PROCESS AND PLANT OPTIMIZATION SPECIALREPORT

Are you getting the fullbenefits from your advancedprocess control systems?Myths about automation programs preventcompanies from unleashing their full profit potentialW. M. CANNEY, Aspen Technology, Inc., Houston, Texas

G lobally, many operating companies are reaping sub-stantial benefits from advanced process control (APC)systems. Most majors in the refining and chemical/pet-rochemical industries have extensively, successfully, and nowroutinely applied APC technology ro their largest proccs.singunits. The most widely used incarnation of AI'C is model predic-tive control (MPC) with its capabilities to deal with interactiveprocess variables, model complex dynamic response, maintainthe process at operating limits, and reliably respond to processdisturbances and upsets.

Even with an installed base of over 6,000 applications (count-ing medium- to large-scale), some users believe that much of the"low hanging fruit" for APC has been harvested. This assump-tion is misleading. APC for major processing units (e.g., crudeand vacuum, FCC, reformer, etc.) is now recognized as an indus-try best practice. However, secondary, specialty, upstream andutility units offer attractive opportunities for obtaining eco-nomic benefits from APC. Additionally, APC systems have beenapplied at some of the world's largest facilities and extensivelyin the US. Internationally and at smaller facilities, a significantopportunity for APC benefits still exists.

So what prohibits the continued growth of APC?As in other business and technology sectors, the underlyingbusiness model, available technology and operating en\'ironmenthave significantly changed over time. Of course, an understand-ing of these changes, or more accurately a misunderstanding,creates the mindset for what was once an industry "truth" tobecome a "myth." Myths cloud APC value opportunities forfuture users.

One example is the shift in APC user needs from projectdeployment to a focus on maintenance. While the numberof new APC projects in traditional applications has flattenedor decreased slightly, spending on APC has increased as usersmaintain and improve existing applications. With an extensiveinstalled base and a market with a constrained skill set, thisshift is understandable. Growth of APC applications in severalnontraditional industrial segments (e.g., polymers and specialtychemicals) is at double-digit levels.

Misinterpretation of other industry characteristics and trendscan create myths about how and where to obtain value from

APCBenefits

= (Optimum-Current operation) X/ Capability of \ /Expertise of the\ /Reliability o f \I technology to J [ implementation | j APC project |^capture benefits j \ team / \ mefhodoiogy /

1 /\ / \ / \

Success factors for maximizing APC benefits.

these applications. APC users are driven by prevailing businessneedshow to gain a competitive advantage with low risk,high reward, low capital outlay and minimal resource-consum-ing initiatives. APC has clearly demonstrated a connection tothese business drivers. Such projects deliver high value withminimal capital investment, providing issues associated withrisk and required resources are addressed. Here's a discussion of15 myths that impair the economic value opportunity availablefrom APC applications.

Myth 1: APC is a commodity. This myth implies thatcost is the only criterion for project selection. This assumptionis far from the experience of successful users. Project success isdirectly attributable to tbe skill, experience and toolset of theimplementation team. Nearly all unsuccessful projects can beattributed to a lack of these attributes.

APC implementation is a commodity product, as heart sur-gery is a common medical procedure. Yes, heart surgery is doneeveryday and is practiced by a large contingent ot individuals.However, the risks and benefits for any one case are highlyattributable to the individual practitioner, their experience,methodology and tools applied.

The skill of the lead implementer is a significant factor affect-ing the success of the project. Using an established project meth-odology developed and proven over a large number of previ-ous projectsis the key to containing costs and minimizingrisk. Selecting an APC technology that connects directly withthe skill of the implementer and reflects the project methodol-ogy ensures that the desired benefits will be achieved.

HYDR0CAR80N PROCESSING JUNE 2005 55

SPECIALREPORT PROCESS AND PLANT OPTIMIZATION

1980*s 1985's 199O's 2OOO's

Requiredproof of

Technology Benefits Scale Long-termproposition sustain performance

PI programsbest practices

integrationFirst-of-a-kind

largest applicationsNumber of

applications

enefits for OperatorsChallenges in Instrumentation

ProjectBusiness case

Business unitProject

managementstandards

EnterpriseAvailable man-power

communications

FKS. 2 Progression of large-scale APCbenefits and challenges.

