Smart Asset Performance Management (APM)

A plant manager’s guide to selecting and implementing

a cloud-based asset performance management solution
EBOOK-AHI-DXPC-01EN
Smart Asset Performance Managament (eBook)
A plant manager’s guide to selecting and implementing a cloud-based asset performance management solution

Contents
3 Introduction/Foreword

4 APM: The Smoothest Path to Smart Manufacturing

5 Benefits of Smart APM

9 Implementing a Cloud-Based APM Solution

11 10 Questions to Ask Your APM Vendor

14 Introducing Asset Health Insights

Introduction/Foreword

As the needs of today’s industrial manufacturers are changing rapidly to adjust

to driving forces in the industry, the growing gap between traditional and digital
systems and processes becomes clear. According to Deloitte’s latest Manufacturing
Industry Outlook, the manufacturing industry is focused on finding “ways to make
itself disruption-proof,” with 76% of manufacturing executives increasing their
investments in digital initiatives to accomplish this.

All manufacturers experience disruptions to production. These can come in many

forms, but traditionally manufacturers have focused on machine downtime as
the primary culprit, attributed to machine maintenance and repair. As such, asset
Twenty years ago, our cars didn’t have many implementations on their dashboards. performance management is one of the highest impact, lowest disruption digital
So if we wanted to calculate the fuel efficiency in miles per gallon (i.e., (gallons transformation initiatives that any organization can undertake.
used X 100) ÷ miles traveled = gallons per 100 miles), we had to manually calculate
data gathered from our fuel gauge, gas pumps, and physical maps. Fast forward to According to McKinsey, when industrial manufacturers incorporate APM into their
today. Our cars now have the power to calculate all of this data automatically so we standard workflows, they typically improve productivity by 30 to 50 percent within
can make better decisions to improve our driving efficiency. eight to 12 weeks of deployment while simultaneously increasing on-time deliveries
and unlocking additional capacity.
In the past few decades, the way we gather data to make better decisions has
changed in all aspects of our lives—from the way we drive to how we run our Industries that have the most to gain from advanced asset performance
businesses. The technology industry has been talking about digital transformation management include chemicals, energy, water plants, utilities, oil and gas
since the early 2000s but some industries have been slow to change and continue production and refineries, food and beverage production, and pulp and paper.
to operate in the same way they did 20 years ago.

Smart Asset Performance Management 3

Introduction/Foreword

The Digital Evolution of Asset Performance Management

Pre-1990
Manual maintenance and
paper-based systems and 1990s
processes Desktop computers enable
early digital APM 2000s
Mobile devices and sensors enable
IoT, real-time data, and some 2020s
predictive maintenance Digital transformation drives a new era: Industry 4.0.
APM solutions move to the cloud to collect, refine,
and aggregate Operational Technology (OT) data
from distributed assets and finally connect OT to IT.

Smart Asset Performance Management 4

APM: The Smoothest Path to Smart Manufacturing

We’re headed into a new age of opportunity and value creation with industrial digital transformation.

Asset Performance Management, or APM, can be the catalyst your organization needs to bring together physical systems, the Internet of Things, and cloud
computing to create a smart and efficient factory, plant, facility, or utility.

At its core, the next generation of APM solutions combine:

3. Predictive analytics and machine learning
1. Cloud-based applications With basic APM, maintenance can evolve from reactive to
To truly gain value from APM, organizations need to adopt condition-based. However, this is not enough to match the
cloud-based applications. Only cloud-based applications have digital transformation paradigm shift maintenance organizations
the capability to gather real-time data from IIoT devices and face. Advanced APM—powered by machine learning—includes
power the insights to deliver true business value. predictive and prescriptive analytics to achieve an entirely
new level of maintenance value. Machine learning enables an
2. Smart connected assets automated search through data to look for patterns, and is the
APM leverages the information from smart assets—sensors, basis to adjust and improve APM processes and actions such as
instrumentation, controls, and connected devices—to deliver the prescription of maintenance activities to postpone or prevent
valuable insights to maintenance organizations by leveraging failure.
predictive analytics and machine learning.
4. IIoT
The benefits of IIoT in manufacturing are well documented. APM
helps organizations handle many connections to assets and
communication protocols, and when it makes sense, to send that
data to the cloud.

Smart Asset Performance Management 5

Benefits of Smart APM

Not all APM solutions are equal so ensure you select a truly advanced solution that will help you future-proof operations. Using cloud technology for
asset health is particularly effective as it leads to improved collaboration and decision making, reusable data for further operational improvement, greater
cost-effectiveness, increased scalability, and improved accessibility.

