ASSET MANAGEMENT & RELIABILITY SOLUTIONS

ASSET MANAGEMENT & RELIABILITY SOLUTIONS Overview Asset Management is increasingly being recognised as a vital part of any operating company s push to manage risks and maximise life cycle revenue and profitability. As a result industry business owners are looking for increasingly robust asset management and reliability solutions in both the design and operational aspects of their businesses. Asset Management and Reliability Solutions Bureau Veritas has established a vibrant, agile, innovative and independent World-Class Asset Management and Reliability Solutions team delivering expertise globally and across Australia. With exceptionally qualified consultants, engineers, scientists and technicians, we have one of the strongest asset management capabilities in the Asia Pacific region offering a range of comprehensive technical services. Our core business involves intelligently assessing a client s asset management, productivity, maintenance and reliability engineering requirements, then applying the most appropriate approaches in order to efficiently and effectively determine optimal solutions and business outcomes. Products and Services Bureau Veritas Asset Management and Reliability Solutions offers a full range of products and services across the asset lifecycle, broadly categorised as supporting either design or operational phase outcomes. Design Phase Solutions The design phase products and services cover both greenfield and brownfield projects. While the range of services is similar for both project types, it is recognised that brownfield solutions often require a pragmatic approach. Early Design Phase Solutions: Reliability, Availability and Maintainability (RAM) Analysis. Integrated Supply Chain RAM Analysis and Value Chain Modelling. Detailed Design Phase Solutions: Reliability Centered Maintenance (RCM). Risk Based Inspection (RBI). Safety Integrity Level and Critical Function Test Assessment. Spare Parts Analysis and Usage Forecasting. Trade Resource Forecasting. Lifecycle Maintenance Budget Forecasting. Maintenance, Inspection and Testing Procedure Development. Computerised Maintenance Management System (CMMS) Upload and Configuration. Operational Lifecycle Solutions The operational lifecycle solutions portfolio offers owners of current operational assets a comprehensive array of Asset Management and Reliability related skills, products and services. The spectrum encompasses major supporting roles for client asset management performance improvement programs, providing large scale inspection and condition monitoring services through to ad hoc provision of specialist advice. Best Practice Audit Services: PAS 55 Audit. Maintenance Function Best Practice Audit. NDT / CBM Audit. Performance Improvement Programs include: Maintenance, Inspection and Test Program Re-Development (RCM/RBI/SIL). Inventory Management Improvement. CMMS Improvement. Process and Work Flow Improvement. Business Measurement Improvement. Defect Management Improvement. Technical Services: Integrity, Materials and Corrosion Engineering. Reliability Engineering. Root Cause Analysis Facilitation. Asset Integrity Services: NDT Technologies and Inspection Services. Condition Monitoring Services. 1

EARLY DESIGN PHASE SOLUTIONS Overview Estimating the future lifecycle performance of operating plant during the concept design phase is critical and integral to a project s design and commercial decision making process. Bureau Veritas is globally recognised as having taken RAM analysis to a whole new level particularly with regard to early design phase applications. Optimise Software Optimise is Bureau Veritas own RAM Analysis software package developed specifically to predict the future lifecycle performance analysis of a proposed industrial or process plant design. Key features of the Optimise software are: Dynamic Monte Carlo simulator. Aligned to ISO 20815. Determines lifecycle profile of system performance in terms of product quantity delivered. Ability to model; - complex production profiles. - shipping (port operations and voyage). - multiple delivery points. - complex operational philosophies. - crew and special equipment mobilisation. - whole supply chains. RAM Analysis Through the medium of the Optimise software Bureau Veritas is able to extend the analysis beyond traditional RAM to provide clients with commercial outputs in addition to the design project outputs. This enables clients to make informed business and design decisions. Traditional RAM RAM analysis is traditionally commissioned by design project teams as part of Concept Design, Pre-FEED and FEED. Design teams may also seek RAM analysis in support of debottlenecking or expansion projects. Typically, the objectives of a RAM study are to: Analyse, predict and verify the future production performance of a proposed design against target(s). Identify and quantify critical loss contributors in order to enable informed design improvement decisions. Commercial RAM Evaluation Two notable commercial RAM analysis applications are described below: Integrated Supply Chain RAM Analysis Bureau Veritas is able to integrate several isolated facility RAM models into a mega or whole supply chain model. This allows the future performance of the supply chain to be analysed including options such as: Shipping operations. Delivered product forecasting (profile). Delivered product forecasting in a specified future date range. Product contract analysis Investment Decision Optioneering Furthermore, whole supply chain RAM analysis applied at the pre-project phase can be a powerful tool to support clients optioneer between proposed super projects and better target their investment and project dollar. Fig 1. Optimise Screenshot Raw Source Delivery Estimating the lifecycle performance of operating plant during the concept design phase 2

