1. Best P
B t Practices for Fieldbus & HART
ti f Fi ldb
Project Implementation & Lifecycle
Benefits Realization
ARC Forum
February 2008
By Larry O’Brien
O Brien
lobrien@arcweb.com

2. Outline
♦ The Future Potential for Fieldbus and HART
♦ What are the Installed Cost Benefits?
h h ll d fi
♦ What are the Lifecycle Cost Benefits?
♦ What are Best Practices for Project Success?
♦ What are Best Practices for Lifecycle Success?
♦ Panel Discussion/Q&A

3. Fieldbus & HART are a Permanent Fixture on the
Automation Landscape
♦ Market for Fieldbus Products and Services for the
Process Industry (Profibus PA and Foundation
Fieldbus) is growing rapidly and there is already a
large installed base.
♦ Installed base of HART devices is already in the
tens of millions and growing.
♦ Fieldbus and HART are both part of the purchase
specifications of most major companies in the oil
and gas, chemical, and other industries.
♦ Anyone who is still “Waiting to see” what happens
in this market is already missing out on big
p
potential.

4. Fieldbus Market is Booming

5. Installed Base of HART Devices
55 Million Devices in 2005
35%
13%
11%
2%
39%
HART Fieldbus Proprietary 4-20mA + Pneumatic
Smart Non - Smart
Only Ab t T
O l About Ten Percent of HART Devices Installed are Working
P t f D i I t ll d W ki
To their Full Operating Potential

6. What are the Benefits? Installed Cost
Remote I/O Cost Fieldbus Percent
System Cost Differential System Cost Difference
Electrical 140,000€ 0€ 140,000€ 0.0%
Analyzers 140,000€ 0€ 140,000€ 0.0%
Project Management 280,000€
280 000€ 0€ 280,000€
280 000€ 0.0%
0 0%
Field Devices 770,000€ 4,489€ 774,489€ 0.6%
I/O System 420,000€ -76,212€ 343,788€ -18.1%
DCS Incl. Engineering 525,000€ -24,795€ 500,205€ -4.7%
Installation 700,000€ -10,732€ 689,268€ -1.5%
Calibration/Quality 140,000€ -5,976€ 134,024€ -4.3%
Commissioning (IBS) 105,000€ -2,400€ 102,600€ -2.3%
Engineering 280,000€ -9,076€ 270,924€ -3.2%
Total All Process I&C 3,500,000€ -124,702€ 3,375,298€ -3.6%

7. What are the Benefits? Installed Cost
Ability to Replicate Common Applications Cost was Additional
No Savings
Project Overheads Little Savings
Medium Savings
Project Management Significant Savings
Easier P&ID Diagrams
Reduced System Complexity
Reduced Hardw are Footprint
Documentation Costs
System Costs
Maintenance Personnel Training Costs
Operator Training Costs
Wiring Costs
Device/Instrumentation Costs
FAT or SAT Time to Completion
Front End Engineering and Design Costs
Commissioning Costs and Checkout
Reduced Overall Time to Startup
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38

8. Real Advantages of Fieldbus & HART are in
Lifecycle & Operational Costs
100%
80%
60%
40%
Initial Costs Maintenance &
20%
Operation Costs
0%
Initial Costs Represent Only 20% of Total Cost of Ownership

9. What are the Primary Lifecycle Cost Benefits?
Cost was Additional
Tighter Control of the Process No Savings
Little Savings
Medium Savings
Increased Accuracy of Devices Significant Savings
Increased Interoperability and Ability to Choose Devices from Different Suppliers
Increased System Availability
y y
Increased Return on Installed Assets
Prolonged Asset Life
Incident Avoidance or Avoidance of Unplanned Dow ntime
Better Process Visibility
Improved Response Times
Enhanced Effectiveness of the Automation System
0 2 4 6 8 10 12 14 16 18 20 22 24 26

10. Lifecycle Cost Benefits Continued:
Maintenance Cost Benefits
Cost was Additional
Reductions in Fixed Maintenance Costs No Savings
Little Savings
Medium Savings
Reduction in Variable Maintenance Costs Significant Savings
Increased Efficiency and Ease of Change Management
Easier and Faster De ice Replacement Upgrade
Device Replacement,
Identify Problems Before they Happen, Predictive Maintenance Strategy
Reduced Spare Parts Inventory
Reduced Number of Unnecessary Trips to the Field by a Technician
Enhanced Process Diagnostics
Enhanced Device Diagnostics
0 2 4 6 8 10 12 14 16 18 20 22 24 26

