© 2008 OSIsoft, Inc. | Company Confidential Reduce Maintenance Cost connecting AF, RLink and Sap PM in Erg G. Conigliaro - Erg G. DiBartolo - Visiant

3 © 2008 OSIsoft, Inc. | Company Confidential Agenda Erg Group Erg Power & Gas Assets Maintenance The Project IT Erg Architecture IT supporting business process Results Next Steps

4 © 2008 OSIsoft, Inc. | Company Confidential Erg Group Italy’s main independent energy and petroleum group Works in –Crude refining –Petroleum product distribution –Electric energy production

5 © 2008 OSIsoft, Inc. | Company Confidential Erg Group Coastal Refining and Integrated Downstream : –Accounts for about 19% of total Italian refining capacity –320 thousand barrels/day –Second largest refiner in Italy –Sales of petroleum products on the domestic market cover about 9% of Italian consumption

6 © 2008 OSIsoft, Inc. | Company Confidential Erg Power & Gas Assets Power Generation: –ISAB Energy generates electricity at a 528 MW capacity power plant fuelled by syngas –ERG NuCe currently has an operating capacity of about 150 MW, 480 MW after repowering –ERG Renew, generates electricity from renewable sources, mainly wind farms, has an installed capacity of over 164 MW and another 200 MW of capacity that has already been authorised –ERG sales of electric power account for about 2% of the domestic market

7 © 2008 OSIsoft, Inc. | Company Confidential Maintenance The Standard Process

8 © 2008 OSIsoft, Inc. | Company Confidential Maintenance Improvement

9 © 2008 OSIsoft, Inc. | Company Confidential Maintenance Maintenance Strategies definition –Transform those strategies in a shared asset database –Every Equipment has its own criticalities Experience Operation / Performance Hse –Create parameters that give the right priority between items Computing Data and Feedback –Close the Loop –Improve the strategies –We have data –Use data instead of experience

10 © 2008 OSIsoft, Inc. | Company Confidential Maintenance More Expensive … ? Process Optimization

11 © 2008 OSIsoft, Inc. | Company Confidential Maintenance Shut-Down …. Few Numbers –2 Years –16 Million Euros –30 Days –1400 Employees – working hours –10000 Work Permits –4000 Highly-skilled Jobs –600 Thousand Euros –Logistic

12 © 2008 OSIsoft, Inc. | Company Confidential Maintenance Do we need this big event

13 © 2008 OSIsoft, Inc. | Company Confidential Maintenance This is What We Want

14 © 2008 OSIsoft, Inc. | Company Confidential Maintenance - Business Goals Reduce maintenance cost –Give the right Priority in Cost Reduction. What Remove ? Increase life of equipment Avoid Equipment failure –Early failure detection Reduce downtime Give measurable objectives to the managers Keep the higher levels of unit performance

15 © 2008 OSIsoft, Inc. | Company Confidential The Project - Objectives As Is / To Be: Process design and consolidation Objective –Maintenance Optimization through strategic KPI definition and analysis –Pass from corrective maintenance to a calendar-based and condition-based maintenance –Shut down optimization reducing preparation time Standard cycle definition in SAP –Budget Structure Review Coherent with maintenance strategies and KPI Correct Cost Plan and Check –Synchronize company asset databases

16 © 2008 OSIsoft, Inc. | Company Confidential The Project - KPI General Index –Total Maintenance Cost / Asset Value –Total Maintenance Cost / Production Volume Efficacy Index –Unit Availability –Mean Time Between Failure –Mean Time to Repair Efficiency Index –Medium Stock Value / Asset Value –Unit Maintenance Cost

17 © 2008 OSIsoft, Inc. | Company Confidential The Project - Timings 5 Months Feasibility Study + Analysis –As Is –To Be 8 Months Prototypal Phase –1 Unit 6 Months Project Completion

18 © 2008 OSIsoft, Inc. | Company Confidential The Project: The Prototypal phase Integration with SAP/PM achieved with standard RLINK gateway installation management system Test on three SAP environment Development, Test and Production Manual Configuration 1 Unit / 100 Measurement Point Critical equipment Engines and Pumps, Counters Data integration From DCS to SAP

19 © 2008 OSIsoft, Inc. | Company Confidential The Project: A new Approach Maintenance Model Creation in AF SAP/PM acts EAMS holding equipment hierarchy –Plants –Units –Equipment –Functional locations SAP Hierarchy charged in Production Repository AF On Line Analysis on the model

