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Operational Benefits Operational Benefits Seminar Seminar
Agenda Agenda Agenda Big Picture Overview
Operational Benefits – Key Considerations
PlantWeb Solutions for Improving Operations
Wrap-up and Conclusion
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Agenda Agenda Agenda 1:00 Big Picture Overview
2:00 Break
2:15 Operational Benefits – Key Considerations
2:45 PlantWeb Solutions for Improving Operations
(Part 1)
3:45 Break
4:00 PlantWeb Solutions for Improving Operations
(Part 2)
4:45 Wrap-up and Conclusion
Big Picture Overview Big Picture Overview
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Agenda Agenda Agenda
Emerson Introduction PlantWeb Review
The Digital Plant
Emerson: Company Profile Emerson: Company Profile Emerson: Company Profile Diversified global manufacturingand technology company servingindustrial, commercial, andconsumer markets around theworld
St. Louis, MO Headquarters Publicly traded (NYSE: EMR)
Headquarters in St. Louis, MO (USA)
Recognized for outstanding management process and
record of consistent long-term performance Manufacturing and/or sales presence in more than 150
countries
Founded in 1890 – in business for 115 years
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$0
$5
$10
$15
71 73 75 77 79 81 83 85 87 89 91 93 95 97 99 01 03 05
48 consecutive years ofincreased dividends per share,a compound annual growthrate of 11%
Earnings per share haveincreased at a compound annualgrowth rate of 10%
Emerson Growth and Performance Emerson Growth and Performance 19711971- - 2005 2005
Sales$B
FY05Sales
$17.3B
2005 Emerson Summary 2005 Emerson Summary 2005 Emerson Summary
ProcessManagement
IndustrialAutomation
Appliance& Tools
Network Power
ClimateTechnologies
Europe
Asia UnitedStates
ROW
Locations
US & Canada 125Europe 75
Asia 40
ROW 35
Total 275
Consumer
Industrial
Electronics
2005 Sales by Segment
2005 Sales by Geography
24%24%
19%19%
19%19%
21%21%
17%17%
53%53%
22%22%
14%14%
11%11%
2005 HighlightsSales $17.3BOP* $2.6BOP Margin* 15.0%EPS $3.40Mkt. Cap. $29BEmployees 114k
* Reconciliation to GAAP measure at the end of the presentation;Market Cap as of 9/30/05
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Emerson Brands Emerson Brands Emerson Brands
$17.3 Billion in revenues with over 60 divisions
26%
31%
0%
10%
20%
30%
40%
1995 2005
$354
$469
$0
$100
$200
$300
$400
$500
1995 2005
Emerson Growth Through
Technology Leadership
Emerson Growth Through Emerson Growth Through
Technology Leadership Technology Leadership
Engineering & Development Investment ($M)Engineering & Development Investment ($M) New Products as a Percent of SalesNew Products as a Percent of Sales
~
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• Systems & Solutions
• DeltaV
• OVATION
• INDUSTRY Solution Centers
• Asset Optimization
• AMS SUITE Software
• PlantWeb Services
• Control Valves & Regulators
• FISHER
• Precision Measurement
• BROOKS Flow
• DANIEL Fiscal Metering
• MICRO MOTION Mass Flow
• MOBREY Level, Density, & Viscosity
• ROSEMOUNT Pressure,Temperature, Flow & Level
• ROSEMOUNT ANALYTICAL Gas &Liquid Analysis
• SAAB ROSEMOUNT Radar Level
Emerson Process Management Emerson Process Management Emerson Process Management
21%21%
17%17%
24%24%
Appliance& Tools
NetworkPower
ProcessManagementProcessManagement
19%19%
19%
Climate Technologies
IndustrialAutomation
• Rosemount
• SaabRosemount
• Micro Motion
• Brooks
• RosemountAnalytical
• Daniel
• Fisher
• Bettis
• El-O-Matic
• Shafer
Measurement Valves &Regulators
• DeltaV
• Ovation
• IndustryCenters• Chemical• Oil & Gas• Refining• Power & Water• Life Sciences• Metals & Mining• Pulp & Paper• Food & Beverage
Systems &Solutions
AssetOptimization
• AMS Suite
• Services andTechnologies• Rotating
Equipment• Electrical
Systems• ProcessEquipment
• Instruments& Valves
Emerson ConfidentialRevised Mar 2006, Slide 12
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Emerson Process Management Emerson Process Management Emerson Process Management
Total 2005 Sales $4.2BTotal 2005 Sales $4.2BTotal 2005 Sales $4.2B
2005 Business Mix by World Area 2005 Business Mix by World Area 2005 Business Mix by World Area
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2005 Business Mix by Industry 2005 Business Mix by Industry 2005 Business Mix by Industry
Agenda Agenda Agenda Emerson Introduction
PlantWeb Review
The Digital Plant
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What is PlantWeb? What is PlantWeb?
