SmartPlant Materials Handling

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1 SmartPlant Materials Handling Intergraph Australia September 2008

2 Global Outlook - Commodities Iron Ore Aluminium & Alumina Metallurgical Nickel Coal Thermal Coal Copper Source: Deutsche Bank,Research, (DB), AME Mineral Economics, (AME), ABARE Australian Commodities, March Quarter 2008

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

4 Proof of Concept Project Background / Purpose / Status Problem industry demand and resource supply needs a step change solution Intergraph / SKM / UGL Resources Synergy in industry boom location Best 3Di and integrated technology platform SmartPlant Enterprise; SP3D; SM3D 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

5 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

6 Schedule Standardisation; Workflow; Interfaces; Productivity Current Scenarios Solution Benefits 2D standards & deliverables Standards as a parts & assembly catalogue Time consuming duplication of information Enable repeatability of design with automation Sequential inter-discipline dependencies Multi-discipline concurrent engineering Manual change control across engineering Interactive 3D review improves coord/quality Manual checking Rules & relationships minimise errors Vendor info manually applied Vendor info pre-specified as catalogue handover Delays & holds to downstream interfaces Direct re-use of accurate/timely vendor data Workflow & interfaces create re-work Engineering deliverables nearer to fabrication Increases productivity for equivalent effort Front-end Loaded Workflow Ref. Data Catalogue *Bulk Materials *Conveyor Parts (by Vendor) *Designed Assemblies *Section Libraries *Piping Specs BOM 3Di Model Concept Detail Design Shop Detail BOQ Materials RFQ PO Track Receive Fab Fit for Purpose Deliverables Work packs Service Contracts Construction Completions Handover Assets / O&M

7 Risk Work-share, Tracking, Forecasting, Integration Current Scenarios Solution Benefits Document controlled work-share & interfaces Geographical work-share - common reference data Local resources constrained Skill work-share catalogue re-use workflow Document based planning & progress measurement Better information quality, status control & reporting to support planning & project controls China USA China Australia Work-share Module Planning

8 Cost Optimisation, Re-use, Wastage, Re-work Current Scenarios Solution Benefits 2D intensive workflows limit time & effectiveness of Best resources freed up for 3Di layout design value engineering optimisation & modularisation scenarios Document centric design inhibits information re-use 3Di design with integrated reference data enables information re-use within & across projects Material control disconnected from design Integrated materials control - design to construct Rework through detailing, fabrication & construction results in high contingency Breakdown of Erection Contract Costs 91.3% Initial Contract and Additional Scope Items Industrial Action Wet Weather Quantity confidence promotes supply agreements Integrated workflow and multi-discipline accuracy reduces re-work in fabrication & construction Breakdown of 1.9% Field Alterations 0.53% 0.45% 0.47% Grating Pens & Site Drilling for Cable Trays (Avoidable) Steel Rework Piping Rework 1.9% 2.8% 4.1% Field Alterations 0.40% Case Study Extract Reduced Re-work Other

9 Modularisation Intelligent Multi-discipline Module for Design Re-use

10 Current Scenario Profile & Data Sheet Drawing Solution Conveyor & Parts Catalogue Specification Materials Handling Solution Conveyor Design Workflow

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

12 Proof of Concept Demo

13 Knowledge Management & Re-use Design Operate Consistent need to provide accurate data throughout a project and leverage the knowledge gained and data gathered for future projects. Build Commission

14 Next Steps Pilot Project Benefit to EPC Revenue increase through faster project delivery Establish new work process to lead industry Benefit to Owner Revenue increase through faster product delivery Opportunity to standardize MH systems Data reuse for next project furthering speed to market Data rollover to operations / maintenance systems Beta Product ~Q1 2009, RTM Q3 2009

15 SmartPlant Materials Handling Intergraph Australia September 2008

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