leveraging benchmarking for continuous …
TRANSCRIPT
ABU DHABI NATIONAL OIL COMPANYADNOC REFINING
LEVERAGING BENCHMARKING FOR
CONTINUOUS IMPROVEMENT TOWARDS
OPERATIONAL EXCELLENCE
SPEAKER: DR. SRINIVAS BADITHELA
Objective
To carry Baseline Assessment of Organizational Performance, leveraging the Benchmarking in a comparative
framework and identify the Areas of Improvement towards Operational Excellence
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LEVERAGING BENCHMARKING FOR CONTINUOUS
IMPROVEMENT TOWARDS OPERATIONAL EXCELLENCE
Contents
▪ Introduction and Overview of ADNOC Refining
▪ Operational Excellence at ADNOC Refining
▪ Benchmarking of Organizational Performance
▪ Benchmarking and Improvement - Key Stages
▪ ADNOC Refining Benchmarking Efforts
◼ Maintenance
◼ Asset Integrity
◼ Operations Integrity
▪ Benchmarking Assessment & Key Benefits
▪ Achievements
▪ Conclusions
•LPG / Naphtha / Gasoline / Gasoil / Jet Fuel / Fuel Oil/Polymer Grade Propylene, Group II & III Base Oils, Carbon Black, Anode Coke
•HSK, HCK, RFCC, BOR, Carbon Black & Delayed Coker, OCU, PRU
•902,000 BPD
•85000 BPD Abu Dhabi Refinery
•817000 BPD Ruwais Refinery
Refining Capacity
Configuration
Current Product Slate
Expanding the Product
Markets
ADNOC Refining
ADNOC Group
Company
Operations
Operating in the Emirates ofAbu Dhabi in U.A.E.
Business Line
Crude Oil and Condensate
Refining
ADNOC
Group
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ADNOC
Vision
Harness Energy Resources in the Services of Abu Dhabi
ADNOC Refining Expansion
•Started in 2009 to support National growth
•ADNOC Refining realized strengthening of operations to optimally utilize doubling of refining capacity
•To prepare employees to next level of challenge
Key Aspects
•To be highly competitive
•Realization of cyclic nature of oil market
•Growth of refining industry in region and worldwide
•Strengthen management and production processes
Why
Operational
Excellence
OpEx Key Elements : Team Effort, Values, Optimization, Effectiveness,
Superior Performance Objectives /Targets, Consistent Results
OpEx - Continuous
Improvement
OpEx Objective : Achieve Excellence in Organizational Performance leading to Superior Business Results
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ADNOC REFINING OPEX EFFORTS AND BENCH MARKING WITH PACE SETTER COMPANIES
Key Features
▪ Corporate Wide Operational Excellence Assessment
▪ Carried out in close coordination, involvement of External Professional
Consultants
▪ Rigorous Assessment of Operational Facilities /key corporate functions
▪ Benchmarked with Best Practices of Pace Setter Refineries
▪ Identified the Areas of Improvements
▪ Developed an Organizational OpEx Model and Rolled out for
Implementation
▪ 6 Systems
▪ 23 Processes
▪ 102 Best Practices
Comprehensive Assessment of Operations & System Definition
ADNOC Refining
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ADNOC REFINING OPERATIONAL EXCELLENCE MODEL
1. Strategy Process
2. Leadership Process
3. Management Process
4. Communication Process
Production Optimization
System
Reliability & Maintenance
System
Human Performance
System
Loss Prevention &
Control System
Production Information
Control System
Leadership & Management
System
• Practices Benchmarked by interviewing staff most close to its operation
• Practice Benchmarks rolled up to calculate Process and System Rating
• Practices scaled on 1 to 5, 5 being Excellent performance
• Each Practice explained for Gaps and potential
High level Remedial Actions
[4 Processes
17 Practices][3 Processes
17Practices][5 Processes
19 Practices][4 Processes
16 Practices][3 Processes
15 Practices]
[4 Processes
18 Practices]
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ADNOC REFINING OPEX STATUS REVIEW
1. Production Planning Process
2. Scheduling Process
3. Production Plan Management
4. Production Improvement Process
Leadership and
Management System
Reliability & Maintenance
System
Human Performance
System
Loss Prevention &
Control System
Production Information
Control System
Production Optimization
System
[4 Processes
18 Practices]
[3 Processes17Practices]
[5 Processes
19 Practices][4 Processes16 Practices]
[3 Processes
15 Practices]
[4 Processes
17 Practices]
Key Features
▪ Robust and Effective Supply Planning▪ Regular Back-casting at Corporate Level▪ Identification of Lost Opportunities & Improvement ▪ Identification, Implementation and Management of
Economic Margin Improvement OpportunitiesAD
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ADNOC REFINING OPEX STATUS REVIEW
