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Supply Chain Management Solutions for Integrated Petrochemical Complexes

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Supply Chain Management Solutions for Integrated Petrochemical Complexes AlMansour Belhadj
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Page 1: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

Supply Chain Management Solutions for Integrated

Petrochemical Complexes

AlMansour Belhadj

Page 2: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

AGENDAAGENDA

Honeywell Process SolutionsIndustry TrendsBusiness Applications

Page 3: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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

Page 4: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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)

Page 5: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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

Page 6: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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

Page 7: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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

Page 8: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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

Page 9: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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

Page 10: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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

Page 11: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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

Page 12: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

12 HONEYWELL - CONFIDENTIAL Business Applications Overview

Driving towards an Integrated Vision

Page 13: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

AGENDAAGENDA

Honeywell Process SolutionsIndustry TrendsBusiness Applications

Page 14: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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

Page 15: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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

Page 16: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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'?

Page 17: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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

Page 18: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

18 HONEYWELL - CONFIDENTIAL Business Applications Overview

Page 19: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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

Page 20: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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

Page 21: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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 ……

Page 22: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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 ……

Page 23: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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

Page 24: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

AGENDAAGENDA

Honeywell Process SolutionsIndustry TrendsBusiness Applications

Page 25: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

25 HONEYWELL - CONFIDENTIAL Business Applications Overview

Integrated Refining and Petrochemical Complex

Page 26: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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

Page 27: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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

Page 28: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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

Page 29: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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

Page 30: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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

Page 31: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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

Page 32: Supply Chain Management  Solutions for Integrated  Petrochemical Complexes

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

honeywell


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