Improving Return on Chemicals Assets Using Integrated

Transcrição

ARC WHITE PAPER
By Valentijn de Leeuw
JUNE 2015
Improving Return on Chemicals Assets Using
Integrated Engineering, Operations,
Maintenance and Compliance Management
Executive Summary .................................................................... 2 The Chemical Industry ................................................................. 3 Asset Management Challenges for the Chemical Industries ............... 6 Integrated Engineering, Operations and Asset Management .............. 8 Good Asset Management Practices ...............................................13 Integrating Asset Information With Risk And Compliance Management15 Expected Benefits and Impacts on Risk and Efficiency .....................16 Recommendations......................................................................17 References ................................................................................18 VISION, EXPERIENCE, ANSWERS FOR INDUSTRY
ARC White Paper • June 2015
Executive Summary
The chemicals industries is very diverse in terms of products and processes,
the nature and state of the assets. In the developed world, assets are on
average older, intrinsically less reliable and efficient, but in these regions
companies have the highest skilled personnel and most advanced methods
in place to compensate for it. The regular economic cycles in petrochemicals and polymers have been replaced by irregular, more regional economic
ups and downs, with high amplitude. The high growth in developing Asia
is slowing down significantly. The oil and gas boom in North America has
created growth in the chemical industry in the region in the recent years.
The recent drop in oil price has created economic relief for chemical producers globally but demand may suffer because of the economic slowdown.
The best strategy for the future is likely one of high flexibility and adaptability to react
to global and regional market fluctuations, product
innovations, feedstock costs and regulations.
A first step is to reduce the cost of assets throughout their lifecycle. This
includes effective engineering, leading to more flexibly and lower cost designs that can be operational more quickly. Engineering and design cost
can be reduced by make information transparent across disciplines, regions,
offices and sites and easier to reuse. Sharing and transparency must be
extended across the enterprise borders to engineering, procurement and
construction firms (EPC’s), subcontractors, to schieve tighter collaboration.
Collaboration during design and construction has significantly increased
during the past years, and as contractors provide more and more services
for plants in operation too, it is expected that the importance of efficient
cross-enterprise collaboration will further increase.
Compliance of processes and equipment can be efficiently handled when
requirement engineering is electronically linked to qualification processes.
Information should also be reused across engineering, operations and
maintenance within the corporation, and by their subcontractors. As all
stakeholders work on the same asset, they should all work off the same
asset information to coordinate and optimize their plans and actions. This
concept is referred to as integrated engineering or integrated operations.
In a second stage, these efficient processes can be applied to more productive and flexible process designs using intensification, modularization, and
mobile processing units.
2 • Copyright © ARC Advisory Group • ARCweb.com
ARC White Paper • Juni 2015
Accurate asset information requires a state-of the art application and data
repository that must be complemented by processes for keeping asset information up-to-date. People must be trained and motivated to use them.
When these key success factors are in place, operations and maintenance
can be optimized, to sustain a compliant and reliable asset at the lowest cost
and with the lowest inventory of spare parts. This includes modern asset
management strategies, such as predictive maintenance and condition monitoring, and the simultaneous optimization of asset capabilities and
production requirements.
Companies that have pioneered these new practices, report increased engineering
productivity,
improved
handover,
accelerated
operational
readiness, reduction of regulatory compliance cost, reduced maintenance
costs and improved reliability.
The Chemical Industry
The chemical industry is far from homogeneous. It ranges from the largescale commodity production of petrochemicals and basic inorganic chemicals, to small-scale specialty and performance chemicals.
Organic and
inorganic chemicals and their production processes are as diverse as chemicals produced using chemical routes and those produced using biochemical
processes that involve biological cells, yeasts or biocatalysts. Polymers are
yet a completely different class of materials with their own associated
processes.
cesses
Pro-
can
be
divided into continuous and batch
processes,
and
while this division
largely
sponds
correto
base
chemicals
versus
specialty
chemi-
cals, there is a
growing number
of exceptions to
this rule.
Regional Distribution of Sales in Chemicals (Source CEFIC.org)
Petrochemicals
Copyright © ARC Advisory Group • ARCweb.com • 3
have long since had the reputation to go through cycles of oversupply and
scarcity every five to six years. In times of scarcity, prices soar and production must be maximized.
Plants are then extended and debottlenecked.
The increases in production creates a surplus which causes supply to exceed demand, thus prices drop, and plants are optimized for production
costs, including energy and material efficiency.
