The document discusses challenges refineries face in bridging the gap between strategy and execution. There is a lack of integration between the financial metrics used by upper management and the operational metrics used on the plant floor. This leads to distortions in information flow and interpretations. The presentation introduces yield accounting solutions to help address this challenge by providing integrated, reliable data across the organization in real-time. Case studies show how yield accounting solutions have helped refineries reduce losses, improve data quality, and increase efficiency.
3. Agenda
• Today’s Challenge
• Introduction to Yield Accounting
• New Offering Objectives
• Yield Accounting Solution Environment
• Offsites Integration
• Case Studies
• Conclusion
4. Today’s Challenge: The Strategy-to-
Execution Gap
UPPER MGMT
• EBITDA
• Gross Refining Margin
• Solomon Ranking
MIDDLE MGMT
• Throughput
• Actual vs. Budget
• Solomon Indices
• Energy Costs
OPERATOR
• Temperature
• Reflux Flow
• Catalyst Circ. Rate
Quarterly … Monthly … Daily … Hourly … Real-Time
Slide 4
5. Today’s Challenge: The Strategy-to-
Execution Gap
UPPER MGMT
Management is looking at • EBITDA
what happened in the past. • Gross Refining Margin
Lagging Indicators • Solomon Ranking
MIDDLE MGMT
• Throughput
• Actual vs. Budget
• Solomon Indices
• Energy Costs
Those on the front-lines are
seeing what is happening
now. OPERATOR
Leading Indicators • Temperature
• Reflux Flow
• Catalyst Circ. Rate
Quarterly … Monthly … Daily … Hourly … Real-Time
Slide 5
6. Today’s Challenge: The Strategy-to-
Execution Gap
Financial Metrics and Operation Metrics
UPPER MGMT
Management is looking at
2 Different Languages • EBITDA
what happened in the past. • Gross Refining Margin
2 Different Timeframes
Lagging Indicators • Solomon Ranking
MANY WORLDS APART!
MIDDLE MGMT
• Throughput
• Actual vs. Budget
Information as it flows through
the organization
• Solomon Indices
• Energy Costs
Those on the front-lines are
Distortions seeing what is happening
Delays now. OPERATOR
Decision Rights • Temperature
Leading Indicators
• Reflux Flow
MANY INTERPRETATIONS • Catalyst Circ. Rate
Quarterly … Monthly … Daily … Hourly … Real-Time
Slide 6
7. Today’s Challenge: The Strategy-to-
Execution Gap
Financial Metrics and Operation Metrics
UPPER MGMT
Management is looking at
2 Different Languages • EBITDA
what happened in the past. • Gross Refining Margin
2 Different Timeframes
Lagging Indicators
Decreasing • Solomon Ranking
level of MANY WORLDS APART!
MIDDLE MGMT
empowerment • Throughput
down the • Actual vs. Budget
the organization command chain
Information as it flows through
• Solomon Indices
• Energy Costs
Those on the front-lines are
Distortions seeing what is happening
Delays now. OPERATOR
Decision Rights • Temperature
Leading Indicators
• Reflux Flow
MANY INTERPRETATIONS • Catalyst Circ. Rate
Quarterly … Monthly … Daily … Hourly … Real-Time
Slide 7
8. Today’s Challenge: The Strategy-to-
Execution Gap
Financial Metrics and Operation Metrics
UPPER MGMT
Management is looking at
2 Different Languages • EBITDA
what happened in the past. • Gross Refining Margin
2 Different Timeframes
Lagging Indicators more …is
Decreasing • Solomon Ranking
than just a
level of MANY WORLDS APART!
technology MIDDLE MGMT
empowerment • Throughput
integration
down the • Actual vs. Budget
Information as it flows through challenge!
