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Digital transformation driving operational excellence

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Digital transformation driving operational excellence

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Digital transformation driving operational excellence

  1. 1. KBC/Petronas Technology Session and Round Table Workshop Proprietary Information 16-17th January 2018 Confidential Information Yokogawa/KBC Technology; Digital Transformation driving Operational Excellence PaulNewman RegionalSolutionsDirector
  2. 2. KBC/Petronas Technology Session & Round Table Workshop Proprietary Information 16-17th January 20182 Situation • Transient icing of speed sensors caused inconsistent airspeed readings, which led the autopilot to disconnect. • Meteorological conditions, ambiguous readings, and pilot inexperience overwhelmed the crew. • “Swiss cheese” failure, holes in organizational defences line up in unforeseen ways. Dangers of Automation - Tragic Crash of AF447 Response • Startled and inexperienced at manually flying at higher altitudes, where the “safe flight envelope” (operating window) is more restricted. Outcome • Technology that allows systems to be efficient and largely error-free also creates systemic vulnerabilities that result in occasional catastrophes – “the paradox of almost totally safe systems.” • Automation can limit pilots’ abilities to respond to such incidents, as more dependence on technology can erode basic cognitive skills.
  3. 3. KBC/Petronas Technology Session & Round Table Workshop Proprietary Information 16-17th January 20183 Digital Transformation Drivers High market uncertainty, from fuels to chemicals Need for increased supply chain visibility Technological innovation and digitization Changing competitors and business models Industry crew change Tightening HSE regulation …is stunting growth, profitability and challenging traditional business models …for capturing opportunity and managing risk …is putting emphasis on portfolio quality and asset position on cost curve …is causing disruption and consideration of new operating models …is forcing facility investment in order to maintain the licence to operate …is presenting a succession challenge to cope with a major skill gap and changing worker needs
  4. 4. KBC/Petronas Technology Session & Round Table Workshop Proprietary Information 16-17th January 2018 Will the Plant of the Future will be on Auto-pilot? • Agile and flexible  Supply chain synchronization and optimum utilization • Synchronized Business and Plant Systems  Operation based on real-time economics • Autonomous operations  Nearly unmanned operation, intervention by exception  Event prediction and mitigation • Information-Driven (evidence-based decision)  Connected, networked, access anywhere  Right information, content, context • Asset Performance Management  Optimized operating performance  Predictive and prescriptive alerts  Highly integrated operations and maintenance • Safe, Secure and Clean 0 100 200 300 400 500 1950 1960 1970 1980 1990 2000 2010 2020 2030 Control loops per operator 1st Automation Revolution 2nd
  5. 5. KBC/Petronas Technology Session & Round Table Workshop Proprietary Information 16-17th January 20185 Digital Transformation Key Challenges of Digital Transformation Information is not readily available Existing systems are poorly integrated and deliver limited value Lack of digital vision and strategy Sub-optimal business processes Lack of innovation and change management • Value not measured • Sub optimal business processes • Lack of collaboration • Lack of automation • Not intuitive • Unsustainable, difficult to maintain, improve and secure • Poor quality data • Increasing large, diverse and complex data volumes • Poor integration between enterprise and operations management systems – information islands • Disparate, poorly integrated and overlapping applications and databases • No search capability • Lack of mobile and cloud support
  6. 6. KBC/Petronas Technology Session & Round Table Workshop Proprietary Information 16-17th January 20186 Digital technologies enable new work processes Attribute From To System architecture Hierarchical, proprietary Open, interoperable Communication Proprietary Open, common objects Performance management Weekly or monthly Real-time KPIs Safety & security Specialized Integral, cyber security Work process User dependent Automated Business & plant systems Loose coupling Tightly integrated Flexibility & scalability Monolithic Modular Maintenance Preventative Predictive, RCM, Prescriptive Optimization Process and unit Plant wide & supply chain Access Tethered Mobile, wireless Applications / control Centralized Distributed Location On site, on premise Remote, cloud
