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Corrosion Inspection Management and Monitoring Program





Draft version









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Project summary
The purpose of this project is to create a framework and defining a product in relation to corrosion
inspection that uses the knowledge and technology that R2D has "in-house" in order to build a so
called sustainable business
Some important factors :

The implementation of the core business and competencies of the R2D scanning technology.

Creating a recurring revenue stream.

Real To Desk
hereafter called R2D
Moranga bvba
presented by Bart Vanclooster
hereafter called Moranga

Nijvelsebaan 17a
3060 Korbeek-Dijle
T : +32 (0)498 73 27 68
M :

In the short term, to bring a product on the market that is profitable for both parties.
On longer term, by the recurring nature of the product to build a sustainable business.
Additionally, to offer a range of additional services that strengthen even more the recurring
character and customer loyalty.

This document describes how such a product can be seen in all its facets with the corresponding
edge-services and -activities. It serves as a guide to bring the product on the market.
R2D will provide the practical implementation, as well as marketing, sales and invoicing services.
Moranga will follow-up the projects "behind the scenes". It will also suggest product
improvements, sales strategies, strategic decisions, ...
All assignments are sold/invoiced through R2D. Per assignment Moranga is granted to invoice an
agreed fee of 10% of the total project revenue and is considered as compensation for his services.

Once a consensus on this document, the product and the modalities exists, the implementation can
be started immediately. Target is to catch up a first assignment in Q4 of 2013.
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The product is described as to provide a service in which the periodic follow-up of piping systems,
with respect to corrosion, is optimized. This through mapping the entire piping system with the help
of scanning techniques, followed by identifying pipes with similar products . This knowledge
combined with the (pre-)defined corrosion mechanisms results in a series of points that periodically
must be inspected. Our product will optimize these inspections so that a cost effective monitoring
and execution becomes possible.

Why should a company do this?

Companies covered by the Seveso Directive are becoming more and more strictly monitored. For
those companies, the follow-up of corrosion and vibrations, is a responsibility imposed by the
government, and which are checked periodically, typically annually, during audits of the FPS ELSD
and LNE. This means that all Seveso companies must have a system by which they can demonstrate
that they meet these conditions.
Extract from SlT010 Process safety documentation :
Internal corrosion
44. Does the company has determined for each component to what extent it is the subject to
internal corrosion ?
45. Were both normal process conditions as the abnormal process conditions considered ?
46. Did the company determined the nature of the corrosion, the place where the corrosion
phenomena occur and an estimate of the corrosion rate ?
47. Were the parts that are subject to internal corrosion included in an inspection program
in function of the identified corrosion problems ?
Based on the knowledge of the conditions in a part and the used construction materials, one
can make a first prediction of the corrosion phenomena that can be expected and an estimate
of the corrosion rate .
This theoretical information should be complemented or corrected by the information that
has been obtained during the internal inspection of the part.
External corrosion
48. Does the company has determined for each component to what extent it is the subject to
external corrosion ?
49. Does one examined in particular the impact of possible isolation on the occurrence of
external corrosion ?
50. Does one examined whether there are circumstances that deviate from the normal

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atmospheric conditions ?
51. Were the parts that are subject to external corrosion included in an inspection program
in function of the identified corrosion problems ?
Insulation can be a major factor in the occurrence of external corrosion.
Seveso companies are not the only companies that are being followed herein. Another
example can be found in the guidelines of the U.S. Department of Labor, Occupational
Safety and Health Administration (OSHA). This Directive requires inspections and tests to
be conducted according to generally accepted engineering practices. Additionally these
inspections and tests should also documented .
Extract from OSHA 3132, page 19 :
OSHA believes it is important to maintain the mechanical integrity of critical process
equipment to ensure it is designed and installed correctly and operates properly. PSM
mechanical integrity requirements apply to the following equipment.

