1. SmartPlant Process Safety
Ray Howarth
21-22 August 2008
Hilton Opera Hotel
Hanoi, Vietnam

2. Integrate ALL Information ... Create the SMART PLANT of the Future …
Making Plants Smarter, Safer & More Profitable By Design
Operating the Plant
Integrate ALL Information ...
DESIGN & PROCESS
Create the SMART PLANT of the Future …
March 25, 2017
– 2 – 2

3. “The process always tells on itself.” BASF Sr. Staff Engineer.
Making Plants Smarter, Safer & More Profitable By Design
FALCONEER Listens …
Cuts through information overload
“It’s not WHAT you know, it’s WHEN you know it!”
“The process always tells on itself.”
    BASF Sr. Staff Engineer.
March 25, 2017
– 3 – 3

4. Smart Plant of the Future - NOW
Making Plants Smarter, Safer & More Profitable By Design
Smart Plant of the Future - NOW
The Virtual Engineer in the Smart Process
The Right Information Automatically Provided at the Right Time
Cost Savings, Increased Production
Improved Daily Workflow
Better, More Timely Decision-Making
Enhanced Safety
BENEFITS & ROI
FALCONEER™ IV - SPPID
FALCONEER™IV Process Performance Solution - Making Plants Smarter, Safer & More Profitable by Design
SmartPlant Enterprise Bundle for O/O
SmartPlant Enterprise (SPO) for O/O
Smart Link from Control Systems to SAP
Discuss SV & FA Technology & Solution
Provide History of the Development of One Solution
Emphasize How It Addresses and Overcomes the Challenges
March 25, 2017
– 4 – 4

5. The Drivers/Challenges
Making Plants Smarter, Safer & More Profitable By Design
The Drivers/Challenges
Support of Plant Strategy
Production, quality, safety, resource utilization
Reduce Operational Risks such as:
Production interruption
Regulatory compliance
Safety Incidents
Knowledgeable Workforce
Reduce Engineering Costs such as:
Turnaround/Outage Planning & Execution
Preventative Maintenance Planning & Execution
Inspections
Reduce operational overhead cost (contractors / own staff)
How to retain knowledge
How to regain knowledge
SMART PLANT
PERFECT PLANT
INTELLIGENT PLANT
of the FUTURE 5

6. Design Validation & Operational Risk
Making Plants Smarter, Safer & More Profitable By Design
Design Validation & Operational Risk
Operation at Design
Operation at Capacity
Instrumentation Calibration
Safety Systems
ISO Systems
Environmental Systems
March 25, 2017
– 6 – 6

7. THE VIRTUAL ENGINEER What is FALCONEER™
Making Plants Smarter, Safer & More Profitable By Design
What is FALCONEER™
THE VIRTUAL ENGINEER
The Right Information Automatically Provided at the Right Time!
Process Performance Auditing & Advising Software
Real-time
Process Information Management
Fundamental Engineering Models- based
Patented-Pending 7

8. How Does FALCONEER™ IV Work?
Making Plants Smarter, Safer & More Profitable By Design
How Does FALCONEER™ IV Work?
DIGITAL DASHBOARD
KPI
CHARTS
REPORTS S IS
WORKING
CONTROL SYSTEM
Flow
Temperature
Pressure
Level
ADVICE
OK OR PROBLEMS
THE MFG PROCESS
System Auditing
Point Auditing
TAKES DATA => COMPARES WITH EXPECTED OPERATION => ADVISES
Based on Models of Normal Plant Operation and Normal Operating Data Evaluated Continuously in Real-time
Concurrently Determines:
Process State (Idle, Start-up, Normal, Shut-down)
If Models Close (Validation) or Not (Fault Detection);
If Measurements & Conditions In Control or Not (SPC)
Automatically Creates and Evaluates Rules of Fault Hypothesis (Method of Minimal Evidence -patent pending)
Reports Validation, Fault Analysis Diagnosis & SPC Results
MODELS ARE THE KEY
Material Balances
Energy Balances
Performance Equations
Soft Sensor Models
Six Sigma Transfer Functions
Heuristics
Empirical Equations / Correlations
Multivariate Statistical Models
PCA Models
SHOULD
WORK
Process Design and Operation Information
March 25, 2017
– 8 – 8

