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Perspectives on the e-Maintenance Transition

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Perspectives on the e-Maintenance Transition
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   Expanding the Knowledge Economy: Issues, Applications, Case Studies Paul Cunningham and Miriam Cunningham (Eds)  IOS Press, 2007 Amsterdam  ISBN 978-1-58603-801-4   Copyright © 2007 The Authors Perspectives on the e-Maintenance Transition Jan GOOSSENAERTS 1 , Robbert VAN LEIJSEN 2 , Arjan GELDERBLOM 3 1  Information Systems, Dept. of Technology Management, Eindhoven University of Technology, PO Box 513, Paviljoen D12, NL-5600 MB Eindhoven, Netherlands Tel: +31 40 247 2062, Fax: +31 40 243 2612, Email:  j.b.m.goossenaerts@.tue.nl  2  Assembléon Netherlands B.V., De Run 1110, NL-5503 LA Veldhoven, the Netherlands, Tel. +31 (0) 40 27 97542, Fax. +31 (0) 40 27 23826, Email:  Robbert.van.Leijsen@philips.com  3 Océ Technologies B.V., Netherlands Tel +31 77 359 4857, Email: arjan.gelderblom@oce.com  Abstract: Web and wireless enabled information systems are becoming the  backbone of the knowledge society. For complex electromechanical and software-intensive equipment, the transition to e-maintenance involves srcinal equipment manufacturers, the owners and operators of industrial facilities, and their service  providers. Narrowly scoped technological and intra-organisational approaches fail to overcome the slow deployment of ICT in maintenance and repair processes. Relying on experience and a closer analysis of this problem in the context of an industry-led e-maintenance project, this paper describes an acceleration approach based on model-reuse within e-maintenance system decision and development methods. It is an option to elaborate this approach as part of an institutional initiative. 1. Introduction Manufacturing foresight studies [1] agree that Original Equipment Manufacturers (OEM) must widen their business focus: from designing and selling physical products to supplying a system of products and services, capable of fulfilling users' demands all over the world. For most of these OEM the service business is related to the maintenance of the equipment. The European Federation of National Maintenance Societies defines maintenance as: “the combination of all technical, administrative, and managerial actions during the lifecycle of an item intended to retain or restore it to a state in which it can perform its required function”. Effective maintenance and repair is critical to many operations, since it extends equipment lifetime and improves equipment availability. Traditional service delivery methods for complex electromechanical and software-intensive machines are becoming difficult and expensive for OEM and their customers. Today, the Internet enables e-maintenance as a tool to provide equipment supplier's experts with the ability to remotely link to factory's equipment. This allows for remote setup, control, configuration, diagnosis, repair and improvement of the equipment [2]. Reflecting a broader perspective on maintenance and repair services, [3] states: “E-maintenance  provides companies with predictive intelligence tools, to monitor their assets (equipment,  products, process etc.) through Internet or wireless communication systems to prevent them from unexpected breakdown. From a broader and more workflow specific point of view, e-maintenance can be interpreted as a maintenance management process covered by state of the art information and communication technology”. In spite of a firm expectation that e-maintenance can decrease service costs and cost of ownership, and enable new OEM business and new software engineering business [4], OEM are struggling with articulating and implementing their e-maintenance service  proposition: “  Many companies have tried to develop Industrial Services to create new business with customers but many of them have failed. In many cases, customers have not  Copyright © 2007 The Authors valued the proposed service models because of the lack of added value to current co-operation between supplier and customer   [5] . ” On the technology side, the ITEA PROTEUS project has made contributions in the area of architecture and basic concepts of an integration platform for creating distributed maintenance systems [6]. A significant number of industry-led initiatives are working at open specifications as pillars of an improved business environment. As part of the International SEMATECH Manufacturing Initiative (ISMI), the e-Diagnostics guidebook provides guidelines and requirements for implementing an e-Diagnostics system within a semiconductor factory [7]. For the MRO (Maintenance, Repair and Operations) market participants, Machinery Information Management Open Systems Alliance (MIMOSA) is developing and promoting open  protocol standards to overcome the problems of equipment information scattered among separate information systems. Within ISO several initiatives give results relevant for achieving enterprise interoperability during the equipment in-use lifecycle phase. Much knowledge is available from the scientific world [8, 9]. Yet, this knowledge is ill packaged for low-hurdle application in the design and implementation of e-maintenance solutions. Given these challenges and advances, the TOAST project objective was to pilot demonstrate the value proposition and feasibility of e-maintenance and remote services. The project ran from September 1 st , 2005 to October 31 st , 2006 and was funded by the Brabantse Ontwikkelingsmaatschappij, a regional funding organisation. The partners were Philips TASS, Océ, Assembléon, Sioux, and TU/e. For the industrial participants, the main objective of the project was to demonstrate that remote