SmartPlant® 3D Materials Handling

Taylor D. ColeTaylor D. ColeVice President, IntergraphVice President, IntergraphGlobal Metals & Mining Industry Global Metals & Mining Industry

676872

2007 2015

3544

54 66

2007 2012 2017 2022

1926

33 38

2007 2012 2017 2022

8441136

1421 1624

2007 2012 2017 2022

Global Outlook - Commodities

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

Global Seaborne Iron Ore Global Copper

Global Aluminum Global Seaborne Coal

2 X 2 X

2 X 1.3X

Materials Handling Problem

Time to Market Solution:Work-sharing Skilled Resources

Higher Productivity and Quality for Same Hours

Re-use of Design

Reduce Interfaces and Re-work

Supply Chain Efficiency Vendor Integrated

Problem

2008 2015

Prod

uctio

n

Time to Market

Demand

Supply

Enablers:Technology: Intergraph SmartPlant Enterprise Workflow: Front-end Loaded and Rule Based

Standardisation: Intelligent Re-usable Catalogue

Leverage: Synergies with Other Industries

Accuracy: Total Installed Schedule and CostOptimise: Layout, Pre-assembly, Design Std’s

Safety: Reviews: Hazop, Constructability, O&M

Knowledge: Asset Lifecycle and Re-use

Benefits:

– 4 –

Business Values for Change

““ …… over 80% of a projectover 80% of a project’’s total cost are committed withins total cost are committed withinthe first 20% of the total projectthe first 20% of the total project’’s design time s design time …”…”

Profit

Time

FasterStart‐up

TraditionalStart‐up

CapitalCost Savings

FasterProfitability

IncreasedProfit

Traditional Project Cost/Breakeven Curve

Digital Plant Project Cost/Breakeven Curve

Cost

ReducedCapital Spend

CapitalCost Savings

ConceptualDesign

DetailedDesign

Fabrication &Construction

Commission& Test Plant Operations & Maintenance

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.

Plant Hand-over

Plant Lifecycle

Intelligent Design Reduce Time on Task

• Comparison• Microstation

• Old technology [1980’s]

• 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 specifiedSolution concepts established and tested

Initiated solution configuration and developmentConcept proved - confidence to continue

Pilot project for ‘project readiness’objective

SmartPlant 3D Materials Handling Benefits for Projects and Assets

Schedule

Standardisation

Workflow

Interfaces

Productivity

Cost

Optimisation

Re-use

Wastage

Rework

Risk

Work-share

Tracking

Forecasting

Integration

Safety

Reviews

Pre-assembly

Simulation

Education

Knowledge Management and Re-use

Handover and Asset Lifecycle

SmartPlant 3D Materials Handling Conveyor Design Workflow

Current Scenario – Profile & Data Sheet Drawing

Solution – Conveyor & Parts Catalogue Specification

SmartPlant 3D Materials Handling Chute Catalogue Workflow

Current Scenario – Chute Arrangement Drawing

Solution – 3Di Design to Catalogue and Re-use

SmartPlant 3D Materials Handling Benefits for Projects and Assets

Schedule

Standardisation

Workflow

Interfaces

Productivity

Cost

Optimisation

Re-use

Wastage

Rework

Risk

Work-share

Tracking

Forecasting

Integration

Safety

Reviews

Pre-assembly

Simulation

Education

Knowledge Management and Re-use

Handover and Asset Lifecycle

SmartPlant 3D Materials Handling Knowledge Management & Re-use

Critical Information Transfer

Design

Operate

Commission

Build

Critical Feedback Loop

Critical Feedback Loop

Critical Information Transfer

Critical Information Transfer

SmartPlant 3D Materials Handling Knowledge Management & Re-use

Design

Operate

Commission

Build

SmartPlant® Foundation

Application Integration

Engineering Data Handover

Engineering Information Management

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 W/ SPE ChangeSales (Revenue) 1,000 1,020 +2.0%Less:Operating CostDepreciation

- 500- 100

- 494.7- 85

-3.0%-15%

Operating Profit 400 440.3 +10.1%

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).

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. ColeVice President, Intergraph Global Metals and Miningtaylor.cole@intergraph.com