An Asset is an item, thing, or entity Asset Management (AM) Asset Performance

that has potential or actual value to an is a coordinated process of balancing Management (APM) is an
organization (ISO55000). A valve or a risks, costs, and desired asset advanced, cloud-based system that enables
pump is an example of an asset. performance across the asset lifecycle proactive maintenance and prescriptive
to achieve an organization’s objectives. analytics to drive greater efficiencies and
reduce organizational risk.

Smart Asset Performance Management 6

Benefits of Smart APM

The following are some of the benefits that many organizations enjoy from employing a Smart APM strategy.
Production Manager view

Combine maintenance
and production data for Production Manager’s View
better decision-making A high-level overview that highlights production
efficiency ranges, issues, and Return on Assets.
By bringing traditionally siloed
maintenance and production
data into one view and achieving
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© Yokogawa Electric Corporation
For Internal Use Only

one single source of truth, plant

management can connect workers Predictive Asset Management (Maintenance manager view)

and managers across multiple

departments working directly out of
the same system so collaboration Maintenance Manager’s View
becomes easier and helps avoid Detailed views on machinery conditions to assure
issues that disrupt production. it’s working standards, procedures, and operations,
while overseeing equipment stock.

| Document Number | Dec 12, 2019 |

© Yokogawa Electric Corporation
For Internal Use Only

Smart Asset Performance Management 7

 how to address them.

:
Benefits of Smart APM
mp efficiency
ational costs
Optimize
duct quality performance and profit margins
and reliability
of warranty programs
Manage and extend the lifecycle of every asset—from sensors
to pumps, chillers, compressors, and turbines—and identify and
APM for Enhanced Pump Performance
eliminate inefficiencies for a cost-effective operation. & Anomaly Detection
APM collects process data from the pump (discharge pressure, suction
pressure, flow rate, power, etc) and determines the performance gap
between actual and ideal efficiency. It also estimates the potential energy
savings to be gained from optimal usage. APM also helps detect abnormal
process events using AI. The solution will proactively alert site engineers to
operational issues and provide actionable insights on how to address them.

Business outcomes:
Increased pump efficiency

Reduced operational costs

Increased product quality and reliability

Maximization of warranty programs

Smart Asset Performance Management 8

ree view of operational assets—from anywhere

Benefits of Smart APM

Gain a 360-degree view of operational Predictive asset management

assets—from anywhere Enable real-time and historical asset data in combination with AI/ML to
predict future events so appropriate measures can be taken to avoid
Access the data while on the go so you always have access to relevant information
operational failures.
pertaining to a stoppage, such as the repair history, bill of materials, spare parts,
quality history, and standard procedures. This allows workers to stay onsite Online ML Analysis and Statistics
solving the problem rather than tracking down information elsewhere.

Examine each asset and situation from every angle, interact with data and
explore what-if scenarios using real-time and historical benchmark data.

q Predicted vs Actual Energy Consumption, Production, or

Carbon Emission to identify the abnormal or unexpected
changes in time
q Online anomaly detection to trigger early warning in the
operation of assets and processes
q Correlation Matrix to determine the parameters having the
significant impact to energy generation/consumption and
carbon emission
q Histogram to show if the data distribution over the time are
| Document Number | Dec 12, 2019 |
© Yokogawa Electric Corporation within the acceptable range.
For Internal Use Only

Smart Asset Performance Management 9

Benefits of Smart APM

Better safety with proactive asset management

Receive alerts and notifications of potential risks before they occur, take APM for Condition Monitoring
preemptive action, avoid negative outcomes, and improve safety. When coupled with smart sensors (e.g., Yokogawa Sushi

Sushi Solution sensor), APM helps organizations move from schedule-based

maintenance to proactive monitoring of asset performance. This
helps organizations detect anomalies and alert to any issues
Current vibration values that occur between maintenance efforts.

Real-time vibration monitoring

in trending

Business outcomes:
Reduced operational costs

Increased product quality and reliability

Online Anomaly detection by AI

Real time data monitoring and anomaly detection

through remote monitoring
| Document Number | Dec 12, 2019 |
© Yokogawa Electric Corporation
For Internal Use Only

Smart Asset Performance Management 10

Benefits of Smart APM

Boost transparency and accountability Increase adoption of digital technology to

Increase overall transparency in the factory, plant, facility, or utility highlighting
help drive wider digital transformation
where issues are occurring in real time. This creates a sense of accountability for Once a cloud-based APM solution is installed, the benefits become clear right away,
the right people to be in the right places fixing the right problems. which leads to faster adoption and higher use by the workforce. And if the software
is easy to use, system experts or “gatekeepers” are no longer necessary.

