supply chain management solutions for integrated petrochemical complexes
DESCRIPTION
Honeywell PresentationTRANSCRIPT
Supply Chain Management Solutions for Integrated
Petrochemical Complexes
AlMansour Belhadj
AGENDAAGENDA
Honeywell Process SolutionsIndustry TrendsBusiness Applications
3 HONEYWELL - CONFIDENTIAL Business Applications Overview
Who is Honeywell?
• Founded in 1886
• 122k employees in >100 countries
• A $30.9 billion (2009) Company
• Global leader in advanced technology products, services and solutions
• ACS Division = $12.6 Billion
SPECIALTY MATERIALS
TRANSPORTATION AND POWER SYSTEMS
Financially Strong and GlobalFinancially Strong and GlobalFinancially Strong and Global
AUTOMATION ANDCONTROL SOLUTIONS (ACS)
AEROSPACE
4 HONEYWELL - CONFIDENTIAL Business Applications Overview
Honeywell Middle East
• Established in Sharjah since 1977
• Sales, Projects, Engineering and Support Center in:
United Arab Emirates
Kingdom of Saudi Arabia (3 offices)
Oman
Qatar
Kuwait
Iraq
• Training facilities (Automation college)
• Integration center (KSA, UAE, Kuwait)
5 HONEYWELL - CONFIDENTIAL Business Applications Overview
Our Mission - Improve Business Performance
Efficiency
Improve Productivity Reduce Cost
Honeywell solutions address these critical business performance issues
Safety
Protect People, Assets & Processes
Sustainability
Maximize Return on Investment
Reliability
Improve Availability Reduce Downtime
6 HONEYWELL - CONFIDENTIAL Business Applications Overview
What are the Business Pressures?
• Reduce and mitigate incidents
• Improve emergency response
• Reduce human error
• Reduce unexpected equipment failures
• Maintain stable control
Safety
7 HONEYWELL - CONFIDENTIAL Business Applications Overview
What are the Business Pressures?
• Minimize unscheduled downtime
• Protect high capital cost assets:
• Mature assets and retiring workforce
• New assets and inexperienced workforce in emerging regions
• Enhance asset life
• Reduce/eliminate abnormal situations
Reliability
8 HONEYWELL - CONFIDENTIAL Business Applications Overview
What are the Business Pressures?
• Increase throughput and yield
• Improve Planning and Scheduling
• Be flexible to meet product demand volatility
• Increase energy efficiency
• Operate consistently
• Capture best operating practices
• Meet increasingly stringent product specs including biofuelswhile minimizing give away
• Reduce overall cost
Efficiency
9 HONEYWELL - CONFIDENTIAL Business Applications Overview
What are the Business Pressures?
• Maintain & increase return on investment
• Reduce lifecycle costs
• Meet environmental regulations
• Transfer knowledge from aging to young workforce
• Minimize energy usage and emissions
• Use alternative energy resources where available
Sustainability
10 HONEYWELL - CONFIDENTIAL Business Applications Overview
Layers of Automation
Level 5
Level 3
Level 2
Level 1
Level 4
Corporate Planning and Logistics (ERP)
Advanced Applications
Business Applications (MES)
Control Systems
Field Instruments
Layers of Automation Collapsing Over the Next decadeLayers of Automation Collapsing Over the Next decadeLayers of Automation Collapsing Over the Next decade
11 HONEYWELL - CONFIDENTIAL Business Applications Overview
Collapsing Middle Layers
Level 5
Level 1
Level 2-4
Field Instruments
AdvancedApplications
BusinessApplications
(MES)
ControlSystems
OptimizeAnalyze
Control
Corporate Planning and Logistics - ERP
Proc
ess
Kno
wle
dge
Syst
em
Honeywell pioneers single architecture to enhance safety, reliability, efficiency
Honeywell pioneers single architecture to enhance safety, Honeywell pioneers single architecture to enhance safety, reliability, efficiencyreliability, efficiency
12 HONEYWELL - CONFIDENTIAL Business Applications Overview
Driving towards an Integrated Vision
AGENDAAGENDA
Honeywell Process SolutionsIndustry TrendsBusiness Applications
14 HONEYWELL - CONFIDENTIAL Business Applications Overview
Refining and Petrochemicals Drivers
• Lower unit manufacturing cost– Improve feedstock selection– Explore variable feedstock's
• Improve plant asset utilization– Furnace severity optimization– Physical and quality constraints– Recycles– Inventory management
• Improve reliability and increase on-stream factor
• Increase capacity utilization
• Reduce losses– Performance monitoring (plan versus actual)– Production accounting
• Planning for market positioning– Strategic planning, budgeting– Make the right product at the right time
15 HONEYWELL - CONFIDENTIAL Business Applications Overview
NGL’s
Refineries Olefins Plant
Spot-MarketContract Naphtha
Ethylene
Propylene??
?
???