This regular pattern has
dramatically changed since ten years.
The chemicals production in Asia has grown by a factor of 2.5 since 2003. It
has overtaken the US and European production and left these regions far
behind in terms of global share. In developing Asia, growth has been very
high, mainly coming from greenfield projects. As a result, assets are modern and asset age is low.
Very recently growth in developing Asia is
slowing down significantly and may move to new emerging countries.
In Europe, the average growth rate of chemicals sales during the five years
preceding the crises was around 5 percent, and this dropped to an average
of zero after the crises. The drop in sales after the crisis was 12 percent,
followed by a year
of growth of 10
percent, since then
sales
Strong
stagnate.
players
concentrated production
of
chemicals in less
plants,
mothball-
ing other plants
for the time being.
Smaller
players
had to live with
less efficient, lowTen-year Evolution of Regional of Sales in Chemicals
(Source CEFIC.org)
er running rates.
While
North
American chemical companies suffered in a similar way during the crises,
the recovery was much faster due to the shale oil and gas boom. While oil
prices remained high until the end of 2014, the prices of feedstock from
natural gas dropped considerably, providing opportunities for recovery
and investment in the US.
The dramatic drop of the oil price impacted chemical feedstock prices globally, decreasing production cost and improving profitability.
From a technological perspective, the industry is on the brink of major
changes. The pressure to improve sustainability and production cost as
well as increasing flexibility, to be able to adapt to demand fluctuation, has
F3 Factory Project: Flexible Fast Future
Main Benefits obtained:
led to new process technology concepts.
During the past years, process intensification and modularization have proven
•
Capex reduction up to 40%
their feasibility in a series of pilot plants
•
Opex reduction up to 20%
in Europe and the US. The modular mini-
•
Faster time to market
plants can be adapted easily to products
•
Reducing energy consumption up to
30%
and product qualities, some are mobile
•
Solvent reduction up to 100%
•
Footprint reduction up to 50%
•
Reduced transportation
and can travel to be ‚near shored’ close to
demand or resources. Rather than scaled
up, these plants are multiplied and put in
parallel to meet demand, and can just as
For details see www.f3factory.com
easily be decommissioned to be used for
other types of production. In some cases
these plants involve the transformation of batch to continuous production.
The first of these plants are coming on-line, and it can be expected that the
technology will transform the asset landscape of chemical production during the coming years and decades.
The industry as a whole has worked hard on its reputation and accepting
its social responsibility. National and regional associations such as CEFIC,
and the global, International Council of Chemical Associations communicate on the chemical industry’s ethic „Responsible Care“. The goal is to
improve health, safety and environmental performance, sustainability improvements, and includes a long-term research initiative that aims at
improving the understanding of the long-term impact of chemicals on
health and environment.
Concrete examples are the joint efforts with the UN to promote safe management and transportation of chemicals. Furthermore the fact that the
energy input per unit of chemicals produced in Europe has halved in a little
more than twenty years is significant. Indeed, energy efficiency and sustainability in general have been an important area of investment by the
chemical industry.
In any case, the regulations the chemicals industry
needs to comply to, will only become more stringent. Obligations to improve energy efficiency, regulations regarding process safety, Seveso
regulation as well as REACH, aim to protect people, wildlife, environment
and ultimately the industry itself. This comes at a cost, unless implementation is efficient and effective.
Asset Management Challenges for the
Chemical Industries
The chemical industry is very diverse and, depending on the region, features various characteristics.
We can broadly distinguish the following
categories:
•
Aging, commodity producing assets. These are most likely to be found
in advanced economies, and need to be operated and maintained at the
lowest operating cost possible. At the same time, they need to operate
reliably, safely and be compliant with regulations. Asset information is
at risk of being dispersed on paper and in various systems.
•
Recent assets for commodity products using classical, mostly continuous process technologies. These assets are mostly found in growing
economies, for example in South-East Asia, but also in the USA. Asset
information is more likely to be available in electronic format. Reliability, safety and compliance are likely to be satisfactory, but need to be
maintained.
•
Assets for specialty chemicals, specialty polymers, agrochemicals, food
and pharmaceutical ingredients, mostly using traditional batch processing. The products have a high innovative content, and plants are
regularly adapted and reengineered, or have been recently constructed.
In these cases, it is likely that electronic asset information is available.
Regulatory compliance is an increasing cost factor.
