Business Process Improvement in Refinery

As the price of crude oil continues to remain high, refiners across the globe are increasingly focused on initiatives to protect their margins. Flexibility in changing the processes to get aligned to the dynamic business scenario is being aimed by the Refiners. Refinery executives are keenly examining on probable effective ways of managing & motivation their people, managing their business process and changing technology accordingly, to get tune their operations with dynamic supply chain in the business. This paper emphasi es on some key messages important to the refinery business, draws attention to interrelated processes in refineries and focuses on a !usiness "rocess #mprovement case study. This paper also describes the approach and methodology, pro$ect planning, templates which accelerate the pro$ect, the solutions and benefits. This paper concludes with important measures that are taken to address the challenges of this business and critical success factors that must be in place to move to %peration &xcellence. %ne aspect that is highlighted is performance management.

Business Process Improvement in Refinery

About the Author

Christopher Fonseca is the "ractice 'irector ( %il & )as for Tata *onsultancy +ervices and is based in ,ouston. *hristopher is a *hemical &ngineer from the #ndian #nstitute of Technology -##T. and has over /0 years of experience in the oil, gas and chemical sectors. *hristopher has held responsible positions in leading companies such as 1nion *arbide, +audi Aramco, 'eepak Fertilisers & "etrochemicals and &rnst & 2oung prior to 3oining T*+. Seshasai Kandrakota is the "ractice ,ead ( &nergy Resource & 1tilities for Tata *onsultancy +ervices, based in #ndia and handles the &merging 4arkets. +eshasai is a 4echanical &ngineer and has a "ost )raduate diploma in %perations 4anagement. ,e has over 56 years of experience in the oil, gas and petro chemical industries. +eshasai has held responsible positions in the Refinery of Reliance #ndustries 7imited at 3amnagar in #ndia, apart from handling %perations & 4aintenance of 1tilities in the initial phase of his career, prior to $oining T*+ as a 7ead %il & )as consultant.

Business Process Improvement in Refinery

Contents
Introduction4 Case Study.4 Approach and Methodology..5 Tools used for such an E ercise..6 !indings and Recommendations..8 Performance Management..9 Alignment it! Balance" #corecar" $B#%& of 'ess Port Rea"ing Refinery.(( Revision of )argets..(( *re+uency of Monitoring..(( Automation of t!e process e,ploiting functionalities of e,isting applications.(( -,ternal revie to ensure sustaina.ility(/ "PI #ashboard $ierarchy(/ )op )ier 0as!.oar".(/ Mi""le )ier 0as!.oar".(1 Bottom )ier 0as!.oar"(4 Conclusion..(4

Business Process Improvement in Refinery

Introduction
As t!e price of cru"e oil continues to remain !ig!2 3ort! American refineries are increasingly focuse" on initiatives to protect t!eir margins. )!ey more fle,i.le2 more responsive an" .etter aligne" oul" li4e to .e it! .usiness it! t!eir "ynamic .usiness

an" supply c!ain nee"s. #o to manage refining operations in tune

an" supply c!ain re+uirements2 refinery e,ecutives are re5e,amining t!e management of t!eir people2 t!eir .usiness processes2 tec!nology an" pro6ects. )!ey are focusing on streamlining .usiness processes2 motivating t!eir or4force2 integrating t!eir suite of applications for .etter information flo visi.ility into performance. In t!is article2 e s!all .e emp!asi7ing some 4ey messages important to t!e attention to interrelate" processes in refineries an" ta4e ill s!are t!e !ic! accelerate t!e an" increasing

refining .usiness2 "ra

you t!roug! a Business Process Improvement case stu"y. 8e approac! an" met!o"ology2 pro6ect planning2 t!e templates pro6ect2 t!e solutions an" .enefits. 8e

ill conclu"e stressing measures t!at are 9ne aspect t!at e ill

ta4en to a""ress t!e c!allenges of t!is .usiness an" critical success factors t!at must .e in place to move to 9peration -,cellence. repeate"ly !ig!lig!t is performance management. 9il : ;as consultants in )ata %onsultancy #ervices $)%#& !ave successfully steere" many suc! consulting assignments in various refineries an" geograp!ies. 9ne of suc! assignments carrie" out .y our consultants is at t!e Port Rea"ing2 Refinery of 'ess %orporation locate" in 3e <ersey2 =#A.