A process automation architecture that uses the power of field
intelligence to improve plant process and financial
performance
Architecture shift to PlantWeb Architecture shift to PlantWeb
Valves Motors
PC’s
PLC’s
Business
Systems
DCS
Analytical
Products & Systems
LIMS
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PlantWeb uses the predictive power of field intelligence toimprove plant performance
SMARTDIGITAL CONTROL
SMARTFINAL CONTROL
SMARTMEASUREMENT
SMARTASSET OPTIMIZATION
SMARTREMOTE AUTOMATION
SMARTMACHINERY HEALTH
SMARTSAFETY
SMARTFINAL CONTROL
Emerson is unpluggingPlantWeb to extend the benefitsto assets previously out ofreach
SMARTMEASUREMENT
SMARTREMOTE AUTOMATION
SMARTMACHINERY HEALTH
SMARTMEASUREMENT
SMARTMEASUREMENT
SMARTASSET OPTIMIZATION
SMARTDIGITAL CONTROL
SMARTMOBILE WORKER
SMARTSAFETY
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Agenda Agenda Agenda
Emerson Introduction PlantWeb Review
The Digital Plant
The World Has Gone DIGITAL! The World Has Gone DIGITAL! The World Has Gone DIGITAL!
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Law Of Accelerating Returns Law Of Accelerating Returns Law Of Accelerating Returns
Analysis showsthat Technological
change isexponential
Analysis showsthat Technological
change isexponential
Disposable printers?Disposable printers?
Storage is ‘free’: $65Storage is ‘free’: $65
My old PCMy old PC
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1940 1960 1980 2000 2020
Value
CentralizedDCS
HardwiredPanel Boards
F u t u r e p h o t o c o u r t e s y B r a d A d a m ' s W a l k e r
A r c h i t e c t u r e ,
P . C . ,
D e n v e r , C o l o r a d o .
Digital Technology Has Changed The Process Control Landscape Digital Technology Has Changed The Digital Technology Has Changed The Process Control Landscape Process Control Landscape
Time
Digital PlantArchitecture
Shell Deer Park Refining CompanyDeer Park Refining Limited Partnership
“Our Vision” – Shell Deer Park “ “ Our Vision Our Vision ” ” – – Shell Deer Park Shell Deer Park
Use the newest technology to create the “Refinery ofthe Future”
Concentrate on safety and environmental concerns – System must be robust
Focus on cost – Low life cycle cost
Manpower training – Must be easy to operate andmaintain
Obsolescence resistance – must be based onindustry standard software norms
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The Technology Universe The Technology Universe The Technology Universe
Parallel computingParallel computing
Moore’s LawMoore’s Law
WPFWPF
ArtificialIntelligenceArtificialIntelligence
HARTHART
Process DiagnosticsProcess Diagnostics
Predictive AlgorithmsPredictive Algorithms
Energy ScavengingEnergy Scavenging
DSP’sDSP’s
Enhanced EDDLEnhanced EDDL
UltrasonicUltrasonic
Fuel CellsFuel Cells
MP3MP3
802.11a,b,g,n,i802.11a,b,g,n,i
802.15.4802.15.4
GPSGPSUMPCsUMPCs
WinWFWinWFModel BaseProgrammingModel BaseProgramming
ScaleableGraphics
ScaleableGraphics
MotesMotes
FireFoxFireFox
MEMSMEMS
Advanced Signal ProcessingAdvanced Signal ProcessingOPC UAOPC UA
Smart ObjectsSmart Objects
GPRSGPRS
PATPAT
Security S99Security S99
Bit TorrentBit Torrent
AESAES
RSSRSS
XMLXML
UMLUML
SecuritySecurity
VistaVistaSOASOA
.NET 3.NET 3
W-bluetoothW-bluetooth
SkypeSkypeOPMLOPML
Core 2 DuoCore 2 Duo
The Role of Field Devices Has Changed The Role of Field Devices Has Changed
On-board computing powerenables step changes infunctionality
Become “informationservers” in the field basedarchitecture
An integral part of theprocess automation system
Diagnostics and loop speedincrease the value of thefield device.
