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A Vital Link in Smart Manufacturing Strategy OPERATIONS MANAGEMENT Aseem Sinha, M A Baliga Prateek Srivastava

Operations Management- A Vital Link in SMART Manufacturing Strategy

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Page 1: Operations Management- A Vital Link in SMART Manufacturing Strategy

A Vital Link in Smart Manufacturing StrategyOPERATIONS MANAGEMENTAseem Sinha,

M A Baliga

Prateek Srivastava

Page 2: Operations Management- A Vital Link in SMART Manufacturing Strategy

Disclaimer

Any statement, opinion, prediction, comment, or observation made in this presentation/publication

are those of the presenter/author only and in no condition should be construed necessarily

representing the policy and intent of Reliance Industries Ltd. (RIL).

The information presented herein are of the presenter/author’s own and in no way RIL attracts any

liability for any inconsistency or irregularity in terms of the accuracy completeness, veracity, or truth

of the content of the presentation/publication. In addition, RIL shall not be liable for any copyright

infringement and misrepresentation for the presented content as the content is presumed in good

faith to be a creation of presenter’s/author’s own mind.

The scope of this presentation/publication is strictly for knowledge sharing purposes and not

necessarily to provide any advice or recommendation to the audience/readers. Any endorsement,

recommendation, suggestion, or advice made by the presenter/author shall be in his personal

capacity and not in professional capacity as an employee of RIL. Any person acting on such

endorsement, recommendation, suggestion, or advice will himself/herself be responsible for any

injury/damage.

Page 3: Operations Management- A Vital Link in SMART Manufacturing Strategy

Agenda

• Introduction

• Smart Manufacturing

• Operations Management

• Reliance Journey towards Smart Manufacturing

• Summary

Page 4: Operations Management- A Vital Link in SMART Manufacturing Strategy

Reliance Industries Limited - Overview

Page 5: Operations Management- A Vital Link in SMART Manufacturing Strategy

Reliance Industries Limited

RIL Financials:

• Revenue $ 62.2 Billion

• PBDIT $ 7.4 Billion

• Net Profit $ 3.8 Billion

• Exports $ 32.5 Billion

RIL ranked 114th in the Fortune Global

500 list of the World’s Largest

Corporations in terms of revenues, and

was ranked 155th in terms of profits.

This is the 11th consecutive year that RIL

has featured in the Fortune Global 500

list

India’s largest private sector enterprise

Reliance Industries Limited

Source- Website RIL annual report-(2014-15)

Page 6: Operations Management- A Vital Link in SMART Manufacturing Strategy

Integration from Textiles to Crude Oil

• Largest refining capacity at any single location

• Largest producer of Polyester Fibre and Yarn

• 5th largest producer of Paraxylene (PX)

• 5th largest producer of Polypropylene (PP)

• 8th largest producer of Mono Ethylene Glycol

• Fully Integrated Operations

• Among the lowest operating costs in

industry

• 100% utilization rate through the cycle

• Focus on high growth India Market

TextilesFibers &

Chemicals

Polymers, Fibers

& Chemicals

Refining &

PetrochemOil & Gas Other Ventures

Naroda Patalganga Hazira Jamnagar Panna Mukta

KG Basin

Yemen

• Retail

• 4G telecom

• Others

Page 7: Operations Management- A Vital Link in SMART Manufacturing Strategy

Smart Manufacturing

Reduce reactive monitoring and convergence of key IT trends

6

Smart process manufacturing is an

integrated, knowledge-enabled, model-

rich enterprise in which all operating

actions are determined and executed

proactively applying the best possible

information and

supported by a rich

set of actionable

performance metrics.

1st -Revolution

Industrial Revolution

Started in 18th century

2nd -

Revolution

Electrically powered mass production

3rd Revolution

Introduction of Electronics,

Robotics

Information Technology

4th Revolution

Harnessing power of data.

