Process Power Marine Smart Plant Process Safety

Process, Power & Marine Smart. Plant Process Safety Ray Howarth 21 -22 August 2008 Hilton Opera Hotel Hanoi, Vietnam

Operating the Plant Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design Integrate ALL Information. . . DESIGN & PROCESS Create the SMART PLANT of the Future … 19 March 2018 – 2 –

Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design §FALCONEER Listens … §Cuts through information overload §“It’s not WHAT you know, it’s WHEN you know it!” WHAT WHEN “The process always tells on itself. ” BASF Sr. Staff Engineer. 19 March 2018 – 3 –

Smart Plant of the Future - NOW Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design § The Virtual Engineer in the Smart Process § The Right Information Automatically Provided at the Right Time § Cost Savings, Increased Production § Improved Daily Workflow § Better, More Timely Decision-Making § Enhanced Safety § BENEFITS & ROI § FALCONEER™ IV - SPPID § FALCONEER™IV Process Performance Solution - Making Plants Smarter, Safer & More Profitable by Design § Smart. Plant Enterprise Bundle for O/O § Smart. Plant Enterprise (SPO) for O/O § Smart Link from Control Systems to SAP 19 March 2018 – 4 –

The Drivers/Challenges Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design § Support of Plant Strategy § Production, quality, safety, resource utilization § Reduce Operational Risks such as: § Production interruption § Regulatory compliance § Safety Incidents § Knowledgeable Workforce SMART PLANT PERFECT PLANT INTELLIGENT PLANT of the FUTURE § Reduce Engineering Costs such as: § Turnaround/Outage Planning & Execution § Preventative Maintenance Planning & Execution § Inspections § Reduce operational overhead cost (contractors / own staff) § How to retain knowledge § How to regain knowledge

Design Validation & Operational Risk Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design § Operation at Capacity § Instrumentation Calibration § Safety Systems § ISO Systems § Environmental Systems 19 March 2018 – 6 –

What is FALCONEER™ THE VIRTUAL ENGINEER The Right Information Automatically Provided at the Right Time! § Process Performance Auditing & Advising Software § Real-time § Process Information Management § Fundamental Engineering Modelsbased § Patented-Pending Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design

How Does FALCONEER™ IV Work? Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design DIGITAL DASHBOARD • KPI CONTROL SYSTEM IS WORKING • CHARTS • REPORTS • EMAILS • Flow • Temperature • Pressure OK OR PROBLEMS THE MFG PROCESS • Level §System Auditing §Point Auditing SHOULD WORK Process Design and Operation Information 19 March 2018 §ADVICE – 8 –

Improved Daily Workflow & Information Management Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design §at • CHECK OPERATIONS • CONTROL ROOM • SPREADSHEETS • OPERATION NORMAL • PROJECT WORK • REPORTS • DCS TOOLS • MEETINGS • INTERRUPTIONS • PROCESS PROBLEMS • PROBLEMS? • IMMEDIATE ACTION • PROCESS OPPORTUNITIES • ADDITIONAL • WHAT HAPPENED SINCE YESTERDAY? RESOURCES REQUIRED • LONGER TERM PLAN • INVESTIGATE • FORM TEAM • GATHER INFO • ANALYZE INFO • IDENTIFY CAUSE • ID CAUSE • DEVELOP SOLUTIONS • CREATE PROJECT • IMPLEMENT SOLUTION • FORM TEAM • DOCUMENT • DEVELOP PLAN • PSM • ISO • MOC 19 March 2018 • PREPARE FOR TOMORROW – 9 –

REAL BENEFITS!! Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design The real value of right information at the right time! A former Foxboro manager appreciates our approach as: “being rigorous enough to identify the problems without being too complex or expensive, combined with being easy enough to configure and maintain. ” “Compared to other approaches, FALCONEER is more fundamental with easily configurable and understandable equations and logic”, according to FMC Global Industry Benchmarks (BASF, FMC, PPG, Taiwan, India) § Prevented unscheduled shutdown saving >$200, 000 per day § Improved Power Generation Revenue >$200, 000 per year § $30, 000 Savings with One Alert on Steam System § Steam Reconciliation Savings of $50, 000 in 6 months § Raw Material Savings of >$40, 000 per Quarter § Energy Savings Opportunities § > $70, 000 per Month w/ Natural Gas § > $100, 000 per year Pumps & Blowers

Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design REAL BENEFITS!! The real value of right information at the right time! Savings per Cost Low (cents / of Production High Global Industry Benchmarks $) (cents / $) Operating Costs Reduction 0. 1 2. 0 Maintenance Costs Reduction 0. 1 0. 5 Improved Efficiencies 0. 3 1. 0 0. 1 1. 6 1. 0 2. 0 0. 5 6. 0 (BASF, FMC, PPG, Taiwan, India) § Prevented unscheduled shutdown saving >$200, 000 per day § Improved Power Generation Revenue >$200, 000 per year § $30, 000 Savings with One Alert on Steam System § Steam Reconciliation Savings of $50, 000 in 6 months § Raw Material Savings of >$40, 000 per Quarter § Energy Savings Opportunities Addl Product Sales Reduced Energy Usage OVERALL ANNUAL COST SAVINGS POTENTIAL % UNIT COST Improvement 1. 6% 6. 0% + IMPROVED SAFETY § > $70, 000 per Month w/ Natural Gas § > $100, 000 per year Pumps & Blowers

Process, Power & Marine

OO Bundle Solution Components Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design Engineering tasks that made up the solution: § Smart. Plant P&ID § Rule and asset based intelligent P&ID solution § Smart. Plant Process Safety § Knowledgebase HAZOP analysis solution § Smart. Plant Isometrics (formerly I-Sketch) § Specification driven Isometric solution § FALCONEER Process Performance § Validation, Abnormal Condition Detection & Optimization Functionality Out-of-the-Box capabilities Flexibility to be configured to meet specific user demands 19 March 2018 – 13 –

Design to Operations Business Cases § Add Monitoring System for Compliance § Automating HAZOP Process § Correcting Equipment Performance §Support Systems • PID • Equipment Spec • Instrument Specs • Predictive / Preventive Maintenance • Simulations • Excel • Pilot Study Reports • SOPS 19 March 2018 – 14 – Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design

Correcting Performance Equipment or Process Unit Underperforming Data Consolidation §Specifications §Controls ID Problem & Root Cause §Piping Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design §DCS §Historian §Other Existing Intelligent P&ID’s Develop Solution §Engineering Models 1) Design Modification §Spreadsheets, 2) Process Change §Simulations Validate Solution § Safety Real-Time Performance §check Implement Monitoring & Auditing Project Maintain & Optimize Improved or Design Performance 19 March 2018 §DCS §Historian – 15 –

ROI – Correcting Performance § Cost savings § Cost of the solution for 3 users $95 k (incl. training and few days of consultancy) § ROI with the first year of projects $113, 540 - $95, 000= $18, 540 plus Cost Avoidance or Opportunity Cost Savings ranging in the hundreds to thousands of dollars per hour that problem persists unrecognized 19 March 2018 Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design Task Today Smart Plant Problem Analysis & ID 16 $1, 600 2 $200 As-built 40 $2, 400 10 $600 Safety Check 100 $6, 000 40 $2, 400 Process Validation 125 $7, 500 35 $2, 100 Update design 80 $4, 800 40 $2, 400 Commissioning 24 $1, 440 12 $720 Update documentation 25 $1, 500 10 $600 Savings $25, 240 $9, 020 *based on estimates Savings Workflow cases per year – 16 – $16, 220 7 $113, 540

Business Case – Correcting Performance Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design Benefits § Virtual Engineer - Analyze process performance § Maintain Safe Conditions § § § § § Operational Risk Management Abnormal Condition Detection & Reporting Fault & Failure Detection & Reporting Validation of Safety Critical Instrumentation Provide recommendations to improve output Ensure design consistency Provide consistent P&ID updates Safety checks on the modifications Ensure P&ID, process data, Isometrics and safety are all consistent and verified. 19 March 2018 – 17 –

