Achieving Excellence in Refinery Operations

Achieving Breakthrough Performance with New Processes
and Technologies
July 11-12, 2013 - NOVOTALL Hotel , Hyderabad, India
www.bharatpetroleum.com
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
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?
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
He joked that since the invention of the computer in the 1950s,
businesspeople have wanted computers, they just didn’t know why. To
this day, he said, computers have not had the impact we thought they
would
“IF YOU CAN’T MEASURE IT, YOU CAN’T MANAGE
IT”
- MANAGEMENT GURU PETER DRUCKER
Transforming Data to Decisions
3
Our Company Profile
Integrated Petroleum Refining and Marketing Company.
Sales Volume
31.14 MMT
Fortune 500
BPCL Ranks 225
Refining
13.35 MMTPA
at Mumbai
Group Share in
Refining
15 %
9.5 MMTPA
at Kochi
3 MMTPA
62.96% holding
Major JVs
Marketing Infrastructure
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
Retail Outlets
Oil Installations / Depots
Aviation stations
LPG Plants
Pipelines (Kms)
9289
126
31
49
3000
Group Share in
Marketing
22.49 %
13837
Strong workforce
ISO 9001, 14001, 17025 & OHSAS 18001 Certified Refinery
Downstream Industry Challenges
Lack of predictability
Can’t see business performance
to plan, and recommend new
plans to affect results
Demand
Varying process
conditions lead to
Higher energy
use
Board
Production Processes
Shared Information
Fluctuation in Crude
Prices & also to
Maintain Margins
Marketing
Supply Chain
Shipping & Purchases.
S&B
Process Optimization
Optimization Group
REFINERY
REFINERY
CUSTOMER
Dynamic Market
Demand
Product Variability
- Inconsistent quality: by
plant, by product, by shift
REFINERY
Customer
Service
Dispatches
NEW CUSTOMER
No visibility – Can’t see
plant wide production status
due to 10 - 200 disparate
shop floor info systems
SPOT MARKET
CUSTOMER
Tightening regulations on
petroleum product
specifications
Inflexible production
process contributes to
Missed
Opportunity
ISO 9001, 14001, 17025 & OHSAS 18001 Certified Refinery
Refinery Performance
Measurement
Key Refinery Performance Measures
 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
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
BPCL Refinery Products
LPG
FUEL GAS
NEW
SOLVENT
UNIT
C
R
U
D
E
CRUDE OIL
D
I
S
T
I
L
L
A
T
I
O
N
HEXANE
SBP
TOLUENE
REFORMING
AROMATICS
BENZENE
ATF
KEROSENE
GAS OIL
DIESEL
CRAKING
GASOLINE
FURNACE OIL / LSHS
BITUMEN
BLOWING
BITUMEN
BPCL
Refinery
: Data
& Processes
Map
BPCL Refinery
Broad
Process
&
Linkages : Landscape
Planning
Sales& Distribution
Supply &
Distribution
Finance/Accounts
Plan
Refinery-Wide
DBMS
Planning/Economics
Yield Accounting and Gross margin
Plans
Schedules/
Tasks
Targets/Recipes
Shipments/Receipts
Reconciled Data
Material Balance
Operations Monitoring
Unit
Optimization
Shipping Data
Movement Data
OM&S,LIMS,&
Shipping Systems
Data Reconciliation
Operations
Monitoring
Shipments &
Receipts
Lab
Analysis
Real-Time
DBMS
Process
Operations Data
(Measurements,
Setpoints,Status,
Calculated (KPI),etc..)
Instrumentation
Utilities
Optimization
Constraints
Targets
LIMS Data
Process History
(Raw, Corr
Weeks
Refinery Scheduling
Operating Modes
Quality Giveaway
On-line Opt.
APC
Setpoints
DCS
Regulatory Control
Utility
Control
Days
Blending
Optimization
Targets
Oil Movt.
Instructions
Recipes
Hours
On-line Opt.
APC
Setpoints
Utilities
System
On-line Opt.
APC
Ratios
Rates
Movement
System
Blending
System
Blend
Control
Oil
Movements
Monitoring & Information
Months
Refinery Production Planning
Yield / Assay Data
Schedules/Instructions
Cal.Def/ KPI
Cal. Def./KPI
Plan
Requirements
Planning& Control
Minutes
Seconds
Movement
Control
** Above Landscape does not include other processes like Safety, Security, Energy, Maintenance, Energy, HR, Advsory,
Procurement, Dispatch
Networked Refinery
MES / Networked Refinery
PIMS
RefSked
Scheduler
Production
Planner
Integrated
Database
• MES integrated
SAP R/3
AtPO /
OM
Advisor
Blender
Yield Accountant
IP21
LIMS
Engineer
DCS
• Plants equipped with
DCS /Advance process
control
Lab Technician
Offsite
Operator
with
• Process
Industry
Modeling
System
(PIMS) software for
optimal crude selection
and maximizing value
addition
• Online
laboratory
information
process
data for quick decision
making
ISO 9001, 14001, 17025 & OHSAS 18001 Certified Refinery
Process Based KM Map for BPCL Refinery
Portal
Supporting Processes
Safety
Refinery Core Process
Refinery Production Planning
Services
HR & PR Services
Customer Services
Technology
Refinery Scheduling
IT Services
Finance
Laboratory Testing
Procurement
Learning & Education
Health Services
Quality
Production / Transfer & Storage
Maintenance
Security & Surveilliance
Supply , Distribution &Sale
Admin Services
Projects
Linkages With Business
Environment Control
Welfare & Community
Communication & Relationship
Value Added Systems for key Refinery functions
(with SAP “Connect” Interfaces)
Functional Process Life Cycle of Refinery Systems
Glimpses of our Portal
Emerging
Spaghetti and silos
:
Heterogeneous
Systems
leading to
Need for Integration Framework and
Refinery Automationn & Enablement
simplified approach…….