the organization command chain
• Solomon Indices
• Energy Costs
Those on the front-lines are
Distortions seeing what is happening
Delays now. OPERATOR
Decision Rights • Temperature
Leading Indicators
• Reflux Flow
MANY INTERPRETATIONS • Catalyst Circ. Rate
Quarterly … Monthly … Daily … Hourly … Real-Time
Slide 8
9. Where Yield/Production Accounting Lives
Synchronization
Business
Performance Management
Business/Yearly
Business Results
Plan
Plan vs. Actual
Results Goals
Monthly Production Performance Management
Production Accounting Quarterly/Monthly
Backcasting Plan
Plan vs. Actual
Reconciled Performance Management Goals and Targets
Performance
Logistics Daily Accounting Schedule
Sched vs. Actual
Reconciled Performance Limits & Boundaries
Hourly Balance Operations
Operations
Operations Monitoring Management
VALUE
Process Control & Integration
Optimization
weeks ago days ago hours ago now hours ahead days ahead months ahead
Reviews, Reports Execution Decisions
Slide 9
10. Where Yield/Production Accounting Lives
Synchronization
Business
Production Accounting
Performance Management
Business/Yearly
Business Results
Target Area for
Plan
Plan vs. Actual
Results Goals
Monthly Production Performance Management
Production Accounting Quarterly/Monthly
Backcasting Plan
Plan vs. Actual
Reconciled Performance Management Goals and Targets
Performance
Logistics Daily Accounting Schedule
Sched vs. Actual
Reconciled Performance Limits & Boundaries
Hourly Balance Operations
Operations
Operations Monitoring Management
VALUE
Process Control & Integration
Optimization
weeks ago days ago hours ago now hours ahead days ahead months ahead
Reviews, Reports Execution Decisions
Slide 10
11. The Case for Integrated Yield Accounting
• Business Functions Supported
– Financial and Process KPIs
– Decision processes
– Simulation Tools
• Loss Control and Reduction
– Current unaccounted losses at a typical Refinery = 1.5%
– As a result of Data reconciliation, assume that 0.5% is properly accounted
– Price Differential between loss and product mix = $10 per barrel
– Potential Reduction in Unaccounted Losses
= 250,000 bbl x 330 days x 0.005 x $10 = $4.1 MM/year
• Yield accounting is performed:
– Refinery wide Daily Mass and Utility Balance Reconciliation
– Refinery wide Monthly Mass and Utility Balance Reconciliation & Accounting
Slide 11
12. Yield Accounting Integration with Offsites
Process Unit DVR
(Data Validation and Reconciliation)
Offsites Inventory and Movement Management
26. Tank Inventory System (TIS)
• Uniform approach to managing gauging
systems (Varec, Saab, L&J, Enraf, …)
• Strapping table database
• ASTM/API table volume & density
corrections
• Extended calculations (e.g. DIN51757)
• Flow-rate calculations from level changes
• Level & tank operational states & alarms
• Standard tank detail, pool &
midnight inventory reports LAHHH, Interlock, no TIS alarm
LAHH, Movement shutdown
LAH
Tank Maximum Working Level
Ullage Maximum
Capacity
Working
Volume
TIS provides the basic data of the Measured level
actual state for all other Offsites Pumpable
Volume
Total
Observed
Operator setpoint
Volume
Modules
Minimum Working Level
Minimum
LAL
TIS bridges the tank gauging with the Working
Volume LALL, movement shutdown
MES/ERP layer
27. Order Movement Management System (OMM)
• Management, real-time monitoring & reporting
for all orders/movements.
• Handles all standard movement types (tank,
unit, & transport source/ destinations),
blending operations, and other complex orders
• Can handle co-mingling (multiple ownership)
• Validates input data and overall movement
data based on all available meters & gauges
• Optional Product composition tracking (PCT)
and quality integration (TQI) modules
• OMM interfaces with scheduling and stock/yield
accounting systems
OMM bridges the gap between movements
scheduling, operations and oil accounting
OMM monitors active movements, manages
scheduled activities and archives past
actions
28. Offsites Value in Yield Accounting
• Streamline inventory & movement
management
• Better inventory accounting
• Provides accurate & reliable data to
ErrorSolver
30. Case Study - Upgrade LG Chemicals
Mr. S. K. Jang
of LG Chemicals,
Korea, says:
“We had tried other material balance solution and were frustrated by how
poorly they worked and how much effort they required to create and maintain.