Pressure vessels and storage tanks

Piping systems (including piping components such as valves)

Relief and vent systems and devices

Emergency shut-down systems

Controls (including monitoring devices and sensors, alarms, and interlocks), and


The employer must establish and implement written procedures to maintain the ongoing
integrity of process equipment. Employees involved in maintaining the ongoing integrity of
process equipment must be trained in an overview of that process and its hazards and
trained in the procedures applicable to the employees job tasks.
Inspection and testing must be performed on process equipment, using procedures that
follow recognized and generally accepted good engineering practices. The frequency of
inspections and tests of process equipment must conform with manufacturers
recommendations and good engineering practices, or more frequently if determined to be
necessary by prior operating experience. Each inspection and test on process equipment
must be documented, identifying the date of the inspection or test, the name of the person
who performed the inspection or test, the serial number or other identifier of the equipment
on which the inspection or test was performed, a description of the inspection or test
performed, and the results of the inspection or test.

Why would a company do this?

In addition, every self-respecting company in the (petro-)chemical industry require such a system is
follow up on the state of the own process equipment. This for a variety of reasons, not the least of
guaranteeing the safety of the operators, workers and local residents.
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In addition, there are still plenty of reasons why a company would organize such monitoring:

Unambiguous and continuous monitoring of the status of the installation process.

By pro-actively identifying weaknesses, the reliability can be increased.

By pro-actively identifying, repairs can be scheduled so those can be carried out in a

minimum of time and at a minimal cost. There is no unscheduled overtime and unnecessary
long standstill during prefabrication work is avoided.

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In the basic version of the product, the theoretical corrosion study which the customer has available,
is translated into a concrete report which stated what, when, how and how often to inspect. The
customer must work and organize himself in order to realize the inspections.

Concrete implementation
Step 1: inventory of available information
When getting the assignment, the project starts with gathering all available information (define !!!)
from the client. This should include :

the theoretical corrosion study

Step 2: scanning
When getting the assignment the project starts by scanning the installation. It is important to make
clear agreements with the customer about where the battery limits of the project are located. In this
step, the know-how of R2D is used.

Step 3 : modelling
After scanning the images to be processed . Herein, it is very important to focus on the target of the
command . ln this model does not in detail development of each pipe, device, valve ... a very nice
performance can be achieved in 3D that can be used . than later for other purposes Objective in this
is to create a sort of 3D sketch lines, a sort of general ISO master of the whole installation. They are
namely those ISO's that are needed to identify the location of control. In this master ISO model
must also be shown the platforms as face.
Each additional modelling work can be useful for additional services but in this first basic version,
time and therefore money loss. It is also called the expertise of R2D.

Step 4 : Identification of inspection points

When the master ISO is ready, selections are made from product lines that match know corrosion
mechanisms. These selections must be displayable individually, so that this inspection points can be
identified. The identification of these points is something to which we give an initial proposal to the
customer This proposal shall be submitted for approval by the customer. We do not take the final
responsibility herein. A service can be provided in the form of consulting a corrosion expert who
assists herein.
After approval by the customer, the inspection points will be included in the model. Indicating of
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the inspection points must be done in such a way that they are clearly displayed in the specific ISO
but also are clearly visible in the overall model.

Step 4 : inspection intervals

This step can be started simultaneously with step 3. In this, input is requested from the customer
about the desired time between inspections. Depending on the product and the corrosion mechanism
herein can be varied. A proposal is made by Moranga, but the final decision lies with the customer.
Important is the fact that these frequencies are not fixed forever. In function of the measurements,
adjustments can be done, but a starting point need to be defined.
Important to know is - that it is the most interesting for the customer, when the inspection intervals
are multiples of each other so that inspections can be performed in discrete moments. If this is not
the case, this requires more guidance during several periods of the year.

Step 5 : Inspection points clustering

It is now time to merge the collected data from previous steps. The intention is to visualize the
inspection points with the same inspection interval/time in combination with the platforms, in order
to cluster jobs which can be carried out at the same time. Clustering becomes easy to define now,
since we physically can work top-to-bottom in the process of describing how each point must be
inspected, where free access is available and, where scaffolding must be provided. Whether or not
the pipe is insulated, is also included.
At this stage, any adjustments or changes in the points of inspection are possible but not desirable as
the items were identified on the basis of the most susceptible area of corrosion.

Step 6 : report
A basic implementation of the corrosion inspection program ends with handing over all information
to the customer in a summary report.
This report contains :

An Autocad model with centerline chart and walkways (master ISO).

The identical 3D model, supplemented with the visualisation of the inspection points

Overview List of all marked inspection points with:

A. accompanying unique identification number for each inspection point
B. the product name of the product in the pipeline
C. the inspection interval
D. whether it is freely accessible or if scaffolding is required
E. material of construction of the pipe
F. is the pipe insulated or not

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G. cluster number that identifies with which other points it should be inspected together.
All this in excel or pdf.

