1. Work Steps Solution Analysis Execution Observation Investment Savings Amortization Get your solution Work Steps Solution Analysis Execution Observation Investment Savings Amortization

2. Work Steps Solution Analysis Execution Observation Investment Savings Amortization Get your solution TubeShop Consulting Services Planning and Execution of an automated pipe shop with software support

3. Work Steps Solution Analysis Execution Observation Investment Savings Amortization Get your solution Work Steps General approach to tube shop consulting projects:  Impressions of the tube shop and work processes  Commissioning of design, software development, machine manufacture and assembly  Machines, layout, software  Identification of problems, requirements April 20123

4. Work Steps Solution Analysis Execution Observation Investment Savings Amortization Get your solution Observation  Visit to the tube shop  Discussion with involved personnel  How are the drawings / geometries created?  How are the workers and the workflow organized?  What materials and diameters are used?  How does the material get from storage to the machines?  What machines and techniques are used? April 20124 Observation process

5. Work Steps Solution Analysis Execution Observation Investment Savings Amortization Get your solution Analysis  What is the current output and the projected output?  What problems exist in the workshop and on the administrative side?  What capacities exist at the moment and what are required?  What machines / techniques need to be used?  How do current methods need to be adjusted?  What fabrication control system is used?  What budget is available for solutions? April 20125 Analysis process

6. Work Steps Solution Analysis Execution Observation Investment Savings Amortization Get your solution Optimized workshop layout (2D and video) WorkshopSolution Streamlined and coordinated flow of material Machine recommendations Detailed outline of cost/benefits Control of workshop and fabrication processes April 20126

7. Work Steps Solution Analysis Execution Observation Investment Savings Amortization Get your solution Solution Administrative  Integrated software framework  Generation of CNC data for all integrated machines  Creation of balanced work packages, making optimal use of capacities  Data-transfer from construction to workshop  Automated report functions  Complete overview of the fabrication status of each spool April 20127

8. Work Steps Solution Analysis Execution Observation Investment Savings Amortization Get your solution Solution Administrative Available reports and documentation:  Worksheets  Part lists  Bill of Material  Cutting lists (optimized)  Bending lists  Welding documentation  Surface treatment documentation  Testing documentation  Insulation reports  Flushing reports  Spool weight calculations  Dia-Inch: Shop weld  Dia-Inch: Field weld  Dia-Inch: Installation weld April 20127

9. Work Steps Solution Analysis Execution Observation Investment Savings Amortization Get your solution Execution  Commissioning of design and technical drawings  Purchase of machines  Manufacture of storage / transport system components  Assembly of machines and storage / transport system  Installation of an integrated software framework, incl. Operator training  Automatic data-transfer from construction to workshop  Automated report functions  Complete overview of the fabrication status of each spool April 20128 Project Execution

10. Work Steps Solution Analysis Execution Observation Investment Savings Amortization Get your solution Example  Drawings need to be split into spools for fabrication, based on internal parameters  CNC data for machines has to be calculated and prepared  Worksheets and part lists need to be created  Spool data has to be collated into work packages for the workshop  Work orders need to be assigned based on scheduling, material availability, manpower and machine capacities  Operators have to manually enter data into machines  Workshop personnel have to manually create status reports / documentation Manual Data Preparation / Fabrication April 20129

11. Work Steps Solution Analysis Execution Observation Investment Savings Amortization Get your solution Example  Drawings are automatically split into spools using consistent logic (from the 3D system used in construction or customizable parameters)  Worksheets, Bills of Material and other documentation is created automatically  Work packages are created automatically, based on capacitices, scheduling, material  All CNC data are automatically generated, operators only need to confirm and start the machine  The fabrication status for every spool is automatically updated and accessible Automatic Data Preparation / Fabrication April 20129

12. Work Steps Solution Analysis Execution Observation Investment Savings Amortization Get your solution Investment Example for investment involved in optimizing a tube-shop projected to fabricate 20 projects p.a.: April 201219

