February 5, 1999

R/L 2/2000

To: GBU Engineering Managers

Subject: Global CAD Standards

This will provide you an up-to-date summary of our Global CAD Standards effort and a perspective on the
business case for these CAD tools.

The table below summarizes the Global P&G CAD Standard Agreements established in early 1997.
Establishment of these global standards was a significant step in Engineering’s journey toward the Year
2000. As the company now moves forward with 2005 reorganization plans these standards are all the
more important . They are among the essential tools Engineering will need to take on the most challenging
projects and effective work share cross the engineering community in support of P&G’s Global Business
Units. Effective work sharing is expected to be a critical factor in engineering’s ongoing contribution to
speed innovation and stretch.

Standard Software
Discipline Software Standard Design Deliverables

Process Design PDS Plant Design System 3D: Electronic Model

by Intergraph
2D: PFD's. P&ID's, Inst. Data

Machine Design & SolidEdge by Unigraphics Solutions 3D: Machine Design,

Assembly Mechanical Assembly

Electrical Design RS-Wire by Rockwell Int. 2D Electrical design for process, machine
control, facilities and utilities

Engineering AIM by Intergraph Local and Regional Engineering Document

Document & Data and Data Management & Control System to
Management and archive, retrieve and share documents and data
Control

Engineering & Design Standards

With the decisions on major CAD software behind us, we have been hard at work to establish the
engineering and design standards necessary to fully exploit these powerful CAD tools identified above. A
Global Design Managers Network has been established. Each GBU is represented. This global team has
begun developing action plans focused on getting this important work done in a timely fashion. You can
learn more about these action plans through your respective representatives to the Global Design Managers
Network.

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The Business Case for (Intelligent, rules based) 3D-CAD design systems
We continue to be asked about the business case for 3D-CAD technology. The following communicates
the business case for intelligent, rules based CAD as the Global Standard for Process, Process Mechanical,
Utilities and Plant Facilities work. Your Design Managers Network representative can provide you with
more specifics on P&G experience within your GBU. The following areas are of strategic importance for
Procter & Gamble, in measuring total system productivity and make the business case for 3D-CAD in our
engineering environment.

Areas of Strategic Importance

Work Sharing As we move to GBU’s, there is an increasing need to be able to share engineering
(speed) work among the several regions within a GBU. Leveraging economy of scale means
the ability to share like engineering solutions among GBU’s. The inherent capability
to imbed intelligence 3D-CAD models and share these models among ourselves
electronically facilitates sharing work among P&G engineers anywhere in the world.
This is especially beneficial for our GBU’s. We can begin a project wherever in the
P&G world a good idea might surface and finish the detailed work wherever our
business needs and marketing plans dictate. This means P&G engineers must develop
a working knowledge of 3D-CAD and our desktop workstations will need to be
upward compliant with CAD workstation.

Knowledge Capture All of the knowledge generated during the engineering phase can be captured in 3D
(speed & stretch) electronic models. Such knowledge can be communicated more efficiently and
accurately to other engineers, projects, and plants anywhere in the P&G world. This
kind of knowledge capture and dissemination is simply not possible in a 2D-CAD
(mechanized drafting) medium. It will be especially effective in the area of T T & T,
Loss Reduction Improvements, and Change Management.

Change Management
(speed & innovation)
One goal of IWS is to define and maintain ideal conditions for equipment, Processes,
operations and maintenance. In order for IWS to support Equipment Standardization
as we make Loss Reduction Improvements, we need a clear and efficient Change
Management Process for equipment related improvements. CAD and AIM (Asset
Information Management) will be a critical foundation element in change
management. Use of standard CAD packages will allow us to capture Basic
Conditions in a standard format. AIM will provide broad and easy access engineering
documents and data that define Basic Conditions.

Search and Reapply 3D models are photo realistic. This makes it relatively easy to identify “Red & Green
(speed) Zone” for technology owners engaged in testing-improvement work. Beyond the
visualization power, there are the riches of knowledge and intelligence imbedded in
each element of the model. These features facilitate search and reapply.
Reapplication opportunities are also more readily identified.

Quality Communication As the requirements for production system start-ups and ongoing reliability increases
(speed) there is a corresponding need for increased plant technician input and critique of
engineering designs. The visualization power of 3D-CAD facilitates real time
accurate communications. This, in turn, supports broader participation in decision
making, enables better planning, reduced planning and participation costs, and broader
buy-in for final design solutions. Rework is reduced and time is saved (speed gain).

Base for CAE The continued roll-out of 3D-CAD technology will provide for effective integration
(speed, innovation, of CAE and CAD technologies on the P&G Engineer’s desktop to enable:
stretch) · Analysis led design in the upstream conceptual phase of initiatives
· Analysis support of final design efforts for initiatives
· Association of CAD models and CAE models in engineering work process
· Collaborative design, analysis, and review to reduce the number of iteration
necessary to reach fit and function requirements

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We need to create competitive advantage for our GBU’s through our engineering work processes. The
deployment of 3D-CAD will be a big factor in our ability to deploy increased numbers of engineers for
innovation efforts. In addition, these leading edge engineering tools and technology allow for increased
speed in the engineering process and much more predictive information when integrated with CAE.

All of our experience to date supports industry claims of savings in the 3-5% of total installed cost with
intelligent 3D-CAD as an engineering tool. Beyond improving engineering efficiency, there are returns in
construction, start-up, commissioning, technology transfer and training, and on-going maintenance. Key to
achieving the full range of competitive advantage is to encompass not only engineering, construction and
start-up efforts, but also manufacturing operation and maintenance activities. It is our intent to, over
time, transition all of our work from primarily 2D- CAD products (mechanized drafting) to the
rich environment of Intelligent 3D-CAD products. The work we have done over the past three-to-
four years with the North America Alliance Engineering Contractors more than demonstrate the
huge benefits to be gained.
Please share this document with those folks in your organization who are involved with or interact
with engineering or construction in support of our capital programs. A broad base of
understanding of the big picture strategy will help smooth the transition from the 2D-CAD world
of mechanized drafting to the rich environment of intelligent, rules based, interactive world of 3D-
CAD.

H.E. Brown

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