TCS% Business Improvement Program at $ess Corporation

)%# recently implemente" a Business Improvement Plan for t!e refinery at 'ess %orporation. 'ess !as a 65>>> .p" refinery at Port Rea"ing in 3e )!e refinery serves t!e nee"s of 'ess retail outlets2 as resi"ential customers2 in t!e ma6or metropolitan area of 3e <ersey an" !as 5>? interest in t!e #t. %roi, refinery !ic! !as a capacity of 5>>2 >>> .p". ell as in"ustrial an" <ersey. 8it! close

Business Process Improvement in Refinery

pro,imity to t!e 3e

@or4 mar4et2 t!e facility is uni+uely positione" to respon" to

t!e sometimes rapi" c!anges in t!e gasoline mar4et. )!e facility pro"uces some of t!e cleanest .urning gasoline availa.le for t!e environmentally sensitive 3ort!east mar4ets. )!e emissions per .arrel pro"uce" are among t!e lo est in t!e =nite" #tates. )!e .usiness nee"s of t!e refinery in to"ayAs c!allenging environment areB

#treamline" operations it! minimal "isruptions an" less "eviation from plan Better planning an" sc!e"uling Refinery operations insulate" from logistic inefficiencies resulting from lig!tering at 3e @or4 !ar.or2 .arge availa.ility an" movement2 narro ater ay2 "raft constraints2 .ert! constraints2 piping constraints2 t!ir" party usage of terminalAs .ert!s an" tan4s I"entify gaps 2 "etermine "egree of impact an" close t!e gaps Performance management an" accounta.ility it! clearly "efine" or4flo s2 processes2 roles an" responsi.ilities Performance -,cellence C streamline efforts in operations an" maintenance an" lay t!e foun"ation for continuous improvement

8it! t!e o.6ective of revie ing2 grap!ically "epicting an" analy7ing t!e processes an" to i"entify opportunities for efficiency an" effectiveness improvement2 t!e refinery management !as outline" t!e follo ing scope of or4B

0ocument t!e current processes an" met!o"ologies an" i"entify opportunities to improve t!e supply c!ain processes .et een t!e Refinery an" #upply2 an" )ra"ing Perform a ;ap Analysis an" suggest improvements for t!e i"entifie" gaps after mapping t!e )o5Be processes 0efine DPIAs for t!e refinery an" provi"e a .lue print for implementation of a Performance Management system

Approach and Methodology

)!e overall assignment as "ivi"e" into multiple stages eac! it! a correspon"ing 4ey "ecision point. )!e stages ere as follo sB

%urrent Processes Mapping 8aste I"entification 3e Processes Mapping 0efine DPIAs Best use of availa.le applications at t!e refinery

Business Process Improvement in Refinery

Provi"e a .lue print for .uil"ing a Performance Management #ystem

)!e tas4s performe" "uring t!e entire pro6ect inclu"e" t!e follo ingB

Pro6ect #tartupCPro6ect team intro"uctions an" orientationE esta.lis!ment of communications c!annelsE "etaile" planning of sc!e"ules an" resource re+uirements2 finali7ation of "elivera.le "efinitions Process )argetingCI"entification of t!e su.5processes inclu"e" in t!e scope of t!e processes in scope 3ear5term Improvement $inclu"ing Fuic4 8ins&CI"entification of potential improvements an" alternatives to reali7e t!ose improvements %urrent #tate $;ap& AnalysisCReceipt of files2 "ocuments2 an" "ata relate" to e,isting processes in scope2 intervie s it! 4ey 'ess personnel familiar it! t!e processes2 "ocumentation of t!e current state GisioningC0efinition of potential alternatives to t!e current state processes Improvement Portfolio an" Implementation #trategyC'ig! level list of improvements to processes an" "escription of approac!es to implement c!anges to reali7e t!e improve" processes 3e Process 0efinitionC0ocumentation "escri.ing t!e propose" improve" processes 0efinition of Dey Performance In"icatorsCMap t!e DPIAs .ot! for Business Activity Monitoring an" Performance Monitoring to t!e Balance" #core %ar"

