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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
Indista – Dr. H. Mothes2008-09-30 • Page 3
Engineering Procurement Construction
Product & ProcessInnovation
Process Optimization Troubleshooting
BayOpX – Bayer Technology Services
Indista – Dr. H. Mothes2008-09-30 • Page 4
BayOpX – Operational Excellence: Hype or Opportunity?
Quelle: Process 12/2007
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
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.)
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
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
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
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
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
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
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
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
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
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
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
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
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