Total Solutions Hot Topic Hour (August 20) confirms the Trend toward Greater Outsourcing

 

Speakers and participants in the Total Solutions Hot Topic Hour on August 20 confirmed that customers want suppliers to offer a broader scope of design and installation services. More operation and maintenance support is also needed. Those companies offering a broad range of services coupled with knowledge of the applications provide ways for the international companies to eliminate local competition in developing countries.

 

An air polluter can buy components and design, operate and service his pollution control system. Alternatively he can outsource all these responsibilities. The revenue potential for all this outsourcing is defined as the “Total Solutions Opportunity.”

 

The historical trend is toward greater and greater outsourcing. The availability of new digital tools will accelerate this trend in the future. This opportunity promises to deliver higher profits to suppliers and lower life cycle costs and higher value products for operators. There are many partial solutions as well as total solutions. Each needs to be evaluated.

 

McIlvaine stated that the reason operators need knowledge and help is not because the experienced people are retiring but because knowledge is growing exponentially and the human brain is not.  A number of the speakers offered other explanations. Leaner staffing by operators was one explanation. Another was the perception that manufacturing jobs are not as glamorous as software and electronics.

 

 

The need for broad-based solutions is driven by a number of factors:

 

Factor

Example

Complex systems with multiple control steps

Coal-fired boilers, cement kilns, chemical processes

Valuable final product recovery

Precious metal mining

Valuable process product recovery

Refinery catalyst, solvents in chemical and surface treatment

Difficult compliance with air permit

Many industries in many countries where even start up and shut down emissions are important.

Safety

Explosive gases

Health

Semiconductor toxic fumes

Potential for air pollution control system to negatively impact operations.

Many industries

Lack of skilled personnel within the plant.

Continuous trend

Success of remote monitoring

Applicable to all pollutants and operating parameters.

Ability of suppliers to provide a lower cost alternative.

Reduction of repairs, downtime, energy consumption, etc.

 

The discussion involved a number of presenters and comments from participants.

 

The discussion was based on a series of power points http://home.mcilvainecompany.com/images/Total_Solutions_8-21-2015.pdf