Process control systems, energy monitoring and control systems, safety instrumented systems are the heartbeat of any industrial manufacturing asset. The performance of these systems and data platforms directly impacts the profitability, sustainability, efficiency, and operational resilience of each asset.
Traditionally these systems are considered in isolation, yet all suffer the same challenges – aging, limited system performance, loss of expertise and knowledge, opposing hostile cybersecurity threats, the ability to meet demanding standards and directives, increasing support costs, or unplanned downtime. The challenges are many – but all come down to one thing – they present a business risk. The combination of aging equipment, diminishing budgets, and loss of domain expertise has made this situation all too common in recent years.
How do we mitigate the business risk and deliver a winning return on investment?
Doing a “replacement in kind” of aging automation or electrical systems to mitigate the business risk provides little or no benefit. There needs to be additional value created for the business or else why upset the status quo?
One proven approach is to consider the “sum of the systems.” For example, combining power and process information together unlocks new performance and creates a winning return on investment.
Increased profit is achieved by combining system process automation, electrical automation, and expert knowledge.
What’s the best way to approach the investment request?
The justification for a system upgrade is seldom based on a single factor. Many considerations combine to ultimately build a successful ROI case for modernization. Organizations can use a risk-based approach to address business risk. This approach provides context for seeking investment.
Reduce unplanned outages
When the plant is experiencing multiple unexpected outages or trips in a year the justification should be easy… however, just because it hasn’t failed yet doesn’t mean that it won’t fail. It’s all a question of probability / likelihood, or “When, not if.”
If you wait until something fails, it becomes urgent, and teams must divert vital resources from existing projects or budgets to resolve the issue, as discussed in our last blog. This often results in higher overall costs resulting from a compressed replacement schedule, paying a premium to expedite spares / repairs, and obtaining the knowledge and expertise required at a moment’s notice.
The biggest impact of any unplanned outage is the impact of business interruption. An unplanned outage can throw production planning and scheduling off balance, jeopardize supply contract commitments, produce off-specification products that require write-offs, cause missed production targets, and trigger many other business disruptions.
Show the business risk using a risk matrix
Providing a simple visual of the many factors associated with modernizing any system can be hugely impactful. The Risk Matrix is a common denominator across most operating companies. Many companies use different sizes such as 4×4, 5×5, 8×8. But it is known and understood. The math behind the matrix can be ignored. Estimating likelihood is difficult, but consequences remain the same. The matrix provides a simple and common framework for discussion.
Another approach is to justify the upgrade in terms of Risk Reduction achieved per $1 spent:
It may be worth factoring in “what if” scenarios into the ROI calculation to demonstrate the business consequence. If such an event has occurred, stakeholders can determine real costs and use those figures to support the ROI. If not, then some “what if” scenarios may prove useful in raising awareness and showing the cascading effect it has on the enterprise and shareholder impact. Anything that has the potential to impact the bottom line often gets priority!
What factors should you consider in your risk matrix?
Typical factors for consideration include:
Advantages of integrated data platforms and industrial software
In addition to mitigating risk, modernizing control systems increase efficiency and sustainability. Schneider Electric’s EcoStruxure™ Power and Process brings both low voltage and medium voltage information into EcoStruxure Foxboro DCS to create a single window for visibility that allows operators to:
- Quickly diagnose events
- Manage the situation
- Identify energy savings
A unified view of electrical and process SOE enables faster trip investigation—quickly pinpointing root causes to recover lost production. Understanding electrical and process limits helps operators respond to changing conditions and stay within constraints, maintaining stable production. Clear visibility into power usage further supports tracking, optimization, and smarter energy-efficient decisions.
Once you have made the case for an upgrade, it is time to plan a path to prolong the operating life of the control system. Organizations often implement upgrades gradually, upgrading parts of the system as time and opportunities arise. Key to the success of this approach is to ensure the interoperability of the different versions of the systems.
As systems are upgraded, this approach creates “spares” that can be used to support the other legacy systems until they can be upgraded.
Schneider helps businesses build a strategy with the right tools, dependable technology, and domain expertise that enable them to meet the challenges of today’s market.
Leveraging the best of power, process, and digital, our energy management and automation solutions help enable your upgrade projects. Combined with AVEVA’s integrated data platform and leading-edge industrial software, these solutions help minimize risk. They also empower your people through connected capabilities and technologies.
Explore more about modernizing your operations and information on DCS migration.
