Westinghouse Process Control, based in Pittsburgh, Pa., engineers and supports process control technology to improve the performance and efficiency of power plants, wastewater treatment facilities and water treatment facilities. As part of Emerson Process Management, Westinghouse Process Control offers a complete control and instrumentation solution, supplying public and private utility organizations with technology, and providing process expertise, service and ongoing support through strong customer relationships. Ann Pauley serves as president of Emerson Process Management's Westinghouse Process Control business.
World-Gen: 75 percent of Westinghouse Process Control's total business (distributed control systems, optimization software and control related services to power generation facilities) is US based. How much does the optimization software area add to the bottom line?
Pauley: When you look at the Westinghouse Process Control business, in terms of distributed control system installations and related services, we're around that split between domestic and international. However, Westinghouse is only one piece of Emerson Process Management, which leads the worldwide process automation market, ahead of ABB, Siemens and Invensys. Emerson is also the market leader in power generation, with over 3,000 process control systems installed in generating facilities around the world, spanning all types of configurations and boiler types. We're also a leader in broad turbine control capability. And the Emerson Process Management family is also the definitive market leader in field equipment with Fisher vales and Rosemount transmitters.
Currently, our optimization software market sales are also 75 percent domestic. However, recent trends are showing newer applications in Europe and in Asia for this product, so we think that number is changing quickly. Optimization products are not a large revenue generator for us, but play a very large part in our role as a total solutions provider. When customers look at Westinghouse as a vendor or process control partner, one of the important capabilities we offer is that we can optimize the performance of their plants. We offer SmartProcess as part of a total solution package, or as an optimization solution in itself, capable of working with any distributed control system. Our optimization products are a key enabler of measurable performance improvement and significantly strengthen our position in the marketplace, so their impact on our business is far greater than the direct revenue they generate.
World-Gen: As part of Emerson Process Management, Westinghouse Process Control will be party to "Partnering for Power." Our readers would like to know how this will be implemented and what cost savings will be realized.
Pauley: "Partnering for Power" is the approach to the power market that grew out of issues facing generators across the country - aging equipment, outmoded design, changing operating modes, and, perhaps most the most critical, the process knowledge gap that has developed on the generation side of the industry. The approach integrates Westinghouse Process Control technology and expertise with other key Emerson Process Management offerings, including PlantWeb digital architecture, Rosemount and Fisher intelligent field instrumentation, knowledge-based management solutions software from AMS, and a variety of maintenance, training, software, benchmarking and assessment tools.
We've seen a trend over the last few years in which plant customers look to us for more than products - they look to us for expertise. Downsizing that took place when the move to deregulation began resulted in plants with overworked staffs and less overall process knowledge. It's now up to outside sources like vendors to provide extra hands and additional experience to get the job done.
"Partnering for Power" is about quality relationships - we partner with customers to provide more than a control system - we provide the expertise, training and operations solutions they now need to run older plants efficiently. Through a process that includes performance audits, benchmarking, planning and consultation, and ongoing support for sustained achievement, we project improvements in heat rate, availability, maneuverability, maintenance costs and startup fuel costs. These improvements can offer savings that total more than $1 million annually. We are taking on a key role in ensuring the success of our customers by providing what they need when they need it at a reasonable cost. One of the benefits were seeing from deregulation is that power plants are no longer tied to bureaucratic procurement rules, and the doors are now open for things like vendor alliances and programs like "Partnering for Power," which, quite frankly, are better ways of doing business.
World-Gen: Congratulations on achieving 300 percent growth of the SmartProcess Optimization Software line for fiscal year 2001, ending September 30. What do you attribute this growth to be from?
Pauley: Thank you. We've worked hard to make SmartProcess Optimization Software one of the key tools in the Emerson Process Management tool box. It's a product that helps power generators successfully target specific process challenges, while providing quick return on investment, which is a primary goal of the "Partnering for Power" initiative.
We think it's been successful because it not only provides positive results and ROI quickly, but because those results are sustainable within the plant. SmartProcess is not a one-size-fits-all software package - it combines the power of technology with the expertise of all of the Emerson Process Management companies. Our engineers apply the proper technology tools to solve our customers' process problems.
SmartProcess provides consistent, reliable results during all plant operating scenarios, including startup, shutdown, load swings and baseload operation. We have five modules, which are customized during each installation to account for the unique operation of each plant. Our Combustion Optimization addresses boiler issues like NOx production, efficiency and opacity. We also offer a Steam Temperature Optimizer; Sootblower Optimizer and a Global Performance Advisor. Our Economic Dispatch Module helps plants to manage load changes to maximize profit.
What differentiates us is the combination of best in class advanced software tools along with power application know how to provide customers a fully integrated, proven solution.
World-Gen: You have reached 25 percent market share in the optimization software field - does this lead the pack of Pegasus, the former Pavillion power unit, NeuCo, and Ultramaxx?
Pauley: Our optimization market share of 25 percent is particularly gratifying, since we only introduced SmartProcess a few years ago.
We're currently a strong number two in North American power optimization and closing the gap rapidly. Customers are finding out that to be successful in this market, suppliers need to have not only state of the art advanced control software, but also a deep bench of power experts who know how to properly deploy this technology for maximum results in the real world.
Additionally, through Emerson Process Management, we are the only company in the optimization field that also provides total solutions for power generators' instrumentation and control needs.
World-Gen: You just announced that "AMS inside" will be incorporated into the signature Westinghouse DCS, the Ovation Information & Control System. What other new products are in the pipeline?
Pauley: AMSinside is actually a product of our sister Emerson Process Management company, AMS Software. AMS software is now part of the Ovation System.
AMSinside offers Ovation users the ability to retrieve and analyze information from smart field devices like HART and FOUNDATION fieldbus directly through the main process control system. Because of the maintenance savings these devices can provide by offering specific equipment information, more and more power customers will look to them to improve efficiency and reliability. AMS inside allows our customers to implement this new technology in a more seamless, user-friendly manner. The combination of AMS and Ovation can turn information into lower maintenance costs, lower startup and commissioning costs, and it can get plants on line faster when demand increases
We'll continue using industry-leading technology from other Emerson Process Management companies to strengthen the overall solutions we offer power customers. The Emerson product and service development process is really about what customers tell us they need.
World-Gen: You have recently announced contracts in Italy, Bosnia and Korea, and plan on expanding in Eastern Europe in 2003. Will the Warsaw, Poland office cover both Europe and Asia?
Pauley: Emerson Process Management has offices throughout the world, where company representatives work together, pulling from the expertise of all Emerson companies to provide the best possible instrumentation and control solutions to all of our customers.
Emerson Process Management operates offices in Europe, India and Asia, as well as the Middle East. With this kind of reach, Emerson can readily provide high-quality, reliable control systems to power generators as they work to expand the energy capacity of nations around the globe.