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Innovation Nation Episode 5 Innovation In Commitment The Pay Once Promise

Are you tired of dealing with costly leaks that drain your resources and hamper your operations? Look no further! In this eye-opening video, we unveil our game-changing ‘Pay Once Promise’ that will revolutionize your approach to leak prevention and repair.

Join us as we delve into five key areas where our ‘Pay Once Promise’ takes effect, delivering unmatched results. From bolting leak prevention to total flange management, valve leak prevention to on-stream leak repair, we’ve got you covered with our cutting-edge solutions. Witness firsthand how we eliminate leaks and keep your systems running flawlessly.

Welcome back to Innovation Nation, everyone. Thank you for joining and watching the episodes of our video cast. Today at Innovation Nation, we’re going to be talking about innovation in commitment. How do you combine different things to up your game in terms of making a commitment to your clients? A commitment to outcomes, a commitment to standing for what you believe in? My friend Patrick Jen Temple wrote a book called “Your Stand is Your Brand,” and innovation and commitment is what we stand for. For you, if you’re in a different business, what’s your innovation and commitment to your customers? What is the promise that you make? What is the way that you are reducing their risk? Why is the way that you are reversing the risk and making it easier for them to do business with you? Well, that’s what innovation and commitment are all about. It’s about making it easier for your customers to work with you. It’s about making it easier for our customers to work with us by reducing the risk and ensuring that they understand what is fully involved when they are making a decision. So one of the things that we believe culturally in our company is that the most valued people here are the people who keep their commitments. If we’re going to do that culturally, then we’ve got to do it for our customers. And so it’s really important that if you say what you’re going to do, do what you say, and prove it. Simple, basic handshake business. Say what you’re going to do, do what you say, and stand by it. That’s our innovation. So one of the ways that we want to help our industrial clients reach zero injuries is by being their partner in building a leak-free workplace, whether you are an industrial facility or a major industrial general contractor. One of the ways that we’re going to help reduce injuries is by helping you eliminate leaks inside of your facility. That is one of the parts of our mission. There are many other parts to reaching zero. But reaching zero has to be, in an industrial facility, about eliminating leaks because many safety hazards are created from gas to fires to slips, trips. We all know that leaks, particularly in the north, create many different environmental issues relative to it being a safe place to work. So eliminating leaks is key to why we exist. And so our innovation and commitment is something that we call the “Innovator Pay Once Promise,” it’s our leak-free commitment, what we stand for. So what does that mean? Well, we’re talking about preventing leaks and we’re talking about repairing leaks. So two very different sides of the coin. How do you stop them and how do you fix them? Well, anyone who is trying to prevent leaks and anyone who is needing leaks repaired or even mitigated to prevent them from breaking through the pipe wall or the vessel wall, what do you need solved there? I want you to think about this for a minute and understand the sensible nature of what I’m trying to say. When someone calls you or calls us for leak prevention or for leak repair, they’re not looking for someone to work on their leaks. They’re looking for someone to prevent and repair the leaks to give them results. I know that might sound silly, but what do you need solved as a client who is trying to prevent leaks? What are you trying to probably try to prevent leaks? Well, it could be bolting, it could be heat exchanger repairs, it could be composite repairs. You’re trying to prevent the leak, you’re trying to make sure that the pressure boundary does not get compromised. And if the pressure boundary is compromised, you don’t want us to try and fix it. You want us to fix it. You want us to regain and maintain pressure boundaries to keep the bad stuff inside the pipes to get results. And so that is what we believe in. We think that for you and it should be for us. And if we’re going to have innovation and commitment, then it needs to be focused on results matter. Results matter. That means we have to make a commitment to results, leak prevention, and leak repair, not leak bignets, not leak time and materials, not leak time and effort. Fix it right. When we surveyed all of our clients, they said the same thing in 2016 and in 2019. We surveyed all of our clients and more than 90% of them agreed that they would find it valuable and it would influence their decision if when they hired a leak repair or leak prevention contractor, if leak repair services were free as a result, meaning if we come to fix it and it leaks, we’re going to reinject it for free. We’re not going to charge you to keep coming back. If we do a leak prevention service and it leaks, we should have some skin in the game. I agree with that. Our clients clearly agree with that. And they’ve agreed with it so much that they allowed us to use their names. But there’s more to the story about leaks and leak prevention than everyone agreeing that free stuff is good. All of the people we asked agreed that they would find it valuable and would influence how they select leak repair services. If reinjection services were free of charge, should a leak reoccur. But that’s not surprising, right? Who doesn’t want free stuff? We agree that we should have skin in the game, that we are there to prevent leaks and to repair leaks. And everyone we talked to agreed as well. But yet, we’re not always doing that. As an industry, as a matter of fact, there were deep insights and interesting findings when we asked people what this cost. Well, there are two really important insights that the industry shared with us in 2016 and in 2019. Now in 2016, 53% of everyone surveyed said that at least one in four times, 25% of the time, they’re having to get a flange sealed or a flange reinjected. Now by 2019, that was 67%. But in 2019, compared to 2016, the perception of the cost of that has gone up. And it really depended on who and what role people were, not surprisingly, Human Resources, pretty far away from the coordinating of leak repair and reinjection. They felt that a reinjection cost was on average $20,000. Now, I suppose if it’s a large heat exchanger and there’s an awful lot of people and an awful lot of sealant involved, that would be the case. But on average, that’s not really what it will cost. Now what we were surprised about is that frontline personnel, people who are in the field, coordinators, superintendents, engineering, really underestimate at what cost they’re trying to coordinate getting it done, and they’re not necessarily as focused on what is on the invoice.