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Smart carsmonitor tire
pressure
Smart carsmonitor tire
pressure
Tire icon indicateslow pressureTire icon indicateslow pressure
Car advises driver of abnormal situation madepossible via disruptive technologies
Car advises driver of abnormal situation madepossible via disruptive technologies
Smart Car Messages Seat belt Cargo door open Passenger door openWiper fluid low Turn signal on Right rear tire pressure low Change engine oil Fuel low
Smart Car Messages Seat belt Cargo door open Passenger door openWiper fluid low Turn signal on Right rear tire pressure low Change engine oil Fuel low
Messages I do not get ☺ Check engine Big red oil light
Messages I do not get ☺ Check engine Big red oil light
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Three requirements:Sensing technologyPresentation to user at the right timeAdvanced Technology must be easy to use
Three requirements:Sensing technologyPresentation to user at the right timeAdvanced Technology must be easy to use
Early warning
Oil Pressure AlarmOil Pressure Alarm
time
C a r P e r f o r m a n c e
Sequence Of Events Sequence Of Events Sequence Of Events
Change Oil LightChange Oil Light
MajorPerformance
Impact
MajorPerformance
Impact
Safety incidentSafety incident
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Technology Delivers Performance Technology Delivers Performance Technology Delivers Performance
Seat belt Cargo door open Passenger door openWiper fluid low Turn signal on Check Tire Pressure Change engine oil Fuel low etc…
We Help Our CustomersDeploy Smart Digital Plants
We Help Our CustomersDeploy Smart Digital Plants
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SMARTMACHINERY HEALTH
MANAGEMENT
SMARTMEASUREMENT
SMARTMEASUREMENT
SMARTANALYTICAL
SMARTANALYTICAL
SMARTSAFETYSMARTSAFETY
Smart Plant Architecture Smart Plant Architecture Smart Plant Architecture
SMARTASSET OPTIMIZATION
SMARTFINAL CONTROL
SMARTFINAL CONTROL
SMARTDIGITAL CONTROL
SAFETY
Today’s Smart Field Devices Predict Abnormal
Situations
Today Today ’ ’ s Smart Field Devices Predict Abnormal s Smart Field Devices Predict Abnormal
Situations Situations On-board computing power
enables step changes infunctionality
Often have more than one processvariable for a single pipe intrusion
Full with diagnostics
– health of device is known
– health of the application ismonitored
– health of the process is monitored
“At 12:45 tomorrow, this valve will fail”“At 12:45 tomorrow, this valve will fail”
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Early warning
Device failureDevice failure
time
P l a n t P e r f o r m a n c e
Intelligent Devices Report Health Intelligent Devices Report Health Intelligent Devices Report Health
Device alertDevice alert
Process ImpactProcess Impact
Safety IncidentSafety Incident
SMARTMACHINERY HEALTH
MANAGEMENT
SMARTMEASUREMENT
SMARTMEASUREMENT
SMARTANALYTICAL
SMARTANALYTICAL
SMARTSAFETYSMARTSAFETY
Smart Plant Architecture Smart Plant Architecture Smart Plant Architecture SMART
ASSET OPTIMIZATION
SMARTFINAL CONTROL
SMARTFINAL CONTROL
SMARTDIGITAL CONTROL
SAFETY
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Smart Predictive Alerts Temperature Transmitter Example Smart Predictive Alerts Smart Predictive Alerts Temperature Transmitter Example Temperature Transmitter Example
Sensor failureSensor failure
Smart Predictive Alerts Mass Flow Example
Smart Predictive Alerts Smart Predictive Alerts Mass Flow Example Mass Flow Example
Process problemProcess problem
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Smart Predictive Alerts Valve Example Smart Predictive Alerts Smart Predictive Alerts Valve Example Valve Example
Valve is performing sub-optimallyValve is performing sub-optimally
Smart Predictive Alerts Valve Example
Smart Predictive Alerts Smart Predictive Alerts Valve Example Valve Example
Valve needs maintenanceValve needs maintenance
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Smart Predictive Alerts Pump Protection Example Smart Predictive Alerts Smart Predictive Alerts Pump Protection Example Pump Protection Example
Pump needs maintenancePump needs maintenance
In most 10 year old plants, there are
NO EARLY WARNING SYSTEMS
In most 10 year old plants, there are
NO EARLY WARNING SYSTEMS
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What Is Really Happening? What Is Really Happening? What Is Really Happening?
