you are in global trouble. A chemical plant owner or oil company can be in regional trouble, but they also will suffer from the damage done to their brand name globally. Other types of plant owners might come away with less, depending on the damage they potential ‘embank’

 

The emerging visionaries

frog For that reason, it is enlightening to see that some companies in Asia think different. There the management understands that they have the opportunity to build their future in a more clever way. Instead of copying the old way EPC contractors and plant owners work together, they start from a single version of the truth concept, pushing their contractors to work more integrated and clever with them. Instead of becoming boiling frogs, they are avoiding to fall into the same trap of many owners / operators in European and US based companies: “Why change the way we work, it does not seem to be so bad”

It requires a vision for the long term, something that will lead to extra benefits in the long term future: more efficient management of their assets, including risk containment and therefore being more competitive. If European and US-based companies want to be dominating in this industry they will need to show their vision too ..

Tomorrow I am attending the European Chemical Manufacturing Masters conference in Berlin, where I hope to learn and discuss this vision with the participants. I will keep you updated if i found the vision …..

ECMM

observation Although I am still active most of my time in ‘classical’ PLM, some of the projects I am involved with also deal with Asset Lifecycle Management. In general PLM focuses on a product development process, starting from a conceptual phase, going through planning, development and production. The PLM system serves as a collaboration and information backbone for all product IP (Intellectual Property). One of the main capabilities a PLM system provides is a ‘single version of the truth’.

And it is this capability, which makes a PLM system an excellent choice for Asset Lifecycle Management

Who practices Asset Lifecycle Management ?

alm Asset Lifecycle Management can be found at any location, where a company is maintaining a process – we call these companies Owners/ Operators. Best known industry for Asset Lifecycle Management is the Process & Power industry, where a company produces oil, energy or chemicals. However the same concept is also valid for water companies (water distribution process), food processing and infrastructure companies (railways, airports, roads)

All these companies have in common that they support a certain process and the challenge is, while being in operation, to optimize the process. During operation, maintenance and improvement activities should be as little as disruptive as possible.

A maintenance stop is very costly for Owner/Operators. Imagine a plant not producing fuel for two weeks (millions of liters) or a nuclear reactor not producing electricity for a month (millions of kilowatts) – no income. And no maintenance will lead to unexpected problems and in the worse case, disasters. So it is also about balancing these activities.

Let’s look at a definition of Asset Lifecycle Management

Asset Lifecycle Management is a balanced and active management of assets over the lifecycle, coupled with business objectives.

Simply said it translates into an approach, where based on business objectives (process stability, safety, margin) a company tries to optimize the usage of their assets (a reactor, a pump, a rail track, a road) through their individual lifecycles. This means perform preventive maintenance; renovate a part of the process and perform more parallel activities with a focus on improving the lifecycle of the process

So why not use a MRO system?

mro An MRO (Maintenance, Repair & Overhaul) system can be compared with an ERP system for manufacturing companies. The MRO system manages and schedules activities and resources on the plant, keeping track of maintenance activities done on inventory. But can it serve as the system providing the single version of the truth for all plant information? No!

So why not use an ERP system?

erp An ERP system is mostly used by owner/operators to control all financial transactions (contracts, purchasing, suppliers, projects/resources accounting). Some ERP vendors provide MRO functionality in a single system; still can this system provide the single version of truth for all plant information? Again I am sure it is not the case.

So why not use a document management system?

doc As most of the process information is stored in various types of documents, is seems to be appropriate to store all information in a document management system. And actually this is what owner/operators try to do, however they maintain inside their company different document management systems (paper archives, office documents in a specific system, engineering documents in another system, etc, etc). Each of the systems can provide a single version of the truth for specific content, however there is a consolidated single entry point for all asset data. Often the documents also do not reflect the status of an asset. Is the asset running in, is it active, is it demolished?

The tag number does not show it, and changing the status of an asset forces people to go through the various document systems to change the status there. An inefficient and costly procedure, not reliable and often not done.

