Chasing Value is a continuous process.
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Transcript of Chasing Value is a continuous process.
1© 2008 OSIsoft, Inc. – Japan Seminar 2008
Chasing Value is a continuous Chasing Value is a continuous process.process.
2© 2008 OSIsoft, Inc. – Company ConfidentialJapan Seminar 2008
Abitibi Consolidated Energy Management System
3© 2008 OSIsoft, Inc. – Company ConfidentialJapan Seminar 2008
MONTREALFORT FRANCES
KENORA
THOROLD IROQUOIS FALLS
FORT WILLIAM
IMO connection
APIPI APIPI Hub
Env. Canada
E-Notification
ACI/Energy Management Systema guided tour
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LPM Graphs
TOTAL NET LOAD
TOTAL LOADGENERATION
LOAD BY SECTOR
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Load
AGGREGATE
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IF (Demand)
MONTHLY CALENDAR PEAK MONTHLY PEAK ON PEAK
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TOR (Weather)
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IF (Actual VS Plan)
LOAD PLAN
7 DAYS LOAD PLAN
GENERATION
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Market Demand
MONTHLY PEAK
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IMO Pricing
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IMO Pricing - Alarm
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IMO Triggers
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Natural Gas
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Crude Oil
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NG & CO Summary
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Future
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• Abitibi was able to build this system with internal resources, at a cost of $77,000
• The system was eventually used to determine when to make power (and sell to the grid) vs when to make paper.
• Savings from the system were in excess of $1,000,000 in the first year of operation.
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Real Time Costing at Weyerhaeuser
( Leads to Overall Performance Measurement )
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Monticello Price Forecaster #2
19
GRAND TOTAL DIRECT COST PER CW TON- APRIL ESTIMATIONS -
$89.13 $95.64 $102.10 $104.89
$15.57$16.69
$17.73 $18.39$21.00
$21.00$21.00 $21.00
$5.00$5.00$5.00
$5.00
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
75% Std. (2366) 90% Std (2840) Std (3155) Record (3300)
Total Paper Production, CW Tons
Fiber Energy Chemicals Other
$130.70
$149.28$145.83$138.33
20© 2008 OSIsoft, Inc. – Company ConfidentialJapan Seminar 2008
Real Time Performance Direct cost is just one source of input data
As machine speed increases –
a) There are more maintenance problems
b) There are more quality problems
c) There are more operational problems
The PI System can help gather all of the relevant data for analysis and performance improvement
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Determination of Paper Machine Sweet Spot
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Use of PI at CEMEX
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• Operations in 50 countries across four continents.• Annual production capacity of more than 93 million metric
tons of cement • Annual production levels of approximately 74 million
cubic meters of ready-mix concrete and 166 million metric tons of aggregates.
• 66 wholly owned cement plants• minority participation in 11 cement plants• more than 1,900 ready-mix concrete facilities, • 394 aggregate quarries• 258 land-distribution centers• 80 marine terminals
CEMEX is a growing global building-solutions company that produces, distributes, and markets cement, ready-mix concrete, aggregates, and related building materials …
24© 2008 OSIsoft, Inc. – Company ConfidentialJapan Seminar 2008
Eliminate Automation risks due to
obsolescence?
Preserve AutomationAssets and extend
their lifetime?
Reduce capital requirements?
The industry’s accelerating rate of change affects the Automation assets; additionally, global competition demands the optimization of the operations using Automation and Control Systems …
Eliminate information barriers?
Empower personnel?
Create a collaborative environment?
Comply with regulations?
Maximize operationaleffectiveness?
Increase asset utilization?
Reduce cost and increase profits?
Be open yet secure?
How To?
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The CSAP Initiative covers the two bottom levels (Process Control and Real-Time Information) of the typical pyramid describing the information flow …
PROCESS CONTROL LEVEL
REAL TIME INFORMATION LEVEL
ENTERPRISELEVEL
MANAGEMENT LEVEL
CEMEX Strategic CEMEX Strategic Automation PlanAutomation Plan
Process Control Systems (PCS)
Plantwide Information Management System (PIMS)
Advanced Process Control (APC)
Cyber-Security
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CEMEX Model
Maintenance ProcurementMarketing
&Sales
Logistic
Quarry &Crushing
RawMilling
Pyroprocessing
CementMilling Packing
PIMS
ERP
Advanced ProcessControl
Statistical ProcessControl
Advanced ProcessControl
Statistical ProcessControl
Maintenance HumanResources
Quality, Operations and
Production Applications
Quality, Operations and
Production Applications
PIMS
Process Areas
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The added value is a better knowledge of our operations by transforming data into information, and information into Knowledge …
Information KnowledgeData
Flows Temperatures Pressures Powers Feeds Emissions Physical and chemical
analysis
Receipts Consumptions Productions Sales Costs Product quality
Productions Energy consumptions Energy and material
balances Operation & Quality
reports Preventive maintenance Environmental control Shutdown analysis
Key performance indicators
Production reports (daily, monthly, yearly), by:
Plant Region Country
Better process knowledge
New operation practices Decrease energy
consumptions Shutdowns reduction Increase equipment
availability
Operation margins
Strategic planning
Benchmarking between business units
Transfers better operation practices
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Benefits from the use of the PIMS System are appearing, as long as we move forward with the implementation; we expect more benefits as soon as more people are trained to use the system …
Less time to collect info: 20% of the time to obtain information and 80% for analysis and conclusions.
