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With innovative Technologies towards Operational Excellence Dr. Helmut Mothes Process Technology 2008-9-30

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Page 1: With innovative Technologies towards Operational Excellence Dr. Helmut Mothes Process Technology 2008-9-30

With innovative Technologies towards Operational Excellence

Dr. Helmut Mothes

Process Technology

2008-9-30

Page 2: With innovative Technologies towards Operational Excellence Dr. Helmut Mothes Process Technology 2008-9-30

Indista – Dr. H. Mothes2008-09-30 • Page 2

Corporate Center

Bayer AG

Service AreasBusiness Areas

Group Management BoardGroup Management Board

Holding CompanyHolding Company

Bayer BusinessBayer BusinessServicesServices

Bayer Technology Services

CURRENTACURRENTA

Bayer Bayer HealthCareHealthCare

Bayer Bayer CropScienceCropScience

Bayer Bayer MaterialScienceMaterialScience

Offers services onexternal market

Offers services onexternal market

Turnover worldwide 400 Mill. €Employees worldwide 2800

Client industries• Health Care• Crop Science• Material Science/Polymers• Chemicals

BayOpX – Bayer Technology Services in Bayer

Page 3: With innovative Technologies towards Operational Excellence Dr. Helmut Mothes Process Technology 2008-9-30

Indista – Dr. H. Mothes2008-09-30 • Page 3

Engineering Procurement Construction

Product & ProcessInnovation

Process Optimization Troubleshooting

BayOpX – Bayer Technology Services

Page 4: With innovative Technologies towards Operational Excellence Dr. Helmut Mothes Process Technology 2008-9-30

Indista – Dr. H. Mothes2008-09-30 • Page 4

BayOpX – Operational Excellence: Hype or Opportunity?

Quelle: Process 12/2007

Page 5: With innovative Technologies towards Operational Excellence Dr. Helmut Mothes Process Technology 2008-9-30

Indista – Dr. H. Mothes2008-09-30 • Page 5

Operational Excellence ?Operational Excellence ?Operational Excellence with BayOpX – Operating

your Site, Plant or Process most efficiently!Operational Excellence with BayOpX – Operating

your Site, Plant or Process most efficiently!

BayOpX – Operational Excellence: Hype or Opportunity?

Global Competition

TechnologicalProgressRegulatory Affairs

Page 6: With innovative Technologies towards Operational Excellence Dr. Helmut Mothes Process Technology 2008-9-30

Indista – Dr. H. Mothes2008-09-30 • Page 6

BayOpX – Operational Excellence @ BTS

Operational Excellence as an Optimization Problem:

Minimize (Operational Cost)

= f (Raw Materials, Energy, Personnel, Capital)

Operational Excellence means superior performance executing daily business processes

Operational Excellence means superior performance executing daily business processes

Meeting the constraints:

Achieve demands in product quality and volumes,

Use existing facilities and infrastructure,

Foresee trends for raw materials and energy supply,

Be flexible for any new requirements (markets, prices etc.)

Page 7: With innovative Technologies towards Operational Excellence Dr. Helmut Mothes Process Technology 2008-9-30

Indista – Dr. H. Mothes2008-09-30 • Page 7

BayOpX – From Technology to Operational ExcellenceP

rod

ucts &

Pro

cesses P

erform

ance @

Cu

stom

er

Tec

hn

olo

gy

& M

eth

od

K

no

w-h

ow

@ B

TS

Operational Excellence requires an integrated ApproachOperational Excellence requires an integrated Approach

Assessment

Energy

Materials

Assets

Technology

Raw Materials & Energy Savings

Capacity Management

Asset Management

TechnologyManagement

Solutions Implementation

Page 8: With innovative Technologies towards Operational Excellence Dr. Helmut Mothes Process Technology 2008-9-30

Indista – Dr. H. Mothes2008-09-30 • Page 8

BayOpX – Operational Excellence @ BTS - Approach

AS

SE

SS

ME

NT

SO

LU

TIO

N

IMP

LE

ME

NT

AT

ION

Targets

Methodologies

Tools for a sustainable Implementation

DM

AI

C

• Raw Material Utilization (Yield)• Energy Consumption• Plant & Equipment Reliability• Working Capital• Human Resources

• Availability Analysis• Capacity Map• Pinch Point Analysis• Heat-Power Integration• Risk based Inspection• Supply Chain Concept

• Pinch Point Software• Prince/KBI Software• Condition Monitoring• Training Simulation• Process Analyzers

BayOpX – Approach provides Targets, Methodology and SustainabilityBayOpX – Approach provides Targets, Methodology and Sustainability

Page 9: With innovative Technologies towards Operational Excellence Dr. Helmut Mothes Process Technology 2008-9-30

