1. © 2013 IBM Corporation IBM Predictive Maintenance and Quality Presenter Name Presenter Job Title, IBM Organization Name Date

2. © 2013 IBM Corporation Poor Asset Performance Limited Process Integration Lack of visibility of predictors across organizational silos Difficulty synchronizing demand and supply Too many manual processes & disparate information sources Losses in processes have become norm Resource complexity make it harder to respond to changing needs Market forces are amplifying day-to-day issues Customer demands Complex supply chains Raw material price volatility Compliance and scrutiny Lean operations Aging workforce #1 Risk to Operations is asset failure 1 Lack of visibility into asset health High costs of unscheduled maintenance Inability to accurately forecast asset downtime and costs Leads to unnecessary process proliferation Aging assets pushed to limits to meet consumer needs 2

3. © 2013 IBM Corporation Analytics is a key enabler in maximizing asset productivity and process efficiency Process Integration  Optimize operations and maintenance  Enhance manufacturing and product quality Asset Performance  Improve quality and reduce failures and outages  Optimize service and support Source: IBM CIO Study, "The Essential CIO" Source: IBM Institute for Business Value and MIT Sloan Management Review, “Analytics: The New Path to Value” Fig.1: Best-in-Class companies use the data they collect more effectively, and turn that data into actionable intelligence Source: Aberdeen Group. Asset Management: Using Analytics to Drive Predictive Maintenance. Mar 2013. Fig. 2: Best-in-Class companies leverage all technology enablers to enhance outcomes 83 percent of CIOs cited analytics as the primary path to competitiveness Organizations that lead in analytics outperform those that are just beginning to adopt analytics by 3 times 3x 83% 3

4. © 2013 IBM Corporation Assets are more than just manufacturing machinery 1.Manufacturing process  Manufacturing machinery utilized to create a product 2.Field-level assets  Consumer Appliances o Washers, dryers, hot water heaters, furnaces, HVAC  Vending Machines o Food, drinks, cigarettes, electrical products, videos, money  Connected Transportation o Planes, trains, ships, tanks, buses, passenger automobiles, fleets, electric vehicles, gas powered autos, motorcycles, snow mobiles, lift trucks  Heavy Equipment Machinery o Earth movers, mining equipment, cranes, wind/gas turbines, nuclear plants, solar panel arrays, oil drills, oil rigs  Networks o Electrical grids, water/sewage infrastructure, IT systems, telecom lines/cables, security systems  Buildings o Property, real estate, universities, stadiums, corporate offices, headquarters, field offices 4

5. © 2013 IBM Corporation New Offering! IBM Predictive Maintenance and Quality Reduce operational costs Improve asset productivity Increase process efficiency Accelerate Time-to-Value  Real-time capabilities  Big data, predictive, and advanced analytics  Quick and accurate decisioning  Maximo integration  Open architecture  Business intelligence 2012 Q1 2013 TODAY! 5

6. © 2013 IBM Corporation Monitor, maintain and optimize assets for better availability, utilization and performance Predict asset failure to optimize quality and supply chain processes Remove guesswork from the decision-making process IBM Predictive Maintenance and Quality reduces operational costs, improves asset productivity and increases process efficiency Combined with out-of-box models, dashboards, reports and source connectors 6

7. © 2013 IBM Corporation 7 Business Use CaseBusiness Value Predictive Maintenance and Quality generates business value for organizations Predict Asset Failure/Extend Life  Determine failure based on usage and wear characteristics  Estimate and extend component life  Utilize individual component and/or environmental information  Increase return on assets  Identify conditions that lead to high failure  Optimize maintenance, inventory and resource schedules Predict Part Quality  Detect anomalies within process  Improve quality and reduce recalls  Compare parts against master  Reduce time to identify issues  Conduct in-depth root cause analysis  Improve customer service

8. © 2013 IBM Corporation 8 Case Studies A city government wanted to boost city services and address infrastructure sustainability IBM combines asset management innovations, predictive modeling, and geospatial and business analytics to help the city improve planning, operations and services Outcomes: Anticipates saving $100,000 per year in staff time spent on capital plan forecasting Expects to reduce costs related to project coordination, operations and capital expenditures A global petroleum company wanted to increase asset utilization and reliability in a remote environment IBM helps predict where and when ice presents a threat to existing drilling platforms Outcomes: Produces real-time visualization of ice floe positions and trajectory cone forecasts Predictions determine whether to move platforms — providing cost savings A not-for-profit marine society dedicated to ensuring safety and pollution IBM helps the company detect anomalies in vessel monitoring systems even under dynamic changes of ocean conditions Outcomes: Significant reduction of the cost for detection rule construction (~1/10) Significant increase of detection coverage (~ x 2-3) Reduction of overall maintenance cost (demonstrated at least 10%) Predict Asset Failure/Life: Environment Predict Asset Failure/Life: Enterprise Asset Mgmt Predict Part Quality: Anomalies