The individual ISO per product line with the points of inspection.

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It goes without saying that the above already provides an added value, but it is still rather limited.
Additionally, a whole range of additional services can be provided so that added value increases.

Job preparation
Here, the collected information as above, is further developed into a practical workable whole. This
means that the sequences are defined in detail as they have to be carried out . Typical items included
herein are placing scaffolding, stripping insulation, carrying out measurements/inspections ... If
scaffolding should be placed, and where relevant, modified or expanded later on, is also included
herein so that no ambiguity prevails for the scaffolding company. In addition, an estimation of the
required time for each step is included so that a good budgeting and scheduling becomes possible.
Delivered to the customer is a document, which describes in detail, the operation per cluster of
activity. At the request of the customer, it can also include information about neighbouring pipes.

Implementing in CMMS
Due to the large amount of data, an implementation in a Computerized Maintenance Management
System is almost indispensable. Therefore Moranga can supply the data to the customer into an in
advance agreed format. This ensures that the customer has all the data, at all time available in his
own system.

Practical implementation
In the above, everything was prepared so that an inspection / thickness measurement may be
executed. The next step in this is the actual implementation. Moranga can provide a service where
she coordinates all the necessary steps to perform, and for this cooperates with the "home-suppliers"
of the client. Naturally, this will then proceed according to the established procedures in previous
Before this service can be started, the customer need to agree to the proposed method by Moranga.
Also releasing the work area still belongs to the responsibility of the client.
Whenever, alongside thickness-measurements also visual inspections are requested or required, a
consultant can be provided.

Data collection and monitoring

A first step in monitoring is now put. It is case to repeat this effort, so also a monitoring in time is
possible. It must be emphasized that measurements should be carried out in the same place so
comparisons of data are possible.
If the customer chooses to have Moranga coordinate the inspections, an additional service can also
be offered in which the data is logged and analysed. Per inspection point it is then reported on the
inspections carried out, trending's are being made of the observed corrosion rates and proposed
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adjustments to the inspection interval.

With this service, the customer is relieved of a substantial part of the monitoring and monitoring
that requires many practical organization and follow-up. As a result the customer can focus more on
taskes that are more in line with his core business and yet realize a monitoring of the process
installation including taking decisions based on knowledge.

Extension to all static equipment

Besides pipes also all other static equipments can be included in the follow-up. For reactors and
other devices it will be based on drawings, supplied by the customer, when the equipment is not
visible, otherwise it can be modelled on the basis of the scan data. The further development follows
the same method as described above.

Expansion to rotating equipment

Rotating equipment has typical inspection methodologies other than static equipment. Also here
however, it should be prepared and procedures must be available so that measurements and
inspections are always carried out in the same manner . If so desired by the customer, support
hereby can be offered and this can be also included in the planning.

Keeping the system up to date

An installation is obviously not static. Frequently, adjustments are made in which production parts
are modified, or new systems are realized, through management of change systems. These are
things that should certainly not be overlooked and also ask the attention of the inspections. Baseline
measurements are of a very high value.
Moranga provides this as a service in which the model of the client installation periodically is
updated, based on the information transmitted by the customer either by re-scans and applying
comparison routines.
ln the first option it is typically the information available through the management of change
procedures. In the second case, the installation is scanned again and compared to a previous scan.
Deviations indicate that things have been changed. Those deviations can then be incorporated in the
model for which an updated inspection plan is prepared.
By periodically checking the installation (possibly bt re-scan), the customer is always sure that all
components are considered. Therefore, there are no pipes or devices that escape the eye of the

PlD creation and verification

From the above services an extension to establishing, maintaining and updating PID's is only a
small step. The scan data already provides all the information necessary, it is only to model few
extra things and display.
A service may be offered in which PID's are periodically updated based on information transmitted
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by the customer (MOC procedures) or combined via re-scans and comparison routines.

Layout drawings
Also, layout drawings are resulting from the model, similar to the PID's.

