Welcome!today’s presentation will start at the top of the hour!       www.real-time-answers.com/refinery/
Reducing Material Losses with Better           Yield Accounting                                      Stuart Parker, Consul...
Agenda• Today’s Challenge• Introduction to Yield Accounting• New Offering Objectives• Yield Accounting Solution Environmen...
Today’s Challenge: The Strategy-to-    Execution Gap                                                             UPPER MGM...
Today’s Challenge: The Strategy-to-    Execution Gap                                                                      ...
Today’s Challenge: The Strategy-to-    Execution Gap                                                 Financial Metrics and...
Today’s Challenge: The Strategy-to-    Execution Gap                                                 Financial Metrics and...
Today’s Challenge: The Strategy-to-    Execution Gap                                                  Financial Metrics an...
Where Yield/Production Accounting Lives                                    Synchronization          Business              ...
Where Yield/Production Accounting Lives                                                       Synchronization             ...
The Case for Integrated Yield Accounting  • Business Functions Supported      – Financial and Process KPIs      – Decision...
Yield Accounting Integration with Offsites                    Process Unit DVR                (Data Validation and Reconci...
Yield Accounting Integration with Offsites                 Integration
Yield Accounting Integration with Offsites            Plant wide Reconciliation
ErrorSolverModels
ErrorSolverModels
ErrorSolver              Details and Drilldown
ErrorSolver              Analysis
Quick Visibility and DrilldownHover for Process and Stream Details
Logical ModelsSlide 20
Logical ModelsSlide 21
Smart Objects and ConstraintsSlide 22
Interface CapabilitiesSlide 23
Interface CapabilitiesSlide 24
Interface CapabilitiesSlide 25
Tank Inventory System (TIS)• Uniform approach to managing gauging  systems (Varec, Saab, L&J, Enraf, …)• Strapping table d...
Order Movement Management System (OMM)• Management, real-time monitoring & reporting  for all orders/movements.• Handles a...
Offsites Value in Yield Accounting                 • Streamline inventory & movement                   management         ...
Case Studies
Case Study - Upgrade                                          LG Chemicals                                                ...
LG Chemicals                  Loss                 Control                              Energy              ErrorSolver   ...
LG Chemical Scope Case Study      DR Detail ModelNCC,BPA Overall DRModelsNCC, BPA Detail ProcessDR ModelsSummary DR Models...
Upgrade Case Study                                                      Yeochun NCC                                       ...
Conclusion
ErrorSolver InstallationsList of ErrorSolver customer implementations and upgrades from other products:   SK Energy Refine...
Invensys’ Yield Accounting Key DifferentiatorsSuperior Functionality and Greater Reliability    Gross Error detection and ...
With Our Solution, Our Customers…  Take less time to Reconcile  Save implementation costs  Report Daily, Monthly reconcili...
Value Drivers for Yield Accounting    • Reduced Unaccounted losses    • More consistent, reliable data for cost, yield, an...
Thank You
For a Product Demonstration or more information,                please contact:          John Hernandez john.hernandez@inv...
Register at: www.real-time-answers.com/refinery/
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Reducing material losses with better yield accounting

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Refiners worldwide are under increased pricing pressure, and continually seek solutions to enhance performance and bottom-line profitability. Reducing material losses is a key area that should be targeted early on in any optimization initiative because of its tremendous potential to improve profitability. As you well know, found material assets accrue directly to your bottom line – and the results can be dramatic. Our research indicates that a typical refinery can see benefits of $4.1 million per year with a more accurate accounting of material.

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Reducing material losses with better yield accounting

  1. 1. Welcome!today’s presentation will start at the top of the hour! www.real-time-answers.com/refinery/
  2. 2. Reducing Material Losses with Better Yield Accounting Stuart Parker, Consulting Director John Hernandez, Senior Managing Consultant© 2010 Invensys. All Rights Reserved. The names, logos, and taglines identifying the products and services of Invensys are proprietary marks of Invensys or its subsidiaries. All thirdparty trademarks and service marks are the proprietary marks of their respective owners.
