Increasing Internal Reliability With Smart Asset IoT .

Increasing Internal Reliabilitywith Smart Asset IoTTechnology and making/saving money doing it Gilbert Meyer-GauenDirector of Asset ManagementNational Oilwell VarcoNovember 19th, 2017#IoTMan

Overview Company/Industry Introduction Core Maintenance Principles in our Industry:– Reliability Centered Maintenance (RCM)– ISO 14224 Predictive Maintenance via NOV Max NOV’s Internal Maintenance Software Stack Lessons Learned 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 2

Who Are We? Leader in the Design, Manufacture, Sale and Service of Oil FieldEquipment Established: 1841NYSE: NOVEmployees: 36,000Revenue (2016): 7.25B 178 Manufacturing Facilities Worldwide: We Power the Industry that Powers the World 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 3

Not Just The Oilfield We solve really big problems 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 4

Drilling Equipment:TypeModelDrilling Control SystemNOV Hitec DCISDrawworksNOV EH-V-5000Traveling BlockNOV Hydralift HTB1380Top DriveNOV Hydralift HPS 1000 2E ACRotary TableNOV Varco BJ RST 60-1/2Pipe Racking SystemNOV Hydralift Hydra Racker IVHydraulic RoughneckNOV Hydralift HRN-166Pipe Transfer SystemNOV Hydralift 3-1/2” to 30”pipe, SWL 20 tonRiser Transfer SystemNOV Hydralift 90’ riser & slipjoint, SWL 45 tonCoring WinchNOV Dual Drum 19mm x10,000 m.Mud PumpNOV 14-P-220Heave CompensatorNOV Hydralift CMC1000-25Riser TensionersNOV Hydralift N-line directacting tensionerLower Marine Riser PackageNOV Shaffer Dual AnnularSource: -mantle/index.html 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 5

Challenges We And Our Customers Face Extremely remote locations Extremely rugged (rough neck proof) Low connectivity Extremely expensive when thingsbreak– Antonov AN 124 rented to flyequipment Technology averse(unless it turns to the right!) Tried and failed a few times no trust it will work! 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 6

Core Maintenance Principles Reliability-Centered Maintenance (RCM) ISO 14224:Petroleum, petrochemical and natural gas industries — Collectionand exchange of reliability and maintenance data for equipment 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 7

Reliability-Centered Maintenance (RCM) First used by Boeing during the design of the 747 Since then adapted widely by many industries, incl. aerospace,wind power, mining, and oil and gas productionSource: RCM Principles Provide Predictive Asset Maintenance Benefits, Cost Savings - Frank Breland, et al. (2010) - IADC/SPE 128865 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 8

ISO 14224 - TaxonomyExample:PetroleumUpstream (E&P)Drilling RigOffshore urce: ISO Standard 14224 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 9

Predictive Maintenance via NOV Max Analytics augments our products12ProductsLarge FootprintDecades of Historical Data3PlatformPeople100 years of product knowledgeMultidisciplinary data science teamNOV Max End to End Solutions Reduced Costof Ownership 2017 NOVOptimizedPerformanceFailure predictionNotification and alertingMitigation sset LifecycleManagementIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 10

Example: Offshore BOP Monitoring Large structure used to seal, control and monitorwells to prevent blowouts Chosen because of its high criticality and availabledata:– 15 years of data– 5 years of detailed maintenance history– 8 BOPs Focus on pressure regulator failures: 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 11

Condition-Based Maintenance 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 12

NOV Access Customer Portal 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 13

We Sell Great Products, So Why Not Use Them Ourselves? 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 14

Overview of NOV’s Maintenance Software StackIoTData HistorianNOV Max Sensors, PLC, Edge DevicesFailure Mode, Effects andCriticality Analysis (FMECA)Preventive MaintenanceUnplanned MaintenanceMachinesComputerized Maintenance Management System (CMMS)OEEManufacturing Execution System 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 15

Asset Information Management System (AIMS) 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 16

Condition Monitoring Work Order 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 17

2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 18

Planned vs. Unplanned Maintenance 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 19

OEE 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 20

Orange - Mazak FCA750PY-N3B 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 21

Orange Overview 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 22

Day-Driven vs. Usage-Driven Maintenance Study 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 23

Day-Driven vs. Usage-Driven Maintenance900Switch to Usage800700600500Man Hour Count400Planned Work Order Count3002001000Qtr1Qtr2Qtr32014 2017 1Qtr2Qtr3Qtr42017Increasing Internal Reliability with Smart Asset IoT - 11/29/2017 24

Lessons Learned Prepare your machines for IoT now (e.g. network ports or wirelessnetworks) Always get your corporate network security team involvedwhenever you connect equipment to your company network Develop/Buy/Rent computerized maintenance managementsystem (CMMS) to log maintenance and failure data Perform FMECAs on your most critical equipment Try to store any type of data from your machines that you can get;for new machine purchases, check whether they supportMTConnect for easy data access Switch to usage-driven maintenance Never Settle! 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 25

Lessons Learned Uptime and reliability is fun Plants want to be cool Technology exists Show them the money!!! We have no more excuses: 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 26

Questions? 2017 NOVIncreasing Internal Reliability with Smart Asset IoT - 11/29/2017 27

Drilling Control System NOV Hitec DCIS Drawworks NOV EH-V-5000 Traveling Block NOV Hydralift HTB1380 Top Drive NOV Hydralift HPS 1000 2E AC Rotary Table NOV Varco BJ RST 60-1/2 Pipe Racking System NOV Hydralift Hydra Racker IV Hydraulic Roughneck NOV Hydralift HRN-166 Pipe Transfer System NOV Hydralift 3-1/2” to 30” pipe, SWL 20 ton