Tools &sed
I0-*>2 Process *lo 0iagrams an" Hean #i, #igma ere t!e tools use" for carrying out t!is e,ercise. Integration 0efinition or *unction Mo"eling $I0-*& is a program "evelope" .y t!e =# Air *orce to "efine e,isting or ne systems an" is "irecte" to ar"s increasing manufacturing pro"uctivity. )!ere are a total of (6 I0-* met!o"s "evelope" for mo"eling. I0-*> is use" for mo"eling t!e "ecisions2 actions an" activities of an organi7ation or system. It i"entifies to perform t!ose functions2 current system "oes rong. A template of I0-*> Process Map is s!o n .elo B !at functions are performe"2 !at is nee"e" !at t!e !at t!e current system "oes rig!t an"

Business Process Improvement in Refinery

Hevel ( Process Map C

%or po rat e P lanII
;ov 3oti fic ations2 %orporate ;ui"el ines

Manage Business

Mont !ly for eca sts # c!e "ule of (> " ays movemen ts )C S ta n da rd s %or po ra te P lanII

G ess el Infor m ation P r ice s for m Platts * ee"JB len" Av aila.ilit y P r o"uct 0e man" Mont! ly Plan 0 aily * ee ".ac 4

#upply : )ra"ing A(.>

R evise" # c! e"ule s )r ip 3 um.er s

0a ily 9 per atin g Ins tru ctions B len" # !eet

) an 4 ; auge ) ic4 ets P ipeline ) ic4ets P r o"u ct ) r ans fer 0 ocum ents # !ip 0 ocu ments P um p Hog # !eets

;ov 3oti fic ati ons 2 %orporate ; ui"el ines

A(.(

G olum e B ala nce B uyJ# ell 0 ec isions B uyJ# ell 0ecision s

Plan : #c!e"ul e A(.> A(./

Revise" ver .al Instr uc tio ns * ee".a c4 Mont !ly P lan

P r ovisional B % r ac4 # pr ea" P : H Repo rt

#) : ) - : P

9perations P lant : )erminal A (.> A (.1

-conomics : Management Reporting A(.>

P ro "uct : * ee" Fu alit y Inf orm atio n A ppr ove " Ins pec tion " ocs

A(.4

8 ee 4ly # tr ategy

P r o"uc t : * ee" F uality Infor mat ion

In for mation fr om # !ips JB ar ges

Pr o"uct : * ee" 9 per ations ) eam 0 etails P !ys ic al # amples

P rovi"e Ha. # ervices A(.>

- : P Go l. B al. ) eam M gt. R epo rting

R ele ase M gt R epor ts * in al % r ac4 # pr ea" * in al G olume .alan ce P er for ma nce Repo rt s <ou rn al - ntr ies P ro fit : Ho ss Rep or ts Invo ic e ;e ner atio n %r e"itJ0 e.it 3o tes

+ PI S P' A TT S

) es t Re +ues tsI

0aily 9p rn . Insr B len" #! eets Ha .or ator y ) eam A ut! or i7e " A gents # !ip 0 ocument s

