1. Chad Broussard
Sr. Staff Engineer, Reliability
March 2012

2. 2Restricted Confidential – Business Information
Reliability Centered Maintenance in CPPL
RCMRCM
ReactiveReactive Time-BasedTime-Based Condition-BasedCondition-Based ProactiveProactive
•Small items
•Non-critical
•Inconsequential
•Unlikely to fail
•Redundant
•RCFA identified
•Age exploration
•FMEA identified
•Acceptance
testing
•Failure pattern
known
•Subject to wear
out
•Consumable
replacement
Time Based Failures Cover 8% to 23% of failures.
•Random failure
pattern
•Not subject to
wear
•PM will not
prevent these
failures!
Condition Based Failures Cover 77% to 92% of failures
5% of
work
35% of
work
50% of
work
10% of
workGoals:

3. 3Restricted Confidential – Business Information
What is Reliability?
Good Design
Quality Construction
Excellence in Operations
Excellence in Maintenance
Inspections and Analysis
Reliability is the sum of these 5 elements.
Therefore, we all own reliability!

4. 4Restricted Confidential – Business Information
Reliability Centered Maintenance in CPPL
RCMRCM
Condition-BasedCondition-Based
50% of
work
Starting place for this decision moment:
• Critical rotating equipment and engines
• Gear boxes
• Lubrication
• Related motors

5. 5Restricted Confidential – Business Information
RCM Technologies Provided
 Vibration Data Collection
• Pipelines (460+ Most Critical Assets)
• Terminals (20 – 40 Most Critical Assets)
 Oil Sample Collection
• Monthly (Engines)
• Quarterly (Gearboxes and Large Oil Systems)
 Repair and Installation Standards and Specifications
• Must go out in 2012 to all facilities.
 Other Technologies
• Ultrasonic
• Electrical Testing
• IR Thermography

6. 6Restricted Confidential – Business Information
Analysis and Reporting Details
 Vibration Analysis & Oil Analysis, Reporting w/recommendations
 Website Dashboard Available for all Assets
• Quickly Monitor & Review Asset Status
• High Level
• Technical Detailed Reports
• Vibration Analogs -> SCADA-> PI-> Reliability Team

7. 7Restricted Confidential – Business Information
SCADA + Cloud Technology

8. 8Restricted Confidential – Business Information
Mobile Diagnostic System
 EASY INSTALLATION
 RAPID CONFIGURATION
 CLEAR DIAGNOSTICS
NEAR REAL-TIME ONLINE ACTIONABLE
DIAGNOSTICS

9. 9Restricted Confidential – Business Information
Network and Communications Flexibility
Communications with SAP/CMMS
SCADA / PI 2010
Reliability Team

10. 10Restricted Confidential – Business Information
RCM – Phased Approach
Outsourced Data
Collection, Analysis &
Recommendations
Eng. Services
Review and
Work Request
Rotating
Equip. Leads
Plan &
Perform Work
Phase I
Outsourced &
Auto Data
Collection
Eng. Services Analysis,
Recommendations &
Request (add RE in year
three)
Planners &
Schedulers (will have to
identify resources –team
working this)
Rotating Equip
Leads Perform
Work
Phase II
Auto Data Collection
& Lubricants
Program
Planners &
Schedulers
Rotating Equip
Leads Assess
Data &
Perform Work
Phase III
Eng Services Analysis,
System Maintenance
and Program Evolution

11. 11Restricted Confidential – Business Information
Reliability Centered Maintenance in CPPL
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
Millions
Instrum
entation
Pipes
Rotating
Equip
Unknow
n
TanksLighting
ElectricalSafety
Buildings
FacilitiesBoilers
M
iscM
arine
Maint $/YR
A portion is electric motors
for rotating equipment
A portion is critical rotating equipment and engines
Numbers have
some amount of
uncertainty
App.
$3.2MM/yr

12. 12Restricted Confidential – Business Information
Economic Drivers
Rotating Equipment et al $3.2MM/YR
Electrical Motors $1.2MM/YR
Actual Yearly Breakdown
Maintenance Costs
• 60% of the spend is Pipelines
• 40% of the spend is Terminals
• East GC Terminals has already put
in place a contract program to
stabilize their spend or it would be
higher

13. 13Restricted Confidential – Business Information
Goals and Assumptions
 Goal: Reduce spend by 65% over a five year period and sustain
• Fully expect a $2 MM/year reduction in spend when mature
 Assumptions
P10 case: 20% reduction in cost per year
P50 case: 30% reduction in cost per year
P90 case: 35% reduction in cost per year
13% Discount rate used
 Program Costs
• Contractor Costs: $1.2MM +/- 20%
• Additional Reliability Eng. in year 3

14. 14Restricted Confidential – Business Information
Impact to Operations
 CFR pricing came in at 1.25MM versus .5MM
 Great Idea  Poor Business Case
 Discussion with Todd Tullio
• Condition Based Monitoring Technicians - Does not meet 4 part qualifications for O/Q
qualification.
• Pipeline and Hazardous Materials Safety Administration – Subpart G –Qualification of
Pipeline Personnel 195.501 (a) (b) 1,2,3,and 4.

15. 15Restricted Confidential – Business Information
NPV & Tangible Benefits
Free-up resources for
more value added
condition driven
maintenance(↓$)
Optimized PdM
Technologies &
Frequency(↓$)
Reduce Non- Value Added
time driven
maintenance(↓$)
SAP/CMMS Structure:
Optimum Data, PM
Optimization 40%,
Awareness Training,
Source & Failure Codes
ID
Criticality Assessments Improved
Improved
Operator Safety
Operator Safety
One size does not fit all
due to criticality
ratings (↓$)
Maintenance &
Reliability Manual –
Unity, Governance &
Accountability w/RACI
allocations to each job
function.

16. 16Restricted Confidential – Business Information
East Gulf Coast Terminals Division
 2010 experienced a Equipment Breakdown Cost of $1MM – $1.2MM in one
year.
 Implemented Vibration Program in Early 2011.
 Experienced no unscheduled breakdowns after vibration program was
implemented.
 Able to perform acceptance testing.
 Repaired old equipment to expected standards (w/o new replacement) to
insure optimum operation.
 End Results – Alvin Brass and Olvice Greenwood are very happy with the
success of their new vibration program.

17. 17Restricted Confidential – Business Information
Cost Distribution
Pipeline and Terminal Divisions
Pipeline Division (June 2012 –Dec. 2012 $180,000 =
TOTAL
PIPELINE
BUSINESS
$36,000 =
EACH PIPELINE
DIVISION
Terminals Division (June 2012-Dec. 2012) $120,000
TOTAL
TERMINAL
BUSINESS
$24,000 =
EACH
TERMINAL
DIVISION
Pipeline Division 2013 $360,000/YR. $72,000
YR./DIV.
Terminals Division 2013 $240,000/YR. $28,800/DIV.
Note: The pricing could change by +/- 20% as we are currently going through final negotiations with CBM service provider.

18. 18Restricted Confidential – Business Information
Questions, Comments and Discussions