integrated polymers solution overview · integrated polymers solution overview date: ... •...

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INTEGRATED POLYMERS SOLUTION OVERVIEW

DATE: NOVEMBER 2006

VERSION 1.0

Honeywell Process Solutions November 2006 Integrated Polymers Solution Overview Version 1.0 i

TABLE OF CONTENTS TABLE OF CONTENTS ................................................................................................................................ I

INTRODUCTION...........................................................................................................................................1

OVERVIEW...................................................................................................................................................2

BENEFITS.....................................................................................................................................................4

ROLES..........................................................................................................................................................6

USE SCENARIOS ........................................................................................................................................7

FUNCTIONAL SOLUTION ...........................................................................................................................8 TRANSITION MANAGEMENT...................................................................................................................... 8

Procedural Operations.........................................................................................................................................9 Procedure Analyst..............................................................................................................................................10

PRODUCTION MANAGEMENT .................................................................................................................. 10 Production Orders, Operating Instructions .......................................................................................................12 Alarm Management............................................................................................................................................12 Operations Monitoring ......................................................................................................................................13 Operator Log Book ............................................................................................................................................13 Production Explorer ..........................................................................................................................................13 Production Tracker ............................................................................................................................................14 KPI Manager .....................................................................................................................................................14

COLLABORATIVE MANUFACTURING ....................................................................................................... 15 Business Hiway ..................................................................................................................................................15

VALUE PROPOSITION..............................................................................................................................16 HOW DO THESE SOLUTIONS MAKE A DIFFERENCE? .............................................................................. 16

Improved Manufacturing ...................................................................................................................................16 Improved Information ........................................................................................................................................17

VALUE PROPOSITION .............................................................................................................................. 18 Hard Credits ......................................................................................................................................................18 Soft Credits.........................................................................................................................................................19

TYPICAL VALUE ..................................................................................................................................... 19 DELIVERING THE SOLUTION ..................................................................................................................20

Honeywell Process Solutions November 2006 Integrated Polymers Solution Overview Version 1.0 1

INTRODUCTION Industry Challenges

The polymers industry is facing significant challenges in competing in an increasingly global market place. Mature plants are being asked to simultaneously achieve many of the following objectives:

• Support Innovation – with many grades of polymer becoming commodities, survival can depend on a companies ability to find and consistently produce higher value products that address new problems and generate higher margins. Manufacturers must find ways to reduce the time it takes to go from new customer requirements to consistent, reliable production. Operational Excellence in manufacturing is a key factor in reducing this cycle time.

• Improve Efficiency – manufacturers are focused on making the most effective use possible of the capacity they have at their disposal. Part of the focus on making manufacturing more efficient is to ensure that capacity, raw material and fixed cost is not devalued by making offspec material or making more transition material than absolutely necessary.

• Improve Agility – as more products are made, the ability to be more flexible and respond to shifting market demand becomes a critical success factor. The ability to be nimble and deliver consistent quality product will differentiate market leaders.

• Improve Customer Service – as business drives to be closer to just in time production, there is no lessening in the expectations of any given customer to have the product they need available when they need it at a cost that is right for them. In this competitive environment, the ability to reliably deliver product to the customer when needed can be a key competitive differentiator.

• Capture Best Practices – as the industry struggles to manage costs and shifts in capacity, they are facing the loss of experienced people. This makes it more difficult to achieve consistent, reliable production. This makes it critical to capture best practices that provide a foundation for future operations.

• Connecting Business Decisions and Plant Capabilities – in many businesses there is a disconnect between the objectives of the plant (make as much product as possible with as few disruptions as possible) and the objectives of the business (deliver the right product to the customer when it is needed).

Often the connection between these two silos can be tenuous and based on flawed assumptions. Achieving the right balance between these two objectives and synchronizing business plans with an accurate picture of plant capabilities can make significant improvements to the overall performance of the business.

