This document discusses lean manufacturing and its application to petrochemical plants. It defines lean manufacturing as focusing on eliminating waste, improving productivity, quality and optimizing resources. The document outlines various lean tools like 5S, kaizen, total productive maintenance and their use. It analyzes sources of waste in petrochemical plants and provides examples of applying lean thinking to maximize byproduct value, reduce conversion costs and implement business cases around market optimization, product development and opportunity realization. The overall objective is to translate lean philosophy for continual improvement in petrochemical operations.

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OBJECTIVE
To understand the concept of Lean
Manufacturing and translate its philosophy to
Petrochemical plants.
LEAN MANUFACTURING

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Elimination/Reduction of Waste within the system
WHAT IS LEAN MANUFACTURING ?
Identify
Eliminate/Reduce
Input OutputSystem
Waste

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LEAN MANUFACTURING OVERVIEW
“Lean Manufacturing” incorporates tools and techniques to
Optimize time, human resources and assets
Improve productivity
Improve quality of products and services

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Lean production focuses on
- Eliminating waste in processes
- Expanding capacity by reducing costs and shortening
cycle time
- Understanding what is important to the customer
Analyze the flow of information and materials for
continual improvement of the process
LEAN MANUFACTURING OVERVIEW

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There are three types of operations in any process
Non-Value-Adding (NVA)
Necessary but Non-Value-Adding (NNVA)
Value-Adding (VA)
Focus on Value-Adding (VA) operations
WASTE REMOVAL
LEAN MANUFACTURING

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Kaizen
Focus on eliminating waste, improving productivity and
achieving sustained continual improvement
• Six Sigma
A statistical process control and analytical tool to improve
productivity and quality.
Total Productive Maintenance (TPM)
Basket of Maintenance of Practices which helps in focusing
on elimination losses such as breakdowns, idling and minor
stoppages, reduced defects & rework, spills and process-upset
conditions
LEAN MANUFACTURING
TOOLS

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Cellular Manufacturing/One-Piece Flow system
Process for connecting the manual and machine processes of
similar operations in order to eliminate non-value adding
activities.
Just-in-time (JIT) Production Systems / Kanban
Inventory strategy to reduce process inventory and it’s
associated costs.
Value Stream Mapping
Created a visual representation of all product and information
flows from raw material to shipping
LEAN MANUFACTURING
TOOLS

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5S
Reduces waste and optimizes productivity through
maintaining an orderly workplace. Elements of 5S are
Seiri – Sort
Seiton – Set in Order
Seiso – Shine
Seiketsu – Standardize
Shitsuke – Sustain
Place for everything and everything in it’s place.
LEAN MANUFACTURING
TOOLS

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2nd
Tier
1st
Tier
Toyota
Customer
Demand
Flow of
Information
Flow of
Production
2nd
Tier
1st
Tier
Assembler
Customer
Demand
Flow of
Information
Flow of
Production
Traditional “Buffered”
Supply Chain
Just-In-Time
Supply Chain
TOYOTA PRODUCTION SYSTEM

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1. Faster Inventory updates
2. Shortening time for generating production forecast
3. Online reporting, cutting down paper
4. ERP
156% ROI
LEAN MANUFACTURING
APPLICATION IN CPC

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Waste within the Toyota Production
System
Waste within the Petrochemical Plant
Overproduction
Waiting
Transportation
Inappropriate Processing
Unnecessary Inventory
Unnecessary Motion
Defects
Inappropriate feed stock
Lost by-product credit
Quality give away
Off spec generation/reprocessing
Equipment idling
High energy cost
LEAN MANUFACTURING
APPLICATION TO PETROCHEMICAL PLANT

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1. Understanding waste in the form of loss of contribution at
every stage of operation.
2. Understanding the impact of HSE incidence on
contribution.
3. Understanding all components of cost of production.
4. Understanding of value added activities and non-value
added activities.
5. Understanding Process intensification.
6. Understanding EPS and Marketing functions.
LEAN MANUFACTURING
APPLICATION TO PETROCHEMICAL PLANT

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Best Lean Manufacturing Practices:
Kaizan
Epsilon/Depsilon reports
Daily contribution reports
Daily feed stock & by-product analysis
Daily energy consumption report
Daily stream analysis for quality give away
E-mfg Practices
Structural Capital
5S for Safe work place
LEAN MANUFACTURING
Aromatics Plant

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5°C increase in Platformer feed EP – loss 16.5 MUSD/yr
1% lowering of PX/C8A – loss is 12 MUSD/yr
High RVP of ED Raffinate – 10 MUSD/yr
200MTD C8A blending in Gasoline – Loss is 5.6 MUSD/yr
2% loss in heater efficiency – loss is 3.2 MUSD/yr
C10A conversion in Tatoray vs blend in Diesel/Gasoline – 2.1 MUSD/yr
1% reduction in PX recovery – Loss is 7 MUSD/yr
LEAN MANUFACTURING
Aromatics Plant - Opportunities

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71.0
27.2
0.2 1.4
0.2
Net RM Cat Chem Utilities Manpower Maint
LEAN MANUFACTURING
PARAXYLENE COST STRUCTURE
•By product credit is 60% of Raw Material cost
•Conversion cost is 27% of operating cost

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By Product Value
Maximization
 Maximize production of OX, BZ, Hydrogen
 Recovery of Hydrogen from gases to Sat/Unsat header
 Recovery of BZ from low value streams
 Up-gradation of low value streams to high value streams (ED raffinate)
BYPRODUCT
Yield
(wt% Plat feed)
Price
HIGH VALUE
H2 2.17 44259
OX 10.36 26818
BZ 11.12 29351
HAR 2.29 22109
LPG 4.24 17075
LOW VALUE
ED Raffinate 9.68 15573
Fuel Gas 14.05 10050
AHE 1.16 9137
FEED STOCK ANALYSIS
LEAN MANUFACTURING

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• Conversion cost for Aromatic plant at Jamnagar is 27% of the
operating cost.
• 60% of conversion cost is fuel cost.
• Optimize Heater and Columns operation
28.9
12.3
58.8
Power Fuel Net Steam
LEAN MANUFACTURING
CONVERSION COST

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• Business Case: 1
Market Interface: Based on Market scenario HASC production is
optimized
• Business Case: 2
Product Development: Renine was introduced in market which won
Golden Peacock Award for Techno-commercial innovation
• Business Case: 3
Byproduct Optimization: C10A conversion across Tatoray
• Business Case: 4
Opportunity in Adversity: Blending of C7A, Mix Xylene, C10A in
Gasoline
LEAN MANUFACTURING
EXAMPLES OF BUSINESS CASES

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• Business Case: 5
Waste Elimination: Recovering Hydrogen going to Sat/Unsat
• Business Case: 6
Waste Elimination/Change in mindset: Reduction of BZ drag
• Business Case: 7
Quality giveaway: C2 loading in LPG product
• Business Case: 8
Human Resource : Enhancing Human Skill – Prepare for
tomorrow. Eliminate positions.
LEAN MANUFACTURING
EXAMPLES OF BUSINESS CASES

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We are what we repeatedly do,
Excellence then is not an Act but
A Habit
THANKING YOU

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Innovation
Knowledge
Known Things -
Productivity
Unknown Things -

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KAIZEN
Plant Manager
Production mgr
Worker
Normal operation
Innovation
Supervisor