Driving Operating Performance across the Enterprise from a Foundation of Production Data Lars Wallstén Head of Operations Performance Systems Linde AG

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1 Driving Operating Performance across the Enterprise from a Foundation of Production Data Lars Wallstén Head of Operations Performance Systems Linde AG European Conference Unlocking Your Operations Potential November 9-10, Düsseldorf, Germany

2 MESA Alignment The following Strategic Initiatives of MESA International are associated with this presentation: Real-Time Enterprise

3 Presentation Summary Title: Linde AG: Driving Operating Performance across the Enterprise from a Foundation of Production Data Abstract: The Linde Group of Munich, Germany is a world-leading gases and engineering company 48,000 employees and over 350 plants in approximately 100 countries. Focused on expansion of its international business, with forward-looking gases applications and plant construction Inherited legacy manufacturing systems from multiple vendors from multiple acquisitions While each part of the business was satisfied with the solutions they had installed and were resistant to significant change, the company s management realized the need to build a standard foundation of production data upon which to standardize operating practices, production reporting and information flow across their enterprise ultimately improving operational performance and decreasing energy costs. Join this discussion to learn how Linde s management and plant teams and their Operations teams and IS worked together to scope their true needs, define the requirements of their Plant Line Information Management System and evaluate systems and solutions providers. Also learn why they see harnessing production data as a foundational element for surviving today and thriving tomorrow. Speaker: Lars Wallstén, head of Performance Systems, Linde AG

Lars Wallstén Head of Performance Systems Personal Born 9th of October 1965 Family - Wife and three children Career path 19 years in Linde 2001 leading ROC technical development 2006 head

4 Lars Wallstén Head of Performance Systems Personal Born 9th of October 1965 Family - Wife and three children Career path 19 years in Linde 2001 leading ROC technical development 2006 head of Ecovar production 2007 head of Performance Systems Accomplishments ROC Projects Developed ROC solutions EIGA Unmanned Operations guideline Global Production Plants Database Global Historian

5 Agenda Linde Group & Global Operations Background to Linde Global Historian The Historian Infrastructure The Historian Functions

6 Financial highlights The Linde Group (in million) 2009 Sales 11,211 Operating profit 2,385 EBIT before amortisation of fair value 1,460 adjustments and non-recurring items Earnings after taxes on income 653 Number of employees 47,731

Global Operations - Overview 2010 100 Countries 5,500 Operations Personnel 3,800 Mil.

7 Global Operations - Overview Countries 5,500 Operations Personnel 3,800 Mil. /a Operating Costs 300 ASUs 70 HyCO plants 1,000 Ecovar plants 130 CO2 plants 2 Helium plants

8 Situation 2 years ago Situation > 4 different vendors of historians in place with variable quality of installation and supportability Many of our plants are not connected to any historian It would be extremely difficult and expensive to implement a global template in all these existing systems and then support them going forward

9 Hard Benefits Benefit Description +5 Process Reviews More efficient plant review programs Termination of Licenses Reduction of applications not used anymore Cost Avoidance -100 Local servers

10 What we wanted Visibility Local Operator and Linde Board view the same information Processes Defined and common Processes for all regions so that all work in the same way

11 What we wanted Performance Score card for Performance indicators for Safety, People, Reliability and Efficiency in the same tool facilitating follow up and root cause analysis Structure Every plant connected to data historian no matter what size. Data that is not available from the control system will be manually entered Possibility for future interfacing to EAM and ERP systems and Safety reporting Store data for the lifetime of the plants

12 The data we needed Plant Data Analogue values Digital values Calculated values Events Alarms and alarm logs Operator actions elog Process events (quality, process safety) limits Targets On-line, Daily, weekly and monthly targets

13 The data we needed Conclusion No Historian Supplier used in Linde could deliver our requirements in one tool

14 Alternatives Either we buy one software for elog, one for alarm history, one for trending etc.. Or We select an open environment where we can incorporate all functions and try to get our supplier to bring in our functions by time

15 Pros and Cons with alt 1 Elog Trending KPI reporting Events Pros Very good features in every software Works well for a few plants Cons Complex Interfacing Same config in all software (e.g what is a plant) more admin Higher cost

