achieving excellence in refinery operations

Achieving Excellence in Refinery Operations

Business Performance Management & Intelligence (BPMAI) System

BPCL Success Story

Presentation By: Mr. M.D. Agrawal

General Manager (IS Mumbai Refinery), BPCL, India

www.bharatpetroleum.com

Achieving Breakthrough Performance with New Processes

and Technologies

July 11-12, 2013 - NOVOTALL Hotel , Hyderabad, India

I F Y O U C A N T M E A S U R E I T , Y O U C A N T M A N A G E I T

- M A N A G E M E N T G U R U P E T E R D R U C K E R

2

Drucker even went so far as to say that not only have computers failed to impart information, they have damaged it! Data clouds issues, it does not necessarily inform them. It also makes us inwardly not outwardly focused

According to Drucker, we are data literate. Few of us are information literate We need to be not inwardly focused but outwardly focused. The organization of the future is held together by information. You need to ask yourself what information do I need to do my job, from whom can I get it and in what form?

He joked that since the invention of the computer in the 1950s, businesspeople have wanted computers, they just didnt know why. To this day, he said, computers have not had the impact we thought they

would

3

Transforming Data to Decisions

Refining

13.35 MMTPA at Mumbai

9.5 MMTPA at Kochi

3 MMTPA 62.96% holding

Marketing Infrastructure

Retail Outlets 9289

Oil Installations / Depots 126

Aviation stations 31

LPG Plants 49

Pipelines (Kms) 3000

Group Share in

Refining

15 %

Group Share in

Marketing

22.49 %

Bharat Oman Refineries Ltd

Indraprastha Gas Ltd

Petronet LNG Ltd

Petronet CCK Ltd

Bharat Renewal Energy Ltd

Petronet India Ltd

Central UP Gas Ltd

Maharashtra Natural Gas Ltd

Sabarmati Gas Ltd

13837

Strong workforce

Sales Volume

31.14 MMT

Major JVs

Our Company Profile

ISO 9001, 14001, 17025 & OHSAS 18001 Certified Refinery

Fortune 500

BPCL Ranks 225

Integrated Petroleum Refining and Marketing Company.


Process Optimization

Downstream Industry Challenges

REFINERY

NEW CUSTOMER CUSTOMER

SPOT MARKET CUSTOMER

Dispatches

Customer Service

S&B Product Variability

- Inconsistent quality: by plant, by product, by shift

Tightening regulations on

petroleum product

specifications

No visibility Cant see plant wide production status

due to 10 - 200 disparate

shop floor info systems

Varying process

conditions lead to Higher energy

use

Lack of predictability

Cant see business performance to plan, and recommend new

plans to affect results

Fluctuation in Crude

Prices & also to

Maintain Margins

Optimization Group

Production Processes

Shared Information

Marketing

Shipping & Purchases.

Demand

Supply Chain

Board

Inflexible production

process contributes to

Missed

Opportunity

REFINERY REFINERY

Dynamic Market

Demand

Refinery Performance Measurement

Crude Throughput Distillate Yield Safety Gross Refinery Margin Operating cost Fuel and Loss Specific Energy Consumption Training Mandays Quality Initiatives Process improvement Six sigma

Measurement Frequency Hourly, Daily, Monthly, Quarterly & Yearly

Key Refinery Performance Measures

IT Vision for Business

IT Synergy with Business Goals , Process centric IT

Empowerment of users with IT

Knowledge based operation of all units of Business

Real time Data Availability and Performance monitoring

Commitment to Safety / Environment / Society

State of Art Process Automation Software like ERP, MES, RCM

Unified and Integrated view of Diversified processes and systems

Measurement and analysis through decision support system

Adoption of latest Technology for optimization

Practice Best Practice IT governance framework

Build In house Skills, Focus on Project Management and Project oriented Delivery

Promote Creativity and innovation

Periodic Feedback and strive for continuous improvements

LPG

BITUMEN

DIESEL

ATF

SBP

HEXANE

TOLUENE

BENZENE REFORMING

NEW

SOLVENT

UNIT

KEROSENE

GAS OIL

CRAKING

BITUMEN

BLOWING

FURNACE OIL / LSHS

C

R

U

D

E

D

I

S

T

I

L

L

A

T

I

O

N

GASOLINE

AROMATICS

FUEL GAS

CRUDE OIL

BPCL Refinery Products

BPCL Refinery Broad Process & Linkages : Landscape

Process History

(Raw, Corr

LIMS Data

Movement Data

Shipping Data

Reconciled Data

Planning Sales& Distribution Finance/Accounts

Real-Time

DBMS Process

Operations Data (Measurements, Setpoints,Status,

Calculated (KPI),etc..)