1. Maintenance Management
2. Strategic Asset Management
3. Maintenance Work Process
Production Optimization
System
Leadership & Management
System
Human Performance
System
Loss Prevention & Control
System
Production Information
Control System
[4 Processes
17 Practices]
[4 Processes
18Practices]
[5 Processes
19 Practices][4 Processes
16 Practices][3 Processes
15 Practices]
Key Features
• Advanced Computerized Maintenance Management
• Ware house Management and Stock Optimization
• In-house Expert groups for specialized areas
• Work Quality Assurance through CBT
• Turn Around Optimization
• Maintenance Efficiency Improvement
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Reliability & Maintenance
System [3 Processes
17 Practices]
ADNOC REFINING OPEX STATUS REVIEW
1. Job Design Process
2. Staffing Process
3. Training and Development
4. Performance Management
5. Shift Team Performance Support
Leadership & Management
System
Production Optimization
System
Reliability & Maintenance
System
Loss Prevention &
Control System
Production Information
Control System
[4 Processes
18 Practices]
[4 Processes
17Practices]
[3 Processes
17 Practices] [4 Processes
16 Practices]
[3 Processes
15 Practices]
Key Features
▪ World Class Candidate Selection and Recruitment
Processes
▪ World class practices for the Training & Skill
Development Infrastructure
▪ Job Profiles Development, Effective Performance
Monitoring and Standardization
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ADNOC REFINING OPEX STATUS REVIEW
Human Performance
System
[5 Processes
19 Practices]
1. Personal Safety Process
2. Employee Health Process
3. Environmental Process
4. Process Safety Process
Leadership &
Management System
Production Optimization
System
Reliability & Maintenance
System
Human Performance
System
Production Information
Control System
[4 Processes
18 Practices]
[4 Processes
17Practices]
[3 Processes
17 Practices]
[5 Processes
19 Practices]
[3 Processes
15 Practices]
Key Features
▪ A standard and world class Health System Management
▪ Ensures Job Ergonomics and Work Place Compliance
▪ Ensures environmental compliance, Emission control and minimizes Material Loss
▪ Process Safety Function at all sites
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ADNOC REFINING OPEX STATUS REVIEW
Loss Prevention &
Control System
[4 Processes
16 Practices]
1. Process Control Process
2. Information Management
3. Operating Procedures Process
Production Optimization
System
Reliability & Maintenance
System
Human Performance
System
Leadership & Management
System
Loss Prevention &
Control System
Production Information &
Control System
[4 Processes
17 Practices][Processes
17Practices][5 Processes
19 Practices]
[4 Processes
18 Practices][4 Processes
16 Practices]
[3 Processes
15 Practices]
Key Features
▪ Regulatory and Advance Control at Various Sites
▪ Implementation of Alarm Management System
▪ Information Management Systems
▪ Deployment of Process Models and Production
Accounting System
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ADNOC REFINING OPEX STATUS REVIEW
Key Features
▪ A Corporate Level Structured
Framework
▪ Top Executive Management Driven
Implementation
▪ Defined Focus Areas with dedicated
teams
▪ Ownership of the Initiatives by Higher
Management (Sponsors &
Champions)
▪ Company wide coverage for
Operational Excellence
Implementation
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ADNOC REFINING OPEX IMPLEMENTATION FRAMEWORK
LEVEL – I (Basic)
LEVEL – II(Enhanced)
Operational Performance KPIs, Periodic Monitoring &
Actions for Improvement &Benefit Tracking
Practices Enhancement /
Systems Enhancement /Technology Enhancement
OpEx Focus Areas / Development & Implementation
Performance Monitoring /
Performance Excellence
Organizational Entities
Operating Facilities Corporate Facilities
P
P
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Total : 5 Operational Facilities; 30+ Functional Divisions
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ADNOC REFINING OPERATIONAL EXCELLENCE IMPLEMENTATION
BATCH I Focus Area
Training & Competency Development (5 Nos.)
CO2 Management & Trading
Process Modeling & LP Modeling
Process Alarm Management
Process Technical Information
Procedure Management & Documentation
Opportunity Management
Energy Management
Material & Warehousing
Work Quality Assurance
BATCH II Focus Area
Work Process Standardization
Plant Operating Vision, Operating Philosophy & Daily Plant Operation
Leadership Team Effectiveness
BATCH II Focus Areas (..contd.)
