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Can we compromise SAFETY to drive Productivity ?

CASE STUDY : Safety. Productivity. Profitability.

Can operators have the best of both worlds – to reduce Risk and

increase Profitability ?

Alvin CJ Chin – Sales Director

HIMA Paul Hildebrandt GmbH + Co KG

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Safety is Paramount

- Your Business is committed to Safety

April 2010,

Deepwater Horizon Macondo Blowout

Jul 1988 , Piper Alpha –

North Sea Aug 2009 , Montara WHP & Rig Fire

27 Jul 2005 , Mumbai High North

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Profitability is equally important !

- Your business depends on productivity

The cost of safety is tied directly to the profits of a company.

If it is an unsafe company - almost certainly pay out more in

Occupational Safety and Health Administration (OSHA) fines, lawsuits

and attorney's fees and also for increased insurance premiums than

needed.

All of these payments directly affect the bottom line.

Owners / Operators constantly balancing between increase

profitability i.e. driving up plant productivity and yet not compromising

safety !

Today , every safety case must drive profitability.

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Initial process design

Selection of reliable equipment

Implementation of the most efficient maintenance routines

What drives plant productivity and profitability?

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Market demands & price level

Constant plant uptime

Controlling operating costs

Efficient operations

What drives plant productivity and profitability?

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How can a safety system

improve your plant

productivity?

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An “ideal” safety system must never be the cause of a

shutdown – for ANY reason.

FPSO Owners / Operators

become accustomed to

unnecessary shutdowns

as a result of

Spurious trips

Periodic proof tests

Hardware and software upgrades

Common cause failures

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Save $$$ - only buy what is needed

-> system must be scalable

Save $$$ - reduce lifecycle costs

- > operating Nonstop

Save engineering $$$

- > using a flexible, intuitive and easy

adaptable platform

Already, FPSO Owner‟s expects suppliers to consider

Capital Cost and Operational Expense. Why?

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What‟s needed NOW and in the future?

A safety system that will deliver

100% availability and never

affects plant uptime.

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A safety system that will help you

to generate more revenue.

What‟s needed NOW and in the future?

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What‟s needed?

A safety system which supports a

business case to reduce

PURCHASE COST ( CAPEX )

and

OPERATIONAL EXPENSES

(OPEX )

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HIMA understands what is needed in the Future

Introducing HIMax:

The first safety system that improves

productivity and profit.

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Improve business

performance

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Why HIMax ? – Save you $$$$

Availability - 100% system availability for the life cycle of your

project

Flexibility - 100% on-line hardware, software and operating

system changes -> nonstop …no need to shutdown the plant

anymore !

Performance – Unrivaled performances with the latest state of the

art technology

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The XMR® difference

XMR®:

Moving beyond TMR fault tolerance

and functionality

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Never need to turn system off – for the life of the

plant

100% system and plant availability through:

Availability – HIMax stays on NON STOP

What is the financial impact of

an unwanted plant shutdown?

Perform mandatory On-line proof testing.

Allows user to carry out ANY Modification ONLINE when

plant is in operation :

- Operating System Upgrades

- Add or delete of ANY parts of User Program

- Add or delete of Communication Protocols

- Add or delete of CPU Modules

- Add or delete of IO modules

- Add or delete entire hardware, racks and cabinets

No-single-point-of-failure architecture design.

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The XMR advantage

Always SIL 3 – no restrictions even in “simplex” configuration

Scalable availability with more levels of fault tolerance than any other architecture

CPU and I/O support 4-3-2-1 operation without “degraded” safety or time limits

Spurious trips eliminated

Highest availability – even with very long MTTR

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Engineered for flexibility and productivity

MODULARITY ARCHITECTURE BENEFITSMODE OF OPERATION

XMR®

X = 1

SIL = 3

Single inputs

Single outputs

Single CPU

Safety architecture for process

facilities which do not need

redundancy.

Most widely used safety architecture

providing absolute safety and

availability.

X = 2

SIL = 3

Dual inputs

Dual outputs

Dual CPU

Traditional architecture (TMR) which

can provide similar safety and

availability characteristics as X=2. For

customers who „require‟ TMR

technology.

X = 3

SIL = 3

Triple inputs

Triple outputs

Triple CPU

Application that provides maximum

common-cause hardware protection

and maximum availability.