  7. 7. KBC/Petronas Technology Session & Round Table Workshop Proprietary Information 16-17th January 2018 KBC OpXTM Model
  8. 8. KBC/Petronas Technology Session & Round Table Workshop Proprietary Information 16-17th January 20188 Key Digital Opportunities Supply chain scheduling LP data generation Production scheduling Operating goals management On-line unit performance monitoring Simulation integration with PI Advanced control and optimization CDU / GTU APC, diesel / gasoline RTO Blending optimisation Utility and energy optimisation Terminal automation and truck loading Mobile and web support (Co-Pilot) RAM to maximize value of Meridium Integration of SAP PM, Meridium, PI, InsightSuite AE Integration of technical data, including SRIP Shift Team Effectiveness and Operations Management High performance operations Base layer control improvement Alarm Management Modular procedure automation Operator training
  9. 9. KBC/Petronas Technology Session & Round Table Workshop Proprietary Information 16-17th January 2018 OpXTM requires a comprehensive Digital Strategy • Large opportunity to drive Operational Excellence using Digital Technologies • From Plant to Business Optimization  Integrated and automated business processes  Real time performance optimization • And Mindful Automation  Augmented / virtual reality  Improved situational awareness  Expert guided operations  Collaboration between human & machine • From ‘Sensing’ to ‘Sense Making’
  10. 10. KBC/Petronas Technology Session and Round Table Workshop Proprietary Information 16-17th January 2018 Confidential Information Thank you
  11. 11. KBC/Petronas Technology Session & Round Table Workshop Proprietary Information 16-17th January 2018 Key Principles of a Digital Strategy • Drive operational excellence and digital strategy from board level • Focus on digital workers and business value delivery • Transform and automate business models and processes • Agile implementation (e.g. Scrum) • Everything in the Cloud (SaaS) • Everything Mobile (5G) • Security by Design • Maximize open source software (e.g. Linux, Mongo DB, Cloud Foundry) • Integrate federated applications using (RESTful) web services • Design digital data architecture to create a Digital Twin  data analytics, first principle models and deep domain knowledge • AI and machine learning to deliver relevant information as needed  Apple Siri, Microsoft Cortana, IBM Watson, Google Deepmind • Blockchain for B2B eCommerce
  12. 12. KBC/Petronas Technology Session & Round Table Workshop Proprietary Information 16-17th January 201812 Sample block flow approach As-Is assessment Market factors Strategic intent Gap Analysis Leading practices Organisation and Capability Enabling Technology Technology deployment Knowledge transfer Opportunity capture Performance management Define Discover Develop Deliver Sustain Benchmark performance SPOT analysis Market environment Regulatory situation Strategic objectives Business constraints Strategic objectives Business constrants Initiative implementation planning To-Be business processes Decision rights and RACI Training program Organisation design Automation Decision support Automation Decision support Initiative implementation Business process implementation Organisation alignment Training execution KPIs Benefits caputure Knowledge management
  13. 13. KBC/Petronas Technology Session & Round Table Workshop Proprietary Information 16-17th January 2018 Process (Utilities Consumers) External Utilities Contracts Emissions Regulations Hydrogen Fuel Steam Water Electricity Energy and Utilities System Measurements CLOSED-LOOP signals to control systems OPEN-LOOP advisory reports to operators Operators (Degrees of freedom in Generation and Distribution) Optimum Energy System Operatio n Report Process Models Measurements Control System / Historian EnPIs, Streams and Equipment Calcs. Energy Related Reports and Dashboard Energy and Emissions KPIs Monitoring Energy Use and Account Utilities Optimization
  14. 14. KBC/Petronas Technology Session & Round Table Workshop Proprietary Information 16-17th January 2018 KBC Co-Pilot – Remote Performance Optimization Process Simulator & LP Sub-model Data Historian Process/Lab data Performance Indicator Process Simulator Data Historian Customer Site LP Process Simulator & LP Sub-model KBC Co-Pilot Center LP vector Model file Process/Lab data Corporate Dashboard Site Manager Dashboard Unit Supervisor Dashboard Operator/ Engineer Dashboard Petro-SIM Model Dashboard Assessment Review Report FCC Economic Performance FCC Overview Gasoline Volume Yield Performance Gap Monitor & Analysis Actual vs. LP vs. Simulation Cloud Data Center