Big Data,

Predictive Analytics

Artificial Intelligence

Page 8: Operations Management- A Vital Link in SMART Manufacturing Strategy

Smart Manufacturing - Approach

Moving the Needle via Ecosystem Optimization

7

• Focus on functional excellence at the

site level

• Technology driven approach that can

create ‘islands’ within an organization

• KPI’s & procedures tailored to

individual facility’s needs &

preferences

• Operational Excellence across the

enterprise and the ecosystem

• Create ecosystem wide data

visibility & action criteria

• Drive consistent KPI’s across the

organization

…to true enterprise wide

optimization of people & processesMoving from traditional approach

by project/site/unit…

Enterprise wide

optimization

Site

Functional

Excellence

Demand

driven mgmt.

of

Ecosystem

Page 9: Operations Management- A Vital Link in SMART Manufacturing Strategy

Pillars of Smart Manufacturing

A key driver in Smart Manufacturing

8

In Smart environment people are knowledgeable, well-trained, empowered, connected and able to

improve systems performance

Smart processes are capable of intelligent actions and responses

Smart Manufacturing incorporates Real-time, On-line predictive Models to eliminate process upset

and equipment failure before it happens

People

DataProcess

Page 10: Operations Management- A Vital Link in SMART Manufacturing Strategy

Why Operations management is a Smart Manufacturing component

Best practice, workflow and people

9

Areas Attributes

Smarter Business and Engineering

• Analysis and capture of Operating performance in an

information model

• Verification that planning and operating targets are

inside Safety Reliability and Efficiency Zone

Smarter Operator

• Real time On-line predictive models

• Control and monitoring Zone definition given to Control

System and Operator

• Operator focus on process exceptions and production

management

• Fully competent, equipped & empowered and

connected

Smarter Process Execution

• Workflow to download Task (targets & Limits )

• Execution by control and optimization (model based)

• Exception/deviation monitoring & situation awareness

1

2

3

Page 11: Operations Management- A Vital Link in SMART Manufacturing Strategy

Reliance Smart Manufacturing Vision

Manufacturing Operations - Enabled through integrated Digital

platforms

• Robust technical architecture

• Nimble & real time data management

• Strong analytics capability

• World class process architecture

Which is continuously monitored & proactively governed

through best in class practices

Page 12: Operations Management- A Vital Link in SMART Manufacturing Strategy

Reliance Smart Manufacturing Initiatives

Programmatic approach towards Smart Manufacturing

11

Operations

Management

Operator

Competency

Manufacturing

Information

Intelligence System

• Integrated limit repository

• Operating instructions

• Operations management

• Operations logbook

• Interlock bypass

management

• Develop, implement &

maintain High Fidelity,

Operator Training

Simulator for every plant,

at all sites

• Information integration

• Role-based KPIs

• Dashboards

• Monitoring

• Collaboration

• Safe operations

• Standard work processes

• Improved situational

awareness &

communication

• Enhance Operator

Competency

• Increase productivity

• Improved unit

operations

• Energy savings

• Standardization

• Visibility

• Agility

Smart

Operator

Round

Wireless

Transmitters

Data

Reconciliation

Model

Online/Offline

Models and

Simulators

Real

Time

Optimizers

Robotics for

confined

space work

Asset

Performance

Management

Risk

Based

Inspections

Advance

Process

Control

Drones for

Remote

Inspections

Page 13: Operations Management- A Vital Link in SMART Manufacturing Strategy

Summary

12

• Transformative time for industry driven by Technology

Trends - Cloud, IIoT, Mobility, Predictive Analytics, Connectivity

• Managing dynamic & constrained environment shall

require Smart Manufacturing and Work Process

Transformation

• Digitization is the way forward for manufacturing industry

Page 14: Operations Management- A Vital Link in SMART Manufacturing Strategy

Reliance Industries Ltd.

Digital Transformation driving Smart Manufacturing