Chasing Value is a continuous process

1© 2008 OSIsoft, Inc. – Japan Seminar 2008

Chasing Value is a continuous Chasing Value is a continuous process.process.

2© 2008 OSIsoft, Inc. – Company ConfidentialJapan Seminar 2008

Abitibi Consolidated Energy Management System


MONTREALFORT FRANCES

KENORA

THOROLD IROQUOIS FALLS

FORT WILLIAM

IMO connection

APIPI APIPI Hub

Env. Canada

E-Notification

ACI/Energy Management Systema guided tour


LPM Graphs

TOTAL NET LOAD

TOTAL LOADGENERATION

LOAD BY SECTOR


Load

AGGREGATE


IF (Demand)

MONTHLY CALENDAR PEAK MONTHLY PEAK ON PEAK


TOR (Weather)


IF (Actual VS Plan)

LOAD PLAN

7 DAYS LOAD PLAN

GENERATION


Market Demand

MONTHLY PEAK


IMO Pricing


IMO Pricing - Alarm


IMO Triggers


Natural Gas


Crude Oil


NG & CO Summary


Future


• Abitibi was able to build this system with internal resources, at a cost of $77,000

• The system was eventually used to determine when to make power (and sell to the grid) vs when to make paper.

• Savings from the system were in excess of $1,000,000 in the first year of operation.


Real Time Costing at Weyerhaeuser

( Leads to Overall Performance Measurement )


Monticello Price Forecaster #2

19

GRAND TOTAL DIRECT COST PER CW TON- APRIL ESTIMATIONS -

$89.13 $95.64 $102.10 $104.89

$15.57$16.69

$17.73 $18.39$21.00

$21.00$21.00 $21.00

$5.00$5.00$5.00

$5.00

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

75% Std. (2366) 90% Std (2840) Std (3155) Record (3300)

Total Paper Production, CW Tons

Fiber Energy Chemicals Other

$130.70

$149.28$145.83$138.33


Real Time Performance Direct cost is just one source of input data

As machine speed increases –

a) There are more maintenance problems

b) There are more quality problems

c) There are more operational problems

The PI System can help gather all of the relevant data for analysis and performance improvement


Determination of Paper Machine Sweet Spot


Use of PI at CEMEX


• Operations in 50 countries across four continents.• Annual production capacity of more than 93 million metric

tons of cement • Annual production levels of approximately 74 million

cubic meters of ready-mix concrete and 166 million metric tons of aggregates.

• 66 wholly owned cement plants• minority participation in 11 cement plants• more than 1,900 ready-mix concrete facilities, • 394 aggregate quarries• 258 land-distribution centers• 80 marine terminals

CEMEX is a growing global building-solutions company that produces, distributes, and markets cement, ready-mix concrete, aggregates, and related building materials …


Eliminate Automation risks due to

obsolescence?

Preserve AutomationAssets and extend

their lifetime?

Reduce capital requirements?

The industry’s accelerating rate of change affects the Automation assets; additionally, global competition demands the optimization of the operations using Automation and Control Systems …

Eliminate information barriers?

Empower personnel?

Create a collaborative environment?

Comply with regulations?

Maximize operationaleffectiveness?

Increase asset utilization?

Reduce cost and increase profits?

Be open yet secure?

How To?


The CSAP Initiative covers the two bottom levels (Process Control and Real-Time Information) of the typical pyramid describing the information flow …

PROCESS CONTROL LEVEL

REAL TIME INFORMATION LEVEL

ENTERPRISELEVEL

MANAGEMENT LEVEL

CEMEX Strategic CEMEX Strategic Automation PlanAutomation Plan

Process Control Systems (PCS)

Plantwide Information Management System (PIMS)

Advanced Process Control (APC)

Cyber-Security


CEMEX Model

Maintenance ProcurementMarketing

&Sales

Logistic

Quarry &Crushing

RawMilling

Pyroprocessing

CementMilling Packing

PIMS

ERP

Advanced ProcessControl

Statistical ProcessControl

Advanced ProcessControl

Statistical ProcessControl

Maintenance HumanResources

Quality, Operations and

Production Applications

Quality, Operations and

Production Applications

PIMS

Process Areas


The added value is a better knowledge of our operations by transforming data into information, and information into Knowledge …

Information KnowledgeData

Flows Temperatures Pressures Powers Feeds Emissions Physical and chemical

analysis

Receipts Consumptions Productions Sales Costs Product quality

Productions Energy consumptions Energy and material

balances Operation & Quality

reports Preventive maintenance Environmental control Shutdown analysis

Key performance indicators

Production reports (daily, monthly, yearly), by:

Plant Region Country

Better process knowledge

New operation practices Decrease energy

consumptions Shutdowns reduction Increase equipment

availability

Operation margins

Strategic planning

Benchmarking between business units

Transfers better operation practices


Benefits from the use of the PIMS System are appearing, as long as we move forward with the implementation; we expect more benefits as soon as more people are trained to use the system …

Less time to collect info: 20% of the time to obtain information and 80% for analysis and conclusions.

