Presented by: Abdul Waheed – Reliability Engineer Qurayyah Sea Water Maintenance Division May 3, 2009

1. Equipment Reliability Initiatives and Challenges Qurayyah Sea Water Maintenance Div May 3, 2009 “Safety is a Measure of Success” Presented by: Abdul Waheed – Reliability Engineer Qurayyah Sea Water Maintenance Division May 3, 2009

2. The Ultimate Goal – Reliability Excellence Safety is a Measure of Success

3. Outline Our Strategy to Build Reliability Current Initiatives • Elimination of ‘Bad Actors’ (Frequently Failing Equipment) • Deployment of Enhanced Business Processes • Developed Forms for the use of Reliability Engineers Challenges Rapid Improvement Teams Way Forward Safety is a Measure of Success

4. SUSTAIN IMPROVE STABALIZE Eliminate‘Bad Actors’ Enhance Business Processes Capture Knowledge Improve SAP Data Quality Our Strategy to Build Reliability Achieve and Sustain Best-In-Class Performance Expand Improvement Opportunities Continuous Awareness & Team Building Monitor Results Max Systems & Resources Utilization Deploy Predictive Maint Tools Optimize Preventive Maint Optimize Contract Services Optimize Support Services Journey Towards Maintenance & Reliability Excellence

5. Outline Our Strategy to Build Reliability Current Initiatives • Elimination of ‘Bad Actors’ (Frequently Failing Equipment) • Deployment of Enhanced Business Processes • Developed Forms for the use of Reliability Engineers Challenges Rapid Improvement Teams Way Forward Safety is a Measure of Success

6. Current Initiatives Elimination of ‘Bad Actors’ (Frequently Failing Equipment) • Shipping Pumps G-7101 – G-7801 • SO2 Gas Fan • Column Bottom Pumps Safety is a Measure of Success

7. Shipping Pumps Trips 2008 – 2009 1st QRT Data Source: SWED Trip Report & Operations Logbook (Period: Jan 2008 – March 2009) Mean Time Between Failure: (MTBF) Current MTBF: Desired MTBF: 1.5 Months 60 Months Safety is a Measure of Success

8. Shipping Pumps – Action Plan Safety is a Measure of Success

9. Bad Actor- SO2 Gas Fan Recommendations: • Short-term- Change Preventive Maintenance interval from 12 to 3 Months. • Long-term- Implement engineering design package (under development) to eliminate the process upset • Status: ETC: TBD Safety is a Measure of Success

10. Bad Actor- Column Bottom Pumps • Root Cause: • Premature Failure of Pump Wear Rings and Anti-Rotation pin due to inappropriate “Material” (Nitronic -60) causing “High Vibration” • Short Term Plan: • Sent old wear rings to CSD Metallurgy Specialist for Analysis. – Waiting for recommendations • Overhaul five (5) pumps module 15 – 19 and replace the wear rings and anti rotation pins, fabricated from correct material • Long Term Plan: • Inspect other nine (9) pumps module 20 – 28 and replace wear rings • Inform MS to contact the vendor for correct material wear rings and stocking action Safety is a Measure of Success

11. Current Initiatives Deployment of Enhanced Business Processes Reporting PM finding – Early detection of problems Old Process New Process Maintenance Planner & Foreman PM Crew PM Supervisor Operations Foreman Maintenance Planner & Foreman PM Crew PM Supervisor Operations Foreman Reports Deficiencies Create SAP Notification Approves SAP Notification Plan & Schedule Reports Deficiencies Develops Monthly Report Creates Notification Plan & Schedule Reviewed by PM QA /QC No Tracking & Feedback Safety is a Measure of Success

12. Current Initiatives Deployment of Enhanced Business Processes Equipment Trips Reporting and Tracking Current Process No E- Process, Trip Sheets are manually filled and Tracked. Operations Staff Plant Foreman Plant Engineer Maintenance SAP M2 Notification Comments Comments Findings Root Cause Evaluation New E-Process Reliability Engineer’s Evaluation and Tracking Safety is a Measure of Success

13. Current Initiatives Deployment of Enhanced Business Processes Maintenance Rework Tracking Definition Current Process Any maintenance work repeated due to same “failure mode”within three (3) months from last completion No Business Process Exists. No Tracking or Reporting Mechanism available Operations Staff Plant Foreman Reliability Engineer Maintenance Rework Notification Comments Comments Findings Issues Finding & Recommendations Report New E-Process Reliability Engineer Evaluates and Tracks through KPI Safety is a Measure of Success

14. Current Initiatives Developed Forms for the use of Reliability Engineers Preventive Maintenance Deviation Maintenance Rework Bad Actor – Root Cause Analysis and Recommendations To track frequently failing equipment – coordination for Root Cause Analysis and recommendations tracking To track the PM delays due to Operational requirement To record the findings and corrective action taken for any maintenance rework Safety is a Measure of Success