9. Improved Daily Workflow & Information Management
Making Plants Smarter, Safer & More Profitable By Design at
CHECK OPERATIONS
CONTROL ROOM
SPREADSHEETS
DCS TOOLS
OPERATION NORMAL
PROJECT WORK
REPORTS
MEETINGS
INTERRUPTIONS
PROCESS PROBLEMS
PROCESS OPPORTUNITIES
PROBLEMS?
IMMEDIATE ACTION
ADDITIONAL RESOURCES REQUIRED
WHAT HAPPENED SINCE YESTERDAY?
LONGER TERM PLAN
FORM TEAM
GATHER INFO
ANALYZE INFO
ID CAUSE
DEVELOP SOLUTIONS
CREATE PROJECT
INVESTIGATE
GATHER INFO
ANALYZE INFO
IDENTIFY CAUSE
DEVELOP SOLUTIONS
IMPLEMENT SOLUTION
FORM TEAM
DEVELOP PLAN
DOCUMENT
PSM
ISO
MOC
PREPARE FOR TOMORROW
March 25, 2017
– 9 – 9

10. Global Industry Benchmarks
Making Plants Smarter, Safer & More Profitable By Design
REAL BENEFITS!!
The real value of right information at the right time!
A former Foxboro manager appreciates our approach as: “being rigorous enough to identify the problems without being too complex or expensive, combined with being easy enough to configure and maintain.”
Global Industry Benchmarks
(BASF, FMC, PPG, Taiwan, India)
Prevented unscheduled shutdown saving >$200,000 per day
Improved Power Generation Revenue >$200,000 per year
$30,000 Savings with One Alert on Steam System
Steam Reconciliation Savings of $50,000 in 6 months
Raw Material Savings of >$40,000 per Quarter
Energy Savings Opportunities
> $70,000 per Month w/ Natural Gas
> $100,000 per year Pumps & Blowers
“Compared to other approaches, FALCONEER is more fundamental with easily configurable and understandable equations and logic”, according to FMC 10

11. Global Industry Benchmarks
Making Plants Smarter, Safer & More Profitable By Design
REAL BENEFITS!!
The real value of right information at the right time!
Savings per Cost of Production
Low
(cents / $)
High
Operating Costs Reduction
0.1
2.0
Maintenance Costs Reduction
0.5
Improved Efficiencies
0.3
1.0
Addl Product Sales
Reduced Energy Usage
OVERALL ANNUAL COST SAVINGS POTENTIAL
1.6
6.0
% UNIT COST Improvement
1.6%
6.0%
Global Industry Benchmarks
(BASF, FMC, PPG, Taiwan, India)
Prevented unscheduled shutdown saving >$200,000 per day
Improved Power Generation Revenue >$200,000 per year
$30,000 Savings with One Alert on Steam System
Steam Reconciliation Savings of $50,000 in 6 months
Raw Material Savings of >$40,000 per Quarter
Energy Savings Opportunities
> $70,000 per Month w/ Natural Gas
> $100,000 per year Pumps & Blowers
+ IMPROVED SAFETY 11

12. 12

13. OO Bundle Solution Components
Making Plants Smarter, Safer & More Profitable By Design
OO Bundle Solution Components
Engineering tasks that made up the solution:
SmartPlant P&ID
Rule and asset based intelligent P&ID solution
SmartPlant Process Safety
Knowledgebase HAZOP analysis solution
SmartPlant Isometrics (formerly I-Sketch)
Specification driven Isometric solution
FALCONEER Process Performance
Validation, Abnormal Condition Detection & Optimization
Functionality Out-of-the-Box capabilities
Flexibility to be configured to meet specific user demands
The solution components we will be discussing include SmartPlant P&ID, SmartPlant Process Safety, SmartPlant I-Sketch and FALCONEER Process Performance Solution.
March 25, 2017
– 13 – 13

