Refinery Operator Increases Mechanical Availability, Reduces 34M USD/yr Gap in Lost Production by 14M USD in 1 Year
Regular Data Collection and Analysis Combined with Robust Action Planning and Implementation Methodologies Support Accelerated Improvements
A refinery aimed to accelerate maintenance and reliability performance improvement. Further, they looked to reduce recruiting challenges for a new refinery expansion by optimizing personnel resources in existing operations.
The operator achieved significant improvement in overall performance — a 42% (14M USD reduction) in net gap primarily attributable to an increase in mechanical availability. The operator is now better positioned to staff the new refinery expansion.
IMPROVE PERFORMANCE & SUPPORT FUTURE PERSONNEL NEEDS
A long-term Middle East participant in Solomon’s Fuels Study received visibility into two major challenges. In particular, the closing of reliability and maintenance gaps had been an ongoing challenge. Secondly, the refiner needed to operate more efficiently and free up needed staff for a pending expansion.
Determined to close the reliability and maintenance gaps, the operator set up a task force and utilized Solomon for guidance and support. The client valued Solomon’s background knowledge with the site due to years of study participation. This, combined with the Performance Excellence Process™ (PEP™) structured approach and Solomon’s proven methodologies, gap-closure insight, and expert guidance, all created strong support for the project. The PEP generated 120 specific recommendations. An action plan was then developed with Solomon advising and the client implementing to deliver the quickest impact to the client’s priorities.
ACCELERATING IMPROVEMENT WITH DEEPER INSIGHT & PROVEN METHODOLOGIES
As the improvement project progressed, the client requested Solomon’s help with implementation methodology. To do this, Solomon audited the client’s implementation plan three times a year and participated in routine implementation meetings to advise and assist.
During action plan execution, new management sought to achieve faster and greater informed results by using Solomon’s extensive cache of industry data. The client valued participation in Solomon’s yearly RAM Study to provide the required granularity along with more regular data collection and analysis to score progress. The first RAM Study results served as a baseline to measure progress. A subsequent RAM Study confirmed the client’s positive progress. The result enabled the client to more efficiently utilize resources and better position them to staff and run the new refinery expansion.
VALIDATING PROGRESS WITH REGULAR DATA COLLECTION
Implementing the RAM Study recommendations resulted in a 41% decrease in mechanical downtime and a 14M USD reduction in total net gap (34M USD in 2020 to 20M USD in 2021) (Figure 1.). The client participates in an annual RAM Study and engages Solomon as a trusted advisor for support in analyzing and understanding the data and developing, prioritizing, and implementing recommendations. In addition, action plans and targets were generated and prioritized based on changing business needs (Figure 2).
Figure 1. Mechanical Downtime
The data confirmed that performance improved, and the numbers were going in the right direction. The RAM Study results show that the refiner’s overall comparative performance went from Q3 to Q2 in 1 year by acting on the recommendations (Figure 3). The client commented that “Solomon’s data is keeping us honest.”
PARTNERSHIP APPROACH PROVES TO BE MOST EFFECTIVE
The client continues to engage Solomon to assist in performance improvement efforts. “We are now part of the client’s improvement team,” stated one of Solomon’s advisors assigned to the project. Action planning and target setting, along with regularly analyzing and interpreting the data, enables the client to achieve their goals of reducing performance
Figure 2. Cyclical Approach to Validated Performance Improvement – Action from Insight®
Figure 3. Path to First-Quartile RAM Performance
enables the client to achieve their goals of reducing performance gaps and optimizing staffing efficiency. The combination of combining Solomon’s data, methodologies, and industry expertise delivered measurable and meaningful results.
SOLUTIONS
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RELATED INSIGHT
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