What Is Really Happening? What Is Really Happening? What Is Really Happening?
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What Is Really Happening? What Is Really Happening? What Is Really Happening?
A Real Case Of Not Seeing What Is
Happening
A Real Case Of Not Seeing What Is A Real Case Of Not Seeing What Is
Happening Happening
The explosion was caused by flammable hydrocarbon liquid continuously being pumpedinto a process vessel that, due to a valve malfunction, had its outlet closed.
The explosion was caused by f lammable hydrocarbon liquid continuously being pumpedinto a process vessel that, due to a valve malfunction, had its outlet closed.
A control valve being shut when the control system indicated it was open.A control valve being shut when the control system indicated it was open.
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SMARTMACHINERY HEALTH
MANAGEMENT
SMARTMEASUREMENT
SMARTMEASUREMENT
SMARTANALYTICAL
SMARTANALYTICAL
SMARTSAFETYSMARTSAFETY
Should All These Alarms Go To The Operator? Should All These Alarms Go To The Operator? Should All These Alarms Go To The Operator?
SMARTASSET OPTIMIZATION
SMARTFINAL CONTROL
SMARTFINAL CONTROL
SMARTDIGITAL CONTROL
SAFETY
??
Motor OverheatingMotor Overheating
time
D e v i c e P e r f o r m a n c e
Alarms To Operator? Example shown: NO
Alarms To Operator? Alarms To Operator? Example shown: NO Example shown: NO
Impellor ImbalanceImpellor Imbalance
Process ImpactProcess Impact
Time For Action > 6 months
Early alarm to MAINTENANCE onlyas there is a long time before process
impact.
Early alarm to MAINTENANCE onlyas there is a long time before process
impact.
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time
D e v i c e P e r f o r m a n c e
Alarms To Operator? Example shown: NO (long time before failure) Alarms To Operator? Alarms To Operator? Example shown: NO (long time before failure) Example shown: NO (long time before failure)
Valve frozen open inutilities plant
Valve frozen open inutilities plant
Process impactProcess impact
Time For Action > 1 year
Early alarm to MAINTENANCE only asthere is long time before process impact
Early alarm to MAINTENANCE only asthere is long time before process impact
time
D e v i c e P e r f o r m a n c e
Failure of a Critical Valve Column
Impacts The Process Immediately
Failure of a Failure of a Critical Critical Valve Column Valve Column
Impacts The Process Immediately Impacts The Process Immediately
Valve frozen open indistillation column
Valve frozen open indistillation column
Process impactProcess impact
Time For Action < 30 minutes
Early alarm to MAINTENANCE andOPERATOR as action is required
immediately to prevent process problems
Early alarm to MAINTENANCE andOPERATOR as action is required
immediately to prevent process problems
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Plants Must Have An Alarm Message Map Plants Must Have An Alarm Message Map Plants Must Have An Alarm Message Map
Cost ofIgnoring
Alarm
Time To Avoid Process/Safety Impact
Alarm Destination Map Alarm Destination Map Alarm Destination Map
High PriorityHigh Priority Medium PriorityMedium Priority
Low PriorityLow PriorityMedium PriorityMedium Priority
• Operator• Operator
• Maintenance• Optimization Personnel• Safety Personnel
• Maintenance• Optimization Personnel• Safety Personnel
• Maintenance• Optimization Personnel• History Collection