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full suite
ln this service a total package is offered to the customer, in which everything starts from a 3D
model that is created based on scan-data. Practically the offered services herein are as per following

Scanning the entire installation

Modelling the whole system in 3D

Drafting of PID's and layout-drawings based on the 3D model

Drafting ISO's per expected corrosion mechanism

Preparation of clusters with respect to inspections to be carried out

Developing in detail the procedures that define how inspections should be carried out

Coordinating and monitoring of the inspections and measurements

Reporting per pipe or device of the findings, corrosion rates and trends

Keeping up to date of the whole system : 3D model, PID's, isometrics ...

Regularly providing info for upload in the CMMS system of the customer

This is a comprehensive approach that aims at a long-term partnership with the customer.

Implementing new equipment, pipes

In case the customer decides to visualize its installation in a 3D model, new items can be
implemented during project phase, so that the arrangement of the devices can take place optimally.
ISO's can be designed based on the equipment arrangement. Newly designed pipes can be "clash
checked" against the existing 3D model. This hugly improves the possibility of a clash check free
installation. It also ensures an optimal pre-fabrication of pipe spools. This can drastically reduce
project cost, due to lower pre-fabrication cost vs on-site fabrication/welding. It also increase
drastically the possibility of - as per planning - finishing the project and installation start-up.
Reducing the down-time of the installation reduces total project cost.

Demolishing and removing equipment, pipes

Atex zone drawings

Atex zonings are determined based on the risks that require ATEX zoning. Rarely it is that this is an
entirely contiguous zone, although 'in the field ' it is often as is indicated because of the fact that this
is simpler. However, instruments that must be installed in ATEX zones need to comply with other
(and more expensive) specifications than those instruments which wear no zoning characteristics. In
this a clear documentation of where and which ATEX zone is applicable is very important. Moranga
can assist to document this in an unambiguous way.

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Risk analysis support

Because of the availability of a 3D model, the quality of the risk analysis for certain works can be
increased. Assumptions about pipeline routings and products in the area belong to the past because
it can be perfectly identified at any time, what, where is installed and what is the possible maximum
content of a system.

Supporting Shut-down preparation

Perfectly being able to indicate where a work is to be performed, increases the safety. Planning in
the time and 3D can prevent dangerous situations of simultaneously above or aside jobs. Men can
simulating a shut-down in a virtual model of the process plant, and only afterwards execute the
shut-down effectively.
Especially when some parts of the plant are still in-service, such risks should be avoided. Also here,
it can be clearly indicated where products are still present in the system.
Note that when you have a client that you can offer the 'full suite' you will often know better what
needs to be done during a shut-down then the client himself. This creates an incredible loyalty.

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Customer Benefits

Many companies offer corrosion studies and help the customer identify where corrosion can
occur. However, these remain in 95 % of the cases studies that form the basis for a
preventive maintenance program, but they are not detailed enough to be used as-is
immediately. The services of Moranga ensure that translation.

The services offered, are not part of the customer's core business, but however they have to
happen. in one way or another Through addressing these in a coordinated manner, this
provides time savings and a clear structure for the customer.

Often the documentation is incomplete, and so, much time is wasted searching for
information that is not existing. Rarely, for all pipes ISO's are available. Which either can
result in pipes being overlooked, either weaknesses are not identified (eg dead end
corrosion). Note : Having ISO's for all pipes is not a legal obligation.

While the customer can focus on things that can produce money for him, he can as well
always evaluate the status of the process installation in respect to corrosion with full

At first sight, having a 3D model of the plant, seems to difficult to maintaine. Through the
services of Moranga, that burden is removed at an agreed cost, while the customer can fully
benefit of having such a system. Obviously this is the cornerstone of the inspection
preparations and successions. Furthermore labor preparations can be executed more
efficiently, project realizations that can be prepared better, risk analyzes be performed in
more detail, turnaround schedules that can be simulate in a model ...

To do a full monitoring of the installations it soon takes some reliability engineers full-time
occupied. This service ensures that these people can focus on finding solutions to the real
problems instead of spending precious time on coordinating measurement campaigns.

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Pitfalls if the client does it himself

When the customer decides to take the lead himself, following situation is not inconceivable:

Corrosion loops are typically defined from a corrosion study. This means that the source
information is taken from PlD's in which circuits with similar corrosion mechanisms be
distinguished. These are not at the level of an ISO. The customer must search for the ISO's
to get the full picture. Suppose that about 60% of all piping has isometric drawings and
those can be found pretty fast. Nevertheless, this will still require a considerable amount of
time before one can be 1OO% certain of the documents found. Since not all documentation
is complete, there is still a lot field-checking left to do. This means another loss of time.

