best practices in plant operations & maintenance

Best Practices in

Plant Operations & Maintenance

SK Corporation

Plant Operations

Presented by Sook-Hyung Kwon

■ Introduction

■ Block Diagram

■ KPI(Key Performance Index)

■ KPI Improvement Plan

■ Best Practices of Operations

Contents

Introduction - Company Overview

o Net Income : 301

o Sales : 9,811

o Total Assets : 12,371

o Shareholder’s : 5,132Equity

(as of 1999)

* 3,670 Gas Stations

4,350 Persons

(as of 1999)

1962. 10.

Oil Explorationand Production

Petroleum Refining

Chemicals

Gas/Coal/Lubricants

Global Energy Trading

Establishment Financial(million$)

Employee

Business Area

Introduction - Brief History of Refinery

● Oct. 1962 Korea Oil Corporation was founded

● Apr. 1964 No.1 Process Commenced Operation (35,000B/D)

● Apr. 1968 No.2 Process Commenced Operation (60,000B/D)

● Oct. 1972 No.3 Process Commenced Operation (115,000B/D)

● Nov.1985 Expansion Project puts Total CDU Capa up to 345MB/D)

● Jan.1991 CCR Reformer Started Operation at 30,000B/D

● May.1991 No.4 Process Commenced Operation (200,000B/D)

● Nov.1992 Hydrocracker Complex Commenced Operation

( Vac. Distillation: 63,000B/D, HC & VRDS : 30,000B/D)

● Sep.1996 FCC Complex Commenced Operation

(RHDS: 60,000B/D, RFCC : 50,000B/D, Propy., MTBE)

● Oct.1996 No.5 Process Commenced Operation (240,000B/D)

Introduction - Capacity Overview

Unit No. of Unit Capa.(MB/D)Crude Distillation Unit

Vacuum Distillation Unit

Catalytic Reformer

Naphtha HDS

KERO/Diesel HDS

VRDS/RHDS

RFCC

Hydrocracker

Ethylene Plant(MTon/Yr)

PX(MTon/Yr)

PE/PP(MTon/Yr)

Boiler

Off-Site Tank

5

2

4

2

6

1 / 1

1

1

2

2

2 / 2

15

420

810

78

83

42

190

37 / 68

50

38

780

750

700

Steam : 1,150MT/hElec. : 120,000 kW

42 MMBbl

G/C & Me’ C3 / C4

LSR Me’ Gasoline

LSR

NAPHReformer

PE

Ethylene

PO/SM

PPPropylene

Ethylene

PE

PO / SM

PP

Propylene

#1,2 Sufolane Cyclohexane#1,2 CHBz

Benzene

Toluene

XFU #1,2 PX

Xylene

PX

KERO

LGO

#1,2 Ethylene

S/B Me’Jet Fuel

HDSKerosene

Diesel

AR

VDU

LBO Lube OilHC

VRDS Fuel Oil

#1~5

CDU

RHDS RFCC MTBE

LCOAsphalt

Block Diagram

KPI(Key Performance Index)

■ Refinery KPI Trend

Operating Cost

(￠/UEDC)

50

30

101994 1996 1998 2000

KPI Improvement Plan

Current Level

o Operating Cost : 1st of 4 Quartiles

* ’98 Solomon Study Basis

■Gross Margin Increase

o TOP Program

o NIR/On-Line Optimizer

o LBO

o Anti-Coke

■Operating Cost Reduction

o TOP Program

o Solvent Cleaning

- T/A Interval Extension

World Best Refinery by 2002

Best Practices of Operations

■ TOP (Total Operational Performance) Program

• Improvement of treating

Capacity

• Unscheduled S/D

Time Reduction

Quality

Cost Time

•High Quality

Product Increase

•Waste Reduction

•Raw/Subsidiary

Materials Reduction

•Energy use Reduction

•Productivity Improvement

o Objectives- To achieve dramatic performance improvement within 2 years

- To build a system for continuous performance improvement

World Best

Competitiveness

(Operating Cost)


■ TOP (Total Operational Performance) Programo Cost Type and Basis of Hurdle Calculation

Cost Type Definition Exampleof category

Goal ofimprovement

FullyCompressible

PartiallyCompressible

NonCompressible

Cost of no theoretical limit orregulation

CompressibleCost

StructuralCost

Portion to reduce some of theo-

retical limit or regulation cost.Portion not to reduce some oftheoretical limit or regulationcost.

