A New Way to Extract More Value from Your Production Supply Chain … with Production Accounting and Reconciliation (PAR)
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• Accounting Process ‒ Basic ‒ Enhanced
• Challenges to achieving Enhanced Value ‒ PAR helps overcome Challenges
• PAR Value Proposition ‒ Basic Value ‒ Enhanced Value ‒ Technology Impact
• Summary
Outline
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‒ Helps to identify and reduce feedstock and product stock losses ‒ Supports high level Plan vs Actual performance monitoring ‒ Ensures accuracy of plant feedstock and product inventory positions
Basic Accounting Process
Production Accounting is the process of measuring, validating and publishing accurate and reliable balanced facility production data
Receipts
Measured, Interfaced or Manually Entered
Feeds
Inventory Mass/ Volume
Products
Inventory Mass/ Volume
Measured, Interfaced or Manually Entered
Shipments
Process Units
Flare, Losses
Sulfur, Fuel
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The difference in the process is the inclusion of detailed statistical reconciliation of unit by unit streams and measurements.
Basic Accounting with Unit Reconciliation
Production Accounting and Data Reconciliation is the process of measuring, reconciling, validating and publishing accurate and reliable balanced facility and unit production data.
Receipts
Measured, Interfaced or Manually Entered
Feeds
Inventory Mass/ Volume
Intermediates Products
Inventory Mass/ Volume
Measured, Interfaced or Manually Entered
Shipments Process
Unit
Process Unit
Process Unit
Flare, Losses
Sulfur, Fuel
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• The value proposition is as in the base case ‒ Helps to identify and reduce feedstock and product stock losses ‒ Supports high level Plan vs Actual performance monitoring ‒ Ensures accuracy of plant feedstock and product inventory
positions
• In addition, the Data Reconciliation process ‒ Catches errors and missing transactions ‒ Identifies equipment and instrumentation problems ‒ Supports detail unit and stream level Plan versus Actual monitoring ‒ Identifies intermediate product losses ‒ Supports process analysis and simulation ‒ Supports Utilities Balances (E.g. Steam, Fuel Gas, Energy, etc)
Basic Accounting with Unit Reconciliation
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Challenges to delivering Sustained Value
Ease of Use • Ageing Design
& User Interface Methods
• Work force Churn
Model Maintenance • Monolithic
models • Extensions
Requires vendors expertise.
Data Collection • Bad Data
Quality • Inconsistent
Integration with other apps
Cost of Ownership •Technology platforms are aging
•Vendor investment is reducing
•Limited localized expert support
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Ease of Use
• Graphical configuration and run-time results delivery facilitates model maintenance and understanding of reconciliation results
• Visual Cues helps gain perspective and provide a seamless workflow to close balances
• Integrated manual entry and inline override of suspect values allows for rapid iteration to a successful solution.
• Flexible reporting and Excel export enables results to be easily shared and used for extended analysis.
• Designed according to Honeywell User Experience (HUE) mandates
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Understand the Imbalance
View Key Stream Information
A configurable high – level overview of the key production values
Understand Shipment / Receipt patterns
Understand Inventory patterns
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Statistical Reconciliation to Close Balances
Adjust Process Measurements
Review Balance Quality & Analyze the next Errors
Identify the Equipment with Highest Gross Error
Balance Quality of 1 indicates the Optimum balance state
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Fast Navigation
In Built Inventory Calculation
Grid View for Expert User Actionable Objects
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Missing Movement Identification • Missing Movement Solver identifies potential missed movements and provides
feedback on the delta in objective function from the change
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Review & Approval with Audit • Supervisor receives
an Email indicating that the data is available for review
• Supervisor reviews the Audit Log to understand changes made, then uses the Net Production Report to verify the closing balances
• Supervisors review all of the metrics, flowsheet, schematics
• Supervisor chooses to “Close” the balance period.