DETAILED DESIGN PHASE SOLUTIONS Overview Bureau Veritas offers a portfolio of asset solutions for the development of risk-based lifecycle maintenance, inspection and test task strategies, plans, procedures and through-life sparing requirements. The outgoing assessment detail can be configured in the client s CMMS prior to commissioning all professionally delivered within a strong project management culture. Large Company Advantage The intellectual capital for assessment work of this type is derived from Bureau Veritas maintenance and reliability engineers, strategists and technical writers. Our global and national operations offer additional depth with ready access to many specialist technicians and engineers. Design Project Types Our detailed design phase solutions are equally applicable to both greenfield and brownfield projects, including plant modifications and capital investment projects to sustain operations. We readily tailor our approach to client needs including project scale and complexity. Maintenance, Inspection and Testing Reliability Centred Maintenance, RCM RCM is perhaps the most widely known of the formal reliability engineering tools. This technique determines exacting routine maintenance programs specifically tailored to the equipment operating context, operational business drivers and risk management requirements. With a thorough and disciplined approach, Bureau Veritas has consistently demonstrated the benefits of RCM. In an industry with mixed experiences and perceptions of RCM, we maintain our reputation using proven techniques while adapting and innovating for each application. We believe that modern RCM has matured into a maintenance and reliability engineering discipline in its own right and offer clients a smart, hard working RCM solution that delivers real and implementable results surprisingly quickly. Risk Based Inspection, RBI Critical Function Test Assessment, CFT CFT assessment is a facilitated two-part process to identify and analyse Safety Instrumented Functions (SIF). Part one targets the verification of appropriate design principles for each identified instrumented loop according to Safety Integrity Level (SIL). Part two involves the determination of a Critical Function Test (CFT) interval that incorporates instrument voting logic and equipment reliability. Spare Parts, Trade Resource and Maintenance Budget Forecasting Forecasting a maintenance budget, lifecycle spare parts movement and trade resource mix and quantity is possible via a Monte Carlo based RCM approach. This level of RCM analysis is usually applied to greenfield design projects and the larger brownfield projects however, the potential benefits are considerable and the results accurate and astounding. Expenditure $ 300 0 00 $ 250 0 00 $ 200 0 00 $ 50 0 00 $ 00 0 00 660 83 99 143 382 527 242 Overall Expenditure Mechanical Technician Electrical Technician Instrument Technician Te Rapa Instrument Technician Operator Condition Monitoring Technician Contractor RBI is a facilitated assessment approach to review process piping and vessels in order to identify and treat potential and consequential corrosion damage mechanisms, including Corrosion Under Insulation. $5 0 000 $0 2 34 56 78 9 0 Year Spares Jobs Cor ective Labour Preventive Labour Inspect on Labour Annual Average RBI software tools co-developed by Bureau Veritas include FAME+ and RBeye. Fig 3. Predicted Maintenance and Replacement Budget 3

MAINTENANCE BUILD CMMS Upload and Configuration Bureau Veritas believes that any risk based maintenance assessment work should not be considered finished until the project outputs are functional in the client s Computerised Maintenance Management System. Bureau Veritas has broad experience with CMMS upload and configuration, offering client assistance with CMMS establishment either as a collaborative exercise or as part of a wider brief. Typical Information Supply and Interfaces PEFs P&IDs Site Layout Operations and Maintenance Philosophy Operations Manual Develop Asset Register Project Management Project Kick Off Interface Management Client Project Stakeholders, Client Maintenance Stakeholders, Client Operations Team, Client Maintenance and Reliability Engineering Team, Client Maintenance Process Team, Document Control Realistic Detailed Planning Planning Updates, Progress Steering Group Persons In Charge Determine Asset Coding Project Stakeholders Client Operations Team Discipline Stakeholders Client Maintenance Process Team Document Control Develop Asset Master Data Criticality Analysis CMMS Asset Register Obtain Asset Name Reservations CMMS Upload Asset Names Reserved Project And Discipline Stakeholders Client Operations Team Apply Client Risk Assessment Matrix Asset Master Data Facilitate Cr ticality Analysis Complete Engineering Draw ing Set Performance Standards Equipment Data Sheets Maintenance Manuals Vendor Draw ings Project Stakeholders Client Operations Team Discipline Stakeholders Client Maintenance Process Team Facility Engineers Access to: Engineers, Operators and Technicians [RCM/RBI/CFT Workshops] Maintenance Strategy Determination Extract Any Client Performance Standards Assurance Activities Apply Any Client Generic Maintenance Strategies Perform RCM and RBI Assessments Perform SIL and CFT Assessments Audit CMMS Asset Master Data CMMS Asset Maintenance Build Build and Test CMMS Asset Maintenance Data, Construction Type BOMs Upload CMMS Asset Maintenance, Inspection and Test Procedures CMMS Asset Master Data Project Stakeholders Client Maintenance Process Team Facility Engineers Access to: Client Technicians Develop Detailed Maintenance Plans and Procedures Maintenance, Inspection and Testing Plans, Components Amend / Create Maintenance, Inspection and Testing Audit CMMS Asset Maintenance Data CMMS Materials Build CMMS Asset Maintenance Data Vendor Equipment Manuals Vendor parts list GA drgs Project Stakeholders Discipline Stakeholders Facility Engineers Sparing Analysis Reliab lity Centred Sparing, Stock Levels and Location Catalogue and Build CMMS Materials Data including Min/Max Audit CMMS Materials Data CMMS Inventory Management and Materials Data Fig 4. Typical Maintenance, Inspection and Test Build Roadmap 4