Bi-directional Management
Establishing & Compelling Reasons for Change and Managing Organizational Change
Tactical Plan Management
BATCH III Focus Areas
Product Optimization System
Production Information and Control System
HSE & Process Safety System–Material Loss
OpEx Strategic Initiatives
Catalyst Management System
Batch IV Focus Areas
Turn Around Optimization
Maintenance Efficiency Improvement
Capacity Optimization
Products Yield Optimization
Chemicals ConsumptionOptimization
TDMS Upgrade & e-Doc Integration
Real-time Decision Systems
Blending Optimization
Process Models Utilization
On-going Focus Areas New Focus Areas Strategic Initiative
Support Functions Optimization
Completed Focus Areas
Integrity Improvement
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ADNOC REFINING OPEX EFFORTS & FOCUS AREAS
Key Accomplishments - 2017
▪ Focus Areas were classified into four batches :
Batch-I : 13 /Batch-II : 8/ Batch – III : 3 / Batch-IV:
9 ; Batch-V: 2
▪ A Total of 19 Focus Areas have been completed
▪ 16 Focus Area Activities are in Progress (GREEN
& Light Blue)
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ADNOC REFINING OPEX PROGRAM –KEY ACCOMPLISHMENTS
Maintenance & Reliability Improvement
▪ Created of specialized maintenance group for Turbo Machinery
▪ Regular Progress Monitoring of 14 Maintenance KPIs / ensuring enhanced focus for HSECES ;
▪ Implemented periodic Bench Marking through expert agencies / ADNOC OE Coordinated Benchmarking Assessment
▪ Action Plan Implementation /Progress Monitoring through Dedicated Teams
Training and Competency Development
▪ E-Learning System in identified areas
▪ Specific and Tailored programs for Leadership Development
Opportunity Management and Optimization
▪ Implemented and reviewed the opportunity trackers at all sites
▪ Implemented opportunity management Business Processes at all sites
▪ Implemented in-house profit improvement program
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ADNOC REFINING OPEX PROGRAM –KEY ACCOMPLISHMENTS
Process Models & Production Models Development / Implementation
▪ Implemented LP models for all the facilities and integrated model for Planning Optimization (Monthly Rolling Plan; Annual Business Plans)
▪ Implemented periodic back-casting ; Business processes in to regular practice
▪ Development of rigorous process models for key plants of operating facilities (ADRD, RRE, RRW) was accomplished.
Alarms Management
▪ Identified alarm monitoring/rationalization teams at each of the facility
▪ Implemented advanced AMS at some of the facilities (SCD, RRW) on trial basis ;
Production Information & Control
▪ Advanced process data systems implementation; APC implementation was carried out on identified key plants at various sites (ADR, RRE)
▪ Yield Accounting Advanced Applications implementation was accomplished.
▪ Enhanced Digital infrastructure through Applications Integration (RIS), a Corporate Level Project.
Phase-I
Phase-II
Phase-III
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ADNOC REFINING OPEX EFFORTS IN CATALYST MANAGEMENT
Key Features
▪ Catalyst Technology Developments, Market
dynamics and Business requirements advocated an
opportunity for Catalyst Optimization
▪ CATMS Development – ADNOC Refining’s strategic
initiative and phased approach was undertaken,
Overall project spread into 3 Phases
▪ Bench marked the practices in every phase with
ADNOC Group companies /International Premier
Companies
▪ A Collaborative Corporate Level Team Effort with all
relevant groups involvement
▪ A total of 85 Best Practices were identified for Phase-
I & Phase-II ; Developed ADNOC Refining Catalyst
Management System; A Robust World Class Catalyst
Management System for ADNOC Refining Facilities.