Or what was consistent in 2016 and in 2019, our P&L managers and purchasing and contracts procurement. They were consistent in how they felt about the cost of leak repair reinjections, and that cost was $5,500. Now I want you to think about this for a moment. If 25% of the time you’re having to spend $5,500, that means that every single leak repair job costs around $1,200 to $1,300 more than you think it does. Now, when we looked at all the leak repair jobs that we did in 2019, several hundred, the average cost for that first project was around $11,000 to $12,000. That means that every single job, when you take into account reinjection costs, is at least 10% to 15% more than what you perceive it to be. But on that one job, when you have that reinjection, that one job, if it’s $5,500, and the average leak repair job is $11,000, that means that when you get a leak, something that you’ve already asked to be repaired, that the one-time reinjection cost means that that project was 50% more money than what you thought. 50% more. So there are some numbers to think about there in terms of the level of commitment and the way that we make decisions around value creation. Let’s dive into the meat and potatoes and the details of this a little bit more on how this is applied for you. What is its value? And what do you get with the commitment that we make? So there are five areas that we apply the Pay Once Promise: bolting leak prevention, which we call Total Flange Management; heat exchanger leak prevention, which is another version of Total Flange Management; valve leak prevention; valve packing services; on-stream leak repair with engineered repairs; and on-stream leak repair with what we call out-of-the-truck repairs. Let’s dive into the details of each of these a little bit more. Bolting, bolting leak prevention, Total Flange Management. Total Flange Management is more than just tightening or loosening the nuts. It’s a process of going through and defining specifications, inspecting, and actually performing the work in a systematic way. In the same way that you would manage the ITP, the hydro testing process, or welding process, bolting is more than tightening or loosening the nuts. So our Total Flange Management process is just that. It’s a five-step process that is followed and implemented by our key personnel. The first step is defining the project specifications to make sure that they are in accordance with Innovator standards and the standards of ASTM EPC-1. Now, they can exceed our standards and ASTM E standards. And if you have a higher standard, that’s great. But they cannot be less than our standard or that of ASTM EPC-1. Flange assembly training by Innovator. Our teams come in and train all of your crews on the appropriate way to assemble and align all flanges in the program according to the specifications. So this is a training system to get everyone fresh on the processes, the inspections, and the checkpoints of what has to happen in proper assembling. Flange inspection. We are training and supervising all of the flange inspection. And when we’re not present, we require that there are photographs taken of the gasket surfaces so that we can ensure that there are no deviations, scratches, and imperfections that are outside of acceptable tolerances. Then we assemble all of the repairs in the custom materials that are non-standard and are performed by our team. Flange facing or custom-designed bolting or gasket materials that are not part of the standard specification, we execute according to the specification with trained personnel. All the flanges are tagged, sealed, and tracked using Innovator’s Flange Management Software System. This includes all of the inspection reporting documents. What’s our commitment when we do Innovator’s Total Flange Management? Well, number one, we have a 100% leak-free startup commitment of all of our components. But in addition to that, we give you a three-month leak-free period, which is extendable for any number of months depending on your needs. You just need to talk to our sales and operations team about what’s required to extend those periods of the program. What will Innovator provide while we’re under that commitment period? Well, number one, it’s free hot bolting services. We will come in and we will follow your and our approved hot bolt-up processes to deal with anything that leaks. We will then apply out-of-the-truck leak repair services such as drill and tap, wire and pain, injection rings, injection. That’s all the leak repair materials and people that are required to deal with the leak. And if it comes to it, we will also provide off-the-shelf standard containment devices that are registered. So those are the sequences of the levels of the way that we stand by our leak-free commitment. Heat exchangers, heat exchangers are probably one of the biggest problems for our clients. They have the biggest consequences of leaks. They can cause fires, they can cause injuries. And we all know that it is very expensive to do leak repair on a leaking heat exchanger. And so our message is that an ounce of prevention is worth a pound of cure. But if the pound of cure is needed after that ounce of prevention, we’re going to put skin in the game. What do we do inside of our heat exchanger? Total Flange Management process? Well, it’s the same five-step process that we talked about in our bolting process. We’re still defining or setting a bolting specification. But in this case, we’re designing and calculating the bolting specifications and we are designing the ideal gasket and other bolting materials by our engineering team custom for that heat exchanger. Flange assembly training is supervised by Innovator, but this time, flange inspection is performed by Innovator. And we’re using our laser flange inspection system to look for all deviations, all flatness checks on all components. This is far faster and far more accurate than doing it manually. We perform any repairs, we execute the building process, and we provide all of the custom materials. And we do this project lump sum. This is not a time-and-materials project. We do heat exchanger total flange management as a lump sum project. All flanges are tagged, sealed, and tracked using Innovator’s Flange Management System, including all inspection reporting documents. When we do that, we guarantee you 100% startup on all of our components. It’s a three-month leak-free period that, again, is extendable. Innovator provides hot bolting services, out-of-the-truck leak repair services. And