Offline ML Modelling and Statistics

Data can be democratized across the organization to help with real-time decision-
making by the workers themselves, which increases the perceived value and use of
the system.

Actual

Prediction

Prediction vs Actual based on

changed process data
to give insights of expected
| Document Number | Dec 12, 2019 | energy savings or production
© Yokogawa Electric Corporation
For Internal Use Only

Smart Asset Performance Management 11

Implementing a Cloud-Based APM Solution

Implementing a Cloud-Based APM Solution

Value Identification Value Realization

Good Project Definition

Define the scope of your project

Good Project Definition
Conduct research on the problems you’re aiming
to solve with APM and the relevant stakeholders that
need to be involved. According to Merrow (Independent Value Poor Project Definition
Project Analysis), well-defined projects cost less, take
less time to execute, and operate better. The cost and
project slippage deviation between a good project
rollout and a poor one is 29% and 21% respectively.
Poor Project Definition

Feasibility Selection Definition Execution Optimization

Front-End Loading Execution Operations

Smart Asset Performance Management 12

Benefits of Smart APM

Asset strategy and placement

Identify all of the assets from which data will be collected. Some advanced
3 Characteristics of Data Integrity
APM solutions like Yokogawa Asset Health Insights have a process that
activates existing and new sensors within minutes, including sensors for
1. Data Accuracy: All instruments measuring the
pressure, flow, temperature, vibration, and other use cases.
data and all calculations made with the data have
been validated and calibrated.

Data collection/process configuration 2. Data Quality: All data is measured at the same time
and in real-time so APM comparisons and insights are
APM starts with the data. Data in any factory, plant, facility, or utility can highly accurate.
be siloed, disparate, and require a lot of manual interaction to derive
value from it. 3. Data Relevancy: All data is examined and insights
are delivered in the context of the specific organization
With advanced APM, once collected, data is cleaned and optimized and industry.
within the advanced APM’s cloud-based environment. This ensures data
accuracy, quality, and relevance—key characteristics of data integrity.

Smart Asset Performance Management 13

Benefits of Smart APM

Set KPIs
Although managing industrial operations using KPIs is as old as The 10 Key Performance Indicators
industrialization itself, the effective use of KPIs is still an ongoing
struggle for most manufacturers. With APM, it is easier to set,
track, and manage KPIs across the business.
10. Time to Market 1. Asset Equipment Efficiency

9. Production Flexibility ITY 2. Inventory Efficiency

BIL
I

EX
FL
Once, it’s all set up, business leaders and plant

EF
FIC
SPEED &
managers can use the real-time information to KEY

IENCY
8. Planning & Scheduling PERPORMANCE
examine and analyze the operation, proactively Effectiveness INDICATORS
3. Utilities Efficiency
acting as needed.

QU
IT

AL
7. Safety & Security Y 4. Workforce Efficiency
& A
S S U R ANCE

6. Product Quality 5. Process Quality

Smart Asset Performance Management 14

10 Questions to Ask Your APM Vendor

Here are several key questions you should consider asking your vendor before doing business with them:

1 Is your APM solution cloud-based? 2 Do I have control over my own assets?

Cloud-based solutions unify data, systems, plants, and assets to The ability to lightly customize your APM solution will add additional
provide greater organizational intelligence. By combining deep domain business value. Greater customization should also be available through
expertise with machine learning, software innovation, and asset local domain-experienced managed services teams to ensure your
connectivity, cloud-based APM delivers real-time, data-driven insights solution if fit for purpose now and in the future.
for smarter, safer, and more efficient operations.

Related questions: Related questions:

Do you support cloud-based enterprise integrations? Can I manage my own asset? e.g., add, configure, rename, etc.
Can I download my own data?
Can I add and configure my own KPIs?
Is there a management function?
How fast can I add and configure new devices?

Smart Asset Performance Management 15

10 Questions to Ask Your APM Vendor

3 Does your APM support predictive maintenance? 5 Is your solution intelligent?

Predictive maintenance is facilitated by real-time connectivity and machine Determine if the solution can detect abnormal process event by AI (artificial
learning capabilities that help you better understand assets to reduce intelligence) to alert a site engineer to operational issues, efficiency
downtime, increase safety, and operate within more efficient parameters. potential, etc.

