Emerson Exchange 365

For anyone who manages equipment in process operations, improving reliability is always a good idea. But even those who are already familiar with the pitfalls of running to failure may find it difficult to justify the cost of making reliability improvements.

Traditional, non-automation based methods, such as installing spare or oversized equipment, are still used widely. With limited budgets, modern automation and maintenance strategies using improved real time measurements and predictive techniques must compete for funding. However, since automated improvements impact multiple cost and revenue components, not just maintenance costs, providing a cost/benefit analysis can seem complex.

Today at the Emerson Global Users Exchange, Doug White of Emerson Process Management presented a methodology for developing reliable, accurate, and consistent estimates of financial return on investment for reliability improvements.

“By moving from a state of reactive maintenance toward predictive maintenance with online detection of potential problems, plants can become first-quartile performers simultaneously realizing higher availability and lower costs,” said White. “In doing so, they can achieve lower scheduled and unscheduled maintenance costs, higher overall unit availability and production, and improved operational efficiency—all while minimizing unplanned shutdowns or major incidents.”

Starting with automobile tire integrity as an example, White explained how manufacturers are using predictive analytics to identify leading indicators of equipment health. By spotting patterns that are consistent with pending equipment failure, such as a loss of tire pressure, drivers gain advanced warning and have sufficient lead time to take preventative measures. No more flats.

According to White, the same evolution in the tire industry is taking place in process industries. “Predictive analytics use current and historical data in conjunction with system models to predict future trends,” he said. “When we apply predictive analytics to plant asset management, it involves real-time measurements for early detection of possible equipment faults or degradation in performance. We can then schedule corrective maintenance or replacement.”

Citing a number of recent major oil and gas refinery incidents, White showed how to estimate the potential economics of installing a pump health monitoring system in a process plant.

An Essential Asset Monitoring solution typically includes capital costs like hardware, software and services, plus field device installation, commissioning and training. Expense costs may include yearly software support and incremental maintenance.

The benefits from automation result from reductions in unscheduled maintenance, routine checks, normal maintenance tasks, unneeded material purchases, scheduled shutdowns and incidents. Altogether, these improvements add up to percentage increases in operational availability. In process industries, higher productivity can mean more profitability.

Displaying a single spreadsheet, White calculated the value of expected savings resulting from reliability improvements using wireless automation for pump health monitoring. He then summarized the financial value for each of ten pumps, resulting in a simple payback on margin in just 1.6 years.

“This methodology can be applied to potential new investments in ‘smart’ field devices,” White added. “Wireless devices and digital networks, DCS upgrades, advanced control applications, plant information technology and asset management systems.”

White noted that the calculation of benefits requires an analysis of plant data on a case by case basis, in context of the actual plant operating situation.

Using a case study, he then demonstrated how a major chemical and petrochemical company in the Middle East implemented an asset management program with predictive analytics and diagnostics from field instrumentation. While gaining a two percent increase in plant availability, the site experienced a 12 percent decrease in maintenance costs.

“There can be a sound economic payout when reliability improvements are implemented,” White concluded. “Not only are routine maintenance costs reduced, but a plant can benefit directly from increased unit availability and production, fewer serious incidents, and lower energy usage.”