•
Assets using modular and/or intensified process technology for chemicals or polymers. Existing plants are built for research and process
development purposes. The first commercial modular plants are coming on-stream. Asset information is available in electronic form.
From an engineering and asset information management perspective, a
number of challenges can be distinguished:
•
In plants under construction by engineering procurement and construction
firms
(EPC’s),
owner-operators
(OO’s)
require
a
tighter
collaboration than before. Being responsible for the plants performance
and regulatory compliance at startup, they require design reviews in
electronic form as well as the tracking of construction and commissioning progress against electronic documents.
More and more
qualification processes use electronic design and requirement documentation, with electronic sign-offs.
•
In recently constructed plants, the asset information built up during
engineering and construction is traditionally handed over on paper,
and is often incomplete or outdated at the moment of transfer. NIST estimates that the cost of information losses during handover to be 1.8%
of capital expenditure. There is a huge opportunity to improve the process by making it electronic, and make sure the information is reused.
•
In existing plants, when engineering or maintenance trouble shoot an
operational issue or need to start a modified project, they first spend
time – sometimes weeks or months - to find out the actual status and
performance of equipment andpiping, the available or missing spare
parts, etc., before starting their actual work. Further time is lost in ordering missing parts or equipment, increased time to repair, and
multiplying travel times. In other cases wrong or excess parts are available,
Information Handover
O&O
EPC + O&O
Asset$Data$Quality$
Integrated$
Approach$ EPC
which
crease
working
capital
without
benefit.
Incom-
plete, inaccessible,
EPC$
and
inaccurate
asset information
Information Losses
Paper-based Handover
O&O$
Legal Requirement Level
therefore leads to
a longer project
Sh
ut
do
w
n$
de
sig
n$
Re
$
M
ai
nt
en
an
ce
io
ni
ng
$
m
iss
on
$
Co
m
Co
ns
tru
c9
En
gi
ne
er
in
g$
duration,
FE
ED
$
in-
“mean
time
repair”
(MTTR),
Plant$Asset$Lifecycle$
to
higher operational
Asset Information Quality and Quantity During Handover
longer
and
capital
expenditure than
necessary.
pliance
Comcosts
increase, or compliance becomes impossible as accurate information
cannot be produced at any point in time. NIST estimates the cost of information losses in the operate-maintain phases of the asset to 2.4 % of
the capital expenditure cost, higher than the cost of losses during handover.
Chemical plants are usually part of large industrial complexes, where
plants, and utilities and storage facilities are distributed over the premises.
It is a real challenge to keep track of the asset state, as operations, maintenance and contractors work independently on the same assets.
These challenges imply that it is not a trivial task to obtain a complete, accurate and up-to-date virtual image of distributed assets, easily and rapidly
accessible to office and field workers
throughout avast geographical area.
Asset Management Challenges For The
Chemicals Industry
The different types of assets have partly
•
Assets distributed over sites, sites
geographically dispersed
different regulatory obligations, but for all
•
Information accessed by several
stakeholders
will continue to increase in the future. The
•
Requirement for long term asset and
operational efficiency
•
Regular modernization and / or
adaptation of plants
into a responsibility of the owner-operator
•
Regulatory pressures, sustainability ,
security and safety
based quantitative risk management.
•
Reactivity and appropriate reaction
upon accidents
How engineering information of greenfield
of them regulatory pressur is increasing and
spirit of these regulations tends to evolve
from describing the means for protection
to be able to demonstrate performance-
or plant modification projects can be handed
over
efficiently
to
operations
and
maintenance is discussed in the next chapter “Integrated engineering and
asset management”. The chapter “Integrating Asset Management with Risk
and Compliance Management” discusses an extension of this concept.
How good asset management can improve the efficiency and effectiveness
of maintenance, and how asset information of existing plants can be converted efficiently to an electronic format is discussed in the chapter
“Managing Assets Efficiently”.
Integrated Engineering, Operations and
Asset Management
Whether asset information is built up during engineering and construction,
or by operations and maintenance of an existing installation, in the end
there is always an installation in operation that undergoes maintenance
activities and engineering projects related for reasons of improvement,
troubleshooting or debottlenecking.
As a result, two or more organizational entities work on the same assets,
using – ideally - the same asset information: engineering to design changes
and improvements; operations and maintenance for day-to-day activities
and long term asset management. To streamline the collaboration between
those entities, the concept of “integrated engineering” was created.
