A Chemical Process Development Case Study as a source of requirements for the GOLD project

1. A Chemical Process Development Case Study as a source of requirements for the GOLD project Allen Wright Chemical Engineering Newcastle University

2. Project GOLD • EPSRC e-Science Pilot Project • Highly dynamic virtual organisations for the fine and performance chemicals industry • Academic collaborators • Computing Science and Chemical Engineering, Newcastle • ManagementSchool, Lancaster • 9 RA’s • Industrial participation: • SOCSA, NEPIC, Britest, CPAC Insight Faraday Partnership • One North East (CPI)

3. The batch chemical industry

5. Overview of the batch chemicals business • Speciality, agrochemical and pharmaceuticals (many companies) • Large sector of chemicals industry with $9-12bn share of $250bn global market • Tens of thousands of low volume high value products • £10k to > £1m per tonne • Development consumes most of the R&D resource • Time to market a critical driver

8. Overview of the speciality chemical business • Key success factors in manufacturing speciality chemicals • Companies have traditionally relied on developing unique chemical expertise • High barrier to new entrants • Charge higher margins on specialities produced • Operate the most cost effective production plant • Deters new competitors But, eventually competitors do catch-up!

9. Business intensification through new innovation Today’s industry requires more than traditional chemical innovation • Time compression • Commercialise innovations faster than competitors • reduce the cost of product development • use freed resources on other projects • Effective information processing across full lifecycles • Managed information flow ensures the R&D function is fully integrated into the business operation • Facilitate partnerships • Outsourced R&D labs, safety assessment, chemical analysis, data analysis, pilot studies, manufacturing, marketing and distribution • Create agile highly dynamic virtual organisations

10. Product Marketing Eau de Chem Technical Group Consultant Distillation Operation Chemicals Virtual company (Teesside) BatchCAD Consulting Simulation Software Business & Academic Consultants Europe Asia Contract Manufacturing Perfumery evaluation & Quality Control Raw material sourcing

11. Case study: the reality of virtual development A major product of IFF • Aromachemical Sales • world market 1400 tonnes @ $50 per kg (1995) • $70 million per annum • Patented four stage process • 2 reaction • 2 distillation • Patent expired • Competitors develop ‘me too’ products when patent expires

12. Conventional development Virtual development R&D 2 years    Project leader Chemists Chemical engineer 1 year    Project leader Chemists BatchCAD consultant Process development 1 year     Contractors Chemists Chemical engineer HSE + environmental Contract manufacturer’s resources Time to market 2 years early Time to market 3 years 1 year Costs $750k $60k Throughput < 100 tonnes pa 300 tonnes pa The reality of virtual process development 92% cost saving

13. Virtual chemical development company • Technical success: • Chemistry and Engineering in parallel • fast • effective • profitable • But management difficulties

14. Limitations of the Virtual Company • Scalability • A limit on the number and size of projects • Limited by complexity and information overload • Dynamics • Limited ability to respond to changing requirements • Contract management very slow • Mistakes increase • Control • Inability to manage and impart knowledge across multiple organisations • Little control over outsourced components

15. Process development: task analysis

16. CUSTOMER SUPPLY Modifications to accommodate SPECIFICATION downstream processing BOX 10 PACKAGING WAREHOUSING & FINAL PRODUCT STORAGE UNIT UNIT UNIT UNIT OPERATION OPERATION OPERATION OPERATION STORAGE LIFE 1 2 n DISTRIBUTION Physical form of final product prescribes downstream handling MAKE OR BUY TRANSPORTATION ASSESSMENT Stage Stage Stage DISPOSAL OF OLD Analysis Analysis Analysis STOCK 1 2 n Chemical Process Data BOX 11 DIRECT MANUFACTURING Engineering Process Data COSTS BOX 12 BOX 16 Production Planning & BOX 13 Throughput Analysis PAC 7 Raw Material Costs PAC 5 TOTAL Processing Costs PAC 6 INDIRECT MANUFACTURING MANUFACTURING COSTS Safety Evaluation BOX 14 COSTS Environmental I. A. BOX 5 PAC 8 For Automated Plant: conversion Basic Operating Procedures of Process to a Software Code Information Model Snapshot - development phaseIntegration of unit operations

17. Chem Dev Information Model

18. Dynamism in chem dev • Everything may change throughout a projects lifecycle • Partners • The basis of relationships between partners • The goals of the VO (what it is trying to do) • The objectives of the partners (how they are going to do it) • The basis for change will probably not be understood in advance • The implications of a missed objective or changed goal depends on the context of the running development process: this will not generally be known in advance • Unexpected disruptions might result in novel decisions

19. The GOLD demonstrator - Process Development Case Study • Based on a real, current chem dev project – not research • Multiple partners • Distributed management • Conversion of a batch process to a continuous process

20. Current project task analysis

21. Task analysis: disturbances

22. Highly dynamic project

23. Continuous Process Flowsheet

24. Continuous Process Flowsheet

25. Filtration Services Centrifuge Catalyst Separation Technology ??? Eau de Chem Europe USA Asia Chemical Engineering and Advanced Materials

26. Tight integration • Organisations must be able to share resources (IT connectivity) in a flexible way (loose coupling) • They must be able to control access to these resources in a manageable way • They must be able to specify the nature of their relationships with their partners • what will be done, how it will be coordinated • They must be able to make events visible to partners to maximise the efficiency of cooperation, collaboration and coordination

27. Contradictory requirements • VOs must be highly dynamic • Every part of a VO may change during its operation: • Structure • Process • Cost of adoption must be minimal • Minimal requirement to adopt new technologies, systems etc. • No requirement to change processes or business models • High degree of integration between partners • These requirements seem contradictory and every VO will have a different emphasis on each • GOLD provides infrastructure supporting the formation and operation of VOs • Middleware

28. Volume of substance (per manufacturer) Registration period (existing substances) ≥ 1,000 tonnes p.a. CMR or PBTs/vPvB > 100t p.a. 2007 - 2010 100 – 1,000 tonnes p.a. 2010 - 2013 10 – 100 tonne p.a. 2013 - 2018 1 tonne p.a. 2013 - 2018 REACH Legislation – Imposing VO’s • Registration of substances ≥ 1 tonne/yr • Evaluation of substances • Authorisation for substances of high concern • Registrants • Manufacture of substances, Import of raw materials and preparations

29. Forming REACH consortia • Need to cooperate, coordinate, collaborate to complete registration • Saving on registration fees • Managing the registration process • Consortia receive higher priority in registration • Time to market • Large overhead - £150,000 must be minimised • Restrictions on import/export • Need for communication along the supply chain

30. Thirty thousand substances to be registered • The GOLD project is developing a software (middleware) infrastructure supporting the rapid formation and agile management of consortia (virtual organisations) • Security; Trust; Coordination; Dynamism; Information management • The infrastructure can minimise the overhead of forming and managing consortia • This will help make REACH workable

31. Demonstrator II – the construction industry • Large construction project in Northern England • Parent company based in Italy • Local administration in London Build in 3 sections, by 3 separate organisations entirely imported labour (VO’s) Huge organisational problems – winter conditions, materials supply chain, lodgings, surveying etc Local resentment basis of trust?