Focus Area: Process Improvement 

Statement of intent stating the reason for nominating the entry for LASSIB Society Excellence Awards:

The Business Excellence journey of Mumbai Refinery articulated through refinery vision calls for concerted effort by employees at all levels by adding value and rationalizing processes in their day to day activities.  To achieve this, one of the processes started at refinery has been to undertake process improvements through Six Sigma philosophy, implementation of which started in the year 2008.  Today, Mumbai Refinery has a unique distinction of having more than 320 certified Six Sigma practitioners who undertook 120 process improvement projects so far.

The objective of implementation of Six Sigma philosophy has been to achieve:

  • Continue value addition to Mumbai Refinery’s human resources so as to support the business objective.
  • Maximize productivity and improve work discipline and reduce waste.
  • Improve standards of work and overall capability of employees.

Mr. Buddhaded Kundu, Mr. Piyush Patil and Mr. Sachin C Dolse Receiving LASSIB Society 2013 Honorary Award for Category of Process Improvement

Six Sigma projects undertaken focus on:

  • Productivity improvement
  • Energy conservation
  • OHS performance improvement
  • Customer satisfaction enhancement

This elite Six Sigma Group is motivated by a number of means like:

  • Case study presentations by the teams
  • Nominating them to participate in experience sharing with other industries
  • Nominating them to participate in competition leading to excellence awards.

The process improvement project undertaken by the team on recovery of LPG from fuel gas has yielded huge saving for the organization to the tune Rs. 7.58 Crores per annum without having any additional investment and any major modifications in the unit. Therefore, the said project is nominated for this excellence award.

NOMINATION DETAILS

I)          ABOUT THE ORGANIZATION

 An erstwhile Burmah Shell Company, Bharat Petroleum came into the national mainstream in January 1976 following a takeover of Refining and Marketing operations by Government of India. Today, Bharat Petroleum Corporation Ltd, is one of India’s leading oil refining and marketing company

Mumbai Refinery of BPCL, spreading over a total area of approx. 454 acres, was commissioned in 1955 by Burmah-Shell Refineries Limited, with a design capacity to process 2.2 Million Metric Tonnes per Annum (MMTPA) of crude oil.  After nationalization in 1976, Mumbai Refinery has progressively grown through low cost revamps and adoption of new technologies. Currently, the refinery has an installed capacity of 12.0 MMTPA, processing a variety of Imported and Indigenous crudes.

Mumbai Refinery is strategically located at Mumbai, the business capital of India.  It is a well head refinery connected through pipeline to ONGC for supply of Mumbai High crude. It has also direct connectivity through pipeline to Marine Oil Terminal (MOT) facilitating import of crude, import/export of products and coastal movement through tankers. A dedicated 1379 km long pipeline, viz. Mumbai-Manmad-Manglia-Bijwasan pipeline, is used for movement of more than 50% petroleum products (Motor Spirit, High Speed Diesel, Superior Kerosene) from refinery to upcountry locations, thereby reducing road and rail movement. Aviation Turbine Fuel (ATF) is supplied through dedicated pipelines to Santacruz and Sahar Airports. Refinery also has pipeline connectivity to industry marketing installations at Sewree / Wadala and major direct customers.

From the time of nationalization to date, Mumbai Refinery has made rapid progress in its business activities and has emerged as a admired organization in the petroleum sector.  Through all its growth and its development it was ably supported by its dedicated workforce.

 II) RESULT INDICATORS

 Description of the Process

Mumbai Refinery of Bharat Petroleum Corporation Limited (BPCL) produces a wide range of petroleum products viz., Fuel gas (like Natural gas), LPG, Petrol, Food Grade Hexane, Benzene & Toluene, kerosene, Diesel, Base Oil for Lubes, Furnace Oil & Bitumen. Among these, LPG is one of the most valuable products of the refinery.  Fuel gas produced by the refinery has much lower cost compared to LPG and hence is burnt in the refinery furnaces as fuel. In refinery, LPG is produced mainly by Catalytic Cracker Units (CCU & FCCU).