The “Integrated Engineering” Concept
In 2005, Dr. Thomas Tauchnitz published a vision for “integrated engineering” (Tauchnitz, 2005), based on three basic principles: “[…] every
information is generated and maintained at only one location, existing knowledge
is reused where possible, and the software tools stay interfaced while the production
plant is in operation.” He sketched the workflow as starting with process
design followed by the transfer of the resulting
Tauchnitz’ Principles for Computer
Integrated Production and Engineering
process information to an engineering software
tool, common to all engineering disciplines
•
Every information is generated and
maintained at a single location
involved in front-end and detail engineering.
•
Existing knowledge is reused where
possible
posed to implement modular engineering –
•
The system remains in use while
the plant is in operation
To increase engineering efficiency, he prousing standardized, generic engineering modules
comprising
all
functions
built
and
maintained within the common tool.
For example, a module for a pressurized vessel would contain pressure
measurement and control, valves for material transfer, level control, safety
equipment and automation, stirring etc.
The corresponding equipment
lists, design documentation, safety procedures, testing and qualification
procedures would be part of the template as well. Instead of engineering
every new equipment, replacement, modernization or repair action from
scratch, the engineer would instantiate a module from the library, adapt it
as needed, and then integrate it within a larger system.
Since all disciplines have access to the same up-to-date information, collaboration is improved and errors and iterations are minimized.
Many plants apply a wide variety of control systems. To further increase
engineering efficiency, control engineering should be done at a generic level, enabling reuse of designs. The designs would be used to configure
systems, and compile the generic designs within different DCS brands.
The next step is the transfer of the engineering information to operations
and maintenance and keeping it up to date with the goal to transform “asbuilt” information into “as-maintained” information to ensure accuracy and
save time.
Therefore, “integrated engineering” incorporates different disciplines during design and build stages, and also integrates engineering, operations,
maintenance and automation during operate and maintain stages of the
installation life cycle.
A Solution for Integrated Engineering,
Operations and Maintenance
Finally, the vision includes the imple-
COMOS, Siemens’ software solution for plant
across the extended enterprise, reducing
engineering and operations in the process
industries, supports process design, basic and detail
engineering activities, e.g. like piping and
instrumentation engineering as well as electrical,
instrumentation and control engineering. In
addition, COMOS supports plant operations and
maintenance management up to decommissioning
(see separate call-out). It offers document
management solutions including workflow
enforcement and change control as well as risk
evaluation, testing and qualification options for
regulatory compliance. With its object-oriented
approach and single database for all lifecycle
mentation of standardized processes
the number of systems and interfaces,
and organizing centralized maintenance
and support and promoting companywide knowledge management.
Integrating Engineering with
Operations and Asset
Management
Today the COMOS software solution is
used throughout many process industries, to implement this approach.
Its
phases and disciplines, COMOS provides
centralized, object oriented data man-
instantaneous and complete transparency of
agement capability, in conjunction with
information related to a plant object for all
stakeholders.
Additional benefits of Integrated Engineering:
•
•
•
Engineers have direct access to information
changed by colleagues in other disciplines.
Collaboration between engineering,
operations and maintenanace is facilitated
Object-orientation enables modular
engineering. Applied throughout the
enterprise, it improves standardization that
generates time and cost benefits, facilitates
cooperation and increases flexibility in
personnel assignment
Operational readiness can be predicted
more reliably and reached sooner.
engineering and user libraries and collaborative
workflow
facilitates this.
modeling
Enabled for modular
engineering, the solution is particularly
efficient for designing modular production plant.
In the case of projects, engineering procurement and construction companies
and their subcontractors do all their
engineering work with computer-aided
design software.
However when an
installation is commissioned, documentation is often still handed over on
paper. Sometimes it arrives with delay or remains incomplete. As a result
critical engineering and configuration information is lost that could otherwise provide the owner-operators with significant operations and
maintenance value.
With hard-copy paper documents for operations and maintenance, changes
are documented as hand-written corrections, the so-called redlining. In the
best case, electronic documents are updated afterwards. This process is
both time-consuming and error prone, information is regularly out of date,
and interactions between disciplines lead to unnecessary iterations.
Many engineering databases and systems do not have the functionality to
support operations and maintenance (and vice versa).
