PlantSuccess Newsletter

Volume III, Issue 7

26 March 2003

Dear Subscriber:

Last year, corporate ethics (or lack thereof) was given a lot of play by much of the media and cited as being a significant contributing factor to the decline of the US stock market and the world economy. The interests of the press are on Iraq today while many over-paid, under-achievers are wending there way through the US court system on a variety of criminal charges. The civil suits will follow.

There may not have been many, but they were big – Enron’s bankruptcy is the largest in history and impacted the accounts of millions of investors. Enron and the others have contributed to a major problem of credibility that the average person has with Wall Street.

The repair is underway. Although it shouldn’t mean much, CEO’s and CFO’s jumped at the opportunity to certify the accuracy of the reports they file to the SEC. The ethics programs at the country’s leading business schools are getting renewed attention and forums are popular. The goal, of course, is to restore public confidence in corporate America.

Warren Buffet called the need to restore corporate integrity as being “vital to this country” and cited a recent survey that said Americans trusted chief executive officers about as much as used car salesmen.

This is a great time of year for Buffet fans; his annual letter to the shareholders is published for his company’s annual meeting in March. His letter for 2002 begins with: “Our gain in net worth during 2002 was $6.1 billion, which increased the per-share book value of both our Class A and Class B stock by 10 percent. Over the last 38 years (that is, since present management took over) per-share book value has grown from $19.00 to $41,727, a rate of 22.2 percent compounded annually. In all respects, 2002 was a banner year.”

A statement like that on 2002 is not heard often. Buffet’s style is legendary and simple – “To be a winner, work with winners.” Perhaps because of his penchant for winners, Buffet has been tremendously successful with his managers, many of whom haven’t the “slightest financial need to work.” And, he claims, “We now have six managers over 75. Our rationale: It’s hard to teach a new dog old tricks.”

PlantSuccess also attracts winners. Join us at the Hilton Houston NASA Clear Lake, 9-10 April for PlantSuccess Gulf Coast 2003. Join innovative managers with the industry’s leaders and their presentations on the successful implementation of engineering IT and its impact on business drivers, work practices and integration requirements.

PlantSuccess sponsors – AVEVA, Ivara, JD Edwards and OSIsoft – and their customers are winners because of the commitment these technology providers have made to owner-operators in the process industry and to many of their critical applications in plant operations and maintenance.

Visit www.PlantSuccess.com to:

Best regards,

Carl Howk, Chairman

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Conference Agenda: A Synopsis

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Despite months of uncertainty regarding additional terrorism, a war in Iraq and a sense of malaise regarding the US economy, PlantSuccess has organized another outstanding roster of speakers under the theme: Best Practices Driving Plant Performance. With this conference, more than 90 speakers have contributed to PlantSuccess.

Keynoter is Doug Walker, a recently retired executive with ExxonMobil. In 1988, Walker’s final position took him to the Far East when he became the Singapore Chemical Plant Manufacturing Director for the $2 billion petrochemical complex that includes a liquids steam cracker, a polyethylene plant, a polypropylene plant and an oxoalcohol plant. Walker will share his views after 34 years with an industry leader on a subject he knows well: The Environment for Competitive Success, and “set the conference table” for another roster of outstanding speakers.

Walker will be introduced by Kirk Wilson, Bayer’s VP of engineering services and keynoter for PlantSuccess 2001. Session moderator for the Q&A will be Ken Eickmann, director of the Construction Industry Institute (CII) and retired USAF Lt Gen.

Process manufacturers utilize a full-range of very different business models – from high percentage outsourced to almost completely in-house and everything in between – in support of their operating plants. In this session, industry leaders describe the rationale for their approach. Join DuPont's Kelly Byers, Bayer’s Martin Brown and Dow Chemical’s Richard Brod in a session important to all plant operators. Moderator for this session: Different Approaches to Supporting Plant Operations is Charlie Gillard, a plant executive recently retired from Shell Deer Park Refining.

Successful requirements planning and asset management is key to the profitability of process plants. Eastman Chemical’s Johnette McDaniel will present a portion of their ERP experience with SAP and Ventura Food’s Carlton Cunningham will present their EAM experience with JD Edwards; industry consultant Gerhard Meinecke will moderate.