13. Work Steps Solution Analysis Execution Observation Investment Savings Amortization Get your solution Savings Savings potential: Administrative side: Tasks can be performed in significantly less time, allowing fewer engineers to perform the job Constant status updates facilitate change management All reports can be created automatically April 201220

14. Work Steps Solution Analysis Execution Observation Investment Savings Amortization Get your solution Savings Savings potential: Workshop side: It will be possible to reallocate approx. half the current workshop staff to other jobs (assembly, hull welding, ec.) Due to bending machines / flame-cutting, fewer t-branches, reducers and elbows will be needed Automatic welding machines for fittings (flanges, reducers, elbows, t-branches) Consistent fabrication quality facilitates testing and quality control Increased workplace safety, reducing risk of accidents April 201220

15. Get your solution Work Steps Solution Analysis Execution Observation Investment Savings Amortization  Diameter : 4“ XS  Transport time : 20 minutes  Cutting time : 3x09 min:27 minutes  Elbow assembly : 2*22 min: 44 minutes  Elbow grinding time: 4*08 min:32 minutes  Elbow welding time : 4*22 min: 88 minutes  Cut bow 57° : 2*10 min: 20 minutes  Flange assembly : 2*09 min:18 minutes  Flange welding time: 2*20 min:40 minutes  Flange grinding time: 2*08 min:16 minutes  Total: 305 minutes Example for manual fabrication I: April 201210Example

16. Get your solution Work Steps Solution Analysis Execution Observation Investment Savings Amortization  Diameter : 4“ XS  Transport time : 3 minutes  Cutting time : 4 minutes  Bending time : 10 minutes  Auto-flange-welding: 7 minutes  Flange grinding time: 2*8 min:16 minutes  Total: 40 minutes  Estimated savings: 265 minutes (approx. 86%) Example for automized Fabrication I: April 201211Example

17. Get your solution Work Steps Solution Analysis Execution Observation Investment Savings Amortization  Diameter : 6“ XS  Transport time : 20 minutes  Cutting time 6“ : 4x15 min:60 minutes  Cutting time 4“ : 1x09 min: 9 minutes  Elbow assembly : 3*28 min: 84 minutes  Elbow grinding time : 6*14 min:84 minutes  Elbow welding time : 6*40 min: 240 minutes  Cut bow 31°/59° : 2*15 min: 30 minutes  Flange assembly : 6“12 minutes  Flange assembly : 4“9 minutes  Flange welding : 30+20 :50 minutes  Flange grinding time: 14+8 min:22 minutes  Assembly & welding reducer : 25+14+ 8+40+30 : 117 minutes  Total: 737 minutes Example for manual Fabrication II: April 201212Example

18. Get your solution Work Steps Solution Analysis Execution Observation Investment Savings Amortization  Diameter : 6“ XS :  Transport time : 3 minutes  Cutting time : 4+5 min : 9 minutes  Bending time : 10 minutes  Auto-flange-welding : 6“ : 18 minutes  Auto-flange-welding : 4“ : 7 minutes  Flange-grinding-time: 14+8 min : 22 minutes  Assembly & welding reducer : 25+40+30: 95 minutes  Total: 164 minutes  Estimated savings: 537 minutes (approx. 73 %) Example for automated Fabrication II: April 201213Example

19. Get your solution Work Steps Solution Analysis Execution Observation Investment Savings Amortization  Diameter : 16“ STD  Transport time : 20 minutes  Cutting time : 31 minutes  Flange assembly: 2*20 :40 minutes  Flange welding : 2*(20+20):80 minutes (semi-auto)  Total: 171 minutes Example for manual Fabrication III: April 201214Example

20. Get your solution Work Steps Solution Analysis Execution Observation Investment Savings Amortization  Diameter: 16“ STD  Transport time: 4 minutes  Cutting time: 12 minutes  Auto-flange-welding: (both) 43 minutes  Total: 59 minutes  Estimated savings: 112 minutes (approx. 66 %) Example for automated Fabrication III: April 201215Example