A Software Application Supporting Operations
and Maintenance
COMOS supports maintenance management, for
maintenance management system must
be primed with “as-built” information,
extracted from the handover documents.
both planning and execution of multiple
maintenance scenarios, inspection, and provides
As a result, a
When the company needs to
modify, maintain or modernize a plant
mobile and shopfloor applications for field personnel.
or a production line; plant personnel
COMOS provides instantaneous and complete
often have to start by tediously search-
transparency of information related to a plant object
ing for as-built and as-maintained data
for all stakeholders. Configurable workflows enable
to enter into the engineering systems.
different disciplines and roles in maintenance and
One can easily imagine the time this
operations to collaborate in a structured manner.
takes and the risk of inaccuracy and
Based on these capabilities:
•
•
•
•
incomplete data this involves.
Maintenance decisions and activities become
more accurate and improve reliability while
reducing cost
The time to find information is reduced
substantially, which leads to productivity
improvements and improves adequacy of
actions in emergencies.
Configured workflows enable compliant,
quality controlled processes, projects, and
document generation
Plant documentation is kept up-to-date.
An application that covers both engineering
and
operations,
makes
handover electronic, avoids information
losses, and allows to maintain asset
information naturally, transforming it
from “as-built” into “as-maintained”,
resulting in an accurate electronic image of the installation.
Now, any
operator or maintenance engineer, can
see any static or dynamic asset information from his desk or handheld in
the field.
This information is always
up-to-date, at any point in time. It is important that the owner-operator
owns the data and the information environment, as part of his responsibility for the proper functioning of the asset. His responsibility also includes
managing and auditing the internal and inter-company processes concern-
ing the asset data (see also next section). As inter-company collaboration is
becoming more frequent and important, a standard data exchange format
rmation Management (AIM) and Information Handover
between
tools, supporting this collaboration is now required by the indus-
try. The DEXPI working group of DECHEMA addresses this by creating a
standard compatible with ISO 15926 on data integration and hand-over.
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Context Management
– A New
Category
AIM Solutions
loading
personnel,
while of
guaranteeing
accurate and up-to-date asset
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control system, provided
the automation provider
adopts the standard. This
paves the way for enormous efficiency gains in
control
engineering
and
maintenance for the future.
With its extended capabilities for engineering, as well
as maintenance and vertical
integration
with
Enterprise Resource Planning systems (ERP’s), and
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ARC’sLifecycle
AIM Solution
Map
ARC’s Model for Asset
Information
Management,
Providing Asset Information Quality and Usability for
Engineering and Operations/Maintenance
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systems
above,
as
de-
and
the
capability of real-time sharing of asset data to the different disciplines
involved, integrated engineering, becomes an attainable target.
A recent case study, involving the worldwide rollout of COMOS at the
pharmaceutical company Novartis, demonstrated that the integrated engineering vision implemented in this type of application can be applied
successfully to both brownfield and greenfield projects, in engineering,
operations and maintenance. Novartis decided not only to have all new
asset information in electronic form, but also to transfer all existing paper
documentation into COMOS over time. Today, Novartis estimates that the
engineering effort is reduced by 10 to 15 percent on an ongoing basis. ARC
believes it is very likely that the application of integrated operations will
Benefits of Integrated Engineering
and Operations
The usage of a central, consistent and
up-to-date information source
interfaced to all relevant business
systems for design, engineering,
construction, handover, operations
create similar benefits in chemicals. The case study
is described in more detail in a white paper about
the use of COMOS in the pharmaceutical industry.
Users report that the engineering effort is lowered
considerably compared to former practices. Since
modular engineering techniques and integrated,
and maintenance can help increasing
cross-discipline engineering practices affect people’s
productivity, shortening project time,
work processes and practices, a successful imple-
accelerate operational readiness, and
mentation also requires careful planning of change
improve regulatory compliance.
management, including user participation and con-
tinued management coaching and support.
Good Asset Management Practices
Good asset management is becoming an expected normal practice in mature organizations around the world. The formal documentation of good
practices for management of physical assets, has been led by the British
Standards Institute in cooperation with the Institute of Asset Management
(IAM) and close to fifty organizations from fifteen industries in ten countries.
The resulting PAS 55 standard has been published in 2004 and
revised in 2008. It has been widely adopted and has become the basis of the
ISO 55000 standard and describes the following important themes in the
standard:
•
Alignment of organizational objectives feeding clearly into asset
management strategies, objectives, plans and day-to-day activities.