Indista – Dr. H. Mothes2008-09-30 • Page 9

BayOpX – A general Methodology for Solutions

• Identify customer’s needs as independent consultant• Identify relevant KPIs from first principles and control objectives• Develop benchmarks from best-practise or theoretical optimum• Estimate economic benefit

Milestone 1: Targets Set & Strategy Defined

• Analyze system in detail• Identify performance impacting parameters• Design and customize methods and tools

Milestone 2: Solutions Designed & Evaluated

• Implement monitoring and control functions• Train plant personnel• Integrate into workflow• Monitor and sustain improvement

Milestone 3: Solutions Sustainable Implemented

Operational Excellence requires MethodologyOperational Excellence requires Methodology

DefineDefine

MeasureMeasure

AnalyseAnalyse

ImproveImprove

ControlControl

DM

AI

C

Page 10: With innovative Technologies towards Operational Excellence Dr. Helmut Mothes Process Technology 2008-9-30

Indista – Dr. H. Mothes2008-09-30 • Page 10

Equipment Check

Operational Improvements

Process Control & Automation

Heat Integration & Heat Recovery

Process Improvements

Energy & Utility Systems

Facility Check / Buildings

BayOpX – Energy Audit / Climate Check Methodology

DefineDefine

MeasureMeasure

AnalyzeAnalyze

ImproveImprove

ControlControl

DM

AI

C

BayOpX provides powerful MethodologiesBayOpX provides powerful Methodologies

Process ModelingEquipment &

Utility GuidelinesPinch Technology

ENTHALPY

TE

MP

ER

AT

UR

E

min cooling demand

min heating demand

pinch point

heat integration possible

Page 11: With innovative Technologies towards Operational Excellence Dr. Helmut Mothes Process Technology 2008-9-30

Indista – Dr. H. Mothes2008-09-30 • Page 11

BayOpX – Improvement Project Portfolio

DefineDefine

MeasureMeasure

AnalyseAnalyse

ImproveImprove

ControlControl

DM

AI

C

BayOpX promotes profitable ProjectsBayOpX promotes profitable Projects

A = feasible and profitable B = likely feasible and profitable, needs further evaluationC1=technically (currently) not feasible, but profitable, C2=technically feasible, but not profitable C3 = technically (currently) not feasible & not profitable

Steam

Electricity

Coolants

Gases

Bubble Size = Savings Potential

C1

C3 C2

A

BP

rofi

tab

ilit

y

Technical Feasibility

3 years

ROI

difficult easy

notprofitable

profitable

Page 12: With innovative Technologies towards Operational Excellence Dr. Helmut Mothes Process Technology 2008-9-30

Indista – Dr. H. Mothes2008-09-30 • Page 12

BayOpX – Sustainable Implementation

DefineDefine

MeasureMeasure

AnalyseAnalyse

ImproveImprove

ControlControl

DM

AI

C

BayOpX takes care of SustainabilityBayOpX takes care of Sustainability

Page 13: With innovative Technologies towards Operational Excellence Dr. Helmut Mothes Process Technology 2008-9-30

Indista – Dr. H. Mothes2008-09-30 • Page 13

BayOpX – Improvement Project Portfolio

DefineDefine

MeasureMeasure

AnalyseAnalyse

ImproveImprove

ControlControl

DM

AI

C

BayOpX provides powerful Monitoring SolutionsBayOpX provides powerful Monitoring Solutions

Page 14: With innovative Technologies towards Operational Excellence Dr. Helmut Mothes Process Technology 2008-9-30

Indista – Dr. H. Mothes2008-09-30 • Page 14

BayOpX – Availabiliy Analysis / Capacity Map

DefineDefine

MeasureMeasure

AnalyseAnalyse

ImproveImprove

ControlControl

DM

AI

C

1: Model the plant interactions

3: Simulate potential downtimes

BayOpX facilitates Strategy DevelopmentBayOpX facilitates Strategy Development

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

Production (kt/a)

Pro

pab

ilit

y4: Predict statistical on-line availability

Production losses Train (not to scale)

Unit I Unit II Unit III Unit IV Unit V Unit VI

loss

ho

urs

pe

r y

ear

[h/a

]

PLM+MDT: Market causedPart Load or Downtime

PLE+EDT: External causedPart Load or Downtime

PLS+SDT: Scheduled PartLoad or Downtime

PLI+IDT: Internal caused PartLoad or Downtime

PST: Planned Part Load orShutdown Time

2: Assign downtimes to individual units

Page 15: With innovative Technologies towards Operational Excellence Dr. Helmut Mothes Process Technology 2008-9-30

Indista – Dr. H. Mothes2008-09-30 • Page 15

DefineDefine

MeasureMeasure

AnalyzeAnalyze

ImproveImprove

ControlControl

DM

AI

C

Cap

aci

ty (

no

rmal

ized

)

