Key areas for Operational Excellence Transformation
Operational Excellence Transformation is Yokogawa and KBC’s co-innovated portfolio of solutions and services.We provides comprehensive solutions for business automation in all four areas using consulting and digital technology.
Supply Chain Optimization
Supply Chain Management deals with satisfying customer demands by selecting the most appropriate feedstocks the plant can process efficiently, and delivering the products to the customers with maximum efficiency. Today, most of the industry SCM solutions are executed manually and/or separately. In most cases, specialized planning and software packages that have been implemented previously are not connected to other systems, such as sales and distribution and real-time production systems. As a result, the benefits of SCM are not fully realized.
Yokogawa's strategy to improve supply chain management starts with defining the corporate long-term strategy and aligning it with operations, maintenance and all other functions involved in the entire value chain. It includes:
Key Operational Competencies in Supply Chain Optimization
- Term Contract Planning: Commercial and economic evaluation of long-term contract obligations
- Supply Chain Planning: Economic optimization of the hydrocarbon supply chain for short-term, mid-term, long-term and strategic time horizons
- Price Deck Formulation: Generate price forecasts based on optimization boundaries and time horizons for feedstock and products
- Supply Chain Scheduling: Schedule optimized operations (process inventory and blending) over time, taking logistical constraints into account
- Commercial Contracting: Develop and negotiate favorable and competitive contract terms for feedstocks and products
- Inventory Management: Measure and reconcile the amount of each product made and raw materials consumed to produce an accurate material balance through production accounting and oil loss measurement
Yokogawa's approach to supply chain management involves digitalizing operations from supply to distribution. We then adopt the identified end-to-end optimization strategy to discover and manage all hidden costs (wastes) in the long chain. Our main objective is to find the Global Optimum to enable Just-in-Time in manufacturing and delivery for suppliers and customers, using minimum inventory and movement.
By applying digital technologies onto the end-to-end process of the supply chain (manufacturing raw materials to final products and managing purchase orders to good receipts), we may be able to improve the following:
- Customer & Supplier Experience: Deliver personalized engagement with an improved understanding of the product value directly to customers and suppliers
- End-to-End optimization: Extend the optimization horizon using real-time information on supplier delivery and customer demand across organizations and companies involved in the long supply chain
- Information Mobility: Enable optimal delivery and visibility by tracking personal location and activities with mobile technology
- Predictive Insights: Anticipate demand, supply and asset requirements with better insights
- Digital Business: Improve overall business agility and borderless collaborations by eliminating internal information silos
By combining Yokogawa’s product portfolio and KBC’s consulting services, we provide our customers best practices and domain knowledge that empower them to improve their operations, as well as a digital platform that supports such activities and initiatives. Our Operational Risk Management scope does not only cover partial improvements in the organization, but also optimizations in plant operations to achieve continuously improving safety, reliability and operability.
·Asset Operations and Optimization
- Optimize the potential of physical assets, by pushing throughput and maximizing the production of the highest value products, whilst minimizing variable costs such as energy.
- Deliver small and large capex projects, on time and on budget, to deliver growth and meet environmental requirements.
·Operational Risk Management
- Reliably control safety, health and environmental risk at a personal and process level. This assures the robustness required to avoid catastrophic losses.
·Asset Management and Integrity
- Confidently ensure asset reliability and availability, whilst controlling maintenance costs. This assures the asset always meets expectations and is always available to capitalize on short term market opportunities.
Supply Chain Planning (PETRO)
The challenge to maximize enterprise value from integrated supply, refining, distribution, and marketing systems is multi-faceted. On an ongoing basis, it involves decisions such as:
- Which crude oils to buy for the refinery?
- Which products (gasoline, jet fuel, diesel, lubricants, fuel oil) to manufacture?
- How to operate the refinery to make the best use of our assets?
Crude optionality, refinery capability, and market price volatility create an ongoing optimization opportunity in the crude-to-customer supply chain. Finding the best fit between crude oil, refinery capability and product supply is crucial to increase efficiency in value chain activities and ultimately, delivering products to consumers.
PETRO, a refinery linear programming optimization system developed by Chevron, enables users to make informed decisions on optimizing refinery processes, from raw material selection to final production.
It has the following features:
- Robust, fast solution: Find a solution quickly using superior recursion implementation and modeling techniques
- Outstanding case management: Allow planners to expand the operating envelope and investigate more options
- Reduced support requirement: Utilize unique features to minimize problems caused by inadvertent changes to the model
Data-driven analytical approach
PETRO is built on data, and the quality of such data is key to its accuracy and value. By leveraging the underlying models for analysis and automatic dynamic updates, users can operate more effectively and focus on higher-value activities.
- Underlying models: Create, update and analyze yield and distillation models using crude oil data, refinery data and processing unit models
- Dynamic inputs: Automatically load market data such as demand forecasts, price forecasts and feedstock availability
One common model of the refinery can be used to do strategic analysis, translate it to business planning and then to monthly planning through the revision of dynamic inputs.
An Integrated Planning Example: Petro-SIM and PETRO
Yokogawa and KBC’s Petro-SIM uses rigorous simulation models to manage facility processes over a wide operating window, and is used to optimize facility performance and organizational productivity. Petro-SIM reflects real-time information of the physical plant, and connects with PETRO to align the current operating parameters.
PETRO uses distributed recursive linear programming to guide users in choosing the most optimal sets of decisions, from feedstock selection, to process execution and to production portfolio creation. Data coming from PETRO are then fed into scheduling solutions such as Visual MESA Supply Chain Scheduling (VM-SCS).
PETRO is Chevron’s proprietary petroleum supply chain planning software.
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