TypicalSavingstoanENIOSPalladioCustomer

The information and conclusions in this document, as well as the stated savings of over 3 million dollars per year to be realized by a customer after integrating ENIOS Palladio, regardless of any existing data management system (DMS) in place or available on the market, is based upon results from polling existing customers in the EMEA.

Two basic differentiating factors between ENIOS Palladio and other DMS’s are its ability to create lists of items and the ability to connect discrete items in the plant to sensors and data sources directly from the plant P&IDs. Furthermore, in ENIOS Palladio, complex process system data is managed visually through the use of linked P&IDs, CAD, and Point Clouds. This basic philosophy has been built upon through 25 years of collaboration with the inspection and maintenance offices of refining and petrochemical plants.

Each process plant has its own peculiarities and unique characteristics. DMS software solutions in general are developed to manage generic systems and not designed for the subject of our attention – refining, petrochemical and other process plants. Other DMS’s are usually adapted to the various situations through multiple configurations and customizations. In many cases, due to changes in regional management or acquisitions, owner operators may have a different DMS solution in every one of their plants, and often multiple DMS solutions in a given plant.

Very often the identification codes of the items used in the DMS’s are different or they are variations of those in the official design documents (P&ID’s, etc.) This is often due to the restrictions various software solutions and the tendency for process data sources to be separate and unique to each department or operator. The same part or equipment may be referenced differently between departments or DMS systems in use at a plant. The ENIOS Palladio platform is strictly based on company codes as expressed directly from the P&IDs Through advances in visualization and linking, with Palladio it is not necessary to know “what” an item is to find its corresponding information. Simply knowing “where” it is - in a P&ID, 3D visualization, or geospatially within the coordinates of the physical plant - is sufficient to index all information pertinent to the item or system. This creates a true “point and click” system for managing and finding complex data within a process system or plant.

The savings resulting from the use of ENIOS Palladio are multiple and substantial as summarized below; estimates and conclusions are made from a combination of generally available research information and direct feedback and results from existing ENIOS Palladio customers. The figures below are adjusted to refer to a typical refining or petrochemical process plant with a given output of 50,000 barrels per day of product. This assumes approximately 1,000 pieces of pressure equipment and an on-site workforce of 200 employees.

The results refer to the annual savings of an installed ENIOS Palladio system with a complete set of data and documents, i.e 100% compliance. The areas of savings can be broken down into 10 basic categories:

1. Insurance $50,000 2. Time to Find (TTF) $1,800,000 3. P&ID Management, Maps and Drawings $110,000 4. Report Distribution and Duplication $100,000 5. Geo-spatially Indexed Data Optimization $100,000+ 6. Data Entry from External Sources $100,000 7. Systems Coherence and Extension $100,000 8. Loss of Production Resulting from Delayed Information N/A 9. Production Capacity Reduction and Shutdowns $650,000 10. Document Reconstructions $55,000

Average Estimated Savings per Year $3,065,000

CostSavingsDetail

1. Insurance - $22,000 - $80,000 International brokers polled for this information claim a petrochemical facility with approximately 1000 pieces of pressure equipment has an annual insurance rate of 1.1 to 1.6 million dollars per year. 2% - 5% savings each year can be realized by the insured if

A) Documents submitted to the insurer are immediately available B) Continuous monitoring of agreed risk relievers proven to the insurer ENIOSPalladioprovidesimmediateaccesstodocumentationandconfirmationofagreedprocedures,testingandmaintenanceondemandorinrealtime.