It is almost impossible to get a complete overview of the whole system by only consulting
recorded ISO's This results in imperfections, and this leads to inefficiencies in the
implementation: scaffolding should be adjusted, insulation should also be removed in other
places, the NDT specialist should come back, production people need to prepare extra work
permits ...

The customer may not have sufficient manpower to properly perform these tasks. It is often
an employee that should handle these tasks ad-hoc, several times a year. Infrequently
performing such tasks also decreases efficiency.

Reporting herein is very important as two consecutive measurements and inspections are far
apart in time. Often in such cases, the reporting remains unfinished, making it unclear what
was observed before. The supplied effort becomes entirely in vain.

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Time estimation : customer vs R2D

For a mid-size installation of about 200 pipes and 30 equipments we estimate the following
activities :


Identifying pipeline routings

5 weeks*

5 weeks*

Recording missing documentation

3 weeks

Identifying of inspection points

1 week

1 week

Creating work procedures

3 weeks

2 weeks

Necessary preparation time

12 weeks

8 weeks

Make appointments and coordinate work

6 weeks**

4 weeks

Processing the results and reporting

8 weeks

4 weeks

Necessary time execution and follow-up

14 weeks

8 weeks

Total time required

26 weeks

16 weeks

* 5 weeks full time employment means 200 hours of work. Translated, this means that we are
talking about 1 hour per pipeline route. This already is a very optimistic estimate.
** Due to the fact that a total overview is virtually infeasible, it is expected that delays occur in the
implementation of unforeseen additional work. Additionally, a good project price can be stipulated
with the scaffolding-, insulation- and measurement company when preparing smoothly.
This is the necessary time for the preparation and execution. The customer then still has no model
available that he can use, also for other things Also the model of Moranga is specific to the
inspections. A further modelling requires an extra 3 weeks or so.

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The sheer costs are difficult to estimate. It is mainly about man hours, extra work due to insulation
and scaffolding, additional movements for NDT technicians and time losses for production people
in releasing the area . These costs are all case and contract specific.
Generally it can be put on the following reasoning. On the basis of the (optimistic) estimate of the
time required in order to establish a system, we notice that a reliability engineer allows 26 working
weeks of his time working . Starting from 44 working weeks, this means 60 % of his time in an
entire working year . The total cost for a permanent reliability engineer as employee can be
estimated at 120k. This sets a reference point for the total cost that can be considered, this should
be somewhere around 72k .
A first proposal may be to offer the Basic version for a cost of 50k. Herein the scanning + basic
model, defining clusters + reporting in tabular form. Estimated time for this is 8 weeks.
For additional services the following can be a first step :

Job preparation
Start from the estimated number of inspection points. For example 200 points with 4 points per
cluster, which means 50 clusters. 50 graphical preparations at a rate of 1 per day at 55euro/hour,
resulting in 22k.

Documentation in CMMS
Providing the documentation in a desired customer format can be again in function of the number of
inspection points. For example, 200 points at 0.5 hours per point, resulting in 5.5k. This item can
be used to offer a commercial discount.

Organizing execution
By the hour at a rate of 55/hour.

Data collecting + monitoring

This may be calculated as a price per inspection point . ln the example, 200 points at a rate of 2
hours per point, means 22k . This is a recurring income that comes back periodically when we
manage to sell the product as a whole.

Static equipment
Should be reviewed in realtion with available documentation level. ln function thereof a price may
be offered. Generally one can assume 1 day per equipment.

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Keeping the system Up to date

This again is a service that can mean recurring business. By responding quick and to the point
Moranga can become a solid partner. Activities in this that return are:
Drafting service : offered at an hourly rate.
.Re-scanning for big adjustments: to adapt according to the number of scanning days.
Comparison Routines : run the scan data vs model: depending on the scope.

PlD creation from the model

May requires additional modelling / additional scanning to achieve. Pricing on request by R2D.

Layout drawings
Lump sum per layout drawing.

