GE Energy. Problem Solved. How can I improve flexibility for new and existing plants? 2010 GE Energy Customer Solutions Conference

GE Energy Problem Solved. How can I improve flexibility for new and existing plants? 2010 GE Energy Customer Solutions Conference

GE Energy Gas Turbine Repairs Fulfillment & Technology Improvements Jim Sutton Manny Gaspar

Repair Service

Power Generation Services Who we are what we do Diagnostics, Parts & Repairs Performance Uprates Outage & Field Services Installations & Technical Direction Technical Training 3

Parts & Repair Services Repairs Parts Gas Northern U.S. & Canada Europe Fulfillment Steam/Gen Southern U.S. Middle East Forecasting Latin America India Industrial Western U.S. Asia Pacific Sourcing Product-based supply chain Integrated global team - regional focus Fulfillment culture driven by: EHS, Quality, Delivery, Cost and Productivity 4

Parts & Repair Services A global business with local presence Operating in more than 14 countries ~ 60 locations Approximately 3,300 employees 5

Leading Change Parts & Repair Services Defining Expectations EHS, Quality, Cycle, Productivity, Technology Training Experts Service Center Managers Playbook Measuring Progress Standard Process & Metrics Leveraging Global Learnings CoE Fulfillment Excellence 6

CoEs Energy GT Repair Vision Yesterday Future Established small sites Energy Large Aviation Aero region sites Random locations non-strategic Regional alignment Rail Oil & Gas Energy centric GE Infrastructure network Investment & support spread thin Focused investment Multiple product focus CoEs by component Segregated by frame size Consolidated by capital Feast or famine volume Level loaded volume Technology variation Technology depth Incremental productivity Significant productivity Insufficient resources... cell mgmt Dedicated structure Eng, Quality Site by site practices... variation Controlled repeatability Quality Batch production long cycle Lean manufacturing improve cycles Decreased cycle times Centralized expertise Component driven focus Benefits State of the art technology and equipment EHS excellence Enhanced repair quality and consistency 7

Gas Turbine Repair Network 7F Service Centers Cincinnati OH Basildon, UK Veresegyhaz, Hungary Yokohama, Japan Greenville, SC Houston, TX McAllen, TX Component Buckets Combustion H O U G V L A C S C M C A Abu Dhabi, UAE Dammam, Saudi Arabia Bandung, Indonesia Hyderabad, India Qinhuangdao, China Singapore Fuel Nozzles Power Nozzles Rotors Shrouds 3 2 1 COE strategy ~ $150 million investment 3X additional capacity 07-11 Two Energy-Aviation partnerships 8

Repair Network Optimization Customer Customer interface - Contract performance manager - Service manager - Sales manager Optimization Service center network Efficient utilization of network resources within service center and on site Schedule based on capability, capacity, cost Coordinated efforts across the network Facilitated rapid response to customer issues Improved demand forecasting 9

Technology designed for cycle reduction Single piece fixtures Removes need for batches Machinery matching takt Programming and improvements designed for lean flow New technology RTCOE designing new equipment & technology to match output demands Power nozzles - ~ 1 week cycle benefit Buckets 50% reduction in welding hours EDM capability for bucket cooling holes ~2 week cycle reduction Global standardization Repair instructions updated and visual aids to requirements posted Repair Development Center & operations working to common goal 10

Component Repair Execution Focus Reducing repair cycle time Delivering results (repair cycle) Approach Global repair expertise Cross shop component team ownership Infrastructure repair engineering COE Lean application... Gate approach to processing Batch to single piece flow Total in house process Controls... Standard process/work methods Operational takt time by person by day Power nozzles Buckets 7F S1 7F S2 79% 55% 06 09 06 09 7F S1 56% 06 09 11

Investing in Quality 2x increase in quality resources vs. historical levels Driving cultural change and transformation Active engagement in lean events by hourly & salaried employees Significant increase in repair technology & plant & equipment New product introduction funding doubled P&E funding doubled Dedicated shop repair engineering support Standardized repair policy & procedures Standard, consistent work instructions across network Process documentation and rigorous QA/QC Single piece planning individual signoffs Quality is the foundation of our focused improvements 12