  3. 3. Agenda• Today’s Challenge• Introduction to Yield Accounting• New Offering Objectives• Yield Accounting Solution Environment• Offsites Integration• Case Studies• Conclusion
  4. 4. Today’s Challenge: The Strategy-to- Execution Gap UPPER MGMT • EBITDA • Gross Refining Margin • Solomon Ranking MIDDLE MGMT • Throughput • Actual vs. Budget • Solomon Indices • Energy Costs OPERATOR • Temperature • Reflux Flow • Catalyst Circ. Rate Quarterly … Monthly … Daily … Hourly … Real-TimeSlide 4
  5. 5. Today’s Challenge: The Strategy-to- Execution Gap UPPER MGMT Management is looking at • EBITDA what happened in the past. • Gross Refining Margin Lagging Indicators • Solomon Ranking MIDDLE MGMT • Throughput • Actual vs. Budget • Solomon Indices • Energy Costs Those on the front-lines are seeing what is happening now. OPERATOR Leading Indicators • Temperature • Reflux Flow • Catalyst Circ. Rate Quarterly … Monthly … Daily … Hourly … Real-TimeSlide 5
  6. 6. Today’s Challenge: The Strategy-to- Execution Gap Financial Metrics and Operation Metrics UPPER MGMT Management is looking at 2 Different Languages • EBITDA what happened in the past. • Gross Refining Margin 2 Different Timeframes Lagging Indicators • Solomon Ranking MANY WORLDS APART! MIDDLE MGMT • Throughput • Actual vs. Budget Information as it flows through the organization • Solomon Indices • Energy Costs Those on the front-lines are Distortions seeing what is happening Delays now. OPERATOR Decision Rights • Temperature Leading Indicators • Reflux Flow MANY INTERPRETATIONS • Catalyst Circ. Rate Quarterly … Monthly … Daily … Hourly … Real-TimeSlide 6
  7. 7. Today’s Challenge: The Strategy-to- Execution Gap Financial Metrics and Operation Metrics UPPER MGMT Management is looking at 2 Different Languages • EBITDA what happened in the past. • Gross Refining Margin 2 Different Timeframes Lagging Indicators Decreasing • Solomon Ranking level of MANY WORLDS APART! MIDDLE MGMT empowerment • Throughput down the • Actual vs. Budget the organization command chain Information as it flows through • Solomon Indices • Energy Costs Those on the front-lines are Distortions seeing what is happening Delays now. OPERATOR Decision Rights • Temperature Leading Indicators • Reflux Flow MANY INTERPRETATIONS • Catalyst Circ. Rate Quarterly … Monthly … Daily … Hourly … Real-TimeSlide 7
  8. 8. Today’s Challenge: The Strategy-to- Execution Gap Financial Metrics and Operation Metrics UPPER MGMT Management is looking at 2 Different Languages • EBITDA what happened in the past. • Gross Refining Margin 2 Different Timeframes Lagging Indicators more …is Decreasing • Solomon Ranking than just a level of MANY WORLDS APART! technology MIDDLE MGMT empowerment • Throughput integration down the • Actual vs. Budget Information as it flows through challenge! the organization command chain • Solomon Indices • Energy Costs Those on the front-lines are Distortions seeing what is happening Delays now. OPERATOR Decision Rights • Temperature Leading Indicators • Reflux Flow MANY INTERPRETATIONS • Catalyst Circ. Rate Quarterly … Monthly … Daily … Hourly … Real-TimeSlide 8
  9. 9. Where Yield/Production Accounting Lives Synchronization Business Performance Management Business/Yearly Business Results Plan Plan vs. Actual Results Goals Monthly Production Performance Management Production Accounting Quarterly/Monthly Backcasting Plan Plan vs. Actual Reconciled Performance Management Goals and Targets Performance Logistics Daily Accounting Schedule Sched vs. Actual Reconciled Performance Limits & Boundaries Hourly Balance Operations Operations Operations Monitoring Management VALUE Process Control & Integration Optimization weeks ago days ago hours ago now hours ahead days ahead months ahead Reviews, Reports Execution DecisionsSlide 9