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• Once an accounting period is set to Closed, Reconciled Data can be stored in a historian, where it becomes accessible to other applications
Share Results
• MTD YTD trends by material help get a good insight on performance against plan
• Data can be exposed for use in Intuition Executive Dashboards
Production Metrics Dashboard
Store Data in Historian Reports
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User can select the data that are required to be read from PAR.
These query parameters can be SAVED as part of the Excel File, so that it can be reused
Provides pre-defined views to expose the data.
Share Results Using Excel Analytics
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Ease of Use
• Graphical configuration and run-time results delivery facilitates model maintenance and understanding of reconciliation results
• Visual Cues helps gain perspective and provide a seamless workflow to close balances
• Integrated manual entry and inline override of suspect values allows for rapid iteration to a successful solution.
• Flexible reporting and Excel export enables results to be easily shared and used for extended analysis.
• Designed according to Honeywell User Experience (HUE) mandates
Integrated graphical workflow environment and “best in class” reconciliation solver helps close balances up to 20% faster
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Model Maintenance
• Flexibility to combine use of Graphical configuration with Excel based bulk configuration, simplifies the maintenance effort.
• Ability to use and manage Multiple Models allows for easier handling of special cases
• Offline Model Tuning help refine the model robustness and reconciliation accuracy
• Ability to partition the model in to Multiple Active Flowsheets improves understanding and usability.
• Simple Migration Path from Honeywell’s Production Balance
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Easier to Configure – Graphical Flowsheet's
Modular Graphical Flowsheet's Bulk Configuration using Excel
• Model creation can be done by a mix of graphical Flowsheet modelling and Excel
• Graphical Flowsheet can be bulk loaded from an Excel worksheet
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Easy to Configure Graphical Flowsheets
CDU Train 1 COPY
Change Tag Configuration using Excel
Reuse Models
CDU Train 2
Model Tuning
Eliminate Non – Observable streams & improve overall redundancy to drive better reconciliation
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Easy to Learn
In built Demo Models for Training
MMM Demo
Refinery Demo
Visual Cues and Modular Flowsheets enable faster learning
Energy Balance Demo
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Model Maintenance
• Flexibility to combine use of Graphical configuration with Excel based bulk configuration, simplifies the maintenance effort.
• Ability to use and manage Multiple Models allows for easier handling of special cases
• Offline Model Tuning help refine the model robustness and reconciliation accuracy
• Ability to partition the model in to Multiple Active Flowsheets improves understanding and usability.
• Simple Migration Path from Honeywell’s Production Balance
Intuitive features reduces maintenance and learning time by up to 20% ensuring sustained delivery of benefits
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Data Collection Process
• Manual Data Entry is inherent in to the tool to ensure minimal interruption in the workflow process to make adjustments and enter data.
• Automated web services based access is available through Honeywell’s Data Access Service (DAS), providing high integrity standards based data retrieval from diverse systems.
• Data access methods use Active Caching and Bulk Data Requests to maximize performance.
• Data Sanity checks ensure that Data Collection issues are highlighted
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Data Access Service - DAS
DAS
• Shared plug-ins allow access to data across Honeywell and third party applications. • Standard plug-ins are available for many Applications • New plug-ins can be built and commissioned without changing existing applications
OPC
• All applications make use of the Honeywell Universal Data Access Service (DAS) that based on WCF provides shared services, data federation and data caching
OSI-PI
SAP
K P I
IOM
Production Accounting (PAR)
IKPI DB
Intuition Executive
IX DB
P A R
IX
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In-built Data Sanity Check
Simple Balance Intelligent Diagnostic
Example Data Checks are • Measurement exceeds Range Limits • Tank inventory changes with no
in/out movements • Tank rises / falls with no movement
in / out.
Identify Nodes where sum of the inputs differ significantly from the sum of the outputs. • Useful to identify any
missed movements or major measurement problems
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Data Collection Process
• Manual Data Entry is inherent in to the tool to ensure minimal interruption in the workflow process to make adjustments and enter data.