▪ Implementation in Progress through dedicated team
efforts
Benchmarking of Practices for Operational
Excellence in Catalyst Management
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OPERATIONAL EXCELLENCE - BENCH MARKING OF ORGANIZATIONAL PERFORMANCE
Bench Marking and Improvement – Key Stages
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OPERATIONAL EXCELLENCE - BENCH MARKING OF ORGANIZATIONAL PERFORMANCE
Key Maintenance Areas & Performance Parameters
Maintenance CostInventory Management Maintenance Management
▪ Annual Maintenance Cost
▪ Contractor Cost
▪ Maintenance Shutdown Cost
▪ Maintenance Material Cost
▪ Overtime maintenance Cost
▪ Stock Inventory Turn Over
▪ Service Level
▪ Inactive Stock
▪ Operational availability
▪ Planned work
▪ Reactive work
▪ Backlogs
▪ HSECES backlogs
▪ Scheduling Compliance
▪ PM compliance
▪ Rework
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ADNOC OE MAINTENANCE BENCHMARKING - SOME OF THE KPIS
A Total of 28 KPIs were used in the Bench Marking Exercise covering the Maintenance Performance Areas
ADNOC
ADNOC Refining
Maintenance
Benchmarking Team
ADR
RRE
RRW
RAS
SCD
MED
Executive
Management
ADNOC Refining Operating Facilities / Maintenance
Management Groups
Key Features
▪ Team Effort/Extensive
Coordination
▪ Documented Guidelines
▪ Clear Definitions of
Indicators
▪ Milestone Plan
▪ Strict Adherence to
Targets
▪ Intensive Activity
▪ Close follow-up
▪ Re-validation of the Data
▪ Periodic Reviews
▪ Progress Reporting to
Executive Management
▪ Results Presentation to
Sites Management
The Project was successfully completed as per ADNOC Targets
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ADNOC REFINING MAINTENANCE BENCHMARKING ACTIVITY IMPLEMENTATION FRAMEWORK & KEY FEATURES
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Phase-I
▪ Measuring, comparing, and analyzing relevant Performance Indicators
Phase-II
▪ Management Systems Assessment through Survey Questionnaire and Evidence
Review
Phase-III
▪ Comparative Evaluation among the Group Companies
ASSET INTEGRITY & OPERATIONS INTEGRITY –BENCH MARKING ASSESSMENT KEY PHASES
Extensive efforts were made in Integrity Assessment as part of ADNOC Group Level Activity
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Phase-I : Some of the KPIs
Assets Technical Integrity Operations Integrity
▪ Loss of primary containment
▪ HSECES Compliance
▪ Failure of Emergency Shutdown Systems
during tests
▪ Service Level of HSECES Spares
▪ Inspection Backlog
▪ Plant MOC
▪ Operations Procedures/Documents
▪ Alarm Management-Average alarm rate
▪ Alarm Management- Peak alarm rate
▪ Unscheduled Production loss
▪ Number of Hot Work Permits
▪
Key Performance Indicators Identified & Defined, Evaluated and Assessed through a Systematic
Rigorous Activity; A total of 23 KPIs were used in the Assessment
ASSET INTEGRITY & OPERATIONS INTEGRITY BENCH MARKING – SOME OF PERFORMANCE INDICES
ADNOC
ADNOC Refining
Asset Integrity &
Operations Integrity Benchmarking Teams
ADR
RRE
RRW
RAS
SCD
MED
Executive Management
ADNOC Refining Operating Facilities / Asset &
Operations Integrity Management Groups
Key Features
▪ Team Effort/Extensive
Coordination
▪ Documented Guidelines
▪ Clear Definitions of
Indicators
▪ Milestone Plan
▪ Strict Adherence to Targets
▪ Intensive Activity
▪ Re-validation of the Data
▪ Questionnaire
▪ Extensive Sample
Evidences
▪ Periodic Reviews
▪ Progress Reporting to
Executive Management
▪ Results Report
▪ Key Observations
The Project was successfully accomplished as per ADNOC Targets
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ADNOC REFINING ASSET INTEGRITY & OPERATIONS INTEGRITY BENCHMARKING ACTIVITY IMPLEMENTATION FRAMEWORK & KEY FEATURES
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▪ Best in Class: < 5%▪ Industry Average: 10%
▪ Best in Class: > 95%▪ Industry Average: 80%
▪ Best in Class: 0%▪ Industry Average: 5%
0
PM Compliance (%)
▪ Best in Class: > 90%▪ Industry Average: 70%
BENCH MARKING ASSESSMENT ACCOMPLISHMENTS
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Achievements
▪ Benchmarking helped for Evaluating the Facility Performance in a comparative framework
▪ In some cases – provided opportunity for Extensive Evaluation & Health of the organization level Monitoring and Health of the Management Systems
▪ Helped to identify the areas of Improvement ; Helped to develop and implement world class systems and frameworks
(OpEx Model and CATMS)
▪ Enhanced the performance consciousness and awareness among the employees
Conclusions
▪ Provides a mechanism for Improvement Action Plan Development & Further Implementation in a Systematic &
▪ Organized Framework. ADNOC Refining utilized the opportunity and dedicated teams were entrusted for
Effective
▪ Implementation and Progress Monitoring
▪ Bench Marking forms the first key steps and provides the Basis for Continuous Performance Improvement
towards
Operational Excellence
BENCH MARKING ASSESSMENTS –KEY BENEFITS
ADNOC REFINING
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