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Achieving Operational Excellence

March, 2006

The World Has Gone DIGITAL!

Copyright Emerson Process Management, March 2006, Slide 2

Law Of Accelerating Returns


Analysis shows that Technological change is exponential

Copyright Emerson Process Management, March 2006, Slide 3

Storage is free: $65 My old PC

Disposable printers?

We Have To Serve Both Greenfield and Brownfield Customers


World Area O&G Refining Pharma Chemical Power W&W

NA LA W Europe E Europe ME Africa AP

Greenfield 34%

Expansion / Modernization 66%


Copyright Emerson Process Management, March 2006, Slide 5

Shell - Our Vision

Use the newest technology to create the Plant of the Future Concentrate on safety and environmental concerns System must be robust

Focus on cost Low life cycle cost


Manpower training Must be easy to operate and maintain

Obsolesce resistance must be based on industry standard software norms

Copyright Emerson Process Management, March 2006, Slide 6

The Technology Universe


.NET
AVALON Smart Objects

W-bluetooth Energy Scavenging DSPs Security S99 GPRS

Artificial Intelligence Ultrasonic AES

Motes Predictive Algorithms MEMS

Scaleable Graphics - Avalon

.NET
GPS Foundation Fieldbus PAT

Parallel computing Vista UML RSS OPC UA

Model Base Programming

Enhanced EDDL
Advanced Signal Processing FireFox

SOA

802.15.4 MP3

Process Diagnostics HART

XML

Moores Law
Fuel Cells Security

Bit Torrent OPML


Copyright Emerson Process Management, March 2006, Slide 7

802.11 (beyond G) Skype

Operational Excellence
Higher sustained production with minimize costs Faster time-to profit Longer duration to scheduled outage

Profit

time

Cost

Fewer unscheduled outages Safer operation


Copyright Emerson Process Management, March 2006, Slide 8

Shorter scheduled outage

Tire icon indicates low pressure

Smart cars monitor tire pressure

Car advises driver of abnormal situation made possible via disruptive technologies
Copyright Emerson Process Management, March 2006, Slide 9

Smart Car Messages Seat belt Cargo door open Passenger door open Wiper fluid low Turn signal on Right rear tire pressure low Change engine oil Fuel low

Messages I do not get Check engine Big red oil light


Copyright Emerson Process Management, March 2006, Slide 10

Two requirements: - Sensing technology - Presentation to user at the right time


Copyright Emerson Process Management, March 2006, Slide 11

Sequence Of Events
Early warning

Change Oil Light

Car Performance

Oil Pressure Alarm

Major Performance Impact

Safety incident

time
Copyright Emerson Process Management, March 2006, Slide 12

We Help Our Customers Deploy Smart Digital Plants

Copyright Emerson Process Management, March 2006, Slide 13

Smart Plant Architecture


SAFETY
SMART ASSET OPTIMIZATION SMART DIGITAL CONTROL

SMART ANALYTICAL

SMART MACHINERY HEALTH MANAGEMENT

SMART SAFETY

SMART MEASUREMENT

SMART FINAL CONTROL

Copyright Emerson Process Management, March 2006, Slide 14

Todays Smart Field Devices Predict Abnormal Situations

On-board computing power enables step changes in functionality

Often have more than one process variable for a single pipe intrusion
Full with diagnostics
health of device is known health of the application is monitored health of the process is monitored

At 12:45 tomorrow, this valve will fail

Copyright Emerson Process Management, March 2006, Slide 15

Intelligent Devices Report Health


Early warning

Plant Performance

Device alert Device failure Process Impact

Safety Incident

time
Copyright Emerson Process Management, March 2006, Slide 16

Smart Plant Architecture


SAFETY SMART ASSET OPTIMIZATION SMART DIGITAL CONTROL

SMART ANALYTICAL

SMART MACHINERY HEALTH MANAGEMENT

SMART SAFETY

SMART MEASUREMENT

SMART FINAL CONTROL

Copyright Emerson Process Management, March 2006, Slide 17

Smart Predictive Alerts


Pressure Transmitter Example

Sensor failure

Copyright Emerson Process Management, March 2006, Slide 18

Smart Predictive Alerts


Pressure Transmitter Example

Process problem

Copyright Emerson Process Management, March 2006, Slide 19

Smart Predictive Alerts


Valve Example

Valve is performing sub-optimally

Copyright Emerson Process Management, March 2006, Slide 20

Smart Predictive Alerts


Valve Example

Valve needs maintenance

Copyright Emerson Process Management, March 2006, Slide 21

Smart Predictive Alerts


Compressor Protection Example

Compressor needs maintenance

Copyright Emerson Process Management, March 2006, Slide 22

10 Year Old Plants Do Not Have Predictive Capabilities

Process view is fuzzy

Process view clear

Copyright Emerson Process Management, March 2006, Slide 23

A Real Case Of Not Seeing What Is Happening

The explosion was caused by flammable hydrocarbon liquid continuously being pumped into a process vessel that, due to a valve malfunction, had its outlet closed.

A control valve being shut when the control system indicated it was open.