•
Whole life cycle asset management planning and cross-disciplinary
collaboration to achieve the best value combined outcome.
•
Risk management and risk-based decision-making.
•
The enablers for integration and sustainability; particularly leadership, consultation, communication, competency development and
information management, but also quality control and continuous
improvement.
The requirements for audit and documented information are also defined
by the standard. ISO standards refer to each other for specific aspects. Respectively, for risk management, it refers to the ISO 31000 standard. The
standard gives all principles for good management and governance of the
asset management system and process, however it leaves it in the responsibility of the operator, how and at which level of detail to implement the
standard.
The benefits of good asset management practices documented
by Woodhouse of the IAM, range from significant reduction in downtime,
reduce production costs, reduced total cost of ownership of assets, in-
Components of an asset management system (source bsi.)
creased throughput and reduced maintenance costs and increased output at
no extra cost. An application that supports the implementation of such a
system, and in particular the management of asset information as COMOS
can provide and enable these practices, in an efficient manner.
In Germany, an effort is undertaken to specify how asset information can be
modeled, and what the requirements for asset information attributes are.
While this standard is not available yet, it expected that an international
equivalent will be published, probably focused on industrial asset information and complimentary to the ISO 55000 standard.
Integrating Asset Information With Risk
And Compliance Management
The concern for testing and qualification becomes evermore important in
more and more industries and is a direct result of compliance pressure with
regulations and standards other than ISO 55000, such as the Safe Chemicals
actin the US, REACH in Europe, The EU Seveso directive, functional safety
regulations IEC 61508 and 61511, etc.). Compliance management of asset
characteristics, such as quality of materials, the use of design methodologies, regular inspection schemes, can be performed efficiently in the same
software environment used for engineering. The analysis of risks related to
the process and the equipment, on product quality and equipment reliabil-
Monitoring &
controlling
Definition
& setup
Review &
approval
Validation
report
Validation
master plan
High-level
risk
assessment
Quality, project
& test planning
Review &
approval
Quality report
& handover
Performance
qualification
User requirements
Operational
qualification
Functional design
Detail design
Installation
qualification
Implementation
Test &
confirmation
Creation &
release
Review &
approval
Review &
approval
Systems Engineering Approach for Integrated Asset
Information and Compliance management Requires
Project and Workflow Support
ity can be derived from engineering information and partially automated
by the engineering tool. The results of the analysis must be reflected in
appropriate requirement specifications and designs. Once the design is
finalized, testing and qualification plans can be derived automatically from
the engineering information. In the medium term, testing and qualification
in the plant will be supported by system access on tablets. Test and qualification results, can be linked back to equipment requirements and the risk
analysis, providing compliant validation.
Novartis estimated that in their case, the implementation of integrated
compliance management will lead to an additional 10 percent of savings in
engineering effort. The case study is described in more detail in a white
paper about the use of COMOS in the pharmaceutical industry.
Expected Benefits and Impacts on Risk
and Efficiency
The use of a single, consistent and global data hub such as COMOS, kept
up-to-date at all times by all disciplines, creates instantaneous and complete
transparency of information for each plant object and for all parties. When
engineering and asset information is handed over to operations it can be
kept up to date with minimal effort. This makes trouble shooting operations faster, creates additional efficiency in routine maintenance and other
involved activities, such as replacement or repair of equipment, capacity
extensions or modernization of automation and instrumentation.
Expected gains that directly impact operational and maintenance cost include reduced effort, significantly shortened project times, reduced cost and
effort for compliance with the requirement of up-to-date plant documentation.
Furthermore, faster and more appropriate reactions to operations
issues, reduce both unwanted downtime, including shorter mean-time to
repair, and reduced operational risks. This entails improved reliability and
asset longevity, both impacting capital expenditure.
Engineering productivity or efficiency gains of at least 5 percent are realistic
expectations when using COMOS. Compliance cost can be decreased with
e-compliance approaches integrated with engineering and maintenance.
However the financial and performance improvement of greater reliability
has a much higher value, not to speak about the unmeasurable value of
health and safety.
Benefits in Engineering
Can savings in engineering effort translate into shortened time to industrial
production? When interviewed by ARC, users and EPC’s report that for
companies that work sequentially, the proportion will be very high. Companies, whose major project constraint is time, use a high degree of
engineering parallelism. To compensate for the iterations and rework related to the parallelism, those companies use additional resources. These
companies will experience less shortening of engineering and scale-up
phases. However, they will experience a higher-than-average impact on
total engineering efficiency. This is because they will recover part of the
non-productive iterations and effort by using an integrated engineering
methodology and a common engineering repository such as COMOS. Very
high degrees or parallelism are found in EPC companies, operating companies report parallelism from close to none, up to roughly two-thirds.