X = 4

SIL = 3

Quadruple inputs

Quadruple outputs

Quadruple CPU

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connect red system bus

NONSTOP advantage – plant upgrade

Main steam boiler

(running)

New AUX boiler

(remote I/O)

DO

WN

LO

AD

CH

AN

GE

FA

T P

RIO

R

TO

IN

ST

AL

L

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connect red system bus

NONSTOP advantage – SIS upgrade on-line

Original ESD

(2008 – V3.3)

Plant expansion

2012 - V4.5

Up

gra

de

OS

to

V 4

.5 o

nli

ne

FA

T P

RIO

R

TO

IN

ST

AL

L

New functionality

New functionality

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NONSTOP advantage

Typical plant experiences several days lost production over its lifetime due to

unplanned downtime to maintain SIS

HIMax gives you that production, revenue and PROFIT back

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A system that future-proofs your initial investment:

Fully on-line expandable.

Buy only what is required at the start of the

project – CAPEX savings.

Expand your system as your plant or project

grows

Replace modules, software and OS on-line.

Flexibility - unrestricted on-line changes

What is the financial benefit

from the ability to make

unlimited on-line changes?

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Unrivaled system performance

10 ms 50 ms 100 ms Cycle Time(Scan Time)

50

1000

2000

I/O points

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High performance & high capacity

Single controller set supports 16 base plates and up to 200

modules

Max I/O per controller set is ~ 12,000 points

Up to 256 controller sets can be networked into a single

safeethernet network

Power PC microprocessors in every module

Direct processing of I/O onboard I/O module

Unlimited floating point & other complex calculations

Application complexity almost no effect on scan times

Parallel processing & Multitasking in single controller

Power to apply model predictive control principles to safety

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Emergency Shutdown Systems (ESD)

Burner Management Systems (BMS)

Fire & Gas Systems (F&G)

Turbo machinery Control (TMC)

High Integrity Pressure Protection Systems (HIPPS)

HIMax – for all process safety & critical control

applications

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HIMax References

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HIMax installations

Evonik Degussa

Torch control

Chemical Plant

Ineos, Cologne

Centralising CCR

Refinery, Special Chemicals, Plastics

Ineos, Wihelmshaven

Ship loader

Refinery, Plastics

Vinnolit, Gendorf (Infraserv)

Compressor control

Chemicals, Chlorine

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HIMax installations

MiRO, Karlsruhe

Burner Management

Refinery, Petrochemical

OMV, Burghausen

Water Jet Cutting

Refinery, Petrochemical

Shell, Hamburg & Sarnia Canada

Wastewater Utility

Refinery, Petrochemical

ExxonMobil

HIPPS, ExxonMobil Baytown

ESD , Fawley Refinery

Boiler, Antwerp

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HIMax installations

Angola LNG

HIPPS

Bayer MaterialScience, China

TDI, TDA, DNT/SAC Plants

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HIMax installations

Yara, Brunsbüttel

Ammonia-Plant

Fertiliser

Holborn, Hamburg

Oven and SPC-Plant

Refinery, PE-Plant

Mauell, Velbert

Burner Management

Power-Station, New Plant

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HIMax Project In-progress

Inpex /TOTAL Icthys Browse, Australia

LNG Development

Onshore and Offshore

Koniambo , Australia

Nickel Steel Plant

TOTAL E&P Congo

Onshore Platform

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Conclusion

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Choosing the right Safety Instrumented System (SIS )

A SIS that drives plant profitability

A SIS that have maximum availability to the plant critical

systems

A SIS that improves lifecycle costs

A SIS that achieve maximum safety (SIL3) to protect plant,

people and environment

A SIS that keeps OPEX costs to a minimum yet only shutdown

on real process demand –i.e. does not shutdown for any other

reasons, including SIS lifecycle activities

Key factors to consider :

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How to get what you want ?

Think long term

Do not be short sighted - cutting costs by implementing the minimum

requirement to satisfy regulatory requirements saving initial costs of project

simply by delegating the most critical decision that drives plant safety and

profitability to either a third party contractor such as EPC or MAC ( Main

Automation Contractor) that have short term interest in the entire life cycle of the

plant

It is vital to note that the SIS has final control over whether the plant runs or

shutdown. It has ultimate control over production process as it ties into the heart

of plant operation in view of its overriding safety functions.

Be in control of specifying the right SIS

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Return on Assets

Commonly – Finance team looks at ROI ( Return on Investment )

ROI – Ineffective tool for evaluating ; does not take into account

the consequences of a sudden breakdown, process trips or

failures.

ROA – Return on Assets is a better measure.

ROA defined as ROA = Operating Income / Total assets

The higher the ROA , the more efficient the plant is using its

“assets” -> A Safety System that operates NONSTOP certainly

will be contributing to a positive ROA.

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Conclusion

The power is in your operator/ owner hands

If you want a high-end made car ( eg. BMW ), but only specify

something with 4 wheels and engine and then pass to a

middleman to source it, don’t complain when a second hand 3rd

world made car appears on your driveway !

You need to take control , test drive and specify what you want

.

Review each asset – how does interruptions affect plant

operations and hence profit ?