1 © 2008 OSIsoft, Inc. – Japan Seminar 2008 Why do we need a Real Time Infrastructure for Performance Management

2 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Agenda Introduction Energy Survey Quick overview of OSI and PI Evolving usage of PI in Performance Management Observed attributes of successful PI Customers Q & A

3 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008

4 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 OSIsoft is a Global Software Company > $200M Revenues Over 20% reinvested in R&D Approaching 50% revenue from outside NA 25+ Year History Founded 1980, ~ 630 employees HQ San Leandro, CA Recognized global leader Dominant market position across industries Recognized Experienced Knowledgeable 14,000+ Installations in 120 Countries 50% of Fortune 1000 process and manufacturing companies use the PI System 65% of Global 500 process and manufacturing companies use the PI System Strategic Partnerships Microsoft, SAP Cisco, Intel Yokogawa, Emerson, Rockwell

5 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Trusted by Global Industry Leaders Pulp, Paper & Converting Pulp, Paper & Converting Alabama River Pulp Metals, Metallurgy and Material Metals, Metallurgy and Material Oil and Gas Utilities and Power Utilities ChemicalsChemicalsChemicalsChemicals POLIMERI EUROPA Pharmaceutical and Lifesciences

6 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Server Gathers, Organizes, Distributes, and Stores Data from Many Sources Visuals Deliver Information for Meaningful, Better Business Decisions Structure / Asset Data Real-Time Data Custom Data IT DataRelational Data Web Services ERP / Maintenance Performance Improvement Operational Visibility Knowledge Management Product Quality Lean Manufacturing Asset Management Situational Awareness Analytics Turn Valuable Real-Time Data Into Actionable Information The The PI System Functional Groups of The PI System

7 © 2008 OSIsoft, Inc. – Japan Seminar 2008 PI Usage Examples

8 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 ProcessBook: Digester Overview

9 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Copyright © 2006 Company Confidential. All rights reserved.9 DCS Display

10 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 SPC Displays and Reports Statistical Quality Control

11 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Environmental Monitoring

12 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Diagnostic – process loop needs tuning

13 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Water Quality

14 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Engine Performance

15 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Energy Management AGGREGATE

16 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Power Generation Greenwood – 785 mwRiver Rouge mwFermi – 1,100 mw Monroe – 3,135 mw Trenton Channel mw Belle River – 1,260 mw St Clair – 1,417 mw Harbor Beach – 103 mw Performance Center – 11,588 mw

17 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Transmission & Distribution

18 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Wind Power

19 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 SmartSignal Early Detection in Maintenance By creating a dynamic band around each sensor value in real time and correlating it to other sensor values, SmartSignal provides the earliest possible warning.

20 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Energy Management

21 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 ***Data altered for IP***. Mining Operations

22 © 2008 OSIsoft, Inc. – Japan Seminar 2008 Use Examples Data Center Monitoring

23 © 2008 OSIsoft, Inc. – Japan Seminar 2008 Facilities Monitoring

24 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 University Energy Usage

25 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar Real Time Data at BP Real Time Drilling Drilling Visualization Topsides Monitoring One Touch ISIS AWS (Subsea) Process Net Subsea/Well Surveillance Riser/Mooring Data Rotating Equipment Integrated Marine Monitoring Fiber Optic Network

26 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Inexcon – EKHO - OEE Analysis Review

27 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Performance Analytics in Converting Personalized Dashboards OEE Analytics Quality Analytics Capacity Analytics Downtime Analytics Cycle Time Analytics

28 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 The Changing Nature of OSI Usage evolving from facility level to enterprise level –Increased focus on infrastructure and away from applications –Increased focus on partners to provide applications –Increased focus on performance measurement Increased focus on sustainability and dealing with todays critical issues –Energy – conservation, renewables –Environment - air and water quality –Sustainability - carbon management, biorefining

29 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 `` ENTERPRISE Data Center Smart Connectors MFG Sites Division HQs Business Systems Portal Servers Application Servers Remote PI System PI Analytics Smart Connectors Remote PI System PI Analytics Smart Connectors Division Level PI System Employees Management PI Analytics Smart Connectors Data Access Enterprise PI System Enterprise awareness through PI