Copyright Emerson Process Management, March 2006, Slide 24

Should All These Alarms Go To The Operator?


SAFETY SMART ASSET OPTIMIZATION SMART DIGITAL CONTROL

?
SMART ANALYTICAL SMART MACHINERY HEALTH MANAGEMENT SMART SAFETY

SMART MEASUREMENT

SMART FINAL CONTROL

Copyright Emerson Process Management, March 2006, Slide 25

Alarms To Operator?
Example shown: NO
Time For Action > 6 months

Device Performance

Early alarm to MAINTENANCE only as there is a long time before process impact.

Impellor Imbalance Motor Overheating

Process Impact

time

Copyright Emerson Process Management, March 2006, Slide 26

Alarms To Operator?
Example shown: NO (long time before failure)

Device Performance

Valve frozen open in utilities plant

Time For Action > 1 year Early alarm to MAINTENANCE only as there is long time before process impact

Process impact

time

Copyright Emerson Process Management, March 2006, Slide 27

Failure of a Critical Valve Column Impacts The Process Immediately

Device Performance

Valve frozen open in distillation column


Time For Action < 30 minutes

Early alarm to MAINTENANCE and OPERATOR as action is required immediately to prevent process problems

Process impact

time

Copyright Emerson Process Management, March 2006, Slide 28

Plants Must Have An Alarm Message Map Alarm Destination Map


Operator Maintenance Safety Personnel
Cost of Ignoring Alarm

Maintenance Optimization Personnel Safety Personnel

High Priority Operator

Medium Priority Maintenance Optimization Personnel History Collection Low Priority

Medium Priority

Time To Avoid Process/Safety Impact


Copyright Emerson Process Management, March 2006, Slide 29

The Importance Of Alarm Handling

In the last 11 minutes before explosion, the operators had to recognize, acknowledge and act on 276 alarms

Milford Haven was 25x the recommended maximum

Copyright Emerson Process Management, March 2006, Slide 30

Alarm Messaging Map


SAFETY SMART ASSET OPTIMIZATION SMART DIGITAL CONTROL

Asset Health

Degraded Safety SMART Alarms


ANALYTICAL

SMART MACHINERY HEALTH MANAGEMENT

SMART Predictive Abnormal SAFETY Situation Alarms

SMART MEASUREMENT

SMART FINAL CONTROL

Copyright Emerson Process Management, March 2006, Slide 31

All Critical Alarms To Operator


(Regardless of whether a device or controller created them)
SAFETY SMART ASSET OPTIMIZATION SMART DIGITAL CONTROL

OPERATOR INTERFACE

SMART ANALYTICAL

SMART MACHINERY HEALTH MANAGEMENT

SMART SAFETY

SMART MEASUREMENT

SMART FINAL CONTROL

Copyright Emerson Process Management, March 2006, Slide 32

Operator Interface

Alert The Operator Before Process Impact


PT-101
Copyright Emerson Process Management, March 2006, Slide 33

All Asset Alarms To Maintenance


SAFETY SMART ASSET OPTIMIZATION SMART DIGITAL CONTROL

ASSET INTERFACE

SMART ANALYTICAL

SMART MACHINERY HEALTH MANAGEMENT

SMART SAFETY

SMART MEASUREMENT

SMART FINAL CONTROL

Copyright Emerson Process Management, March 2006, Slide 34

Maintenance / Reliability Dashboard

Copyright Emerson Process Management, March 2006, Slide 35

All Safety Alarms To Safety Personnel


SAFETY SMART ASSET OPTIMIZATION SMART DIGITAL CONTROL

Degraded Safety SMART Alarms


ANALYTICAL

SMART MACHINERY HEALTH MANAGEMENT

SMART SAFETY

SMART MEASUREMENT

SMART FINAL CONTROL

Copyright Emerson Process Management, March 2006, Slide 36

Safety Personnel Are Roaming


Cell phone, pager, email Detailed Summary

Copyright Emerson Process Management, March 2006, Slide 37

Best Practices For Operator Alarms EEMUA 191 Benchmarks


Plant Alarms
Average Alarm rate (over 10 minutes) Alarms after plant upset (over 10 minutes) Average number of standing alarms Average number of shelved alarms

#
1 10 10 30

Configured Alarm Priority Mix


Critical alarms High Alarms Medium Alarms Low Alarms
Milford Haven was 25x the recommended maximum
Copyright Emerson Process Management, March 2006, Slide 38

#
< 1% 5% 15% 80%

Exceed EEMUA guidelines

Alarm Analysis Dashboard

Copyright Emerson Process Management, March 2006, Slide 39

In A Smart Plant, Does The Number Of Alarms To the Operator Increase? No


Best practices are established in the design of the alarm system
EEMUA

Alarm Map

Early warning alarms properly acted on may actually decrease the incoming alarms as process alarms may be avoided

Copyright Emerson Process Management, March 2006, Slide 40

Poor Health Delivers Unsatisfactory Results At 200 kph !!!

