N. AHMED M/S OIL INDIA LTD.

Transcription

1 N. AHMED M/S OIL INDIA LTD.

2 Oil India Limited, a Navaratna National Oil Company, is engaged in the business of Exploration, Production and Transportation of Crude Oil and Natural Gas. OIL today produces around 3.5 MTPA of Crude Oil, 2195 MMSCM of Natural Gas and over 45,000 Tonnes of LPG per annum.

3 A Gas Compressor Station of OIL run on Natural Gas

4 Ariel Cooler Engine Compressor A Compressor Package

5 Make of Gas Compressors used - Indigenous Ingersoll Rand India Bharat Pumps and Compressors Ltd. Dresser Rand Make of Gas Compressors used Foreign source Worthington Atlas Copco Ingersoll Rand Canada Prime movers used Waukesha Gas Engine Caterpilar Gas Engine Electrical Motor

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7 Philosophy of Gas Compressor Deployment in OIL : Flare 2.2 Kg/cm 2 NA Gas Wells Internal Use LPMS HPMS 15 Kg/cm 2 LPB Compressor 15 Kg/cm 2 LPG Plant Gas Lift Compressor Oil & Gas to OCS GI Compressor NA Gas Wells GL Well GI Well IOC (AOD) Internal Use Tea Gardens AGC HFCL ASEB APL Tea Gardens Internal Use Tea Gardens Flare Gas Storage Cum Flow-back Well Gas Storage Compressor NEEPCO Power Plant

8 Functions of Compressor Maintenance Section in OIL To reduce flaring of Low Pressure Gas Assist in Producing Crude Oil by Artificial Gas lifting method through Gas Lift Compressors Meet market & internal requirement etc.

9 Cost of any Machine over Life includes - Basic Cost of the Machine Erection/Commissioning Cost Cost of Maintaining it over its life - cost of Lubricating it - cost of Spare Parts replacement Power/Fuel consumption over its life

10 The Total Cost Approach in Maintenance 1

11 Spare parts refer to the parts requirement to keep the machine in operating conditions by meeting the repair and replacement needs imposed by (i) Preventive maintenance (ii) Predictive maintenance (iii) Breakdown maintenance

12 Objective of Spare Parts Management : To maintain uninterrupted operation of machines. To minimize the investment and materials inventory. To avoid duplication of purchases, wastes and related activities. To minimize the risk of obsolescence of materials. To avoid delays in procuring the materials. To procure the materials at lowest price, complying with quality and service requirements. To develop alternate sources of supply.

13 Principles of Spare Parts Management : RIGHT QUALITY : As per the product standards / specifications. Ex. API 6D valve RIGHT PRICE : Important economic consideration RIGHT TIME : To meet the delivery schedule. RIGHT QUANTITY : Determination of optimum quantity. Freight charges, Labour charges are also considered. Ex. Part truck load Freight charges are more. In case of import FCL is desirable.

14 RIGHT PLACE : Place of delivery is important. Terms should be clearly specified in the agreement. Ex. F.O.B (free on Board) / F.O.R. (free on Road/Rail) / C.I.F. (cost, insurance & freight) RIGHT SOURCE : Selection of suppliers is also one of the important principles Authenticity of supplier (Credentials) Financial soundness, experience, technical ability, corporate/ Brand Image. Testing facilities at their premises (in case of technical/ Industrial goods) Patent standard products (No Fake products)

15 Machine Maintenance and Spare Parts Management : Spares are categorized based on their use Stock Category Non Stock Category Categorization is mainly done to minimize Carrying Cost of Inventory.

16 Some of the parts of Reciprocating Gas Compressor comp

17 All Stock Materials are Grouped as Regular Items Reorder on Request : Items having no regular consumption but required for planned activities. Insurance Items : Items rarely required but vital for operation of equipments Review Items (RV) : which are projected for the year (overhauling kits etc.) Slow Moving : not moved in a regular basis between 1 to 3 years Non Moving : not moved for more than 04 years

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19 How Do We Manage Spare Parts? Identification of Spares Eg. : For Stock Category Spares: Group code 2245 IR Gas Compressor 2279 Worthington Gas Compressor 2239 BPCL Gas Compressor Main bearing of IR Gas Compressor For Non Stock Category Spares: Periodic review of quantities for Reorder

20 Factors like Lead time, vendors past performance in executing orders, parts required for planned / overhaul maintenance, review of yearly consumption for last 03 years, machine vintage are considered. Inventory Analysis Classifications based on other characteristics like Insurance spares, Overhauling Kits Reconditioning Indigenization

21 What is Reconditioning? Spare parts which are expensive and repairable, the useful life for such worn out spares are extended by appropriate applications of repair techniques. The following reconditioning jobs were carried out (i) Compressor and Engine Crankshaft (ii) Piston rods (iii) Engine Cylinder heads and exhaust manifolds (iv)compressor valves etc.

