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Supply Chain Management Solutions for Integrated Petrochemical Complexes

AlMansour Belhadj

AGENDA
Honeywell Process Solutions Industry Trends Business Applications

Who is Honeywell?

Founded in 1886 122k employees in >100 countries A $30.9 billion (2009) Company Global leader in advanced technology products, services and solutions ACS Division = $12.6 Billion
SPECIALTY MATERIALS AUTOMATION AND CONTROL SOLUTIONS (ACS)

AEROSPACE

TRANSPORTATION AND POWER SYSTEMS

Financially Strong and Global HONEYWELL - CONFIDENTIAL Financially Strong and Global

Business Applications Overview

Honeywell Middle East


Established in Sharjah since 1977 Sales, Projects, Engineering and Support Center in: United Arab Emirates Kingdom of Saudi Arabia (3 offices) Oman Qatar Kuwait Iraq Training facilities (Automation college) Integration center (KSA, UAE, Kuwait)

HONEYWELL - CONFIDENTIAL

Business Applications Overview

Our Mission - Improve Business Performance

Safety

Reliability

Efficiency

Sustainability

Protect People, Assets & Processes

Improve Availability Reduce Downtime

Improve Productivity Reduce Cost

Maximize Return on Investment

Honeywell solutions address these critical business performance issues


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Business Applications Overview

What are the Business Pressures?

Safety
Reduce and mitigate incidents Improve emergency response Reduce human error Reduce unexpected equipment failures Maintain stable control

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Business Applications Overview

What are the Business Pressures?

Reliability
Minimize unscheduled downtime Protect high capital cost assets: Mature assets and retiring workforce New assets and inexperienced workforce in emerging regions Enhance asset life Reduce/eliminate abnormal situations

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Business Applications Overview

What are the Business Pressures?

Efficiency
Increase throughput and yield Improve Planning and Scheduling Be flexible to meet product demand volatility Increase energy efficiency Operate consistently Capture best operating practices Meet increasingly stringent product specs including biofuels while minimizing give away Reduce overall cost

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Business Applications Overview

What are the Business Pressures?

Sustainability
Maintain & increase return on investment Reduce lifecycle costs Meet environmental regulations Transfer knowledge from aging to young workforce Minimize energy usage and emissions Use alternative energy resources where available

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Business Applications Overview

Layers of Automation

Level 5

Corporate Planning and Logistics (ERP)


Level 4

Business Applications (MES)


Level 3

Advanced Applications
Level 2

Control Systems

Level 1

Field Instruments

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Layers of Automation Collapsing Over the Next decade HONEYWELL - CONFIDENTIAL Layers of Automation Collapsing Over the Next decade

Business Applications Overview

Collapsing Middle Layers


Level 5

Corporate Planning and Logistics - ERP

Process Knowledge System

Level 2-4
Analyze

Business Applications (MES)

Advanced Applications

Optimize

Control Systems
Control

Level 1

Field Instruments

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Honeywell pioneers single architecture to enhance safety, Honeywell pioneers single architecture to enhance safety, HONEYWELL reliability,CONFIDENTIAL reliability, efficiency efficiency

Business Applications Overview

Driving towards an Integrated Vision

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Business Applications Overview

AGENDA
Honeywell Process Solutions Industry Trends Business Applications

Refining and Petrochemicals Drivers


Lower unit manufacturing cost
Improve feedstock selection
Explore variable feedstock's

Improve plant asset utilization


Furnace severity optimization Physical and quality constraints Recycles Inventory management

Improve reliability and increase on-stream factor Increase capacity utilization Reduce losses
Performance monitoring (plan versus actual) Production accounting

Planning for market positioning


Strategic planning, budgeting Make the right product at the right time

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Business Applications Overview

Petrochemical Supply Chain Challenges


NGLs

?
Refineries Olefins Plant Ethylene

?
Crude Oils

?
?
Spot-Market
(variable feed)

? ?

Propylene

Polymers Contract Naphtha

C4s, Aromatics

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Business Applications Overview

These Market Drivers Require To :


Be More Responsive (Feedstock Selection Optimization)
Deal with volatile merchant market Proactively move on feedstock opportunities and price changes Make the right product at the right time

Improve Asset Utilization (Operations Optimization)


Reduce feedstock conversion costs Improve reliability and on-stream factor Increase capacity Reduce by-product losses

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So What Do We -Need to Optimize'? HONEYWELL Need to So What Do We CONFIDENTIAL Optimize'?

