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Building a Business Case for Modernizing Your Automation System

A large number of chemical process industry companies have older process control systems that have reached the end of their useful life. Replacing these systems has become more of a priority than in the past. Engineers are being asked to develop plans and justification rationale to replace their older systems.  

Many times the business case for a new control system is the combination of a lack of flexibility or expandability of the existing system, the increasing cost of maintenance, and the inability to obtain reliable spare parts. Others find their systems are too cumbersome and difficult to take advantage of changing business opportunities. Their systems use complicated programming techniques or use multiple servers and interfaces that lack the flexibility to be easily modified. Well trained, expert programmers are necessary, and if not available on-site, can be difficult and expensive to contract.

These mature systems are not able to take advantage of new technologies such as wireless communication and software applications such as asset management or ERP based software. Many times their systems have reached either their controller or I/O capacity. Expansions may require new equipment or, if available, the purchase of outdated technology. This makes for a difficult investment decision.  

While management is understanding of the difficulties and costs of maintaining mature systems, they also want to see financial gains for their investments. It is important to realize that financial gains are not obtained by just replacing the control system. Understanding the deficiencies within the operation of the process unit, how the application of new automation technology can improve the deficiencies and developing the implementation plan is vital.

A well designed, state-of-the-art automation system provides numerous opportunities to improve a plant’s financial performance. The key is to know where to look and how to identify potential opportunities. Then one needs to be able to estimate the financial benefit of the opportunity.

Find out more about putting together a business case for replacing your out-of-date control system by attending our shortcourse “Getting Your Brownfield Automation Project Approved” at this year’s Emerson Exchange.