SmartPlant 3D Materials Handling. Taylor D. Cole Vice President, Intergraph Global Metals & Mining Industry

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1 SmartPlant 3D Materials Handling Taylor D. Cole Vice President, Intergraph Global Metals & Mining Industry

2 Global Outlook - Commodities Global Seaborne Iron Ore Global Copper X 2 X Global Aluminum Global Seaborne Coal 2 X 1.3X Source: Rio Tinto May and July Million MT per annum demand forecast.

3 Materials Handling Problem Problem Time to Market Solution: Work-sharing Skilled Resources Production Demand Supply Time to Market Higher Productivity and Quality for Same Hours Re-use of Design Reduce Interfaces and Re-work Supply Chain Efficiency Vendor Integrated Enablers: Technology: Intergraph SmartPlant Enterprise Workflow: Front-end Loaded and Rule Based Standardisation: Intelligent Re-usable Catalogue Leverage: Synergies with Other Industries Benefits: Accuracy: Total Installed Schedule and Cost Optimise: Layout, Pre-assembly, Design Std s Safety: Reviews: Hazop, Constructability, O&M Knowledge: Asset Lifecycle and Re-use

4 Business Values for Change Profit According to a Construction Industry Institute study of 53 major projects, projects which included the most effort on conceptual plant studies averaged: 20% Lower Engineering costs 39% Schedule reduction 15% Plant Utilization/ Capacity increase compared to projects that spent the least effort on conceptual plant design studies as part of pre-project planning. Digital Plant Project Cost/ Breakeven Curve Faster Start up Reduced Capital Spend Traditional Start up Faster Profitability Increased Profit Traditional Project Cost/ Breakeven Curve Time Cost Capital Capital Cost Cost Savings Savings Plant Lifecycle Conceptual Design Detailed Design Fabrication & Construction Commission & Test Plant Hand-over over 80% of a project s s total cost are committed within the first 20% of the total project s s design time 4 Plant Operations & Maintenance

5 Intelligent Design Reduce Time on Task Comparison Microstation Old technology [1980 s] Fantastic change for the time PDS Newer technology Faster design time improvement over Microstation SmartPlant 3D Latest technological advance Data base engineering Significant improvement over PDS in design time Improved integration between disciplines

6 Proof of Concept Project Background / Purpose / Status Problem industry demand and resource supply needs a step change solution Document centric (2D) project delivery compared to Process Industries Proof of Concept initiates the step change Industry requirements specified Solution concepts established and tested Initiated solution configuration and development Concept proved - confidence to continue Pilot project for project readiness objective

7 SmartPlant 3D Materials Handling Benefits for Projects and Assets Knowledge Management and Re-use Schedule Standardisation Workflow Interfaces Productivity Risk Work-share Tracking Forecasting Integration Cost Optimisation Re-use Wastage Rework Safety Reviews Pre-assembly Simulation Education Handover and Asset Lifecycle

8 SmartPlant 3D Materials Handling Conveyor Design Workflow Current Scenario Profile & Data Sheet Drawing Solution Conveyor & Parts Catalogue Specification

9 SmartPlant 3D Materials Handling Chute Catalogue Workflow Current Scenario Chute Arrangement Drawing Solution 3Di Design to Catalogue and Re-use

10 SmartPlant 3D Materials Handling Benefits for Projects and Assets Knowledge Management and Re-use Schedule Standardisation Workflow Interfaces Productivity Risk Work-share Tracking Forecasting Integration Cost Optimisation Re-use Wastage Rework Safety Reviews Pre-assembly Simulation Education Handover and Asset Lifecycle

11 SmartPlant 3D Materials Handling Knowledge Management & Re-use Critical Information Transfer Design Critical Feedback Loop Operate Critical Information Transfer Build Critical Feedback Loop Critical Information Transfer Commission

12 SmartPlant 3D Materials Handling Knowledge Management & Re-use Design SmartPlant Foundation Operate Application Integration Engineering Data Handover Engineering Information Management Build Commission

13 SmartPlant 3D Materials Handling Handover & Asset Lifecycle By establishing a holistic strategy for plant asset lifecycle management, Owner Operators can manage their assets for short and long term profitability rather than the traditional sweat the assets strategies Measurable Value Expedited Commissioning & Startup (2-3% of TIC) - through expedited commissioning & start-up resulting from as-built data validation, transformation & loading into operating systems Minimized Plant As-Built Verification (1-2% of TIC annually) - through auditable plant asset information management of change Reduced Production Loss ( % of revenue annually) through elimination of unplanned outages as a result of decisions based upon inadequate / incomplete plant data Increased Turnaround Intervals (20% annually) Through application of reliability in design and asset performance management principals

14 SmartPlant Enterprise Financial Benefits Base Scenario Savings / Revenue Improvement w/ SPE CAPEX Savings: -15% - Initial and Depreciation OPEX Savings: -3% annually Revenue Increase: +2.0% annually and 7 to 10% earlier project completion (approximately +20% revenue increase in Y1 on a three year CAPEX project life). Base W/ SPE Change Sales (Revenue) 1,000 1, % Less: Operating Cost Depreciation % -15% Operating Profit %

15 SmartPlant 3D Materials Handling Next Steps Pilot Project Australia Q BETA Version Q1 / Q Commercial Version SmartPlant 3D v9 Release

16 Materials Handling Solution Questions? Taylor D. Cole Vice President, Intergraph Global Metals and Mining

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