Copyright Emerson Process Management, March 2006, Slide 41

Expect Poor Performance In Plants With Poor Asset Health


Mercury Filled Transmitters & Switches Disconnected Damper Drive Leaking Valve Body

Poor Equipment Results in Poor Performance and Unsafe Plants


Copyright Emerson Process Management, March 2006, Slide 42

Expect Poor Performance In Plants With Poor Asset Health


Advanced Control Dashboard

Poorly performing control is identified

Copyright Emerson Process Management, March 2006, Slide 43

Expect Poor Performance In Plants With Poor Asset Health


Enterprise Integration: Validated Data (Inventory, Loss, etc) Is transmitted to SAP Asset alerts are transmitted to SAP for scheduling

Integrating Transactions is Easy Reversing them (on bad data) is very difficult

Scheduling Online Optimization Advanced Process Control (APC) Soft Sensors, Model Based Supervision PIMS, PIMS interfaces DCS, Basic Automation Field Level, Instrumentation

Copyright Emerson Process Management, March 2006, Slide 44

Some Smart Plant Builders


Shell- Deer Park,Tx** $32M*(vs. HW)- FCCU, Hydrocracker Petrobras Brazil(3)** $17M(displaced Bailey)- Coker, Blending, Crude Pemex- Tula $3M(displaced HW)- Alkylation Unit Shell Motiva Norco $17M*(displaced HW)- Reformers(2), DHT, NHT, SMR, HC Pdvsa, Curacao** $5M*(displaced Foxboro)- SRU(4), H2 Plant, Hydrocracker MOL PLC, Hungary $10M*(vs. YEW, HW)- Diesel Hydrotreater, Sulfur Plant Rompetrol(Romania) $20M(Modernization)- Entire Refinery BP SECCO $30M(vs. YEW)- Ethylene Complex Cenex, Montana $1.5M(vs. Moore)- Desulfurization Scanraff, Lysekil $1M(vs HW)- Merox, Propylene, FCCU*** Yukos, Odessa $2M(vs HW, YEW)- Isomerization, Reformer
*-MAC Scope of supply **- Facility in operation ***- Portion of FCCU

-64 Refineries with PlantWeb last 30 months, over 500 PlantWeb installations in Refining -Process units: FCCU, Hydrotreaters(Diesel and Naphtha), SRU, H2 Plant, SMR, Alkylation Units, Crude Unit, Vacuum Unit, Asphalt unit, Delayed Coker, Hydrocracker, Reformer

Shell Deer Park Revamp 2003

Copyright Emerson Process Management, March 2006, Slide 46

Our Vision Shell Deer Park

Use the newest technology to create the Refinery of the Future Concentrate on safety and environmental concerns System must be robust

Focus on cost Low life cycle cost


Manpower training Must be easy to operate and maintain

Obsolesce resistance must be based on industry standard software norms

Copyright Emerson Process Management, March 2006, Slide 47

Shell Deer Park Refining Company Deer Park Refining Limited Partnership

Control Room

BEFORE

AFTER

Copyright Emerson Process Management, March 2006, Slide 48

Shell Deer Park Refining Company Deer Park Refining Limited Partnership

Cabinet

BEFORE

AFTER

Copyright Emerson Process Management, March 2006, Slide 49

Shell Deer Park Refining Company Deer Park Refining Limited Partnership

Field Junction

BEFORE

AFTER

Copyright Emerson Process Management, March 2006, Slide 50

Shell Deer Park Refining Company Deer Park Refining Limited Partnership

Control Valve Diagnostics


ValveLink diagnostics prior to cutover found a hidden problem. This valve has not been in automatic for years!

Roger Erfurdt, Deer Park Control Systems manager, has stated that getting this loop to run in automatic has paid for the entire investment in diagnostics.

Copyright Emerson Process Management, March 2006, Slide 51

Results Delivered

Operational Excellence
Safety: No OSHAs Environmental: No Incidents State of the art operating interfaces

Financial
1% maintenance cost reduction achieved (3%+ is believed possible) Overall 1-3% utilization improvement Improved unit reliability Greatly improved maintenance effectiveness Huge project savings by reutilizing previous engineering

Copyright Emerson Process Management, March 2006, Slide 52

BARRIERS To Operational Excellence

Overly aggressive focus on CAPEX

The technology change is the easiest


In plant visionaries are necessary and hard to find Management support is critical The human resistance to change is greater than you think

Copyright Emerson Process Management, March 2006, Slide 53

Satellite Service Providers Know Tire Pressure

What use is there for the oldfashioned tire gauge?


Copyright Emerson Process Management, March 2006, Slide 54

Change Or Be Changed

There are two kinds of organizations in today's world:


those that are changing those that are going out of business
Jim Clemmer http://www.clemmer.net

Similarly, there are also two kinds of people


Those who are changing Those who are setting themselves up to be victims of change

Copyright Emerson Process Management, March 2006, Slide 55

Cannot Be Done Without Technology Cannot Be Done With Technology Alone


Copyright Emerson Process Management, March 2006, Slide 56

Technology And Experience Deliver Performance


Copyright Emerson Process Management, March 2006, Slide 57

Copyright Emerson Process Management, March 2006, Slide 58

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