Individual Equipment or Unit

BayOpX supports Decision MakingBayOpX supports Decision Making

Scenarios

Cap

aci

ty I

ncr

ease

/ %

BayOpX – Scenarios for beneficial Strategies

Page 16: With innovative Technologies towards Operational Excellence Dr. Helmut Mothes Process Technology 2008-9-30

Indista – Dr. H. Mothes2008-09-30 • Page 16

BayOpX – Risk Based Asset Management Methodology

AnalysisAnalysis

Idea GenerationIdea Generation

AssessmentAssessment

ImplementationImplementation

SustainabilitySustainability

DM

AI

C

RBI Assessment concept

● Covered equipment ● Strategy rules/best

practices/software● Determine costs

RBI Implemen-tation concept

● MI program & procedures● Inspection procedures● Training of engineers &

operators● Subcontractors● Inspection technologies

HESQ S-47.0Mechanical Integrity

Pressure VesselHeat ExchangerStorage TanksPiping Systems

Relief & Vent Systems

RotatingEquipment

EmergencyShutdown

Controls

BTN InspectionProcedure Manual

2.0 PSM MechanicalIntegrity Policy

3.1 Pressure VesselInspection

Requirements

3.2 Storage TankInspection

Requirements

3.6 Piping SystemInspection

Requirements3.3 … 3.4 …

4.1 Scheduling & Planning

4.3 Fixed Equipment & PipingDeficiency Tracking

5.3 Training & Qualification

5.5 Quality Assurance & Quality Control

Procedure “A” Procedure “B” Procedure “C”

Baytown Inspection Procedure Manual

HESQ S-47.0Mechanical IntegrityDay2day

business support concept

● Inspection management software● SAP PM integration● Defect elimination/Asset policies● Continuous improvement

Control mechanism

● KPI’s● Benchmark of comparable units

Inspection/ Maintenance Score

Card

● Identify gaps & opportunities Inspection/Maintenance Weight 0 2 4 6 Score Weighted

1 Inspection Plans 4Generic time

based inspection plans exist

Detailed time based inspection

plans exist

Condition based inspection plans

exist

Risk based inspection plans

exist2 8,0

2Use of advanced Inspection Technology (Phased Array,

RFT, EC, MFL,....) 3 Never Rare Occasionally

Important aspect of day2day

maintenance4 12,0

3 % PM Compliance 2,5 <70% >70% >85% 100% 2 5,0

4 % PdM Compliance 2,5 <70% >70% >85% 100% 0 0,0

5% Inspection personnel (Company + Contractor) Overtime Hours Trend

2,5 >7% <7% <5% <3% 0 0,0

6 Planned and ready backlog 1,0 <2 Weeks >2 Weeks >3 Weeks >4 Weeks 2 2,0

7

Variable Resident (on-site) contractor work force for

NDT and specialty services to manage backlog

2,5 No Contractors or

number is fixed

Contractor numbers vary semi-

annually

Contractor numbers vary

quarterly

Contractor numbers vary

monthly2 5,0

18,0 32

Possible 108 30%

BayOpX enables Asset Management SolutionsBayOpX enables Asset Management Solutions

Page 17: With innovative Technologies towards Operational Excellence Dr. Helmut Mothes Process Technology 2008-9-30

Indista – Dr. H. Mothes2008-09-30 • Page 17

BayOpX – Performance Monitoring for Asset Management

AnalysisAnalysis

Idea GenerationIdea Generation

AssessmentAssessment

ImplementationImplementation

SustainabilitySustainability

DM

AI

C

BayOpX supports sustainable Performance with SoftwareBayOpX supports sustainable Performance with Software

Equipment Equipment & Process & Process

DataData

CriticalityCriticality

Inspection Inspection PlanningPlanning

InspectionsInspections and Testsand TestsNon Non

ConformancesConformances

Collect and Update Equipment Data

Inspection History

Create and Update Criticality

Calculations

Create and Update Inspection Plans

Perform and Document

Inspections and Tests

Initiate and Resolve Non

Conformances

Page 18: With innovative Technologies towards Operational Excellence Dr. Helmut Mothes Process Technology 2008-9-30

Indista – Dr. H. Mothes2008-09-30 • Page 18

Lab Technology

Packaged Units Plant Modification

Implementation (PCS)Unit Transfer

Implementation(Hardware)

Operational Excellence requires VisionsOperational Excellence requires Visions

BayOpX – From short-term to sustainable Performance

From Lab ... Capital Investment ... to Manufacturing

Page 19: With innovative Technologies towards Operational Excellence Dr. Helmut Mothes Process Technology 2008-9-30

Indista – Dr. H. Mothes2008-09-30 • Page 19

BayOpX – Project Experience and Results

BTS Project Results:Start of project: 100%End of project: percentage below

BayOpX delivers Results for Operational ExcellenceBayOpX delivers Results for Operational Excellence