Honeywell Process Solutions November 2006

OVERVIEW Honeywell has solutions to help polymers manufacturers address these broad challenges. In addition to advanced control solutions, Honeywell offers solutions to address tackle broader business improvement opportunities and sustain these gains.

CollaborativeManufacturing

Synchronize business decisions with

production capabilities

Set up, monitor and historize activities• Receipts• Production• Shipments• Inventory• Calculate KPI’s• Support analysis

TransitionManagement

Define, execute and monitor procedures • Manual• Semi Automated • Automated• Compliments APC

ProcessControl

Control of reactor production and transitions

Monomer

Comonomer

Catalyst

Hydrogen

Off SpecBin

Weigh Bin

WeighBin

Batch

Storage Shipment

Receipts

ProductionManagement

Product 101Transition 101-102Product 102Transition 102-104Product 104

Mon 10/12 12:00 Wed 10/14 9:00 Fri 10/16 16:30

Overview of Honeywell Solution

Advanced Process Control

Honeywell’s solution for non-linear control offers a powerful foundation for improvements in process performance and agility by enabling the plant to push throughput and minimize transition time and offspec production.

Transition Management

This solution is focused on the automation of the procedures related to transition management and coordination of the various units. This enables consistent production and transitions and helps to automate best practices. Honeywell provides tools that are integrated with the control system and advanced control solution to help co-ordinate grade changes on the reactor and extruder with all of the many activities that have to be aligned to make these happen. This may include feed preparation, catalyst preparation, intermediate storage, lab sampling among other things.

Honeywell also provides tools that allow you to look at a history of the procedure execution to support a continuous improvement process. This enables the plant to first

Integrated Polymers Solution Overview Version 1.0 2


reduce the level of variation in executing procedures and then look for ways to continue to improve the new, sustainable, level of performance. These tools also enable the plant to automate best practices and significantly improve productivity.

Production Management

This solution is focused on connecting business decisions with consistent execution capabilities. In order to do this, it is critical to be able to translate the needs of the business, typically expressed as a schedule, into a consistent set of instructions and monitoring limits. In order to close this broad loop, it is important to be able to track the product that is made.

Polymers manufacturers can take an updated schedule from the business and translate this into a consistent recipe for production and transitions. In addition, the solution defines and monitors the operating envelope (including alarm limits) for safe production. These tools enable the production engineer to translate the requirements of the business into a consistent set of instructions and define the required transitions for execution and monitoring.

The solution also provides batch tracking and lot tracing capabilities, including associated quality information from the lab. These tools enable the production engineer and customer services representatives to quickly have access to critical production data to answer questions like – what happened to a specific batch or what other batches were affected in a similar way. The information can also be communicated to an ERP system to help improve the collaboration with the business systems.

For sites with more complex movements operations and significant inventory (typically in silos), Honeywell offers applications to monitor and track inventory and product movements within the plant as well as shipments and receipts.

Collaborative Manufacturing

Honeywell’s focus is on connecting business decisions (driven by supply chain needs) to execution capabilities (advanced control and automation solutions). This involves improved communication in both directions – from the business to the plant and from the plant to the business.

The Manage Production solution enables a quick translation from an updated schedule into consistent instructions and limits. Honeywell can help improve the performance of scheduling solutions and connect the resulting schedules to the plant to speed up execution.

Honeywell also provides information to the business on the current and historical performance of the plant. This enables the business to recognize and react to changes in production capabilities more quickly and make the plant more agile. It also helps to ensure that proposed schedules are updated using the most accurate reflection of the plant’s true capabilities.


BENEFITS These solutions have a significant impact on the performance of the plant. The table below highlights several key benefit areas:

Area Benefits

Throughput Increased throughput are achieved through the application of Advanced Control to push the plant to higher production capacity. Reduced transition times (and off prime material produced) increases the effective production rate. Reduced off spec material increases the effective production rate. Increased reliability increases the number of days of production .