Refinery Production Planning

Refinery Scheduling

Cal.Def/ KPI Unit

Optimization Utilities

Optimization Blending

Optimization Oil Movt.

Instructions

On-line Opt. APC

On-line Opt. APC

On-line Opt. APC

Movement System

DCS

Utilities System

Blending System

Supply & Distribution

Plan Requirements

Plan

Targets

Plans

Schedules/ Tasks

Recipes Constraints Targets

Setpoints Ratios Rates

Setpoints

Yield Accounting and Gross margin

Quality Giveaway Shipments/Receipts

Material Balance

OM&S,LIMS,& Shipping Systems

Cal. Def./KPI

Schedules/Instructions

Targets/Recipes

Operating Modes

Yield / Assay Data

Refinery-Wide DBMS

Planning/Economics

Operations Monitoring

Data Reconciliation

Operations Monitoring

Regulatory Control Utility Control Blend

Control Movement Control

Instrumentation

Oil Movements

Shipments & Receipts

Lab Analysis

Months

Days

Weeks

Hours

Seconds

Minutes

Planning& Control Monitoring & Information

BPCL Refinery : Data & Processes Map

** Above Landscape does not include other processes like Safety, Security, Energy, Maintenance, Energy, HR, Advsory, Procurement, Dispatch


Production

Planner

Scheduler

Offsite

Operator Lab Technician

DCS

IP21

PIMS

Yield Accountant

Advisor

RefSked

LIMS

Engineer

AtPO /

OM

Integrated

Database

Blender

Plants equipped with DCS /Advance process control

MES integrated with SAP R/3

Process Industry Modeling System (PIMS) software for optimal crude selection and maximizing value addition

Online laboratory information process data for quick decision making

Networked Refinery

MES / Networked Refinery

Refinery Core Process

Supply , Distribution &Sale

Maintenance

Procurement

Quality

Finance

Technology

Safety

Supporting Processes Services

Admin Services

Health Services

Security & Surveilliance

Learning & Education

IT Services

HR & PR Services

Laboratory Testing

Process Based KM Map for BPCL Refinery Portal

Production / Transfer & Storage

Refinery Scheduling

Refinery Production Planning

Projects

Linkages With Business

Welfare & Community

Customer Services

Environment Control

Communication & Relationship

Functional Process Life Cycle of Refinery Systems

Value Added Systems for key Refinery functions (with SAP Connect Interfaces)

Glimpses of our Portal


AIMS

Gate Mgmt

Down- load file

Emission Monitoring

Permit System

Crude Outturn

MES App

Mass

Bal

IRIS

LIMS

Tank Dip

Shipping App

Hazardous

Daily Stmt

SAP

Quality

RCM RPC

Inventory Mgmt

APPC

MOC

Attendance System ORB

Emerging Spaghetti and silos : Need for Integration Framework and simplified approach.

Production

Supply Chain

Safety & Security

Quality

Reliability

Process Units

Energy

Plant Maintenance

CIMIO

Stock Sheet

Heterogeneous Systems leading to Refinery Automationn & Enablement

Earlier Scenario of Information System including MES

Real-Time Visibility

Data Analysis Performance Analysis

Real-Time Business Monitoring

PLANT SYSTEMS (MR/KR)

BUSINESS SYSTEMS (SAP R/3)

LIMS

IP21 / Scada / DCS

Advisor

APC

SAP-

MM,FI,CO,PM..