A(.5
% om plianc e % onfirm atio n

T em pest

ST* T Po rt a l

B l ades

TIM S

A s pe n ! CC

$ a ve rl y ' P M od el

P $#( T CCS

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' IM S

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3 9 0- B

A(

) I) H-B

Man age ' ess P or t R ea"ing 9 per atio ns

3 9.B

A(

3 0 A u gu s t 20 0 8

Figure 1: IDEF0 Process map template

Process *lo

0iagrams $P*0& !ave .een use" to "ocument t!e activities of t!e

su.5processes2 t!e reason an" fre+uency of t!e activities2 t!e s im lanes .et een functions an" !o t!e activity is performe". Hean #i, #igma met!o"ology is use" for i"entifying t!e )!is met!o"ology is "epicte" in t!e figure .elo B astes2 suc! as poor cycle time2 non5value a""e" activities2 an" costs in t!e processes.

Business Process Improvement in Refinery

K*i, KRet!in4 K Hoo4 for +uic4 fi, containment K *or ineffective actions solutions2 i"entify sources of un"er5 "elivery KP!ase K0efine KMeasure KInvestigate KImplement K-valuate K#tan"ar"i7e
K #tan"ar"i7e solution$s& as common practice

K 0efine process KProcess Improvement in scope K =n"erstan" 9.6ectives customer re+uirements

K Fuantify current K ;enerate performance potential solution$s& K Prove root5 cause of un"er5 K Prioriti7e performance solution$s& K Hoo4 for +uic4 fi, actions

K Implement K Gali"ate2 refine2 solution$s& in or revise selecte" area$s& solution$s&

'ealt!y Processes

=n!ealt!y Processes
Processes Are not Mappe" $no stan"ar"& I0-*> +utput oriented measures Processes Are Mappe" $stan"ar"& Processes Are Mappe" an" *ollo e" $stan"ar" or4& Processes Dai7en Mappe" $target flo an" leveling& Process oriented measures Processes Balance" to )a4t $stan"ar" opns.&

A areness Pre5re+uisite for improvement

)!e 5# for improvement

#tan"ar"i7e an" #treamline or4

%ontinuous Improvement Plan

Hean Management

Figure 2: Program methodology

!indings and Recommendations

*rom t!e ro.ust met!o"ology an" utili7ation of t!e tools2 mo"erate to significant gaps .et een or4 processes an" .usiness re+uirements t!at in!i.it operational e,cellence ere i"entifie". )!e follo ing Impact C ;ap c!art s!o s t!e gaps t!at some 4ey processes !ave from t!e re+uirement of t!e .usiness an" t!e correspon"ing "egree of impact.

Business Process Improvement in Refinery

;aps C Impact Analysis

!erth !erth+cheduling +cheduling "erformance "erformance4gt. 4gt. Accountability Accountability

Signi"icant Impact

4onthly "lanning 4onthly "lanning "roduction "roductionAccounting Accounting $oderate Impact #ntegration #ntegrationof ofApps. Apps. 'aily 'aily+cheduling +cheduling

%o& Impact Signi"icant #ap $oderate #ap $inor #ap

many interdependencies e!ist across the categories o" supply chain management
3 0 A u gu st 2008

Figure ': Impact analysis template

*rom t!e ;aps C Impact Analysis t!e gap

!ic! impacts t!e refinery process

improvement significantly is foun" to .e Performance Management. At 'ess2 it is o.serve" t!at t!ere is a su.stantial scope for improving t!e process failure monitoring mec!anism. system. Performance Management Performance management in a refinery is a 4ey element. )!ere is a nee" to "efine metrics !ic! ill trac4 operating efficiency2 capital e,pen"iture an" gro t! in t!e supply c!ain processes. )!e i"entification of 4ey measures an" t!e met!o" for computing t!em is vital in .uil"ing a roa"map for implementation of meticulous Performance management system. Refinery Performance Management Roa"map is illustrate" .elo B )%#2 !as "one a "etaile" analysis on t!e e,isting Performance Management system an" suggeste" appropriate c!anges to t!e

