PS: Have you seen any one of the traditional MRO functions – maintenance, reliability, operations – take the lead on digital transformation projects? One trend I’ve observed is, since maintenance teams are burdened with so much of the actual fix-it work, that oftentimes reliability teams are taking on the strategic planning role to help digitize asset management.
RS: I don't think that's new. I think, especially among your top quartile, you will find they probably have a Vice President of Reliability. I've heard the Vice President of Chevron say that reliability is safety. With top quartile companies, reliability is a core competency in their facility, and it is frequently differentiated from maintenance, which is more repair. But it's also not uncommon for both topics to be addressed by the same team. It's a management philosophy question. But you get the biggest bang for your buck if you have well-trained people focused on reliability.
In that same presentation where the VP of Chevron was talking about reliability equaling safety, he expounded on how reliability impacts their financial goals, their operational goals, their HR goals, and safety as well as health and environmental. So reliability is just huge. Knowing that assets will function the way they are intended to function allows the plant to perform the way it was meant to perform and then correspondingly, to generate the revenue it was intended to generate.
PS: What are some of the elements that someone who wanted an internet device, would build into the case? Would it include things like a cloud subscription or other sort of integration services in addition to the technologies?
RS: It certainly could, and I would want to look at those costs. In the example the Emerson AMS Asset Monitor, there are no subscriptions. You could push the data to the cloud, but you don't have to because it will do the analytics in the device and then broadcast the analysis back to whomever needs to see that information along with a recommendation. When you want to look at an ROI, certainly you want to look at costs for cloud storage, you want to look at accessibility to the data in the cloud, you want to look at acquisition cost of the device, installation costs, and any types of subscriptions, which there are none with this in our example.
If it's hazardous rated, self-contained, and it can be mounted next to the machine with very short cable runs to the sensor, your total installation cost is significantly lower. Then if it can support a wireless backhaul, like we do with our solution, you avoid cabling for communication. You want to look at the level of training that's required for the employee to actually use the data. If it's in human language in the examples that I've shown, that's going to lower your training cost. It also will help to alleviate potential disruptions as there's turnover in employees.