• Automated web services based access is available through Honeywell’s Data Access Service (DAS), providing high integrity standards based data retrieval from diverse systems.
• Data access methods use Active Caching and Bulk Data Requests to maximize performance.
• Data Sanity checks ensure that Data Collection issues are highlighted
Ensure quality data delivery with standards based, performance optimized data access methods
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Cost of Ownership
• Leverage the benefits of New Technology platforms to provide enhanced usability and sustainability
• Easy Migration from Production Balance ensures return on past investments.
• Operator Entry screen for Inventory and Movements avoids costs to build and maintain custom screens.
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Operator’s Manual Entry Forms .
Inventory Entry Form
Manual Movement Entry Form
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Easy Migration from PB Excel Template to Migrate Configuration
Utility to Migrate Transactions
Automatically create Graphical Flow sheets
PAR
PAR PB
PB
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New Technology Impacts
•Avoid Hardware Cost by deploying PAR on Virtualized VM Systems Hardware Cost
• Avoid pre-requisite licenses for Oracle / Crystal Reports • In built Operator entry screens for Movement & Inventory, avoids the cost of building custom screens.
Software Cost
• Globally available Local Support • Receive Software Updates & Security fixes through BGP subscription • Platform Support - Windows 2012/ SQL 2012
Support and Maintenance
• Improved Integration to Historian, Movement Management Systems, ERP, LIMS Integration
• In Built Demo Models support faster on-boarding • Visual aids, metrics and diagnostics to help in better learning. User Training
• Reduced Configuration effort through features such as Graphical Modelling, Multiple Flowsheet’s, Versioning, Bulk Configuration.
Time To Implement
• Distributed Server Deployment to be able to scale to larger accounting models Scalability
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Cost of Ownership
• Unlock Financial Value with better operational decisions and proactive maintenance actions.
• Ensure optimum effectiveness of planning models using the export tools to Update Planning Yield Vectors.
• Leverage the benefits of New Technology platforms to provide enhanced usability and sustainability
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Value Proposition Delivered
• Core Value Proposition ‒ Effectively Track Reconciled Production using PAR’s historical
reports and dashboards ‒ Reduce Losses with in-built in loss accounting capabilities. ‒ Ensure Regulatory Compliance with PARs transparency and audit
capabilities ‒ Maximize Trading Opportunities with Inventory visibility
• Enhanced Value Proposition ‒ Improves margins by up to 25 cents per barrel by ensuring currency
of planning vectors ‒ Avoid revenue losses due to Meter Biases using the historical meter
trending and analyses. ‒ Reduce Meter Downtime with proactive meter maintenance alerts
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• Effective Production Tracking requires that Information is ‒ Reliable ‒ Easily Accessible
• PAR provides ‒ Inbuilt MTD/YTD Metrics
by Material ‒ Standard / Custom
Production Reports ‒ Ability to query
Reconciled Production Data into Excel
‒ Integration to Enterprise Dashboards
‒ Email Notification for Balance Closures
Track Production
Simpler and Reliable Methods to Track Production
This is an example of the Net Production Report, one of many reports available
MTD/YTD Metrics Inventory Trend
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• PAR supports reporting and reconciliation standards described by the AMIRA P754 Metal Accounting Reconciliation Code of Practice and Guidelines
• Supports the information transparency, auditability and availability requirements of Sarbanes-Oxley.
• From an Emissions reporting perspective PAR supports tracking of Accounted and Unaccounted Losses
Ensure Regulatory Compliance
Robust Support towards Regulatory Compliances
Audit Log What was changed, by whom & When
Loss Detection
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• Traders must know inventory positions accurately to be able to hedge effectively.
• Today, this can be a sub-optimal unreliable process.
• PAR provides easy access to inventory information with multiple views that reduces the uncertainty, leading to enhanced confidence for making trading decisions.
