Beruflich Dokumente
Kultur Dokumente
B.K. DATTA
ED (SCO), BPCL
IMRC, 2008
IIM, BANGALORE
1
Refinery
production
management
Pipeline/bar
ge/rail/road
distribution
Crude
Integrated
Primary
purchasing
Crude
freight cost
reduction
optimization of
all the refineries
Buying of
products from
competitors
Reduction in
freight
Retail
LPG
I&C
Aviation
Depot
Secondary
management freight
Depot
rationalisation
Inventory
management
Secondary
freight cost
reduction
LPG
I&C
Aviation
Customer
management
Retail
LPG
I&C
Aviation
Lubes
quality
giveaways
IT&S
MANUFACTURING
MUMBAI
REFINERY
MR
KOCHI
REFINERY
KR
Design
principles
NUMALIGARH
REFINERY
NR
MARKETING
I& C,
AVIATION,
LUBES
Drivers of value is
Netback
Overall optimization
requires three actions
Crude cost
Crude cost
Value addition by
(dependant on
supply, demand),
freight and import
tariff
refinery
Marketing margin
Product placement
cost
Products produced
dependant on
refinery
configuration
Configuration
Product placement
dependant on
marketing margin,
logistics cost,
customer
incentives
Refinery situation
comprising of two or
three crude
distillation units and
downstream facilities
Different flexibility in
processing crude
as PIMS process
industry model
simulation
Supply Chain
Optimization
Department to
optimize based on
Crude cost
Optimal production
Product distribution
plan
Reduce
operating
complexity
Reduce
marginal
cost
Reduce
material
cost
Reduce variety
of crude
Purchase crude
jointly
Use existing
approach
Use D GRM for
spot crudes
Buy crude
for existing
throughput
cheaper
Use forward
prices for all
crude
Modify
decision
making tools
Improve net
contribution
Increase
demand forecast
accuracy
Change term
spot crude ratio
Be flexible on
crude
throughput
Focus
area
Use netback
prices
Increase
marginal
contribution
Relax the constraints on the I&C
products
Relax I & C
constraints
1
5
SCO Objectives
1
Demand
Planning
and review
2
Crude
Evaluation,
Selection &
Nomination
Inventory
Management
set norm, review
Monthly
Distribution Plan
execute and review
Refinery
Monthly Plan,
Product
Exchange Plan,
X indicates
units which
processes cut
across
Enabling Business
Processes
Core Business
Processes
Business Units
HR
Planning Demand
Demand Planning
Refinery Planning
Crude Purchase
Crude evaluation
Product exchange
Inventory mgmt
Review
Refinery
IT, Ship
Log.
Mktg
SCO
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Creating Demand
Retail
I&C
LPG, Lubes, Aviation
Meeting Demand
Production
Crude Purchase
Logistics
X
X
Finance
IT
Others
X
X
X
X
X
Note: Marketing includes Retail sales, Industrial & Commercial product sales, Aviation, Lubricants; IT = International Trade
Refinery
Maximise
Corporation benefit
Vs
International trade
(crude procurement)
Industrial product
sales
Earnings / savings
from shipping, etc
I&C business
volumes
Eg. Need to
discount to be
competitive
Vs
9 Cr loss due to
impact on refinery
from 7 day delay
Impact of
decisions
Vs
Need to recover
Vs
freight
Opportunity
impact
Simple Integrated
Business Process
Clearly
documented and
communicated
Business
Process
Technology
Use of Industry
proven
solution/tools
Linkage of
modules across
units
Line of Sight
Selection for a
matrix
Capability
development
- (technical and
behavioural)
People
Integration
Reliable consistent,
integrated and
timely information
through supporting
processes
- MIS / information
flows
- Meetings & forums
11
Output
Input
Crude oil
availability
Refinery
capacity
PIMS model
- Refinery units
- Product specifications
- Blend mix
- Crude oil assays
Demands by
Marketing
units
Optimum
crude mix
and
product
slate
Crude and
product
prices
12
Process
3 Accountability
Central
4
support
Objective
function
Maximise NCR
Subject to
constraints
and volume)
Spot: Crude availability (grade
and volume)
What has
changed?
ICPM PIMS
model used
Netback prices
Flexible
demand
Flexible
Refinery unit availability
Other
inputs
Crude prices
Throughput
Objective
function
Maximise NCR
Subject to
constraints
What has
changed?
ICPM PIMS
model used
Netback prices
Flexible
demand
Flexible
Refinery unit availability
Other
inputs
Crude prices
Throughput
Objective
function
Maximise NCR
Subject to
constraints
What has
changed?
ICPM PIMS
model used
Netback prices
Flexible
demand
Flexible
Refinery unit availability
Other
inputs
Crude prices
Throughput
Crude Optimisation
Fortnightly plan
M1 M2 M3
F1 F2
Spot Crude
Spot Crude
Valuation
Purchase
Crude
Nomination
Cargo nomination
Fortnightly plan
F1 F2
Crude blend
Spot/Semi term
Value Based Product Exchanges Plan - Consolidation of strengths & protecting our weakness
on Euro-3 Grades
Movement Plan drawn with overall Corporate interests - Well defined Objective Function of Revenue Maximization
- Maximum Utilization of Own Pipelines
19
Tentative
Distribution Plan
(SCO model)
FMDP/Exchanges
Setting of
inventory
norms
Management
of refinery
inventory
International practice
BPCL - Target
for Sundays
21
Inventory Management
Basic inputs
Source
Logistics
IT
Refinery
Info.