monitoring of equipment could contribute to availability gains for the customer and to service cost reductions for the OEM. An additional objective was to gain experience with customer perceptions, acceptation by the service engineers in the field and technical aspects such as reliability, availability and security of the Internet connections. Overall TOAST achieved its industrial objectives. Availability gains and cost reductions that were achieved in particular situations have contributed to a higher priority for remote services. The feasibility of such services in the regular business, and a staircase model for e-services have contributed to a broader support with decision makers. The staircase model instantiates the ISMI framework for application of e-maintenance technology in failure-based and condition-based maintenance [7]. Yet, field service processes are often outside the reach of systematic measurements of their operational performance or outcomes. There is a lack of information, and getting reliable information on a broad range of indicators often is expensive. Moreover ICT offers an increasing range of options to improve the service portfolio. This implies a complex response, ranging from enacting a change management program, over definition of service  products, to making better use of information resources. In a market characterized by immature standards and lack of near-peer success stories, the OEM risks burning assets. Moreover, standards, reference architectures, KPI trees etc., are imitable (strategic) artefacts, in which the OEM must not invest (much) more than competitors. An interactive  planning approach involving suppliers, customers and partners, the following of influential adopters, and the conducting of technological experiments [10] would be an option, yet the services' closeness to the equipment makes it risky to engage in intensive exchanges with customers, service providers and competitors. Concerns of leaking knowledge and (intellectual) property, confidentiality and free-riding, and the weak enforceability of the related institutional principles, all contribute to a broad prisoner's dilemma. These circumstances and the inter-organisational nature of the e-maintenance solutions have underscored the need for refined and efficient e-maintenance system decision, development and implementation methods. This paper proposes methods and supporting models aimed at overcoming the broad prisoner's dilemma in the e-maintenance transition. The validity of these methods and models has been ascertained by basing them on the  legacy regarding methodology and information systems development and implementation, and by evaluating their joint use at the mental level of positivistic reasoning [11]. As yet, they have not been tested in industrial service systems. 2. Concerted Regulative Cycles for Accelerated e-Transitions Where research should lead to problem-solving or practical interventions, there is often a need for the process of multi-methodology, that is, combining together several methods in an intervention [12]. Originating in psychological practice, the regulative cycle [13] has  been extensively applied also as a methodology of practice, geared towards the "interested" regulation of the behaviour of groups or organizations in the desired direction. Where  principals are engaged with the operations and improvement of a work system such as a  plant, a hospital or a service system, the cycle includes the following activities: evaluation (of system operations with respect to an instrument or via benchmarking), problem identification (selection from a problem mess), diagnosis (of the problem situation – analysis), plan of action (design), and intervention (implementation). This last step is followed by evaluation to close the cycle. In the evaluation activity it is convenient to have an instrument to compare the performance or structure of the work system. The reference fab methodology [14] uses a reference model for systematic target setting on high level  performance indicators. The model obtained from peer intelligence is translated into a site specific reference model with targets for the actual site work system. The translation considers factor costs, volumes and complexity of technologies. real sitework system site specificreference modelsProblem Identification Analysis and diagnosisInterventionImplementationPlan of actionDesignEvaluation/ Monitoring reference model TranslationPeer Intelligence(Market, Science, Roadmap, Benchmarking,..)Problem/GapRegister    Figure 1: Regulative Cycle Extended with Reference Models As e-maintenance implementation problems involve the ICT-reliant work systems of multiple enterprises including the OEM and its customers, some form of concertation of their regulative cycles is recommended. Where benefits of model-based development [15] are pursued, sharing model repositories can help reduce common project risks [16]. Where a trend to many-to-many relationships is observed [17], lock-in strategies by software vendors, and free-rider attitudes and prisoner's dilemma by OEM and their customers may delay achieving solution flexibility, perpetual service-IT alignment, as well as affordable development and implementation costs. A complicating factor in deciding on investments in the maintenance value chain is the imitable nature of the standards, architectures, contracts and services that must be deployed. In economic theory, the relevant game is the  public good game, a multi-player variant of the prisoner's dilemma [18]. Copyright © 2007 The Authors   The maintenance community is a highly fragmented community, for which the savings that improved interoperability could deliver have been quantified [19]. This community is also conservative as facilities and