20 © 2008 OSIsoft, Inc. | Company Confidential IT Erg Architecture PI System in ERG Power & Gas from 2000 –2 years ago ERG Power & Gas decided to implement OSIsoft Enterprise Infrastructure –Support business with all OSIsoft product suite  RLINK  Sigmafine  RtWebParts and Microsoft SharePoint  AF –Scalability, security,reliability –Blade technology

21 © 2008 OSIsoft, Inc. | Company Confidential IT Erg Architecture

22 © 2008 OSIsoft, Inc. | Company Confidential SAP-PM PI-RLINK PM RLINK for SAP-PM standard installation - Send measurement values to SAP - Measurement document creation - Equipment definition from SAP (automatic configuration) PI Server Cluster installation PI System IT Supporting Business Process RLINK – gateway for SAP-PM PI Cluster

23 © 2008 OSIsoft, Inc. | Company Confidential IT Supporting Business Process PI-AF Plant Maintenance Model SAP-PM PI System PI-AF Maintenance Model PI-AF Model - Plant Maintenance Model - Subset of SAP-PM configuration - Hierarchical model AF DataReference Formula and/or PI Point to associate measured valued to the SAP Counter AF Attribute for the equipment to manage InService and OutOfService

24 © 2008 OSIsoft, Inc. | Company Confidential Pimsoft WCF Service – SAP/PM Asset synchronization Pimsoft SAP/XI Asset Synch. WCFService IT Supporting Business Process SAP-PM PI System PI-RLINK PM PI-AF Maintenance Model Trigger for notification Pimsoft WCF Service (SOA Service) - PM Asset synchronization with SAP /XI protocol - Manage hierarchical PI-AF Model - Update PI-RLINK Table - Load PI-AF PM Model (Massive / On Demand) Tag Trigger management for Notification

25 © 2008 OSIsoft, Inc. | Company Confidential PI System NETWORK INFRASTRUCTURE NETWORK INFRASTRUCTURE OLEDB PROVIDER PI System Pimsoft SOA AF Data Reference Pimsoft SOA AF Data Reference PI System PI-AF System WCF Server SOA Remote System -Web Service - SOA Server Microsoft SharePoint + OSIsoft RtWebParts and RtBaselineServices (Presentation Layer) Microsoft SharePoint + OSIsoft RtWebParts and RtBaselineServices (Presentation Layer) Data Entry WebParts Data Entry WebParts SOA web Configurator SOA web Configurator WCF Client Configurator Features: -Recasting to dataset -Regular Expression Dynamic Input Definition SOA Data Sources SOA Server A SOA Server B Pimsoft SOA Configurator AF Database Synchronizer Definition Data Transformation Utility (Code) Pimsoft SOA Configurator Pimsoft SOA Concepts

26 © 2008 OSIsoft, Inc. | Company Confidential IT Supporting Business Process User Front End – Web page SAP-PM PI System Pimsoft RtWebParts AF WEB Service PI-AF Maintenance Model Web Data presentation: - Microsoft SharePoint (Portal) - OSIsoft RtWebParts - Pimsoft AFtoWeb : web service to show PI-AF data in the portal Web page integrated in the Enterprise Portal

27 © 2008 OSIsoft, Inc. | Company Confidential IT Supporting Business Process Update Asset  PI-Notification SAP-PM PI System PI NOTIFICATION Pimsoft SAP/XI Asset Synch. WCFService Trigger for notification Pimsoft Asset Synch. Manage a trigger tag to notify SAP-PM configuration update PI-Notification send mail message to the end user  Manual operation  Standard PI-Notification feature Mail Message

28 © 2008 OSIsoft, Inc. | Company Confidential IT Supporting Business Process Architecture schema SAP-PM RtPM PI System PI-RLINK PM Pimsoft RtWebParts AF Web Service PI NOTIFICATION Pimsoft SAP/XI Asset Synch. WCFService PI-AF Maintenance Model Trigger for notification

29 © 2008 OSIsoft, Inc. | Company Confidential Results Change maintenance culture Now Managers have measurable objectives KPI New 2009 Budget Structure Reducing Cost and Time will be measured along the 2009

30 © 2008 OSIsoft, Inc. | Company Confidential Next Steps Increase monitored equipment –Heat exchanger Translate maintenance engineer’s experience in AF plug-in leveraging the PI-AF PM model automatically created Develop Maintenance Simulation –What if Analysis –Scenarios

31 © 2008 OSIsoft, Inc. | Company Confidential