BEST PRACTICE AUDITING Benchmark Against Best Practice Bureau Veritas is internationally known for its compliance, certification and audit capability. This includes the Asset Management and Reliability Solutions series of offerings: PAS 55 Comparison / Compliance. Maintenance Function Best Practice Audit. Non-Destructive Testing (NDT) Audit. Condition Based Maintenance (CBM) Audit. Our goal with these audits extends beyond the audit report, as we seek to empower our clients to achieve best practice through developing an asset management performance improvement roadmap. This encapsulates the series of gap closing, prioritised and resourceconsidered projects and activities required to achieve best practice. PAS 55 Comparison / Compliance The PAS 55:2008 Standard outlines the asset management elements and aspects that individually and collectively describe best practice. The PAS 55 audit is therefore a holistic and comprehensive review of a client s asset management business functions evaluated against current best practice. The scoring mechanism used for the many PAS 55 elements is defined in terms of Asset Management maturity against pre-defined levels between 0 and 4. Maintenance Function Best Practice Audit The Maintenance Function Best Practice Audit shares many similarities with the PAS 55 audit, but with greater emphasis on the maintenance functions for a specific operational plant or site. Audit elements investigated include: Maintenance organisation (management, supervision and trades skills). Maintenance planning, scheduling and task execution. Outage planning, control and execution. Computerised Maintenance Management System (CMMS). Materials management. Preventative and predictive maintenance. Reliability engineering. Configuration management (design change). Engineering modifications and capital projects. NDT and CBM Audits Provision of NDT and CBM services are core and long standing Bureau Veritas business streams. We are therefore well qualified to conduct thorough audits of this type. Whilst specific in nature, these audits are enablers for identifying improvements such as better work definition, data / information collection, timely and effective secondary activities and remaining life forecasting. Fig 5. Typical PAS 55 Audit Plot 5

ASSET MANAGEMENT PERFORMANCE The Challenge Asset intensive businesses are under ever-increasing pressure to deliver improved returns on the investment made in their physical assets, while subject to downward pressure on available resources, time and budgets. This drives the need for continual improvement in asset management performance. Collaborative Change Management Philosophy Bureau Veritas Asset Management and Reliability Solutions understand the importance of achieving performance improvements that are lasting and sustainable. Bureau Veritas is uniquely placed to offer a service centred on intelligent collaboration throughout the change management process. This collaborative approach ensures that effective change is achieved, owned and sustained by the workforce; with genuine support delivered when and where required. Best Practice Implementation Our holistic understanding and technical capability is represented by the diagram below, communicating our potential to add value to client asset management performance improvement programs. Identified shortfalls in best practice gaps can be large or small, so we readily tailor the scale of our participation in accordance with client business drivers. Typical role examples performed by Bureau Veritas include (but are not limited to): Gap Analysis (Benchmark Against Best Practice Audit). Key roles on client defined improvement projects (example: Maintenance Improvement). Time saving methods and tool development. Co-opting specialist advice into client initiatives and continuous improvement programs. Select Project Debottlenecking Root Cause Analysis Reliability Reporting Defect Elimination Program Equipment Asset Criticality RCM / Operational Register PMO Detailed Work Handover Instructions and Deliverables Procedures Flawless Start Up Maintenance Improvement Design Out Plant Modification Systems Systems Benchmark Against Best Practice Audit Maintenance Organisation 100 00 Engineering Support & 90 00 Interaction Maintenance Planning & 80 00 Scheduling 70 00 60 00 50 00 40 00 Configuration & Maintenance Control 30 00 Documentation and Execution Management 20 00 0 00 0 00 Reliability Engineering Major Shutdown Management Spare Parts Optimisation CMMS Upload and Clean Up Role Definition Planning and Scheduling Process Break In Work Capacity Planning Work Priority Failure Reporting 6 Biggest Losses OEE Business M as ement Business Measurement Preventative & Predictive Maintenance Materials Management CMMS Maintenance Practices Work Close Out Bag & Tag Lubrication DCS Data KPIs Safety Equipment & Special Tools Warehouse Practices House Issue and Keeping Control Laydown Areas Alignment Condition Montioring Fig 6. Holistic Asset Management Performance Improvement 6