Business Applications Overview

Holistic Approach to Optimisation


Holistic approach mandates the optimisation of performance in both horizontal and vertical dimensions :
Horizontally - from Feedstock source to final customer cover complete supply chain Vertically - 'Level-1 to Level-5 or 'Field-to-ERP Provide tight integration of all plant applications with the supply chain outside of the plants

Holistic approach also mandates the need for tight integration of all plant and supply chain solutions, including any legacy or thirdparty applications

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Business Applications Overview

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Business Applications Overview

Holistic Approach to Optimisation

Common Limits & Boundaries Common Data & Visualisation Safe & Secure Environment Field Instruments & Control Devices Process Simulation & Design, Equipment & Catalysts

Enraf

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Reviews, Reports

Execution HONEYWELL - CONFIDENTIAL

Decisions

Business Applications Overview

Holistic Approach to Optimisation Work Processes


Demand Forecasting Enterprise Resource Planning

Enterprise Planning

Inventory Targeting

Performance Management

Feedstock Acquisition & Trading

Planning

Distribution Planning Products Trading

Feedstock Transportation

Scheduling

Distribution Scheduling Backcasting Distribution Transportation Yield Accounting

Plan

Perform

Movement Management

Perfect
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Operations Management
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Business Applications Overview

Solution Integration Is The Key


Dont Think Application Think Integration!
Not just 'interfacing' - integrating Functionality-centred, loose coupling

Enterprise Integration ERP Systems

Business Hiway
Partner Solution Business FLEX Advanced Solutions 3rd party

Plant Historian Control System

Plant Historian Control System

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Integration of Applications is Essential HONEYWELL - CONFIDENTIAL Integration of Applications is Essential

Business Applications Overview

Holistic Project Delivery


Holistic Automation Includes
Supply Chain Management Planning & Scheduling Operating Envelope Management Operations Management Asset Management Production Management Performance Management Integration Security & Access Control Control System Safety Systems Instrumentation

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One Stop for Application and Integration: IMAC HONEYWELL - CONFIDENTIAL One Stop for Application and Integration: IMAC

Business Applications Overview

Integrated Main Automation Consulting (I-MAC)

BR Consulting: Identifies Business Processes

OR Consulting: Identifies Operations Work Processes


Operations To Business Integration Historian Operations Management Production Planning/Scheduling LIMS Production Reporting & Accounting Operating Instructions Shift Hand-Off ERP Integration Material Replenishment Planning (MRP) Production Operations Alarm Management Automated Procedural Operations Mobile Operations Maint. Work Order Entry Mobile DCS Handhelds for field rounds Integrated Control Safety System (ICSS) Remote Operations Process Simulation Training Operator Training Simulator Virtual Reality Scenarios Skills Assessment Graphic Building Sulfur Terminal Automation Advanced Process Control & Optimization (APCO) Field Real Time Optimization (RTO) Well Testing/Metering Integrated Field Modeling (IFM) Slug Management Pipeline Operations Leak Detection Control Operator Ergonomics & Interaction Commissioning 1st Year Operations Support Safety & Security Gas Detection H2S Explosibility Personnel Tracking/Personal Gas Detectors Fire Detection & Suppression Process Non-Process Mustering Video Process Security Access Control Plant Well Pads Sulfur Terminal Payroll/HR Integration Perimeter Security Cameras Radar Microwave Fence Line Emergency Response Documentation for Safety Shutdown Testing Public Address Systems Operator to Operator Communication Maintenance & Reliability Corrosion Detections & Monitoring Management Equipment Run Time Plant Asset Management Maintenance Management System (MMS) Parts Management and Warehousing Condition Monitoring System (CMS) Equipment Health Monitoring (EHM) Field Device Management (FDM) Electrical Diagnostics Documentation/Information Asset Management (IAM) Drawings Procedures Management of Change MSDS Systems Networks Databases Project to Ops Handover Calibration Training Loop Tuning Configuration System Maintenance Document Management Security Work Permitting Remote Support Facilities & Construction Asset Tracking Vehicles Equipment Networks & Telecommunication Constructions Phase Operations Phase Construction Camps Permanent Camp Lay-down Yard Warehouses HVAC Modular Buildings

Process Readiness: MAC/TSI FEED Ensures Fit for Purpose Infrastructure Supports OR/BR

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Business Applications Overview