9. © 2013 IBM Corporation 9 Case Studies A global manufacturing company wanted to more quickly detect part defects IBM implemented an early detection model to detect part defects earlier and respond in the most optimal way Outcomes: Early identification and mitigation of enterprise component and quality issues Provide insight to the health and probability of failure for in-service equipment maximizing uptime Global manufacturing company Regional utility company A regional utility company needed to maintain an aging infrastructure IBM delivered an industry- specific solution to detect potential problems before they occur Outcomes: Improved asset maintenance identification 20% productivity gains for service trucks Up to 20% reduction of fuel costs due to fewer truck rolls Global auto manufacturer A vehicle manufacturer wanted to improve its production quality IBM’s solution helped use real-time data to monitor the production quality and more quickly identify and resolve issues Outcomes: Reduced the defect rate by 50% in 16 weeks in the production of cylinder heads Increased customer satisfaction Predict Asset Failure/Life: Extend Life Predict Production Quality Predict Part Quality

10. © 2013 IBM Corporation 10 Predictive Maintenance and Quality analyzes data from multiple sources and provides recommended actions, enabling informed decisions Asset Maintenance Asset Performance Process Integration Collect & Integrate Data Structured, Unstructured, Streaming Generate Predictive & Statistical Models Conduct Root Cause Analysis Display Alerts and Recommended Actions Act upon Insights Predictive Maintenance and Quality Data agnostic User-friendly model creation Interactive dashboards Quickly make decisions 1 2 3 4 5

11. © 2013 IBM Corporation A proven architecture based on best practices underlies Predictive Maintenance and Quality Integration Bus (Message Broker) Integration Bus (Message Broker) End User Reports, Dashboards, Drill Downs High volume streaming data Telematics, Manufacturing Execution Systems, Legacy Databases, Distributed Control Systems Telematics, Manufacturing Execution Systems, Legacy Databases, Distributed Control Systems Enterprise Asset Management Systems Analytic Datastore (Pre-built data schema for storing quality, select machine and prod data, configuration) Analytic Datastore (Pre-built data schema for storing quality, select machine and prod data, configuration) Predictive Analytics Decision Management Business Intelligence 11  Advanced analytics powered by IBM SPSS and Cognos  Data integration provided by Websphere Message Broker and Infosphere Master Data Management Collaborative Edition, which feeds a pre-built, DB2-based data schema  Process Integration with Maximo – automatic work order generation  Includes data models, message flows, reports, dashboards, business rules, adapters, and KPIs

12. © 2013 IBM Corporation Predictive Maintenance and Quality provides several key features Accelerated Time-to-Value Big Data, Predictive and Advanced Analytics Open Architecture Business Intelligence Real-time capabilities Quick and Accurate Decisioning 12 Maximo integration

13. © 2013 IBM Corporation Real-time Capabilities Features  Conduct real-time monitoring of assets and processes  Collect, integrate, analyze, and report streaming information  Orchestration of events and services for efficient processing  Connect to sensors, PLCs, SCADA systems, databases, maintenance logs, Big Data streaming sources 13

14. © 2013 IBM Corporation Big Data, Predictive and Advanced Analytics Features  Leverage descriptive, predictive, and prescriptive analytics, as well as data and text mining  Utilize menu-driven interfaces without the need for any programming to create predictive models  Asset health modeling based on real-time event data – measurements, logs, alarms, repair history  Product anomaly detection detects product uniformity issues, and outliers providing lot inspection recommendations 14

15. © 2013 IBM Corporation Quick and Accurate Decisioning Features  Utilize the Decision Management methodology and optimize decisions at the point of impact, balancing resource and costs constraints  Combine asset and process business rules of the organization to enhance decisions  Conduct “what-if” simulations to accommodate changing operational conditions  Provide optimized decisions directly to decision-makers 15

16. © 2013 IBM Corporation Maximo Integration Features  Integrate directly with Enterprise Asset Management systems such as IBM Maximo  PMQ leverages asset master data from Maximo  Master data is synchronized between Maximo and PMQ  PMQ generates work orders based on analytic insight and business rules  Act upon predictive insights 16

17. © 2013 IBM Corporation Open Architecture Features  Stream data from many sources for data aggregation  APIs for integration and customization  Quickly expand included content for specific industry and business applications  Integrate directly with Enterprise Asset Management systems Business Process Management or other services 17

18. © 2013 IBM Corporation Business Intelligence Features  Monitor status and quickly address areas of concern  Conduct self-service query, reporting and analysis from virtually any data source  Leverage the drag-and-drop studio environment to provide real-time views  Experience insight wherever needed with mobile capabilities  Drill-down into data for additional insight 18