Cost of theoretical limit orregulation

- Labor cost- Petty expenses

- Excess of utility

- Core material

- Tax/Premium- Depreciation

40%

40%

0%

0%

o Approach for determining the idea hurdle for PC costs

Is it possible tocalculate tech-nical limits withthe productionprocess curre-ntly in use?

Yes

Calculate

Current - Tech. limit

Goal

×40%

No

Is it possible tocompare perfor-mance with thebest competitor?

Current - Top class ×100%Yes

No

Is it possible to cal-culate technicallimits based on theequipment curre-ntly in use?

Yes

No

Current - mechanicallimit

×100%

20/80 Rule ×40%


■ NIR/On-Line Optimizer: CDU, Reformer, PX, Lube B, Amine, etc

DCS

APCDirect Quality Control

•

Operation Target

Operating Condition

- P/A , Reflux

- Reflux and etc.

D86

PINA

Cold P.

Crude Assay Update

TBP

API

Crude (A)

A-T

OW

ER

Crude (B)

LSR

Naphtha

LGO

•H & M Balance Optimization Actual Property Based Opt.NIR

NIR

NIR

OPTIMIZER

★ SK Application Unit : #3,5 CDU


■ NIR Application to Blending: Gasoline, Diesel, Naphtha

-0.2

0.3

0.8

1.3

1.8

2.3

2.8

1100 1300 1500 1700 1900 2100 2300 2500

NIR Spectra of Gasoline

1

2

3

4

5

CH, CH2, CH3 1st Overtone

1: Stretch for aromatic and CH3 (2nd Overtone)

2: Stretch for CH3 (aliphatic, 2nd Overtone)

3: Combination bands for CH2

4: Combination bands for aromatic and CH2

5: Combination bands for aromatic and CH

Wavelength (nm)

Ab

so

rba

nc

e

Path: 2cm

Gasoline

Sample

Lab Analysis

Octane NumberSpecific Gravity

Benzene etc.

Prediction

Model

Reformate C4 MTBE

ProductRON,RVP,

Aromatic,

Benzene,API

Gasoline Blending Process

NIR

Scheduling

APC


■ Advantages of NIR Analysis

o Very fast (within 1 minute)

o Measure several properties simultaneously

o Excellent repeatability & reproducibility

o Non-destructive & No pre-sampling

o Easy to measure On-line

o Use fiber-optics for remote analysis


■ Benefits from NIR Application

Application Benefits Economic

Gasoline

Blending

Reduced Quality Loss

Opt . Use of Feedstock

Improved Quality Assurance

Maximal Use of Blender Capacity & Storage Tanks

6 Month

Pay Back

+

RON Save : 0.3

RVP Save : 0.04 kg/cm2

C4 Raffinate : 0.56% Reformate : 0.37%

Crude Unit

Increased Production of Higher Value Products

Maximize Throughput (If Needed)

Better Operation Stability

Real Time Monitoring of Product Properties

Increase the Level of CDU Automation

6 Month

Pay Back

+

> U$2MM/yr for a 170M Bbl/day CDU of SK Corporation

> U$2MM/yr for a 70M BD Blending of SK Corporation


■ LBO

HC

o Process Scheme

VDUCDW(Catalytic

Dewaxing Unit)

H/F(Hydro-

Finishing)

Fracti-

onator

YUBASE3

YUBASE4

YUBASE5

YUBASE6

YUBASE8

LBO

(ISO - Dewaxing)

o Process Features

- The technology for the integration of those units was established by SK

Corporation itself which has been registered in many countries as a patent.