15. Outline Our Strategy to Build Reliability Current Initiatives • Elimination of ‘Bad Actors’ (Frequently Failing Equipment) • Deployment of Enhanced Business Processes • Developed Forms for the use of Reliability Engineers Challenges Rapid Improvement Teams Way Forward Safety is a Measure of Success

16. Challenges • Firefighting – Reactive Maintenance Culture – Low Schedule Compliance • Historical data for ‘Failure Analysis’ is not available • Lack of Quality Assurance • Incomplete Equipment SAP Database and Bill of Materials • Equipment without PM program • Lack of Condition Monitoring Tools and Skills • No defined Maintenance Strategy to transform from PM to PdM • Non availability of Standard Job Plans • No Reliability KPIs deployed Safety is a Measure of Success

17. Outline Our Strategy to Build Reliability Current Initiatives • Elimination of ‘Bad Actors’ (Frequently Failing Equipment) • Deployment of Enhanced Business Processes • Developed Forms for the use of Reliability Engineers Challenges Rapid Improvement Teams Way Forward Safety is a Measure of Success

18. Repaid Improvement Teams Enhance Equipment Trip Tracking and Monitoring • Deploy new business process and Reliability Tracking Forms • Conduct SAP awareness sessions • Develop a ‘Best Practice’ • KPIs and Monitoring • Involve Crafts in RCA • Audit SAP M2 Notifications Scope Champion : Abdul Waheed Reliability Engineer Safety is a Measure of Success

19. Repaid Improvement Teams Improve the ‘Quality’ of Equipment Repair History and Knowledge Sharing • Arrange training workshops • Develop template for quality history input • Develop ‘Quick Reference’ pocket books for crafts • Facilitate SAP authorization for Quality data Scope Champion : Salah Al-Shihri Maintenance Foreman Safety is a Measure of Success

20. Repaid Improvement Teams Improve the Planning & Scheduling Process and Manpower Utilization • Facilitate the Schedule Compliance Improvement • Measure the current manpower utilization and improve the process • Deploy a system for Crafts daily assignment through work ticket. • Identify the causes for Material delays Scope Champion : Khalid Al-Shehri Reliability Engineer Safety is a Measure of Success

21. Repaid Improvement Teams Improve the SAP Equipment Data Quality and Bill of Materials • Establish an action plan to improve the SAP Equipment data quality • Link Bill of Materials and e-copy of equipment manuals / URL of smart drawings • Assign appropriate PM for the new equipment through PM Coordinator. Scope Champion : Mohammad Al-Garrash Reliability Engineer Safety is a Measure of Success

22. Repaid Improvement Teams Lead the PM Quality Team • Develop PM QA scope • Tour Plant and identify deficiencies from Maintenance Perspective • Track and Monitor the deficiencies reported by PM Crew • Balance PM workload for next year Scope Champion : Mohammad Al-Fadhal Maintenance Foreman Safety is a Measure of Success

23. Repaid Improvement Teams Contracts Optimization and Effective Utilization • Develop guidelines for stepping jobs to Contractor • Deploy KPI to track and monitor the emergency mobilization • Monitor repeated work on ‘Short Form Contract’ and peruse for a Long Form Contract Scope Champion : Hani S NogaidanContracts Engineer Safety is a Measure of Success

24. Outline Our Strategy to Build Reliability Current Initiatives • Elimination of ‘Bad Actors’ (Frequently Failing Equipment) • Deployment of Enhanced Business Processes • Developed Forms for the use of Reliability Engineers Challenges Rapid Improvement Teams Way Forward Safety is a Measure of Success

25. Way Forward • Continue on Quarterly Reward and Recognition for Maintenance Crafts in taking the “Proactive Maintenance approach” • Involve Maintenance Crafts in improvement projects • Continue capitalizing on PM findings to develop appropriate Maintenance Strategies • Strengthen the PM QA process • Conduct PM optimization using PMO 2000 in 2011. • Deploy Predictive Maintenance Tools (IR Camera – Ultra sound) • Deploy Wireless technology for Vibration Monitoring • Purchase hand held vibration monitors • Strengthen the OCM Program Safety is a Measure of Success

26. Current Reality Scattered knowledge Inconsistent actions What Maintenance Work? At What time? Safety is a Measure of Success

27. consistent action business process and practices actionableknowledge Consistent organized way to capture and use Knowledge & Information InformationSystem provides easy access to a Common Knowledge Repository The Right Work at The Right Time Future Outlook Safety is a Measure of Success

28. “We are what we repeatedly do. Excellence then, is not an act, but a habit.”~ Aristotle, 4th century BC Greek philosopher Thank You Safety is a Measure of Success

29. Safety is a Measure of Success