Since LPG is a valuable product as mentioned above, this process improvement project is aimed at improving the LPG yield. It was observed that both in Catalytic Cracker units, there was huge amount of LPG loss due to high amount of LPG carryover with Fuel Gas. Therefore, it was decided to look at the possibility of recovering LPG from fuel gas as much as possible so as to increase refinery profitability. The project was taken as a Six Sigma Black Belt project.

Description of the Problem

There was very high amount of LPG carryover with Fuel Gas in Catalytic Cracking Unit (24.8 %wt, 12.13 % Vol) as per data from 5th September 2008 till 22nd October 2012 and Fluid Catalytic Cracking Unit (33.17 % wt, 21.58 % Vol) as per data from 20th January 2010 till 7th September 2012 resulting in loss of LPG production. The Team was required to study the causes and reduce the carryover of LPG with Fuel Gas and to suggest the remedies to increase refinery profit.

Benchmarking

HSB Solomon Associates LLC (Solomon) provides support in benchmarking, data analysis and performance improvement consulting services for capital-intensive energy assets in key industries like refinery, chemicals, pipelines, terminals, power generations etc. They provide most creative and effective strategies to maximize client performance. They also help client to achieve greater effectiveness, enhance reliability and improve margins by realizing the full technical and financial potential of their existing assets and new capital projects.

BPCL shared refinery data with Solomon for our benchmarking with respect to other refineries in the world and further scope for improvement.

As per Solomon Study (based on operating data of 2010), BPCL MR has LPG carryover with fuel gas ~27% vol (in terms of %wt, it is 1.5 to 2 times of %vol)

Based on feedback from Solomon, it was targeted to decrease LPG carryover with fuel gas to less than 10% wt.The benchmark figure is of 13 % wt.

 Comparison with Benchmark 

Improvement in Catalytic Cracking Unit (CCU)

 The above graphs indicate that there is a decrease in LPG carryover at CCU from 25.6% by weight to 10.75% by weight vis-à-vis benchmark value of 13% by weight 

Improvement in Fluid Catalytic Cracking Unit (FCCU)

The above graphs indicate that there is a decrease in LPG carryover at FCCU from 37.2% by weight to 17% by weight vis-à-vis benchmark value of 13% by weight.

There is also a decrease in variation of LPG carryover at FCCU from 10.722% by weight to 0.816% by weight.

 ENABLER INDICATORS

 1.      Leadership Commitment and Involvement

Business Excellence has strong focus in Mumbai Refinery and is driven under the leadership of the Head of the Refinery. The refinery head is the Steering Committee Chairman for Six Sigma Initiative. The refinery Head, along with the Head of Departments, reviews the projects for its successful completion. Considering the huge success of Six Sigma which was implemented as a pilot Business Excellence initiative in 2008, this process improvements philosophy is getting institutionalized in refinery by taking this initiative as a part of the business plan. The effort receives renewed focus with inclusion of the same as a part of the MOU target signed with the Ministry of Petroleum and Natural Gas. 25 Six Sigma projects are taken as target every year.

Right from selection of projects to ensuring sustenance of the improvements, the leadership at BPCL MR plays vital role in driving Business Excellence through Six Sigma projects.

Many of the Six Sigma projects are identified based on the Opportunities For Improvement (OFI) emanating out of various benchmark studies undertaken by renowned agencies, both at national and international level. This nominated project was one of the OFIs of Solomon Benchmarking study. The leadership whole heartedly supported and encouraged the Six Sigma team.

2.      Strategy Creation and Deployment

Business Excellence initiatives are a strategic objective for Mumbai Refinery. In this regard, refinery has adopted a multiple approach by undertaking a combination of business excellence initiatives like adoption of Management Systems, Benchmarking, Business Excellence Model assessments (CII, RBNQA, FICCI), Quality Circles, 5S, Six Sigma. The focus is on process approach, customer focus, employee involvement, loss reduction, improved GRM (Gross Refinery Margin), enhanced OHS performance.

