Emerson iops Overview

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Emerson iops Overview Achieving Operational Excellence through an Integrated Onshore Operation Command Center Vincent Esmenjaud Group Leader Information Networks Strategic Services Europe

Productivity paradox for the process industries Retiring Workforce Inexperienced Workers Larger, More Complex Processes Fewer Specialists More Technology Fewer Incoming Workers, Slide 2 27-Jun-01, Slide 2

4D Operations People want to work where they live not live where they work Dull Dirty Dangerous Distant, Slide 3 27-Jun-01, Slide 3

Definitions Integrated Operations - the integration of people, organizations, work processes and information technology to make smarter decisions. It is enabled by global access to real-time information, collaborative technology and integration of multiple expertise across disciplines, organizations and geographical locations. www.iocenter.no Operational Excellence - when each and every employee can see the flow of value to the customer, and fix that flow when it breaks down. Operational Excellence: Defined www.industryweek.com, Slide 4 27-Jun-01, Slide 4

Integrated Operations in Oil & Gas Integrated Operations i-value fieldofthefuture tm i-field, Slide 5 27-Jun-01, Slide 5

Operating Centers Historically, practice has been build plant, add operating personnel Geographically disperse facilities have been run and Monitored remotely for some time Oil and gas, especially offshore Mining Enterprise with Multiple Owners As technology has advanced, these have expanded into multi discipline production control centers, Slide 6 27-Jun-01, Slide 6

Change Drivers of the Control Center Creating the need for iops Business decisions driven across the Enterprise, Slide 7 27-Jun-01, Slide 7 How does my work affect the bottom line? Dashboards to Visualize Targets vs. Actuals Maintenance and Asset Management Best practices Work Orders open, Duration of Work Orders Open Maintenance KPI s and Predictive analytics Increase Production Analytics -Measure, Quantify, Analyze Optimize production Fixed costs vs. Variable costs Increase Operational Excellence in Operations measure, analyze, best practices Safety Measure the risk to the process real-time Maximize personnel safety with KPI s

Integrated Operations The Big Picture Adopting Integrated Operations = Business Transformation: Requires motivation, vision and strategic intent Spans all aspects of business operations Fundamentally linked to culture and business model, imperatives & trajectory. No one model fits all culturally sensitive. You can t just order one from your favorite supplier., Slide 8 27-Jun-01, Slide 8 Source: www.stepchangeglobal.com

Foundational Elements Shared Situational Awareness Building Confidence Building Understanding Building Trust Common understanding What is happening How to respond Real-time working Shared mental model Synchronized working, Slide 9 27-Jun-01, Slide 9 Source: www.stepchangeglobal.com

Foundational Elements Integrated Operations Center A physical manifestation of the iops concept Purpose built collaborative environments Constructed in accordance with time slice model & synchronized way of working. The iops Center is not where you go to solve a problem It s where you already are, working and collaborating, Slide 10 27-Jun-01, Slide 10 Source: www.stepchangeglobal.com

Integrated Operations Trends Relocate for Returns Reduce operating cost Concentrate expertise Improve access to talent Co- locate for Collaboration Improved collaboration Faster and better decisions Physically or virtually Align for Agility Shared KPI objectives drive collaboration Organizational boundaries dissolve Faster response to new opportunities, Slide 11 27-Jun-01, Slide 11

Pervasive Sensing Strategic Interpretation Coordinated Workflows Aspects of Integrated Operations Business Value Business Operations Commodities trading Operational Risk Management Production Accounting Business metrics Production Planning Planning & scheduling Mass balance / yields Logistics Can we decide what needs to happen next? Can we control our destiny? Collaboration Across disciplines Across business units Across companies - remote SMEs/services Training / certification Reliability / Maintenance Centralized Maintenance Field Operators/maintainers Asset performance metrics Can we make it reliably? Can we harness the power of our people? Better Execution & Smarter Decisions Business Value Operations Remote Process Monitoring Remote Process Control Event response Operations metrics Can we make product?, Slide 12 27-Jun-01, Slide 12

Aspects of Integrated Operations Business Operations Commodities trading Operational Risk Management Production Accounting Business metrics Production Planning Planning & scheduling Mass balance / yields Logistics Collaboration Across disciplines Across business units Across companies - remote SMEs/services Training / certification Reliability / Maintenance Centralized Maintenance Field Operators/maintainers Asset performance metrics Better Execution & Smarter Decisions Operations Remote Process Monitoring Remote Process Control Event response Operations metrics, Slide 13 27-Jun-01, Slide 13

Operations Asset Management Risk Analysis Asset Strategy Definition Safety Strategy Definition Asset / Safety System Health Monitoring Integrated Information Local / Network Search Event monitoring / data collection Inventory / Material Movement Management Document Access / Mgmt Production Optimization Field Management Integrated MPC Event-Based Electronic Workflow Sequences Business & Production KPI s Production Reports Integrated Business Intelligence Business Activity Monitoring, Slide 14 27-Jun-01, Slide 14 Certification & Self- Services Training Requirements / Status Self Certification Mobile Worker Operator Rounds Manual Data Collection Maintenance / Safety Task Execution Personnel Tracking Safety Mustering Process Control Integrated UI Local system / remote system control Alarm Management Operations Logbook