30 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar % 33% 37% 41% 52% 0%10%20%30%40%50%60% Lack of funds and/or lack of perceived value Lack of strategy to unify information across manufacturing Lack of timely information to make informed decisions Incompatible and inconsistent systems Gap between enterprise resource planning (ERP) and factory floor Top Business Challenges Aberdeen Group – 2006 Survey

31 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Major IT Challenges 31% 36% 38% 47% 63% 0%10%20%30%40%50%60%70% Difficulty of providing users with information for decision making Aging or proprietary systems No unifying manufacturing architecture Multiple applications to support Difficult to integrate existing systems All participants Aberdeen Group – 2006 Survey

32 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Manufacturing Metrics Gap Analysis: Importance vs. Perceived Performance Source: AMR Research, 2006 % of responses indicating 4 or 5 Q: How Important are each of the following capabilities in using manufacturing metrics to drive better business decisions? (1 not very important/5 extremely important) Multi-site performance analysis Enterprise visibility of production financial performance Aggregation of data from multiple plant floor sources Multi-site aggregation of data from production assets Centralized repository for multi-site data Ability to compute a composite metrics from multiple KPIs aggregated from multiple plant floor sources Acquisition of time series data from the plant floor Role-based visibility of real-time KPIs and exceptions and on-demand reports 67% 65% 59% 58% 56% 55% 68% 49% 50% 45% 41% 33% 38% 55% 44% Importance Performance

33 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Manufacturing Performance Visibility Prospective users and implementation groups need to recognize that achieving manufacturing performance visibility isnt as simple as buying a one-size-fits-all software application.... Instead, users should focus the design of an information architecture that can be tapped at multiple levels to serve up whats needed to tackle performance improvement initiatives…. ** Enterprise Manufacturing Intelligence Architectures - AMR Research – February 2008

34 © 2008 OSIsoft, Inc. – Japan Seminar 2008 Observed Criteria of Super Successful OSI Customers

35 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008

36 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 The CSAP Initiative covers the two bottom levels (Process Control and Real-Time Information) of the typical pyramid describing the information flow … Plantwide Information Management System (PIMS) PROCESS CONTROL LEVEL REAL TIME INFORMATION LEVEL ENTERPRISE LEVEL MANAGEMENT LEVEL CEMEX Strategic Automation PlanCEMEX Strategic Automation Plan Process Control Systems (PCS) Advanced Process Control (APC) Cyber-Security

37 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Enterprise Integration at AMGEN Business Process Information Network Level 3 Process Device I/O and Sensors Manufactu ring Level 0 Level 1 Level 2 Level 3 Manufacturing Operations and Control Systems Equipment Control Systems Data Collection, Operator, and Batch Control Systems Level 4 Business Planning and Logistics Systems High Alarm Low Alarm Comm. Err. High Alarm Low Alarm Comm. Err. High Alarm Low Alarm Comm. Err. Operations Information Network Automation Network Discrete DeviceProcess Device Site / Functional Area Plant Specific PI

38 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Add in DTE, BP and Exxon as examples of infrastructure

39 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008

40 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Requirements for Success In surveying our customers who have achieved outstanding success in performance improvement using the PI Infrastructure, we see these key attributes….

41 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Requirements for Success These Customers - –Have committed Stakeholders –Recognize that Value is achievable –Have a Vision of what they want to do –Establish the Framework for implementing the vision –Install the PI Infrastructure for collecting, analyzing and processing real time and asset related data –Prioritize projects based on the Potential Return –Tackle Small Projects sequentially –Measure and publish the Results they achieve –Adopt the PI Infrastructure as a fundamental part of their continuous improvement program. –Establish a collaborative working relationship with OSIsoft under an Enterprise Agreement.

42 © 2008 OSIsoft, Inc. – Company Confidential Japan Seminar 2008 Intrinsic Values of the PI Infrastructure Reliability Availability Interoperability Scalability Extensibility Security

43 © 2008 OSIsoft, Inc. – Japan Seminar 2008 The End