ROI Recap on 3 Business Cases § Automating HAZOP Process § Add Monitoring System for Compliance § Correcting Equipment Performance Total ROI Less Cost Total ROI 1 st Year of Projects Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design 168, 000 $139, 500 113, 540 $421, 040 95, 000 $326, 040 Plus Cost Avoidance or Opportunity Cost Savings ranging in the hundreds to thousands of dollars per hour that problems persist unrecognized 19 March 2018 –

FALCONEER Case Studies Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design A former Foxboro manager appreciates our approach as “being rigorous enough to identify the problems without being too complex or expensive, combined with being easy enough to configure and maintain. ” Water & Waste Water • Utilities ChemicalPetrochemical • Chemicals • Solid Oxidizer Plant • Energy • EO Plant • Polymerization Plants Power Generation • Incinerators • Co-Generation • Pipelines (Oil & Gas) • Boiler Systems • Salt Plant Pulp & Paper • Pulp Mill 19 March 2018 – 19 –

CUSTOMER WANTS… $$$ Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design • Process Information (Asset) Management • Real-Time Smart Link for Process Data to SAP to SP Enterprise to User • Automated Process Performance Auditing & Advising • Leveraging Design Information with Process Information SAP USER Smart. Plant Enterprise

Smart Plant of the Future - NOW Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design § FALCONEER Business Package Delivers § Smart Link from Control System to SAP & Intergraph Enterprise § Mass & Energy Balance Engine for optimizing energy utilization, costs, production § Monitor, Report, Trend key performance indicators (KPI) and metrics in real time § Energy & Raw Material Use & Cost § Instrumentation & Equipment Condition § Production Capacity & Utilization § Receive proactive notifications of under-performing assets before they impact the bottom line § Capture, retain & use aging workforce knowledge base REDUCED OPERATIONAL RISK ENSURING OPERATIONS PER DESIGN! 19 March 2018 – 21 –

Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design INTERGRAPH 2008 Q&A Presenter: Dr. Doug Lenz www. falconeertech. com 19 March 2018 – 22 –

Making Plants FALCONEER Process Performance Solution. Profitable. Smarter, Safer & More Process, Power & Marine By Design Models Are the Key § Material Balances § Energy Balances § Performance Equations § Soft Sensor Models § Six Sigma Transfer Functions § Heuristics § Empirical Equations / Correlations § Multivariate Statistical Models § PCA Models 19 March 2018 – 23 –

Method Of Minimal Evidence Example Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design Primary Models (Mass and Energy Balances) PM 1 = 0 = Flow 1 + Flow 2 – Flow 3 – Leaks PM 2 = 0 = Flow 1 * cp * Temperature 1 + Flow 2 * cp * Temperature 2 – Flow 3 * cp * Temperature 3 – Leaks * cp * Temperatures Secondary Model (Eliminates Flow 1) SM 1 = 0 = Flow 2 * cp * (Temp 2 – Temp 1) – Flow 3 * cp * (Temp 3 – Temp 1) 19 March 2018 – 24 –

Making Plants Smarter, Safer & Process, Power & Marine Virtual Statistical Process Control (V-SPC)More Profitable By Design § Controlled Process Variable § Virtual EWMA Chart § Flow meter § Controlled Process Variable § Flow Meter § Failure - 12 Hours before TDC Alarm Indication 19 March 2018 – 25 –

Why Can’t our DCS / SCADA do this? Making Plants Smarter, Safer & Process, Power & Marine More Profitable By Design § DCS/SCADA monitors individual points only – FALCONEER monitors entire process and interactions between points as well § Patent Pending Method and System § Adds “wisdom” or intelligence to the raw information. § Automatic model & rule generation for enhanced cross-checking § High Level Auditing & Advising § Accounts for ALL Information from Process § More than just Individual High/Low Alarm Limits and Trending § Statistical-based and Model-based Trending § Real-time Continuous vs. Manual or Scheduled § Proactive and Preemptive versus After-The-Fact § WHAT & WHEN & WHY § Certain Functions Possible (SPC, KPI, HART) § Requires Significantly More Time, Effort, Long-Term Support to Configure & Maintain § Older systems may not even be possible 19 March 2018 – 26 –

Process, Power & Marine Smart. Plant Process Safety Ray Howarth 21 -22 August 2008 Hilton Opera Hotel Hanoi, Vietnam