The development of Manufacturing Execution System for large-scaled LNG project
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1 The development of Manufacturing Execution System for large-scaled LNG project Mark van Otterlo Vice-President, Operations Yokogawa Europe B.V. January August
2 Agenda 1. The Yamal LNG Project 2. Objectives Business Agility Bridging Operations & Business IT/OT Integration 3. Our Approach Preparation & Requisition Delivery Phases 4. Summary 2 August 2016
3 The Yamal LNG Project 3 August 2016
4 Yamal LNG Project Yamal LNG Project is an integrated Natural Gas liquefaction complex based on South Tambey Gas field located in Yamal peninsula. Overall investment value is 27 BUSD 4 August 2016
5 Yamal LNG Project There will be 200 gas wells in 19 wellpads, gas collectors, gas inlet facilities, 3 x LNG trains NOVATEK 60%, TOTAL 20%, CNPC 20% Basic design was done by CB&I (London) in August 2016
6 Objectives 6 August 2016
7 Business agility Agile business is one that has the capacity to maximize the value of every opportunity Fast adaption to new market conditions means seamless integration between business and production Agile business is about increasing responsiveness and maintaining flexibility through relentless focus on improvements to the entire supply chain Agile business means also integration of business readiness and operational readiness 7 August 2016
8 What bridges operational & business readiness? Operational Readiness Business Readiness 8 August 2016
9 One eco system with many stakeholders Shareholders Business domain Customers Society Competition Production domain Government Suppliers 9 August 2016
10 Obstacles to Integration Operating as distinct silos Separate management structure and hierarchy for accountability purposes Sub-optimal approach Keep executives, managers, and staffs separate Information is not easily shared No optimal collaboration and communication across horizontal and vertical lines No business and budget owner 10 August 2016
11 Obstacles to Integration - Our observation - Share holders Senior Management Trade Planning HSE Finance HR Business (IT domain) Operation Maintenance Training Logistics Engineering Contractor / Vendor Operations (OT domain) 11 August 2016
12 IT/OT Integration - The different domains Level 4 Enterprise Resource Planning system (Office domain) IT Level 3 Level 3.5 Demilitarized Zone (DMZ) Systems to integrate level 2 and 4 (MES) Integration OT Level 2 Supervisory, control and safety systems (PCD) OT Level 1 Sensing and manipulating equipment (e.g. instrumentation and valves) PCD = Process Control Domain MES = Manufacturing Execution System The objectives of ISA-95 are to provide consistent terminology that is a foundation for supplier and manufacturer communications, provide consistent information models, and to provide consistent operations models which is a foundation for clarifying application functionality and how information is to be used. 12 August 2016
13 Our Approach 13 August 2016
14 Key Pillars for Operational & Business integration Business Performance Supply Chain Management Operations Management Asset Management Production Management Minimize disruption to supply chain and ensure committed delivery. Ensure safe operation and regulatory compliance - License to operate. Maximize asset deployment and avoid unplanned downtime by ensuring equipment is healthy and operating in the optimum mode. Clear alignment of business and production objectives. Minimize operating cost and improve yield. Operational Performance 14 August 2016
15 Production improvement life cycle Supply Chain Management Operations Management Production Management Asset Management 15 August 2016
16 Typical LNG Solution Diagram 16 August 2016
17 Integration matrix Enterprise Recourse Planning Documentation Management System Engineering Data Warehouse Data Historian System for L4 Data Historian System for L3 Hydrocarbon Accounting System for Trade Hydrocarbon Accounting Shipping for Marketing LNG Supply Chain Scheduling System Production Accounting System Laboratory information Management System Production Portal System Competence Management System Operator shift handover System Operation work instructions System Operation Incident Management System Operation Management of Change System HSE Incident / Compliance Management System Permit To Work System Computerized Maintenance Management System Integrity Management System Performance Dashboard Energy Management System Alarm Management System Advanced Process Control Modular Procedural Automation Integrated Control and Safety System (ICSS) INTEGRATION MATRIX 1 Enterprise Recourse Planning 2 Documentation Management System 3 Engineering Data Warehouse 4 Data Historian System for L4 5 Data Historian System for L3 6 Hydrocarbon Accounting System for Trade 7 Hydrocarbon Accounting Shipping for Marketing 8 LNG Supply Chain Scheduling System 9 Production Accounting System 10 Laboratory information Management System 11 Production Portal System 12 Competence Management System 13 Operator shift handover System 14 Operation work instructions System 15 Operation Incident Management System 16 Operation Management of Change System 17 HSE Incident / Compliance Management System 18 Permit To Work System 19 Computerized Maintenance Management System 20 Integrity Management System 21 Performance Dashboard 22 Energy Management System 23 Alarm Management System 24 Advanced Process Control 25 Modular Procedural Automation 26 Integrated Control and Safety System (ICSS) 17 August 2016
18 Integration levels Value added lies in integrating the various applications into one environment Application A Application B Application C Business Information Application Technology People Security Framework 18 August 2016
19 Yokogawa s approach to Middleware Presentation Layer Business Process Middleware Service Bus Application Application Application Application CONNECTING DISTRIBUTED APPLICATIONS TO THE BUSINESS & PRESENTATION LAYER 19 August 2016
20 From Unstructured to IPMS Physical firewall Physical firewall L3 Switch L3 Switch Hyper Converged Hyper Converged Many boxes many brands Multiple policies for infrastructure and security Many point to point interfaces Excel is our best friend Significant human intervention No single truth Brands and boxes managed One policy for infrastructure and security Few interfaces preferable via middleware Excel is not an solution Almost no human intervention One single truth THE BENEFITS OF AN INTEGRATED PRODUCTION MANAGEMENT SYSTEM 20 August 2016
21 Preparation and Delivery phases User Awarenes s Master Plan Requirem ents Specificat ions Purchase Process Design Services Prove of Concept Implemen tation and Integratio n Training Life Cycle Service Optimizat ion ±2 months ±4 months ±18 months TYPICAL TIMEFRAME FOR LARGE SCALE LNG ASSET 21 August 2016
22 Action Planning IPMS is critical for the operational and business readiness of the plant Assign a business owner for the IPMS Write a IPMS master plan at an early stage of the project IPMS budget is often forgotten with consequences IPMS is the responsibility of the operator and not the EPC EPC has to be aware of the IPMS for alignment Delivery time IPMS is often under estimated (12 18 months) Delivery of the IPMS after operational start-up is costly and happens rarely IPMS: Integrated Production Management System 22 August 2016
23 Summary 23 August 2016
24 Summary Integrated Production Management System (IPMS) Agile business is about increasing responsiveness and maintaining flexibility through relentless focus on improvements throughout the entire supply chain It requires early consideration and planning between the business domain and the production domain and with the fully Integrated Production Management System it provides integrated visibility on Operational & Business Performance of the asset 24 August 2016
25 Thank you 25 August 2016
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