• Maintenance• Optimization Personnel• History Collection
• Operator• Maintenance• Safety Personnel
• Operator• Maintenance• Safety Personnel
The Importance Of Alarm Handling The Importance Of Alarm Handling The Importance Of Alarm Handling
In the last 11 minutes before explosion, the operatorshad to recognize, acknowledge and act on 276 alarms
In the last 11 minutes before explosion, the operatorshad to recognize, acknowledge and act on 276 alarms
Milford Haven was 25x therecommended maximum
Milford Haven was 25x therecommended maximum
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SMARTMACHINERY HEALTH
MANAGEMENT
SMARTMEASUREMENT
SMARTMEASUREMENT
SMARTANALYTICAL
SMARTANALYTICAL
SMARTSAFETYSMARTSAFETY
Alarm Messaging Map Alarm Messaging Map Alarm Messaging Map
SMARTASSET OPTIMIZATION
SMARTFINAL CONTROL
SMARTFINAL CONTROL
SMARTDIGITAL CONTROL
SAFETY
Predictive AbnormalSituation Alarms
Predictive AbnormalSituation Alarms
Degraded SafetyAlarms
Degraded SafetyAlarms
Asset HealthAsset Health
SMARTMACHINERY HEALTH
MANAGEMENT
SMARTMEASUREMENT
SMARTMEASUREMENT
SMARTANALYTICAL
SMARTANALYTICAL
SMARTSAFETYSMARTSAFETY
All Critical Alarms – To Operator (Regardless of whether a device or controller created them)
All Critical Alarms All Critical Alarms – – To Operator To Operator (Regardless of whether a device or controller created them) (Regardless of whether a device or controller created them)
SMARTASSET OPTIMIZATION
SMARTFINAL CONTROL
SMARTFINAL CONTROL
SMARTDIGITAL CONTROL
SAFETY
OPERATORINTERFACE
OPERATORINTERFACE
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FT-101
Operator InterfaceOperator Interface
Alert The Operator Before Process ImpactAlert The Operator Before Process Impact
SMARTMACHINERY HEALTH
MANAGEMENT
SMARTMEASUREMENT
SMARTMEASUREMENT
SMARTANALYTICAL
SMARTANALYTICAL
SMARTSAFETYSMARTSAFETY
All Asset Alarms To Maintenance All Asset Alarms To Maintenance All Asset Alarms To Maintenance SMART
ASSET OPTIMIZATION
SMARTFINAL CONTROL
SMARTFINAL CONTROL
SMARTDIGITAL CONTROL
SAFETY
ASSET INTERFACEASSET INTERFACE
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Maintenance /Reliability Dashboard
Maintenance /Reliability Dashboard
SMARTMACHINERY HEALTH
MANAGEMENT
SMARTMEASUREMENT
SMARTMEASUREMENT
SMARTANALYTICAL
SMARTANALYTICAL
SMARTSAFETYSMARTSAFETY
All Safety Alarms To Safety Personnel All Safety Alarms To Safety Personnel All Safety Alarms To Safety Personnel SMART
ASSET OPTIMIZATION
SMARTFINAL CONTROL
SMARTFINAL CONTROL
SMARTDIGITAL CONTROL
SAFETY
Degraded SafetyAlarms
Degraded SafetyAlarms
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Safety Personnel Are Roaming Safety Personnel Are Roaming Safety Personnel Are Roaming
Cell phone, pager, email… Detailed Summary
In A Smart Plant, Does The Number Of Alarms
To the Operator Increase?
In A Smart Plant, Does The Number Of Alarms In A Smart Plant, Does The Number Of Alarms
To the Operator Increase? To the Operator Increase? No
– Best practices areestablished in the designof the alarm system
• EEMUA
• Alarm Map
– Early warning alarmsproperly acted on shoulddecrease the incomingalarms as processalarms may be avoided
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Poor Health Delivers Unsatisfactory Results At 60 mph !!! Poor Health Delivers Unsatisfactory Results At Poor Health Delivers Unsatisfactory Results At 60 mph !!! 60 mph !!!