AGENDA
Honeywell Process Solutions Industry Trends Business Applications

Integrated Refining and Petrochemical Complex

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HONEYWELL - CONFIDENTIAL

Business Applications Overview

Integrated Refining and Petrochemical Complex


Refining Complex composed by:
Crude Toping Vacuum Distillation Unit VGO Hydrotreater Alkylation Unit Ethane Cracker High Olefin Fluid Catalyst Cracking complex Gasoline Blending Associated Utilities, tank-farms and marine facilities

To feed Petrochemical plants producing:


EPPE LLDPE HDPE PP Homopolymer PP Block Copolymer MEG PO

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Business Applications Overview

Holistic Approach to Supply Chain Optimization


CRUDE CRUDE OIL OIL DATA DATA CrudeAssay Information ProductionPlanning ProductionPlanning (Refineryand (Refineryand Petrochemicals) Petrochemicals) Forecasted Demands ERP ERP

ASSAY2 Effective Boundaries Backcast Plan PERFORMANCE PERFORMANCE ANALYSIS ANALYSIS Analysis Reports Production Analyst Verified ProductionData Data Data Reconciliation Reconciliation & & YieldAccounting YieldAccounting Polymerfeedstock Requirements/ Productwheelinfo POLYMERSCHEDULING/ POLYMERSCHEDULING/ REPLENISHMENT REPLENISHMENT (SupplyChain) (SupplyChain) Plan

RPMS

SAP
Reports

TargetThroughputs /operatingmodes PLANT PLANT & & BERTH BERTH SCHEDULING SCHEDULING Optimised Recipes

TargetRecipes BLEND BLEND OPTIMISATION OPTIMISATION NIRblendcomponent NIRblendcomponent analysers analysers

Production Scheduler

Inventories Inventories Optimised Recipes BLEND

Blendingsystem Blendingsystem

BLEND BLEND PERFORMANCE PERFORMANCE ANALYSIS ANALYSIS

LIMS LIMS

ThirdPartySolution

Picaso

Blend Management

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HONEYWELL - CONFIDENTIAL

Business Applications Overview

Holistic Approach to Supply Chain Optimization


Complete Supply Chain, from Crude Oil supply through refinery and petrochemical production

- Right up to the final major customers - Includes the associated logistics required to get all the products to
their final points of sale.

Solution based on complete integration of several functions:


The planning of the complete business The scheduling of the process units, blends and berths Multi-product, multi-period blend optimisation Planning performance analysis Blending performance analysis

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Business Applications Overview

Benefits of a Holistic Approach


Leading companies are using a holistic approach to impact many critical performance objectives, enabling organizations to:
Take action based on demands, plans, schedules and activities that are consistent and integrated across the supply chain Have visibility across the value chain for all stakeholders Improve feedstock selection and production planning decisions Rapidly evaluate distressed trading opportunities Increase sales volumes of higher margin products Minimize product downgrades Minimize premium freight shipments Minimize demurrage Reduce safety stock levels while minimizing stock-outs Balance system inventory Improve responsiveness to customer/market demands Improve customer satisfaction Leverage information and event notification to quickly determine the actions in response to a disruption or opportunity
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Business Applications Overview

Benefits of a Holistic Approach


Tight integration of all necessary point solutions within and without the plant(s). All constraints are made visible and are considered very early in the production process. Accurate demand forecasting and supply chain event monitoring provide more accurate multi and single plant optimisation possibilities. Accurately implemented in the scheduling function and subsequently in the production and operations management areas via APC and DCS. With optimum allocations of feedstocks to jetties and onsite tanks, optimum feed quality can be assured for the furnaces. Enables more steady and harmonious furnace operations, leading to better and more reliable production. Accurate yield accounting and data reconciliation then provide an advanced basis for improved performance management via advanced plan vs actual comparisons.
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Conclusions Automation Excellence Requires Holistic Approach - Current industry thinking, and the strategy of the Best In Class Integration is the Key - Point solutions are pointless - Think Integration, not Application! Automation Excellence is Core Competency of Honeywell - Safety, Reliability, and Efficiency from the Sensor to the Boardroom Honeywell as your Integrated Main Automation Contractor (IMAC)

Consider an Integrated Approach at Your Site - Integrated Operating Envelope Management - Integrated Supply Chain Management

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Business Applications Overview

honeywell
Thank You
Hence to fight and conquer in all your battles is not supreme excellence; supreme excellence consists in breaking the enemys resistance without fighting.
Sun Tzu (65th century B.C.), Chinese general. The Art of War

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Business Applications Overview