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GROUP 9 Tarun Chadha Hersh Kenkare Ekta Poddar Arnab Guha Mallik Atul Sharma Saurav Mishra Surbhi Bhatia (121) (091) (087) (074) (075) (112) (119)
AGENDA
1
Introduction Capacity Planning
Maintenance
Inventory Management
Introduction
Significance of DCU
Whenever crude is processed, the heavy components cannot be broken down after a certain extent
The bottoms of Vacuum Distillation Unit is called Vacuum Residue (VR) and is around 20 % of crude processed
Earlier no technology was available to process it and it was simply used as fuel oil for internal consumption in the refinery In 1960s Delayed Coking process was developed to recover valuable middle distillates like petrol, gasoline, LPG from the VR Batch cum continuous process Thermal cracking process
Crude to AVU
VR to DCU
Distillation
Heating
Benefits of DCU
Possible to process high sulfur crudes Higher refinery margins
Capacity Planning
Capacity planning Aggregate Planning Scheduling APC SCM Maintenanc e Inventory
Present Capacity = 3 MMTPA (increased from 2.4 MMTPA in 2010) Capacity management is done at refinery level and not unit level 20 % of processed crude is VR; this is processed by DCU Capacity design based on 8000 hours/year or 333 days/year (Best Operating Level) Theoretical Capacity = 365 days/year Capacity Utilization = 100%
Capacity Flexibility
Aggregate Planning
Capacity planning Aggregate Planning Scheduling APC SCM Maintenanc e Inventory
State 2
Since IOCL is a PSU, the core team at IOCL follows a Level Strategy that maintains a stable workforce with stable work hours and adjusts inventory to meet demand The cycle time for crude oil was reduced from 24-18 hours at the IOCL refinery
State 3
State 4
The maintenance team comprises of contract workers who work on chase strategy and more workers are hired to handle workload as a result of reduced cycle time
Planning Department at Corporate Office of IOCL estimates demand of products for a period of 3 months. It calculates and procures required amount of crude oil. Software like RPMS and DRYA are used to determine optimum production levels at its 7 refineries
Scheduling of Personnel
Capacity planning Aggregate Planning Scheduling APC SCM Maintenanc e Inventory
3 Officers per shift X 3 Shifts a Day X 7 days a week =63 1 Officer X 1 Shift per day X 6 days a week = 6 No. of officers = 63/6 = 10.5 ~ 11 Officers
7 Operators
7 Operators per shift X 3 Shifts a Day X 7 days a week =154 1 Operator X 1 Shift per day X 6 days a week = 6 No. of officers = 154/6 = 25.55 ~ 26 Operators
The output from the online analyzer is displayed to the Panel Officer who then takes corrective action
Scheduling of Equipment
Capacity planning Aggregate Planning Scheduling APC SCM Maintenanc e Inventory
Reactor 1A Block 1
Reactor 1B
Liquid from Fractionator Reactor 2A Block 2 Reactor 2B
The only case of equipment scheduling is in the case of the reactors or coke drums In each block, one reactor (1A) is in filling mode while operations to extract coke from the filled reactor (1B) are carried out Batch Cycle time has been reduced to 18 hours from 24 hours to increase throughput from 2.4 MMTPA to 3 MMTPA At the end of 18 hours, there is a switch between reactors This helps maintain continuity of the process
Scheduling of Equipment
Capacity planning Aggregate Planning Scheduling APC SCM Maintenanc e Inventory
Operation Changeover Steam Cooling Water + Steam Cooling Water Cooling Draining Preparation for coking Cutting Preparation for heating Heating
Equipment used for preparation and cutting for the operating reactor in both blocks is common Hence scheduling the batch process becomes critical to avoid wait time and queuing of equipment Rule of thumb is start operations on 2nd reactor after time t t = Cycle time / number of blocks t = 18 / 2 = 9 hours
Scheduling
APC
SCM
Maintenanc e
Inventory
IOCL PR AVU
IOCL Oil Pipelines & Stations Fuel Gas > Internal Use LPG > Bottling Naphthalene > Blending Pool LCGO -> DHDT -> Diesel Pool
Customers
Trucks
Conveyor Belts
Storage Yard
As Petroleum Coke is a dry product there are losses due to blowing wind during movement & storage. These losses are estimated to be 4-5% of the total production. Water Sprinkler Systems at storage yard reduce these losses to about 1%. These sprinklers are cheap to install & operate resulting in huge savings through reduced pet-coke losses. These savings are estimated to be about Rs 29 Crores per year.
Total Pet-Coke Production (tonnes) Without Sprinklers With Sprinklers 10,00,000 10,00,000 Price ( Rs/Ton) 7400 7400 Estimated Loss (%) 5 1 Total Loss (Rs 000) 3,70,000 74,000
Maintenance
Capacity planning Aggregate Planning Scheduling APC SCM Maintenanc e Inventory
Maintenance
Preventive
Predictive
Breakdown
Greasing, lubrication, oil replacement, oil burners cleaning, coke cutting system
Capacity planning
Aggregate Planning
Scheduling
APC
SCM
Maintenanc e
Inventory
A major role of Maintenance is Planning and control. In certain cases maintenance of an equipment needs more than one department. Hand over sequence is determined by production. Multi-Department Coordination is the responsibility of production
Inventory Management
Capacity planning Aggregate Planning Scheduling APC SCM Maintenanc e Inventory
INPUT SIDE 4 feed tanks to store the crude oil Rule of thumb < 10 days inventory Safety stock = 2 days inventory
PRODUCT SIDE No storage required except for pet coke which has a storage yard Other products directly transferred to units
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