16 Pros and Cons with alt 2 Elog Trending KPI reporting Events Common communication layer Pros Enough features Works well for a many plants Interfacing defined Least admin and higher quality output Lowest total cost Cons Higher development cost Difficult to get all cool features

17 Experiences & Difficulties It is difficult to evaluate vendors and compare them with such a big scope like ours. There are pros and cons with all vendors For Linde it boiled down to flexibility, cost and willingness from the vendor to develop functionality with us

18 High level Timeline 2008 The year of Vendor selection The years of Implementation 2011 The year of change Project will end with 350 plants connected

19 The Historian Architecture

20 Experiences & Difficulties Support Operational Environment not known by our own IS organisation -> driving a a change For Operations it is a big change to have such an important function in a central environment and not locally at the plant

21 Manual Data Entry There are many variants for Manual entry In one example in Australia a normal PDA is used to enter the data

Press New Trend The Simple PDF shows the main setup of the plant In one Display it is possible to see

22 The Simple Process Flow Diagram (Simple PFD) The Show Tag names displays the tag names. The Historical button Toggles between Actual and Historical values Right click on a value to get a menu Press New Trend The Simple PDF shows the main setup of the plant In one Display it is possible to see the main equipment and what type of plant it is The Mimics are built up according to the Linde common configuration standard

23 Trending Data from plants in North America in a very good trend tool

24 Global Tags an important success factor Linde has defined Global tags Ex. instead of calculating spec power as FIC3201+if( FIC3202 >50; FIC3202 ;0)/UA9301 We use :(GOX1S3+GOX2S3)/PlantPower This makes it possible to define calculation rules in one place and to be able to accumulate e.g GOX Production for Germany

25 Intro to reporting So know we have history data (in an automated way and manually input and rules for calculations Now we can create a report with Production Volumes and some simple KPIs such as Spec powers

26 Production Reporting Score Card On-line The Score Card Production is a standardised template that will replace old excel files. There is a Rolling, Daily, Weekly, Monthly and Yearly tab With the Global tag approach a large number of local excel sheets will be replaced

27 WEB reports are generated for customers outside Operations WEB reports

28 Operators actions and KPI COD, Reliability.. Operators are supervising our plants and it is important to historise all actions taken that can influence the performance This is also the background to be able to calculate Cost of Down time, Reliability and Availability. The operator must categorise the events used in the KPIs An Elog is needed that tracks operators Actions and Events

29 E-log and Events E-log Elog is ROC and Local Operator Actions that make sense to make visible

30 E-log and Events Events Events are main changes or disturbances in the plant. They are configured in the Historian and a new Event occurs when the state of the Historian tags is changed The events pops-up automatically in the list

31 Alarm log and analysis The alarm and alarm analysis section is gathering alarms from the plants and is storing the alarms for the life time of the plant

32 The Global Time Line Set to synchronize. Both Trends,SPFD, elog and alarm share the same end time. The trends have also the same start and span time.

33 The Wall Management Reporting The presentation step Utilise the plant data that we have transformed into plant information and display it in a management form

34 The Wall Objectives Local Operator and Linde board looks at the same data in the same way Management reporting should be visualised in an environment easy accessible The Wall should have common look & feel for all regions, platforms and plant types The Wall should generate common processes and understanding for reporting

35 The global Wall The buttons in the left margin is divided into each strategy areas The buttons in the top to the right is guiding into each major platform The speedometers are showing current yearly accumuted results compared to budgeted values

36 The global Wall The cirlces (ASU) and the squares (HYCO) is growing by each event larger than 100 k Click on a circle and..

37 The Exception Process Each event has an estimated gap value in euros A local and global responsible person is nominated to ensure priority to the event

38 Accumulated Reporting All production is visualised in standardised templates. In this case GAN production for a region

39 Plant Performance All Safety, People, Relilability and Efficiency KPIs are recalculated to a monetary value to give a feeling for the overall performance

40 Thank You Thank you very much and I m looking forward to discuss similar solutions and problems with you all Lars Wallstén Head of Operations Performance Systems Linde AG

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