Partnership Development Phase Service Innovation

Fernando Tobar - Service Manager, June 05th

© ABB Group July 1, 2013 | Slide 1

© ABB Group July 1, 2013 | Slide 2

Maintenance Contract (LTSA) Definition of Service Agreement

Long Term Service Agreement (LTSA) combining all primary and specialized life cycle and maintenance activities with strong performance focus while covering all project execution phases from ramp-up to normal operation.

Cross-divisional approach with combination of high technology and traditional services in a multi module package adjustable and tailor-made according to customer needs and ABB installed base.

Holistic solution to enhance processing of plant data/information with aim to convert it into knowledge. Asset management and real time process optimization form an integral part of the delivery process.

Creation of an environment of constant awareness to improve the main electrical assets and plant profitability

© ABB Group July 1, 2013 | Slide 3

Maintenance Contract (LTSA) Values and benefits

Our contractual life-cycle and maintenance services are delivered

seamlessly through strategic partnerships with our clients to ensure

all expectations for quality, timeliness, safety are met.

KPI's form the backbone to measure our performance.

In providing unique contractual services we strive to identify

inefficiencies and duplications in manpower and material in order that

the true value of work is justified and practical.

Our success is based on cooperation and creating profitable growth

for our business partners and employees.

© ABB Group July 1, 2013 | Slide 4

Power transformer

MV switchgears

Over head lines

Power factor correction system

Distribution transformer Drive transformer

Motor control center

LV VSD

Control system

LV motor

MV VSD

MV motors

Process plant and infrastructure Field of plant services

HV switchgears

Valves

© ABB Group July 1, 2013 | Slide 5

Distinguished service products in one single agreement The service mix: portfolio

© ABB Group July 1, 2013 | Slide 6

1. Screening

& Viability

2. Pre-feasibility

ECIS budgetary

No-Bind Offer

3. PdP

Partnership

Development

Phase

4. Business

Case-Technical

Proposal

Development

6. Business

Case-Bind Offer

Development

7. Contract

Award & KPI’s

Put in-place

LTSA Long Term Service Agreement Development Process: Main phases and tasks

Approach Material Presentation Ref. Cases Aligning Objective ECIS workshop Model Concept

Basic Scope Plant Information NDA if required Agree on feasibility LoA Authorization

Pre-feasibility Scope line def. OK Basic Proposal def. Contract Model PdP Concept &Plan PdP Budget Cost PdP LoI draft List req. documents Green signal: Go

PdP Preparation: Value proposition PdP Scope Pdp Schedule PdP Cost PdP Deliverables PdP WorkteamPdP Mob/Start-up PdP Progress F-up PdP LoI signature PdP Kick-off

Maintenance

Scope Matrix Structure Org+HC CMMS & PM plan Req’d Resources

. MP

Maint. Plan + KPI’s Shutdown schedule Scope of Services

Resources Int/Ext . Early Maintenance CMMS implement Ramp-up support Tech Proposal OK

Local HR & ABB Support Processes Cost Consolidation Full Cost pre-Calc Draft Price. Check Economical

Proposal draft Legal Issues: T&C Risk Review: OK Bind Offer-Final Tech/Econ Proposal MMMP-Master Plan Offer Handover OK

Offer Negotiation Contract T&C Terms +Conditions KPI’s baseline Contract in-place Implementation Mobilization Start-up Contract & KPI’s

Management Control Actions

LoA PdP LoI Contract

Signature Econ. Offer Tech. Prop

We are entering into this phase of pre-feasibility

Workshop

Gates

PdP = Partnership development Phase

© ABB Group July 1, 2013 | Slide 7

Equipment Selection Commissioning & Start Up Construction Phase Normal Operation Detailed engineering

Maint. Strategy Definition Services

Equipment criticality analysis & Asset Management Services

Equipment Tree & Tagging System Services

Maintenance Documentation and CMMS Implement.

Commissioning Planning & Installation and Commissioning Execution Services

Preventive Maintenance Plan

Project Execution Phase Operation Phase

Competence Development Program – Training Services ABB University

Life Cycle Service Contract including : preventive maintenance activities, remote diagnostics, spare parts management , upgrades and evolution planning, 24 hours support.

Local Development Training Center facility

Life Cycle Management Concept and deliverables

© ABB Group July 1, 2013 | Slide 8

PdP: Scope of technical support to plant ramp-up Early Maint. Engineering and Test & Commissioning main activities

Main Tasks Activities to be performed by EM Team (Early Maint. during pre& commissioning/start-up)

Activities to be performed by T&C Team, (Testing & Commissioning/Start-up).