So why not an integrated plant engineering system?

plant_eng Engineering plant software is designed to support the design collaboration and is mostly used by EPC contractors. These engineering companies are hired by the owner/operator to design and construct the plant or make major modifications of the plant. EPC contractors need to work as efficient as possible (to get the job), which means for them work as intelligent as possible in an integrated manner with tag numbers, P&IDs, 3D Equipment, Piping, ISOs. This intelligence leads to an application specific format and infrastructure.

During the hand-over of the plant or modification, this intelligence disappears as the owner/operator does not use the engineering plant software. They do not want to be dependent on a single software provider or version of the data. As data has to live for many years, sometimes 30 years or more, application specific data is hard to maintain. So as part of the hand-over data will be provided in neutral formats, worst case paper, but often in PDFs, TIFFs or other publishing format, losing all the intelligence.

15926 There is an intelligent, neutral format based on ISO 15926. This requires an investment from the EPC contractor and an investment from the owner/operator to manage all information in this format. For complex and long-lasting environments, like a nuclear plant, this approach surely pays off; however what you see is that on both sides (EPC and Owner/Operator) they try to minimize the costs on data handling/conversion. This leads in the long term to much more labor time internal at the owner/operator to manage and assure the data is accurate. But these costs somehow come later and are more hidden. And the question remains: can this system serve as the single version of truth for all plant information? No, plant engineering systems are too application specific

In addition, plant engineering software environments are not targeted to work integrated in an owner/operator environment, managing parallel projects and resources, quality processes and inventory statuses related to a certain asset and project.

So why not use a project management software system?

proj As in a plant many projects can run in parallel, it happens that they run on the same assets or locations in the plant. For engineers and maintenance it is important to have visibility on which projects have impact on each other. Project management software is not targeted to make data visible related to a collection of assets or locations. No, project management software can not be the system to serve as the single version of truth for all plant information.

So either we give up for looking a single version of the truth and pay the price for multiple software systems to maintain in the company and take the extra efforts for configuration management for granted, or we look at PLM ?

The PLM based solution

In the past 15 years I have done several projects with ENOVIA and projects where Asset Lifecycle Management was done with ENOVIA. For sure, other flexible PLM systems can do the same, as the solution lies in an adapted data model for ALM.

This picture shows what a PLM system can do:

alm_data_model

It can provide all related information (documents, inventory, locations, and projects) to an asset with one click from within single system. In addition it can also give the actual status of the asset. Assets are often identified by tag numbers, and the lifecycle of an asset can be managed by default in a PLM system, combined with Asset Change processes.

Best Practices coming from the PLM world can be used here too. The major challenge for PLM vendors is to reduce the complexity for data handling, as ALM users will not be engineers experienced to complex CAD environments. They are information workers, who need with a short learning curve, direct access to the data they require (and they should be sure the data is reliable)

Note: the PLM system will need to interface with the MRO and ERP system. Like in the classical PLM concept, MRO and ERP are the transactional systems, controlling the day to day activities, where the PLM system provides the accurate plant information (IP) required for an activity.

Also the PLM system will manage the non-standard activities through projects, change processes and will rely on accurate information from ERP.

The major benefits reported from implementations based on a PLM system are: roi

  • Reduced down-time for the plant, due to better planning and accurate information when preparing a maintenance stop. Less surprises with unforeseen delays of production.
  • More reliable and less effort to be complaint to safety, health, environment and governmental regulations as all information is available in a single, controlled and traceable environment
  • Lower cost of ownership for ALM. Instead of maintaining various silos of information and provide access to certain users, a single system with a common interface is available for most of the users.

 

Conclusion: Owner/Operators should look into the benefits a PLM system can bring for them. Interesting the benefits are not based on the integration of product development, but on providing accurate information from different entry points for different roles

 I am curious to learn who has seen a similar approach – feel free to comment

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