Optimization of RiskNIS Package B: Summary of Achievements and Analysis of Savings in Maintenance and Inspection Plannin

1. Finalization of RiskNIS Package B: Summary of achievements including analysis of savings in investment in maintenance and optimized inspection planning June 2, 2010Novi Sad / Belgrade

2. Summary of main achievements • All main goals achieved • All indicators* well over 100%: • More components (RNS, RGE) • More analyses (Level 3 for all!) • More education • New results: • NPV-based analysis of savings • Analysis of alternative inspection plans • Upgraded tool (Russian, new modules, new interface …) • Summary: • RNP – whole FCC plant(scope as planned, more analyses, see the dashboard) • RNS – uljara (not in the initial plan) • RGE – whole plant (not in the initial plan) *NOTE: Some results yet to be uploaded – more available!

3. Status in the overall project ?  May 2010 ?     

4. List of main results so far (A + B) • Feasibility Study • 37 questionnaires (the “1,000 RiskNIS questions”); available: 6 folders with detailed results, 1 summary report • Training and education • Courses + certifications RBI, RCM/RCFA and HSE; available: 3 folders with full course materials (text, CD, transparencies) • Training abroad • Combined with ESPRiT • Other additional work, not planned … but done WITH A GOOD REASON! available: in the reports above • Extended feasibility study • 10 bad actors >> linking RBI with RCM/RCFA, also linking to HSE • linking to the investment plan >> customer’s savings oriented service! • analysis and updating of the QA procedures • Preparation for the extension “Occupational Safety (OSHA/HSSE)” • Training & education – 1 RBI, 1 RCM and 2 HSE course more than planned • SOFTWARE ALSO IN RUSSIAN • ECONOMIC ANALYSIS - INVESTMENT IN INSPECTION AND MAINTENANCE • RBI • Management system: 5 major units; available: 1 folder with detailed results, 1 summary report • API unit-based analysis: 65 units; available: 2 folders with detailed results, 1 summary report • API : over 2,500 components overall, out of which ca. 200 “bad actors”, out of which ca. 20% related to the investment plan; available: 1 summary report • RCM/RCFA • 50+ units x “10 BA” = 200 BA approx. ; available: 1 folder with detailed results, 1 summary report • Detailed analysis for approx. 200 components (prioritization in FCC!) ; reports available on-line • HSE • Draft basic Seveso report RNP; available: 1 folder with detailed results, 1 summary report • 5 HAZOPs in FCC RNP; available: 1 folder with detailed results, reports available on-line • 2 Scenarios for QRA defined, QRA; available: 1 folder with detailed results, 1 summary report • Seveso reports + HAZOPS for Platforming RNS and RGE, reports available on-line

5. Overview of economic indicators • Cash flow in a corporation • Flow of working capital • Production costs • Maintenance costs • Capitalized cost • Maintenance cost – operational expenditure or capital expenditure • Net present value • S-Factor • Engineering aspects

6. Approach • Optimize maintenance plan to obtain maximum capital value at any time of the plant life (or given time horizon) • Used for maintenance of equipment with the degradation over time damage mechanisms • S-Factor • Risk before (probability x consequences) • Risk after (probability x consequences) • Estimated costs of action / consequence of action

7. Sample results: SAVE IN SAFETY & COMPLIANCE

8. Main result: savings + inspection plan • Current financial risk (€/year) • Future financial risk (€/year) • According to current practice • No inspection • With different inspection scenarios

9. Main result: savings + inspection plan • Current financial risk (€/year) • Future financial risk (€/year) • According to current practice • No inspection • With different inspection scenarios

10. Sample results: (optimized) SAFETY! In order to remove 90% of risk worth over 3,000,000 € it is enough to inspect only 15 out of over 100 components!The question: Which 15? The answer: RBI

11. Sample results: SAVE!

12. Main result: savings + inspection planSavings: Know what is NOT to be inspected Gains Components with MAX gain in NPV when inspected Components with practically NO gain in NPV when inspected Component with LOSSES in NPV no matter inspected or not Losses

13. Network of NIS-Steinbeisprojects anddatabases ONE System!!! RiskNIS ProjectRisk Steinbeis SystemCommon: User management Asset (plants!) management Tools (risk!) Interfaces (e.g. graphics, DBs, …) System management LitigationDB ESPRiT iNTeg-Risk Yet to be developed: Asset Management System! EnvironNIS

14. 5 Main conclusions • The project has “paid its costs” • For 2010: Inspect all of the plant best possible way (know better the starting point, inspections are not expensive) • After that – STOP unnecessary inspections at OPTIMUM! • Savings safety  • Full control in the tool (e.g. when “playing” with different scenarios)

15. CONCLUSIONS – Positive balance • “Current balance sheet of the project”… The project has “paid its costs”

16. CONCLUSIONS – A clear indication (=optimum!) for/of future actions (=inspections!) needed • For 2010: Inspect all of the plant best possible way (know better the starting point, inspections are not expensive) • After that – STOP unnecessary inspections at OPTIMUM! • Savings safety  Savings Savings, Cost of risk (€) Inspection costs Risk Components

17. CONCLUSIONS – Improved tool!Also for integration • Full control in the tool (e.g. when “playing” with different scenarios)