A Roadmap for Operational Excellence With Teck Metals’ Modernization Story

2. A Roadmap for Operational ExcellenceWith Teck Metals’ Modernization Story OXOX111 Brian Courchesne, Joe Fillion - Invensys Operations Management Rob Zwick – Teck Metals Ltd. Nov 8, 2011

3. Definition of Operational Excellence What is it? How do you get it?

4. Traditional Perspective

5. Controlling Plant Efficiency

6. Evolving from Efficiency to Profitability • Historical approach Focused on Efficiency. • Volume, Energy, Materials

7. Controlling Industrial Profitability

8. Profitability-Based Perspective

9. When to Consider Operational Excellence • Not a one-time project • Should be a goal throughout the Lifecycle • Can be integrated in many ways

10. Start at the Beginning…. † † Source: ARC

11. Cost & Profit Impact DELIVEREDPROJECT PROJECT asPLANNED REDUCEDVALUE ONGOINGVALUE TYPICALDELAYS EARLIERSTART-UP DELAYEDSTART-UP PLANNEDSTART-UP PROFIT ACHIEVE PROFITSAS PLANNED DELAYEDPROFITS TIME REDUCEDCAPITALSPEND REDUCE RISKOF DELAYS “Intelligent Engineering” helps set foundation for Operational Excellence COST CAPITAL COST

12. Virtual Reality? Really?

13. Loop / Control Management MES Implementation Network Architecture – Wired & Wireless Operator Training Simulation (OTS) Business Performance Management Field Device Management Back to the Scope Question… + 3rd Parties… Enterprise Systems Integration Scheduling & Inventory Management Alarm Management Workflow Management Real-Time Measurement & Management Asset Management Advanced Process Control Safety & Environment Security – Cyber & Physical OffSites

14. Invensys Enterprise Control Offerings Corporate Systems Industry Solutions Services: Consulting, Project Execution, Learning, Operational Improvement, Maintenance & Support Partner Ecosystem Corporate Software Applications Invensys and Third Party Manufacturing / Production Operations Automation Invensys and Third Party Enterprise Control System IT Platform Integration and Collaboration Platform

15. Broad Solution Perspective Execution Integration & Collaboration Platform Enterprise Asset Management Mobile Workforce Management Manufacturing Execution Systems Batch Performance Software Applications Enterprise Manufacturing Intelligence Asset Performance Performance Measurement and Reporting Enterprise Integration Visualization Quality Optimization Workflow Advanced Process Control Simulation / Optimization Design Operator Training Third-Party Offerings Open Device Integration Web Portal Control Automation Software Applications DCS PAC SCADA HMI Application Toolkit Safety Turbomachinery Control Safety Instrumented Systems General Purpose Safety Historian Measurement & Instrumentation Recorders Instrumentation Controllers

16. Four Aspects of Operational Excellence Operational Excellence Environment & Safety Excellence • Minimizing environmental impact while increasing profit • Minimizing emissions from industrial assets • Reducing waste from industrial assets • Relieving environmental constraints on business value People Excellence • Maximizing profitability with existing resources • Maximizing production value & agility • Enabling worker productivity & collaboration efficiencies • Minimizing variable cost impact of plant operations • Maximizing the profitability from enterprise assets • Maximizing reliability of critical physical assets • Maximizing operational performance of all assets • Maximizing the profit contribution of all assets Asset Excellence • Sustaining/improving plant safety while increasing profit • Sustaining & improving plant safety • Reducing impact from unsafe plant conditions • Relieving control & safety constraints on business value Control Excellence

17. Business Optimization ThroughOperational Excellence

18. Final Destination:Operational Excellence A Roadmap for Operational Excellence Session ID #: OXOX111 Presented by Rob Zwick & Joe Fillion November 8, 2011 Invensys proprietary & confidential

19. Pillars of Operational Excellence and Focus of This Discussion Operational Excellence Level 3 (Multi-plant/Multi-site) Environment And Safety People Level 2 (Plant Floor/Area) Asset Level 1 (Resource/Asset) Control

20. Teck Metals Ltd – Trail Operations • Located in Trail, Central British Columbia • World’s largest fully-integrated zinc and lead smelting and refining operations • Leading producer of copper, steelmaking coal and zinc, molybdenum and specialty metals Founded in 1913, Today Teck is the world’s largest fully-integrated Zinc and Lead smelting and refining complexes

21. Overall Challenges and Drivers: • Aging workforce and loss of expertise • Growing pressure to meet environmental and safety compliances • Increasing competition • Aging assets • Productivity and flexibility needed in response to market demands Teck's trail operations is a very complex operation, dealing with 3/4 of the Periodic table elements -including dangerous gases, liquids and solids.

