Head of Manufacturing Strategy Budapest, June 18, 2014

Holistic Project Management

How to add value by continuous improvement along the process chain Dr. Boris E. Bosch Head of Manufacturing Strategy Budapest, June 18, 2014

Holistic project management – Value addition - B. Bosch 2

Saltigo – part of Lanxess Advanced Intermediates

Development and production of numerous products that are used as intermediates or active ingredients for crop protection, pharmaceuticals and other high quality fine and specialty chemicals.

Corresponding supply of services.


AGENDA Saltigo‘s Approach on Sustainable Processes

Case studies:

Recycling of Acetonitrile from mother liquor

Save Energy by Increasing Productivity

How to remove salt from an aqueous value stream? Improve materials and waste management

Doubling capacity without interrupting deliveries


Saltigo – a global leader in custom manufacturing

Saltigo… … supports customers throughout the

entire life cycle of their products … supplies premium chemicals and

services … protects intellectual property … targets cost driver optimization via

continuous improvement of our processes and assets

… is devoted to the principles of sustainable development

As a Company of the LANXESS Group, Saltigo has the financial backing and stability for long-term partnerships


Unique technology base to support customer needs along the project lifecycle

Technology base and production expertise are key assets

More than 70 years of experience in process development and scale-up Proven track record Innovative, cost-efficient

solutions for optimum approach Broad range of established

technologies

Raw material Advanced intermediate

Active ingredient Formulation Customer

Idea Market Process Development Pilotation Lab Production

Extensive experience in advanced technologies for complex synthesis, solutions for pilot and large scale production Dedicated,

specialized and multi-purpose plants on one site

Multi-step syntheses combining a broad range of technological capacities for production in excess of 1,000 tons per annum Proactive innovation,

process optimization and continuous improvements

Fully equipped technical laboratories for tailor-made syntheses of fine chemicals and custom processing


Project management - 4 phase model

Inquiry Stage Project evaluation

1 Development Stage Process development

2 Initial Production

Facility set-up / Pilotation

3 Regular Production

Continuous improvement / Innovation

4

Project Team A project team is assigned which is responsible for the

sustainable development of the project over its total life cycle

Inquiry Team Interdisciplinary team

of Experts

Steering Committee Interdisciplinary team of senior executives responsible for

multi-project management, ressource allocation, prioritization, portfolio development


Directions of development within projects

Often limited input from customers or literature on handling of material flow recycling of solvents catalyst cost/recyclability waste treatment/avoidance options alternative processes Energy efficiency of a process

The „main process“ towards the target molecule is

generally developed reasonably well (technical package)

These areas are essential part of a standard evaluation during inquiry assessment phase

2/3 of process development efforts at Saltigo are directed towards these topics


Targeting cost drivers

Already in the bidding process it is essential to identify „cost drivers“ and to envision optimized processes range between 30 and 250 €/t ⇒ improvement of recycling rate by 10% can save ~50 T€ in

100 t campaign in solvent cost spending range between 200 and 800 €/t => improvement of recycling rate by 10% can save ~20 T€ in 100 t campaign in avoided incineration cost cost increases by 70-100 % since 2009 => 20 % productivity improvement can reduce energy cost by ~30 T€

Saltigo strives to maintain cost leadership in terms of process efficiency by continuous improvement of our chemical processes

Solvent costs

Incineration costs

Energy costs


Questioning technical process information

Choice of Solvent

Availability and cost of reagents

Reaction Temperature

Phase separation strategy

Process Safety

evaluation Recycling process

Catalyst Quality

determining operation

Reaction time

Choice of acids and

bases Waste ….


Creating the right chemistry in our plants 2500 m3 stirred reactor volume

Phosgenation Plant Multi-purpose plant units 8-20 m3

Chlorination Plant Cl2, PCl3, POCl3 GLS units 12-25 m3

Distillation + packaging plant 25-120 plates units 12-40 m3

High-pressure hydrogenation 3 lines Hydrogenation + Alkylation Units 3-5 m3, conti, batch Reactions up to 200 bars, 300 °C

The Multi-Purpose Plant agro & fine chemicals units 8-16 m3

Multi-purpose herbicide plant High potency herbicides units 8-16 m3

Multi-purpose fungicide plant Multi-step actives synthesis units 6-16 m3

ZeTO 1: Pilot to Production Flexible plant concept Units 0,1 – 6 m3

ZeTO 2: Synthesis Competence From Grignard to Fluorination Units 4–12 m3

cGMP-plant for pharma actives modules 2,5-8 m3

Plan

t 1

Plan

t 2

Plan

t 4

Plan

t 3

Plan

t 5


Value addition

Effecting Total Cost of Goods

raws PLANT1 PLANT2

PLANT3

Throughput optimization Waste management Solvent recycling Logistics Idle time optimization Catalyst efficiency Filtration + Drying …..

product

Exclusive customer

Network of Suppliers + Outsourcing partners

OPTIMIZED PRODUCTION


Value addition – five case studies

Technology and performance driven process solutions

3 Film dryer

2 Process inten-

sification

1 Pressure swing

distillation

4 Central work-up

unit

5 Capacity increase

in existing asset base


Case study 1 – Recycling of Acetonitrile

Handling of mother liquor Limited availability of acid resitant column at source of ACN mother liquor Transport issue (corrosive material)

Selection of distillation partner

Selection of „azeo breaking“ process

Short-term solution Addition of CaCl2 (manual operation, large brine quantities to be handled)

Short term solution Neutralization with caustic - aqueous phase contains high level of AOX

Mid term solution „acidic“ transport in 1 m3 containers

External partner would have issues with residual waste streams

In-house distillation in SGO plant network ⇒ Azeotropic distillation of acidic ML in Saltigo chlorination plant !