11. The Maintenance Opportunity Should not be
Underestimated
35% 63% of maintenance labor
35%
results in no action!!
30% 28%
25%
20%
20%
15%
10%
6% 6%
4%
5%
0%
Routine No Calibration Zero Off Plugged Failed
check Problem shift lines
Source: Shell Global Solutions

12. Who is Realizing the Benefits?
5 Very High Return on Investment
14 Achieved Return on Investment
24 Not Sure
6 Did Not Y t A hi
N t Yet Achieve Return on Investment B t E
R t I t t But Expect T
t To
25.5 % 6 Did Not Achieve Return on Investment and Do Not Expect To
9.1 %
10.9 %
43.6 %
10.9 %
Most Are Unclear on the Long Term Economic Benefits
They Are Achieving

13. How Long Did It Take to Achieve Full Return on
Investment?
2 0-3 Months
3 4-6 Months
5 7-9 Months
5 10-12 Months
3 12-18 Months
14.3 % 0 19-24 Months
23.8 % 3 Over two years
9.5 %
14.3 %
23.8 %
0.0 %
14.3 %
Almost Half of Respondents Achieved a Full Return
in Under a Year

14. Best Practices for Project Success:
Why Do Fieldbus Projects Fail?
♦ Poor Planning/Pre FEED Stage Involvement
♦ Lack of Employee Buy In
k f l
♦ Lack of Management Buy In
♦ Lack of PAM Solution Deployment
♦ Lack of an Experienced Engineering Partner
♦ Lack of an Experienced Supplier Partner
♦ Lack of Proper Training

15. Proper Training & Education is essential
No single standard available
Lack of management buy-in
Lack of employee buy-in
Lack of field workforce knowledge
Increased training costs Strongly Agree
Agree
Insufficient host system functionality
Neutral
Disagree
Multivendor interoperability issues
Strongly Disagree
Not proven in mission critical apps
Initial cost is too high
Lack of supplier support/commitment
Not enough products available
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Lack of field workforce knowledge is
key limiting factor
in fieldbus implementation

16. Up Front Planning is Essential to Success
♦ Get the Involvement of the Supplier and Partners
ASAP
♦ Avoid the “Now that it’s Installed, What do we do
Now?” Syndrome
♦ Lifecycle Benefits are Determined in the Planning
Stage
♦ Need to rethink worker roles

17. Employee & Management Buy In
♦ Employee buy in must reach from maintenance to
operations and engineering
♦ Management buy in is essential, justification of
the technology must match overall corporate
objectives
♦ This is where training and education begins.
Maintenance personnel could view fieldbus/HART
as a threat. Show them how it will make them do
their jobs better!

18. Why is PAM so Important to HART & Fieldbus?
74 I plan to use PAM applications with fieldbus
64 No plans to use PAM applications
55 Currently use PAM with fieldbus
34.1 % 24 Would like to deploy PAM, but cannot
29.5 %
11.1 %
25.3 %
Percent of Total Respondents Planning to Use PAM
In their Fieldbus Projects

19. Implementation of a PAM Solution in Conjunction
with HART and Fieldbus
% Improvement vs Traditional Maintenance
Equipment Productivity
Workforce Efficiency
Equipment Life
Defects
Downtime
Inventory Costs
y
Unplanned Breakdowns
-60 -40 -20 0 20 40

20. Impact of Fieldbus on Standard Work Processes and
Procedures – 1=No Benefit at All; 5=Greatest Benefit
N/A
1
2
3
Operations 4
5
Purchasing
Engineering
Maintenance
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Maintenance and Operations Are Getting the Most Benefit

21. How Has Fieldbus Changed Responsibilities and
Work Processes?
Strongly Agree
Agree
Neutral
Fieldbus has improved the productivity of the process engineer Disagree
Strongly Disagree
gy g
Fieldbus results in enhanced operator effectiveness
Fieldbus has improved the productivity of the maintenance technician
Fieldbus has improved the productivity of the board operator
Fieldbus has improved the productivity of the field operator
0 2 4 6 8 10 12 14 16 18 20 22 24 26
Users Believe the Biggest Impact Is on
Maintenance Technician and Process Engineer

22. Finding the Right Partner
Services &
Project
Coordination
Registered
Partner Successful Fieldbus Devices &
Products Partners Systems
Industry
Expertise

23. Conclusions and Recommendations
♦ There remains a substantial installed cost benefit
to fieldbus technologies, but the real value lies in
the operational and lifecycle cost phase
♦ Many end users are not realizing the optimum
benefit that fieldbus and HART technology can
provide
♦ Training and education are essential. Applying
essential
fieldbus as a mere replacement for 4-20 mA
guarantees project failure and zero ROI.