SmartPlant 3D Materials Handling

Taylor D. Cole Vice President, Intergraph Global Metals & Mining Industry

Global Outlook - Commodities

Global Seaborne Iron Ore 2X
1136 844 1421 1624

Global Copper 2X
26 19 33 38

2007

2012

2017

2022

2007

2012

2017

2022

Global Aluminum 2X
54 35 44

66

Global Seaborne Coal 1.3X

872 676

2007

2012

2017

2022

2007

2015

Source: Rio Tinto May and July 2008. Million MT per annum demand forecast.

Materials Handling Problem

Problem
Production
a nd m e D

Time to Market Solution:

Work-sharing Skilled Resources
Time to Market

Higher Productivity and Quality for Same Hours Re-use of Design

Supply
2008

Reduce Interfaces and Re-work

2015

Supply Chain Efficiency Vendor Integrated

Enablers:
Technology: Workflow: Leverage: Intergraph SmartPlant Enterprise Front-end Loaded and Rule Based Synergies with Other Industries

Standardisation: Intelligent Re-usable Catalogue

Benefits:
Accuracy: Optimise: Safety: Knowledge: Total Installed Schedule and Cost Layout, Pre-assembly, Design Stds Reviews: Hazop, Constructability, O&M Asset Lifecycle and Re-use

Business Values for Change

According to a Construction Industry Institute study of 53 major projects, projects which included the most effort on conceptual plant studies averaged: 20% Lower Engineering costs 39% Schedule reduction 15% Plant Utilization/ Capacity increase compared to projects that spent the least effort on conceptual plant design studies as part of pre-project planning.

DigitalPlantProjectCost/ BreakevenCurve

Profit

Faster Startup

Traditional Startup

Increased Profit TraditionalProjectCost/ BreakevenCurve

Reduced CapitalSpend

Faster Profitability

Time

Cost

Capital Capital Savings CostCost Savings

Plant Lifecycle
Conceptual Design Detailed Design Fabrication & Construction Commission Plant Hand-over & Test

Plant Operations & Maintenance

over 80% of a projects total cost are committed within the first 20% of the total projects design time
4

Intelligent Design Reduce Time on Task Comparison

Microstation
Old technology [1980s] Fantastic change for the time

PDS
Newer technology Faster design time improvement over Microstation

SmartPlant 3D
Latest technological advance Data base engineering Significant improvement over PDS in design time Improved integration between disciplines

Proof of Concept Project Background / Purpose / Status Problem industry demand and resource supply needs a step change solution Document centric (2D) project delivery compared to Process Industries Proof of Concept initiates the step change
Industry requirements specified Solution concepts established and tested Initiated solution configuration and development Concept proved - confidence to continue Pilot project for project readiness objective

SmartPlant 3D Materials Handling Benefits for Projects and Assets

Knowledge Management and Re-use Schedule
Standardisation Workflow Interfaces Productivity

Risk
Work-share Tracking Forecasting Integration

Cost
Optimisation Re-use Wastage Rework

Safety
Reviews Pre-assembly Simulation Education

Handover and Asset Lifecycle

SmartPlant 3D Materials Handling Conveyor Design Workflow

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Sc

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& e l i f Pro

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g n i aw r D n o i t a c i f i c

s t r a P &

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C n o i t u l o

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SmartPlant 3D Materials Handling Chute Catalogue Workflow

t n e m e e s g n -u a e r r R A d n te a u e h u C g o l o a i t r a a C n e o t c S n t g i n s e e rr D u i C D 3 n o i t u l So

g n i aw r D

SmartPlant 3D Materials Handling Benefits for Projects and Assets

Knowledge Management and Re-use Schedule
Standardisation Workflow Interfaces Productivity

Risk
Work-share Tracking Forecasting Integration

Cost
Optimisation Re-use Wastage Rework

Safety
Reviews Pre-assembly Simulation Education

Handover and Asset Lifecycle

SmartPlant 3D Materials Handling Knowledge Management & Re-use

Critical Information Transfer

Design Critical Feedback Loop

Operate

Critical Information Transfer

Build

Critical Feedback Loop Critical Information Transfer Commission

SmartPlant 3D Materials Handling Knowledge Management & Re-use

Design

SmartPlant Foundation Operate Application Integration Engineering Data Handover Engineering Information Management Commission Build

SmartPlant 3D Materials Handling Handover & Asset Lifecycle

By establishing a holistic strategy for plant asset lifecycle management, Owner Operators can manage their assets for short and long term profitability rather than the traditional sweat the assets strategies

Measurable Value
Expedited Commissioning & Startup (2-3% of TIC) - through expedited commissioning & start-up
resulting from as-built data validation, transformation & loading into operating systems

Minimized Plant As-Built Verification (1-2% of TIC annually) - through auditable plant asset
information management of change

Reduced Production Loss (0.2-0.5% of revenue annually) through elimination of unplanned

outages as a result of decisions based upon inadequate / incomplete plant data

Increased Turnaround Intervals (20% annually) Through application of reliability in design and
asset performance management principals

SmartPlant Enterprise Financial Benefits

Base Scenario Savings / Revenue Improvement w/ SPE CAPEX Savings: -15% - Initial and Depreciation OPEX Savings: -3% annually Revenue Increase: +2.0% annually and 7 to 10% earlier project completion (approximately +20% revenue increase in Y1 on a three year CAPEX project life).

Sales (Revenue) Less: Operating Cost Depreciation Operating Profit

Base 1,000 - 500 - 100 400

W/ SPE Change 1,020 +2.0% - 494.7 - 85 440.3 -3.0% -15% +10.1%

SmartPlant 3D Materials Handling Next Steps

Pilot Project
Australia Q4 2008

BETA Version
Q1 / Q2 2009

Commercial Version
SmartPlant 3D v9 Release

Materials Handling Solution

Questions?

Taylor D. Cole Vice President, Intergraph Global Metals and Mining taylor.cole@intergraph.com