Digital Value Chain Optimization

© 2019 AVEVA Group plc and its subsidiaries. All rights reserved.

Digital Value Chain Optimization

TS ParkVice President,Global Head of Operation Excellence Business

17th of July, 2019 V1.0

Global Refinery and Petrochemical Conference, Delhi, India

For Internal Use Only

Oil and Gas Downstream Industry Current ScenarioSignificant changes on workplace, workforce and market imperatives


Business Imperatives

Better Visibility, Rapid Response

Improved return on capital

Process, OperationalEfficiencies & Cost Out

Improve Reliability

New Business Models

Value Chain Optimization

Market Challenges

Less predictable marketOil price more volatile, Balance between Nuclear, Conventional, Renewables changes rapidly

ComplexityMore JVs, new processes to monetize gas, Increasing regulation, integrationwith petrochemical processes

Tightened MarginsReduced oil and product prices, smaller “spread” between supply and output

WorkforceGenerational Changes; Knowledge Management

Socio-Political pressureCarbon neutrality, regulations, ….

Cloud

Industrial IoT

Digital Twin

Big Data and Analytics

Cyber Security

Technology Trends

Value Chain Optimization Workflow

Production Planning

Corporate Business Plans

Supply and Distribution

Planning

Operations Scheduling

Strategic Plan

Fiscal Targets

Feedstock, Inventory, Production

Operation Plan

Cu

rren

t Ti

me

1 to 15 days 1 to 3 months 1 year 2 to 10 years

Investment Planning

Budget Planning

Feedstock Management

Quality Information

Operation Intelligence

Planning Model Tracking/Update

Operation Targets

Lab Analysis

Actual

Digital Twin

Operation Optimisation

Offsite Management

Energy Management

Prescriptive Performance Management

(Plan vs. Actual)

Production Accounting

Results

Results

Logistics

Import, Export

Monitoring & Control

Results

Downstream Manager

How can I challenge the plan, the schedule and operations? What visibility I have about

their constraints?

Challenges diversity across the organization


Trading Planning Scheduling Operations Distribution

Crude Trader Logistics Planner

Processing experience: how was refinery performance for a particular crude?

Operational status: can I gain benefits of on a crude or distressed cargo?

Maintenance: Impact in refinery profile?

Regulations: Impact on crude requirement?

Refinery Scheduler

Feasibility: Is my schedule based on accurate crude and operation info?

Inventory: Are tanks available to receive next cargo?

Accuracy: are there margin leaks in plan v/s schedule v/s actual?

Demand: what flexibility I have to fulfil product demand?

Market changes: What impact will a change in supply decisions have to the production economics?

Production Planner Operations Manager

Real capability: is my planning model accurate?

Profitability: Any constrains impacting best solution? Robust plan?

Operation: operating KPI’s aligned with production planning objectives?

Safety: is my plant safe and stable?

Workforce: what tools are available for better real time decision making? Optimisation: can I meet or improve planned target?

Current Value Chain Management


Point to Point System Flow

Reactor Modelling Tool

Offsites Tool

Planning Tool Scheduling Tool Operations Tool(s)Trader ToolProduction Accounting

Tool


Tool

Real Time Optimisation

Tool

Management Reporting Tool

Multi SiteNetworking Tool

Utilities Optimisation

Tool

Manual data transfer or custom codes & support

Low Transparency

Low Consistency

High Tool Dependency

Lack of Agility

Low Accuracy

High MaintenanceGaps & Lost

Opportunities

Value Chain Optimisation Challenge

• Low Transparency: Misalignment between various stakeholders

• Low Consistency: Different view of the same asset

• Low Agility: Delay in responding to changes to external factors

• Low Accuracy: Inaccurate asset representation

• High Tool Dependency: Required expertise in different toolsets

• High Maintenance: Manual communication between people & tools

Custom modifications

Value Leaks & Lost Opportunities

Manual data transferCustomised support

code/tools

Trading Planning Scheduling Operations Distribution

Unified Supply Chain

Performance Visualisation

Operations Optimisation



AVEVA’s innovative solution for a dynamic unified business

Reactor Modelling

Tool

Offsites ToolPlanning Tool

Scheduling Tool

Operations Tool(s)Trader Tool

Production Accounting Tool


Tool

Real Time Optimisation

Tool

Management Reporting Tool

Multi SiteNetworking Tool

Utilities Optimisation

Tool

Break down silos,

create collaboration


Performance Visualization

Operations Optimization

Value Chain Optimization


Single and enterprise

application across all supply

chain activities that creates

collaboration and knowledge

sharing resulting in more

robust decision making

Improvement of performance

by order, movement, &

inventory management, blend

optimization, online control and

yield accounting

Digital twin for process and

utilities optimization based on

real-time economic & rigorous

process modeling increasing

profitability


Performance Visualization

Operations Optimization




Single and enterprise

application across all supply

chain activities that creates

collaboration and knowledge

sharing resulting in more

robust decision making

Improvement of performance

by order, movement, &

inventory management, blend

optimization, online control and

yield accounting

Digital twin for process and

utilities optimization based on

real-time economic & rigorous

process modeling increasing

profitability

The Industry's only unified by design supply chain enterprise application.