Aspects of Integrated Operations Business Operations Commodities trading Operational Risk Management Production Accounting Business metrics Production Planning Planning & scheduling Mass balance / yields Logistics Collaboration Across disciplines Across business units Across companies - remote SMEs/services Training / certification Reliability / Maintenance Centralized Maintenance Field Operators/maintainers Asset performance metrics Better Execution & Smarter Decisions Operations Remote Process Monitoring Remote Process Control Event response Operations metrics, Slide 15 27-Jun-01, Slide 15

Reliability / Maintenance Technology and Service Solutions, Slide 16 27-Jun-01, Slide 16

Aspects of Integrated Operations Business Operations Commodities trading Operational Risk Management Production Accounting Business metrics Production Planning Planning & scheduling Mass balance / yields Logistics Collaboration Across disciplines Across business units Across companies - remote SMEs/services Training / certification Reliability / Maintenance Centralized Maintenance Field Operators/maintainers Asset performance metrics Better Execution & Smarter Decisions Operations Remote Process Monitoring Remote Process Control Event response Operations metrics, Slide 17 27-Jun-01, Slide 17

Collaboration A new way of working Global Company Experts Regional Centre Asset Support Centre External Experts, Slide 18 27-Jun-01, Slide 18 Vendors & Partners

Role based KPI s and Analytics VP Operations Operations Director Maintenance Director Instrument and Electrical Manager Dashboards and Reports Assess and mitigate risk to safety, environmental, and production targets Maximize throughput / Optimize cost in the plant Maximize asset ROI Dashboards and Reports Mitigate risk of assets causing downtime Optimize maintenance strategies and procedures Optimize Maintenance Spending Manage maintenance work through the CMMS Analytical Tools and Reports Identify bad actors Mitigate risk of instruments and valves causing downtime Optimize maintenance with confidence o Extend calibration intervals o Reduce Valve PMs, Slide 19 27-Jun-01, Slide 19 Reliability Manager Analytical Tools and Reports Identify bad actors Mitigate risk of assets causing downtime Optimize maintenance with confidence o Extend PM intervals o Reduce inspections 19

Aspects of Integrated Operations Business Operations Commodities trading Operational Risk Management Production Accounting Business metrics Production Planning Planning & scheduling Mass balance / yields Logistics Collaboration Across disciplines Across business units Across companies - remote SMEs/services Training / certification Reliability / Maintenance Centralized Maintenance Field Operators/maintainers Asset performance metrics Better Execution & Smarter Decisions Operations Remote Process Monitoring Remote Process Control Event response Operations metrics, Slide 20 27-Jun-01, Slide 20

Production Planning Effectively Manage Your Inventory and Assets, Slide 21 27-Jun-01, Slide 21 Tank Farm Movements Volume & Correction Calculations Trending & Alarming Inventory Accounting Blending Batch Start/Stop Marine and Pipeline Movements Movement planning & scheduling Path selection Equipment reservation & conflict detection Automatic movement execution Movement accounting ERP Interface Truck/Rail Loading Truck gantry entry/exit gates Stand-alone Presets Load authorization Document printing ERP Interface

Aspects of Integrated Operations Business Operations Commodities trading Operational Risk Management Production Accounting Business metrics Production Planning Planning & scheduling Mass balance / yields Logistics Collaboration Across disciplines Across business units Across companies - remote SMEs/services Training / certification Reliability / Maintenance Centralized Maintenance Field Operators/maintainers Asset performance metrics Better Execution & Smarter Decisions Operations Remote Process Monitoring Remote Process Control Event response Operations metrics, Slide 22 27-Jun-01, Slide 22

Analytics & Dashboards Improving data-driven decisions Can I trust the data? Did we save it? Can I find it? Can I make sense of it? Can I share it? Can we make use of it?, Slide 23 27-Jun-01, Slide 23

Operational Knowledge Decision Support Modeling & Analytics Strategic Analytics Predictive Analytics What do we WANT to happen? Prescriptive Analytics What will happen? Descriptive Analytics Why did it happen? What just happened? Operational Impact, Slide 24 27-Jun-01, Slide 24

Business KPI s - Detailed Field Costs, Slide 25 27-Jun-01, Slide 25

Integrated Operations Technical and Functional Architecture ISA95 view, Slide 26 27-Jun-01, Slide 26

DeltaV Integrated Control System Architecture by Design Enterprise Resource Planning ERP System WAN Network Production System OPC Database Server Plantwide Historian Server Clients Plant Wide Network Process Automation System AMS Server Operator Station(s) Maintenance & Engineering Station DeltaV Control Network Field Equipment Emergency Shutdown System HART Fieldbus Process and Machinery I/O, Slide 27 27-Jun-01, Slide 27 Truck/railcar loading/unloading Marine loading/unloading Pipeline Receipts/transfers Pump and valve control/ Interlocking/Safeguarding

iops, which attributes are best for my business? What goes here? What does this workspace look like? Balance people, process, and technology Do I need to connect my applications digitally?, Slide 28 27-Jun-01, Slide 28 How do our people interact? How much of our work processes should we automate?