Maximize Trading Opportunities
For a 200,000 BPD of refinery, a saving of 10 cent per barrel = $700,000 per annum
Interactive Inventory Metrics
Reports Excel
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Reduce Losses
Accounted or Known
Losses
Unaccounted Losses
Overall Losses
Model Accounted Losses
Identifies the Unaccounted Losses enabling targeted initiatives
Presents clear distribution of Accounted Loss
Accounted Losses Tons % Tank Evaporation 197 0.32 Flares 226 0.38 Refinery Liquid effluent 12 0.02 Process Fugitives 95 0.16 Cooling Towers 10 0.01 Total Accounted Loss 540 0.8% UnAccounted Losses 1100 1.8% Total Loss 1640 2.6%
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• Planning Yields Drift Over Time ‒ Catalyst activity changes ‒ Process problems
• This leads to Sub-Optimal Decisions such as: ‒ Refinery running against
wrong constraints ‒ Bad feedstock selections ‒ Purchasing unnecessary
blending components, ‒ Making an uneconomic
product mix
• PAR supports industry best practices to periodically capture reconciled plant yields and use them to update planning vectors.
Update Planning Yield Vectors
Improve margins upto 25 cents per barrel*
PAR 200 RPMS 500
Excel Regression Function To generate Yield Vectors
Reconciled Data Export To Excel
Update Yields Using RPMS Fast Import
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• A bias or a drift in Custody transfer meter will cause undetected loss in revenue
• PAR 200 provides an easy method to view historical trends between the raw and reconciled values to detect bias or drift conditions
• Timely intervention in correcting these meter defects can help save thousands of dollars in lost revenue
Identify Meter Biases
Clicking on a stream presents a historical trend of Raw and reconciled values. In this example, the positive meter bias has been identified and corrected.
Avoid Revenue Losses due to biased meters
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• Meters can run with bias/drift for a period of time without breaking down.
• Reconciliation tracks meters with frequent significant adjustments, a proven indicator of meter calibration or operational issues
• PAR provides a “Bad Measurement Report” that identifies potential faulty meters
• Systematic usage and follow-up based on this technique will result in improved instrumentation quality.
Reduce Meter Downtime
Best Practice to Drive Instrumentation Maintenance Program
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Value Proposition Delivered
• Core Value Proposition ‒ Effectively Track Reconciled Production using PAR’s historical
reports and dashboards ‒ Ensure Regulatory Compliance with PARs transparency and audit
capabilities ‒ Maximize Trading Opportunities with Inventory visibility
• Enhanced Value Proposition ‒ Reduce Losses with in-built in loss accounting capabilities. ‒ Improves margins by up to 25 cents per barrel by ensuring currency
of planning vectors ‒ Avoid revenue losses due to Meter Biases using the historical meter
trending and analyses. ‒ Reduce Downtime with proactive meter maintenance alerts
Increase Production Reconciliation accuracy to help deliver margin improvement of up to 5% through better business decisions
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Illustrative Summary
Sustained Business Benefits through Smart Operations
Quicker benefits from PAR due to
faster adoption by Customer Workforce
Benefits from PAR are Sustainable
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Discover Production Accounting with Confidence
Integrated graphical workflow environment and “best in class” reconciliation solver helps close balances up to 20% faster
Ensure quality data delivery with standards based, performance optimized data access methods
Intuitive features reduces maintenance and learning time by up to 20% ensuring sustained delivery of benefits
Reduce Total Cost of Ownership by up to 10% by unique combination of technology and locally available world class support.
Ease of USE
Data Collection
Model Maintenance
Cost of Ownership
Increase Production Reconciliation accuracy to help deliver margin improvement of up to 5% through better business decisions
Challenge Solution Benefits
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Some Customers with Honeywell Reconciliation Solutions
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Questions? Delivering real value from
Production Accounting and Reconciliation