- All YUBASE are API GroupⅢ(Viscosity Indexes are above 120) category.

- Hydrocraked-Isomerized base oils : Hyrocracking-Isodewaxing process is the

most economical way of producing API Group III base oils even there are

many variables involved in its economy.


■ LBO

o Characteristics of Product Quality

- Excellent Oxidative and Thermal Stability

- Very Low Volatility

- Very Good Viscosity-Temperature Behavior andLow Temperature Properties

- Similar to PAO in General Performance

- No Toxicity


■ Anti-Coke

• Furnace Tube Coke Problem at Naph Cracker

Advantages

Effective anti-coking by

Suppressing catalytic coke

Develop Chemical On-line

Coating Method

Apply the coating technique

of Solar Cell

Furnace cool-down is not necessary

Short time & easy application

No downstream/environmental impact

Doubling Run-length

Reducing utility consumption

Increasing tube service life

Benefits


■ Solvent Cleaning

o Heat Exchanger Fouling of CDU

- Heater load increase(COT decrease => Efficiency decrease)

- Throughput of CDU decrease

- Energy loss

- Bottleneck of T/A interval extension

o Solvent Cleaning Application for the H/E of CDU unit

CIT

(℃)

SOR 1Yr 2Yr EOR

Heat Duty

Saving Portion


■ Solvent Cleaning

o Effect of Solvent Cleaning(expect 13 million$/y)

- Energy Saving(increase efficiency of heat exchanging)

- Increase throughput

- Increase heater COT(Efficiency increasing)

- Extend T/A interval(CDU : 2 →3 years)

o Promoting business of Solvent Cleaning Technology

o Another activities for the T/A interval extension

- Heater efficiency increase(Fuel Additive, Heater Tube

Online Cleaning, APH Cleaning)

- Optimum corrosion chemical application(Co-work with

Chemical Vendor)

- Damage Mechanism definition & application(Co-work with

Maintenance Division)


■ The List of another Best Practices

o DSO Recovery Technology(By-product of LPG Merox)

o Crude Tank Sludge Treating Technology

o Antipol(Cracker Washing Oil) Production

o O & M(Operation and Maintenance)

o ESCO(Energy Service Company)

o Laboratory Analysis Service(KOLAS, ASTM)

o Utility Business(Excess Capacity Using)

o SK Aromatic Catalyst/Process Technology, etc.

SK Corporation O&M Service Area

Total Solution Services

Operation

o Initial S/U Assistance

o Contract Operation &

Diagnosis

o Training

Technology/Consulting

o Project/Construction Mgmt.

o Plant Assessment

& Improvement

o NIR/Corrosion/CIM/

ESCO, etc.

Maintenance

o T/A & Routine Main’

o Initial S/U Assistance

o Maintenance Tech.

Assistance

■ Service Area

■ On-going Projects

o Formosa(Taiwan) o PEMEX(Mexico)

o TEMA Oil Refinery(Ghana) o CONCORD(China)

B

Intellectual Property

Talent

Plant- Process Overview

- Process History

- Equipment History

- Maintenance History

Stakeholder

- Company Profile

- Personal Profile

Technology

- Technology

Management

- Strategy

& Resources- Skills

Standard- Codes

- Regulations

- Standard Spec.

People

- Inside Specialists

- Outside Specialists

Practice

- Improvement

- Troubleshooting

- Field Experience

Material

- Crude oil & Products

- Catalysts &Chemicals

SK Knowledge Map

Maintenance

Presented by Hae-Ryong So

Contents

Introduction

Maintenance Management System

SK-CORE System(COmbined Reliability Enhancement Program)

Introduction

Stationary Equip. 11,179

Rotating Machinery 26,605

Electric Equip. 37,491

Instrument 114,713

Analyzer 3,634

Total 193,622

Facilities

OperationAdminist-

ration

Safety & Environ

O&M

Biz

ULSAN Complex

Mainte-nance

Eng. &

Technical

Maint. Mgmt.

