North American Refinery Improvement Project Uncovers Significant Savings (~70M USD/yr)

Rich Database of Best-in-Class Performance Metrics, On-Site Visits, and Walk-Throughs by Industry Experts Enabled a “Quick Start” to a Robust and Validated Improvement Flight Path

2020 FUELS STUDY & SUBSEQUENT DEEPER ANALYSIS VALIDATES THE OPPORTUNITY

After receiving results from their participation in Solomon’s 2020 Worldwide Fuels Refinery Performance Analysis (Fuels Study), a North American operator wanted to take steps to enhance the performance and competitiveness of a refinery that lagged in comparison to other refineries in their fleet. The client asked Solomon to evaluate and prioritize gap closure opportunities and deliver recommendations to improve existing energy, fractionation and yield, reliability and maintenance, and personnel performance.

WORK SUPPORTED & ACCELERATED EXISTING INITIATIVES

Solomon proposed an approach to accelerate gap closure. The idea of leveraging Solomon’s Performance Excellence Process™ (PEP™) and Workforce Optimization (WFO) methodology, while keeping in mind the client’s own initiatives, was selected as a solid approach to tackle the challenge.

The operator realized that Solomon’s large, proprietary database of performance metrics, including detailed data diagnostics, best practices, and deep experience in uncovering recommendations, offered a significant advantage compared to other approaches to close performance gaps. Secondly, they valued the implementation and change management assistance suggested by Solomon to achieve and sustain identified improvements.

PROJECT KICK-OFF ESTABLISHED A TEAM APPROACH ALONG WITH WELL-DEFINED ACCOUNTABILITY, SCOPE, TIMELINES & DELIVERABLES

The project kicked off with additional data diagnostics and analysis beyond the 2020 Fuels Study results. This first step provided a deeper comparison of the client’s refinery with the best in class to help understand gap drivers and pinpoint opportunities. Afterwards, a steering committee was established consisting of both client refinery personnel and Solomon experts to enable regular communication and collaboration to assure project alignment on deliverables. Teams met regularly to ensure that the project scope, objectives, timeline, and deliverables were met.

SYSTEMATIC, RIGOROUS APPROACH APPLIED TO ENSURE SUCCESS

The approach incorporated both the technical, commercial, and behavioral aspects of the capital-intensive operation. Analysis and detailed recommendations highly leveraged Solomon’s proprietary database of asset operational and financial performance and best practices. Rigorous validation and distinctive methodology to normalize differences in scale, complexity, and location enabled true comparisons.

The work then commenced with specific tasks that would:

• Assess the individual process units and the overall energy performance of the refinery, including refinery steam, fuel, and electricity balances.
• Evaluate and define key conversion unit yield performance.
• Define both turnaround and non-turnaround maintenance cost and work process efficiencies at both the process unit and refinery level of performance.
• Review the overall organizational effectiveness for the full refinery site.
• Compare all areas of performance to best in class.

PROVEN APPROACH BY REFINERY EXPERTS LEADS TO A CREDIBLE PLAN SUPPORTED BY ENTIRE ORGANIZATION

On-site visits, document reviews, facility tours, and refinery walk-throughs were conducted by Solomon experts with years of refining experience. Solomon’s Energy Diagnostic Tool was utilized to evaluate what the best in class have been able to achieve and what timelines were reasonable. This demonstrated to the client what was both possible and sustainable.

Interviews encompassed approximately 20% of the workforce and helped to acquire the comprehensive feedback needed to substantiate the best practices assessment and develop practical detailed recommendations. Solomon staff attended meetings, went out in the field, toured the shops, laboratory, and warehouse, and conducted one-on-one anonymous interviews. On-site activity also included informal observations, discussions with on-shift personnel and review of numerous documents and supplemental data.

The results from the on-site analysis delivered a thorough understanding of current work practices and facility performance and established the basis for future recommendations. Best practice scorecards applied across all areas for the refinery were then validated with the organization (both scores and comments) before presenting to management. This created internal company alignment and support with staff. Overall, close to 500 best practices were evaluated and reported on.

RECOMMENDATION & PRIORITIZATION WORKSHOP DELIVERED OVER 50 DETAILED OPPORTUNITIES & STAFFING OPTIMIZATIONS VALUED AT ~70M USD/YR

After an extensive review and analysis of pertinent performance data, numerous recommendations and prioritization workshops took place to identify and prioritize specific recommendations and areas of focus (Figure 1). The refinery saw significant value in the first workshops and requested additional prioritization workshops encompassing the client’s site initiative overload beyond Solomon’s recommendations.

Identified improvement opportunities and staffing optimization were valued at approximately 70M USD/yr:

IMPLEMENTATION & LASTING CHANGE

The client requested that Solomon participate in implementation as a partner and outside driving force for change. Solomon also developed ongoing benefit calculations and provided detailed documentation of implementation plans and progress. Client requested the outside support to help facilitate the change and implementation of the recommendations which would be sustainable with our methodology.

Implementation support also included Change Management workshops for the Change Management Team (CMT) and Best Practice Teams (BPTs) and additional workshops for Problem Solving, Process Mapping, Activity Analysis, and Implementation Plans & Actions where Solomon provided:

• Technical expertise
• Change management expertise
• Third-party conflict resolution objectivity
• Benefit tracking experience

Based on value and savings, the client is continuously engaging Solomon’s assistance with implementing recommendations.