ASEAN ECONOMIC COMMUNITY (AEC)

10TH AUGUST 2015

THINKING GLOBALLY PROSPERING REGIONALLY

PROEIGHT‘S JOURNEY FROM IMPOSSIBLE TO POSSIBLE

PRESENTER: Ir. AZHAR ZAINAL ABIDIN MANAGING DIRECTOR PROEIGHT SDN BHD

Launching

Analysis

Upending

Analysis

Transportation

Analysis

Pipelaying

Analysis

Marine Engineering & Naval Architectural Consultancy

Design, Manufacture, Testing and Refurbishment of

Mechanical Seals

Business Transformation

1998 2005

ProEight evolved from an Engineering Consultation company into a Mechanical Seal Designer, Manufacturer

and Refurbisher, area of specialty is in the Oil & Gas Industry in year 2005. Diversifies the product into

Designing, Manufacturing, Testing and Repairing of Pump in year 2015.

Design &

Engineering

Consultation in

Mechanical

Seals

R&D

Innovation

Advanced

Manufacturing

of

Mechanical

Seals

Wide Range of

Mechanical

Seals Design

BUSINESS TRANSFORMATION

Product Diversification

Design, Manufacture, Testing and Repair of Pump

2015

Design &

Engineering

Consultation in

Pump

Advanced

Manufacturing For

Pump

Pump

Testing

Pump

Repair and

Refurbishment

STRATEGIC LOCAL PRESENCE

PROEIGHT HEADQUARTERS

MAIN FACTORY: MANUFACTURING &

REFURBISHMENT CENTRE (MRC) BATU CAVES

WAREHOUSE TELUK KALUNG

PUMP TESTING & RESEARCH (T&R)

FACILITY

RESEARCH & DEVELOPMENT (R&D) CENTRE

MAINTENANCE, REPAIR &

OVERHAUL (MRO) LABUAN

PROEIGHT SERVICE CENTRE

MIRI

PROEIGHT SERVICE CENTRE

BINTULU

PROEIGHT SERVICE CENTRE TELUK KALUNG

WAREHOUSE LABUAN

INTERNATIONAL PRESENCE

Philippines

Thailand

U.A.E.

Argentina

International Presence

- Partnership with Tamimi

Group

International Presence

- Wholly Owned by ProEight

International Presence

- Partnership with G.Power

United States of

America (USA)

International Presence

- Wholly Owned by ProEight

International Presence

- Partnership with Philippines

ProEight Inc.

Holland

International Presence

- Inmas B.V. as an Agent for

ProEight

ProEight Inc.

ProEight (Thailand) Co. Ltd.

Philippine ProEight Inc.

South

Africa

Partnership with TAS

Online – Certified API

Pump Trainer

UNDERSTANDING

THE

BUSINESS

APPROACH

&

STRATEGY

RESEARCH &

DEVELOPMENT

(R&D)

CHAMPIONING

FAILURE

UNDERSTANDING

THE

BUSINESS

APPROACH

&

STRATEGY

RESEARCH &

DEVELOPMENT

(R&D)

CHAMPIONING

FAILURE

WHAT IS MECHANICAL SEAL?

Motor Pump

Shaft

Mechanical

Seal

Fluid pumped

in

Fluid discharged

out

Fluid prevented

from leaking out

What is mechanical seal (wet seal): • A device in pump that prevent

leakage of the process fluid.

• Mechanical seal can safeguard

the environment from leakages of dangerous substance.

• PETRONAS SWEC Code :

• Product : PM1 08 01 01 • Service : SM5 02 08 03

90 Years Experience

39.5% Market

Share

UK

Based

Technology

Pioneer

75 Years Experience

Copy from

John Crane US

Based

28.5% Market

Share

Copy from

John Crane

41 Years Experience

Germany

+Japan

Based

23.5% Market

Share

No

Technology

0 Years Experience

0% Market

Share

No

Funding

22 Years Experience

Copy from

John Crane UK

Based

5.5% Market

Share

MECHANICAL SEALS – AN IMPOSSIBLE MARKET

• ProEight is up Against Four (4) Large Corporations Dominating the Oil & Gas Mechanical Seals Industry. None from ASEAN Region.