Inspection, Rotating, Instrument, Stationary,

Electrical, Business Develop

Maint.

Process Eng.

Maintenance Organization

Planning, Cost, Training, CMMS/KPI, Material,

Project Management

Rotating, Instrument, Stationary, Electrical

Maintenance Management

System

Maintenance System

Facility Management System

- Process Risk Ranking

- Up-date Maint. Procedures

- Equipment Registry

Planning System

- Planning & Scheduling

- Contractor Control

- Material Control

Execution System

- Normal, T/A, PM

- Inspection, Maintenance

- Remodeling, Improvement

History / Evaluation System

- Input Maintenance History

- Review Experience Data

- Data Analysis

Plan Do

CheckUp-grade

CMMS

SK-CMMS (Computerized Maintenance Management System)

- To support the manager’s decision by the on-line management

monitoring

- To increase the maintenance management efficiency by

simplifying work process & computerizing

• Work Order

• Planning / Scheduling

• EQ. History

• Material

• Contract

AIMS(Account)

PIMS(Procurement)

HRMS(Human Resource)

PMDB(Project)

Primavera(T/A scheduling)

IDMS(Inspection)

KPI(Key Performance)

SAMS(Accident)

EIDMS(Electrical)

TIMS(Work Management)

SK-KPI

SK has got consulting by Solomon to measure current

status comparing with World Class Maintenance since

1994.

Solomon Index

→Cont’d

Item Formula

CostMaintenance

Index(MI)

{ Maint. cost / CRV (Capital

Replacement Value)} × 100

ReliabilityReliability

Index(RI)

(Downtime / Total Operating

Time )× 100

Maintenance

Work

Results

Costs

Reliability

Productivity

Effectiveness

Efficiency

→Cont’d

After Solomon Consulting Study, we developed SK-KPI.

SK-KPI is a numeric value to improve Effectiveness and

Efficiency of Work Results.

SK-KPI

MI = Maint. cost / CRV (Capital Replacement Value) × 100

RI = Downtime / Total Operating Time × 100

SK-KPI Trend

MI

(%)

RI

(%)

92 93 94 95 96 97 9998 00

Section

Reliability

Index

Equipment

Trouble

Turnaround DowntimeTurnaround Interval

Equip. Failure Downtime

No. of Equip. Failures

Product. Loss by Failures

Reliability

KPIDivision

CostActual Cost / Budget

Contract Cost / Total Cost

Maint. Index

→Cont’d

KPI Lists

SK-KPI is composed of 29 items.

Section

EquivalentPersonnel

Craftsman UtilizationOvertime RateManpower

KPI

Planning/

Scheduling

Contractor Manpower Rate

Division

W/O

Planning

Planned Work RatePlanning Accuracy

Schedule CompliancePM vs. PdM vs. BM

Maintenance Backlog

Material/

Inventory

Stock Value vs. CRVInventory Turns

Stock Value vs. Warehouse Size

KPI Lists

Cycle of KPI Improvement

Why?

What?Results!

How? When?

SK-CORE System:SK-RBI,SK-RCM,SK-SISRA,SK-DAS,T/A Planning etc

To make Profit Centered Maintenance

After evaluation of SK-KPI,

After comparing with World

Class Maintenance,

PM and PdM related to CMMS.

Work Planning/Scheduling

Work Instruction, Procedure,KM

and CoP(Community of Practice)

SK-KPICMMS

Reliability Management System

- SK-RBI- SK-DAS - Corrosion Control

Inspection

- Fired HeaterImprovement

- FFS

Stationary

- SK-RCM- Root Cause Analysis- Diagnosis

Rotating

- Power SystemAnalysis

- Electric Facilities Reliability Study

Electric

- SK-SISRA

- Analyzer Engineering

Instrument Turnaround

CMMS / KM / CoP / InternetWorld

Best

- Planning &Scheduling

Reliability Structure

No Unexpected Production Interruption

Equipment &

Process Safety

Turnaround

Optimization

Optimized Maintenance Cost

Enhanced Reliability

Stationary : SK-DAS (Damage mechanism Analysis System)SK-RBI (Risk Based Inspection)

