Bridging the Gap

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Doug Machon presentation at the 2011 International Biorefining Conference

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Bridging the Gap

  1. 1. International Biorefining Conference<br />Strategies To Address The High Costs of<br />Operations & Maintenance<br />Douglas Machon, Sr. Manager<br />NAES Corporation<br />
  2. 2. Agenda<br />
  3. 3. ABOUT NAES<br />Domestic Offices<br />Business Segments<br />Bio-Markets Vision<br />Strategic Direction<br />
  4. 4. ABOUT NAES<br />Experience Base<br />Active Portfolio<br />NAES O&M<br />Geographies<br />
  5. 5. Agenda<br />
  6. 6. O&M SCOPE<br />Concept<br />O&M<br />Feedstock Receiving<br />Production<br />Plant Systems<br />Cost-Effective Conversion of Feedstock to Commercial Products<br />
  7. 7. O&M SCOPE<br />Project Periods<br />
  8. 8. O&M SCOPE<br />Measurement<br />Holistic: Deliver Value in All Areas<br />
  9. 9. Agenda<br />
  10. 10. O&M BEST PRACTICES<br />Philosophy<br />Focus on the Fundamentals<br />
  11. 11. O&M BEST PRACTICES<br />Programs<br />Objectives<br />Continuous Improvement<br />Processes<br /><ul><li>Participation in industry activities/conferences
  12. 12. Leadership of technology users groups
  13. 13. Sharing of Lessons Learned and Best Practices
  14. 14. Plant and fleet assessment programs
  15. 15. Access to plant/technology database
  16. 16. Preferred vendor lists
  17. 17. Group pricing agreements / purchasing power
  18. 18. Always drive value; Always get better</li></li></ul><li>O&M BEST PRACTICES<br />Bankable Projects<br />
  19. 19. Agenda<br />
  20. 20. STRUCTURING O&M<br />Owner/Operator Alignment<br />Decision Points<br />IDENTIFY WHAT’S MOST IMPORTANT:<br />STRUCTURE O&M TO THOSE NEEDS:<br /><ul><li>Cost vs. production (see below)
  21. 21. Fixed price vs. cost transparency
  22. 22. Typical scope vs. customization
  23. 23. Plant objectives vs. alignment of incentives
  24. 24. Roles of owner/operator in budget development
  25. 25. Roles of owner/operator in operating plan
  26. 26. Validating first-of-its-kind technology?
  27. 27. No frills people and process management?
  28. 28. Turning around an underperforming asset?
  29. 29. Plant as a training ground for future plants?
  30. 30. Operations experience to achieve financing?
  31. 31. Strategic partnership to extend w/licensing?
  32. 32. Need to gradually develop O&M capability?</li></ul>Cost Vs. Production<br />

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