  15. 15. KBC/Petronas Technology Session & Round Table Workshop Proprietary Information 16-17th January 2018 Why Petron 2020 Operational Excellence ? Whilst maintaining a safe and reliable operation Changes to regulatory framework Adoption of new technology Increasing workforce competence Future market uncertainties Maximising cash flow
  16. 16. KBC/Petronas Technology Session & Round Table Workshop Proprietary Information 16-17th January 201816 Yokogawa/KBC - Driving Business Excellence 14 February 2018 KBC ADVANCED TECHNOLOGIES Proprietary Information KBC Offering Suite
  17. 17. KBC/Petronas Technology Session & Round Table Workshop Proprietary Information 16-17th January 201817 KBC OpXTM - Superior Results Sustained 14 February 2018 KBC ADVANCED TECHNOLOGIES Proprietary Information KBC OpXTM Model
  18. 18. KBC/Petronas Technology Session & Round Table Workshop Proprietary Information 16-17th January 201818 Culture – The Key to Effective Operations Excellence KBC ADVANCED KBC OpXTM Model… …underpinned by KBC OpXTM World Class Characteristics
  19. 19. KBC/Petronas Technology Session & Round Table Workshop Proprietary Information 16-17th January 201819 Culture; Shared Assumptions, Values and Beliefs 1. Organisational culture governs how people behave in organisations. 2. Shared organisation values have a strong influence on the people and dictate how they act and perform their jobs. 14 February 2018 KBC ADVANCED TECHNOLOGIES Proprietary Information Culture Motivators Information Structure Networks Commitments Mindsets Decision Rights Norms
  20. 20. KBC/Petronas Technology Session & Round Table Workshop Proprietary Information 16-17th January 201820 KBC OpXTM Behaviour Elements
  21. 21. KBC/Petronas Technology Session & Round Table Workshop Proprietary Information 16-17th January 2018 Price Deck Formulation Strategy ProduceLicense to OperateHuman Performance STRATEGYTACTICSEXECUTION Culture / Philosophy Stakeholders Management Job Design and Alignment Organization Structure and Resource Allocation Hydrocarbon / Chemical Management Knowledge Management Business Risk Strategy Process Safety Personal Safety Inspection Operational / Shift Team Effectiveness HSSE Reporting Asset Improvement Maintenance and Integrity Strategy Asset Optimization Asset Care Planning Reliability Assurance Capital Projects Delivery Minor Projects Delivery Routine Maintenance Asset Strategy Supply Chain Scheduling Asset Operations and Process Control Defect Elimination Turnaround Maintenance Hydrocarbon / Chemical Supply Chain Planning Corporate Strategy Corporate Planning Commercial Contracting Training Adaptive Organization (Change Management) RISK ENGINEERING MAINTENANCEOPERATIONS Asset Portfolio Strategy Personnel Performance Management Environmental Management Compliance Strategy Enterprise Risk Management COMPLY Plant Protocols and Security Supply & Demand Capability Strategy Capital Allocation Corporate Performance Management Capability Development Community Relations BUSINESS MANAGEMENT OPERATIONS Safety Assurance Systems Contractor Management Continuous Improvement Strategic Initiatives Work Processes and Procedures Recruitment Planning Term Contract Planning Succession Planning and Career Development Automationofkey businessprocessesenablesBusinessExcellence Other Supply Chain Planning Business Work Processes Strategy Materials & Services ProcurementBusiness Intelligence
  22. 22. KBC/Petronas Technology Session & Round Table Workshop Proprietary Information 16-17th January 201822 Profit Improvement Programme optimisation levers to provide sustainable margin uplift KBC ADVANCED Margin Improvement Workstreams Refinery Wide Simulation Cross-functional integration of production planning Delivered Value • Yield Benchmark • Rigorous Kinetic Models • LP Utility Applications Typical Benefits Range $$$$ Viva Production Game Changers Considerations for Viva 1) Initiative evaluation and approval process. 2) Quantifying and assuring Initiative benefits: a. Financial returns b. Risk reduction c. Operational flexibility d. Legislative / legal. 3) Capital constraints and economic return hurdles. 4) Turnaround schedules. 5) Internal risk aversion to implementation. 1. Capacity utilization 2. Crude oil supply logistics and flexibility

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