if we can’t get the leak under control with those first two methods, we will provide engineered leak containment device services at direct costs with zero profit and zero overhead and total transparency on the exact cost of that engineered LCD. I can tell you that all leak repair companies make a lot of money on engineering LCD. And so you’re likely getting an engineered leak repair service for less than half of what it would cost anybody else. And so that’s the level of commitment that we’re making to stand by our work and put skin in the game in heat exchanger leak prevention. Now, packings. Packings are often the first thing to go in valves. Bulk packing is often warranted for three years, and die-formed packing, many manufacturers will warranty the packing for five years. And yet you don’t get a five-year warranty on the installation. Well, what if it’s installed wrong? What if the wrong materials are installed? What if you don’t install enough rings? All of these things happen. And so in this program, we are managing the valve packing program for you. Join us now for Major Joint Maintenance Cycle, where packing can be removed and installed. What does our valve leak prevention service, valve packing service, look like? Again, it’s a five-step process. Innovator and the client collaborate in the planning stages to define the packing specification. All packing is extracted using high-pressure packing blasters and picks by Innovator personnel. And when we’re extracting that packing, we’re also cleaning and inspecting all the valve stems and stuffing boxes and passing them as acceptable. We are alive-loading the packing followers if they are necessary due to cyclic load or problematic leaks. And all packing is installed by Innovator personnel. When we do those things, we give you a 100% leak-free startup commitment. We give you a one-year leak-free period from the time it was installed. And that’s extendable for up to three years. Innovator will provide packing follower adjustments, and we will provide free, no-charge drill and tap and packing injection leak repair services for the entire leak-free period, whether that’s one year, two years, or three years. We will be responsible for all packing adjustments if there’s a leak, and we will be responsible for all leak repair of the stuffing box during that entire period. On-stream leak repair services with engineered repairs. We’re talking about enclosures, engineered and registered enclosures. And we’re also now talking about fully engineered composite pipe reinforcement systems that are approved in Alberta by the pressure authority. In those cases, leak repair services are performed by both our technicians and engineers who work in unison to design and install pressure authority-custom-designed and approved enclosures and composite systems. In these cases, the engineering closure or stalking closure is designed and registered with the pressure authority. Our Innovator engineering team specifies the materials, the injection pressure, the fill volumes with depression ratios, and the approved injection procedure. The system remains during the repair period under the declared system pressure and temperature during the expected leak-free performance period. Any cycle temperature and pressure in water hammer conditions are declared in the design phase so that they can be evaluated to make sure that a leak-free job can be achieved. And if we move forward, which we almost always do with the right planning and the right engineering, then the project is signed off 24 hours after it’s completed, and the repair location is tagged with an Innovator leak repair completion tag, and an Innovator Pay Once Promise number is assigned to you, and a certificate is issued for that component and for the period in question. If it leaks, we give you a one-year leak-free period on all engineered repairs, and Innovator will provide at no charge for the entire year leak repair reinjection services, including the labor, travel, and all the materials. If it leaks, we come back, and we own it for that period. And that commitment is extendable for up to three years depending on your audit cycle and the needs of your particular facility. What about out-of-the-truck repairs? What are they? Well, out-of-the-truck repairs are still registered. All the injectors and cabinets and all the things we use are already designed and registered. But they are leak repair materials that are on our service trucks. And using these materials rather than an engineered leak containment device, we’re using methods like drill and tap, wire wrap, rod and peen repairs to use materials to reestablish pressure boundary on flanges, on valves, on packing, on heat exchangers using out-of-the-truck repairs. Out-of-the-truck repairs involve understanding the cyclic nature that we talked about in our engineering repairs so that we can select the right materials. The system remains under the design temperature and pressure, the declared temperature and pressure that’s expected for the period. The project is signed off 24 hours after the work was done to allow for curing. We tag it, we assign an Innovator Pay Once Promise number, and we give you a one-month leak-free period on out-of-the-truck repairs, where you get no-charge leak repair reinjections. And again, that one month is extendable. You just need to talk to our sales and operations team to figure out the details on if you need and what period you need to extend that out-of-the-truck repair and have it covered under our Pay Once Promise commitment to you for us following that leak. Speak to your Innovator operations and sales team about the conditions and the limitations and how you can extend and how it applies. The big thing again with our commitment is collaboration. Talk to us, understand it, understand what we’re standing for, understand what you need to do. And what you will find is that our brand is about what we take a stand for, and we stand for a leak-free commitment. A leak-free commitment is our promise to have a long-term relationship with our clients. It’s our promise to have more skin in the game. It’s our promise that we are your partner in building a leak-free workplace together. Next time on Innovation Nation, we’re going to be talking about innovation in cost and cost attribution. And we’re going to be diving deep into the real cost of hot work. Till next time, folks, thanks for joining me with Innovation Nation, and we’ll talk soon.

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