Myth 2: APC projects are less successful than theywere five years ago. Success of APC projects is signifi-cantly greater than at any other time. With an established trackrecord in many industries, first-of-a-kind projects are less noveland are less frequently reported. Applications in new industrysegments are oFten driven by gaining a competitive advantageand frequently considered too proprietary to report. The attrac-tive value opportunity provided by APC has also attracted lesscapable, less experienced, commodity-minded approaches thatare destined for failure.

A simple, practical approach when working with an APCtechnology supplier is to invest the time speaking with othercustomers and reviewing applications that the supplier (andit possible your proposed implementer) has completed. Notrack record corresponds to a poor track record and even greaterproject risk.

Myth 3: You cannot trust vendors/consultants.APC suppliers and consultants are largely similar to vendors inother engineering-related areas. There is a distribution of skills,integrity and motivation. Most experienced and successful APCusers confirm that a relationship model based on a partnershipbetween operating company and technology supplier is the bestlong-term approach. If you cant trust your vendor, you have thewrong vendor.

Trust is based on an established track record for deliver-ing successful applications and addressing important customerissues. In addition, successful users strive to "make the vendorwork for you." The vendor should collect relevant data, provideimportant information, respond to important issues, provideaccess to technical resources, and invest in detailed proposalpreparation and studies. Leading vendors will deliver on theseItems; thus eliminating some project risk, hivest in the vendorand make them invest in you.

Myth 4: I should select a technology provider andthen select the implementer. For the reasons mentionedearlier, selecting the vendor, technology implementer and meth-

odology simultaneotisly is the recommendedapproach. Rarely is the success for a givenAPC project solely attributable to the par-ticular vendor. The individuals who applythis technology are a major deciding factorin a project's outcome. It is unrealistic toexpect the same level of expertise, investedman-hours and application scope as cost ispushed on new projects (i.e., vendors aremade to largely compete on price).

Pushing price and improving return-on-investment (ROl) are a given. However, itis important to understand what you aregetting. As man-hours are decreased, proj-ect risk increases and project deliverablesgo down. Quality-to-cost and risk-to-costtrade-offs are made either explicitly ormiplicitly.

The attractive ROIs from APC projectsprovide margins for negotiating. If you arewilling to pay more, you can generate lowerproject risk and greater benefits. Competi-

tive issues aside, the application's cost and the projected benefitsto be generated are directly related. Scope, the number of value-generating process operating strategies and process variablesincluded within the application should be carefully evaluated.

Myth 5: Choose a small, safe process unit for thefirst application. While the principle of creating an earlysuccess to propel future projects is appreciated, little is provenunless significant benefits are generated and noted technicalchallenges are addressed. The easiest APC benefits are minedfrom large-capacity processes, where the benefits-per-unit mul-tiplier is rhe greatest. Picking a small process application doesnot necessarily diminish the risk.

Complexity in APC applications is often not directly asso-ciated with capacity. The same effort is applied to a small aswell as a large capacity project. For a large-capacity unit, smallprocessing improvements can easily justify the project. In addi-tion, efficiency improvements associated with methodology anddeployment decrease the cost of fiiture projects on lower capacityunits. The real issue is demonstrating benefits that cannot becaptured by any other means. Systematically addressing notedoperational challenges is the power of APC technology (includ-ing methodology and implementer).

Myth 6: The lowest risk way to do APC projects isto justify them one at a time. 1 his depends on the riskthat you are trying to lower. If it is money, this is the wrongapproach. In the early days of APC technology, project selection(which process unit to do first) was the key issue. Currently,most companies with established APC technology are driventoward a programmatic approach where the benefits from APCare obtained through a broad systematic effort to apply thetechnology to a series of plants or applications. The refiningand chemical/petrochemical industries have reported manyrecent success stories. Project cost reductions of 30-50% vs. anindividual project approach report and improved ROI. The pro-grammatic approach offers better economics largely because thedetailed justification and selection phases are greatly reduced.

56 JUNE 2005 HYDROCARBON PROCESSING

PROCESS AND PLANT OPTIMIZATION

Additional savings can be obtained when the user can lever-age expertise and address manpower constraints over a number ofprojects, directly apply best practices and knowledge from previ-ous projects, and systematically address organizational issues (i.e.,training, maintenance and performance metrics). A programmaticapproach also provides quick business relevance, as the multiplieron the benefits number previously discussed for a single plant,now represents the sum for a series of plants.