22. Plan: Develop a Roadmap to Operational Excellence • With a focus on optimizing 4 key areas: • Control platform • People • Plant-wide assets • Safety and Environmental practices

23. Optimize the Control Platform • Project Drivers & Details: • In 2000 Teck Metals Ltd began a project to migrate 3 different systems to 1 consolidated platform • Honeywell TDC2000/IBM ACS replacement at Zinc Roasters/Acid/Sulphur recovery plant (2003) • Fisher PROVOX replacement at Lead Smelter (2001) & Electrolytic Melting Plant (2006) & Cadmium Plant & Sulphide Leach Plant (2007) • ABB Advant replacement at Zinc Pressure Leach Plant (2004) • Business Drivers: • Reduce high cost and maintenance efforts • Avoid unscheduled downtime • Dwindling support for essential equipment • Improve plant interoperability • Control Excellence • People Excellence • Asset Excellence • Environment and Safety Excellence

24. Optimize the Control Platform • Control Excellence • People Excellence • Asset Excellence • Environment and Safety Excellence Solution: • Invensys Migration solution to Foxboro I/A Series system - with minimum cost, risk, downtime to operations • Features I/A Series I/O modules designed to be form-fit replacements for various legacy I/O modules – no change to field wiring! • Risk-free. Results • 100% modern system with modern functionality that adds value to the business • Reduced training & maintenance costs • Interplant communication • Common platform across various plants with lifetime support policy

25. Improve operator effectiveness • Control Excellence • People Excellence • Asset Excellence • Environment and Safety Excellence Project Drivers & Details: • Up to 6,000 alarms per day, panel operators could not see all alarms – sometimes critical. • In extreme cases led to valuable time lost to correct maintenance issues and even unplanned outages • Began an Alarm Management initiative in 2010 at the Sulfide Leach plant – consisting of hardware, software and a alarm management methodology • Now at best practice 500 alarms per day Business Drivers : • Rationalize & prioritize alarms to improve operator response time & efficiency

26. Improve operator effectiveness • Solution: • Alarms are now differentiated into 3 categories: • Operations focus on Process related alarms • Configuration issues are directed to the Process control • Equipment issues are directed to the Maintenance • Maintenance can now focus on equipment-related Alarms for a more focused effort • Continuous Loop Performance Monitoring has also been installed on the same software platform (PAS), which allows for identification and resolution of bad performing loops • Control Excellence • People Excellence • Asset Excellence • Environment and Safety Excellence

27. Improve operator effectiveness • Results: • The plant has transitioned from “fire fighting mentality” to being better prepared & strategic • Using alarm management system for more effectiveness maintenance –where alarm reports are analyzed and used to target bad actor equipment • Targeted maintenance of poor performing control loops • Control Excellence • People Excellence • Asset Excellence • Environment and Safety Excellence

28. Knowledge Management • Project Drivers & Details: • Loss of valuable team member to retirement, most of their knowledge & skills is never documented • Certain, complex conditions may only happen as infrequent as 5 -10 years are hard to teach • Avoid potentially dangerous 'trial & error’ training methodologies • Solution is to implement an OTS (Operator Training Simulation) solution on three of its plants - Sulfide Leach, Roasters and a new Acid Plant • Business Drivers: • Retain experienced operator knowledge • Improved new operator training • Improved safety and environmental performance • Control Excellence • People Excellence • Asset Excellence • Environment and Safety Excellence

29. Knowledge Management • Solution: • A medium fidelity OTS system that will mimic the key process conditions and will use the same version of control system from the graphics, the controls • A "trainer" can put each operator through a number of scenarios and observe the operator • Future Benefits: • Real-life operator training without the risk • Improved operator response time • Knowledge capture and transfer • Improved availability and reliability • Control Excellence • People Excellence • Asset Excellence • Environment and Safety Excellence

30. Business data • Project Drivers & Details: • Multiple historians and data sources creating data integration issues and data collections gaps • Foxboro I/A AIM*, ABB, Wonderware InTouch, LIMS • Move the entire business data management to Wonderware System Platform • Remove all single points of failure in the data management system • Business Drivers: • Enable better visibility, generate actionable information faster, • more accurate decision-making across all plants • One common engineering and software environment for both, process control and business IT • Control Excellence • People Excellence • Asset Excellence • Environment and Safety Excellence

