Improving Manufacturing Efficiency and Profitability- A case study in Plantelligence

Business Analysis Identify Long Chain “Buy/Make/Sell” Business Processes Identify Business Requirements and Metrics 137 Critical Requirements Map Business Requirements to Technology Vendors

Critical Business Requirements

MTO Project Objectives Develop Full Suite of Integrated Manufacturing Business Processes (MES) Integrate Long Chain Business Processes that Encompass SAP, MES, and DCS Develop a Standardized Configuration that enables Replication of Best Business Practices Determine Value of MES Integration

Scope of MTO Project Customer SAP Fisher Provox Collaborative Forecasting Capability to Promise Planning Order Fulfillment Customer Scheduling Data Validation Material Balance Order Placement Operation Directives Balance Models Production Transactions Process Recipes Batch Record Planned vs. Actual Certificate Of Analysis Adv. Process Control Process History Process Analysis Real-time Quality Management Process Simulation Process Orders MRP Regulatory Controls SAP Invoice Customer Resource Consumption Engineering Workflow Fisher Provox

MTO Project Completion Plantelligence ™ v1.0 was commissioned in May 1999 at Equistar Chemicals’ High Density Polyethylene facility located in Matagorda, Texas.

Benefits Analysis Average Sales Price Feedstock Cost Pre-Tax Operating (+) Average Sales Price (-) Feedstock Cost Pre-Tax Operating Income Net Operating Margin EVA (-) (-) Variable Cost (-) (x) Total Production Capital Cost (-) Fixed Cost

Annual Pre-Tax Operating Income Plantelligence Value Creation Annual Pre-Tax Operating Income

Value Creation - Production Improved troubleshooting capabilities leading to faster root cause identification and elimination.

Increased margins due to accurate product costs improving scheduling. Value Creation - Average Sales Price Increased margins due to accurate product costs improving scheduling.

Establishing and daily monitoring of Real Time KPIs. Value Creation - Variable Cost Establishing and daily monitoring of Real Time KPIs.

Rapid identification of raw material loss sources. Value Creation - Feedstock Rapid identification of raw material loss sources.

Automation of work processes. Value Creation - Fixed Costs Automation of work processes.

Example Manufacturing Process - Today Daily inventory update Monthly reconciled consumption, production and cost reports Business Management E R P Develops standard costs Business Staff No daily economic data Costs reported on a monthly basis Plant Management Shift logs and morning report, includes production, quality, safety and environmental data Advanced Process Control Data Historian Data manipulation Data validation Data entry Operations

Manufacturing Vision With Plantelligence Business Management Automatic production reporting Greater visibility of work in progress (for CTP) Actual consumptions for MRP and product costing (for PTP) Operational benchmarking and institutionalization of best practices - Process Excellence Sustainer Performance against benchmark (for KPI’s) Customer technical support (for CRM) Facilitate alignment of plant teams for improvement opportunities Integration Capabilities Accurate decisions based on validated real-time information E R P Business Agility Improved decision making with more timely and accurate information Business Staff Actual consumption on a daily basis by product batch Automatic classification to the highest margin product Alarming and prompting for assignable cause Batch records that include process variables, lab data, batch number, rail car number, and other relevant business data Plant Performance Real-time response to operational variability due to more timely, accurate and contextual information Plant Management Production Management KPI Production Accounting Operations ERP Integration Advanced Process Control KPI Business Process Integration Data Historian

Onward to Version 2.0