14. Design to Operations Business Cases
Making Plants Smarter, Safer & More Profitable By Design
Design to Operations Business Cases
Add Monitoring System for Compliance
Automating HAZOP Process
Correcting Equipment Performance
Support Systems
PID
Equipment Spec
Instrument Specs
Predictive / Preventive Maintenance
Simulations
Excel
Pilot Study Reports
SOPS
March 25, 2017
– 14 – 14

15. Correcting Performance
Making Plants Smarter, Safer & More Profitable By Design
Correcting Performance
Equipment or Process Unit
Underperforming
Data Consolidation
Specifications
Controls
Piping
Other
DCS
Historian
ID Problem & Root Cause
Intelligent
P&ID’s
Develop Solution
1) Design Modification
2) Process Change
Engineering Models
Spreadsheets,
Simulations
Existing
P&ID’s
Validate
Solution
Safety
check
Validating design solution also requires HAZOP
Implementing project also requires updated or new SOPs, Training, PSM Documentation, HAZOP
Real-Time Performance
Monitoring & Auditing
Implement
Project
Maintain & Optimize
Improved or Design Performance
DCS
Historian
March 25, 2017
– 15 – 15

16. ROI – Correcting Performance
Making Plants Smarter, Safer & More Profitable By Design
ROI – Correcting Performance
Task
Today
Smart Plant
Problem Analysis & ID 16
$1,600 2
$200
As-built 40
$2,400 10
$600
Safety Check
100
$6,000
Process Validation
125
$7,500 35
$2,100
Update design 80
$4,800
Commissioning 24
$1,440 12
$720
Update documentation 25
$1,500
Savings
$25,240
$9,020
*based on estimates
$16,220
Workflow cases per year 7
$113,540
Cost savings
Cost of the solution for 3 users $95k (incl. training and few days of consultancy)
ROI with the first year of projects
$113,540 - $95,000= $18,540
plus Cost Avoidance or Opportunity Cost Savings ranging in the hundreds to thousands of dollars per hour that problem persists unrecognized
March 25, 2017
– 16 – 16

17. Business Case – Correcting Performance
Making Plants Smarter, Safer & More Profitable By Design
Business Case – Correcting Performance
Benefits
Virtual Engineer - Analyze process performance
Maintain Safe Conditions
Operational Risk Management
Abnormal Condition Detection & Reporting
Fault & Failure Detection & Reporting
Validation of Safety Critical Instrumentation
Provide recommendations to improve output
Ensure design consistency
Provide consistent P&ID updates
Safety checks on the modifications
Ensure P&ID, process data, Isometrics and safety are all consistent and verified.
March 25, 2017
– 17 – 17

18. ROI Recap on 3 Business Cases
Making Plants Smarter, Safer & More Profitable By Design
ROI Recap on 3 Business Cases
Automating HAZOP Process ,000
Add Monitoring System for Compliance $139,500
Correcting Equipment Performance ,540
Total ROI $421,040
Less Cost ,000
Total ROI 1st Year of Projects $326,040
Plus Cost Avoidance or Opportunity Cost Savings ranging in the hundreds to thousands of dollars per hour that problems persist unrecognized
March 25, 2017
– 18 – 18

19. FALCONEER Case Studies
Making Plants Smarter, Safer & More Profitable By Design
FALCONEER Case Studies
A former Foxboro manager appreciates our approach as “being rigorous enough to identify the problems without being too complex or expensive, combined with being easy enough to configure and maintain.”
Water & Waste Water
Utilities
Chemicals
Energy
Chemical\Petrochemical
Solid Oxidizer Plant
EO Plant
Polymerization Plants
Incinerators
Pipelines (Oil & Gas)
Salt Plant
Power Generation
Co-Generation
Boiler Systems
Pulp & Paper
Pulp Mill
March 25, 2017
– 19 – 19