In-House IT

Applications

SCO

BIW

CMT

ATOMS

Finding Key Information

Disperse Systems and Information base

Business Requirement

Purpose of BPMAI Best Practices

Drivers for Change leading to Excellence

Better Service to Customers Best Practices Adoption Attaining Competitive Edge Effective Operations Reduce Maintenance Cost Plan V/s Actual Safety and Reliability Faster Response Informed Decisions Increased productivity Quality improvement Reduction in customer complaints

Drivers for Excellence

Safety & Reliability

Business Requirements & Need of BPMAI Integrated View of Refineries Business Performance

Requirement for Senior management Dashboard to monitor Refinery performance and KPIs

Need of Integration of information in Refinery Systems and Business Applications. (e.g DCS, IP21, MES, ATOMS, ADVISOR, LIMS, SAP, In-House applications etc)

Data maintained in Excel files and spread across user machines (e.g Maintenance, Safety, Utilities etc)

Multiple reporting systems for MIS reports generation and Decision making

Delay in getting consolidated data from different entities

Strong need for a tool for facilitating analysis

More time spent on searching and compiling data.

Single view to monitor and manage all critical business processes and activities.

Cross functional / department information on time for better decision making

Role Based Group of Information Viewing capabilities

19

Information Flow in Enterprise

3 Types of Processes

Framework of BPM - Merits of XHQ

Organisation Commitment

Organisational Commitment Practice of BPM requires a significant organizational commitment

Management of end-to-end business process crosses organisational boundaries

New roles and responsibilities are introduced, such as process owners, designers and architects

Individuals responsible for end-to-end process design must interact with traditional functionally based

managers

New governance structures need to be introduced which may change the way organisations make decisions and allocate resources

Without organisational commitment, the practice and benefits of BPM is unlikely to mature within an

organisation

Without supporting leadership, values, beliefs and culture, BPM is unlikely to successfully take hold

within an organisation

Mumbai Refinery 13 DOMAINS

Process Unit

Energy

Maintenance

Supply Chain Production Quality

Economics

KPI

Reliability

Utilities

Mumbai Refinery Overview

HSSE Support Services

BPCL Refinery Overview

Domains: KPI

Domain: Process Units

MR DATA BANK

SYSTEM

A generic Web based Solution.

Easy to configure and migrate Excel based file.

Unstructured data and Manual systems owned by individuals removed

Web Based Solution

In-House Developed

Key Differentiator

BPMAI SYSTEM

EXISTING SYSTEMS

Through Process Re-Engineering Single Version of Information is made available Business Processes has been streamlined and several jobs have been combined into one Checks and controls are reduced/improved Staffs are empowered with meaningful information to make proactive and re-active decisions. Around 90 different applications Configured in short span of time under MR Data Bank Unstructured data is NOW being captured in a structured format HELPS IN BETTER MONITORING of KPIs, COPs and KOPs AND DECISSION MAKING.

IP21, SAP, MES, LIMS, CMT, DCS, etc.

VSupport Applications Welcome Slip, Work Permit, IRIS, Lorry Tracking, EHMS, etc

PROCESS RE-ENGINERRING Bridges the GAP

MANUAL SYSTEMS / DATA

OWNED BY INDIVIDUALS

(Unstructured Data)

Stream Production from

Unit

Trending & Analysis

Stock &

Quality

Parameters

Quality

Measure

INTEGRATION & DATA FROM DIFFERENT SYSTEMS

Sample Results

Data from LIMS

Data from ATOMS

Configuration Data from Advisor /

Manual Entry

Data from IP21

Data from IP21, ATOMS,

LIMS

Raw Water Balance Raw Water Balance

Plan Vs Actual Plan V/s Actual

Napahtha Control

Column Pressure Monitoring

Process Units Summary

Advanced Features

Analysis Alerts

Trending Shapes Charting

Graphics Alerts

Charting Trending

Analysis Analysis Graphics Alerts /

Notification

Shapes

Daily Morning Meeting Discussion, Directors, GMs, DGMs

BPMAI System

Real-Time Visibility

Finding Key Information

Data Analysis Performance Measurement

Real-Time Business Monitoring

Real-Time Operations Intelligence

PLANT SYSTEMS

BUSINESS SYSTEMS

Improved Decision-Making

Correlation & Visibility of Real-Time Information

Integrated System

(BPMAI)

