Real Time Optimization: Classification and Assessment

Abstract

The Real-Time Optimization Technical Interest Group (RTO TIG) has endeavored to clarify the value of real-time optimization projects. RTO projects involve three critical components: People, Process, and Technology. Understanding these components will help to establish a framework for determining the value of RTO efforts. In this paper, the Technology component is closely examined and categorized. Levels within each Technology category are illustrated using spider diagrams, which help decision-makers understand the current status of operations and the impact of future RTO projects. Uncertain value perception in our industry has been one of the critical issues in adopting RTO systems. Therefore, case histories are reviewed to demonstrate the impact of RTO projects. To assist RTO project promotion, we list lessons learned through case histories, suggest a justification process, and present a simple economic example. Introduction Industry case histories demonstrate many types of benefits from RTO, such as volume increase, ROI increase, decision quality, HSE improvement, and opex reduction. However, they have lacked systematic project evaluation methods or processes for justification. Today, promoting RTO is in essence a competition for capital within producing companies. The project teams that recognize this fact and then clearly outline the purpose, benefits, costs (direct or indirect), and strategic business alignment of their proposals will be in an advantageous position to secure funding. Because RTO is still an emerging discipline, classifying projects of this nature is still dependent on an individual's point of view. This paper is intended to enable classification of RTO in an objective manner and to help provide a common vocabulary to address issues. Three Cornerstones in Adopting New Technology In adopting any new technology, TIG members realize that there are three major factors: People, Process, and Technology, as shown in Fig. 1. New RTO technology can achieve the benefits we seek, but it is not likely without corresponding changes in the way we work with others and in the processes or workflow in which we perform tasks. This challenge is common to the implementation of any new technology, whether RTO or not. Engineers tend to emphasize the technology aspect because we are most familiar with it, but the other aspects are equally important. For example, the lack of workflow modification, which requires training and possible organizational changes, is tends to result in unsustainable efforts and ultimately underperformance of the investment in RTO. People People issues manifest themselves in several ways1: corporate culture, organizational structure, and training. Corporate culture is the set of tacit understandings and beliefs that form the foundation of how an organization works. It is a mental model that people have about the nature of an organization and how it sees itself. Within an organization, culture is "how things are done around here." The culture of an organization can be appropriate and supportive to an organization's goals and strategies, or it can hinder its initiatives and projects. Usually any major change in an organization, such as deployment of new technology, radical strategic shifts, or new initiatives, is countercultural. That is, the change breaks existing cultural rules and assumptions, and the change is automatically resisted and thereby impeded.

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