Fortum promotes efficiency and sustainability in power plant operations

Published on 11-Sep-2012

"IBM Maximo Asset Management is an indispensable tool for improving the safety of our maintenance processes. Without it, it would be difficult to get a reliable overview of what was happening with major revision projects." - Björn Sude, Mobilisation Manager, Fortum Service Deutschland GmbH

Customer:
Fortum Service Deutschland GmbH

Industry:
Energy & Utilities

Deployment country:
Germany

Solution:
Asset Management, BA - Business Intelligence, Mobile, Smarter Planet

Overview

Fortum is a leading energy supply company in the Baltics, Nordics, Russia and Poland. As the world’s fourth-largest generator of heat, Fortum has many decades’ experience in gas, steam, coal, biomass, waste, nuclear energy and hydropower. Fortum’s business activities cover the generation, distribution, and sale of energy, the operation and maintenance of power plants, and the provision of related services.

Business need:
Fortum has high standards when it comes to its goals for sustainability and occupational safety in the operation of power plants. Precise long-term planning, reliable condition monitoring and transparent budget management are all required if these goals are to be achieved. Direct links need to be made between work orders, work permits and isolations in order to ensure traceability.

Solution:
Fortum implemented IBM® Maximo® Asset Management to centralise all of its process knowledge, creating a corporation-wide basis for integrated and transparent management of assets.

Benefits:
Increases sustainability, safety and efficiency during operation through the improved management of procurement, work processes and product life cycles. Reduces operational and maintenance costs by up to 30 percent thanks to enhanced maintenance strategies, constant cost control and the combination of structured asset data with unstructured work content and defined business processes. Accelerates processes in operations and maintenance thanks to enhanced data consistency and availability, improved data flow between systems, and integrated purchasing and warehouse management.

Case Study

To read a German version of this case study, click here

Smarter Energy Safer, more sustainable process mapping
Instrumented:
Automatically records the operating hours of around 300 asset components and systems at the plant in Lünen, enabling optimum planning of maintenance jobs.
Interconnected: Susceptibility of errors has been reduced to a minimum, and occupational safety improved thanks to the integration of work orders, work permits and work clearances.
Intelligent: Continuous monitoring of all components, predictive maintenance and the constant evaluation of system and unit status have increased the reliability and availability of assets.


Fortum is a leading energy supply company in the Baltics, Nordics, Russia and Poland. As the world’s fourth-largest generator of heat, Fortum has many decades’ experience in gas, steam, coal, biomass, waste, nuclear energy and hydropower. Fortum’s business activities cover the generation, distribution, and sale of energy, the operation and maintenance of power plants, and the provision of related services.

The company employs around 10,800 people worldwide. Its power plants offer outstanding availability, efficiency and safety, and the company has won many international awards for its achievements. Fortum Service Deutschland GmbH acts as an independent provider of operation and maintenance services for third parties in Germany, where it looks after two high-tech plants in Hamm-Uendrop and Lünen, amongst others. The combined-cycle gas turbine plant in Hamm-Uendrop provides electricity to up to 1.8 million households, whilst the coal-fired power plant in Lünen can supply up to 1.6 million households.

One way for Fortum to achieve its strategic business goals in terms of sustainability is through the use of IBM Maximo Asset Management, which helps Fortum manage the maintenance of its power generation equipment more efficiently. In 2009, the average emissions produced by European power-generation companies stood at around 350 grams per kilowatt hour; the figure achieved by Fortum in Europe was just 84 g/kWh, around 75 percent below the average. The corporation has been included in the list of “The Global 100 Most Sustainable Corporations,” as it is able to demonstrate that it uses particularly efficient processes for managing environmental and social standards compared to other companies, and practises responsible corporate management.

Fortum has been listed on the Dow Jones Sustainability World Index since 2004. Only the best-performing sustainability-driven and environmentally conscious corporations from each sector make it onto this index. The energy availability of the gas and coal-fired power plants operated by Fortum stands at around 95 percent, which is approximately 10 percent higher than the average of other German gas and coal-fired power plants.

Consolidation of information through the mapping of key processes
In the gas-fired power plant in Lünen alone, there are 30,000 assets that need to be recorded, from individual measuring instruments to the pump. Mobilisation Manager Björn Sude is developing the organisational processes required for operation, maintenance, purchasing, and warehousing at Lünen.

“IBM Maximo Asset Management is a central element of operations and maintenance in our power plants, and is used by 3,000 people throughout the corporation,” says Björn Sude. “All the key processes are covered by a single system. It would not be possible to maintain our power plants in a way that is efficient, structured and cost-conscious without IBM Maximo Asset Management.”

With IBM Maximo, Fortum can quickly generate cost evaluations using various criteria to serve as a basis for further analyses at any time. There is no need to enter any data manually, budgets can be managed on a daily basis, and all order information is fully traceable. “This enables us to make a direct comparison between the actual costs of an asset and the available budget, for example,” says Björn Sude.

Fortum currently operates approximately 40 different operational management systems, and a large proportion of them are to be gradually replaced by IBM Maximo Asset Management in order to create a uniform basis for operations and maintenance. Fortum runs separate or networked IBM Maximo Asset Management systems for various locations, according to customer requirements. Plants in Finland and Sweden, for example, are mapped to a single IBM Maximo solution, which allows spare parts and other resources to be shared cost-effectively between the combined operations.

For new construction projects such as the plant in Lünen, data is collected from the plant documentation and preventive maintenance processes are worked out before being made available and mapped in IBM Maximo Asset Management. Approximately 1,300 folders of documentation had to be evaluated for the Lünen plant alone.