Innovation Decrease the time taken to go from designing new, higher value polymers to consistently manufacturing these polymers to increase margin.

Product Mix Increased agility and reliability to enable the plant to better meet shifting demands and produce new products.

Consistent Best Practices

Increased automation of procedures for product recipes and grade transitions to capture best practices. Integrate procedural, manual and advanced automation solutions.

Continuous Improvement

Collect information about plant performance in order to support continuous improvement. This information brings together production (including quality), procedural and process data to enable the plant to find anomalies and implement improvements.

Productivity Improve the effectiveness of operators and production engineers by shifting the focus from collecting and entering data to using information.

Customer Satisfaction

Improve the ability to respond to customer requirements and provide information when needed.

These benefit areas can have a significant impact on the business results for a polymers manufacturer. Figure 2 illustrates the impacted that Honeywell’s integrated polymers solution can have on a companies Return on Capital Employed (ROCE). It is interesting to note that these solutions can have a broader impact than simply reducing manufacturing costs. By improving the agility of the plant and the pace at which innovation takes place, the solution can have a significant impact on sales and margin as well.


Production Manage me ntProduction

Manage me nt

Collaborative M anufacturingCollaborative M anufacturing

Transition Manage me ntTransition

Manage me nt

Adv anced Contro l& Optimization

Adv anced Contro l& Optimization

Connect the business to the p lant

Drive consistent product ion by translating production orders into instructions, capture history, K PI’sMonitor deviat ions and record operating events

Coordinate transition proce dures to improve transition performance

Improve quality and throughputImprove transition performance

Solution Benefits

Reliability

Process Performance

Product Mix

Increase Throughput

Reduce Energy Use

Reduce Offspec

Parts / Supplies

Maintenance

Operators

Engineering

Reduce CAPEX

Life Extension

Inventory

Acct Rec / Acct Pay

Increase Operating

Margins

CapitalEfficiency

ReducedCosts

InstalledAssets

WorkingCapital

People

IncreaseRevenue

Material

ImprovedBusiness Results

Improve quality, volume, reliability and customer service.Support innovation.

Improve quality, yield, reduce energy use, and reduce maintenance

Improve the skill and productivity of people

Improve asset life, reduce maintenance

Balance inventory and customer service levels

Financial Impact



ROLES The major roles for users are defined as follows:

Roles

Scheduler Makes business decisions to determine what products to make, in what quantity and when in order to balance the demand for products with the production capacity.

Needs to be able to see scheduled, current and completed production.

Production Engineer

Meet the production schedule with consistent, reliable production while minimizing transitions and offspec production.

Needs to be able to see scheduled, current and completed production.

Needs to be able to see default formulation and modify it in order to improve performance or adjust the way the product is made or transitions are handled to account for current production conditions. Needs to be able to see production history in order to compare expected results to actual and enable continuous improvement.

Operator Operate the plant safely, profitably and efficiently and make the product required. Responsible for initiating transitions, responding to alarms, etc. and adhering to the schedule.

Process Engineer

Responsible for understanding how to use the process equipment and materials.

Needs to be able to analyze process performance and suggest improvements. Frequently engaged in making new polymers.

Customer Service Representatives

Understand customer service related to problems using product in the customer’s application.

Understand how the product was made (what materials were used and under what process conditions). It may also be important to understand what materials went into specific products (eg. lot tracing).

Operations Management

Responsible for reliable, efficient delivery of product to the business (as described by the schedule).

Needs to be able to see the current status of production (schedule, actual, history) and related KPI’s that summarize the performance of the plant.

Maintenance Provide efficient maintenance of the plant to provide reliable production.

Needs to understand what equipment needs to be maintained and how to minimize the impact of maintenance issues.

Note: in many organizations several roles may be fulfilled by one individual (or may be split up differently).