2. Time to Find (TTF) - $1,800,000 The typical time needed to locate corresponding documentation or information for any given piece of equipment in a plant is 4 hours. According to publicly available Nielson research, a typical process employee spends an average of 50 hours per year searching for documents. Assuming a fully loaded cost of $55 per hour, a typical process employee costs the plant $2,750 annually searching for documents. If we include a plant workforce of 200 employees, the cost of searching for documents is equivalent to $550,000 annually. ENIOS Palladio reduces the time searching for documents to minutes or even seconds. This amount does not reflect the savings from an unknown risk related to delayed information that leads to injury, damage, or an unplanned shutdown – which can be in the tens of millions of dollars. Accenture estimates that 42% of process employees use incorrect or out of date information at least once per week. Assuming a per incident cost of $300 for meetings and/or corrective actions, the estimated waste for a plant of 200 employees is over 1.3 million dollars per year. The costs for finding documents that will eventually prove to be untraceable, missing or duplicated are difficult to quantify, on average 38% of the documents will have three or four copies or versions.

The Gartner Group found on average an employee spends 19% percent of their time in managing and researching documents. ENIOSPalladioprovidesamechanismenablinganytypeofdocumentorfilebelinkedorattachedtoitscorrespondingpart,equipment,unit,area,orplant.Alldocumentspertainingtoagivenassetmayberetrievedwithoneclick,orbysimplyspecifyingthelocationoftheitemwithinthephysicalprocesssystem.

3. P&ID Management, Maps and Drawings - $110,000 Although it is difficult to quantify a specific cost associated with having out of date P&ID’s, maps, or drawings, it is undeniable that process operators face an on-going, never ending process of keeping this data type up to date and retrievable. The management of P&IDs alone is a great contributor to decreases in efficiency and increases of risk. All operators interviewed emphasized two direct sources of savings with Palladio 1) Hours spared searching for a particular asset within the drawing set 2) Use of redlines as un-official updates to incorrect P&IDs allows “correct” information to be available at all times, regardless of the state of the P&ID With the help of our clients, and taking into account the direct costs of employees as well as the cost for activities by engineering companies and modifications or revamping, it was estimated that P&ID management costs approximately $110,000 yearly. ENIOSPalladio’sP&IDcentricmethodoflinkingandmanagingprocessP&IDsisasimple,easytousesystemwhichallowsforformalandinformalupdatesandnotes(redlinesormarkups)essentiallysolvingeveryprocessoperator’son-goingproblemwithout-of-dateorincorrectP&IDs,mapsanddrawings.

4. Report Distribution and Duplication - $100,000

Most, if not all inspection, maintenance and monitoring activities conclude with a report of some kind and generate numerous updates and status reports while in progress. Distributing these reports via common methods such as e-mail are very inefficient. Furthermore, distribution lists take time to prepare and manage with multiple copies of the documentation being made and kept separately by the stakeholders. Finding specific reports or the correct version of a report becomes more and more difficult perpetuating the use of outdated or incorrect reports due to the existence of multiple copies and versions sent to differing distribution lists. Although the direct cost to an operator is difficult to quantify all respondents to the survey concur that an average cost of $100,000 per year is not uncommon. This conservative estimate does not include the inherent risk and possibility of a major cost event from the use of incorrect or outdated reporting data. ENIOSPalladioprovidesasinglerepositoryandnotificationsystemforMORreportsanddocumentation.Datastorageisreducedandconfidenceinthesystemisenhancedduetotheabilitytoalwaysaccessthecorrectversionorupdatetoareport.Bysimplysendingnoticeofdocumentavailabilityandaskingfordirectacknowledgementanundeniablesourceofsavingsiscreatedevenifdifficulttomeasureanalytically.

5. Geo-spatially Indexed Data Optimization - $100,000+ Managing complex process systems with traditional “flat” data sources such as relational databases, spreadsheets or interactive retrieval systems are at best just faster than using a file cabinet. Data becomes trapped in silos, outdated and untrusted. Often the same part or equipment will have different key names across multiple systems and the retrieval of needed information is very cumbersome.

