This document discusses how innovative automation can improve operational efficiency. A main automation contractor (MAC) can optimize instruments, valves, and systems through technology and construction to improve project and operational excellence. Early engagement in automation leads to lower costs, shorter schedules, and more predictable performance. This is achieved through techniques like early design collaboration, transformational automation approaches, lean project execution practices, standardization, and information management leveraging industry expertise. Case studies show how automation solutions have helped customers reduce costs, increase availability and productivity, lower emissions and energy usage, and improve safety. The document promotes Emerson's automation capabilities and localization in Russia to help customers achieve world-class operational results.

1. Operational Efficiency Based on
Innovative Automation, Industry
Expertise, Engineering and Service
Sergey Mishin
Solutions & Services Department Director
Eastern Europe, PhD, PMP

2. Successful projects require planning and bottom line value
maximization across key involved parties at early phases
2
Main Automation Contractor (MAC) optimizes instruments, valves, systems together with technology &
construction for all processes. Automation functionality is crucial for project & operational excellence
Independent Project Analysis (IPA), Inc., Industry Metrics, September 2015
Actual project schedule and cost per each $1B of initial budget

3. Automation have to be flexible both for construction and for operational changes
3
Innovative automation saves cost and accommodates technology changes & additional needs 3
• Early engagement results in:
– Lower total installed costs,
– Reduction in project schedules,
– More predictable performance
to the project plan.
• By leveraging:
– Early design collaboration (FEED),
– Transformational automation,
– Lean project execution best practices,
– Standardization and modularization,
– Information management,
– Industry expertise.
Example: control and safety systems electronic marshaling:
Smart
Junction Box
Fiber / Ethernet Twisted Pair
1 Cabinet w.
controllers
* Based on 18,000 I/O points plant
• 95% reduction of cables*, trays
• No marshaling cabinets
• All input/output types
Automated docume-
ntation and software
configuration
All parties with same
project processes,
templates & tools
Unified off-the-
shelf control &
safety cabinets

4. Safety
Production Efficiency
20-40 years of operational efficiency is the most important result of a
project. Improvement from industry average to top quartile performers
4% higher
availability
Half the
maintenance
costs
3X fewer
recordables
and process
incidents
20% lower
operating costs
Reliability
Energy & Emissions
Process
Incidents
4th 1stQuartiles
Utilization
4th 1stQuartiles
Energy Use
CO2 Emissions
4th 1stQuartiles
Availability
Maintenance
4th 1stQuartiles
30% lower
emissions
30% less
energy use
Operating Costs
Recordables
Sources: Refining and Petrochemical Benchmarks,
API, Solomon, OSHA, IHS Markit and Company Reports
10% higher
utilization rate
4

5. Reliability example: top quartile performers spend several times less for maintenance
and repair than bottom quartile but have maximum assets availability
5
Automation reorganizes operation and service due to on-line diagnostic of performance, health,
energy moving industrial facilities towards the first quartiles in safety, efficiency, reliability
MaintenanceCost($Mper$1Bassets)
First QuartileSecond QuartileThird QuartileFourth Quartile
MechanicalAvailabilityIndex
Based on Solomon Associates LLC Reliability and Maintenance Study 2013
0
100
200
300
400
6
7
8
9
10
Business profitability
correlates with on-
line diagnostic
Mechanical
Availability
Maintenance
Cost
A typical facility will spend less than
10% of its time in transient operations
but 50% of all safety incidents occur
during this time.
- Chemical Processing.
As much as 43% of unplanned
downtime is caused by equipment
failures which can be predicted by
on-line monitoring & diagnostic.
- Large Property Damage Losses in the
Hydrocarbon-Chemical Industries.
Average costs to repair a failed
asset is 50% more than if the
problem had been addressed
prior to failure.
- U.S. National Response Center
Assets with vibration
diagnostic, %

6. Preferably wireless non-intrusive and multi-parameters sensors
minimizing process intervention using magnetic or clamp holders
6
Easy to deploy flexible on-line diagnostic for thousands of assets to prevent manual inspection,
reduce safety incidents, increase efficiency, predict failures, minimize production losses etc.
P,T,L,F
Leaks
VibrationTemp
Corrosion
Erosion
Process analytics
• Safety
• Performance
• Health
• Energy
Health
100%
0%
Failure time

7. On premise asset management platform for entire plant or company
7
Flexible, scalable, open architecture on-line production diagnostic system is a must to achieve
top quartile safety, efficiency, reliability both for the existing facilities and for a new construction
Alerts
Reliability Safety
CSI 2140
Ovation
Orange
• CSI 6599 Classic
• CSI 6500 ATG
Energy
efficiency
Production
quality,
plan, cost
Maintenance
& repair
• New sensors can be connected directly
through industrial wireless which is key
for new & existing facilities
• Conventional control and safety
systems are just one of data sourcesLocal PI
server or
cloud
platform
• Mobile workers &
remote experts
• Service providers,
assets producers staff
Team responsible for each case actions