20. SAP CUSTOMER WANTS… $$$ USER Process Information (Asset) Management
Making Plants Smarter, Safer & More Profitable By Design
CUSTOMER WANTS…
Process Information (Asset) Management
Real-Time Smart Link for Process Data to SAP to SP Enterprise to User
Automated Process Performance Auditing & Advising
Leveraging Design Information with Process Information
$$$
Improved profitability, safety, and efficiency
Identify energy saving opportunities
Reduce operating costs by finding potential operational issues before the actually occur
Improve process and instrumentation reliability
Prevent safety incidents and environmental releases
Leverage process data & knowledge to provide critical solutions in a timely and cost-effective way
SAP
USER
SmartPlant Enterprise 20

21. Smart Plant of the Future - NOW
Making Plants Smarter, Safer & More Profitable By Design
Smart Plant of the Future - NOW
FALCONEER Business Package Delivers
Smart Link from Control System to SAP & Intergraph Enterprise
Mass & Energy Balance Engine for optimizing energy utilization, costs, production
Monitor, Report, Trend key performance indicators (KPI) and metrics in real time
Energy & Raw Material Use & Cost
Instrumentation & Equipment Condition
Production Capacity & Utilization
Receive proactive notifications of under-performing assets before they impact the bottom line
Capture, retain & use aging workforce knowledge base
REDUCED OPERATIONAL RISK
ENSURING OPERATIONS PER DESIGN!
March 25, 2017
– 21 – 21

22. INTERGRAPH 2008 Q & A www.falconeertech.com Presenter: Dr. Doug Lenz
Making Plants Smarter, Safer & More Profitable By Design
INTERGRAPH 2008
Q & A
Presenter: Dr. Doug Lenz
Promised to explain origin of F.A.L.C.O.N.E.E.R.
March 25, 2017
– 22 – 22

23. FALCONEER Process Performance Solution
Making Plants Smarter, Safer & More Profitable By Design
FALCONEER Process Performance Solution
Models Are the Key
Material Balances
Energy Balances
Performance Equations
Soft Sensor Models
Six Sigma Transfer Functions
Heuristics
Empirical Equations / Correlations
Multivariate Statistical Models
PCA Models
March 25, 2017
– 23 – 23

24. Method Of Minimal Evidence Example
Making Plants Smarter, Safer & More Profitable By Design
Method Of Minimal Evidence Example
Primary Models (Mass and Energy Balances)
PM1 = 0 = Flow1 + Flow2 – Flow3 – Leaks
PM2 = 0 = Flow1 * cp * Temperature1
+ Flow2 * cp * Temperature2
– Flow3 * cp * Temperature3
– Leaks * cp * Temperatures
Secondary Model (Eliminates Flow1)
SM1 = 0 = Flow2 * cp * (Temp2 – Temp1)
– Flow3 * cp * (Temp3 – Temp1)
Method of Minimal Evidence (MOME) is that it provides a uniform framework for examining process models and their associated modeling assumption variables.
All unevaluated process models describing normal process operation can be characterized as functions of the following quantities (see above).
Once evaluated with actual process data and standard or extreme values of unmeasured parameters, a residual results (i.e., (i) below) which is just a function of process sensor noise and any currently occurring modeling assumption deviations..
Process engineers provide the primary process models, which are all linearly independent of each other.
The MOME methodology derives and adds additional, secondary process models from combining primary models, which improve the discrimination ability of the process model set.
The patterns of expected residual behavior that result from applying this method (e.g., the diagnostic rules) contain the minimum patterns required to diagnose each of the possible fault situations.
This directly maximizes the sensitivity of the fault analyzer for these various faults, maximizes the resolution (discrimination between various possible faults and non-fault events) of that analysis, and optimizes its overall competence when confronted with multiple assumption deviations.
March 25, 2017
– 24 – 24

25. Virtual Statistical Process Control (V-SPC)
Making Plants Smarter, Safer & More Profitable By Design
Virtual Statistical Process Control (V-SPC)
Controlled Process Variable
Virtual EWMA Chart
Flow meter
Controlled Process Variable
Flow Meter
Failure - 12 Hours before TDC Alarm Indication
March 25, 2017
– 25 – 25

