A New Way to Extract More Value from Your Production Supply Chain

A New Way to Extract More Value from Your Production Supply Chain … with Production Accounting and Reconciliation (PAR)

2 © 2015 Honeywell International All Rights Reserved

• Accounting Process ‒ Basic ‒ Enhanced

• Challenges to achieving Enhanced Value ‒ PAR helps overcome Challenges

• PAR Value Proposition ‒ Basic Value ‒ Enhanced Value ‒ Technology Impact

• Summary

Outline


‒ 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



Shipments

Process Units

Flare, Losses

Sulfur, Fuel


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


Feeds


Intermediates Products



Shipments Process

Unit

Process Unit

Process Unit

Flare, Losses

Sulfur, Fuel


• 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


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


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


Understand the Imbalance

View Key Stream Information

A configurable high – level overview of the key production values

Understand Shipment / Receipt patterns

Understand Inventory patterns


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


Fast Navigation

In Built Inventory Calculation

Grid View for Expert User Actionable Objects


Missing Movement Identification • Missing Movement Solver identifies potential missed movements and provides

feedback on the delta in objective function from the change


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.


• 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


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


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


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


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


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


Easy to Learn

In built Demo Models for Training

MMM Demo

Refinery Demo

Visual Cues and Modular Flowsheets enable faster learning

Energy Balance Demo


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


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


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


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


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


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.


Operator’s Manual Entry Forms .

Inventory Entry Form

Manual Movement Entry Form


Easy Migration from PB Excel Template to Migrate Configuration

Utility to Migrate Transactions

Automatically create Graphical Flow sheets

PAR

PAR PB

PB


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


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


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


• 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


• 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


• 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


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%


• 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


• 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


• 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


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


Illustrative Summary

Sustained Business Benefits through Smart Operations

Quicker benefits from PAR due to

faster adoption by Customer Workforce

Benefits from PAR are Sustainable


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


Some Customers with Honeywell Reconciliation Solutions


Questions? Delivering real value from

Production Accounting and Reconciliation