equipment are sturdy, capital intensive, long-lived and often the object of intricate regulatory or contractual requirements. Reflecting the insights of Nobel laureate D.C. North [20] regarding institutions' impacts on economic performance, institutional initiatives could be contemplated for removing roadblocks in the e-maintenance transition. Inspired by [21], Figure 2 depicts in an abstract manner the facilitating role of institutions and infrastructure. Where such facilitation remains absent, market interactions will suffer. Institutions may have market enlarging effects [22]. The next section focuses on the reusable models and concerted regulative cycles that are  proposed as elements to bridge the utility gap delaying the outcomes of market interactions in the e-maintenance area. institutionsinfrastructure(+ model-warecommons)demandfordata &software applicationsin the maintenancework-systemsupplyof data andsoftware applicationsforthe maintenanceworksystemdemand-supplyinteractionsunder right-conditionedinstitutionsfacilitatedbyutilitiesdesignedfor efficientmaterial/energy/financialflow& peoplemobility technologybaseddemand-supplyinteractions without fit institutions& utilitiesfordata & knowledge  institution gaputility gapnon-interoperabilitiesas cross-cuttinginnovation decelerator;asset eroder;incentive destroyer improvementmisses due tosilo-architecturestrategy to lockin customers byvertical solutions   Figure 2: Managing e-Transitions in the Maintenance Eco-system 3. Model-based Development of Maintenance Services Regulative cycles for a work-system are well understood and much practised; the challenge in the e-maintenance transition is the concerted deployment of Information and Communication Technology in work-systems controlled by different principals. The next sections illustrate an approach to reuse models, in particular goal models and operations models. These models are computation independent and reflect business concerns. Typically they would find a place in one of the dimensions of enterprise architecture. Within the decision and/or information system of the industrial OEM and its customers, these models are refined, instantiated and mapped. Process and information models can be embodied in platform specific solutions. 3.1 A Generic Goal Model The real site work-system of maintenance processes is cross-enterprise. Figure 3 depicts a generic goal model for maintenance collaborations. Clauses in service level agreements  between the OEM and its customer will determine scores for activities that are initiated by events in the equipment life cycle. In the instantiation of the generic model for the customer, the equipment is in the role of the asset, and improved asset availability will Copyright © 2007 The Authors  determine what the customer is willing to pay for the (speed of the) service. When a service provider is called in, his EVA depends upon low service cost and high customer satisfaction. Manufacturers of "products built to last" find that revenues from after-sales product installation, configuration, maintenance and repairs are 30% or more of their total revenues, and that the proportion is increasing [23]. Yet, as the quality of equipment improves, the service sales may be decreasing as well. In markets where services including maintenance are becoming increasingly important as a product differentiator, the OEM partners in TOAST agree both on the radicalism of the service challenge and the complex value equation. On the one hand new e-services, like predictive maintenance or advanced process monitoring are quite different from the OEM core-business. On the other hand, customers do not like spending money on services, unless there is a proven significant revenue increase. Moreover, equipment-focussed services must not only help to increase machine availability and productivity. In complex environments such as manufacturing plants, offices or hospitals, customers also expect that durable OEM products and services will leverage the customer's investments in ICT technology, service and business processes. Given the absence of near-peer success stories in services and the lack of data-exchange and enterprise interoperability standards, these expectations fuel expensive development and repeated customization demands for low-frequency interactions.  ImproveEconomic Value AddedImprove Asset ProductivityLower Service CostImprove Quality/cost relation of provided serviceIncrease Customer SatisfactionIncrease Service and ProductQualityImproveSpeedof ServiceIncreasereliabilityperformanceImprovemaintainabilityperformanceImprovesupportabilityperformance   Figure 3: Generic Goal Model 3.2 The Design Space of Maintenance Activities With given demand characteristics and goals, and performances measured, the work-system stakeholders can evaluate decision alternatives for improving the maintenance activities  performance and outcomes. Decision making in the maintenance environment is constrained in a design space of which Figure 4 shows the most relevant design parameters and variables. The e-maintenance decision variables are within the structural decision element maintenance technology [9]. By way of example, the performance and outcome indicators are structured in accordance with the perspectives of the balanced scorecard [24]. Given the real site work-systems of an OEM (providing maintenance services) and of its customers, the reuse of the design space reference model (Figure 4) occurs via multiple instantiations of the central box for the (real-site) resources, and via their mutual connections by means of pattern connectors that instantiate to places of the flattened Petri net representations of the systems under study. Copyright © 2007 The Authors
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