Integration of FuelsManager
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- Trevor Floyd
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1 White Paper April 28, 2009 Integration of FuelsManager with SAP Leveraging SAP's structured processes down to the locallevel fuel facility using FuelsManager Automation solutions for oil & gas, defense and aviation applications
2 Executive Summary Contents Executive Summary...4 Terminal Automation System Interface... 4 Limitations of IS TAS... 5 Lessons Learned with CITGO Petroleum... 5 Lessons Learned with Marathon Petroleum... 5 Ongoing Interface Development for xmii... 6 Alliance with Implico and Integration with OpenTAS... 6 Benefits of the Complete, Integrated Solution... 6 The Value of Integrating SAP with FuelsManager...8 An Example Scenario in SAP... 8 Real world Scenario... 8 Demand Planning... 9 Inventory Management and Purchase Requests... 9 Ordering and Receipt...10 Quality and Acceptance...10 Accounts Payable...11 Challenges to Integration Tank Gauging System...12 Movement System...12 SCADA System...12 Terminal Automation System...13 Environmental Compliance System...13 Integration and Ownership Costs...14 Why Local Automation is Necessary Safety Considerations...14 High Availability Considerations...15 User Interface Considerations...16 A Complete, Integration Solution Based on FuelsManager Local Operation Intuitive User Interface Quality of Data Automation of Low Volume Facilities Understanding the System Architecture Subsystems High Volume Facilities...23 Low Volume Facilities...24 FuelsManager Enterprise...25 SAP...25 Interfaces FuelsManager Web Service Interface...25 FuelsManager Enterprise Web Interface...25 FuelsManager to SAP Interface Interface White Paper
3 Executive Summary Capabilities of the Integrated Platform Demand Planning Purchase Requisitions Supply Ordering Bulk Receipts Sales Orders Flight Line Automation Inventory Management Environmental Quality Control Equipment Maintenance Training Logistics Tactical Operations Conclusion Credits About Varec Copyright Varec, Inc. 3
4 Executive Summary Executive Summary SAP is the worldwide standard for oil and gas enterprise solutions with 97% of all leading companies using SAP. SAP provides a complete and integrated enterprise solution, but there are many important business processes that occur at the facility level. For this reason, the full power of SAP is only realized when facility level automation systems are fully integrated into the enterprise. Varec is a leader in oil and gas, defense and aviation and its FuelsManager software provides complete and integrated solutions for facility level automation. As Varec expanded its product offering, discussions with customers increasingly began to focus on integration to SAP. Terminal Automation System Interface Varec began working with SAP in 2002 to develop a certified interface from FuelsManager to SAP s Oil & Gas Industry Solution. The first step in the integration process was to perform an interface assessment, which identifies business processes in FuelsManager and maps these to the appropriate interfaces in SAP. At the conclusion of the interface assessment, the Terminal Automation System Interface (IS TAS) was selected as the priority interface with the Inspection Data Interface in Quality Management (QM IDI) as a potential additional point of integration. The IS TAS interface is designed to integrate with automation systems at commercial oil and gas terminals. It supports many of the common functions for efficient bulk fuel handling and inventory management, such as downloading master data, orders and shipment schedules to the facility automation system and uploading fuel movement, loading (Bill of Ladings) and physical inventory data. Varec worked directly with SAP s Oil & Gas team to develop and certify the IS TAS interface in This interface was later expanded and recertified in The certified interface connects through Hypertext Transfer Protocol (HTTP/HTTPS) for 4 White Paper
5 Executive Summary Internet and intranet communications and is compatible with the latest versions of SAP, including the NetWeaver technology and the Business Connector. Limitations of IS TAS As Varec began working directly with its customer base to integrate FuelsManager with SAP, it found that many of them were not open to using IS TAS as the interface mechanism. The IS TAS interface links into components of SAP that many customers do not use. Extending IS TAS to work with the existing configuration was often viewed as too pervasive and, therefore, too risky and expensive. Customers also desired flexibility to exchange master and process data that is not supported in IS TAS. In addition, IS TAS was designed specifically for commercial terminals and was not well suited for aviation and defense applications. Lessons Learned with CITGO Petroleum When Varec began planning the interface to CITGO Petroleum s SAP system, the design team chose a custom interface design. Although CITGO was one of the earliest users of