The approach is systematically deployed through institutionalizing the above initiatives which gets closely monitored and guided by the leadership of the refinery.

3.      Human Resource Management

One of the visions of Mumbai Refinery is to make refinery “Greatest place to work” by providing continuous learning opportunities thereby improving performance in a participatory environment.

The business excellence initiatives help refinery in achieving this vision. Six Sigma projects provide ample opportunities for technicians and shop floor employees since majority of the projects undertaken require their involvement and support.

For this project, technicians working in three shifts rotations in both FCCU and CCU units were involved in discussions, brain storming sessions and arriving at root causes to find out the critical parameters affecting the pain area. Eventually during implementation same workforce contributed as a part of Process governance which ensured the proper KPIs (Key Performance Indicators) are being measured and reported to sustain improvement. The success has been a big motivation to the work force and there is eagerness to bring in further improvements.

4.      Process Management

The following changes were carried out in the process after discussion with the plant managers. The recommended and actual changes as well as incremental savings are tabulated as below.

CCU

PARAMETERS DESIGN RECOMMENDED PRE RESULTS POST RESULTS
Absorber P (kg per sq cm g) 14.5 15.2 14.7 15.1
Lean oil flow (MT/D) 500 500 375.0 470
Lean Oil temp (deg C) 40 <40 42.1 45.5
Sponge oil flow (MT/D) 216 216 144.0 139
Sponge oil temp (deg C) 40 <40 35.5 37
C3+ carry over (% wt) 24.8 10.7

FCCU

PARAMETERS DESIGN RECOMMENDED PRE RESULTS POST RESULTS
Absorber P 12.7 13.2 11.8 12.6
Lean oil flow 167 167 80.5 138.2
Lean Oil temp 38 <38 37.6 37.8
Sponge oil flow 177 177 89.6 147.9
Sponge oil temp 38 <38 36.5 37.3
Amine flow to LPG amine absorber 68 68 31 55.7
Lean Amine temp 38 <38 39.1 38.6
LPG absorber pressure 12.8 12.8 12.1 12.6
Wash water to 30E1A/B 100 150 100 150
C3+ carry over (% wt) 33.17 17
LPG Savings 16.6 MT/ Day
Actual cost benefit as per post results Yearly Rs 7.6 Cr

5.      Technology Management

No Technology change was involved in this project. However, the control of the process parameters was automated by appropriate changes in Advanced Process Control (APC).

APC is a multi-variable control system which helps to control multiple variables at the same time, thus maintaining product quality as well as maximization of production on continuous basis.

6.      Knowledge Management

Literature survey was done thoroughly at the beginning of the project to collect all the related information to reduce LPG loss with Fuel Gas. This matter was discussed with the end users and their section heads for better understanding of the problem.

Dissemination of results to shop floor employees regarding the process changes and the improvement in recovery of LPG reduction of number of nonconformities was done. The details were also communicated to others involved in refinery operations like process, technology, maintenance and commercial departments.

To enable and sustain this, all the process technicians were trained on the change required to bring an improvement in the process with the help of Advanced Process Control (APC).

The complete project presentation, along with all the data, was made available in refinery web portal under Six Sigma club.