Myth 7: I don't have the control expertise to con-sider doing an APC project. The critical success factor for aproperly constructed APC project is process unit expertise ratherthan control expertise. The expertise required to be an APC useris substantially different than the expertise required to implementprojects. APC projects bave very attractive ROIs. Well-designedand capable tools and implementers can ensure project success.What these implementers cannot bring to the table is the under-standing of the operational and basic business issues that arespecific to the processing unit. Implementers can provide a pack-aged application or train the user on how to produce the necessarycomponents for a successful APC installation.

Users quickly adapt to leveraging a well-designed APC sys-tem for improved operational and economic benefits. The mostfrequent users of the APC installation will always be the chemi-cal process operator (as opposed to a process or control engineeror tbe system implementer). Their ability to effectively useAPC systems demonstrated hy success in chemical process unitsthroughout the world for a variety of industries, plant sizes andcomplexities.

Myth 8: No other APC user with a process such asmine will discuss this application with me. Frequentlyin new application areas, this myth has some literal truth. Butwhat is unknown to most inexperienced users is how the leadingAPC products provide a generic process solution to each specificplant. Comparing plants in the same industry is often not as rel-evant as comparing plants with the same business and operationalchallenges (e.g., frequent disturbances, grade changes, changingfeed, capacity constraints, limited operator capabilities). Thegreater danger is extrapolating benefits from a plant of the sameprocess type to another facility that has substantially differentbusiness and operational challenges.

Myth 9: My process has too many instrumentationissues to consider APC. APC utilizes the instrumentationtbat produces the greatest impact on processing economics andprovides tbe most information concerning reliable operation.Poor instrumentation is not an issue solely for AI'C. It is an issuefor poor process operations. A well-designed APC benefits studyor "pre-test" {initial technical investigation of the plant) canquantify the improvement in operations available from repair-ing, replacing or adding process instrumentation.

Given equal instrumentation (and less the cases of randomcatastrophic instrumentation failure), APC will always outper-form manual operation in most processing units. The recom-mended approach when lnsrrumentation issues dominate pro-cess operations is to do a study, along the lines of the first stepsof established APC methodology, detailing and quantifying thebenefits of specific instrumentation repairs. The APC paradigmprovides specific motivation and purpose to recommended

repairs, whether APC is to be subsequently used or not. If theprocess is not due for a turnaround, quantifying the benefits andwhat is to be done is even more important.

Myth 10: APC is unproven in my industry or appli-cation. APC has proven capabilities:

Dynamic regulation of manufacturing processes Operations management against optimal constraints Reliable response to process upsets Superior management of process transitions.It has been widely applied in areas that had the financial means

to support groundbreaking technology investments (refining andlarge-scale chemical/petrochemical sites). New applications havebuilt on this investment. A significant number of applications stillexist in specialty and less traditional manufacturing areas. Many ofthese, due to the competitive strategies mentioned previously, areunreported. Specialty applications within hydrocarbon processing(i.e., secondary units, utilities and inventory management) arereported in product-user societies, but less frequently publicly.Knowledge users are generally more concerned wirb whether anunderlying value proposirion exists for a new application, ratherthan whether the technology has the capability to capture it.

Myth 11: APC applications are difficult to main-tain. Barring process design changes, raw material shifts andnotable fouling equipment, many APC applications run for

Pipeline & TerminalPump control & MCCSampler & AnalyzerElectrical Sub Slation

Buildings shipped withelectrical and mechanicalaccessories Pre-lnstolled

* Instrumentation &Process Controls

Select 88 atwww.HydrocarbonProcessing.com/RS57

SPECIALREPORT PROCESS AND PLANT OPTIMIZATION

extended periods (years) with little maintenance. This is gener-ally not the case in the refining and petrochemical industries,and given the benefits that these applications generate, neglect-ing APC maintenance i.s a poor business strategy.

