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Introduction to Chemical Manufacturing CM4120 Chemical Plant Operations D. Caspary January, 2009

Introduction to Chemical Manufacturing CM4120 Chemical Plant Operations D. Caspary January, 2009. CM4120 Chemical Plant Operations Lab Introduction to Chemical Manufacturing. Outline : A Chemical Engineer’s Role in Industry Internal and External Influences and Constraints

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Introduction to Chemical Manufacturing CM4120 Chemical Plant Operations D. Caspary January, 2009

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  1. Introduction to Chemical Manufacturing CM4120 Chemical Plant Operations D. Caspary January, 2009

  2. CM4120Chemical Plant Operations LabIntroduction to Chemical Manufacturing Outline: • A Chemical Engineer’s Role in Industry • Internal and External Influences and Constraints • What is Quality Management? • What is Supply Chain Management?

  3. CM4120Chemical Plant Operations LabIntroduction to Chemical Manufacturing Primary Goal of Chemical Manufacturing? How does your company achieve that goal?

  4. Agricultural Products Automotive Coatings and Adhesives Consumer Products Energy Environmental Remediation Food Processing Intermediate Products Petrochemical Pharmaceutical / Health Care Polymer Processing Pulp and Paper Semiconductor Industry CM4120Chemical Plant Operations LabIntroduction to Chemical Manufacturing Broad Range of Industries:

  5. CM4120Chemical Plant Operations LabIntroduction to Chemical Manufacturing Entry-level titles for B.S. Chemical Engineers: • Chemical Engineer • Process Engineer • Product Specialist • Product Engineer • Project Engineer • Research Engineer • Production Engineer

  6. CM4120Chemical Plant Operations LabIntroduction to Chemical Manufacturing Job Responsibilities will include: • Provide service or product on a timely basis • Manage supplier relationships • Manage customer relationships • Sufficient quality, consistently • Expand existing markets • Develop new products • Continuing education/professional development

  7. CM4120Chemical Plant Operations LabIntroduction to Chemical Manufacturing Key events of the past 10 to 15 years have changed the business climate in the US and world-wide… • Breakup of Soviet Union • Free/open trade between Western European countries – EU and Euro • NAFTA and CAFTA, future FTA’s • China granted Most-Favored-Nation trading status • Adoption of Shipping Containers • Expanding markets and infrastructure development in India, China, Pacific Rim, and African nations

  8. CM4120Chemical Plant Operations LabIntroduction to Chemical Manufacturing Catastrophes (man-made or natural) impact the manufacturing environment… • 9/11 Incident and other terror attacks worldwide • Major hurricanes, earthquakes, tsunamis, etc. • War • Instability in the price of oil • Stock market crash of 2008 • Lending crisis of 2008 Companies must adapt to survive

  9. CM4120Chemical Plant Operations LabIntroduction to Chemical Manufacturing Business Constraints Your company must maintain a level of competitiveness/profitability while complying with: • Environmental, Health, and Safety regulations • Labor laws • Tax laws • Patent Law • Homeland Security Act • International trade agreements

  10. CM4120Chemical Plant Operations LabIntroduction to Chemical Manufacturing Additional Constraints: • Certifications or quality assurance standards • Supplier and customer audits • Internal politics/ biases • Your own moral and ethical standards Need to critically review all aspects of the business to maintain competitive edge.

  11. CM4120Chemical Plant Operations LabIntroduction to Chemical Manufacturing Ways to improve profitability: • Increase Income • increase throughput • increase on-time order fulfillment • improve stability of process • improve quality • Decrease Expenses • reduce inventory – product, feedstocks, spares • maintenance costs • labor costs • production costs • environmental releases • energy costs • off-spec product

  12. CM4120Chemical Plant Operations LabIntroduction to Chemical Manufacturing All improvements fall into one of two categories: Improved processing and control thru Quality Management, or Increased profitability thru efficient Supply Chain Management

  13. CM4120Chemical Plant Operations LabIntroduction to Chemical Manufacturing In summary: What you (your company) did yesterday isn’t good enough for tomorrow! Your company is driven to continuous improvement • by your customers • by your competitors • by a changing world

  14. CM4120Chemical Plant Operations LabQuality Manufacturing Increased Profitability thru Quality Management

  15. CM4120Chemical Plant Operations LabQuality Manufacturing How is Quality defined? Quality is what adds value to your raw materials. ISO9000: The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied need. Quality is alwaysdefined by the customer.

