6.2.1 Concept of Analytical Instrumentation Management

The analytical instrumentation management is based on the following 4 phase model:

management concept (Source: On the basis of Rippberger, Seminar documents, Mercedes-Benz, slide 182)" class="wp-image-9121 size-full" height="418" src="https://sgbs.ch/wp-content/uploads/Figure-18-Analytical-instrumentation-management-concept.png" width="633"> Figure 18: Analytical instrumentation management concept (Source: On the basis of Rippberger, Seminar documents, Mercedes-Benz, slide 182)

Summary of value proposition of analytical instrumentation management

The customer benefits derived out of the modular analytical instrumentation management are as follows;

• Transparency over analytical instrumentation and its incurring costs
• Higher analytical instrumentation performance
• Keep up with new product innovations, which results in improved reliability and performance
• High motivation of users due to optimal instrumentation installations
• Decrease in operational costs through lower TCO
• Increase in production productivity, which results in better product yield et cetera

In order to give better insight into the main elements of Analytical instrumentation management, Phase 2 and 3 are explained in more detail.

Phase 2: Analytical instrumentation consultation

Table 19 shows an example of the cost comparison of an existing installation base versus a new installation base, which is equal to the proposal of MTPRO. It is called consists of a bundle of five loops, which have the same specifications and characteristics.

The numbers included in table 19 have been established with the MTPRO chemical segment specialist, Stefan van der Wal, on a possible real scenario with a metal mining customer.

After having completed the “New installation base with MTPRO offering” proposals for all loops a summary (table 20) shall demonstrate the aggregate cost benefit for the key account.

Table 20: Summary sheet Analytical Instrumentation Package (Source: Self-made layout)

Phase 3: Analytical Instrumentation Modernisation

The concept of analytical instrumentation modernisation is, as my own term implies, to modernise the KA’s installation base. The existing installation base consisting of the vast majority of competitor loops as well as MTPRO loops older than six years shall be transitioned to new MTPRO loops within no more than six years. A replacement incentive scheme shall be the driver to get the commitment of the KA to implement this transition.

Figure 19: Instrumentation modernisation (Source: On the basis of Michael Baumbach, Hilti presentation)

In implementing this transition the loop replacement cycle is reduced from the current 12 years to a 6 years period. As stated in figure 19 the incentive for each loop replacement is a credit note for consumables, which are mostly pH sensors. It is based on a 25% trade-in rate of the new loop price. Considering an average loop price of 4000 USD (compare figure 9 in chapter 3.4.1) the credit note would be 1000 USD.

The instrumentation replacement plan will be agreed with the key account. It concerns the prioritisation of the economical value of the loop replacements (table 19 and 20) over a proposed timeframe of less than six years. In addition, we offer a minimum consignment stock for a limited number of housings and transmitters. It is only offered if the key account is prepared to sign a preferred supplier agreement.