Related questions: Related questions:

Do you support cloud-based enterprise integrations? Does your product continuously learn the normal performance of the asset
or do I have to set manual thresholds?
Can it learn different load and response time patterns for different days or
4 Is your APM contextual?
times of day?
Select a vendor that understands your industry and has built a solution
Can it learn “normal” deviation patterns?
to meet the needs of your specific domain.

Related questions:
Do you have domain expertise to ensure accurate, industry-specific
real-time analytics and insights?
Does the product provide specific diagnostics for common issues?

Smart Asset Performance Management 16

10 Questions to Ask Your APM Vendor

Here are several key questions you should consider asking your vendor before doing business with them:

6 Can your solution reduce mean-time-to-repair 7 Is your APM solution easy to deploy?
(MTTR)? Lengthy implementations can be costly, resource-intensive, and frustrating.
Ascertain if the APM provides detailed asset information down to the Ask your vendor how the APM solution is deployed and whether there are
datasheet so you can confirm situations, predict events, and act local experts available to help smooth out the implementation. Assess the
immediately to reduce MTTR. capabilities you have in-house to implement and maintain a digital
APM solution.

Related questions: Related questions:

When a problem occurs, is diagnostic data automatically captured? Can I deploy the APM myself or do you recommend that I have your
How does the product distinguish one-time anomalies from consultant assist me in the deployment?
consistent patterns of poor performance?
What actions does the product take
when it detects systemic failures?

Smart Asset Performance Management 17

10 Questions to Ask Your APM Vendor

Here are several key questions you should consider asking your vendor before doing business with them:

8 Is your APM solution easy to use? 9 Is your APM secure?

If a solution is difficult to use, adoption will be low. Over time, teams Assess if the cloud-based APM solution has best-of-breed applications
may look at the APM as a bureaucratic process instead of a useful and security to ensure data, users, systems, compliance, and intellectual
resource. Ask for a demo or proof-of-concept to assess the use cases property are protected.
and user experience for all relevant roles in your organization.

Related questions: Related questions:

Does your product’s user interface require experts to interpret the Where does the data reside?
data when problems happen? What cloud applications and security do you use to ensure data, users,
Does your product have an intuitive design and can I access your systems, and intellectual property are protected?
product from a web browser or mobile app?

Smart Asset Performance Management 18

10 Questions to Ask Your APM Vendor

Here are several key questions you should consider asking your vendor before doing business with them:

10 What is the total cost of ownership (TCO)?

The TCO of an APM solution is reduced when the solution is delivered
via a cloud-based, software-as-a-service (SaaS) subscription model,
providing flexibility and access to business insights where it
matters—with edge, cloud, and hybrid configurations.

Related questions:
What does maintaining an on-premises and/or initial software license
cost compared to a subscription-based cloud offering?
What are the annual labor and consulting costs for APM configuration
or Instrumentation?
What are the costs for ongoing maintenance, software upgrades,
cloud hosting, etc.?

Smart Asset Performance Management 19

Introducing Asset Health Insights

OpreX Asset Health Insights by Yokogawa is a cloud-based asset monitoring

Why OpreX Asset Health Insights?
service that collects, refines, and aggregates Operational Technology (OT)
data from distributed assets. The service connects any asset with sensors Deep OT insights and expertise: Built to meet domain-specific requirements
from anywhere helping organizations manage large, asset-intensive and can support IoT and IIoT
operations to increase efficiency and reduce downtime.
Easy flexible deployment: Modular, light, and fit-for-purpose

Asset Health Insights supports all types of organizations ranging from Unified and all-in-one: Manage any asset on your choice of infrastructure
those that rely on manual workflows to more advanced operations that are
Quick and simple set-up: Prebuilt integrations and templates
building a digital future including adopting industrial internet-of-things
(IIoT), smart manufacturing, and a shift from on-premises to the cloud. A single intuitive dashboard: Asset Health Insights presents complex data
from every asset across the operation.
Organizations can easily connect siloed systems and asset data with a
unified model that shares information in real-time, eliminate costly cycles of
attending to equipment that is already performant, and focus on the assets
that need attention.

Asset Health Insight users manage their operations in the moment,

predicting and responding to events before they happen to increase
efficiency and reduce downtime.

Learn more about Asset Health Insights

Smart Asset Performance Management 20

Thank you for reading our eBook about Smart Asset Performance Management!

Yokogawa Electric Corporation

Digital Transformation Platform Center
Digital Solutions HQ
9-32, Nakacho 2-chome, Musashino-shi, Tokyo 180-8750, Japan

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