Introduction to ASM Jason Laberge Operations Outreach Seminar

Introduction to ASM Jason Laberge Operations Outreach Seminar Honeywell ASM® Consortium Outreach Seminar June 13 th, 2008 Kuala Lumpur, Malaysia This document and the information contained herein are confidential to the ASM Consortium and the property of Honeywell International, and are made available only to ASM Consortium member company employees. This document, and any copy thereof, and the information contained herein shall be maintained in strictest confidence; shall not be disclosed or distributed (a) to persons who are not ASM Consortium employees, or (b) to ASM Consortium employees for whom such information is not necessary in connection with their assigned responsibilities. When the employee in possession of this document terminates employment with the ASM member company, this document and any copies thereof shall be returned to the employee’s manager. There shall be no exceptions to the terms and conditions set forth herein except as authorized in writing by the responsible ASM Program Manager in accordance with the provisions of the ASM Consortium Agreement. ASM® and Abnormal Situation Management® are registered trademarks of Honeywell International Contains ASM Consortium Proprietary Information

ASM Presentation Overview • What is the ASM Consortium • The ASM Problem • ASM History and Program Periods • Organizational Structure • ASM Website • Discussion/Questions Page 2 ASM Consortium Proprietary

ASM Abnormal Situation Management® A Joint Research and Development Consortium Founded in 1994 Creating a new paradigm for the operation of complex industrial plants, with solution concepts that improve Operations’ ability to prevent and respond to abnormal situations. Human Centered Solutions Helping People Perform www. asmconsortium. org Page 3 ASM Consortium Proprietary

ASM What is an Abnormal Situation? • An industrial process is being disturbed and the automated control system can not cope. . . • Consequently, the operations team must intervene to supplement the control system. • Impacts profitability in multiple ways: Product Quality Job Satisfaction Page 4 Loss of Life Equipment Damage Product Thruput ASM Consortium Proprietary Personal Injury

ASM Accidents, while rare, add Costs $10 B annually in US alone Normal Plant Production Level Operating Target Profit Lost Profit Break-even Loss Incident (Lost Revenue) Shutdown (Lost Capital) Time Page 5 ASM Consortium Proprietary

ASM Fundamental ASM Problem The Paradox of Automation… • Better automation leads to more sophisticated processes • More sophisticated processes leads to more opportunities for error • We “fix” the increasing errors with still more automation When things go wrong, people have difficulty intervening to correct the problem! Poor User Centered Automation Page 6 ASM Consortium Proprietary

Events Cost 3 -8% Capacity ASM Unexpected > $10 B annually in Lost Production Source: ASM Consortium Research 5. 8% 24. 2 M 38. 5 M Plant Operating Target 33. 5 M Operational Constraints Summarized Production Data Days per Year Plant Incidents Optimization efforts Plant Capacity Limit < 60% Page 7 Daily Production Level 95% ASM Consortium Proprietary 100%

ASM Solutions Minimize Impacts $MM Added to the Bottom Line (Higher) Plant Operating Target Operational Constraints Days per Year ASM Efforts Recovery of 3 -8% of Capacity Plant Capacity Limit < 60% Page 8 Daily Production Level 95% ASM Consortium Proprietary 100%

ASM Consortium History • 1990 - Formed an Alarm Management Task Force • 1992 - Asserted need to go beyond alarm management • 1993 - Project to understand abnormal situation management with 4 of Honeywell customers • 1994 - Generated ASM problem statement and solution requirements document • 1994 - Founded the ASM Joint R&D Consortium - 10 companies • 1995 - Started NIST ASM Collaborative Decision Support Program • 1998 - Established ‘Designed for ASM’ products/services • 1999 - Decided on 3 -year short-term research to field concepts • 2002, 2005 - 3 -year programs with emphasis on closing gaps on effective operations, development, and deployment • 2008 – New 3 -year program with focus on metrics and communications to increase the Consortium role in industry Page 9 ASM Consortium Proprietary

ASM Organizational Structure Leadership Team Development Honeywell Funds ASM Funding ASM Director Prog. Mngmt Peggy Hewitt (HON) Liana Kiff (HON) Research Communications Doug Metzger (HON) Jason Laberge (HON) Peggy Hewitt (HON) Development Subcommittee Research Subcommittee Communications Subcommittee Incorporating ASM into Products, Services Understanding ASM, Solution Concepts Dissemination of ASM Knowledge User Member Reps Associate Member Reps University Member Reps Member Dues Page 10 ASM Consortium Proprietary

ASM Page 11 ASM Website (External) www. asmconsortium. org ASM Consortium Proprietary

ASM Page 12 ASM Website (External) www. asmconsortium. org ASM Consortium Proprietary

ASM Page 13 ASM Website (External) www. asmconsortium. org ASM Consortium Proprietary

ASM Page 14 ASM Website (Internal) www. asmconsortium. org ASM Consortium Proprietary

ASM Page 15 ASM Website (Internal) www. asmconsortium. org ASM Consortium Proprietary

ASM Page 16 ASM Website (Internal) www. asmconsortium. org ASM Consortium Proprietary

ASM Page 17 ASM Website (Internal) www. asmconsortium. org ASM Consortium Proprietary

ASM Page 18 ASM Website (Internal) www. asmconsortium. org ASM Consortium Proprietary

ASM Discussion/Questions • Thank You! • Questions and/or Comments – How does ASM related to existing improvement programs like OPI? Page 19 ASM Consortium Proprietary