  16. CM4120Chemical Plant Operations LabQuality Manufacturing What is Quality Management ? Managing systems and processes for the elimination of errors. Creating an environment for continuous improvement.

  17. CM4120Chemical Plant Operations LabQuality Manufacturing Formula for a generic process: A+B=C where A=system contribution, B=human contribution, and C=desired (measurable) output manipulating either A or B causes variation in C Variation is the enemy of quality manufacturing! – W. Edwards Deming

  18. CM4120Chemical Plant Operations LabQuality Management Tools Application of Quality Management Tools to PDMS Pilot Plant - a few examples -

  19. CM4120Chemical Plant Operations LabQuality Management Tools Six Sigma DMAIC Cycle Deming Cycle

  20. CM4120Chemical Plant Operations LabQuality Management Tools Goal setting: Helps us “maintain constancy of purpose” if we define our purpose and set appropriate goals. • Goals must be attainable • Goals must be measurable “Reduce variation in product viscosity” is a poorly written goal. “Reduce the variation in viscosity to + or – 5 CSt” is better because it is measurable.

  21. CM4120Chemical Plant Operations LabQuality Management Tools Fishbone (Cause and Effect) Diagram Jason Copenhaver Jason Gudenau Jeff Marana Josh Wenschlag March 20, 2003

  22. CM4120Chemical Plant Operations LabQuality Management Tools Pareto Chart:

  23. CM4120Chemical Plant Operations LabQuality Management Tools Statistical Process Control Develop control chart to convert fluctuations in a measured characteristic into useful information: • Continuous processing, look at desired characteristic vs. time • Batch processing, compare characteristic of current batch at t0, t1, t2, etc. to prior batches at t0, t1, t2, etc.

  24. CM4120Chemical Plant Operations LabQuality Management Tools Actions: Replaced equipment to eliminate equipment sources of variation Created a spreadsheet to accurately calculate batch loadings Refined the SOP to clarify confusing instructions Added automation to prevent human error Results: Reduced our variation to + or – 5 CSt

  25. CM4120Chemical Plant Operations LabIntroduction to Supply Chain Management Increased Profitability thru Supply Chain Management A Business Management Method

  26. CM4120Chemical Plant Operations LabIntroduction to Supply Chain Management What do we mean by the Supply Chain? Concerns the flow of materialfrom procurement to delivery of finished products • purchasing • receiving • warehousing • processing • packaging • shipping

  27. CM4120Chemical Plant Operations LabIntroduction to Supply Chain Management What do we mean by the Supply Chain? Concerns the flow of informationthrough business processes • sourcing • planning • technology solutions • inventory management • sales, marketing, and advertising • order fulfillment • customer service

  28. CM4120Chemical Plant Operations LabIntroduction to Supply Chain Management Information flow in a manufacturing environment: Originates at the field device or from an operator DCS or other control system and their operators Manufacturing Execution System (MES) and their operators Supply Chain (Enterprise) Management System and their operators

  29. CM4120Chemical Plant Operations LabIntroduction to Supply Chain Management Enterprise-wide software management tools available: • SAP, i2, iBaan, others • manages everything from order entry to invoice • provides links to suppliers and customers • Require that all relevant data at all levels of the business be available in real time

  30. CM4120Chemical Plant Operations LabIntroduction to Supply Chain Management Why manage the supply chain? U.S. Chemical Industry is $400 billion/yr. in sales Better management of supply chain yields 7.5% of sales in savings for typical chemical manufacturer $30 billion/yr. potential savings

  31. CM4120Chemical Plant Operations LabIntroduction to Supply Chain Management Where do gains come from? It is estimated that U.S. CPI has 80 days inventory Reduce inventory by 50% and save 30% of the value of inventory Estimated savings are $20 billion/yr.

  32. CM4120Chemical Plant Operations LabIntroduction to Supply Chain Management Where do gains come from? Typical cash-to-cash cycle time is 6 months Best-in-class implementations will reduce cash-to-cash cycle time to 30 days

  33. CM4120Chemical Plant Operations LabIntroduction to Supply Chain Management Where do gains come from? • Automation of business processes • Open communications w/ suppliers • Open communications w/ customers

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