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Predictive maintenance business plan

MBA project work presentation
by

Giovanni Spagnol

on 13 May 2015

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Transcript of Predictive maintenance business plan

Energy
Capital
Technology
Home
imagination at work
Maintenance
Corrective
Predictive
Preventive
Is a maintenance task, performed to identify and fix a failure, aimed at restoring an asset to its operational condition
Also called time-based, provides systematic
inspections and actions in order to prevent failures and major defects
determines the condition of in-service equipment in order to predict the exact point in time in which maintenance should be performed
GE current maintenance strategy:
GE maintenance
target:
Corrective and Preventive
Preventive and Predictive
Customer need: higher machinery
availability
GE wants to decrease maintenance costs and risk
Solution:
Offer a
predictive maintenance
BUSINESS
PLAN
GE Oil and Gas, Global Services
MBA project work
Giovanni Spagnol MBA32 Candidate, MIP
MIP tutor: prof.ssa M.Pero
GE tutor: A.Palazzolo
The predictive maintenance
business plan
Global Services Core Business
Initiative Description
Target customer selection
Product
Execution Plan
Financial Plan
Operating Plan & Benchmark
Drilling & Surface
Turbomachinery
Measurement & Controls
Subsea Systems
Pipeline Solutions
Global Services
Provide aftermarket service on GE installed based
Support customers’ assets for the entire life cycle of the product.
Business flowchart
Power & Water
Oil & Gas
Energy Mgmt
GE Oil & Gas businesses
Midstream
Upstream
LNG
Downstream
Drilling & Surface
Subsea Systems
Pipeline Solutions
Measurement & Controls
Turbomachinery
Global Services
Growth strategy summarized in the so called Growth Play Book (three years strategic plan)
Auxiliaries (pumps, valves, heat exchangers...)
Heavy duty turbine
CentrifugalCompressor
Total addressable market = ~2000 customers
National
Emerging
Independent
Optimizer
Conservative
Integrator
CSA
Emerging
Optimizer
Integrator
Organization Design
GE healthcare
GE energy
GE transportation
GE aviation
Not viable: sensors applied on different technologies
Same products but different risk mgmt, scope of work and FAA regulations
They verified the profitability of the CBM on Army helicopter fleet
BEST BENCHMARK
The budget allocated create space for 4 people team in the Monitoring and Diagnostic engineering division:

2 analysts in charge of decipher and interpret alarms and advice the shop supervisor
2 analysts in charge of creating complex rules, algorithms and a history trouble shooting database
Cost structure
spread in 2012-2015
Revenue stream:
Kit sales
Maintenance cost optimization
Benefit from bonus-malus scheme
38%
P&E
27%
NPI
23%
C&B
12%
IT
Cost vs Revenues
Revenues
Pay-back
Bonus-Malus scheme
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Maintenance switch
$M
Total
Main. cost
savings
Kit sales
Bonus-Malus
(project work)
Predictive M.
Value
Kit of sensors to monitor the machinery and warn in case of anomalies

Sensors forward real-time information to a database filled with simple and complex rules

Teams of analyst will advice the operations team if problems arise
Early anomalies detection, predicting components cracks and degradation and therefore failures
Distinguish false alarm from real failures
Faster trouble shooting, optimize plant operation
GANTT analysis
Same products and regulations
They are ahead on the process
They have clients feedbacks
Toll Gate: TG1-TG8
3 Different maintenance approaches
GPB 2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
ROI = 379 %
WACC = 0.14
* % included in the chart are made up
2017
2016
2015
2014
2013
2012
Measurement chain/sensors lab. set up &test

Selection of 2 lead users and definition of field test campaign

CBM system installation

Data gathering, analysis and CBM algorythm validation

Go to market ready
TG1
Business Opportunity Identification
TG3
Conceptual
Design
TG2
Identify
Product
Options
TG6
Production & Factory test
TG5
Detail
Design
TG4
Preliminary
Design
TG7
Production Introduction & Validation
TG8
Measurament
& Feedback
Engineering
Everyone's involved
Everyone's involved
NOW
NOW
S
W
O
T
Technology easy and fast to integrate
GE internal benchmarks
Toll Gate and product testing could take long
Data analysis is not GS core business
Due to Fukushima disaster the demand of LNG increased
IT giants (IBM...) might become competitors
Strategic Plan
Customer Benefit
GE Benefit
Rejuvenate fleet and stretch its lifecycle
Higher availability and profitability
Improved performance
Cut direct costs
Enlarge service offering aligning to customer need
Provide a more efficient service
Strategic Marketing
Customer
TX
CSA
GLOBAL
T&M
Service available segment
= ~30 customers
contract type
customer
need
0
1% of annual availability increase means millions of additional revenue
Full transcript