From interviews and testimonials we believe that increased engineering
efficiency of at least five percent is a realistic expectation. Siemens reports
that accepted business cases in chemicals estimate efficiency increases in a
range of eight to twelve percent. Corporate implementations including ecompliance management could reach even higher degrees of improved
efficiency in the range of fifteen to twenty percent. Some EPC companies
mention they can increase engineering efficiencies year over year with a
few percent using good engineering practices and tools.
Recommendations
ARC Advisory Group recommends that chemical companies:
•
Optimize and improve asset management practices as described for
example in the PAS55 or ISO 55000 standards, before implementing
them in a software application. Make sure changes to the installations
are consistently documented in the application.
•
Apply the concept of integrated engineering and integrated operations.
Follow the example of Novartis and implement paperless processes and
documentation, consistently.
•
Analyze process development and plant engineering, operations and
maintenance processes, including information processes. Define global
medium-term goals and evaluate processes and their results. Optimize
the processes and IT landscape and re-evaluate. Make a business case
to quantify the incremental benefits.
•
Make sure organizational units are aligned in terms of goals, incentives
are consistent, and common processes are understood and agreed upon.
When implementing change, make sure the culture change aspect is
given the time and attention required for sustainable improvement.
•
Create oversight and monitor, evaluate, support, benchmark and continuously improve processes and applications globally through
governance and/or corporate excellence initiatives.
•
Promote the usage of the NE 150 standard, to create additional benefits
in engineering, maintaining and modifying control systems.
References
Thomas Tauchnitz, 2005a,“CIPE oder: Die Zeit ist reif für eine Integration
des Prozessentwurfs-, Engineering- und Betreuungs-Prozesses. Teil 1.” (CIPE or: It’s time for an Integration of the Process Design, Engineering and
Plant operation process. Part 1.), atp (Automatisierungstechnische Praxis)
Vol. 47, Issue 10, pp. 36-43.
Thomas Tauchnitz, 2005b, “CIPE oder: Die Zeit ist reif für eine Integration
des Prozessentwurfs-, Engineering- und Betreuungs-Prozesses. Teil 2.” (CIPE or: It’s time for an Integration of the Process Design, Engineering and
Plant operation process. Part 2.), atp (Automatisierungstechnische Praxis)
Vol. 47, Issue 11, pp. 56-464.
ISO 55000, “Asset management - Overview, principles and terminology”,
Reference number ISO 55000:2014(E).
ISO 55001, “Asset management - Management systems – Guidelines for the
application of ISO 55001”, Reference number ISO 55002:2014(E).
“Cost Analysis of Inadequate Interoperability in the U.S. Capital Facilities
Industry”, Gallaher et al, NIST GCR 04-867, August 2004.
Analyst: Valentijn de Leeuw
Editor: Constanze Schmitz
Acronym Reference: For a complete list of industry acronyms, refer to our
web page at www.arcweb.com/Research/IndustryTerms
AIM
Asset Information Management
DCS
Distributed Control System
EPC
Engineering Procurement and Construction company
EU
European Union
F3
Flexible Fast Future
IT
Information Technology
MES
Manufacturing Execution System
NIST National Institute of Standards and Technology
R&D Research and Development
Founded in 1986, ARC Advisory Group is the leading research and advisory
firm for industry. Our coverage of technology from business systems to product and asset lifecycle management, supply chain management, operations
management, and automation systems makes us the go-to firm for business
and IT executives around the world. For the complex business issues facing
organizations today, our analysts have the industry knowledge and first-hand
experience to help our clients find the best answers.
All information in this report is proprietary to and copyrighted by ARC. No part
of it may be reproduced without prior permission from ARC. This research has
been sponsored in part by Siemens. However, the opinions expressed by ARC
in this paper are based on ARC's independent analysis.
You can take advantage of ARC's extensive ongoing research plus experience
of our staff members through our Advisory Services. ARC’s Advisory Services
are specifically designed for executives responsible for developing strategies
and directions for their organizations. For membership information, please
call, fax, or write to:
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Improving Return on Chemicals Assets Using Integrated

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