Unified solution for order & movement

management and blending optimization

De-facto standard technology in refining for

real-time optimization (RTO)

Reporting & visualization & analytics build-in capabilities for Performance Visualization

Unique solution key to your Digital Transformation strategy

• Comprehensive: enterprise solution across all layers of the value chain breaking down business silos and creating collaboration

• Flexible: allows businesses to start at any point in their own transformation journey providing market leading solutions for each specific component of the value chain

• Connected: opens up new possibilities and workflows to drive unique business process improvement.

• Modern: leveraging latest technologies for best user experience, agile performance and focus on reducing cost of ownership

• Transparent: visualisation and advanced analytics for improved management decision making across the value chain


DIGITAL VALUE CHAIN OPTIMIZATION SOLUTIONS

Plan

Network

Schedule

Assay

Reactor models

Tank Information System

Production Accounting

Process optimisation

Blend Optimisation

Performance Management

Offsite Movement Mgt.


Performance Visualisation

Operations Optimisation

Utility optimisation


Enterprise Supply Chain

Knowledge Management

Common supply chain data and

communicate decisions and

experience across the enterprise


and TradingManagement & sharing of rich

and complete crude assay data

DistributionSupply/demand balance and inventory

management across global networks

SchedulingDefinition of schedules based on

plans and latest business

knowledge

Planning

Robust decision making for

planning with rich solution insight

Transform intentions into

effective operational

instructions

Operations

Execution

3rd Party

Integration

Modern, scalable, secure

mechanisms for transferring

data between ERPs etc.Unified Supply Chain Optimization

• Connection to Offsites (Execution in O&G)

• Connection to ROMeo for model mgmt.

• Connection with Ampla for MMM

Digital Twin Functions

Data from Plant

New Controller OptimumSetpoints

CV,MV Set points

PLANTSteady State

DetectionGross Error

Model Update6. OptimizationAdvanced Process

Control

DCS Data Reconciliation

3. Performance

Monitoring

4. Engineering

Study

5. APC Gain LP

Planning Update

2. Material / Energy

1. Faulty Instrument

$$$

BenefitsFunctions


Auto-Tuning, Real Time, Rigorous

Digital Twin Vision


Digital Transformation with Digital Twin


Business Function Digital Twin Function Benefit

Instrumentation Team Gross Error Detection to identify faulty instrumentation. Improve instrumentation accuracy

Energy Management TeamThermodynamic based rigours Enthalpy calculation and balancing of each process equipment and real time energy management.

Energy saving

Process Performance Management Team

Real Time material balance calculation and monitoring for plant capacity and production yield

Improve production yield

Maintenance Team

Equipment performance data are calculated and monitored real time basis such as HX. Fouling factor, Hx. Duty, Try efficiency, Try flooding factor, Pump, Compressor efficiency, Catalyst Deactivation, etc.

Improve production efficiencyImprove reliabilityData input to big data analysis solution such as predictive maintenance like PRiSM which now uses only measured information from field like Temperature, Pressure and Flow.

Technical Service Team Auto model tuning to match to actual operation – Model updateRemove simulation model tuning efforts leading to conduct more engineering case study and trouble shooting study.

Control Team APC Gain GenerationImprove the accuracy of current APC model and conduct APC maintenance at right time to maximize APC benefits.

Production Planning Team LP Shift vector GenerationImprove LP model accuracy to achieve huge potential benefits

Operation Real Time OptimizationMaximize operation profit based on current operation constraints

Benefits break-down

Pro

cess

Per

form

ance

A

PC

/RTO

$300M/year

$250M/year

$200M/year

$100M/year

$50M/year

Ble

nd

ing

/Oil

Mo

vem

en

ts

Sup

ply

Ch

ain

Ener

gy M

anag

eme

nt

Maximum

Minimum

Op

erat

ion

s M

anag

eme

nt

$0M/year

Pro

du

ctio

n M

anag

eme

nt

Potential benefits based on typical refinery performance300,000 bpd, $50/bbl

$ Saved

$150M/year

• Supply Chain:

• Crude Purchases: Reduced cost of purchases, reduced maintenance

• Planning, Scheduling and Logistics: Increased throughput, increased yield

• Process Performance: Longer equipment life, increased availability, increased quality, increased yields

• Blending and Oil Movements: Reduced giveaway, no rework, minimum inventory, minimum downgrades, higher fuels agility

• Energy Management: Reduced energy conversion cost, reduced energy consumption cost, reduced cost of crude for energy

• Production Management: Reduced accounting losses, reduced inventory, reduced hydrogen and steam consumption, increased throughput

• Operations Management: Reduced unplanned shutdowns, increased yield, reduced hydrogen and steam consumption, increased throughput

• Enterprise Collaboration: Mobile workflows & enterprise collaboration across tool boundaries

Effective economic optimization of hydrocarbon value chain can boost

profitability by

$50 to 300 million per year for a typical

oil refinery

linkedin.com/company/aveva

@avevagroup

ABOUT AVEVA

AVEVA is a global leader in engineering and industrial software driving digital transformation across the entire asset and operational life cycle of capital-intensive industries.

The company’s engineering, planning and operations, asset performance, and monitoring and control solutions deliver proven results to over 16,000 customers across the globe. Its customers are supported by the largest industrial software ecosystem, including 4,200 partners and 5,700 certified developers. AVEVA is headquartered in Cambridge, UK, with over 4,400 employees at 80 locations in over 40 countries.

aveva.com


Digital Value Chain Optimization

Documents

Transcript of Digital Value Chain Optimization