21. Get your solution Work Steps Solution Analysis Execution Observation Investment Savings Amortization Manual / Automatic Data Preparation / Fabrication  Avg. 5 spools / drawing  Avg. 2000 drawings / project  20 project p.a.  Drawings are split into logical spools, spool data is documented (Bills of Material, work sheets, etc.), balanced work packages are created based on capacities and schedule.Example April 201216 Actual savings may differ, based on project details

22. Work Steps Solution Analysis Execution Observation Investment Savings Amortization Get your solution Savings Savings potential: Administrative: Assuming a constant amount of drawings / project, and average costs of 25 € per man-hour, at 20 projects savings of approx. 850,000 € could be feasible: -Spool splitting is consistent and logical -All bills of material and order forms are created automatically -All reports are generated automatically -All CNC data are generated and automatically transferred to the machines -All work packages are created based automatically, making the best use of machine capacities and reducing scrap and retooling times April 201220

23. Work Steps Solution Analysis Execution Observation Investment Savings Amortization Get your solution Savings Savings potential: Bending: Internal investigation by the customer has estimated a savings of approx. 100,000 € per project. just by using bending machines (includes cutting and grinding). Assuming a slightly lower ratio of bending (60%), it should still be possible to achieve savings of 90,000 € per project, or almost 1.8 Million € p.a. April 201220 Calculation of savings due to bending machines Number of Elbows (1 project)5,918 elbows 60% bending3,550 bends Number of saved elbows (1 project)1,368 elbows Number of saved elbows (20 projects)27,360 elbows Average cost / elbow15 € Savings (parts)410,400 € Number of saved welds (1 project)2,736 welds Number of saved welds (20 projects)54,720 welds Welding costs (avg. 2hrs / elbow)13 € /hr Savings (welding)1,422,720 € Total savings (20 projects)1,833,120 €

24. Work Steps Solution Analysis Execution Observation Investment Savings Amortization Get your solution Savings Savings potential: Welding / Flame-cutting: April 201220 Calculation of savings due to welding and flame-cutting machine Consumption of reducers 2011 (excluding subcontractors) Approx. 5,000 pieces Estimated consumption of reducers (20 projects)Approx. 6,250 pieces Consumption of tees 2011 (excluding subcontractors) Approx. 5,600 pieces Estimated consumption of tees (20 projects)Approx. 7,000 pieces Total Number of welds (2 / reducer, 3 / tee)33,500 welds Welding time (avg. 2hrs, incl. cutting / grinding / fitting ) 67,000 hours Total costs871,000 € Calculation of savings due to welding and flame-cutting machine 50% reduction in tees due to flame-cutting- 14,000 hours ( 7,000 welds) 40% reduction in welding time per reducer- 10,000 hours 30% reduction in welding time per remaining tee- 6,300 hours Total reduction in welding time:30,300 hours Savings:393,300 €

25. Work Steps Solution Analysis Execution Observation Investment Savings Amortization Get your solution Savings Savings potential: Operating costs: -Utilities (electricity, water, sewage) -Consumables (welding gases, pressurized air, shot-blasting material) -Hardware, software installation, operator training -Total operating costs: approx. 250,000 € p.a. April 201220 TaskSavings per Project Per year (20 Projects p.a.) Data preparation42,500 €825,000 € Bending90,000 €1,800,000 € Welding (reducers and tees)19,665 €393,300 € Operating costs250,000 € Estimated savings3, 018,300 €

26. Work Steps Solution Analysis Execution Observation Investment Savings Amortization Get your solution Amortization Amortization of Investment over time – 20 projects p.a. Profit X-axis Time April 201221 Amortization of Investment over time – 15 projects p.a.Amortization of Investment over time – 10 projects p.a.

27. Work Steps Solution Analysis Execution Observation Investment Savings Amortization Get your solution 3R software solutions - Kleistraße 39 - 59073 Hamm - Germany Phone +49 2381 9724 710 - Fax +49 2381 9724 711 - Mail info@3-r.de