Polymers
Crude Oils
(variable feed) ? C4’s, Aromatics
Petrochemical Supply Chain Challenges
16 HONEYWELL - CONFIDENTIAL Business Applications Overview
• Be More Responsive (Feedstock Selection Optimization)– Deal with volatile merchant market– Proactively move on feedstock opportunities and price changes– Make the right product at the right time
• Improve Asset Utilization (Operations Optimization)– Reduce feedstock conversion costs– Improve reliability and on-stream factor– Increase capacity– Reduce by-product losses
These Market Drivers Require To :
… So What Do We Need to ‘Optimize'? …… So What Do We Need to So What Do We Need to ‘‘Optimize'? Optimize'?
17 HONEYWELL - CONFIDENTIAL Business Applications Overview
Holistic Approach to Optimisation
• Holistic approach mandates the optimisation of performance in both horizontal and vertical dimensions :
– Horizontally - from Feedstock source to final customer – cover complete supply chain
– Vertically - 'Level-1 to Level-5‘ or 'Field-to-ERP‘– Provide tight integration of all plant applications with the supply chain
outside of the plants
• Holistic approach also mandates the need for tight integration of all plant and supply chain solutions, including any legacy or third-party applications
18 HONEYWELL - CONFIDENTIAL Business Applications Overview
19 HONEYWELL - CONFIDENTIAL Business Applications OverviewReviews, Reports Execution Decisions
Process Simulation & Design, Equipment & Catalysts
Field Instruments & Control Devices
EnrafSafe & Secure Environment
Common Data & Visualisation
Common Limits & Boundaries
Holistic Approach to Optimisation
20 HONEYWELL - CONFIDENTIAL Business Applications Overview
Demand Forecasting
Enterprise Planning
Feedstock Acquisition &
TradingPlanning
Scheduling
Distribution Planning
Distribution Transportation
Products Trading
Feedstock Transportation
Plan
Perform
Perfect Operations Management
Movement ManagementYield
Accounting
PerformanceManagement
DistributionScheduling
Inventory Targeting
Backcasting
Enterprise Resource Planning
Holistic Approach to Optimisation – Work Processes
21 HONEYWELL - CONFIDENTIAL Business Applications Overview
Solution Integration Is The Key
• Don’t Think Application – Think Integration!Not just 'interfacing' - integratingFunctionality-centred, loose coupling
Control System Control System
Plant Historian
PartnerSolution
3rd party
Plant Historian
Business FLEXAdvancedSolutions
Business Business HiwayHiway
ERP Systems
Enterprise Integration
… Integration of Applications is Essential ……… Integration of Applications is Essential Integration of Applications is Essential ……
22 HONEYWELL - CONFIDENTIAL Business Applications Overview
Holistic Project Delivery
• Holistic Automation IncludesSupply Chain ManagementPlanning & SchedulingOperating Envelope ManagementOperations ManagementAsset ManagementProduction ManagementPerformance ManagementIntegrationSecurity & Access ControlControl SystemSafety SystemsInstrumentation
… One Stop for Application and Integration: IMAC ……… One Stop for Application and Integration: IMAC One Stop for Application and Integration: IMAC ……
23 HONEYWELL - CONFIDENTIAL Business Applications Overview
Integrated Main Automation Consulting (I-MAC)
Process Readiness: MAC/TSI FEED Ensures Fit for Purpose Infrastructure Supports OR/BR
OR Consulting: Identifies Operations’ Work Processes
BR Consulting: Identifies Business Processes
Operations To Business Integration Production Operations Safety & Security Maintenance & Reliability Facilities & ConstructionHistorian Alarm Management Gas Detection Corrosion Asset TrackingOperations Management Automated Procedural Operations H2S Detections & Monitoring Vehicles Production Planning/Scheduling Mobile Operations Explosibility Management Equipment LIMS Maint. Work Order Entry Personnel Tracking/Personal Gas Detectors Equipment Run Time Networks & Telecommunication Production Reporting & Accounting Mobile DCS Fire Detection & Suppression Plant Asset Management Constructions PhaseOperating Instructions Handhelds for field rounds Process Maintenance Management System (MMS) Operations PhaseShift Hand-Off Integrated Control Safety System (ICSS) Non-Process Parts Management and Warehousing Construction CampsERP Integration Remote Operations Mustering Condition Monitoring System (CMS) Permanent CampMaterial Replenishment Planning (MRP) Process Simulation Video Equipment Health Monitoring (EHM) Lay-down Yard
Training Process Field Device Management (FDM) Warehouses Operator Training Simulator Security Electrical Diagnostics HVAC Virtual Reality Scenarios Access Control Documentation/Information Asset Management (IAM) Modular Buildings Skills Assessment Plant Drawings Graphic Building Well Pads ProceduresSulfur Terminal Automation Sulfur Terminal Management of ChangeAdvanced Process Control & Optimization (APCO) Payroll/HR Integration MSDSField Real Time Optimization (RTO) Perimeter Security Systems Well Testing/Metering Cameras Networks Integrated Field Modeling (IFM) Radar Databases Slug Management Microwave Project to Ops HandoverPipeline Operations Fence Line Calibration Leak Detection Emergency Response TrainingControl Operator Ergonomics & Interaction Documentation for Safety Shutdown Testing Loop TuningCommissioning Public Address Systems Configuration1st Year Operations Support Operator to Operator Communication System Maintenance