<

Business Process Improvement in Refinery

Performance Management C 2ourney to1ards Process E cellence

Bus iness Busines s Case C ase 3 Internal Tools S election * R oad map 3 E ternal Selection Road consulting cons ulti ng Imple mentation Impleme ntation 3 E ternal Resources R esource s $andholding and +1nership Process m mapping4 apping4 .ap analysis4 Clos e gaps( Close ga ps( Start the Process Internal resources resourc es or E ternal support Ma nage Performance and #ec ision S upport

#ashboard * Scorecard Automate #ashboard #efine Roadmap for Automation

+ut put of consulting assignment as signment

2ustify 2ustify Automation Trac/ and Record 0uic/ 1ins

Milestone

Close gaps in system 3 !ine tune source data Collate and Start the Process Manually .enerate #ata #efine Process and Templates
Milestone

Milestone

Miles tone

#efine "PI"PI-s and Methodology Envisage ,eed for Performance Management

567 months

8 months

567 months

9 months

3 0 A u gu st 2008

Figure (: )oadmap template

)!e process aligning t!e o.6ectives it! t!e .alance" scorecar" ill ena.le a Refinery to translate strategy into action t!roug! "efine" strategic o.6ectives an" 4ey performance measures. )!ese o.6ectives an" measures provi"e a vie of t!e refineryAs performance from five perspectivesB

*inancialB )!e strategy for refinery gro t! an" profita.ility t!roug! sustaine" gro t!2 pro"uction optimi7ation an" management of 9P-L %ustomerB Ac!ieve customer satisfaction an" colla.oration to create gro t! opportunities Internal processesB Asset optimi7ation t!roug! improve" pro6ect management2 improve" relia.ility an" operations e,cellence -'#B )!roug! improve" process safety management2 compliance it! regulatory re+uirements an" safety e,cellence PeopleB %reate a motivate" an" prepare" or4force it! improvement of employee s4ills2 creating organi7ational "ept! an" .ecoming a strategy focuse" organi7ation

In a""ition to .usiness performance measurement2 t!e refinery also re+uire" .usiness activity monitoring for provision of near real5time access to critical operational process in"icators. )!is ill "eliver alerts to increase efficiency of

5=

Business Process Improvement in Refinery

.usiness processes an" monitor s!ifts of priorities an" conflicting goals .et een t!e process units an" various refinery "epartments. )!e goal of Performance Measurement is to lin4 t!e refineryAs operational activities it! t!e .usiness strategy. 0efining t!e metrics to use is a 4ey aspect. If t!ese are ell c!osen2 t!ey .ecome appropriate measures of success of t!e refineryAs strategic o.6ectives. Alignment 1ith Balanced Scorecard :BSC; of $ess Port Reading Refinery )!e o.6ective as to ma4e sure t!at t!e goals2 metrics an" "ata collection are "efine" accurately so t!at areas of t!e .usiness t!at are necessary an" appropriate to !at t!e refinery is trying to accomplis! are measure". )!e goal as to utili7e "as!.oar"s for "isplay an" analysis of DPIs to s!o t!e !ealt! of eac! area of t!e refineryAs operations2 gain ne insig!t into t!e .usiness processes an" improve efficiency an" performance. Revision of Targets In t!e .est interest of refiners2 it is suggeste" t!at t!e targets .e re5visite" after a year to revise t!e targets .ase" on t!e performance "uring t!e year. )!ere ill also .e a nee" to a""2 su.tract2 an" mo"ify some of t!e DPIs "uring revision. !re0uency of Monitoring )!e goal is to ma4e sure t!at in"ivi"uals are not overloa"e" it! information2 .ut t!at relevant an" sufficient DPIs are "elivere" on time so t!at action can +uic4ly ta4e place !ere necessary. Automation of the Process E ploiting !unctionalities of E isting Applications )!e ne,t step is to automate t!e process of "ata collection2 aggregate an" present t!ese for Performance Management. )!ere are several applications availa.le !ic! can assist in t!is en"eavor. A 6u"icious c!oice ill !ave to .e ma"e ta4ing into account t!e propose" I) arc!itecture an" !o t!e application e,ploits t!e functionalities of -RP2 Process 'istorians2 Maintenance Planning an" Management tools2 9il accounting tools2 an" presentation layers to t!e ma,imum e,tent.