The most common changes to an APC application are limit andcost fector adjustments based on changes in the operating strategy,and model updates typically necessitated by changing feed qual-ity, mechanical process change or significant change in operatingpoint. The required maintenance is not difficult or unnecessarilytime-consuming, rather, it is difficult to staff. APC engineers arefrequently leaders in their respective companies and often move onto greater responsibility. APC applications should utilize commer-cially available tools and established techniques whenever possibleto improve niaintainabiiity. One very successful and cost-effectivemodel tor support is to train an "expert process operator" withbudgeted contract expertise when required.

Myth 12:1 don't need APC until I complete my sup-ply chain/production planning project. Most APCprojects will raise the understanding of the production capabilityof processing units to a significantly higher and more accuratelevel. Through APC, the true constraints of the process areidentified; production is much more repeatable and consistent;impact of operating disturbances is mitigated; and, in general,a dependable production model for each major processing unitcan be developed. APC and production planning/supply chain

HVIMXMKH

Now available from HYDROCARBONPROCESSING

The Natural Gas ProcessingWall ChartThe Natural GasProcessing WallChart di.splays aschematic of thegas processingindustry fromwellhead toend product. Includes projections for the industryin 2003 from the 2003 HP! Market Data Book andfour representative processes (Sulfur recovery, GasProcessing Plant. Measurement Refined Products, LNGLiquefaction, LNG Import, Storage and RcgasificationTerminal) in the style and format of the 2002 GasProcessing Handbook.

It will be mailed rolled and is 37.5" wide by 26"tail, printed on 70 lb. paper. Suitable for mountingor framing. Single copies $39.95 plus appropriatetaxes and shipping and handling. Multiple copiesavailable at discount. Order through our websitevvww.HydrocarbonProcessing.com or call our reprintdepartment at 713-520-4426.

initiatives greatly complement each other. However, APC is thefoundational, frontline mechanism for implementing any strate-gies that are dc\'e!oped and for ensuring resulting benefits.

Myth 13: APC benefits come primarily fromimproved control. Improved control is the feature of MPCthat allows the process to be operated more reliably and with lessvariation on critical variables. But the economic benefits of APCstem from operating the process closer to the true (and most opti-mal) operating constraints. Utilizing APC ro implement a businessstrategy online, and properly adjusting the process variable limitstoward the true equipment constraints are the critical elements.

Myth 14: APC algorithm or product X cannot solvemy problem. Innovative, highly skilled control engineers canmake many things work. Many commercially available APCtechnologies can solve a broad range of problems. The algorithmis more a reflection of the technical and logistical approachthat must be taken to solve the problem, than an indicator ofpotential project success. When difficult technical challengesare present, the algorithm impacts the level of effort and costrequired to obtain the projected benefits Is key.

Myth 15: Process and control engineers are theprimary users of APC. All good control engineers know thatacceptance of the M*Q application by process operators is criticalto success. To achieve desired benefits, APC systems must inher-endy change process operations and performance from previouslyaccepted paradigms. Process operators have responsibility formonitoring the process (and the underlying performance of theAPC system) and frequendy have the determining vote for assess-ing APC performance in the form of an "on/off switch."

Truth. APC applications continue to generate appreciableeconomic benefits despite significant changes ongoing in thechemical/petrochemical industries' business environment. Thesebenefits are achieved by long-term operation, not a step changein performance following an APC project. Perhaps the greatestmyth is that these applications and the benefits they generateare not critical to business success. A foundational businessunderstanding remains;

APC is not a commodity The capabilities of the technology, skills of the implementer

and proposed methodology must be evaluated together Risks of implementation are not unique to APC, but a

reflection of the business environment.Understanding tbe success record of APC and its truths paints

an encouraging picture for tbe continued adoption of tbis tech-nology as an industry best practice. HP

W i l l i a m M . Canney is a principal technologist with AspenTechnology, He is responsible for APC technology developmentand contributing to AspenTech's overall technical direction. He hasover 20 years of experience with APC and MPC technologies as apractitioner, technology developer and business leader, Mr. Can-

ney also worked for FMC Corp,, Union Carbide, Praxair and DMCC. He is a chemicalengineering graduate of the University of Wisconsin-Madison, and a liaison to severalUniversity and industry consortia, Mr, Canney has published numerous articles andpatents related to his APC work on several applications including performance moni-tonng, refining, blending, cryogenic air separation, plastics, powders and drying. Hecan be reached via e-mail at William.Canney@AspenTech.com.

58 JUNE 2005 HYDROCARBON PROCESSING