Document Management SecurityWork PermittingRemote Support
AGENDAAGENDA
Honeywell Process SolutionsIndustry TrendsBusiness Applications
25 HONEYWELL - CONFIDENTIAL Business Applications Overview
Integrated Refining and Petrochemical Complex
26 HONEYWELL - CONFIDENTIAL Business Applications Overview
Refining Complex composed by:- Crude Toping- Vacuum Distillation Unit- VGO Hydrotreater- Alkylation Unit- Ethane Cracker- High Olefin Fluid Catalyst Cracking complex- Gasoline Blending- Associated Utilities, tank-farms and marine facilities
To feed Petrochemical plants producing:- EPPE- LLDPE- HDPE- PP Homopolymer- PP Block Copolymer- MEG- PO
Integrated Refining and Petrochemical Complex
27 HONEYWELL - CONFIDENTIAL Business Applications Overview
Holistic Approach to Supply Chain Optimization
CRUDEOILDATA
CRUDEOILDATA
Production Planning(Refinery and
Petrochemicals)
Production Planning(Refinery and
Petrochemicals)
ERPERP
PERFORMANCEANALYSIS
PERFORMANCEANALYSIS
PLANT&
BERTHSCHEDULING
PLANT&
BERTHSCHEDULING
BLENDOPTIMISATION
BLENDOPTIMISATION
BLENDPERFORMANCE
ANALYSIS
BLENDPERFORMANCE
ANALYSIS
DataReconciliation
&Yield Accounting
DataReconciliation
&Yield Accounting
ASSAY2
ProductionAnalyst
RPMS
ProductionScheduler BLEND
BlendManagement
SAP
Third Party Solution
LIMSLIMS
NIR blend component analysers
NIR blend component analysers
ForecastedDemandsCrude Assay
Information
BackcastPlan Plan
Target Throughputs/operating modes Target Recipes
ReportsEffectiveBoundaries
VerifiedProduction Data
OptimisedRecipes
InventoriesInventories
Blending systemBlending systemPOLYMER SCHEDULING/
REPLENISHMENT
(Supply Chain)
POLYMER SCHEDULING/REPLENISHMENT
(Supply Chain)
Picaso
Polymer feedstockRequirements/Product wheel info
OptimisedRecipes
AnalysisReports
28 HONEYWELL - CONFIDENTIAL Business Applications Overview
• Complete Supply Chain, from Crude Oil supply through refinery and petrochemical production - Right up to the final major customers- Includes the associated logistics required to get all the products to
their final points of sale.
• Solution based on complete integration of several functions:– The planning of the complete business– The scheduling of the process units, blends and berths– Multi-product, multi-period blend optimisation– Planning performance analysis– Blending performance analysis
Holistic Approach to Supply Chain Optimization
29 HONEYWELL - CONFIDENTIAL Business Applications Overview
Benefits of a Holistic Approach
• Leading companies are using a holistic approach to impact many critical performance objectives, enabling organizations to:
– Take action based on demands, plans, schedules and activities that are consistent and integrated across the supply chain
– Have visibility across the value chain for all stakeholders
– Improve feedstock selection and production planning decisions
– Rapidly evaluate distressed trading opportunities
– Increase sales volumes of higher margin products
– Minimize product downgrades
– Minimize premium freight shipments
– Minimize demurrage
– Reduce safety stock levels while minimizing stock-outs
– Balance system inventory
– Improve responsiveness to customer/market demands
– Improve customer satisfaction
– Leverage information and event notification to quickly determine the actions in response to a disruption or opportunity
30 HONEYWELL - CONFIDENTIAL Business Applications Overview
• Tight integration of all necessary point solutions within and without the plant(s).
• All constraints are made visible and are considered very early in the production process.
• Accurate demand forecasting and supply chain event monitoring provide more accurate multi and single plant optimisation possibilities.
• Accurately implemented in the scheduling function and subsequently in the production and operations management areas via APC and DCS.
• With optimum allocations of feedstocks to jetties and onsite tanks, optimum feed quality can be assured for the furnaces. Enables more steady and harmonious furnace operations, leading to better and more reliable production.
• Accurate yield accounting and data reconciliation then provide an advanced basis for improved performance management via advanced plan vs actual comparisons.
Benefits of a Holistic Approach
31 HONEYWELL - CONFIDENTIAL Business Applications Overview
Conclusions
• Automation Excellence Requires Holistic Approach- Current industry thinking, and the strategy of the Best In Class
• Integration is the Key- Point solutions are pointless- Think Integration, not Application!
• Automation Excellence is Core Competency of Honeywell- Safety, Reliability, and Efficiency from the Sensor to the
Boardroom- Honeywell as your Integrated Main Automation Contractor (IMAC)
• Consider an Integrated Approach at Your Site- Integrated Operating Envelope Management- Integrated Supply Chain Management
32 HONEYWELL - CONFIDENTIAL Business Applications Overview
Thank You
Hence to fight and conquer in all your battles is not
supreme excellence; supreme excellence consists in
breaking the enemy’s resistance without fighting.
Sun Tzu (6–5th century B.C.), Chinese general. The Art of War
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