55

Business Process Improvement in Refinery

E ternal Revie1 to Ensure Sustainability It is also suggeste" t!at "uring t!e initial stages for preparation of t!e performance management DPI "as!.oar"2 e,ternal resources coul" .e utili7e" to minimi7e time spent .y process o ners on putting toget!er t!e "as!.oar" an" score car".

"PI #ashboard $ierarchy

)o facilitate .usiness activity monitoring an" performance monitoring2 )%# propose" to !ave a t!ree5tier !ierarc!y in t!e DPI 0as!.oar" it! t!e potential for vie ing tren"s an" grap!s. )!e Perio" Performance2 !ic! ill .e visi.le in all t!e t!ree tiers of t!e "as!.oar" at "ifferent levels of .rea4 up2 ill also .e supporte" .y t!e Real time Dey Process In"icators at t!e .ottom tier. Along it! real time in"icators2 t!e average or min5ma, of t!e Dey Process In"icators is also propose". )!is ill assist every level to ta4e calculate" "ecisions on improving t!e performance of refinery operations. )!e t!ree tiers of DPIMs are )op )ier2 Mi""le )ier an" Bottom )ier. Top Tier #ashboard )!is tier oul" give t!e overall refinery performance for t!e Refinery 'ea" an" t!e top management of t!e refinery. )!is tier oul"2 at a glance2 give t!e entire picture of t!e refinery it! regar" to t!e performance of t!e refinery an" contri.ute to ar"s ta4ing firm an" information "riven "ecisions in improving t!e operations of t!e refinery. )!e DPIAs mentione" in t!is "as!.oar" are aligne" to t!e Balance" #core %ar" o.6ectives an" are segregate" un"er various focus areas C *inance2 %ustomer2 Internal Process $comprising Asset 9ptimi7ation an" -nvironment 'ealt! : #afety&2 an" Hearning : ;ro t!. )!is tier is .ro4en "o n to a summary level at Mi""le )ier.

5/

Business Process Improvement in Refinery

%oncept C Performance ManagementB Top Tier =isualiCation

!I,A,CE
In"icators CRA C" SPR EA# E,ER.< C+,S&M PTI+, $<#R + C ARB+, '+SS ,+, E,ER .< =ARIAB 'ES C+,S +=ER $EA# S )0 M)0 @)0
BE'+> TAR.ET +, TAR.ET AB+=E TAR.ET

I,TER,A' PR+CESS
In"icators +, STREAM A=AI'ABI'IT< )0 M)0 @)0

#aily Crac/ Spread Trend +PERATI+,S E!!IC IE,C<

P'A, =S ACT& A' !EE# M I?

RE'IABI'IT<

Crac/ Spread A(BB'

M AI,TE ,A ,CE PR+2ECTS PER!+RM A, CE

45

4(

49

4/5

4/9

411

41N

4(1

4(N

4/(

44(

445

In"icators ,+6 +! PR +# RE=6 S ATIS!IE# ,+6+! S C$ # RE=6 SATIS!IE# .A S+'I,E )& A'IT< .I=E A> A<

)0

M)0

@)0

In"icators

449

C&ST+MER

9 8 N 6 5 4 1 /

P'A, =S ACT& A' PR+#& CTS #+C" I#'E TIM E =ESSE ' T&R, AR+&, # TIM E

Plan OJBBH Actual OJBBH

E$S A,# PE+P'E

)0 M)0 @)0

>ee/

, +6 +! ACTI+,AB'E ITEMS T+TA' ,+6 + ! $A@A, S # A<S +! TRAI,I,. A TTRITI+, RATE

3 0 A u gu st 2008

Figure *: +op tier dash,oard template

Middle Tier #ashboard )!is tier is t!e .rea4 "o n structure of t!e )op )ier .y one level. *or eac! line item of t!e )op )ier2 t!ere is a .rea4 up for contri.utions from eac! unit or "epartment of t!e refinery. )!is tier also !as t!e accounta.ility attac!e" to eac! an" every line item. )!e !ig! level reasons for DPI "eviations coul" also .e availa.le against eac! line item for eac! unit or "epartment.