31. Business Data • Solution • Wonderware System Platform is used as the Process Data Historian (PDH) • Legacy historian is being migrated to the new System Platform • TECK corporate has decided WW SP will be the standard for Plant Data Historians • Results: • Elimination of corporate-wide integration barriers • Unified information from multiple manufacturingoperations with InFusion DCS and WonderwareHMI/SCADA systems • Distributed data acquisition and aggregation with the ability for real time business performance information • Control Excellence • People Excellence • Asset Excellence • Environment and Safety Excellence

32. Asset Management • Project Drivers & Details: • The condition of the plants assets is often unknown causing unexpected breaks and production disruptions, decreasing throughput, quality • Teck embarked on a an asset condition based maintenance (CBM) trial with Wonderware partner Mtelligence • Business Drivers: • Real-time monitoring of pump and equipment health • Ability to increase throughput and quality while decreasing maintenance costs as it relates to CBM • Reduce unplanned down time, do maintenance on what needs it and do not waste time on assets that do not need it • Control Excellence • People Excellence • Asset Excellence • Environment and Safety Excellence

33. Asset Management • Solution: • Mtelligence has been installed as a condition-based monitoring system • Integrate Operations and Maintenance into one team, to focus precious man power on fixing true problems vs. wasting time on checking assets that are not broken • Reduces unplanned downtime & increases throughput by running hard when your assets are running well … Condition based Maintenance !! • Identify valves, transmitters, pumps & equipment that need attention • Key Objectives: • Improved plant availability • Control Excellence • People Excellence • Asset Excellence • Environment and Safety Excellence

34. Safety and Environmental Excellence • Project Drivers & Details: • Process Network Security - Teck began to move forward to ensure their facility was secure from any risks associated with malware security threats • Energy Management initiative - Energy was considered to be almost 'free' is no longer. Teck now has steam capacity issues and with more furnaces coming on line over the next few years, Teck will be forced to spend money on new steam generation units • Business Drivers: • Ensure the secure exchange of data between the plantprocess and corporate business systems • If Teck can use less energy, it can then 'Sell" power to the grid • Control Excellence • People Excellence • Asset Excellence • Environment and Safety Excellence

35. Safety and Environmental Excellence • Solution: • A secure process network system architecture has been designed. From the existing system a migration path has been laid out and this is being executed. • Energy Management project is underway to analyze requirements and sources. • Results: • Secure process control network • Increased energy efficiencies • Control Excellence • People Excellence • Asset Excellence • Environment and Safety Excellence

36. Safety and Environmental Excellence • Project Drivers & Details: • Many points in the facility are not automated or tied into a control system. • Some of these assets need to be checked on a regular bases for data records, comparison information, insurance, fire protection, regulatory compliance, etc. • Business Drivers: • Consistently execute all field tasks requiredto achieve reliable operations • Control Excellence • People Excellence • Asset Excellence • Environment and Safety Excellence

37. Safety and Environmental Excellence • Solution: • IntelaTrac, a mobile workforce and decision support system, has been implemented for use by the environmental group • Manages the processes and procedures used to ensure that organizations consistently execute all field tasks required to achieve reliable operations. • Provides Task Management and an integrated performance monitoring system • Provides user guidance with contextual information to improve asset reliability and field validation • Management of Change for field procedures • Tightly integrates enterprise applications with field workers providing reliable and adaptive operations • Control Excellence • People Excellence • Asset Excellence • Environment and Safety Excellence

38. Stack Monitoring with IntelaTrac • Following synchronization, data is pushed to the Wonderware Historian to be married with lab results from that test • From the historian, data is pushed to JDE where the final report is produced to be submitted to the government • Field data is collected and entered directly into IntelaTrac Mobile running on an Intermec CN3e device • Calculations are embedded in the procedure and are automatically completed and displayed on the handheld

39. Safety and Environmental Excellence • Results: • Simplified field data capture process • Increased labor efficiency to complete stack sampling • Documented procedures and embedded calculations • Adaptable work flow based on measurements and calc’s • Immediate data validation and error correction in the field • Reduced data entry errors and eliminating re-entry transcription • Increase accuracy of results and environmental compliance reporting • Control Excellence • People Excellence • Asset Excellence • Environment and Safety Excellence

40. Future Plans • DPM for process and real-time finance - Measuring real time performance along with the value of Invensys solutions • ArchestrA Workflow to improve documented workflow processes to help the plant run more smoothly, and reduce costs and regulatory issues. • MES - SPC/SQC – upgrade existing process manufacturing quality control system to Wonderware MES and integrate into the Business information environment

41. Partners Every Step of the Way • Invensys continues to work with Teck on a number of planned projects • Together, Teck will reach their final destination of operational excellence

42. Questions?