SAP, it did not use IS TAS. CITGO s SAP team analyzed IS TAS and concluded that the integration effort could not be justified. CITGO had an existing interface structure in place that met its specific business requirements. Therefore, CITGO and Varec decided to minimize the impact to the SAP configuration by developing a new interface from FuelsManager that re used the existing SAP infrastructure. This approach significantly reduced development time and costs and successfully met all of CITGO s specific business requirements. Lessons Learned with Marathon Petroleum Varec worked with Marathon Petroleum and its customer, Ashland Chemical, to develop an interface from Marathon s FuelsManager system to Ashland Chemical s SAP system. The requirement for this interface was similar to the functions supported by IS TAS, but Ashland Chemical was running the SAP Chemical Industry Solution, not the SAP Oil & Gas Industry Solution. Because IS TAS is based on standard SAP Intermediate Documents (IDOCS), the message formats were similar. In addition, Varec had used web technologies to develop the certified IS TAS interface, so much of the software for the certified interface could be reused for the interface to Ashland Chemical s SAP system. Although the Varec, Inc. 5
6 Executive Summary earlier development for IS TAS could not be used, Varec was able to leverage the existing architecture to interface to Ashland Chemical s SAP system. Ongoing Interface Development for xmii Varec recently began designing an interface from FuelsManager to the SAP xapp Manufacturing Integration and Intelligence (xmii). Whereas IS TAS focuses on business processes, the xmii interface is designed for real time, plant floor communications. FuelsManager downloads tank and production information from SAP. SAP then sends process data requests and FuelsManager responds in real time by transmitting process data, such as tank inventories, to increase corporate visibility into process controls and facility safety information. SAP xmii supports a variety of data formats, so Varec again chose to design the interface based on XML and HTTP(S) to be consistent with SAP interfaces for other customers. Alliance with Implico and Integration with OpenTAS In 2006, Varec began working with Implico, an SAP development partner, to integrate FuelsManager to SAP using Implico s OpenTAS software. Implico is the developer of the Oil & Gas Secondary Distribution (OGSD) Industry Solution, which is branded and resold by SAP. Many of Implico s installations use OpenTAS as a middleware solution between the terminals and refineries and SAP. OpenTAS supports the exchange of data in many different formats, so Varec used FuelsManager s standard XML formats. One of the advantages of this approach is that much of the workflow business logic can be configured in OpenTAS, whereas with the IS TAS approach, the business logic must be configured within SAP. In addition, OpenTAS already has many interface points with SAP. As such, OpenTAS is an excellent solution when integrating FuelsManager with SAP systems that are already in production. Benefits of the Complete, Integrated Solution SAP is a powerful and highly configurable enterprise business platform that allows customers to adapt the system to their specific requirements. Varec s experience in the market has shown that interface projects must begin with identifying the business objectives for the interface and then mapping these objectives to the specific SAP configuration. Where possible, using SAP interface standards, such as IDOCS and web services, 6 White Paper
7 Executive Summary reduces initial development time and future cost of ownership. When tightly integrated, SAP and FuelsManager provide a complete solution for all business processes in commercial, defense and aviation organizations. SAP is renowned for providing complete business solutions for the enterprise. FuelsManager completes the supply chain solutions by automating all types of facilities, including airports, airfields, marketing terminals, intermediate terminals, marine terminals, refineries and petrochemical plants. When the two systems are fully integrated, FuelsManager extends SAP s benefits to the customer. Master data, planning and order information that is managed in SAP can be automatically downloaded to FuelsManager for use by facility operators. Data that is manually recorded in SAP today can be captured automatically by FuelsManager and uploaded to SAP. The automatic exchange of data can significantly improve the quality of data in both systems and the speed at which the organization performs critical business processes. Varec, Inc. 7