RHQ
24
Crude oil
availability
Refinery units
Product specifications
Blend mix
Crude oil assays
Optimum
crude mix
and product
slate
Crude and
Product
prices
Constraints
Refinery
capacity
Objective Function =
Maximise NCR
Demand from
Marketing
units
25
THANK YOU
26
Overview
Costs include
logistics cost and
customer incentives
(if any)
Tariff
Marketing Logistics
Protection Margin
Cost
Marketing Netback
Incentives
27
BUY
TEXT
MIN
MAX
COST
BBH
Bombay high
12.7
12.7
35,344
AZL
Azeri Lt
6.0
6.0
35,387
SXP
SLEB
0.0
0.0
34,881
AM3
12.4
12.4
30,550
KU1
Kuwait
4.7
4.7
30,115
BLT
BASRAH
0.0
0.0
30,838
MX3
0.0
0.0
31,974
KUW
Kuwait
0.0
0.0
31,461
ALS
AL SHAHEEN
2.7
2.7
29,899
MOH
METHANOL
0.0
99.0
18,000
GAS
GAS
0.0
0.1
10,434
SKR
RETURN KERO
0.0
99.0
50,965
D2I
Diesel import
0.00
0.00
48,422
SKI
SKO import
0.81
0.81
45,629
KI2
0.52
0.52
46,129
28
PRODUCTS DEMAND
TABLE
SELL
TEXT
MIN
MAX
PRICE
VPRICE
PPF
PP FEEDSTOCK
0.15
0.17
41,098
LPG
LPG
0.00
99.00
37,772
HNE
HAN, EXPORT
0.00
99.00
37,794
LNE
LAN Export
0.00
0.97
37,794
LNF
LAN, FERTILIZER
0.39
0.42
36,979
RIL
HAN -RELIANCE
0.32
0.35
38,790
HNR
0.97
0.97
39,580
M91
Metro Euro-3
1.35
1.61
32,558
M90
MMPL MS Euro-2
1.94
2.26
32,145
LAB
LAB RELIANCE
1.29
1.72
39,662
KZZ
PDS Kerosene
2.03
2.90
SKR
Return Kero
0.00
99.00
35,351
SKO
KEROSENE
0.00
99.00
35,351
MTO
MTO Tier 1
0.13
0.23
43,866
AF1
JET FUEL
0.81
1.13
39,889
AF2
JET FUEL
0.68
1.90
39,423
AF3
JET FUEL
0.19
0.19
36,147
29
PRODUCTS SPECIFICATION
ROW
NAMES
TEXT
XSPG
SPECIFIC GRAVITY,MAX
NSPG
SPECIFIC GRAVITY,MIN
NSUL
SULPHUR WT %
XSUL
SULPHUR WT %
XMTB
MTBE % VOL
*XRVP
LNH
0.8
LNF
0.7
HNE
P95
M91
M90
0.77
0.78
0.78
0.77
0.7
0.72
0.72
0.71
0.5
0.05
0.05
0.0130
0.0130
0.045
RVP INDEX
18
11
10
10
10
10
XRVI
RVP INDEX
37.08
20
17.783
17.78
17.78
17.8
XRSH
XARO
14
12
42
42
NARO
14
XPAR
PARAFIN % VOL
65
NPAR
*NN+A
NROI
8.23
7.81
*NRON
RESEARCH OCTANE
*NMON
40
95.0
92.5
7.46
89.5
85
81
81
*'NROI
RESEARCH OCTANE
7.73
7.31
6.96
*XTEL
0.15
0.15
0.15
*NFSH
UNITS CAPACITY
TABLE
CAPS
TEXT
MIN
MAX
CCRT
CRD truput
0.00
99.00
CAT1
CDU I
10.50
14.00
CAT2
CDU II
5.50
7.00
CAT3
CDU III
9.00
17.50
CCR1
CDU I LS
0.00
99.00
CCR9
CDU I LS
0.00
99.00
CCR6
CDU II LS
0.00
99.00
CCR8
CDU II HS
0.00
99.00
CCRB
CDU II HS Like
0.00
99.00
CCD2
CDU III HS
0.00
99.00
CCD3
0.00
99.00
CFPU
HCU LR to Vac
1.20
3.80
CHVU
CDU LR to Vac
2.60
5.20
CVDU
NCDU LR intake
0.00
9.30
CCCU
Cracker
2.50
3.50
CFCC
FCC
1.20
2.60
CMT1
MTBE UNIT
0.00
0.07
CARU
AROMATICS EXTR.
0.00
0.70
31
Density
1.411
1.411
1.285
1.302
1.288
1.21
1.21
1.21
1.172
18 months
Rs/mt
42037.95
35881.00
37722.86
38150.66
40196.96
41044.54
40491.89
52640.00
46652.00
48312.87
48312.87
42094.32
44552.12
44193.53
40271.91
40480.48
40271.91
36428.10
24048.02
23548.02
22897.14
20964.20
28040.00
31600.00
33790.00
14976.00
average
Rs/kl
29088.97
28697.30
32758.23
34218.21
34311.75
33282.57
33454.94
33282.57
31082.00
32
SCO Models
Model
Type of review
Key support
entity
Refinery Scheduling
Refinery technology/
Refinery Scheduling
Demand planning
Retail logistics
Refinery Scheduling
Business Units
Retail logistics
LPG
Retail - Logistics
SCO
33