USE SCENARIOS Figures 3 and 4 represent a typical workflow for many polymers producers today and a potential workflow leveraging a more integrated solution.

Control System

ScheduleSOP’s

TransitionPackage

Scheduler

Production Engineer

Operator

ERP System

CustomerServiceRepresentative

New Prod

R&D

Advanced ProcessControl

ProductionOrders

Procedure Analyst

Recipe:ProcedureParameters

ProceduresOperator

R&D Scheduler

CustomerServiceRepresentative

Prod’nExplorer

Alarm EnforcementOperations MonitoringOperator Logbook

Operating Instructions


ProductionEngineer

ERP System



FUNCTIONAL SOLUTION The following major activities are associated with the task of managing the production of polymers.

Scheduling

Now FuturePast

AdvancedControl




Production Explorer

Operating InstructionsOps. Monitoring

Procedure Analysis

OperatorEffectiveness

Procedure Execution


AssetEffectiveness

ERP

Production Orders

KPI’sOperatorLogbook

Production TrackerLIMS

Polymers Solution Map

TRANSITION MANAGEMENT These solutions help polymers manufacturers to automate the various procedures associated with feed preparation, transitions and the overall coordination required to drive consistent production. These solutions are integrated with the control system and can interact with the advanced control solutions to deliver an additional level of performance and best practices.

In addition, history of the procedures is collected and reports and analysis are available to support a continuous improvement process. This information enables a review of procedure execution to address problems that have occurred and uncover opportunities for further improvement.



Now FuturePast

TransitionManagement Procedure Analysis


Procedure Execution


AssetEffectiveness

Transition Management

Procedural Operations In most polymers plants, it is routine to transition between product grades. The procedures will vary somewhat with the product that is being transitioned from and the product that is being transitioned to. Ideally, the knowledge and experience associated with a specific transition has been captured – but the success of the operation still relies heavily on the experience and familiarity of the operator who is on shift. Even for plants that make fairly frequent transitions, any given operator may only make a specific transition once every few months, or even years. As a result, the time taken to complete the transition, and the amount of transition material made, will vary.

Honeywell offers solutions to automate procedures and support a continuous improvement process. These solutions are an integral part of Honeywell’s award winning Experion PKS platform and allow you to integrate advanced controls with procedural



operations. These tools allow you to configure procedures that mix automatic changes (eg. changes to setpoints) and instructions with and without confirmation. Access to additional information (eg. web sites) can be provided to make it easy to utilize other resources. This environment allows coordination of activities between areas of the plant and between operators.

Typically, the procedures for similar transitions are defined once and parameters are maintained that define the specifics of a given transition. These parameters can be modified, in advance, in order to tailor a specific transition to current operating conditions and requirements.

Procedure Analyst Using Procedure Analyst, the performance of each transition can be analyzed to understand the root cause of problems that have occurred or assess opportunities to improve the performance of the plant. These assessments can be used to assist the plant to identify improvement opportunities, baseline current performance, and implement new or improved procedures using industry best practices.

Procedure Analyst uses events generated by the phases within transition procedures to track progress. In addition, process history can be related to these events to provide a comprehensive view of operating conditions as the procedure was executed.

These tools allow the plant to define a “golden” execution that serves as a baseline for performance that other similar executions can be measured against. Reports can also be generated to show

PRODUCTION MANAGEMENT This solution is focused primarily on improving the consistency of converting production orders into executable instructions, monitoring of operating conditions for deviations and the collection of production data to support a continuous improvement process.

The solution ensures that the plant has operating targets and alarm limits that are consistent with the current production mode and monitors for deviations from the current operating envelope. Given the variation in operating parameters in a polymers plant,



this helps ensure that you are always measuring your performance against the correct limits and recognizing deviations as early as possible.

In addition, the solution will record production data and provide the means to perform batch tracking and lot tracing. This provides rich data for problem solving with customers and internally. This also makes additional integration with the business possible to better synchronize customer demand with production.

