This paper will cover the recent implementation of a new end-to-end Production & Energy Loss Accounting (PELA) system at three separate sites of a major refining and petrochemicals company in the Middle East. It describes the development of practical tools, governance structure, training of relevant staff, embedding and evolving of the associated Management Operating System (MOS) and some of the early benefits achieved.
The new system includes customized software tools providing shift operators in each process with real-time information about production and energy losses in the main value drivers: asset utilization, product quality, reprocessing, equipment efficiencies, flaring, etc. The tools allow immediate assignment of standardized "cause categories" for later aggregation and analysis. A separate data compilation and visualization tool was also developed, along with work processes to support deviation analysis and decision making. More than a hundred technical staff across the three sites received training and a weekly meeting cadence was established for maximum leverage from this initiative.
This PELA system successfully covers 21 separate process areas. It led to confirmed savings of 7.9 MMUS$ in the first year alone, by wiring the organization for continuous improvement and providing greater transparency for staff and management alike.
PELA serves as a vehicle for change by driving awareness of the front-line staff and ensuring better cooperation between them, process engineers, maintenance, and production planning. The success of such a program relies on lean skills, analytical capabilities, expertise in change management, and strong leadership within the line.
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