  10. 10. Where Yield/Production Accounting Lives Synchronization Business Production Accounting Performance Management Business/Yearly Business Results Target Area for Plan Plan vs. Actual Results Goals Monthly Production Performance Management Production Accounting Quarterly/Monthly Backcasting Plan Plan vs. Actual Reconciled Performance Management Goals and Targets Performance Logistics Daily Accounting Schedule Sched vs. Actual Reconciled Performance Limits & Boundaries Hourly Balance Operations Operations Operations Monitoring Management VALUE Process Control & Integration Optimization weeks ago days ago hours ago now hours ahead days ahead months ahead Reviews, Reports Execution DecisionsSlide 10
  11. 11. The Case for Integrated Yield Accounting • Business Functions Supported – Financial and Process KPIs – Decision processes – Simulation Tools • Loss Control and Reduction – Current unaccounted losses at a typical Refinery = 1.5% – As a result of Data reconciliation, assume that 0.5% is properly accounted – Price Differential between loss and product mix = $10 per barrel – Potential Reduction in Unaccounted Losses = 250,000 bbl x 330 days x 0.005 x $10 = $4.1 MM/year • Yield accounting is performed: – Refinery wide Daily Mass and Utility Balance Reconciliation – Refinery wide Monthly Mass and Utility Balance Reconciliation & AccountingSlide 11
  12. 12. Yield Accounting Integration with Offsites Process Unit DVR (Data Validation and Reconciliation) Offsites Inventory and Movement Management
  13. 13. Yield Accounting Integration with Offsites Integration
  14. 14. Yield Accounting Integration with Offsites Plant wide Reconciliation
  15. 15. ErrorSolverModels
  16. 16. ErrorSolverModels
  17. 17. ErrorSolver Details and Drilldown
  18. 18. ErrorSolver Analysis
  19. 19. Quick Visibility and DrilldownHover for Process and Stream Details
  20. 20. Logical ModelsSlide 20
  21. 21. Logical ModelsSlide 21
  22. 22. Smart Objects and ConstraintsSlide 22
  23. 23. Interface CapabilitiesSlide 23
  24. 24. Interface CapabilitiesSlide 24
  25. 25. Interface CapabilitiesSlide 25
  26. 26. Tank Inventory System (TIS)• Uniform approach to managing gauging systems (Varec, Saab, L&J, Enraf, …)• Strapping table database• ASTM/API table volume & density corrections• Extended calculations (e.g. DIN51757)• Flow-rate calculations from level changes• Level & tank operational states & alarms• Standard tank detail, pool & midnight inventory reports LAHHH, Interlock, no TIS alarm LAHH, Movement shutdown LAH Tank Maximum Working Level Ullage Maximum Capacity Working Volume TIS provides the basic data of the Measured level actual state for all other Offsites Pumpable Volume Total Observed Operator setpoint Volume Modules Minimum Working Level Minimum LAL TIS bridges the tank gauging with the Working Volume LALL, movement shutdown MES/ERP layer
  27. 27. Order Movement Management System (OMM)• Management, real-time monitoring & reporting for all orders/movements.• Handles all standard movement types (tank, unit, & transport source/ destinations), blending operations, and other complex orders• Can handle co-mingling (multiple ownership)• Validates input data and overall movement data based on all available meters & gauges• Optional Product composition tracking (PCT) and quality integration (TQI) modules• OMM interfaces with scheduling and stock/yield accounting systems OMM bridges the gap between movements scheduling, operations and oil accounting OMM monitors active movements, manages scheduled activities and archives past actions
  28. 28. Offsites Value in Yield Accounting • Streamline inventory & movement management • Better inventory accounting • Provides accurate & reliable data to ErrorSolver
  29. 29. Case Studies
  30. 30. Case Study - Upgrade LG Chemicals Mr. S. K. Jang of LG Chemicals, Korea, says:“We had tried other material balance solution and were frustrated by howpoorly they worked and how much effort they required to create and maintain.We were surprised and pleased to find out that there was another way.ErrorSolver saves us hours each day and gives us results we could not haveobtained using other solutions.”