“When carrying out this work we had to consider how all the components interact with one another in order to ensure safe operation in compliance with our maintenance strategy, and to preclude any risk whatsoever to people and the environment,” explains Björn Sude. IBM Maximo Asset Management provides Fortum with a range of opportunities to link work activities to work packages and to deploy personnel and resources efficiently. “We use IBM Maximo Asset Management for corporate data, work order management, long-term maintenance planning, purchasing, and warehousing,” explains Björn Sude.

Safeguarding all aspects of work orders
IBM Maximo Asset Management generates work orders together with work instructions and risk assessments. Fortum’s particular system of work permit management, including an isolation procedure, makes maintenance work safer, as does the creation of direct links between orders, work permits and isolations, which ensures traceability. Responsibilities are clearly defined, linked to work activities, then mapped in IBM Maximo Asset Management. This integrated solution provides engineers with the full maintenance picture, as IBM Maximo Asset Management groups the relevant information together and combines the risk assessments.

Work permit management includes work permit and isolation planning, the links between work permits and work orders, management of work permits with reporting features and approving work permits on paper.
“IBM Maximo Asset Management is an indispensable tool for improving the safety of our maintenance processes. Without it, it would be difficult to get a reliable overview of what was happening with major revision projects,” says Björn Sude.

Detecting system conditions and transparent long-term planning
IBM Maximo Asset Management makes planning transparent by recording the justification for each investment, the resulting profits and potential risks, and an audit track of the decision-making processes. Status reports provide information for assets in a way that is easy to understand, including status descriptions, status categories, planned actions, actions already completed, responsible individuals and current status. The asset data is also linked to orders and documents.

IBM Maximo Asset Management is connected to Fortum’s management system for technical documentation to ensure that relevant documents can be accessed quickly.

There are other interfaces to SAP and to Fortum’s process information and control system, where data from the power plant control system and other sources is grouped together. The operating hours of the assets are transferred to IBM Maximo Asset Management automatically, where they provide the foundation for a system of maintenance based on operating hours. At the Lünen site alone, the operating hours of around 300 assets and systems are recorded and evaluated. This data forms the basis for flexibly adapting the maintenance strategy for all components to actual requirements by extending or reducing maintenance intervals according to experience gained on a practical day-to-day level.

Improved safety for employees, cost transparency in complex systems
IBM Maximo Asset Management combines all the cost objects involved in maintenance in a single system: work orders, maintenance orders, procurement, warehousing and tools. Cost analyses can be generated flexibly on various levels – both on a department-specific basis and with budget management included – and costs are linked to the technology and location in question.

The advantage is that causal agents can be identified quickly and the maintenance history of each asset and component can be traced. The high degree of networking means that the organisation has complete visibility of the costs involved in the maintenance of individual components. Fortum has been able to leverage this feature to reduce its overall costs for operations and management by around 30 percent over the long term.

Extending the service offering to become a profit-centre
Fortum offers other companies the benefit of its many years of power plant operations and maintenance experience, having successfully extended its business area to provide IT services to third parties.

“Our modern IT systems – including IBM Maximo Asset Management – combined with our expertise and experience, are the most important pillars of efficient operations and optimised maintenance,” explains Björn Sude. “We apply our in-depth knowledge of operational management systems to support other plant operators to increase the availability of their asset bases, improve efficiency, and reduce costs.”

Fortum Service’s management system is certified to ISO 9001, ISO 14001 and OHSAS 18001. “With our standardised operating concepts, we ensure that power plants can generate energy reliably and efficiently, and provide optimum performance. IBM Maximo Asset Management is an excellent tool for mapping these defined maintenance and business processes, and providing evidence of them for certification purposes,” explains Björn Sude.

Following the successes of its IBM Maximo implementation, Fortum is already looking to the future. A barcode-based mobile warehouse management system will be introduced at the Lünen power plant. Stock items, staff ID cards and work order numbers will be given barcodes, which will be scanned into IBM Maximo Mobile Inventory Manager every time a process is performed in the warehouse.

“IBM Maximo Mobile Inventory Manager gives our warehouse staff more flexibility and saves them making unnecessary trips; fewer paper documents are accumulated and we can control and monitor our warehousing work precisely,” concludes Björn Sude. “IBM Maximo Asset Management is the lynchpin that enables us to operate power plants efficiently and sustainably, and plays a crucial role in organising the myriad activities that have to coordinate with one another to maintain and operate our assets.”

Products and services used

IBM products and services that were used in this case study.

Software:
Maximo Asset Management, Maximo Mobile Inventory Manager

Legal Information

© Copyright IBM Corporation 2012. IBM Deutschland GmbH, 71137 Ehningen, Deutschland. ibm.com/de. IBM Österreich, Obere Donaustrasse 95, 1020 Wien. ibm.com/at. IBM Schweiz, Vulkanstrasse 106, 8010 Zürich. ibm.com/ch. Produced in Germany. July 2012. IBM, the IBM logo, ibm.com, Let’s Build A Smarter Planet, Smarter Planet, the planet icons, Maximo and Tivoli are trademarks of International Business Machines Corporation, registered in many jurisdictions worldwide. A current list of other IBM trademarks is available on the Web at “Copyright and trademark information” at: ibm.com/legal/copytrade.shtml. References in this publication to IBM products, programs or services do not imply that IBM intends to make these available in all countries in which IBM operates. Any reference to an IBM product, program or service is not intended to imply that only IBM’s product, program or service may be used. Any functionally equivalent product, program or service may be used instead. All customer examples cited represent how some customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics will vary depending on individual customer configurations and conditions. IBM hardware products are manufactured from new parts, or new and used parts. In some cases, the hardware product may not be new and may have been previously installed. Regardless, IBM warranty terms apply. This publication is for general guidance only. Photographs may show design models.