Operational Efficiency Based on

Innovative Automation, Industry

Expertise, Engineering and Service

Sergey Mishin

Solutions & Services Department Director

Eastern Europe, PhD, PMP

Successful projects require planning and bottom line value

maximization across key involved parties at early phases

2

Main Automation Contractor (MAC) optimizes instruments, valves, systems together with technology &

construction for all processes. Automation functionality is crucial for project & operational excellence

Independent Project Analysis (IPA), Inc., Industry Metrics, September 2015

Actual project schedule and cost per each $1B of initial budget

Automation have to be flexible both for construction and for operational changes

3Innovative automation saves cost and accommodates technology changes & additional needs

3

• Early engagement results in:

– Lower total installed costs,

– Reduction in project schedules,

– More predictable performanceto the project plan.

• By leveraging:

– Early design collaboration (FEED),

– Transformational automation,

– Lean project execution best practices,

– Standardization and modularization,

– Information management,

– Industry expertise.

Example: control and safety systems electronic marshaling:

SmartJunction Box

Fiber / Ethernet Twisted Pair

1 Cabinet w.

controllers

* Based on 18,000 I/O points plant

• 95% reduction of cables*, trays

• No marshaling cabinets

• All input/output types

Automated docume-

ntation and software

configuration

All parties with same

project processes,

templates & tools

Unified off-the-

shelf control &

safety cabinets

Safety

Production Efficiency

20-40 years of operational efficiency is the most important result of a

project. Improvement from industry average to top quartile performers

4% higher availability

Half the

maintenance

costs

3X fewer

recordablesand process

incidents

20% lower operating costs

Reliability

Energy & Emissions

Process

Incidents

4th 1stQuartiles

Utilization

4th 1stQuartiles

Energy Use

CO2 Emissions

4th 1stQuartiles

Availability

Maintenance

4th 1stQuartiles

30% lower emissions

30% less energy use

Operating Costs

Recordables

Sources: Refining and Petrochemical Benchmarks,

API, Solomon, OSHA, IHS Markit and Company Reports

10% higher utilization rate

4

Reliability example: top quartile performers spend several times less for maintenance

and repair than bottom quartile but have maximum assets availability

5

Automation reorganizes operation and service due to on-line diagnostic of performance, health,

energy moving industrial facilities towards the first quartiles in safety, efficiency, reliability

Main

tenance C

ost

($M

per

$1B

assets

)

First QuartileSecond QuartileThird QuartileFourth Quartile

Mechanic

al A

vaila

bility

Index

Based on Solomon Associates LLC Reliability and Maintenance Study 2013

0

100

200

300

400

6

7

8

9

10

Business profitability

correlates with on-

line diagnostic

MechanicalAvailability

MaintenanceCost

A typical facility will spend less than 10% of its time in transient operations but 50% of all safety incidents occur during this time.

- Chemical Processing.

As much as 43% of unplanned downtime is caused by equipmentfailures which can be predicted by on-line monitoring & diagnostic.- Large Property Damage Losses in the

Hydrocarbon-Chemical Industries.

Average costs to repair a failed asset is 50% more than if the problem had been addressed prior to failure.- U.S. National Response Center

Assets with vibration diagnostic, %

Preferably wireless non-intrusive and multi-parameters sensors

minimizing process intervention using magnetic or clamp holders

6

Easy to deploy flexible on-line diagnostic for thousands of assets to prevent manual inspection,

reduce safety incidents, increase efficiency, predict failures, minimize production losses etc.

P,T,L,F

Leaks

VibrationTemp

CorrosionErosion

Process analytics

• Safety

• Performance

• Health

• Energy

Health

100%

0%

Failure time

On premise asset management platform for entire plant or company

7

Flexible, scalable, open architecture on-line production diagnostic system is a must to achieve

top quartile safety, efficiency, reliability both for the existing facilities and for a new construction

Alerts

Reliability Safety

CSI 2140

Ovation Orange

• CSI 6599 Classic• CSI 6500 ATG

Energy efficiency

Production quality, plan, cost

Maintenance

& repair

• New sensors can be connected directly

through industrial wireless which is key

for new & existing facilities

• Conventional control and safety

systems are just one of data sourcesLocal PI

server or

cloud

platform

• Mobile workers &

remote experts

• Service providers,

assets producers staff

Team responsible for each case actions

Detailed alert info,recommended and taken actions

Easy to configure personnel collaboration based on real-time production KPIs

Asset Explorer

Composite KPIs calculated hierarchically

Roles and names of the personnel

responsible for the alert type

Relevant alerts collapsed into conversations for each area of responsibility

8

On-line models alerting about deviations for

collaborative proactive actions increasing KPIs

9

Performance advisorHealth advisor Energy advisor

• Production plans vs. results

• KPIs (productivity, quality, cost etc.) linked with process efficiency, equipment health etc.

