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RELIABILITY

Petrofed. RELIABILITY. 25 th April, 2014 | New Delhi . N. Sethurathinam , Executive Director , (Maintenance & Inspection) . THE PARADIGMS FOR THE REFINING FUTURE.

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RELIABILITY

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  1. Petrofed RELIABILITY 25th April, 2014 | New Delhi N. Sethurathinam, Executive Director , (Maintenance & Inspection)

  2. THE PARADIGMS FOR THE REFINING FUTURE “The only given in this shifting landscape is that refining excellence is imperative in all input, output and asset related dimension.” Source: AT Kearney’s Paper on Refining 2021 -Who will be in the game? “Achieving 97+ % in Operational Availability allows refinery staff the time needed to focus on improving efficiency.” Source: Solomon Associates - 2012 study report for IOC

  3. UNPLANNED SHUTDOWN ANALYSIS - FY 2013-14 (Apr-Jan)Root Cause Analysis of Unplanned Shutdowns (35 nos.) REFINERIES Main Focus Areas for improvement

  4. THE CHALLENGE Increase We are confronted with two overriding challenges: • Increasing “Up-time” or availability of plant. • Delivering required levels of availability at levels of cost equal to or better than competitors. The Goal is “Pacesetting Performance” Availability Objective Cost Reduce Pacesetting Performance

  5. THE OPPORTUNITY…. • Significant performance gap between “Pacesetters” and poorer performance. • Availability – Pacesetter > 10% higher • Maintenance cost – Pacesetters costs <30% of poorer performers. • Maintenance cost performance gap can be worth in excess of 60c/bbl. • Pacesetters achieve both High Availability and Low Cost.

  6. PROFIT IMPROVEMENT POTENTIAL IN DOWNSTREAM MANUFACTURING(SOURCE: EARLIER OIL & GAS INDUSTRY STUDY) Indicative Opportunity in Operation Indicative Opportunity in Maintenance Significant percentage of benefits possible

  7. Safety & Reliability are inseparable They are two sides of the same coin. And, energy efficiency forms the third dimension – intertwined with safety and reliability.

  8. Reliability & Safety go together

  9. RELIABILITY • Reliability is directly related to plant availability. • Plant availability is ability of plant to deliver desired function without interruption. • Reliability is measured by: • Plant Availability Factor (PAF). • Number of interruptions or unplanned shutdowns. • Mean Time Between Interruptions (MTBI) during Target run-length.

  10. UNIT INTERRUPTIONS & RELIABILITY • Interruptions impact Margin: • Increased Fuel & loss due to frequent startup and shutdown • Increased efforts. • Increased slop generation / off-spec. products / effluents. • Likelihood of statutory non compliance • Disturbs Harmony with neighborhood. • Thermal shock on equipment leading to unsafe situation, fires etc. • Impact on profitability. • Increased Repair & Maintenance Expenditure. • Reduced catalyst life. • Increased Catalyst & Chemicals Expenditure • May lead to long outage of Catalyst based Units which are profit yielding. • Emergency sourcing of Spares,Services,Catalyst,Chemicals. • Higher Price- Opportunity Cost • Increased exposure to Audit, Vigilance • Increased employee cost. • Increased stress level & work life imbalance.

  11. UNIT INTERRUPTIONS & RELIABILITY The main pillars of Autonomous Maintenance, Focused Improvement, Planned Maintenance, Quality Maintenance and Early Management need to be strengthened.

  12. MAINTENANCE PERFORMANCE CHARACTERISTICS From “as-is” to “To-be”

  13. THE PATH TO RELIABILITY - OUTPACING THE PACE-SETTERS

  14. HOW TO ENHANCE RELIABILITY COMPREHENSIVE CULTURE CHANGE REQUIRED • Multi-disciplinary systemic approach. • Operation and Maintenance function as a team. • Treating each maintenance event as an opportunity to up-rate / upgrade. • Using reliable redundancy. • Adopt world-class best practices. • Leverage OEM experience and design resources to improve performance. • Introduce and incubate new technologies aggressively. • Get external domain experts to show you the mirror – audits / business improvement programs. REACTIVE PROACTIVE

  15. THE RELIABILITY JOURNEY … • 2000 • 2004-05 • 2007-08 Reliability Task Force (RTF) Cross Audits for Reliability. • 2008-09 TPM Excellence Award – PR & BR. TPM • 2009-10 TPM Excellence Award – GR. Revisit of RTF. Continuously striving for improvement International Best Practices: TPM Excellence Award – HR. • RBI • RCM • Consistent Maintenance Transformation • Remote Surveillance • Excellence in consistent TPM commitment – DR. TPM Excellence Award – DR. Excellence in Consistent TPM Commitment – PR & BR. Excellence - BGR • International Best Practices • 2010-11 • 2011-12 • 2012-13 • Strengthening On-stream Monitoring • 2013-14

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