VERTICALLY INTEGRATED TECHNICAL SERVICES Comprehensive and Integrated Technical Services Bureau Veritas offers a comprehensive suite of technical services designed to extract the most from your physical assets while optimising availability for a given level of cost without compromising safety. Figure 7 shows these technical services are vertically integrated into the portfolio of Bureau Veritas capabilities in the following groupings: Condition Based Monitoring (CBM). Strategic Non Destructive Testing (NDT). Material Sciences. Engineering Services. Equipment Fitness For Service Assessment Through in-service degradation, or from deficiencies in original manufacture, many types of equipment are at risk of failure from cracking or overload. Optimal Run/ Repair/ Replace decisions require a full understanding of the residual strength and life of the equipment. The vertically integrated technical services provided by Bureau Veritas allow determination of the remaining integrity and life of degraded or defective equipment. Calculation of stresses can be undertaken using in-house Finite Element Analysis (FEA) capabilities, supplemented with in-situ stress testing and measurement using strain gauge techniques. Statistical methods can identify extreme values of damage from a data sample and can characterise degradation trends. Where components are cracked, a computer-based defect tolerance assessment will indicate whether the equipment is at risk of sudden failure. With knowledge of the stress fields in the crack region, it is possible to predict the rate of fatigue crack growth to indicate remaining service life. ARMour Predictive Maintenance Data Management As predictive maintenance programs grow in size, so too does the volume of information needing review, processing, filing and action. ARMour is a state-of-the-art web based system for holistic management of the predictive maintenance data for your enterprise. Ownership of your maintenance data remains with you; Bureau Veritas simply provides the systems and processes to more effectively manage that data. Benefits of ARMour include: Peace of Mind: Your data is complete, centralised and available to your personnel anytime, anywhere. Save Time: Eliminate manual filing systems. Advanced searching helps you determine equipment condition faster and easier. Effortless installation: no software to install or hardware to maintain. Improved decision making: Compare and correlate the results of ultrasonic testing, inspection, vibration analysis, oil analysis and thermography. See the big picture: ARMour highlights the items in your plant that need attention. Fig 7. Bureau Veritas Vertically Integrated Technical Services 7

ANALYSIS AND TESTING Analysis and Testing Capabilities Bureau Veritas has a number of powerful analysis and testing capabilities that enable fully informed decision making and improved Asset management practices. Fractographic and Metallographic Analysis Fractographic and Metallographic Techniques allow for sample examination, ranging from Stereomicroscopy to Scanning Electron Microscopy (SEM). These tools allow Bureau Veritas to assess surface features, accurately identify failure modes, material microstructures, and corrosion features. Fractographic and metallographic analysis play an important part in quality control and root cause failure analysis directed toward the reduction of waste and improvements in equipment and operational reliability. Scanning Electron Microscopy (SEM) High resolution imaging allows the characterization of individual flaws and features of a fracture surface at magnifications from x100 to x10000 in addition to the examination of microstructural features in polished samples. Incorporating Energy Dispersive Spectrometry (EDS) chemical analysis of a small area or spot can be performed to allow the identification of debris, corrosion products and individual metallographic phases. Fig 10. Example Failure Surface Cross Section Centurion Vibration Analysis Fig 8. Example Failure Surface Analysis Low Power Stereomicroscopy Visual examination of surface flaws, debris and fracture surfaces is performed with the aid of a low power stereomicroscope. Surface features can often indicate the type and direction of loading contributing to failure. Optical Microscopy Regular vibration analysis is essential for the reliability of rotating and vibration-prone assets. Increasingly, asset maintenance teams are turning to online solutions for vibration analysis, to reduce safety, cost, accessibility, repeatability and machinery downtime risks. Centurion is a multi-channel, remote vibration monitoring system. After the hardware is installed it is accessed remotely via the Internet, allowing all vibration monitoring tasks to be performed by technicians wherever they are located. The service also adds an alarm capability, where operators can automatically be informed of events of significance as they happen. Metallographic examination of polished and polishedand-etched samples is performed using modern optical microscopes at magnifications from x50 to x1000 in both transmitted and reflected light mode. This can reveal heat treatment condition and the presence of manufacturing or service related defects. Image analysis and wear debris analysis are also routinely performed. Fig 9. Example Atomic Composition Analysis Results Fig 11. Vibration Analysis of Various Rotating Equipment 8