By using specific coordinates, such as an element’s x,y,z position, in a geo-referenced space as its index, it is no longer necessary to know what something is, only where it is in order to quickly find and retrieve any pertinent data related to it. Users literally become “one-click” away from accessing data related to a given point of interest. The inverse is also true, with geo-spatially indexed data, information from a given part or equipment can be related visually to that item, for example displaying the temperature of a vessel directly on an interactive P&ID. Additionally, next generation Virtual Reality and Augmented Reality systems require this capability in order to be effective. There are other operational cost benefits of using 3D based retrieval systems, for example overlaying the position of proposed scaffolding with the inspection schedule to enhance productivity. The amount of savings of moving to from a flat database system to a 4D retrieval and indexing system are obvious and recognized by all of the operators interviewed. Although there is no direct research as to the amount of savings realized by moving to a visual indexing system, those interviewed argued that $100,000 per year savings would be a gross underestimation. ENIOSPalladiostandsaloneinthemarketplaceastheonlyvisuallybased,4D,spatiallyindexedsystembuiltfromthegroundupforassetandassetintegritymanagementforprocesssystems.Dataishomogenousbetweenfivemainpointsofaccesseachconnectedandindexedtogether.Datacanbeaccesseddirectlyfromandbetweenaflatdatabasehierarchy,interactiveP&IDs,models,pointcloudsorphysicallocation.Findinganiteminoneinterfacelocatesitinallsimultaneously.ThiscapacitycanbeextendedtotraditionallegacyapplicationssuchasMaximo,SAP,Meridium,etc.greatlyextendingtheirusefulnessandpower.

6. Data Entry from External Sources - $100,000

Inspection, Maintenance, and Repair information is usually provided on paper or within external files, such as pdf’s, from a service provider. The plant workforce is then responsible for loading the contents and all their requirements, suggestions, explanations, findings into one or many flat data systems manually. Often critical information reported in these documents gets buried in the pdf or excel spreadsheets that are either waiting to be input, or will not be input due to error or neglect, essentially making that critical information inaccessible. The ability to internally edit standing reports, import them from templates, and import them into a single data system is a huge source of savings thanks to the reduced data loading costs and efficiencies gained in immediately available information. This is quite important in managing risk and mitigating the possibility that critical data input will be delayed past a failure event. With the advent of the Industrial Internet of Things (IIoT) and advances in remote sensing technology, the ability to directly input generated data directly into the system becomes a crucial necessity. In defining the potential cost savings, we made a very conservative estimate of two employees at $25 per hour inputting data full time into multiple systems for a year. This does not include any of the savings gained by the ability to immediately access loaded data through ENIOS Palladio.

Palladiowasdesignedfromtheground-upforusebyplantoperators.Dataentryisdirect,streamlinedandautomated.Datamaybeinputdirectlyintoreports,transmittedbycollectiondevices,importedfromtemplatesordeliveredbythesensorsofanIndustrialInternetofThings(IIoT)system.Easeofdataentryisamajorbenefitofthesystem.Withnoper-seatcostsorunduecomplexity,userscandirectlyinputandusedataasitiscollected.

7. Systems Coherence and Extension - $100,000 Process operators use a host of information systems to classify and maintain data. Often due to acquisitions or consolidations differing combinations of software solutions are utilized, resulting in information silos, difficulty in finding data, duplication of data and eventually the loss of trust by users of these systems. This creates an expensive and dangerous practice where users begin to concentrate on keeping data within their sphere of influence without regard to its relation or influence on other systems or the “big picture.” Thus resulting in data for a given system or process being held by just a few users, over time this data becomes hidden to the enterprise or lost due to a retirement or transfer of personnel. Capturing the location and history of complex process data is becoming more and more difficult. Process operators are struggling to find a “single point of reference” between their legacy data systems. Adding to the issue of data silos being controlled by a small number of users, the “great crew change” is occurring. Throughout the refining and process industries, older workers kept on during the hiring freezes and downturns are retiring en-masse and are being replaced by a new generation of younger workers without a sufficient overlap of knowledge and experience. Knowledge loss is a major cost and risk factor. Additionally, this new younger workforce demands access to systems, new technologies, devices and workflows typically shunned by previous generations. LinksbetweenENIOSPalladioandinstalledplatformsenabletheinstalledplatforms,suchasMaximo,SAP,toutilizethepowerfulvisualandspatiallybasedsystemasacommonpointofreferencebasedontheactualphysicalitem,oritslocationintherealworld.Considerablebenefitsofinterlinkinginclude;