Rotating : SK-RCM (Reliability Centered Maintenance)

Instrument : SK-SISRA(Safety Instrumented System Reliability Assessment)

Turnaround : Planning & Scheduling

SK-CORE System

SK-CORE System(COmbined Reliability Enhancement program)

A. SK-DAS (Damage mechanism Analysis System)

SK-DAS is possible to increase productive efficiency by

eliminating the source of accident, establishing suitable

management system and acknowledging accident symptoms by

sharing of information related to Damage Mechanism in

advance.

Check List

(252 pcs)

Process/Maint.

Data baseSK

ExperienceSK DM

(50 Categories)

SK-DAS

B. SK-RBI

• SK-RBI originated from API RP580, it has been modified by SK

based on SK's considerable experience. SK-RBI is the progressive

and cost-effective risk ranking inspection method, It can reduce

unpredicted accidents and save inspection and maintenance costs.

• SEIP (Specific Equipment Inspection Plan), 4W 1H

- What type of Damage Mechanism shall be inspected

- Why we have to inspect Damage Mechanism

- When we inspect Inspection Cycle

- Where to inspect Probable Area

- How to inspect Inspection Technique

Before

After

29 % 26 % 13 % 23 % 9 %

1 2 3 4 5

2% 14 % 24 % 36 % 24 %

※ Total Equipment : 761 ea( SK FCC Plant )

R.R

RFCC : 278 (Residue Fluidic Catalyst Cracking)

RHDS : 211 (Residue HydroDeSulfurization)

HP : 164 (Hydrogen Plant)

AL : 68 (Alkylation)

SA : 40 (Sulfuric Acid Recovery)

→Cont’d

Application Case : SK-RBI

Risk Ranking 1 & 2

- Before RBI ( 418 ea, 55%)

- After RBI ( 124 ea, 16%)

About 294 ea is not necessary to open for inspection per year.

- Turnaround period was analyzed by risk ranking

- Made appropriate inspection method and plan

- Extend turnaround period ( 1 year → 3 year )

Application Case : SK-RBI

Result of SK-RBI Application

C. SK-RCM

SK-RCM concentrates on dominant failure modes with deep

investigation using root cause analysis and on implementation

so that users will be able to monitor the implementation of SK-

RCM results and to optimize work volume with effective failure

prevention tasks.

Concentrates on possible Failure Modes based on equipment

history database and potential Damage Mechanisms.

Implementation Focused

200 Failure Modes / 400 Failure Causes / 800 Mitigation Tasks.

End-Users’ Commitment Focused Database-Software

SK-SISRA(Safety Instrumented System Reliability

Assessment), is based on global standard IEC 61508 and

ISA S84.01, provides optimum system configuration and

safe operational condition to all types of instrumentation

equipment in a plant.

D. SK-SISRA

SISReliability Assessment

SK Experience

+

Minimize Safety and Environment Risks

Improve Safety & Reliability

Establish optimum Inspection Cycle/Method

Optimize Inspection Method

Minimize Maintenance Costs

E. T/A Planning & Scheduling

Up-front planning is key practice

- Predefined refinery milestone schedule

- Adequate lead time for planning, engineering, materials etc.

Minimum work scope consistent with business drivers.

- Work scope driven by risk management techniques

- Maximize pre/ post turnaround work

→Cont’d

With elaborately structured feedback and correlation among

various systems of SK’s version explained above i.e, SK-DAS,

SK-RBI, SK-RCM, SK-SISRA , efficient and effective turnaround

planning and scheduling can be achieved.

Work ListWork Scope

Study

Cost

Estimation

SchedulingActual M·H/

% Tracking

Analysis &

Evaluation

Planning DB

TIMS - Primavera Interface

Template Planning @ TIMS

Critical Path Scheduling @ Primavera

E. T/A Planning & Scheduling

best practices in plant operations & maintenance

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