RAM MODELING AND ANALYSIS

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1 Reliability, Availability and Maintainability (RAM) modelling and Analysis Summary Along with the glowing size of facilities (i.e. facility s capacity) and greater demand from the product users on the reliability of product delivery, the effects of unexpected interruptions of facility operation are becoming more and more serious for facility owners. Reliability, Availability and Maintainability (RAM) analysis identifies constituent elements (i.e. equipment) of facilities whose failure affects the facility availability, performing quantitative reliability analysis. Through this service, FMRIMS proposes effective countermeasures associated with those constituent elements in terms of reliability and maintainability in order to improve the system availability. FMRIMS RAM analysis can be successfully implemented to identify potential opportunities in processes and operations for increasing plant production and integrity. Features: Identifying single points of failure Reliability culture Calculating equipment reliabilities Evaluating complex redundant configurations Establishing equipment functional relationships Allowing summarization of all factors affecting system reliability Those benefits can include: Reducing maintenance and sparing costs while maintaining and/or increasing production levels. Optimizing capital investment for reducing the cost of production. A decrease in the duration of unplanned and planned outages. Alignment of maintenance resources based on the criticality of equipment to production revenue. Accurate forecasts of equipment lifecycle costs that reflect equipment age, duty cycle, and maintenance effectiveness. 1 P age Norcan Reliability Engineering Propriatory Do Not Copy

2 Optimization of capital improvement options at the plant and enterprise levels when improvement budgets are constrained The results of RAM analysis provide effective information that is particularly useful in improving the facility plans. The weak points of facilities can be identified objectively and quantitatively, providing a basis for making well-targeted suggestions to enhance availability of the facilities. Through the use of dedicated software tools for RAM analysis, it becomes possible to analyze large-scale facilities. Failure rate and other past experience from the client can be reflected in the analysis to provide a more realistic assessment. Services 1. Consultation to conduct analysis 2 P age Norcan Reliability Engineering Propriatory Do Not Copy

3 FMRIMS proposes appropriate indices, analysis methods and procedures and then conducts analysis to assess the availability of the facilities you are planning. 2. Implementation of analysis An expert experienced in reliability analysis conducts the analysis. The target values for availability, analysis conditions, analysis method and reliability data, i.e. failure rate are confirmed with the clients beforehand. After finalizing the analysis approach, FMRIMS's reliability analysis expert configures the analysis model and conducts the analysis. Based on the analysis results, FMRIMS makes proposals concerning the facility configuration and maintenance measures to enhance the system availability 3. Compilation of analysis results FMRIMS will prepare an analysis report describing the facility outline, analysis conditions, failure rate data, analysis results and recommendations. Norcan Reliability Engineering Proprietary 3 Extensive experience 3 P age Norcan Reliability Engineering Propriatory Do Not Copy

4 FMRIMS has experiences in RAM analysis for petrochemical plants, fertilizer plants and energy-related plants. Examples of analysis Target values for availability The target value for availability (96%, for example) is set. Computation method The RAM Analysis is computed using MAROS or equivalent. Modeling Reliability block diagrams are prepared based on the design intentions of the facilities, the configuration of the facilities, the operation mode, equipment capacities and effects of each constituent equipment failure on the entire facility. The reliability block diagram shows the equipment that makes up the facility in blocks, and connects them either serially or in parallel. When the facility is operational, the right-most edge is reached from the leftmost edge via any of the routes. On the other hand, when any of the equipment has failed, the connection is broken at that point. The rightmost edge cannot be reached and the facility is shown to be not operational. 4 P age Norcan Reliability Engineering Propriatory Do Not Copy

5 RAM MODELING AND ANALYSIS Norcan Reliability Engineering Proprietary 4 Descriptions of the activities that can be included in the RAM Program. RAM Targets - Develop project RAM goals. Typical goals should include run lengths between T/A's, catalyst changes and their 5 Page Norcan Reliability Engineering Propriatory Do Not Copy

6 respective duration. Availability including slowdowns. Maintenance cost targets for both T/A and Routine. A hurdle rate should be included for incremental investment to improve either reliability or maintenance costs. Critical Equipment and Systems Identification - Identify those systems and/or equipment that have a high impact on reliability, maintainability, operability or life cycle cost and require special attention during design and detailed engineering. Define the specific actions that are to be undertaken to resolve the RAM concerns. Equipment and System Specific RAM Goals - Assign either minimum reliability performance requirements or maintenance cost objectives to certain key pieces of equipment or systems that are critical to achieve the overall RAM objectives. The equipment and systems should be identified as RAM critical. Equipment Test Strategy - For critical or unique equipment, define the testing, outside of the normal requirements, that should be performed to confirm reliability and operability, i.e. special shop or field testing. Use equipment specialists to identify unique equipment that may require special testing and identify test requirements. Reliability Assessments - Conduct ongoing reviews at critical points in planning, design and detailed engineering to ensure the reliability and maintenance goals are being met; challenge the design from various viewpoints -- operability, human factors, maintainability, etc. Evaluate the engineering contractor s RAM program. Identify mandatory and cost effective facilities that would improve process unit startup, shutdown, and reliability. Maintainability and Turnaround Reviews - Periodically conduct reviews and/or workshops with plant process and mechanical personnel to identify possible facilities and features that ease routine and turnaround maintenance. Also evaluate possible design changes that would improve turnaround effectiveness (reduce turnaround duration or increase run time). 6 P age Norcan Reliability Engineering Propriatory Do Not Copy

7 Equipment Strategy/Plan - Prepare for each equipment item an equipment plan/strategy which defines the maintenance tasks and mitigation steps needed to preclude potential failure modes and possible degradation mechanisms RAM Performance Compliance - Estimate overall maintenance cost (routine and turnaround), reliability performance, and resource requirements and compare to the RAM goals in the Project Philosophy. Use the equipment plans/strategies, modeling results, life cycle cost analyses and experience with similar units to estimate performance, maintenance cost and resource requirements. Integrating Total Life Cycle Costs - Initiate a process to systematically evaluate investment costs against future operating costs (maintenance) and business costs (unreliability). 7 P age Norcan Reliability Engineering Propriatory Do Not Copy