Quality Management System Certification Global quality standard drawing from ISO 9001:2008 Foundation building blocks Documentation Training and staffing Auditing and monitoring Continuous improvement Continuous improvement High quality documents and drawings Auditing and monitoring Training and staffing Three year journey high certification rate 13

E-PIP Customer Reports 2 customer report types Incoming (condition) report Final repair report Report templates created from EPIP Job & inspection data generates reports Reports finalized by service center Consistent content/format across network EPIP customer reports include Drawing & serial numbers (incoming/outgoing) Component diagrams Inspection results table Work scope & comments Photos Flow data/pressure test results for fuel nozzles 14

Component Teams Gas Steam Generator Structure Charter Deliverables Core team of dedicated resources Technical experts, with extensive repair experience Expanded team includes: SC specialists Quality RTCOE/Repair Engineering Technicians Develop component repair strategy Cut across individual sites Own network P&E investment strategy Lead repair technology development Drive repair quality Common repair process Standard planning and work instructions Reduced COQ Productivity and cycle improvements Advanced tech repair methods 15

Summary Parts & Repair Services Aligned by technology for regional support Improving the network for controlled efficiency Building sustainable quality systems for world class performance Investing in technology & footprint to meet global & local customer needs 16

Looking Ahead You told us need controls put in place to communicate and maintain accurate promise dates... What we are doing Improving production planning process and systems via workstation tracking and WIP management shipment quality; inadequate crating, incomplete parts kitting, missing documents, identifications SWAT Team assessing best practices within network and standardizing via documented procedures problems receiving reports from the service shop in an accurate timely manner Refining incoming and final inspection reports storing in central repository to improve timeliness EHS Quality Cost Delivery Cycle Productivity 17

Repair Technology Overview Repair Technology Center of Excellence (RTCoE) RDC Overview Repair and component life Summary RTCoE Mission Questions

RTCoE Overview Infrastructure Repair Technology CoE formed in April of 2006 Successful merger of existing Aviation and Energy repair teams Continued growth into Infrastructure businesses Dedicated Repair Development Center (RDC) in Greenville, SC Aero Energy Oil & Gas Aviation Jenbacher Transportation Wind Low Temperature Components, Robotic Inspections 19

RTCoE - Organization Energy Engineering VP Aviation Engineering VP Energy Services VP Aviation Services VP Consulting Engineers General Manager Oil & Gas Services VP Aviation Energy / Oil & Gas Aero Military Jenbacher, Rail Wind, Water, Walter Engines Repair Development Center Airfoils Technology Steam, O&G, Generator, Electrical & Inspection Tech. Combustors, Structures & Rotating Parts Technology Adv. Repair Technologies Compliance Compliance Customer Outages Aviation Airfoils Industrial Airfoils Steam Turbine & O&G Technology Structures, Seals, & Composites Rotating Parts, Bearings & Gearboxes Generator, Electrical & Inspection Combustors & Fuel Systems Cincinnati Lynn Greenville Schenectady Military 20

Outage Team Energy, Oil & Gas, and Wind Field Service NPI and Tooling Development Inputs Outage Visits Lean Team Meetings COSMOS Models Leverage Shop Repairs RTCoE Collaboration Teams Generate Ideas Development and Scale up Industrialize and Train Operators Lean Events/Workouts Customer Requests Input Review Develop/ Validate Qualify/ Roll Out 21

Repair Technology Leadership Leveraging Corporate Resources for Repair Development GE GE Global Research Center GE GE Aircraft Engines Materials & Processes Engineering Materials & Design Engineering Greenville Manufacturing Repair Development Center 22

RTCoE - Repair Development Center 15,000 square feet (1,400 m 2 ) of dedicated space for repair development Opened in 2002 - originally industrial gas turbine focused Approximately $13 million in investment since inception Tooling, equipment, fixtures and processes rolled out to service centers simultaneously Hardware assessment, idea generation, proof of concept, scale up and operator training 23

Some current RDC capabilities Adaptive machining Laser w/ vision system Coating (plasma, HVOF) Thermal cycling furnaces Vac furnace w/ HY clean Elevated temp welding CMM w/ continuous scan UT scanner Wire EDM 24