We were surprised and pleased to find out that there was another way.
ErrorSolver saves us hours each day and gives us results we could not have
obtained using other solutions.”
31. LG Chemicals
Loss
Control
Energy
ErrorSolver Management
Measurement
Accuracy
Improvement
32. LG Chemical Scope Case Study
DR Detail Model
NCC,BPA Overall DR
Models
NCC, BPA Detail Process
DR Models
Summary DR Models for
ERP Uploads, Energy Cost
and Utility Distribution.
Easy Maintenance and
Data Consistency by clear
and efficient model
building.
33. Upgrade Case Study Yeochun NCC
Mr. D. K. Kim,
Deputy General
Manager of Yeochun
NCC says:
“ErrorSolver offered us
functionality that was
simply not present in
our original software,
-- the ability to create logical summary models and user-definable constraints.
The composition tracking functionality provides valuable feedstock movement detection and
quality tracking. The switch to ErrorSolver improved our work efficiency, data validation,
and execution speed, so that overall, our material balance work time was shortened
by half. On a normal day, we spend less than an hour balancing the plant, and we can trust
the values we get back from ErrorSolver."
35. ErrorSolver Installations
List of ErrorSolver customer implementations and upgrades from other products:
SK Energy Refinery (former Yukong, Ulsan plant) – Korea, 1998
SKC (former SK OXY Chemicals, Petrochemical, SM plant) – Korea, 2000
KOGAS (LNG Plant) – Korea, 2000
Honam Petrochemical(Yeosu plant, Ethylene plant)– Korea, 2003
Samsung Total Petrochemical (Ethylene plant & Aromatic plant) – Korea, 2004
Qingdao Petrochemical (Refinery) – China, 2005
Yeochun NCC Petrochemical(Ethylene plant) ‐ Korea, 2005
SK Energy Refinery(Incheon plant) ‐ Korea, 2005
LG Chemicals (Daesan plant, Ethylene plant) ‐ Korea, 2005
Honam Petrochemical(Daesan plant, Ethylene plant) – Korea, 2006
LG Petrochemical (Yeosu plant, Ethylene plant) – Korea, 2006
KP Petrochemical (PX & TPA plant) – Korea, 2007
Samnam Petrochemical (TPA plant) – Korea, 2009
Daehan Petrochemical (Ethylene plant) – Korea, 2010
Titan Petrochemical (Ethylene plant) ‐ Malaysia, 2012
36. Invensys’ Yield Accounting Key Differentiators
Superior Functionality and Greater Reliability
Gross Error detection and elimination
Graphical process modeling environment
Logical modeling capability
Automatic detection of missing movements
Composition tracking function
Smart Objects: Equation Builder
Multi-period Reconciliation
Offsites integration
ErrorSolver with Offsites Integration raises the bar
for Yield Accounting Practices
37. With Our Solution, Our Customers…
Take less time to Reconcile
Save implementation costs
Report Daily, Monthly reconciliation quickly
Have Greater Data Visibility
Track Co-ownership easily
Navigate through the model areas easily
Perform little or no maintenance
38. Value Drivers for Yield Accounting
• Reduced Unaccounted losses
• More consistent, reliable data for cost, yield, and equipment
performance measures (KPIs).
• Instrument maintenance efficiency more effective: focus on
true problem areas
• Provides improved feedstock data for process yield simulators
• Accurate Feedstock and Product Tracking
Slide 38
40. For a Product Demonstration or more information,
please contact:
John Hernandez john.hernandez@invensys.com
+1 713 329 8468
Joe McMullen joseph.mcmullen@invensys.com
+1 484 467 6168