Market Landscape (Year 2005)

UNDERSTANDING

THE

BUSINESS

APPROACH

&

STRATEGY

RESEARCH &

DEVELOPMENT

(R&D)

CHAMPIONING

FAILURE

MECHANICAL SEALS – AN IMPOSSIBLE MARKET

Competitors Slow

Response

High Price

High Inventory

No Engineering

Support

Customers

ProEight Assessment on Mechanical Seals Industry

Adoption of Blue Ocean Strategy (BOS)

ProEight’s Strategy & Formulation :

A GAME CHANGER

Price

Competing in Established Parameters The Keys

Speed Technology

Delivery too Long

High Price

Customer has to

Stock-up

Old Model

Old Technology

Expensive Technical Support

Poor Engineering & Technical

Support New

Innovations Value Added 1-Day

Manufacturing

1 Day

Refurbishment

New

Inventions Best Price

12 Weeks

Stagnant

Same Model

Better Product

Continuous Innovation

24-Hours

1 Day Manufacturing

Cost

Reduction

Competitive Price

Longer Lead Time

Higher

Cost

THE WINNING EDGE

Technology Speed Price

The Fastest Manufacturer The Best Technology Value For Money

12 Weeks

Stagnant

Same Model

Better Product

Continuous Innovation

24-Hours

1 Day Manufacturing

Cost

Reduction

Competitive Price

Longer Lead Time

Higher

Cost

THE WINNING EDGE

Technology Speed Price

The Fastest Manufacturer The Best Technology Value For Money

THE FASTEST MANUFACTURER

12 Weeks

Stagnant

Same Model

Better Product

Continuous Innovation

24-Hours

1 Day Manufacturing

Cost

Reduction

Competitive Price

Longer Lead Time

Higher

Cost

THE WINNING EDGE

Technology Speed Price

The Fastest Manufacturer The Best Technology Value For Money

• Structural Stress (Linear & Non Linear) • Thermal Stress (Linear & Non Linear) • Computational Fluid Dynamics (CFD) • Root cause Analysis and Improvement

Consultation

IN-HOUSE R&D AND ENGINEERING

R&D & Engineering Core Capabilities

FEA Analysis

• Simplification and standardization of seal design

Innovative

Mechanical Seal

Design

• Improving production process and system

Production Facilities

Improvement

• Selection of better and advanced material

• Improving seal performance and lifecycle

Improvement of

Material and

System Application

R&D Engineer : 30 personnel Design Engineer : 20 personnel Technical Service : 31 personnel Quality Control (QC) : 12 personnel

THE BEST TECHNOLOGY

ANSYS Mastercam X5 CFTurbo

Autodesk Inventor

12 Weeks

Stagnant

Same Model

Better Product

Continuous Innovation

24-Hours

1 Day Manufacturing

Cost

Reduction

Competitive Price

Longer Lead Time

Higher

Cost

THE WINNING EDGE

Technology Speed Price

The Fastest Manufacturer The Best Technology Value For Money

VALUE FOR MONEY

1 Day Delivery

12 Weeks Delivery

100%

of Price 60%

of Price

Competitors

MECHANICAL SEALS – ACHIEVEMENT

Fast Response

Competitive Price

No Inventory

Comprehensive

Engineering

Support

Customers

ProEight Achievement in Mechanical Seals Industry:

ACHIEVEMENT – CONTRACTS AWARDED

2010 2011 2012 2013 2014

SMSO

2015

SMSO

FROM IMPOSSIBLE TO POSSIBLE

YEAR 2015 CURRENT MARKET LANDSCAPE IN MALAYSIA (2015)

100 Years Experience

2.5% Market

Share

UK

Based

Technology

Pioneer

85 Years Experience

Copy from

John Crane US

Based

1.5% Market

Share

Copy from

John Crane

51 Years Experience

Germany

+Japan

Based

1.0% Market

Share

32 Years Experience

Copy from

John Crane UK

Based

0.8% Market

Share

ProEight has Successfully Changed the Market Landscape

by Dominating Malaysia Oil & Gas Market

in Mechanical Seals Industry and Expanding Regionally.

