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)
Best Practices of Operations
■ 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%
Best Practices of Operations
■ 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
Best Practices of Operations
■ 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
Best Practices of Operations
■ 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
Best Practices of Operations
■ 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$2MM/yr for a 70M BD Blending of SK Corporation
Best Practices of Operations
■ LBO
HC
o Process Scheme
VDUCDW(Catalytic
Dewaxing Unit)
H/F(Hydro-
Finishing)
Fracti-
onator
YUBASE3
YUBASE4
YUBASE5
YUBASE6
YUBASE8
LBO
(ISO - Dewaxing)
o Process Features
- The technology for the integration of those units was established by SK
Corporation itself which has been registered in many countries as a patent.
- All YUBASE are API GroupⅢ(Viscosity Indexes are above 120) category.
- Hydrocraked-Isomerized base oils : Hyrocracking-Isodewaxing process is the
most economical way of producing API Group III base oils even there are
many variables involved in its economy.
Best Practices of Operations
■ LBO
o Characteristics of Product Quality
- Excellent Oxidative and Thermal Stability
- Very Low Volatility
- Very Good Viscosity-Temperature Behavior andLow Temperature Properties
- Similar to PAO in General Performance
- No Toxicity
Best Practices of Operations
■ Anti-Coke
• Furnace Tube Coke Problem at Naph Cracker
Advantages
Effective anti-coking by
Suppressing catalytic coke
Develop Chemical On-line
Coating Method
Apply the coating technique
of Solar Cell
Furnace cool-down is not necessary
Short time & easy application
No downstream/environmental impact
Doubling Run-length
Reducing utility consumption
Increasing tube service life
Benefits
Best Practices of Operations
■ Solvent Cleaning
o Heat Exchanger Fouling of CDU
- Heater load increase(COT decrease => Efficiency decrease)
- Throughput of CDU decrease
- Energy loss
- Bottleneck of T/A interval extension
o Solvent Cleaning Application for the H/E of CDU unit
CIT
(℃)
SOR 1Yr 2Yr EOR
Heat Duty
Saving Portion
Best Practices of Operations
■ Solvent Cleaning
o Effect of Solvent Cleaning(expect 13 million$/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)
Best Practices of Operations
■ 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
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