WHOLE OF LIFE ENGAGEMENT Bureau Veritas Capability Growth The acquisition of CCI Pope, Intico and International Risk Consultants (IRC) in the last 5 years has enabled Bureau Veritas Asset Management and Reliability Solutions to provide an unequalled breadth and depth of professional services across the strategic, tactical and services fields of physical asset management in the Asia Pacific region. Amdel Limited has recently joined the Bureau Veritas group and is Australia s leading provider of innovative laboratory and technical services. Amdel boasts a strong reputation in one-stop-shop geoanalytical and mineral processing capabilities and also offers leading materials testing and Petroleum laboratory services. Following this growth in capability, Bureau Veritas has completed an organisational re-design driven by an internal service integration and alignment to client needs. Lifecycle Partnering Figure 12 outlines the expanded Whole of Life (WoL) engagement philosophy offered by Bureau Veritas, providing you with the confidence to move forward, regardless of where in the asset lifecycle your organisation is operating. The ability of Bureau Veritas to understand your needs and requirements, then apply tailored, market-focused solutions across the asset lifecycle is enhanced by the capability of our experienced employees and cutting-edge technologies. Our mastery of Asset Management and Reliability Solutions grows with every opportunity we have to deliver solutions to our expanding client base. Our diverse range of clients includes some of the Australian s best known organisations including Apache Energy, Arrow Energy, BHP, BMA Coal, British Gas, Chevron, ConocoPhillips, Delta Electricity, Queensland Gas, Santos, Woodside and State Government utilities. Consulting RAM and SCM modelling Safety Case Development HAZOP / HAZID Reliability-centered Maintenance (RCM) SIL Verification Risk Based Inspection (RBI) Strategic Asset Management Asset Integrity Management Risk Based Inspection (RBI) Reliability-centered Maintenance (RCM) Turnaround Optimization SIL Verification CMMS Configuration Asset Knowledge Management (ARMour ) Exploration EPCM Operator Remediation Certification & Quality Assurance Environmental Audits Conception Procurement Services Technical Due Diligence Compliance NDT Handover Environmental Audits Occupational HSE Mgmnt. Mineral Analysis Failure Analysis NDT Services End of Life Remediation Management Structural Testing Condition Monitoring Services Services Fig 12. Whole of Life Engagement Philosophy and Range of Professional Services 9

THE BUREAU VERITAS ADVANTAGE World Leader Since 1828, Bureau Veritas has grown and established itself as a leading global professional services organisation providing Inspection, Auditing, Certification, Consultancy, Laboratory Testing and Conformity Assessment. Knowledge and Expertise The technical knowledge and availability of our qualified local teams mean we are able to provide effectively packaged and targeted support. These strengths are relied upon and valued by our clients. Network With a network of 900 offices and laboratories and over 39,000 employees in more than 140 countries, Bureau Veritas serves 370,000 customers from diverse industries across the world. Personalised Service Bureau Veritas adapts its service according to your needs and helps you overcome your challenges at lower cost. Competitive Advantage We specialise in servicing a diverse range of industry clients ranging from small to medium companies, to large international firms and Government agencies across multiple sectors. Bureau Veritas provides services via eight dedicated Business Lines globally: Health, Safety & Environment. Industry. Marine. International Trade. Certification. Consumer Products. Inspection & In-Service Verification. Construction. By teaming with Bureau Veritas you engage with a seasoned industry partner, capable of scaling to your requirements to ensure you achieve the required competitive advantage, throughout the asset lifecycle. Key Bureau Veritas Aus & NZ Locations. CONTACT For details about this service, please contact Bureau Veritas (AIRS Division) Aus & NZ Phone Australia: Perth: +61 (0) 8 9481 0100 Melb HQ: + 61 (0) 3 9922 0700 FOR MORE INFORMATION Please Visit: www.bureauveritas.com.au Email: bvaus@au.bureauveritas.com