Sustainable long term solution Investment into pressure swing distillation

>1000 t/a of 50% acidic aqueous acetonitrile mother liquor to be efficiently recyled


Case study 2 - Save Energy by Increasing Productivity

R1 Cl

OH

Cl R1

O R

R1

O

OH CuCl, additives

180 °C NaOH

target product major by-product major by-product

oligomers

excess chloroarene (phenole concentration) reaction conditions additives and catalyst

reactant concentration (= excess chlorobenzene) filtration efficiency water content of rxt mixture

A copper catalyzed Ullmann reaction is conducted on >1000 t/a scale

Productivity had to be increased by factor 2, cost position improved

Selectivity and yield influenced by

Productivity influenced by



1+1 h

Filling reactants, then heating

1 h

Filling preheated reactants

10+2 h

Stripping, reaction + post reaction time

7 h

Batch distillation to recycle excess chloroarene

2 h

cooling

1 h

Transfer to filter

feed vessel

Stripping, reaction + post reaction time

1 h

Hot transfer to distillation vessel

2,5 h

Vacuum cooling distillation (10 m3/h)

6 h

Direct transfer to filter

6+0,75 h Cat. addition

24 h

<9 h <9 h Filter feed vessel upgraded to vacuum cooling vessel

Original process

Optimized process (approx. 100 process modifications…)



Conversion increased from 95 to >99%, isolated yield increase by 4,3% Cycle time reduced from 24 h to 9 h => 2,5 fold productivity increase

Reduction of incineration residues by 10 % Reduced energy consumption by combination of distillation and cooling Reduced steam and coolant consumption by allowing hot transfer

(avoid re-heating) Reduced steam consumption by avoiding to strip the waste water streams

(complete phenole consumption makes WW extraction unnecessary) Significant specific energy savings by > doubled throughput

R1 Cl

OH

ClR1

O R

R1

O

OH

CuCl, additives

NaOH

target product major by-product major by-product

oligomers

Effects on productivity

Effects on variable cost


Case study 3 – How to remove salt from an aqueous value stream ?

Type of reaction

Chlorine- Amine

exchange

Reactant

Organic water-soluble functionalized

amine used in excess

Neutralization with caustic

By-Product

Amine-Hydrochloride Task1

Separation of water-soluble amine from

brine solution

Boil down to

„dryness“

Strategy1

Strategy2

Separate amine from

water

Economic Requirement: Recycling of precious amine

Challenge:

Realization of Task1 lab-type strategy on >1000 t scale

entrainer distillation

Task2


Case study 3 – How to remove salt ?

Distillation of aqueous brine solution of amine on film

dryer to dryness

Sodium chloride separated and continuously

discharged via rotary valve

Drying via alcoholic entrainer by distillation

Water/amine distillate is further processed

Installation of a vertical film dryer

M

SALT M

entrainer

Aqueous distillate

Pure amine

Amine/ brine

mixture


Case study 4 - Improved materials and waste management - Logistics Recycling of various solvent streams at Leverkusen site contributes to significant reduction of environmental impact of our production

Distillation plant (HDK) plays a key role with regard to waste management Various material streams can be handled

at the same time in the plant Solvent recovery allows reuse of solvent

and reduces the amount of organic waste which requires incineration Distillation of aqueous sewage streams

allows to increase product yield and facilitates disposal via the waste water treatment plant (WWTP)

P1 P3

P4 P5

Solvent B

Solvent A Effluent

Effluent

Incineration

WWTP

HDK


short- and mid-term capacity measures

Intensification of the CIP process

Capacity/ Bottleneck analysis

Increase / Stabilize performance (logistics)

Product delivery to customer

Case study 5 - Capacity Increase


Modular reactor design Adjust capacity to

volume requirements

Doubling capacity without interrupting deliveries Bottleneck a) reaction throughput and b) solvent distillation

Solvent distillation

Reaction

Product distillation

Improvement of reaction selectivity (less by-product = less waste)

Increase of concentration +10%, compromise on yield (temporarily) -3%

Increase of column load – improvement of separation

Investment in additional distillation equipment

Flexibilisation of the use of distillation equipment

Upgrade existing reactor (short-term)

Installation of additional reactor (lead-time)

Solvent (+ product) distillation

Reaction

Product distillation

Before Investment After Investment


Simultaneous measures require holistic PM within interdisciplinary teams

Engineering

Purchasing

Assembly Commissio-ning

Post-invest Debottlenecking

+20%

+ 4th reactor CIP

Process optimization laboratory + plant

CIP: Elimination of insufficiencies

Continuous optimisation of logistics

6 weeks

+40%

Process optimisation Distillation

6 months

+120%

Online Analytics Improved yield Change of recipe Optimisation of logistics

15 months

+75%

+ 5th Reactor + Distillation equipment + New feed vessels

12 months

Investment project Debottlenecking project


Summary - the Saltigo advantage

All parts of the Saltigo organisation concentrated at one-site

9 manufacturing plants with a mix of technological specialities and multi-purpose equipment

phosgenation plant in near vicinity (25 km)

Production, Project management, Process development, Analytics, Marketing, Sourcing, Regulatory affairs…

Holistic interaction of organisation throughout entire project life-cycle

Customer benefits:

Reliable response times to customer requests

Short time-to market for individual projects

Flexible adaption to customer project needs

Effective continuous improvement processes

Our customers benefit during entire project life-cycle from our single-site CMO organization. Key success factors are integrated production planning and holistic project management within Saltigo


Continuous improvement process

Custom solutions tailored

to customer requirements

…focused on efficiency

…”greener” custom manufacturing

…improved sustainability

Head of Manufacturing Strategy Budapest, June 18, 2014

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Transcript of Head of Manufacturing Strategy Budapest, June 18, 2014