N. Sethurathinam, Executive Director, (Maintenance & Inspection) N. Sethurathinam, Executive Director, (Maintenance & Inspection) 25 th April, 2014 | New.

RELIABILITY

Petrofed

N. Sethurathinam,Executive Director ,

(Maintenance & Inspection)

25th April, 2014 | New Delhi

THE PARADIGMS FOR THE REFINING FUTURE

“The only given in this shifting landscape is that refining excellence is imperative in all input, output and asset related dimension.”

Source: AT Kearney’s Paper on Refining 2021 -Who will be in the game?

“Achieving 97+ % in Operational Availability allows refinery staff the time needed to focus on improving efficiency.”

Source: Solomon Associates- 2012 study report for IOC

UNPLANNED SHUTDOWN ANALYSIS - FY 2013-14 (Apr-Jan)Root Cause Analysis of Unplanned Shutdowns (35 nos.)

Opera-tional; 9

Adherence to systems and pro-cedures;

10

Under in-vestigation;

5Design; 1

Force ma-jeure; 9

Human error; 1

REFINERIES

Main Focus Areas for

improvement

THE CHALLENGE

We are confronted with two overriding challenges:1. Increasing “Up-time” or

availability of plant. 2. Delivering required levels

of availability at levels of cost equal to or better than competitors.

The Goal is

“Pacesetting Performance”

Pacesetting Performance

Re

du

ce

Increase

Cost

Availability

Objective

THE OPPORTUNITY….

Significant performance gap between “Pacesetters” and poorer performance.

1. Availability – Pacesetter > 10% higher 2. Maintenance cost – Pacesetters costs <30% of poorer

performers.

Maintenance cost performance gap can be worth in excess of 60c/bbl.

Pacesetters achieve both High Availability and Low Cost.

PROFIT IMPROVEMENT POTENTIAL IN DOWNSTREAM MANUFACTURING(SOURCE: EARLIER OIL & GAS INDUSTRY STUDY)

Cents/Bbl

Yield improvement

Operational changes 25-75

Minor capital debottleneck

10-50

Energy efficiency

Improved energy management

2-10

Capital project* 5-25

Oil loss, data quality

Reduction in real loss 2-10

Reliability Improved service factor

>5-15

More effective maintenance

10-60

Operations Better decision support

5-15

Effective plan, control, monitor

Automation 2-10

* Energy conservation investment frequently associated with yield improvement.

Indicative Opportunity

in Maintenanc

e

Indicative Opportuni

ty in Operation

Significant

percentage of

benefits possible

Safety & Reliability are inseparable

They are two sides of the same coin.

And, energy efficiency forms the third dimension – intertwined with safety and reliability.

8

RELIABILITY

Reliability is directly related to plant availability.

Plant availability is ability of plant to deliver desired function without interruption.

Reliability is measured by: Plant Availability Factor (PAF). Number of interruptions or unplanned shutdowns. Mean Time Between Interruptions (MTBI) during Target run-

length.

9

UNIT INTERRUPTIONS & RELIABILITY

Interruptions impact Margin: Increased Fuel & loss due to frequent startup and shutdown Increased efforts. Increased slop generation / off-spec. products / effluents.

Likelihood of statutory non compliance Disturbs Harmony with neighborhood.

Thermal shock on equipment leading to unsafe situation, fires etc. Impact on profitability.

Increased Repair & Maintenance Expenditure. Reduced catalyst life.

Increased Catalyst & Chemicals Expenditure May lead to long outage of Catalyst based Units which are profit yielding.

Emergency sourcing of Spares,Services,Catalyst,Chemicals. Higher Price- Opportunity Cost Increased exposure to Audit, Vigilance

Increased employee cost. Increased stress level & work life imbalance.

10

UNIT INTERRUPTIONS & RELIABILITY

17

The main pillars of Autonomous Maintenance,

Focused Improvement, Planned Maintenance, Quality

Maintenance and Early Management need to be

strengthened.

MAINTENANCE PERFORMANCE CHARACTERISTICS

Maintenance Costs/

EDC

• High maintenance cost • High maintenance cost

• Low availability • Low availability

• Too much work • Too much work

• Working on wrong objectives • Working on “right” objectives

• Poor maintenance effectiveness • Probably poor maintenance effectiveness

• Probably poor maintenance efficiency

• Probably poor maintenance efficiency

• Low maintenance cost • Low maintenance cost

• Low availability • High availability

• Reduced work/ downsized resources

• Reduced work/ downsized resources

• Not working on “right” objectives • Working on “right” objectives

• Maintenance effectiveness poor • Maintenance effectiveness & efficiency good

• Less work delivers more availability

• Key units allocated most resources

• Organizational alignment

Mechanical availability

From “as-is”

to “To-be”

THE PATH TO RELIABILITY - OUTPACING THE PACE-SETTERS

HOW TO ENHANCE RELIABILITY

Multi-disciplinary systemic approach.

Operation and Maintenance function as a team.

Treating each maintenance event as an opportunity to up-rate / upgrade.

Using reliable redundancy.

Adopt world-class best practices.

Leverage OEM experience and design resources to improve performance.

Introduce and incubate new technologies aggressively.

Get external domain experts to show you the mirror – audits / business

improvement programs.

COMPREHENSIVE CULTURE CHANGE REQUIRED

REACTIVE PROACTIVE

THE RELIABILITY JOURNEY …

Reliability Task Force

(RTF)

Cross Audits for Reliability.

TPM Excellence Award – PR & BR.

TPM Excellence

Award – GR.Revisit of RTF.

TPM Excellence

Award – HR.TPM

Excellence Award – DR.

Excellence in Consistent TPM

Commitment – PR & BR.

Excellence - BGR

RBI RCM Consistent Maintenance

Transformation Remote Surveillance Excellence in consistent

TPM commitment – DR.

International Best Practices:

2004-052007-08

2008-09

2009-10

2010-11

2011-12

2012-13 2013-14

Strengthening On-

stream Monitoring

International Best

Practices

Continuously striving

for improvement

2000

TPM