  31. 31. LG Chemicals Loss Control Energy ErrorSolver ManagementMeasurement AccuracyImprovement
  32. 32. LG Chemical Scope Case Study DR Detail ModelNCC,BPA Overall DRModelsNCC, BPA Detail ProcessDR ModelsSummary DR Models forERP Uploads, Energy Costand Utility Distribution.Easy Maintenance andData Consistency by clearand efficient modelbuilding.
  33. 33. Upgrade Case Study Yeochun NCC Mr. D. K. Kim, Deputy General Manager of Yeochun NCC says: “ErrorSolver offered us functionality that was simply not present in our original software,-- the ability to create logical summary models and user-definable constraints.The composition tracking functionality provides valuable feedstock movement detection andquality tracking. The switch to ErrorSolver improved our work efficiency, data validation,and execution speed, so that overall, our material balance work time was shortenedby half. On a normal day, we spend less than an hour balancing the plant, and we can trustthe values we get back from ErrorSolver."
  34. 34. Conclusion
  35. 35. ErrorSolver InstallationsList of ErrorSolver customer implementations and upgrades from other products: SK Energy Refinery (former Yukong, Ulsan plant) – Korea, 1998 SKC (former SK OXY Chemicals, Petrochemical, SM plant) – Korea, 2000 KOGAS (LNG Plant) – Korea, 2000 Honam Petrochemical(Yeosu plant, Ethylene plant)– Korea, 2003 Samsung Total Petrochemical (Ethylene plant & Aromatic plant) – Korea, 2004 Qingdao Petrochemical (Refinery) – China, 2005 Yeochun NCC Petrochemical(Ethylene plant) ‐ Korea, 2005 SK Energy Refinery(Incheon plant) ‐ Korea, 2005 LG Chemicals (Daesan plant, Ethylene plant) ‐ Korea, 2005 Honam Petrochemical(Daesan plant, Ethylene plant) – Korea, 2006 LG Petrochemical (Yeosu plant, Ethylene plant) – Korea, 2006 KP Petrochemical (PX & TPA plant) – Korea, 2007 Samnam Petrochemical (TPA plant) – Korea, 2009 Daehan Petrochemical (Ethylene plant) – Korea, 2010 Titan Petrochemical (Ethylene plant) ‐ Malaysia, 2012
  36. 36. Invensys’ Yield Accounting Key DifferentiatorsSuperior Functionality and Greater Reliability Gross Error detection and elimination Graphical process modeling environment Logical modeling capability Automatic detection of missing movements Composition tracking function Smart Objects: Equation Builder Multi-period Reconciliation Offsites integration ErrorSolver with Offsites Integration raises the bar for Yield Accounting Practices
  37. 37. With Our Solution, Our Customers… Take less time to Reconcile Save implementation costs Report Daily, Monthly reconciliation quickly Have Greater Data Visibility Track Co-ownership easily Navigate through the model areas easily Perform little or no maintenance
  38. 38. Value Drivers for Yield Accounting • Reduced Unaccounted losses • More consistent, reliable data for cost, yield, and equipment performance measures (KPIs). • Instrument maintenance efficiency more effective: focus on true problem areas • Provides improved feedstock data for process yield simulators • Accurate Feedstock and Product TrackingSlide 38
  39. 39. Thank You
  40. 40. For a Product Demonstration or more information, please contact: John Hernandez john.hernandez@invensys.com +1 713 329 8468 Joe McMullen joseph.mcmullen@invensys.com +1 484 467 6168
  41. 41. Register at: www.real-time-answers.com/refinery/

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