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LASSIB Society is not responsible for the contents of these websites or applications and is not liable for any damage or injury resulting from the Candidate’s use thereof.</p> <ol start="11"> <li> <p class="western" lang="en-US" style="margin-bottom: 0cm;"><b>Responsibility of the User and Indemnities</b></p> </li> </ol> <ol> <ol> <li> <p class="western" lang="en-US" style="margin-bottom: 0cm;">The Candidate assumes the entire risk as to the use and result of the Application and the Assessment (including the Contents). This also includes the Candidate’s responsibility for its own internet connection, as well as for the software and equipment necessary to access the Application and take the Assessment. User name, password and further access data that LASSIB Society will provide to the Candidate upon registration (“Access Data”) are personal to the Candidate and must be treated as confidential. All uses executed via the Candidate’s Access Data shall be attributed to the Candidate and are binding for the Candidate.</p> </li> </ol> </ol> <ol> <ol start="2"> <li> <p class="western" lang="en-US" style="margin-bottom: 0cm;">Any complaints by the Candidate with regard to the services provided hereunder by LASSIB Society Examinations shall be directed by e-mail with a comprehensible description of the problem, including screenshots to <span style="color: #0563c1;"><span style="text-decoration: underline;"><a href="mailto:contact@lassibsociety.org">contact@lassibsociety.org</a></span></span>. LASSIB Society undertakes to investigate the Candidate’s complaints (if any) fairly and expeditiously. LASSIB Society reserves the right to refuse any unfounded complaints. Further, LASSIB Society reserves the right to terminate the Candidate’s right to access the Application and take the Assessment pursuant to Clause 4.2 if the Candidate places one or several willfully aggravated complaints.</p> </li> </ol> </ol> <ol> <ol start="3"> <li> <p class="western" lang="en-US" style="margin-bottom: 0cm;">The Candidate agrees to indemnify and hold LASSIB Society, and it’s respective officers, directors, employees and agents harmless from and against any claims, actions, or demands, liabilities, damages, losses and expenses (including attorneys’ fees) arising out of, resulting from, or alleged to result from, the Candidate’s infringement of these Terms of Use or the Candidate’s infringement of any third party rights in connection with the Candidate’s use of the Application or the Assessment.</p> </li> </ol> </ol> <ol start="12"> <li> <p class="western" lang="en-US" style="margin-bottom: 0cm;"><b>Privacy Policy Details</b></p> </li> </ol> <ol> <ol> <li> <p class="western" lang="en-US" style="margin-bottom: 0cm;">When registering and applying for the Assessment, LASSIB asks the Candidate for information such as the Candidate’s name, surname, address, email address, etc. Such information will include information that identifies the Candidate or makes the Candidate identifiable as a person (“Personal Data”).</p> </li> </ol> </ol> <ol> <ol start="2"> <li> <p class="western" lang="en-US" style="margin-bottom: 0cm;">LASSIB Society shall process the Candidate’s Personal Data as per the Privacy Policy.</p> </li> </ol> </ol> <ol> <ol start="3"> <li> <p class="western" lang="en-US" style="margin-bottom: 0cm;" align="JUSTIFY">LASSIB Society may use Candidate scores, data and test responses, in any form, including but not limited to informational, research, statistical or training purposes.</p> </li> </ol> </ol> <ol> <ol start="4"> <li> <p class="western" lang="en-US" style="margin-bottom: 0cm;">LASSIB Society will keep the Candidate informed of relevant developments relating their respective offers. If the Candidate does not wish to receive advertising, he or she may notify LASSIB Society.</p> </li> </ol> </ol> <ol start="13"> <li> <p class="western" lang="en-US" style="margin-bottom: 0cm;"><b>Choice of Law and Jurisdiction</b></p> </li> </ol> <ol> <ol> <li> <p class="western" lang="en-US" style="margin-bottom: 0cm;">These Terms of Use are governed exclusively by the laws of Hyderabad, India 500007.