A first basic version + preparation of detailed documents and providing the documentation ready for
upload in CMMS, will cost approximately 77,5k.
Monitoring and processing inclusive, cost of approximately 99,5k + hours for attendance on-site.
Sales argument : a commercial gesture may be made with regard to the additional scanning work in
order to make the model, but the modeling itself will be charged.
At 3 weeks additional modeling this means 84,1k.
For this, one has a complete model and clustered job preparations to perform the periodic

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Together we can realize the above described application and commercialization of the product.
It is important that the agreed conditions between the 3 sides are independent of the place where it
is implemented.
As discussed and above noted, the marketing and billing is realized through Moranga in which 10%
of the total project revenue is considered as compensation and remains with Moranga. R2D is the
single (preferred) partner who is committed to the implementation.
One exception. When certain pre-existing customers of R2D, would like to order our services and
prefer to keep being invoices through R2D. The amount of compensation (as per above mentioned)
will be deposited to Moranga.
When customers can be found through the Chinese branch of R2D, the same conditions apply as
described above.

Roles and responsibilities

Responsibility for product description and definition lies with Bart Vanclooster. Bart will also
monitor the projects behind the scenes in an advisory role.
Steven Couwels is responsible for the commercial part of the project. This means that Steven's job
is to prospect, to inform customers and make bids, sell product, make schedules.
Johan Keyser is responsible for the technical development of the services. This ranges from
processing of the scan data, the making of the reports for the customer, communicate internally
about the progress ...
All three together are responsible for identifying and developing improvements.
Together we must also create a (simple) system to automate the reporting. This can perfectly in
Excel but all options are possible therein.

Target customers
The target to sell this product to, is generally any Seveso company in Europe.
Obviously because these companies are required to monitor their process installation, and to do this
in a demonstrable way.
Specificly, can be started with the small and medium sized Seveso companies in Flanders. After
wchich can be (fast) extended in respect to the processing power.
Neither Europe nor being a Seveso company must form a barrier to the application. ldeally would
be found a number of companies, who are active on several siteswhich all (or almost all) have to
comply to the same obligations.
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The process industry in general, is a target customer for this application.,Although there must
always be some form of corrosion be present. In this case, there is no point to approach the

This is a product that requires some explanation to convey to the customer. Events and general
forums can help, but the traditional prospecting and personal approach of individuals seems more
preferred. As a start, originating from a list of Seveso companies in Flanders / Belgium, a list can be
substracted of technical managers, maintenance managers and project managers for those
Linkedin can offer a great support. The personal approach and contacting these people should open
doors to an explanation of the product and a first step towards sales.
A professional looking website is to ensure that possible customers know very good, at first
glance,what we can, what the added value is and how we work. It should also be ensured that the
website is at the top in a google search assignment.
A brochure need to be created, describing and briefly explaining the various facets of the product.
This can be very similar to the information on the website.

Explore possible cooperation

It seems interesting to approach some companies that today already sell corrosion studies, naturally
after website and brochures are ready. This can involve that, when customers ask for support in the
practical implementation, they can be referred to Moranga.
This however involves a great risk. They may copy the concept on short-term or just ask a scanning
service. This implies that they manage all the data yhemselves and customer loyalty is with them
and not directly with Moranga.
Also a similar number of companies engaged in inspection and corrosion mechanisms seems
interesting. They can then be used as an external consultant when the customer request for it.

Other products
This is the first product that has many facets. If this product can be successful implemented, new
applications can be developed under the same or new negotiated conditions.

Following next logical steps need to be incorporated :

Agreement on the concept and the product defined.

Additional preparations regarding double check pricing, make website, create brochure.

Approaching customers.

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Starting company.

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Besides all the above listed reasons R2D provides a service that stops where the most
corrosion studies end, namely in the practical implementation.

R2D has the expertise to deliver a good product based on laser scan data.

There are virtually no competitors in the market offering similar services.

R2D can work with a low cost base so that the pricing can be competitive.


On time delivery of the contracted services.

Limited or no in-house expertise with respect to corrosion.


Because there is an increased focus of the government in managing corrosion, there is is a

growing market to commercialize these products.

Good product to sell a complete scan of an installation.

It can be the start of a recurring business.

The scanning and especially the modelling remains a time-consuming and therefore expensive way
to obtain and organize the data. It may seem that pricing is too high for the created added value.

Continued PROJECT PLAN CIMMP, revision A1

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