Project Completion Report

1. Project Completion Report

2. Project Summary Client: MTU Detroit Diesel Australia Contract No.: 1161873

3. Project Overview • The generator package formed part of the CSBP initiated NAAN3 project which aimed to increase production in their Kwinana facility. • Aerison’s scope of supply included the following main components……… • Painted skid base with integral double skinned fuel tank (3500L) • Stainless steel acoustic enclosure • Inlet and outlet ventilation system • Removable roof • Roof mounted muffler • Fitting of free issue generator set and radiator to skid base • Full mechanical assembly of acoustic enclosure package

4. Project Overview • Parties Involved • Primary Stakeholder: CSBP • EPCM: MTU Detroit Diesel Australia • Supply Contractor: Aerison • Aerison’s Scope • Design, fabricate, assemble & transport to site…… • One off acoustic diesel generator package with integrated fuel tank

5. Project Overview

6. Design

7. Design • Aerison • Similar to units previously supplied • Double skinned tank changed in regards to previous designs to • incorporate double skin at sides also • Stainless steel panels • Removable roof • Semrad fuel control system

8. Fabrication – In House • Base frame and tank • Structural frame work • Inlet ventilation system • Outlet ventilation system Base Frame

9. Fabrication – In House Structural Framework Inlet / Outlet Ventilation System

10. Fabrication – Sub Contractor • Stainless steel panels Cohesive • Stainless steel doors Cohesive • Flashing Cohesive • Muffler Universal • Weather louvreBradflow • Surface treatment RPC

11. Fabrication – Sub Contractor Insulation Fit Out Complete Panels Door Trial Assembly

12. Fabrication – Sub Contractor Muffler Elbow & Weather Cowl Weather Louvre

13. Project Pictures-Complete Assembly Outlet End Inlet End Fuel Connections Exhaust Duct & Blankets

14. Project Pictures-Complete Assembly Fuel Interface Genset Installation Genset Removable Roof

15. Project Pictures-Complete Assembly CSBP Generator Package

16. Project Summary Safety and Environment • Target – Nil Incident Actual – Nil Incident • Comments • Safety and environment record for project excellent • No reported incidents from sub contractors

17. Project Summary Scope of Works • Target - Original Contract Scope of Works Total Number of SCN’s 4 • Total Approved 3 • Comments • Project completed on time • $10,260 in variations

18. Project Summary Schedule

19. Project Summary Schedule • Original Contract Delivery 31/01/2013 Actual Practical Completion – March 2013 • (Contractual obligations fulfilled – Extension due to external client issues) • Comments • Schedule extremely tight from the beginning • A lot of initiative and assisting of client required to keep the project on track

20. Project Summary Budget and Margin

21. Project Summary Budget and Margin • Original Contract Sum $189,200 Expected Final $199,460 • Original Contract Margin $37,925 (20%) Expected Final $15,698 (8%) • Comments • Over budget items were:- • Drafting (-$11,408) • Management (-$20,017) • Fabrication Labour (-$7,315) • Assembly Labour • Under budget items were:- • Materials ($1,700) • Panels and Doors ($8,156) • Variations

22. Project Summary Quality • Target – Nil Quality Issues or NCR’s Actual – Nil • Comments • Internal fabrication checks • Sub contractor quality review documentation • Sub contractor external expections

23. Issues Budget • Comments • Drafting • - Significantly underestimated (~$9,000 estimated / ~$20,000 used) • Workshop hours • - Underestimated in regards to ventilation inlet/outlet system • - 370 hours used in total (290 allocated to work shop – Additional 80 hours • allocated due to shortfall with inlet/outlet ventilation system) • Assembly hours • - 140 hours estimated • - 80 additional hours used • ~ 45 hours covered by variation • ~ 10 hours caused by direct work shop error • Management and Engineering • - Significantly underestimated (~$18,000 estimated / ~$38,000 used)

24. Issues General • Subcontractors • - Subcontractors internal quality inspections poor • - Subcontractors external quality inspections not adequate • Drafting • - Missing detail led to additional work and time expended • Engineering • - Lack of consideration for a few assembly items (grid mesh / silencer • connection to radiator) • - Bolt take offs not efficient or correct • Management • - Greater control needed to be taken of design process at an earlier stage • - Due to the lack of document control and an organised process on the clients • side a lot of gentle persuasion and recording required to maintain forward • momentum of project while maintaining contractual obligations and cover.

25. Project Summary Human Resources • Comments • Expeditor – Good • - Expediting very good where required • QA – Internal Good / External Poor • - All internal issues identified and rectified in at work shop stage • - Muffler quality and panel quality documentation poor • Engineering – Good (Needs to flow more from the start) • Document Control – Restricted due to no client document control • Safety – Excellent • Management – Good • - Management was required to be very tight due to lack of budget in critical • areas

26. Project Summary Communications • Comments • Internal • Sub contractor • Client

27. Project Summary Client Satisfaction • Client and CSBP happy to date with final product – Commissioning and noise test yet to take place

28. Project Summary Lesson Learnt • Transport • Quality • Contract management • At source inspections

29. Project Summary Project Completion • Unfinished Business • Comments • Thank You Letter • Bank Guarantees • Future Business or Related Projects • Aerison Procedures