Service Scope

Contribute, facilitate, follow-up, assist, provide tech. support, information and help solution in case of emergencies, during the commissioning & start-up warranty phase.

Management + execution of T&C/start-up and warranty program. Execute schedule chart, job activities, documentation delivery, test records, final test reports for: pre-commissioning, commissioning, start-up and warranty phases: conditioning, cold run, hot run, idle run, normal & commercial run.

Service Performance

Inspect, evaluate, follow-up the T&C/start-up activities progress and the factory acceptance tests in order to ensure that the assets are performing as contractually specified and according to proper engineering practices

Do the jobs, perform, and execute all T&C tasks: pre-commissioning, commissioning, start-up, warranty and stand-by operation. Check functionality of equipment before energize.

Punch-list Monitoring and ensuring quality completion of punch-list and the clearance of construction pending points. Back-log clearance follow-up

Complete clearance of all pending points, eliminating the possible passive/backlog of construction phase (punch list)

Documentation

To proceed implementation of the Maint. Technical Documentation mgmt. system. Assistance to design reviews documentation “as-built”.

Execution of protocols, procedures and communication of documents revision. Manage the execution of documentation “as-built” by the EPC company. Prepare and fulfill documents, test routines, sequences, check-lists, technical & safety procedures, switch-on process, applied standards, test records, calibration reports, acceptance certificates,

Equipment Reception

Assistance in equipment handover from commissioning

Perform all the final acceptance tests for warranty effectiveness.

Stand-by operation

Work with the operational people for plant technical assistance after start-up

Prepare and supply the work team for stand-by operation, according to contract EPC

EM Team T&C Team

Next Step after Budget estimation: PdP approval

"July 1, 2013 | Slide 9

PdP = Partnership development Phase.

The PdP delivery document is a Complete Bid Offer for the Service Agreement business case, with respective Maintenance Management & Implementation Maintenance Plan and covering

since Pre-Commissioning and Start-up period to 03/05 years normal operation.

RDS (Remote Diagnosis Services)

GMD Services Agreement

Material Handling Service Agreement

SEMA (Smart Electrical

Maintenance Agreement)

© ABB Group July 1, 2013 | Slide 10

Pre-startup services

Spare parts

Site mainte-nance

Remote support

Extension

Repla-cement

Consumables

Logistics and dispatch

Parts kits

Software upgrades

Hardware upgrades

Extensions

Retrofit

Maintenance strategy

SolutionsBank

Data engineering

Training

Parts optimization

Asset optimization

Consulting

Energy and water efficiency

Cyber security Installation and commissioning

Optimi-zation

OPEX team

Predictive maintenance

Asset and reliability

engineering

Maintenance management

system

Design reviews

OHSE and scorecard

Inspections and diagnostics

Remote condition monitoring

Edu-cation

Exchange units

Replacement of active products

Ramp up services

Engineering support

Maintenance master plan

Parts and inventory

management Consulting

Corrective maintenance

Replacement of non active products

Integrity management

Equipment criticality

Commissioning plan

Training development

plan

Maintenance organization

structure

Inventory audit

Smart spares software

Preventive maintenance

Integrity management

Warehousing and repair

Site training facilities

ABB training centers

Blended learning

Learning management

system

Virtual tutorials

Competence assessment

Extended start-up support

Training demo units

Competence matrix

Train-the-trainer

Metrics, KPI’s and ROI

Risk management

Apprenticeships

Certification

Command center

Inventory audit

ServicePort

Process optimization

Smart electrical maintenanceTM Portfolio

© ABB Group July 1, 2013 | Slide 10

• Long Term Service Agreement combining primary and specialized life cycle and maintenance activities with strong performance focus, while covering all project execution phases from ramp-up to normal operation.

• Combination of high technology and traditional services tailor-made according to customer needs. • Co-sourcing arrangement – Work together determine optimal maintenance and optimization approach

July 1, 2013 | Slide 11 © ABB Group

GMD Condition Monitoring Dashboard

Plots are scalable

Multi-page message

panel

Current information on winding

temperature and heat

exchanger

Current information on voltage,

current, power and

speed

Service Infrastructure: Remote-enabled service Apps

Drives OCS Operator Stations Historian Instruments/Actuators

Customer-Defined Access

Service Capabilities

APC Scan/Track Services

Control Tuning Optimization

Services Event

Notification Support Services

Software Support

Remote Troubleshooting

System Health Check

DriveScan/Track LoopScan/Track HoistScan/Track ServicePro

Troubleshooting Services

System Scan/Track

Engineering Stations

Local Remote Secure Access

Customer-Defined Access

Secure Tunnel