Safety &
Security
Supply
Chain
Reliability
MES
App
Daily Stmt
SAP
AIMS
Attendance
System
Tank
Dip
Energy
Gate
Mgmt
Permit
System
Emission
IRIS Monitoring
Quality RPC
ORB
RCM
Shipping App MOC
LIMS
Quality
Process Units
Crude
Outturn
Inventory
Mgmt
Download
Stock
file
Sheet
Mass
Bal
Hazardous
CIMIO
APPC
Plant
Maintenance
Production
ISO 9001, 14001, 17025 & OHSAS 18001 Certified Refinery
Business Requirement
Earlier Scenario of Information System including MES
Finding Key
Information
Data Analysis
Performance Analysis
Real-Time
Visibility
Real-Time Business
Monitoring
Disperse
Systems and Information base
SAPMM,FI,CO,PM..
LIMS
ATOMS
SCO
IP21 / Scada / DCS
Advisor
In-House IT
Applications
BIW
APC
PLANT
SYSTEMS (MR/KR)
CMT
BUSINESS
SYSTEMS
(SAP R/3)
Purpose of BPMAI – Best Practices
Drivers for Change leading
to Excellence
Drivers for Excellence
 Better Service to Customers
Safety & Reliability
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
Business Requirements &
Need of BPMAI
 Integrated View of Refineries Business Performance

Requirement for Senior management Dashboard to monitor Refinery performance and KPI’s
 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
Information Flow in Enterprise
19
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
Supply Chain
Production
Quality
Economics
Process Unit
KPI
Energy
Mumbai Refinery
Overview
Reliability
Maintenance
Utilities
HSSE
Support
Services
BPCL Refinery Overview
Domains: KPI
Domain: Process Units
PROCESS RE-ENGINERRING
Bridges the GAP
BPMAI SYSTEM
Web Based Solution
In-House Developed
EXISTING SYSTEMS
IP21, SAP, MES, LIMS, CMT, DCS, etc.
VSupport Applications  Welcome Slip,
Work Permit, IRIS, Lorry Tracking, EHMS, etc
MANUAL SYSTEMS / DATA
OWNED BY INDIVIDUALS
MR DATA BANK
Key Differentiator
SYSTEM
(Unstructured
Data)
• A generic Web based Solution.
• Easy to configure and migrate Excel based file.
• Unstructured data and Manual systems owned by
individuals removed
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 KPI’s, COP’s and KOP’s AND DECISSION MAKING.
Trending & Analysis
Stream Production from
Unit
Quality
Measure
Stock &
Quality
Parameters
INTEGRATION & DATA FROM
DIFFERENT SYSTEMS
Data from
ATOMS
Configuration
Data from
Advisor /
Manual Entry
Sample
Results
Data from
LIMS
Data from
IP21
Data from
IP21, ATOMS,
LIMS
Raw
Water Balance
Raw Water Balance
Plan V/s Actual
Plan Vs Actual
Column Pressure Monitoring
Napahtha Control
Process Units Summary
Advanced Features
Analysis
Trending
Graphics
Shapes
Alerts /
Notification
Charting
Daily Morning Meeting Discussion, Directors, GM’s, DGM’s
Business Performance Management
Business
Performance
and Intelligence
SystemManagement
BPMAI System
Finding Key
Information
Data Analysis
Real-Time
Visibility
Improved
Decision-Making
Integrated System
(BPMAI)
Performance
Measurement
Real-Time Business
Monitoring
Correlation & Visibility of Real-Time
Information
Real-Time
Operations Intelligence
PLANT
SYSTEMS
BUSINESS
SYSTEMS
An iBPMS Has 10 CoreGsrtner Components
45
BPCL BPMAI Solution : Bench mark with Gartner’s 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
Key
Benefits
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)
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
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
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.
Vision of BPMAI System
Future Integrated Scenario of Refineries - BPMAI
Senior
Management
SCO Users
International
Trade
Integrated BPMAI
Common System
MUMBAI
REFINERY
BORL
REFINERY
End Users
MMBPL
Pipeline
NRL
REFINERY
KOCHI
REFINERY
Future Integrated Architecture for
BPCL Group Of Companies (BPMAI)
Senior
Management
International
Trade
SCO Users
End Users
Information Flow
Corporate
Centralized Information and Decision making Server (BPMAI)
Contain Common Information pertaining to MR / KR/ NRL / BORL
Integration of
BPMAI System
MR
MES
SAP
KR
MES
SAP
CDC
IP21
MES
SAP
CDC
IP21
LIMS
Applications
MES
Applications
SAP
CDC
IP21
LIMS
BORL
NRL
LIMS
Applications
CDC
IP21
LIMS
Applications
Are we Ready for Change?
- Charles Darwin
THANK
YOU
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
Agenda