High

Technology

9 Years Experience

93.2% Market

Share

Malaysia

Based

UNDERSTANDING

THE

BUSINESS

APPROACH

&

STRATEGY

RESEARCH &

DEVELOPMENT

(R&D)

CHAMPIONING

FAILURE

RESEARCH & DEVELOPMENT (R&D)

ProEight Sees Opportunities Differently

Pioneer of New Technologies

Analysis &

Reports Testing Facilities

Patented

Products

International

Certifications

RESEARCH & DEVELOPMENT (R&D)

Analysis &

Reports Testing Facilities

Patented

Products

Structural Stress Analysis (Static)

Structural Stress Analysis (Dynamic)

Computational Fluid Flow (CFD) Analysis

Thermal Analysis

Multisystem

Analysis

Analysis Report for Sarawak

SHELL Berhad

Failure Analysis for

ExxonMobil Berhad

Failure Analysis for

PETRONAS Fertilizer (Kedah)

Sdn Bhd

To date, ProEight has produced

more than 200 reports with no additional cost to

clients.

International

Certifications

RESEARCH & DEVELOPMENT (R&D)

Publication Number : WO 2012/050432 A2

AccuTest - Patented Method

Produce Correct Measurement in

Accordance to API QMS Q1

Certificate of In-House Design API Mechanical Seal Leak Tester by Lloyd’s Register

Analysis &

Reports Testing Facilities

Patented

Products

International

Certifications

RESEARCH & DEVELOPMENT (R&D)

Factual

Certificate From

Lloyd’s Register

Pressure Test

Certificate

Analysis &

Reports Testing Facilities

Patented

Products

International

Certifications

RESEARCH & DEVELOPMENT (R&D)

Ability to simulate actual condition

Destructive testing during dry running

Use for modification & improvement of seal

Endurance and durability

Analysis &

Reports Testing Facilities

Patented

Products

International

Certifications

RESEARCH & DEVELOPMENT (R&D)

Factual

Certificate From

Lloyd’s Register

Pressure Test

Certificate

Analysis &

Reports Testing Facilities

Patented

Products

International

Certifications

RESEARCH & DEVELOPMENT (R&D)

Performance Test

Hydro Static Test

Vibration Test

Functional Test

Pump Testing Facility

Pump Testing Facility

Pump Testing Control Hydro Static Test Equipment

Analysis &

Reports Testing Facilities

Patented

Products

International

Certifications

RESEARCH & DEVELOPMENT (R&D)

Factual

Certificate From

Lloyd’s Register

Pump Testing

Interface & Report

Analysis &

Reports Testing Facilities

Patented

Products

International

Certifications

RESEARCH & DEVELOPMENT (R&D)

Publication No: US 2012/0133100 A1

R.S.T.

Mechaflex

Other R.S.T. Series: • P838 • P868 • P878

• P888

Analysis &

Reports Testing Facilities

Patented

Products

International

Certifications

RESEARCH & DEVELOPMENT (R&D)

Analysis &

Reports Testing Facilities

Patented

Products

International

Certifications

Provision of Engineering Research &

Development (R&D) of Mechanical Seals

Provision of Engineering Design

Provision of Procurement

Provision of Manufacturing & Refurbishment of Mechanical Seals

ISO Certification

RESEARCH & DEVELOPMENT (R&D)

Analysis &

Reports Testing Facilities

Patented

Products

International

Certifications

Provision of

Engineering Design,

Manufacturing and

Refurbishment

Research &

Development of

Mechanical Seals and

Equipment

API Specification Q1 Certification

UNDERSTANDING

THE

BUSINESS

APPROACH

&

STRATEGY

RESEARCH &

DEVELOPMENT

(R&D)

CHAMPIONING

FAILURE

CHAMPIONING FAILURE – A CULTURE

Innovative & Motivated

Finding Solutions

Rewarded

ProEight’s Championing

Failure Program

Failure

Demoralised

No Solutions

Scolded

Conventional Way

Failure

CHAMPIONING FAILURE – FINDING SOLUTIONS

Evidence

Gathering

Root-Cause

Analysis Research Ideas

Finding

Solutions

System

Improvement

Staff Training

& Motivation

Product

Innovation

Improved

Manufacturing

Methods

Safety

Improvement

Engineering and

R&D

Enhancement

Implementation

& Monitoring

CHAMPIONING FAILURE – FINDING SOLUTIONS

Productivity

Customer

Satisfaction

Staff

Motivation

Reliability

Innovative

Manufacturing

Method

Company

Profit

Patented

Product

Company

Sales

FROM IMPOSSIBLE TO POSSIBLE

Going Global…

Adopting the Correct

Approach & Strategy