For those plants with complex logistical operations or significant on site storage, Honeywell also offers a solution to monitor inventory and track product movements within the plant, including shipments and receipts.

The figure below provides an overview of this solution.

Now FuturePast


Production Explorer


Procedure Analysis


Procedure Execution


AssetEffectiveness

Production Orders




AdvancedControl

Production Management



Production Orders, Operating Instructions With a framework established of advanced controls and automating common procedures, it is important to be able to consistently align all of the operating conditions that go with each grade with the schedule being produced.

Production Orders represent the schedule within the plant and allows everyone within the plant to see what will be produced, when. A production order is used to define what product should be made, the amount of production and when production should begin. The application maintains a list of production orders and transitions in accordance with the schedule determined by the business. In addition, operating instructions are associated with the production order that define the operating conditions and limits for the plant while the product is being made.

Transition parameters are maintained within Operating Instructions to support the Transition Management solution. These transition parameters are associated with a production order which defines the required transition between products. This allows key transition parameters to be maintained, verified and updated in advance based on anticipated operating conditions. This greatly simplifies the process of updating these as part of a continuous improvement process.

Operating Instructions also coordinate with the Alarm Management solution to define the operating envelope and corresponding alarm limits.

Alarm Management Honeywell offers a solution to maintain and enforce alarm limits. This application works with the control system to ensure that the correct alarm limits are enforced for the current production order. It also works with the Operations Monitoring solution to ensure that alarm limits are consistent with the operating envelope that has been defined and is being monitored for the current production order.



Operations Monitoring Operations Monitoring provides the tools for an operations department to establish the engineering limits and constraints, to monitor performance against those limits, and to follow-up on performance problems.

Operations Monitoring allows the organization to see how well the plant is performing and categorize deviations that have occurred in order to support a continuous improvement process.

Operator Log Book Operator Logbook provides an electronic logbook to gather relevant operating data – performance, current operating limits, deviations from operating limits and LIMS data. In addition the logbook allows operations to record observations, track a daily to do list and provide information for shift handover.

The log is historized to provide a convenient way to look at performance over several shifts and understand issues that have arisen.

Production Explorer Production Explorer provides the tools for an operations department to capture, review and analyze batch and lot information. The tools are intended to help process engineers understand the correlation between product properties and raw material properties and process conditions during production. In addition, it allows a broad community of users (including operations personnel, process engineers, development groups, and customer service representatives) a convenient way to review all information associated with a production batch.

This application automatically collects the required data, including LIMS data, and provides a convenient set of tools for selecting and analyzing the desired batches.



Production Tracker Production Tracker is used to define, monitor, log and report on material inventory and movements occurring within a facility. Production Tracker is particularly suited to manage and track the production in a complex polymers plant with significant logistics issues related to shipments and receipts of raw materials and products.

Production Tracker can be used to provide inventory calculations and monitoring for inventories – both liquid and solids.

KPI Manager KPI Manager is Honeywell’s solution for managing an integrated KPI System. KPI Manager automates the collection of both target and actual values from a wide-variety of production and business systems; then calculates and reports the actual performance throughout the business – via intranet. KPI results can be calculated and reported on an ongoing basis – even before the official measurement period is complete.



COLLABORATIVE MANUFACTURING With a plant that is delivering more consistent and agile production, it is critical that the business take full advantage of the improved capabilities to ensure that business improvements are sustained. In order to realize this improvement, it is important to enable the business and the plants to achieve a new level of collaboration in meeting customer needs. This is accomplished by connecting the business decisions to the plant (in near real time) and providing improved visibility of production to the business. The figure below illustrates these connections.

Scheduling

Now FuturePast

AdvancedControl




Production Explorer


Procedure Analysis


Procedure Execution


AssetEffectiveness

ERP

Production Orders



Collaborative Manufacturing

Business Hiway Business Hiway integrates ERP systems with Honeywell Unified Manufacturing Solutions. Using Business Hiway, automation of the customer’s business processes can effectively be extended from the ERP & Supply Chain Management environment down to plant production management and operations, and vice versa.