The issue of security became a critical part of work and everyday life with the terrorist attacks of 9/11. This session, Industrial Security: A National and Corporate Perspective, will feature the experience of industry giant ExxonMobil and Ben Butchko senior security engineer. He will be joined by Ken Eickmann, extensively involved with Homeland Security issues for the State of Texas and the Federal Government, in a session moderated by Bill Beazley, executive director, the Society of Piping Engineers and Designers.

George Pohle, senior staff engineer, Shell Global Solutions US has been integrally involved with the implementation of a successful Ensure Safe Production (ESP) process at nine refineries. Pohle will discuss how they have achieved economic targets through improved work processes and increased collaboration and a project that encompasses best-in-class solutions driving “best practice” implementation. Rob Harvan, senior editor, World Refining Magazine, moderates this session.

PlantSuccess major sponsor representatives will discuss significant commitments made by these companies to meet application requirements of owner operators and unique capabilities in software and services that support plant operations and maintenance. Join Dow Chemical’s Bob Donaho, director of design engineering, as the moderator for the session: Solutions for Process Industry Owner-Operators, with these participants:

Steve Lorenz, Business Development Manager, AVEVA

Gino Palarchio, VP of Client Solutions, Ivara

Mark Wieber, Marketing Manager, Asset Intensive Industries, JD Edwards

Tom Hosea, Application Consultant, OSIsoft

Knowledge Management (KM) gets increased attention each year because operating plants continue to lose important experience and knowledge at an alarming rate and because there is growing success with commercial implementations of KM. John Voeller, CKO and CTO for Black & Veatch, renowned technologist and industry leader, has assembled an outstanding team from the industry's key practitioners in KM for this extended session with the appropriate title: Knowledge Management -- Getting Tangible About the Intangible. For a discussion of what works and an understanding of the commitment to KM made by these industry leaders, join:

Jill Kennard, Business Manager for Knowledge Management, DuPont

Carol Arnold, Leader – DuPont Engineering University

Charles Rowney, Chief Knowledge Officer, CDM

John McQuary, VP of Technology & Strategies Organization, Fluor

Kent Greenes, Chief Knowledge Officer/SVP, SAIC

Mike Alianza, with Intel’s Capital Development Group, will share the experience of this leading manufacturer to achieve a major upgrade of a fabrication facility in a very competitive market. Intel has been very successful with its use of many of the IT industry’s current tools including laser scanning, 3-D plant models and integrated databases – tools used with varying degrees of success by process manufacturers. Charlie Gillard will moderate the session: Intel Retrofit Succeeds with Technology, Innovation and Time to Market.

FIATECH Project Manager, Charles Wood, will provide an update on two key projects from an important industry organization. Many process industry leaders are strong supporters of FIATECH projects; learn about the current state of two major projects: Lifecycle Data Management and Technology Road Mapping, Gerhard Meinecke will moderate.

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Current Links

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Intel’s Barrett Paints an Untethered World

"After 20 years of talking about it, this is really the most tangible example of the convergence of computing and communication," said Intel CEO Craig Barrett as he introduced his Centrino wireless chip. READ MORE.

Guiding Your Business to the Ends of Its Imagination!

From the Knowledge Management page of the SAIC Website: “Learning is the only sustainable source of competitive advantage. From deregulation to dot.com, the way businesses do business is changing at an accelerating pace.”

READ MORE and join the KM session at PlantSuccess Gulf Coast 2003 with John Voeller as moderator and Kent Greenes, SAIC’s Chief Knowledge Officer, as a panelist.

The PlantSuccess Newsletter generates a substantial number of visits to our website, we welcome the interest and the access to previous issues of the Newsletter which are available there. If you'd like to share this newsletter with a colleague, just forward a copy. Subscribe or cancel by sending a request to Carl.Howk@PlantSuccess.com

Full links to Volume III, Issue 7 Newsletter articles:

  1. http://www.foxnews.com/story/0,2933,81163,00.html
  2. http://www.berkshirehathaway.com/letters/2002pdf.pdf
  3. http://www.plantsuccess.com/
  4. http://www.aveva.com/
  5. http://www.ivara.com/
  6. http://www.jdedwards.com/
  7. http://www.osisoft.com/
  8. http://www.informationweek.com/story/IWK20030312S0012
  9. http://www.saic.com/km/
  10. http://www.plantsuccess.com/