26. Why Can’t our DCS / SCADA do this?
Making Plants Smarter, Safer & More Profitable By Design
Why Can’t our DCS / SCADA do this?
DCS/SCADA monitors individual points only – FALCONEER monitors entire process and interactions between points as well
Patent Pending Method and System
Adds “wisdom” or intelligence to the raw information.
Automatic model & rule generation for enhanced cross-checking
High Level Auditing & Advising
Accounts for ALL Information from Process
More than just Individual High/Low Alarm Limits and Trending
Statistical-based and Model-based Trending
Real-time Continuous vs. Manual or Scheduled
Proactive and Preemptive versus After-The-Fact
WHAT & WHEN & WHY
Certain Functions Possible (SPC, KPI, HART)
Requires Significantly More Time, Effort, Long-Term Support to Configure & Maintain
Older systems may not even be possible
March 25, 2017
– 26 – 26

27. A Powerful Union The Power of Information Captured in SmartPlant P&ID
Making Plants Smarter, Safer & More Profitable By Design
A Powerful Union
The Power of Information Captured in SmartPlant P&ID
The Goldmine of Information & Wisdom Provided by FALCONEER Process Performance Auditing
NEXT GENERATION ENGINEERING ENVIRONMENT
Creates High-Quality Data with Accurate, Up-to-Date Plant Designs
Shares P&ID Data with All Stakeholders
Reduces Start-up Time
Promotes Reliability Planning & Scheduling
Improves Plant Safety with Up-to-Date P&IDS
INTEGRATED FUNCTIONS
Process State Identification
Sensor & Data Reconciliation
Sensor & Process Validation
Fault & Abnormal Condition Auditing
Virtual Continuous Statistical Process Control
On-line Key Performance Indicators (KPI)
Soft Sensors
Digital Dashboard
Intelligent Advice / Charts / Reports
OPC or Proprietary Data Communication
March 25, 2017
– 27 – 27

28. ROI – Automating HAZOP & Beyond
Making Plants Smarter, Safer & More Profitable By Design
ROI – Automating HAZOP & Beyond
Task
Today
Smart Plant
Safety Study
500
$30,000
230
$13,800
Design updates
100
$6,000 40
$2,400
Process Validation
200
$12,000 75
$4,500
Update documentation 20
$1,200
Isometric updates 25
$1,500
Commissioning
Savings
$57,000
$23,400
*based on estimates
$33,600
Workflow cases per year 5
$168,000
Cost savings
Cost of the solution for 3 users $95k (incl. training and few days of consultancy)
ROI with the first year of projects
$168,000 - $95,000=$73,000
March 25, 2017
– 28 – 28

29. Business Case Automating HAZOP Process & Beyond
Making Plants Smarter, Safer & More Profitable By Design
Business Case Automating HAZOP Process & Beyond
Benefits
Increase the plant safety
Reduce risk of production interruption
Execute safety study faster and with consistent approach
Consistent and auditable study
MOC
Making resource available for operational tasks
March 25, 2017
– 29 – 29

30. Engineering & Process Data Working Together
Making Plants Smarter, Safer & More Profitable By Design
Engineering & Process Data Working Together
Measured
Calculated
Real-time Cost
Daily Cost
Monthly Cost
Yearly Cost
Real-Time PV
305 SCFH
300 SCFH
$45 / hr
$1,080
$32,400
$394 K
Design PV
325 SCFH
Deviation
+ 5 SCFH
- 20 SCFH
TOTAL Cost
$180 / hr
$225 / hr
$5,400
$162,000
$1.97 M
Plant Productivity
Quality Assurance
Meeting Stringent Regulatory Requirements
Safety
Environmental
Cost Improvements
Operations
Reduce Energy Cost / Improve Safety
Maintenance
Improve Reliability / Reduce Costs
Calibration Error Cost $394 K, Underperforming Asset $1.97 M
Incinerator Performance – Environmental Liability, Gas Consumption
March 25, 2017
– 30 – 30

31. SmartPlant Process Safety
Ray Howarth
21-22 August 2008
Hilton Opera Hotel
Hanoi, Vietnam