Repair Development Process Repair need identified Repair engineering + Design + Materials engineering + Global Infrastructure resources Design analysis RDC-full scale dev. Original Repair Process dev Standard instructions, robust process to global network Shop rollout 25

Repair Technology CoE Summary and Mission Repair Strategy Technology Development Repair Industrialization Build Develop Industrialize Build Coordinated Strategy for Infrastructure Repair Technology by Synchronizing P&L Needs with Technical Expertise Develop Competitive Leading Edge Technologies & Repairs in RDCs (Domestic and Global) Integrate with Services Network through Global RDC Strategy Grow - New Product Offerings Customer Impact - Reduced Cost of Ownership Accelerated Roll Out Repair Development Special Process Technology Global RDC Network Equipment & Repair Rollout Outage Optimization, Field Repair, & Tooling 26

Repair and Component Life

Integrated Life Management Approach GE s repair philosophy Baseline analysis Validation Operational data Component experience Destructive examination Distress measurement Calibrated analytical model Repair process development - Design product enhancements - Predict remaining life - Optimize repair plan Field deployment Validation All elements are required for a comprehensive life management approach 28

HGP Component Repair Replacement recommendations in GER3620 are based on engineering evaluations and updated with fleet experience Repairs beyond these limits may be possible for certain parts under standard operating conditions Detailed history on operation and repair is required Incoming inspection may reveal higher fallout with older components Parts will be repaired to GE qualified processes Standard warranty terms will apply 29

Combustor Repairs

Fuel Nozzle Tip Replacement Repair offering for E and F class New automated equipment Alternative to replacing -Atomizing air tubes -Blank cartridges -Liquid cartridges Cut line Blank cartridge swirler tip 31

Nozzle Repairs

Wide Gap Braze Repair - basics 1. Crack cleaning proprietary hydrogen cycle Before cleaning After cleaning 2. Application 3. Braze melt heat treatment 4. Diffusion heat treatment High melt Particle Crack opening Low melt Particle Melting of binder and solidification Diffusion phase formed during diffusion heat treatment Base metal 33

Nozzle Repair Technology Activated Diffusion Healing (ADH) proven Aviation technology GE proprietary wide gap process Industrial Gas Turbine specific New alloy New cleaning process New diffusion cycle RenewAlloy * *Service mark of General Electric Company 34

Why use RenewAlloy? Reduced repair cycle Technology - Less distortion than welding - Greater low cycle fatigue and creep capability than traditional wide gap brazes Life extension - Parts that are not economical to weld repair are candidates for RenewAlloy repair 35

RenewAlloy: FSX-414 repairs Thru-crack repair Craze crack repair Patch repair Flexible preforms Rigid preforms 36

Material testing shows RenewAlloy is better than welding 37

Dimensional Integrity Failure to control throat area & harmonics, engine locating surfaces and sealing may result in the following: Destruction of the hot gas path (HGP) (lack of availability reduced revenue for customer) Reduced turbine performance (reduced revenue for customer) Reduced heat rate (increased fuel cost to customer) Control trips (lack of availability reduced revenue for customer) 38

Consequence of getting it wrong after 4 hours of operation High cycle fatigue failure point 39

Critical Features 1 Area - Total throat area sets the turbine flow 3 Vector - Gas exit angle from the nozzle Area too small, can result in compressor stall Area too large, can result in unit trip & overheated HGP components Shortened or bent trailing edges affect wake, frequency of pulse and angle of impingement on bucket Reduced force on bucket causing turbine performance loss 2 Harmonics - Ensures the pulse from each throat opening is equal Uneven strength of pulse results in high cycle fatigue of buckets 4 Sealing- Sealing faces prevent loss of secondary air flow into gas path Performance loss results from uncontrolled sealing faces 40

Controlling critical dimensional features Step 1 - Re-datum the nozzle Step 2 - Restore trailing edges relative to datums (controls harmonics) Step 3 - Restore throat area relative to datums (controls flow & compressor ratio) Step 4 - Restore locating & sealing surfaces (controls HGP cooling & prevents air starvation to combustion system) 41

Q & A