• On-line financial impact of production KPIs deviations

• Degradation trends combined with process conditions & KPIs

• Degradation sources, critical fault & shutdown predictions

• Maintenance & repair planning, lifecycle history per assets

• All types of fuels, generation, distribution and consumption

• Electric, steam, water, heat etc.

• Heaters, boilers, pumps, turbines, heat exchangers etc.

• Empirical energy norms and deviation costs on-line

Company-wide real-time KPIs (hierarchy from assets to units, plants) linked with responsible personnel9

White Box Models

Thermodynamic 1st principles models

based on process & equipment expertise

Black Box Models

Statistic models, neural networks

Unsupervised machine learning

1 day downstream performance meeting with middle-management.

Unit by unit automaton state of art, opportunities with investments and benefits

10

The outcome is automation program prioritized by ROI, budget constraints, legislation (incl. safety) etc.10

Key managers

Operations

Mechanic equipment

Energy

Maintenance

Health & Safety

Environment

Automation

Emerson team

Industry expert leads team

involved based on preliminarily

agreed relevant agenda

Example of priority solutions for particular process problems, installed assets etc.:

Payback p

eriod,

month

sH

ealth &

safe

ty

driven s

olu

tions

Required investments

Gas & liquids

emission

monitoring, SIL3

safety loops

Gas and liquid

leakages detection,

people tracking,

training simulators

Fire, explosive

and poisonous

gases monitoring,

HAZOP consulting

On-line products

quality analysis,

valves diagnostic,

mobile workers

Pumps,

compressors,

turbines vibration

diagnostic

Heat exchangers,

fired heaters,

air coolers

monitoring

Multi-fuels boilers

optimizing control,

turbomachinery

antisurge control

Energy consump-

tion, corrosion,

water quality

monitoring

Advanced control,

loops tuning, steam

collectors, relief

valves monitoring

Customer success

Initial project objectives Solution

• Criticality and risk assessment

• Revaluation of maintenance work

processes together with

diagnostics technologies

• Rotating equipment mechanical

availability increase

• Change management and reliability

work culture training

Middle East: large refinery has increased reliability and reduced costs

$6.57M/yearDOWNTIME LOST

PROFIT

90%reduction

MECHANICAL

AVAILABILITY

2%increase

$1.3M/yearROTATING EQUIPMENT

MAINTENANCE COST

9%reduction

COMPRESSORS

PRODUCTIVITY

INCREASE LEADS

TO $0.85M EXPENSE

AVOIDANCE

20%increase

0.35% increase mechanical availability

$7.3M/yearavoid lost profit

$0.6M/yearreduce rotating equipmentmaintenance costs

Quantified business results

11

Customer success

Solution: energy measurement,

tracking and reporting

• 100 new energy measurements

• Wireless including long distances

• Central data historian connected to

multiple control platforms

• Cost allocation to separate

responsible departments

• Identification of energy waste

North America: large complex has cut water and energy consumption

$1.7MInvestment

$6M1st year return

Water use

13%reduction

Total energy use

38%reduction

1st year

25%reduction

50%reduction

4 years

cumulative

Project objectives: reduce

water and energy

consumption. Problems:

• Corporate and community

pressure to reduce consumption

and emission

• Many large process units

distributed over 5 square miles

• Multiple control platforms

• Many years of “free” energy

consumption culture

12

Quantified business results: from 4th to

1st quartile energy performance

Chelyabinsk factory achieves world best quality, fast delivery, production localization

13

Emerson started localization in 2004 since Metran acquisitionNow up to 80% of the equipment for automation projects is made in Russia 13

Pressure Temperature

Level Analytic and control systemsFlow

Control and on-off valves

Russia & CIS industry experts, projects, engineering, service, R&D

14Emerson turnkey automation for O&G, Chemistry & Petrochemistry, Power, Metal & Mining

14

Offices

Service centers

Production, Research &

Development (R&D)

Chelyabinsk

Siberia and Far East

Ural

North-West

Volga

Kazakhstan

Ukraine

Belorussia

Central

South

St. Petersburg

Kiev

Baku

Atyrau

Almaty

Moscow

Khabarovsk

Yuzhno-Sakhalinsk

38 regional offices

15 service centers

1500 employees

Sergey Mishin

Solutions & Services Department Director

Eastern Europe, PhD, PMP

Questions & Answers

Operational Efficiency Based on

Innovative Automation, Industry

Expertise, Engineering and Service