Business Performance Management

Business Performance Management and Intelligence System

An iBPMS Has 10 CoreGsrtner Components 45 BPCL BPMAI Solution : Bench mark with Gartners Framework for iBPMS:

A process orchestration engine to drive the progression of work in structured and unstructured processes or cases A model-driven composition environment for designing processes and their supporting activities and process artifacts Content interaction management to support the progression of work, especially cases, based on changes in the content itself (such as documents, images and audio) Human interaction management to enable people to naturally interact with the processes they are involved in Connectivity to link processes to the resources they control, such as people, systems, data, event streams, goals and key performance indicators (KPIs) Active analytics (sometimes called continuous intelligence) for monitoring activity progress, and analyzing activities and changes in and around processes On-demand analytics to provide decision support or decision automation using predictive analytics or optimization technology Business rule management to guide and implement process agility and ensure compliance Management and administration to monitor and adjust the technical aspects of the iBPMS A process component registry/repository for process component leverage and reuse

Benefits achieved

In Morning Operations meeting BPMAI system is used for discussions and

taking actions

Standardisation and streamlining of Business Processes

Utilities and Energy Consumption pattern is being effectively monitored and

controlled (Steam consumption, Fuel Gas Consumption etc)

Data Consistency is maintained and inaccuracy noticed is being sorted out

Unstructured data is now being captured in a structured format

Better monitoring of business KPIs, COPs and KOPs and decision making.

Reduction in No. of Issues / Complaints

Enables proper accounting (i.e Raw Water Consumption, Fuel Gas

accounting etc)

Key Benefits

Challenges In Implementation

Key Challenges

Integration with SAP R/3 System to populate data Non-availablity of direct connectivity Multiple ABAB developments to be done at SAP R/3 Required data may not be available easily from SAP R/3

Bring into a central system all data maintained in Excel, Word, e-mails etc

Clarity on Business logic

Changes and more enhancements after seeing the output on the screen

Proper support from vendor for development and implementation

Susataince and continuos usage of the system by end-user

Parallel system running and users are not comfort with new system

Nasscom IT User Awards 2012

Mr. MD Agrawal General Manager (IS), receiving the award from Shri. Sachin Pilot, Honorable Minister of state (Communication and IT)

along with his team Mr. PLN Murthy and Mr. D.Shrrikumar.

WINNER AWARD FOR PROJECT BPMAI IMPLEMENTATION Energy - Oil & Gas Sector

Theme IT as a Strategic lever enabling business growth and customer service.

This award creates a

Catalytic impact by recognizing the leaders in IT adoption and acknowledges organizations which

have successfully leveraged Information Technology

To deliver significant business value to their customers, stakeholders, and

Have demonstrated the transformational impact of IT in achieving excellence in their business operations.

Criteria and basis for the Award Selection:

Business goals achieved/ Business impact by dint of IT implementation

Innovation and Thought Leadership Scale of Project and impact Strategic Approach to IT Implementation IT Governance

MUMBAI REFINERY

Future Integrated Scenario of Refineries - BPMAI

Integrated BPMAI Common System

KOCHI REFINERY

NRL REFINERY

BORL REFINERY

Vision of BPMAI System

Senior Management

SCO Users International

Trade End Users

MMBPL Pipeline

Future Integrated Architecture for BPCL Group Of Companies (BPMAI)

CDC

MES

SAP

IP21

LIMS Applications

MR

Corporate

CDC

MES

SAP

IP21

LIMS Applications

KR

CDC

MES

SAP

IP21

LIMS Applications

NRL

CDC

MES

SAP

IP21

LIMS Applications

BORL

Centralized Information and Decision making Server (BPMAI)

Contain Common Information pertaining to MR / KR/ NRL / BORL

Senior Management

SCO Users International

Trade End Users

Information Flow

Integration of BPMAI System

Are we Ready for Change?

- Charles Darwin

Mr. M. D. Agrawal, General Manager, IT Systems, Refinery,

Bharat Petroleum Corporation Limited, Mumbai, India [email protected], [email protected]

Tel: +91 22 25548823 , +91 22 25533517 Mob: +91 98205 36302

Web Site: www.bharatpetroleum.com

T H A N K Y O U

Agenda

achieving excellence in refinery operations

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