• Budgetmanagementofinspectionandmaintenanceactivities• Streamlinedworkorderprocesses• Fasterschedulingofmaintenanceactivities• EnhancedcrosscheckingandcompliancetoandwithinP&ID’s• Morecompletedatasetsforanalysisbymanagement-facingsoftwareproducts• Efficient,userfriendlyaccesstocomplexdatasystems

8. Operator Stress and Loss of Production Resulting from Delayed Information – no monetary estimate

The average time to locate a given piece set of data for a specific item is 4 hours. Managers frequently ask staff for documents or information urgently as they cannot access it directly. These workers often have great difficulty finding and retrieving information causing stress and workplace conflict or resentment. Additionally, if the requested piece of information is critical in avoiding an unplanned shutdown or other cost event, excessive time spent locating critical data can have extremely potent consequences for Operators and workers alike. Critical test results may spend weeks or months in-situ between collection and availability to decision makers.

Often the need arises for the output of a process plant to be increased for short periods of time. This can only be done if it is possible to evaluate the current state of the unit and the technical and integrity data. When this is not possible because of delayed, un-locatable, or in-situ data the effort must be abandoned as the decision to increase production increases risk to an unacceptable level without accurate and timely information. In extreme cases where this increased risk is ignored or decisions are based on incorrect, outdated or incomplete data, the decision to increase output can have catastrophic consequences and millions or even billions of dollars in loss. The inverse applies as well, as it is more likely that an operator will shut down a unit unnecessarily due to a lack of faith in integrity data or unit condition. ENIOSPalladioprovidesimmediateaccesstoanydocumentationorinformationassociatedtoapart,equipment,area,unit,orfacility.Furthermore,theintegrationofPalladioprovidesanauditofpastdocumentationwithanexistingpart,equipment,area,unit,orfacilitymakingitpossibletoevaluatethecurrenttechnicalandintegritydataatanygiventime.

9. Production Capacity Reduction and Shutdowns - $650,000

During operation over a year, a single unit will frequently face critical issues which need to be solved. The lack of immediately accessible information often leads to a reduction of production capacity or worse, a temporary shutdown of the entire unit. Over the duration of a year, unit capacity loss is equivalent to 2 to 3 days of lost production - either through limited production capacity, or temporary shutdown. It is estimated that a day of non-production from a single unit is equivalent to a loss of $222,000. This compiled with the fact that a facility will have multiple units all experiencing similar issues with equivalent production losses begins to show the economic impact of the lack of immediate access to up to date technical information to solve critical issues.

WithENIOSPalladio’susercentricP&IDmethodoflinkingdocuments,reports,inspections,andotherassociatedinformationaswellasitsabilitytobelinkedtootherenterprisesoftwaresuchasSAPorMaximo,usersalwayshaveimmediateaccesstotheuptodateinformationneededtoassesscriticalissuesandreduceunwantedreductionsandshutdowns.

10. Document Reconstructions - $55,000

An estimated 81% of business documents are not consulted due to insufficient knowledge of their existence, whereabouts, or improper storage, these documents are often deemed non-existent. In the cases where these documents are needed for technical, insurance, or litigation purposes, the documents must be recreated. Recreation of documentation can be a costly process involving site surveys, technical inquiries, plant and labor downtime, and other unplanned production complications. Plant operators estimate more than $55,500 a year is spent reconstructing documents not including the cost production losses due to the process.

ENIOSPalladiocreatesarepositorywithimmediateaccesstodocumentationorinformationassociatedtoapart,equipment,area,unit,orfacility.WithintegrationintoenterprisesoftwaresuchasSAP,Maximo,etc.anydocumentcanbefoundandreferencedwithinmomentsremovingquestionsofexistenceorimproperstoragethatwouldleadtoarecreationofneededdocuments.