8. Detailed alert info,
recommended and
taken actions
Easy to configure personnel collaboration based on real-time production KPIs
Asset Explorer
Composite KPIs calculated hierarchically
Roles and names of the personnel
responsible for the alert type
Relevant alerts
collapsed into
conversations for each
area of responsibility
8

9. On-line models alerting about deviations for
collaborative proactive actions increasing KPIs
9
Performance advisorHealth advisor Energy advisor
• Production plans vs. results
• KPIs (productivity, quality, cost
etc.) linked with process
efficiency, equipment health etc.
• On-line financial impact of
production KPIs deviations
• Degradation trends combined
with process conditions & KPIs
• Degradation sources, critical
fault & shutdown predictions
• Maintenance & repair planning,
lifecycle history per assets
• All types of fuels, generation,
distribution and consumption
• Electric, steam, water, heat etc.
• Heaters, boilers, pumps,
turbines, heat exchangers etc.
• Empirical energy norms and
deviation costs on-line
Company-wide real-time KPIs (hierarchy from assets to units, plants) linked with responsible personnel 9
White Box Models
Thermodynamic 1st principles models
based on process & equipment expertise
Black Box Models
Statistic models, neural networks
Unsupervised machine learning

10. 1 day downstream performance meeting with middle-management.
Unit by unit automaton state of art, opportunities with investments and benefits
10
The outcome is automation program prioritized by ROI, budget constraints, legislation (incl. safety) etc.
10
Key managers
Operations
Mechanic equipment
Energy
Maintenance
Health & Safety
Environment
Automation
Emerson team
Industry expert leads team
involved based on preliminarily
agreed relevant agenda
Example of priority solutions for particular process problems, installed assets etc.:
Paybackperiod,months
Health&safety
drivensolutions
Required investments
Gas & liquids
emission
monitoring, SIL3
safety loops
Gas and liquid
leakages detection,
people tracking,
training simulators
Fire, explosive
and poisonous
gases monitoring,
HAZOP consulting
On-line products
quality analysis,
valves diagnostic,
mobile workers
Pumps,
compressors,
turbines vibration
diagnostic
Heat exchangers,
fired heaters,
air coolers
monitoring
Multi-fuels boilers
optimizing control,
turbomachinery
antisurge control
Energy consump-
tion, corrosion,
water quality
monitoring
Advanced control,
loops tuning, steam
collectors, relief
valves monitoring

11. Customer success
Initial project objectives Solution
• Criticality and risk assessment
• Revaluation of maintenance work
processes together with
diagnostics technologies
• Rotating equipment mechanical
availability increase
• Change management and reliability
work culture training
Middle East: large refinery has increased reliability and reduced costs
$6.57M/year
DOWNTIME LOST
PROFIT
90%
reduction
MECHANICAL
AVAILABILITY
2%
increase
$1.3M/year
ROTATING EQUIPMENT
MAINTENANCE COST
9%
reduction
COMPRESSORS
PRODUCTIVITY
INCREASE LEADS
TO $0.85M EXPENSE
AVOIDANCE
20%
increase
0.35%
increase mechanical
availability
$7.3M/year
avoid lost profit
$0.6M/year
reduce rotating equipment
maintenance costs
Quantified business results
11

12. Customer success
Solution: energy measurement,
tracking and reporting
• 100 new energy measurements
• Wireless including long distances
• Central data historian connected to
multiple control platforms
• Cost allocation to separate
responsible departments
• Identification of energy waste
North America: large complex has cut water and energy consumption
$1.7M
Investment
$6M
1st year return
Water use
13%
reduction
Total energy use
38%
reduction
1st year
25%
reduction
50%
reduction
4 years
cumulative
Project objectives: reduce
water and energy
consumption. Problems:
• Corporate and community
pressure to reduce consumption
and emission
• Many large process units
distributed over 5 square miles
• Multiple control platforms
• Many years of “free” energy
consumption culture
12
Quantified business results: from 4th to
1st quartile energy performance

13. Chelyabinsk factory achieves world best quality, fast delivery, production localization
13
Emerson started localization in 2004 since Metran acquisition
Now up to 80% of the equipment for automation projects is made in Russia 13
Pressure Temperature
Level Analytic and control systemsFlow
Control and on-off valves

14. Russia & CIS industry experts, projects, engineering, service, R&D
14
Emerson turnkey automation for O&G, Chemistry & Petrochemistry, Power, Metal & Mining 14
Offices
Service centers
Production, Research &
Development (R&D)
Chelyabinsk
Siberia and Far East
Ural
North-West
Volga
Kazakhstan
Ukraine
Belorussia
Central
South
St. Petersburg
Kiev
Baku
Atyrau
Almaty
Moscow
Khabarovsk
Yuzhno-Sakhalinsk
38 regional offices
15 service centers
1500 employees

15. Sergey Mishin
Solutions & Services Department Director
Eastern Europe, PhD, PMP
Questions & Answers
Operational Efficiency Based on
Innovative Automation, Industry
Expertise, Engineering and Service