The Emerson iops Command Center Where We Learn by Doing, Slide 29 27-Jun-01, Slide 29

Emerson iops Centers where we learn by doing Collaboration & Solution Center, Houston Mining iops Center Santiago, Chile University of Texas Pilot Facilities Austin, TX Remote SMEs iops Field Device Skid Fisher Innovation Center Marshalltown, IA, Slide 30 27-Jun-01, Slide 30 Emerson Innovation Center Round Rock, TX Coming soon: Aberdeen, Scotland!

New Emerson Aberdeen Facility North Sea Service Centre Integrated Operations Centre, Slide 31 27-Jun-01, Slide 31 Remote diagnostics Decision support Engineering and Operational support services Site response, Start up, Commissioning, Maintenance & Turnaround Application support Education services Formal classroom based training Hands on training Spares management & Repair Parts management Quick Ship & Repair Fisher Approved Service Partner (FASP) support Essential Asset Management Asset Performance Condition based monitoring & system health Total metering management Metrology consulting Calibration & Validation

Porsgrunn iops (summer 2015) New collaborative environment for Remote diagnostics Condition Monitoring of Rotating Equipment, Slide 32 27-Jun-01, Slide 32

Problems Detected and Resolved at UT Separations Lab Blower on separation tower boiler instrumented with wireless vibration sensors High vibration signature detected boiler steam pressure swinging Missing balancing weight off blower wheel Bad Ethernet connections and low air supply to valve were also identified, Slide 33 27-Jun-01, Slide 33

Operations, Maintenance Major European Oil Company Remote operation of the Solan oil field in the North Sea Not permanently manned to minimize personnel exposure to major accident hazards Maintenance 5-6 days per month Full remote diagnostics and remote operations First oil expected 2014, Slide 34 27-Jun-01, Slide 34

Delivering Integrated Operations Solutions Emerson Consulting Services Emerson is committed to delivering results to our customers by finding value and untapped opportunities in their plants to meet their business objectives Automation Expertise Industry Knowledge Leading Technologies Problem Solving Discovers and delivers value, not technology! Lays the groundwork for implementing best practices in automation Provides a roadmap for companies to more efficiently achieve business objectives Gains organizational consensus Solidify Metrics and KPI s, Slide 35 27-Jun-01, Slide 35

Engagement Roles Emerson Roles: Visioning Consultant Industry Experts Solution and Application Experts Financial Analyst Customer Roles: Executive Sponsor Process Expert Operations & Maintenance Project Operations HSSE & Quality Key Management Personnel, Slide 36 27-Jun-01, Slide 36

Emerson s Approach You know your operations and business today How you achieve Best-in-Class Integrated Operations I Know my Business iops Visioning Do you have the right solutions? I know my Applications What s your Operations Philosophy? I know my Process Units What s your Maintenance Philosophy? I know my Personnel What s your Production Philosophy? I know my Operations Do you have the right skill sets?, Slide 37 27-Jun-01, Slide 37 Operational Excellence

Steering Committee Model iops Consultant StepChange Global AV Consultant AVI-SPL Architectural Firm Fox Architects Control Room Design Knurr M A C Emerson Owner Project Mgt Operations Reliability HSE IT Other Contributor(s) Displays / Collaboration tools Networking Telecom IT / software Construction manager - - invited as needed by phase, Slide 38 27-Jun-01, Slide 38

Project Responsibility Assignments 1. iops Consulting - IO Visioning, Program/Pilot Development, Management of Change (Emerson, StepChange Global, WiPro) 2. Technology Readiness Assessment - (LBP, Emerson) 3. IO Center Design (Fox Architects) 4. Facility Infrastructure Telecoms requirements/design (Comtech, IP Assurance) Building and field networks (Cisco) Audio/Video/Lighting/Acoustics - (BARCO, AVI SPL) Process Control Systems (LBP, Emerson) 5. Applications Technology Suite Process historian integration (OSI) Alarm/Events management (Exida) Data Reconciliation (OSI SigmaFine) Analytics / Dashboards (C3Global) Big Data (SEEQ) Work Flow, Electronic logbooks, SOP s, Document management, Inventory & logistics Emerson Syncade Asset reliability MHM, EAM, AMS suite, MRG * (Technology or Service Partners in blue), Slide 39 27-Jun-01, Slide 39

Summary OPERATIONAL EXCELLENCE via INTEGRATED OPERATIONS, Slide 40 27-Jun-01, Slide 40

Thank you Our global customer knowledge sharing event and technology exhibition. 300+ papers and work shops. 27-Jun-01, Slide 41