</p> </li> </ol> </ol> <ol> <ol start="2"> <li> <p class="western" lang="en-US" style="margin-bottom: 0cm;">All disputes arising out of or in connection with these Terms of Use, including disputes on conclusion, binding effect, amendment and termination, shall be resolved exclusively by the competent Courts of Hyderabad, India. LASSIB Society shall have the option of taking legal action against the Candidate at the Candidate’s domicile.</p> </li> </ol> </ol> <ol start="14"> <li> <p class="western" lang="en-US" style="margin-bottom: 0cm;"><b>Other provisions</b></p> </li> </ol> <ol> <ol> <li> <p class="western" lang="en-US" style="margin-bottom: 0cm;">LASSIB Society expressly reserves the right to amend these Terms of Use at any time. The Candidate agrees to be bound by the amended version of the Terms of Use.</p> </li> </ol> </ol> <ol> <ol start="2"> <li> <p class="western" lang="en-US" style="margin-bottom: 0cm;">No variation to these Terms of Use (including this Clause) shall be effective unless in writing.</p> </li> </ol> </ol> <ol> <ol start="3"> <li> <p class="western" lang="en-US" style="margin-bottom: 0cm;">Failure or delay of LASSIB Society in exercising any right, power or option hereunder shall not constitute a waiver of the terms and conditions of these Terms of Use.</p> </li> </ol> </ol> <ol> <ol start="4"> <li> <p class="western" lang="en-US" style="margin-bottom: 0cm;">The invalidity or unenforceability of any particular provision of these Terms of Use shall not affect the other provisions hereof, and these Terms of Use shall be construed in all respects as if such invalid or unenforceable provisions has been omitted.</p> </li> </ol> </ol> <div class="sharedaddy sd-sharing-enabled"><div class="robots-nocontent sd-block sd-social sd-social-icon-text sd-sharing"><h3 class="sd-title">Share this:</h3><div class="sd-content"><ul><li class="share-facebook"><a rel="nofollow" data-shared="sharing-facebook-3920" class="share-facebook sd-button share-icon" href="http://lassibsociety.org/awards/excellence-awards/bharat-petroleum-corporation-ltd-case-study-process-improvement/?share=facebook" target="_blank" title="Click to share on Facebook"><span>Facebook</span></a></li><li class="share-linkedin"><a rel="nofollow" data-shared="sharing-linkedin-3920" class="share-linkedin sd-button share-icon" href="http://lassibsociety.org/awards/excellence-awards/bharat-petroleum-corporation-ltd-case-study-process-improvement/?share=linkedin" target="_blank" title="Click to share on LinkedIn"><span>LinkedIn</span></a></li><li class="share-twitter"><a rel="nofollow" data-shared="sharing-twitter-3920" class="share-twitter sd-button share-icon" href="http://lassibsociety.org/awards/excellence-awards/bharat-petroleum-corporation-ltd-case-study-process-improvement/?share=twitter" target="_blank" title="Click to share on Twitter"><span>Twitter</span></a></li><li class="share-google-plus-1"><a rel="nofollow" data-shared="sharing-google-3920" class="share-google-plus-1 sd-button share-icon" href="http://lassibsociety.org/awards/excellence-awards/bharat-petroleum-corporation-ltd-case-study-process-improvement/?share=google-plus-1" target="_blank" title="Click to share on Google+"><span>Google</span></a></li><li class="share-tumblr"><a rel="nofollow" data-shared="" class="share-tumblr sd-button share-icon" href="http://lassibsociety.org/awards/excellence-awards/bharat-petroleum-corporation-ltd-case-study-process-improvement/?share=tumblr" target="_blank" title="Click to share on Tumblr"><span>Tumblr</span></a></li><li class="share-email"><a rel="nofollow" data-shared="" class="share-email sd-button share-icon" href="http://lassibsociety.org/awards/excellence-awards/bharat-petroleum-corporation-ltd-case-study-process-improvement/?share=email" target="_blank" title="Click to email this to a friend"><span>Email</span></a></li><li class="share-pinterest"><a rel="nofollow" data-shared="sharing-pinterest-3920" class="share-pinterest sd-button share-icon" href="http://lassibsociety.org/awards/excellence-awards/bharat-petroleum-corporation-ltd-case-study-process-improvement/?share=pinterest" target="_blank" title="Click to share on Pinterest"><span>Pinterest</span></a></li><li class="share-end"></li></ul></div></div></div>

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