Key Performance Indicators in Real Time. Improved process knowledge. Ability to convert one of the most powerful corporate
assets – data – into knowledge. Common language for staff and technical employees. Improved communication across the organization. Prepare our facilities to integrate Plant Data with
Enterprise and Institutional Systems.
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In conclusion, global companies must be committed to the use and the further development of Industrial IT Technologies; and the PI System is a valuable tool to achieve this objective …
PIMS System in CEMEX, based on the PI System, contributes to:
Eliminating the barriers between process control system, people, and institutional systems.
Integrating information from many sources.
Providing a common structure to encapsulate business rules.
Empowering people through valuable process and operation information.
Documented savings after first year operations $5 million
30© 2008 OSIsoft, Inc. – Company ConfidentialJapan Seminar 2008
Six Sigma Study on Chip Qualityat Irving Forest Products
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The Opportunity Reported Problem
– Dirt in chip supply– Six Sigma Quality Improvement initiative started
Related problems
– Material availability impacting production schedules at the mills
– Transportation scheduling problems related to chip pick-up from sawmills
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Solution Ultrasonic sensors installed in chip silos and fed to central
PI System
Pertinent data brought to one central system– Chip inventories at the sawmills– Production schedules at all mills– Location and status of transportation
Using the new system one person took over the coordination of operations (in place of a dozen people)
All problems solved
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Quality Improvement at Applied Extrusion Technologies
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Applied Extrusion Technologies Largest Supplier of OPP in North America Sales in excess of $275 Million Over 500 customers Over 80 different product groups
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Business Challenges Improve Profitability
– Over capacity in the market place. – Falling Prices – Rising energy cost. – Record high raw material costs.– Work force reductions.– Increased customer performance demands
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Improvement Strategy Use Sigma principles to improve quality and
reduce cost within manufacturing.
DMAIC – Define – Measure – Analyze – Improve – Control
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Identify Financial Opportunities Pareto analysis identified film profile to be
the largest improvement opportunity. – #1 Customer Complaint Category– #1 Internal Quality Reject Issue– #1 Yield Loss– Significant FFU requirement
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Analysis Applications Real Time Profile Quality Report (RTPQR)
– Real time feedback to operator.– Trigger corrective action.
Enterprise Profile Quality Report (EPQR)– Summarized by mill roll lot.– Customer Fitness-For-Use.– Slitter operator decision support
Process Book Displays– Process monitoring.
PI Profile – Detailed scan by scan analysis
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EPQR Web Application
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Real Time Report
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Pi Profile View
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Measure Floating Profile
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Identify Process Variability
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Project Results Elimination of root causes for variation. New insights into interaction between HVAC
control and process control. Losses for profile flatness were reduced by 70%
with annual savings of over $300,000 on one line. Customer complaints isolated to small individual
roll occurrences. Record low Return Rate of .11%
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Overall Results PI and F.L.A.T system have now been installed on
six lines accounting for over 75% of our production capacity.
Through improvement projects we have driven down internal flatness losses by an average of 50%.
Increased production rates due to the reduction in variability.
Customer complaints and return rates at record lows.
Annual benefits in excess of $5 million
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Input Cost Reduction at Cascades
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Energy Inputs Numbers at CascadesEnergy Inputs Numbers at Cascades
Big Total: 36 MGJ - Big Cost: $500 MillionBig Total: 36 MGJ - Big Cost: $500 Million
Steam6%
Steam Residues
15%#6 Oil
6%
Wood31%
Electricity16% Natural Gas
26%
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Results from using PI
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The Bottom LineThe Bottom Line
• The PI System was deployed to monitor The PI System was deployed to monitor all inputs in real time.all inputs in real time.
• Once deployed Cascades expected to Once deployed Cascades expected to reduce input costs by 2%reduce input costs by 2%
• They achieved 3% within one year and They achieved 3% within one year and now the target is 10% within 5 yearsnow the target is 10% within 5 years
• With input costs of $500 Million per year With input costs of $500 Million per year the annual savings are enormous.the annual savings are enormous.
50© 2008 OSIsoft, Inc. – Company ConfidentialJapan Seminar 2008
Summary There are 1000’s of ways to derive value with the
PI System. As outlined earlier, results can be enhanced if you
follow the examples set by our successful customers.
Stakeholders Vision Framework Infrastructure Small projects Publicize results Enterprise Agreement
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The EndThe End