Business Hiway offers comprehensive support for integration with SAP R/3 – included certified interfaces, as well as providing a generic XML interface for integration with other ERP and Supply Chain Management systems.



VALUE PROPOSITION Honeywell believes that these solutions provide real benefits to polyolefins producers that can be translated into measurable value. It is worth a few words to be clear about the distinction between benefits and value. Benefits are observable improvements in the way the plant operates that makes the plant more efficient and safe or people more productive. For example, solutions which free up the operator from mundane tasks and enable them to focus more carefully on value added tasks is of obvious benefit.

Value is derived from benefits which can be translated into a measurable impact on the plant’s performance. This is typically related to a Key Performance Indicator (KPI) that translates into a financial impact on the plant or the business. For example, improvements which translate into reduced offspec material have a direct impact on product cost and improve overall capacity. Most plants will define a KPI for offspec production as one of several that impact overall Operational Effectiveness.

It is worthwhile to note that a variety of solutions (and resulting benefits) may contribute to significant value for the plant and the business. Many solution areas will have an impact on reducing costs (whether by increasing throughput or reducing offspec and transition material). It is also important to recognize that while solutions can have a significant impact, it is the sustained value that is important. Improvements that cannot be sustained, and in fact improved upon, are significantly less valuable than those that are supported by changes in best practices and the information and tools to support a continuous improvement process.

HOW DO THESE SOLUTIONS MAKE A DIFFERENCE? As a way of understanding how these solutions lead to a different way of doing things and real benefits, with real value, let’s look at a couple of examples:

Improved Manufacturing The Challenge The plant has had a significant focus on improving performance for several years and is making real progress as measured by a variety of KPI’s. They have improved the consistency of production and reduced off spec material and transition costs and have improved capacity. These improvements have been achieved through a significant focus on improvements and heroic efforts by key individuals. Some tools have been put in place to sustain these gains, but they rely to a large extent on maintaining an ongoing focus on these improvements. In addition to various external challenges which must be met, most plants are trying to sustain these improvements as they lose experienced personnel.


The key question is this – how can the plant sustain the improvements that have been made and continue to improve on the performance into the future while freeing up resources to deal with all of the distractions that the plant faces?

The Solution With Honeywell’s Integrated Polymers Solution, the plant has the ability to capture, and make repeatable, the instructions, specifications and formulation information associated with the production of each grade and the required transitions. This enables the plant to quickly and consistently translate production orders into a consistent set of operating instructions that can be executed.

This solution compliments applications that help the plant manage transitions, including instructions and activities beyond the reactor, and with advanced control applications used to improve the capacity and quality control of production. The solution also collects production and transition history data to support customer service queries and analysis tools to support continuous improvement. This solution can also be used to ensure that alarm limits are consistent with the production and transition mode for the plant.

Result The ability to support best practices and ensure consistent execution enables a reduction in variability associated with transitions and offspec production. Once a level of consistency is achieved, additional improvements can be consistently implemented using analysis tools which make use of the production and process data to look for areas of additional benefits. This provides increased production reliability for the plant and the business and a platform for additional improvements going forward.

Improved Information The Challenge With open systems and aging control systems becoming the norm, many plants are faced with tremendous challenges in maintaining the availability of critical systems and providing a viable platform to build upon. Plants today face real challenges in collecting the data they require to solve problems and generate the KPI’s that they require to measure and improve the business. Typically, these tools have been developed using spreadsheets and point solutions and have been useful. Maintaining these tools and sharing the information available in these tools remains a significant challenge, however.

Another significant challenge for plants and the business has been the tremendous amount of energy and money spent implementing ERP systems and attending to the “care and feeding” of these systems.