19. © 2013 IBM Corporation Accelerated Time-to-Value Features  Business user interface for master data entry and modification  Leverage easy-to-install, pre-configured software and content stack  Utilize out-of-the-box data source connectors and models, dashboards, and reports to reduce the need for additional services  Quickly expand included content for specific industry and business applications 19

20. © 2013 IBM Corporation Predictive Maintenance and Quality converges Enterprise Asset Management (EAM) and Analytics capabilities Enterprise Asset Management Better Outcomes Predictive Maintenance and Quality  Optimized maintenance windows to reduce operating expense  Efficient assignment of labor resources  Enhanced capital forecasting plans  Optimized spare parts inventory  Automated analytical techniques, including anomaly detection for assets and sensors  Improved reliability and uptime of assets  Asset maintenance history  Condition monitoring and historical meter readings  Inventory and purchasing transactions  Labor, craft, skills, certifications and calendars  Safety and regulatory Requirements 20 +=

21. © 2013 IBM Corporation Specialized Skills  Program and Project Management  Setup / installation  Hardware  Software  Specialists  Hosting Analytical ActivitiesInfrastructure Activities  Solution Impact Assessment  Business Case Development  Use Case Definition  Data Integration  Information Modeling  Predictive Modeling  Integration Skills  Business Consulting  Industry Skills  Maintenance Experts  Maximo Specialists  Industry Expertise  Scientists and Mathematicians IBM offers a comprehensive end-to-end solution with Predictive Maintenance and Quality IBM Software IBM Research IBM Services Client Value = IBM Systems and Technology +++ 21

22. © 2013 IBM Corporation For example, IBM has specific accelerators for the Natural Resources Industry 22 Predictive Asset Maintenance for High Value Assets (PAM) Business Drivers  Ensuring Production Line Continuity in Mining (Oil & Gas in roadmap)  Improvements & Warranty Claim Cost Reduction  Allowing SLA models for major OEM's  Achieving operational efficiencies in Field Operations Solution  Industry standards based (CCOM)  Provides a customized information model relevant to the industry, that will be used for reporting and analytics  Provides a base library of advanced analytics specific to the industry equipment types  Provides extension services for data onboarding from input data sources Benefits  Reduced machine/appliance/asset downtime due to (parts) failure  Improved productivity of maintenance resources  Avoid costs of machine/appliance/asset failure  Improved customer satisfaction due to improved service levels  Reduced environmental impact of production failures resulting in lower potential regulatory fees Predictive Operations Performance (POP) Business Drivers  Significant new constraints and operational challenges  Optimizing production ;Complying with regulations  Managing HSE risks, people skills and environment issues Solution  Industry standards based (PPDM)  Aggregates key performance criteria to optimize operations for Oil & Gas production environments  Leverages performance information for process/product quality based on SPC/SQC criteria  Provides Event and Incident management capabilities Benefits  Drive optimal performance with knowledge management and control that comes from effective information capture,analysis and alerting  Support better decision making with data mining and trend analysis  Maximize uptime and lifting capabilities with near- real-time monitoring and analysis of reservoir drilling and production information  Optimize field force efficiency by providing collaboration automation tools  Unify company systems for integrated upstream operational information across the extended enterprise Predictive Energy Optimization (PEO) Business Drivers  Continual increase in Energy Consumption  Continual increase in Energy price trends  Pressures of global energy policies  Environment regulations Solution  Industry standards based (ISA SP95)  Integrated energy management system including energy generation & consumption monitoring, prediction, forecast demand & supply, and plan & schedule for optimized energy use  Provides energy optimization models based on demand forecast from production domain  Provides energy monitoring for generation/usage/consumption of different types of energy.  Provides energy prediction based on historical trends allowing for optimal generation Benefits  Provides an understanding of energy load profiles ; Improves the management of usage, leading to reduced costs  Facilitates lower rate negotiations with energy suppliers & Improves forecasting of future energy usage and costs  Provide business intelligence that drives phases of energy efficiency program Built on Predictive Maintenance and Quality Platform utilizing its core product suite and programming model

23. © 2013 IBM Corporation Talent A resource pool of highly talented analytic Subject Matter Experts and Industry experts with predictive maintenance experience Industry Expertise Predictive models for a number of specific industry use cases Accelerators Pre-configured dashboard and visualization templates Pre-integrated software tools, with connectors to a variety of asset management solutions Big Data, Predictive & Advanced Analytics An enhanced advanced analytics methodology, tailored to the needs of the predictive asset/maintenance space Why Choose IBM Predictive Maintenance and Quality? 23

24. © 2013 IBM Corporation Identify which business problems are ripe for asset optimization and cost containment Determine capability gaps regarding infrastructure, information, and decision-makers Map a course for rapid value creation 1 2 3 Next Steps 24