22 Cost Benefit Analysis Cost of IR Gas Compressor Crankshaft : Rs 15 Lakhs Salvaging of Compressor crankshafts by Industrial hard chrome plating : Rs 70,000/- Cost of IR Gas Compressor Crankshaft after considering per year for 07 years : Rs 10 Lakhs Cost of crankshaft to be reconditioned : Rs 5 Lakhs i.e Salvaging cost is 12% of Crankshaft cost When this revenue will be generated?

23 Periodic review of quantities for Reorder : Average Stock Q/2 No. of units on hand Q R Buffer level L L Time L R = Reorder point L = Lead time Reorder point = Average monthly demand X Lead Time

24 Inventory analysis : Based on movement FSN analysis F Fast moving (Regular type) S Slow moving items are not moved regularly in 1 to 3 years N Non moving items not moved for more than 04 years Based on cost ABC analysis Based on Criticality VED analysis V Vital E Essential D Desirable

25 Stock and Non Stock Spares Spares Nos Stock Non Stock EL NEL EL Eligible for nil custom duty/ excise duty NEL Not Eligible

26 ABC Analysis : Stock - Eligible Stock - EL Nos A Segment B Segment C Segment Segment Material Material, % Stock value % A % 70.36% B % 19.78% C % 9.86%

27 ABC Analysis : Stock Non Eligible Stock - NEL Nos A Segment B Segment C Segment Segment Material Material, % Stock value % A % 73.45% B % 16.74% C % 9.81%

28 ABC Analysis : Non Stock Eligible Non Stock- EL Nos A Segment B Segment C Segment Segment Material Material, % Stock value % A % 70.14% B % 20.08% C % 9.78%

29 ABC Analysis : Non Stock Non Eligible Non Stock - NEL Nos A Segment B Segment C Segment Segment Material Material,% Stock value % A % 71.48% B % 18.77% C % 9.75%

30 How does ABC analysis help? ABC Analysis provides a good guidelines for amount of attention, which is required from different adopting appropriate purchasing policy for different categories of items and also for the levels of Management, to be given to various items. Identifying through ABC helps in allocating priorities and controls in Inventory Management and Procurement.

31 Some of the Problems faced in managing spare parts : There is always an uncertainty as to when a spare part is required and also its quantity. Introduction of new models to incorporate design change and phasing out of old models by OEM. Eg. Discontinuation of L3711G and L5108G Waukesha Engines from manufacturing range. Stock accumulation takes place due to drawl of more numbers than that actually requires. Consumption rate for some spares are very high and some are very low.

32 Procurement related problems Long Lead Time : As most of the machines are imported its spares are procured from outside the country and OEM which takes long time. Too many supplier : Different part number by superseded parts or different suppliers. Quality of spares : Inspection is done at our site and hence if not purchased from proven source it is very difficult to assess the quality. Indigenous development : Not possible for all the vital spares because of very high precision and technical standards.

33 Material Management with ERP SAP material master is compared as Stock Description Unit of Measure Material Group Classification Purchasing Group Price Stock Availability Storage Location Current Inventory Bill of Material Purchasing History Consumption pattern for last 04 years Non Stock Description Unit of Measure Material Group Classification Purchasing Group Price Stock Availability Storage Location Current Inventory Bill of Material Purchasing History

34 A comparison between Legacy System and SAP in Inventory Management at Compressor Maint. Section (OIL) : Scenario In Legacy Post ERP Benefits derived Direct Charge Materials Not codified Codified Eg Easy Identification

35 Scenario In Legacy Post ERP Benefits derived Inventory Management There is no visibility of stocks in the Departmental Godown by others. Material was charged to consumption immediately drawl from Central Godown. Consumption pattern was done manually. Tracking was tedious/ not correct. Cost of Stock materials were obtained from Central warehouse. Stock position visible across the organization. Material transferred from Central Godown to Departmental Storage locations. Consumption pattern for last 04 years displayed. Unit cost as well as Purchase Order Cost is available. Easy Spare Parts Management

36 Scenario In Legacy Post ERP Benefits derived Plant Maintenance Cost of maintenance is captured in the job no. Equipment details are manually maintained. Maintenance reports are prepared manually. Total Maintenance cost is not available. Each Machine is uniquely identified as a Equipment in a structured manner in a centralized database. Cost of maintenance is captured against the equipment. System driven standard maintenance reports. Total Maintenance cost including spares consumption against an equipment at any point of time available. Maintenance history of any Equipment at any point of time is available. Cost can be analyzed and tracked up to the equipment. Easy retrieval of equipment information Quick and accurate reports.

37 For a successful spare parts management system, proper balancing between machine maintenance as well as inventory management is very much required.

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