The key question is this – how can the plant move from collecting data and scrubbing it to using information for improved decision making and support for continuous improvement?


The Solution Honeywell’s Experion PKS provides a breakthrough in providing a Process Knowledge System. This enables the plant to bring together information from various control systems, hand held devices and key assets in the plant. In addition, Experion PKS supports the ability to enable personnel from various parts of the plant and business to have access to critical process and production information along with Key Performance Indicators.

Honeywell’s solution portfolio for polyolefins also provides critical information and tools to support consistent production and a continuous improvement process. For example, the production management solutions provide a rich source of KPI’s for measuring and improving the performance of the plant. These tools also provide process and business information.

Result Providing timely, accurate information and enabling each stakeholder to have access to this as required makes the plant and the business able to be much more productive. Spending the time making decisions based on information, rather than building tools to collect the data needed to figure out what is going on, enables more problems to be addressed, more quickly. This results in increases in availability and capacity for the plant.

VALUE PROPOSITION By implementing a comprehensive solution, polyolefins manufacturers can see significant value in the following areas:

Hard Credits Improvement Benefit Value

Institutionalize best practices Improve product consistency

Support for continuous improvement

Reduce time to make new grades consistently

Improved alignment with business

Reduction in inventory

Increase production by pushing closer to multiple constraints

Increase available capacity

Reduce transition times Reduce transition material, offspec material; increase throughput; improve agility

Improve capacity by 2-8%

Quality variability reduction of 50%

Reduce catalyst consumption 1%

Transition time reduction of 30%

Reduce unplanned downtime


Soft Credits Improvement Benefit

Make more timely, accurate information available

Spend less time collecting and scrubbing data, more time using the information

Free operating team to focus on business not ‘fire fighting’

Use supported applications and tools

Reduce cost of compliance and ownership (integrated tools)

Reduced maintenance cost

Increased capacity when market demand is there

Ability to meet more market opportunities with less impact on overall production

Improved reliability may enable the plant to take longer shut downs

Reduction in overtime and energy consumption

Institutionalize best practices Prepare for loss of experienced workers through retirement

Support for innovation Reduce time to make new grades consistently

TYPICAL VALUE Let’s look at some examples using the following assumptions about plant capacity and contribution margins:

Plant capacity = 250,000 MT per year Contribution Margin of Additional Prime Product = 200 $ / MT Contribution Margin of Upgrade from Transition to Prime Product = 150 $ / MT

Increased Throughput (reduced transition time, excluding APC) Assumption: 1% increase in production. Value: increase of $500,000 per year

Reduced Transitions Assumptions: 3% of production is transition material; 30 % reduction in transition material Value: increased $337,500 per year

Reduced Downtime Assumption: 2 days additional production annually Value: increase of $274,000 per year

This suggests a value opportunity in the range of $250,000 - $1,000,000 per facility.


DELIVERING AND SUSTAIN THE SOLUTION Honeywell’s focus in delivering the solution is to understand the areas of opportunity for our customers and tailor the solution to deliver value. Most plants have existing applications in place. Honeywell will work with the customer to assess the value opportunity, determine the components of the solution that have the most value and determine an implementation plan to achieve and sustain the value.

Value

Time

ContinuouslyImprove

ReducedOperational Costs


Design Optimize Life Cycle Support

Optimize Capital

Accelerate BenefitsSustain

Install

The figure presented above indicates an ideal value curve. Some key characteristics worth noting:

Scope – Honeywell will work with the customer to determine the best implementation plan to minimize time to value and optimize the use of capital.

Delivery – Honeywell is able to leverage deep domain expertise on a global basis to help deliver consistent solutions.

Sustained Value – Honeywell provides services to help the customers sustain the value from installed solution. Frequently, without this support, the value will decay over time.

Continuous Improvement – by providing better information, Honeywell’s integrated polymers solution enables the customer to build on the improvements made and look for additional areas of opportunity.

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