Focus of the Issue
We Sell End Result Not Working Hours of Equipment
The 25th Annual Conference of the Honeywell User Group (HUG) took place in November 2013, in Nice, France, where the up-to-date technology and solutions for industrial enterprises were presented, including the expanded line of offerings for the oil and gas industry. A special correspondent of our magazine was present at the Conference, whose reportage is published in “Petroleum” #6, 2013. In addition, Mr John Rudolph, Vice President for Lifecycle Solutions and Services of the Honeywell, gave an interview to “Petroleum” within the framework of the Conference.
- The Honeywell guarantees all its customers a quality service and support of the control system after its commissioning and throughout the entire lifecycle of the system, maintenance services for all product line of the Honeywell, as well as technological availability 24 hours a day and 365 days a year. We ensure the safe operation of the equipment and systems during this period. Our principles are Safety, Reliability and Efficiency; therefore, each project is evaluated by the end result, as the customer buys the result not the working hours of equipment.
Unfortunately, today I don’t meet enough interest in our services among the Russian customers. There is some demand, but not as heavy as we’d like it to be. Thus, we work at its accretion. A lot depends on what service is required and would be provided to the customer.
For many years, the Honeywell and our competitors considered a traditional approach only: the company offers aftersale services and the customer acquires them. But we thought on what if we look at the situation in a new light? For example, we know that the Russian customers have own maintenance opportunities and qualified staff able to perform the maintenance services on their own. In order to support the customers, who, at first glance, have all necessary conditions to perform maintenance services on their own, we have developed the Assurance 360 Program, which provides a proven innovative approach to the maintenance management and which is based on choosing the service options to ensure the continued operation of the Honeywell's control systems. This Program allows receiving not only the consultation of our experts, but comprehensive technical support for the entire lifecycle of control systems and production equipment as well, which ensures their high efficiency. Our approach is really unique.
- How can you characterize the interest of Kazakhstani customers towards your services?
- We have the most stable positions in Kazakhstan. To our opinion, it is an issue of manpower capability - Kazakhstan has much more work than qualified workforce. Besides, this market is constantly evolving. Our main competitor is not the servicing companies, but the customer itself. Thus, our goal is to provide customer with better services than the customer can provide himself on its own.
- How do you build your relationship with the customer?
- First, we evaluate the control systems required by the customer, then we analyze how closely we worked with this customer in the past, which services we are already rendering to him and to what extent. Partnership relations considerably facilitate joint work, they make the work more effective and more "saving" as well.
- At what stage of project you realize that support is no longer required? Or you support the project during its whole lifecycle?
- It depends on each individual project. For example, there is such an indicator as a frequency of accidents or emergencies. It can be and should be improved from year to year, during the entire lifecycle of any technological subject. Occurrence of emergencies directly depends on the reliability of equipment. The "reliability" of control system is understood by the Honeywell not as a failure-free operation, but as a possibility to prevent the emergency situations in time. The purpose of aftersale services is to identify the conditions, which may cause emergency at the production facility, and to prevent them in time.
- Do you advice on the best time for equipment replacement, or the customer shall decide it himself?
- That's a good question, because decision is a main cost item, as any decision entails certain costs. Traditionally, the customer shall make all decisions independently, but along with this, if the customer takes a wrong decision, the responsibility still falls to the Honeywell. Therefore, the more "service-related" decisions we can take for the customer, the more money can be saved.
- How quickly do the customers realize for what they pay money?
- Surely, it depends on the customer (laughs). It takes time, of course. For example, insurance companies and machinery suppliers have long understood the effectiveness of decisions, but, generally, it is difficult to establish specific indicators and to give absolutely objective assessment.
- How to share the responsibility for quality of the equipment control systems: is it the customer, who bought and poorly operates equipment, or still the Honeywell is responsible?
- Under the terms of the Assurance 360 Program, the Honeywell is responsible for everything, but only if the customer complies with all of our guidelines and recommendations. We conduct inspection at the customer's facility to find out how properly our demands are complied with.
- How often?
- The frequency varies depending on the customer and the complexity of the project.
- What segment of the oil and gas industry is the most successful in application of the Honeywell products? From exploration to refining?
- Rather, the producing and processing enterprises. Mainly, it is processing companies, due to the specific nature and complexity of their technological processes.
- In what sector do you see the potential?
- Upstream. We see potential in the oil production, through the volume of works. It happens that even a small-sized company applies to us as it is conscious of how important it is to reduce the risks. Then, the Honeywell takes it on.
Interview by Oleg Chervinsky
Nice - Almaty
(Full article)