Mercury FilledTransmitters & Switches
DisconnectedDamper Drive
Leaking ValveBody
Expect Poor Performance In Plants With Poor
Asset Health
Expect Poor Performance In Plants With Poor Expect Poor Performance In Plants With Poor
Asset Health Asset Health
Poor Equipment Results in PoorPerformance and Unsafe Plants
Poor Equipment Results in PoorPerformance and Unsafe Plants
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Expect Poor Performance In Plants With Poor Expect Poor Performance In Plants With Poor Asset Health Asset Health
Enterprise Integration: Validated Data (Inventory, Loss,
etc) Is transmitted to SAP Asset alerts are transmitted to
SAP for scheduling
Enterprise Integration: Validated Data (Inventory, Loss,
etc) Is transmitted to SAP Asset alerts are transmitted to
SAP for scheduling
Integrating Transactions is Easy Reversing them (on bad data) is
very difficult
Integrating Transactions is Easy Reversing them (on bad data) is
very difficult
Control Valves, Instrumentation, Critical Assets
Regulatory Control and SIS
Advanced ProcessControl
Optimization
Data Validation Occurs in the Field
And Is Propagated To All Applications
Data Validation Occurs in the Field Data Validation Occurs in the Field
And Is Propagated To All Applications And Is Propagated To All Applications
PV is MarkedBAD
PV is MarkedBAD
and propagatedand propagated
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Shell Deer Park Revamp Shell Deer Park Revamp Shell Deer Park Revamp
Control Room Control Room Control Room
BEFOREBEFORE AFTERAFTER
Shell Deer Park Refining CompanyDeer Park Refining Limited Partnership
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Cabinet Cabinet Cabinet
BEFOREBEFORE AFTERAFTER
Shell Deer Park Refining CompanyDeer Park Refining Limited Partnership
Field Junction Field Junction Field Junction
BEFOREBEFORE AFTERAFTER
Shell Deer Park Refining CompanyDeer Park Refining Limited Partnership
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Panel Being Cut Over …hotPanel Being Cut Over …hot
Control Valve Diagnostics Control Valve Diagnostics Control Valve Diagnostics
ValveLink diagnostics prior tocutover found a hidden problem.
This valve has notbeen in automatic for years!
ValveLink diagnostics prior tocutover found a hidden problem.
This valve has notbeen in automatic for years!
Roger Erfurdt, Deer Park ControlSystems manager, has statedthat getting this loop to run in
automatic has paid for the entireinvestment in diagnostics.
Roger Erfurdt, Deer Park ControlSystems manager, has statedthat getting this loop to run in
automatic has paid for the entireinvestment in diagnostics.
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Control Valve Signature - ValveLink Control Valve Signature Control Valve Signature - - ValveLink ValveLink
BEFOREBEFORE AFTERAFTER
travel travel A c t u a t o r P r e s s u r e
Results Delivered Results Delivered Results Delivered Operational Excellence
– Safety: No OSHA’s
– Environmental: No Incidents
– State of the art operating interfaces
Financial
– 1% maintenance cost reduction achieved(3%+ is believed possible)
– Overall 1-3% utilization improvement
– Improved unit reliability
– Greatly improved maintenance effectiveness – Huge project savings by reutilizing previous engineering
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BARRIERS To Operational Excellence BARRIERS BARRIERS To Operational Excellence To Operational Excellence
Overly aggressive focus onCAPEX
The technology change is theeasiest
In plant visionaries arenecessary and hard to find
Management support iscritical
The human resistance tochange is greater than youthink
Satellite Service Providers Know Tire
Pressure…
Satellite Service Providers Know Tire Satellite Service Providers Know Tire
Pressure Pressure ……
What use is there for theold-fashioned tire gauge?
What use is there for theold-fashioned tire gauge?
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“Change Or Be Changed” “ “ Change Or Be Changed Change Or Be Changed ” ” There are two kinds of organizations in today's world:
– those that are changing
– those that are going out of business
Similarly, there are also two kinds of people
– Those who are changing
– Those who are setting themselves up to be victims of change
Jim Clemmerhttp://www.clemmer.net
Cannot Be Done Without TechnologyCannot Be Done With Technology Alone
Cannot Be Done Without TechnologyCannot Be Done With Technology Alone
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