Figure -: $iddle tier dash,oard template

58

Business Process Improvement in Refinery

Bottom Tier #ashboard )!is tier !as a "etaile" performance of every unit. )!ese 4ey performance an" process in"icators2 at t!is level for every unit2 !elp t!e =nit 'ea"s2 #upervisors2 #!ift -ngineers2 *iel" -ngineer an" 9perators ta4e appropriate "ecisions .y vie ing t!e performance of t!e unit. )!e =nit 'ea" ill also .e a.le to get assistance on "eci"ing t!e root cause of operational "eficiency at t!is level. )!is information ill .e useful in assigning reasons for t!e failure of operations. Garious Dey Process In"icators of t!e respective units ill also .e s!o n along it! t!e perio" performance un"er t!is analysis tier of t!e DPI "as!.oar".

%oncept C Performance ManagementB Bottom Tier =isualiCation

!CC 3 Performance Indicators
In"icators T$R+ &.$P&T PR+PA,E ( PR+P<'E,E MI? 'I.$T CAT ,AP$T$A $EA=< CAT ,AP$T$A 'I.$T C<C'E +I' C+"E B&R, ,ET STEAM E?P+RT )0 M)0 @)0
BE'+> TAR.ET +, TAR.ET AB+=E TAR.ET

!CC 3 Process Indicators

In"icators RE ACT+R TE MPERT&RE MAI, AIR B'+>ER +&TP&T C&ST+#< TRA,S !ER +! +D 'C+ !'AS$ RE .E, #E,SE BE# TEMP RE ACT+R C<C'+,E =E'+CIT< 'C, R=P R+! R=P )0 M)0 @)0

3 0 A u gu s t 2008

Figure .: /ottom tier dash,oard template

Conclusion
In t!e 'ess refinery2 t!ere is a strong "esire for improvement in t!e functions involve" in t!e supply c!ain management of fee"stoc4s2 .len"stoc4s2 an" petroleum pro"ucts. #uc! lea"ers!ip is critical to ensure t!e start2 support an" sustenance of suc! pro6ects.

56

Business Process Improvement in Refinery

Refinery employees nee" fit5for5purpose tools to !elp t!em focus on !at is most important in ac!ieving .usiness o.6ectives an" to create real value for customers2 sta4e!ol"ers an" t!emselves. )!ey also nee" to 4no to !o t!eir efforts ill .e measure". )%#A approac! an" met!o"ology relie" on t!e rigor of Hean #i, #igma 5 t!e .enefits of lean management it! its "rive to ar"s re"ucing cost an" inefficiencies couple" it! #i, #igma focus on re"ucing process variation lea"s to consi"era.le improvement. *rom t!e overall consulting assignment it is evi"ent t!at performance management aligne" it! .alance" scorecar" is a 4ey element in process improvement of t!e refineries. 8e "efine" metrics aligne" it! t!e Balance" #corecar" to trac4 operating efficiency2 capital e,pen"iture an" gro t! in t!e supply c!ain processes. )!e pro6ect "elivere" significant value t!roug! integrating t!e planning processes2 sc!e"uling closer to t!e economic plan for fee"stoc4s an" .len"stoc4s arrivals an" pro"uct "ispatc!es2 improving t!e transparency an" communication .et een t!e operational groups an" e,ploiting functionalities of t!e applications. !at is e,pecte" out of t!em2 .e traine" an" motivate" to perform t!eir tas4s2 an" un"erstan" an" agree

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