Key Performance Indicators in Real Time. Improved process knowledge. Ability to convert one of the most powerful corporate

assets – data – into knowledge. Common language for staff and technical employees. Improved communication across the organization. Prepare our facilities to integrate Plant Data with

Enterprise and Institutional Systems.


In conclusion, global companies must be committed to the use and the further development of Industrial IT Technologies; and the PI System is a valuable tool to achieve this objective …

PIMS System in CEMEX, based on the PI System, contributes to:

Eliminating the barriers between process control system, people, and institutional systems.

Integrating information from many sources.

Providing a common structure to encapsulate business rules.

Empowering people through valuable process and operation information.

Documented savings after first year operations $5 million


Six Sigma Study on Chip Qualityat Irving Forest Products


The Opportunity Reported Problem

– Dirt in chip supply– Six Sigma Quality Improvement initiative started

Related problems

– Material availability impacting production schedules at the mills

– Transportation scheduling problems related to chip pick-up from sawmills


Solution Ultrasonic sensors installed in chip silos and fed to central

PI System

Pertinent data brought to one central system– Chip inventories at the sawmills– Production schedules at all mills– Location and status of transportation

Using the new system one person took over the coordination of operations (in place of a dozen people)

All problems solved


Quality Improvement at Applied Extrusion Technologies


Applied Extrusion Technologies Largest Supplier of OPP in North America Sales in excess of $275 Million Over 500 customers Over 80 different product groups


Business Challenges Improve Profitability

– Over capacity in the market place. – Falling Prices – Rising energy cost. – Record high raw material costs.– Work force reductions.– Increased customer performance demands


Improvement Strategy Use Sigma principles to improve quality and

reduce cost within manufacturing.

DMAIC – Define – Measure – Analyze – Improve – Control


Identify Financial Opportunities Pareto analysis identified film profile to be

the largest improvement opportunity. – #1 Customer Complaint Category– #1 Internal Quality Reject Issue– #1 Yield Loss– Significant FFU requirement


Analysis Applications Real Time Profile Quality Report (RTPQR)

– Real time feedback to operator.– Trigger corrective action.

Enterprise Profile Quality Report (EPQR)– Summarized by mill roll lot.– Customer Fitness-For-Use.– Slitter operator decision support

Process Book Displays– Process monitoring.

PI Profile – Detailed scan by scan analysis


EPQR Web Application


Real Time Report


Pi Profile View


Measure Floating Profile


Identify Process Variability


Project Results Elimination of root causes for variation. New insights into interaction between HVAC

control and process control. Losses for profile flatness were reduced by 70%

with annual savings of over $300,000 on one line. Customer complaints isolated to small individual

roll occurrences. Record low Return Rate of .11%


Overall Results PI and F.L.A.T system have now been installed on

six lines accounting for over 75% of our production capacity.

Through improvement projects we have driven down internal flatness losses by an average of 50%.

Increased production rates due to the reduction in variability.

Customer complaints and return rates at record lows.

Annual benefits in excess of $5 million


Input Cost Reduction at Cascades


Energy Inputs Numbers at CascadesEnergy Inputs Numbers at Cascades

Big Total: 36 MGJ - Big Cost: $500 MillionBig Total: 36 MGJ - Big Cost: $500 Million

Steam6%

Steam Residues

15%#6 Oil

6%

Wood31%

Electricity16% Natural Gas

26%


Results from using PI


The Bottom LineThe Bottom Line

• The PI System was deployed to monitor The PI System was deployed to monitor all inputs in real time.all inputs in real time.

• Once deployed Cascades expected to Once deployed Cascades expected to reduce input costs by 2%reduce input costs by 2%

• They achieved 3% within one year and They achieved 3% within one year and now the target is 10% within 5 yearsnow the target is 10% within 5 years

• With input costs of $500 Million per year With input costs of $500 Million per year the annual savings are enormous.the annual savings are enormous.


Summary There are 1000’s of ways to derive value with the

PI System. As outlined earlier, results can be enhanced if you

follow the examples set by our successful customers.

Stakeholders Vision Framework Infrastructure Small projects Publicize results Enterprise Agreement

51© 2008 OSIsoft, Inc. – Japan Seminar 2008

The EndThe End

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Chasing Value is a continuous process