8 The Value of Integrating SAP with FuelsManager The Value of Integrating SAP with FuelsManager SAP enables a common user experience, structured business processes and real time information visibility across the enterprise. Many oil companies have interfaces from their terminal automation systems to SAP in order to upload inventory counts and bill of lading information. However, numerous other business processes are not automated and consist of subsystems that are not integrated with the enterprise. This often results in the swivel chair scenario where facility operations personnel read information from paper forms, spreadsheets and standalone systems and then manually exchange information with SAP. An Example Scenario in SAP Figure 1 shows a typical process flow for the resupply of bulk fuel using SAP. The process begins with demand planning. Demand Planning Request Order Receive Accept Receive Invoice Payment SAP Processes Figure 1 Example Business Process Flow in SAP Demand planning can be performed in SAP to establish budgets. As fuel is needed, procurement personnel combine one or more purchase requests and order fuel from a supplier. The supplier ships fuel to a delivery location via a carrier, such as a pipeline or trucking company. Once the fuel is physically received at the terminal, the facility personnel must perform quality testing on it before accepting it into the system for distribution. Upon confirmation of the delivery, the supplier sends an invoice for the fuel delivered. The accounts payable users will reconcile the invoice against the fuel receipt records and issue payment to the supplier. Real world Scenario All of the activities shown in Figure 1 are processed by SAP, but what is not shown is that there are many other systems and processes involved through the resupply life cycle. Figure 2 shows an example of the processes that occur outside of SAP for a typical resupply of fuel. 8 White Paper
9 The Value of Integrating SAP with FuelsManager Facility Processes Manage Inventory Schedule Receipt Control Pumps and Valves Take Quality Samples Send Request to Procurement Prepare Facility for Receipt Movement Tracking Record Quality Test Results Coordinate With Carrier / Pipeline Co. Record Inventory Adjustments Record Receipt in SAP Approve / Print Bill of Lading Update Inventory in SAP Set Up Tank for Production Demand Planning Request Order Receive Accept Receive Invoice Payment SAP Processes Figure 2 Example Business Process Flow Showing Facility Activities There is a wide variety of system and process options for managing the resupply process. Typical solutions today consist of SAP at the enterprise loosely integrated with automated control systems at the facility level and supplemented by many Microsoft Access databases, spreadsheets and paper forms to fill functional voids. Demand Planning Demand planning can be highly automated using standard features of SAP. Commercial oil companies often use SAP and one or more thirdparty or customized applications to estimate demand. Aviation and defense organizations more often use third party and custom developed applications for demand planning. The outputs of demand planning establish budgets and a framework for bulk fuel distribution for the fiscal year. Inventory Management and Purchase Requests Existing inventory management processes consist of a combination of manual operations and automated systems at the facility level. These processes and applications operate relatively independent and loosely integrate with SAP in order to send inventory and transaction information. Consistency of business processes is managed through standard operating procedures rather than automation. Highly Varec, Inc. 9
10 The Value of Integrating SAP with FuelsManager automated facilities can be very expensive because there is no one solution for all business processes. The cost of ownership for highly automated facilities is also very high because multiple suppliers and server platforms are required. Therefore, many facilities continue to operate using manual processes based on manual forms, spreadsheets and local databases. For example, many terminals record information for each receipt in a Microsoft spreadsheet. Purchase requests are often initiated within SAP. Alternatively, facility personnel send paper or electronic forms to procurement personnel who record the request in SAP. Confirmation of purchase requests also continue to be sent manually by phone or . Ordering and Receipt Once the procurement personnel react to the purchase request and place the order, someone must coordinate the receipt of fuel with the facility and the carrier. Just prior to the physical delivery of fuel, the facility operators must prepare for the delivery. This preparation might include taking the planned delivery tank offline and scheduling personnel to be on hand to control the pumps and valves for delivery into the tank. Automated systems sometimes control the receiving by truck, rail, barge, ship and aircraft, to include verification of security, control of pumps and valves and monitoring of meter values. Receipts by pipeline are automated with a combination of Supervisory Control and Data Acquisition (SCADA) systems and Programmable Logic Controllers (PLCs) that allow users to set up movement tracking schedules, control pumps and valves, and record and store delivery information. Tank inventories are typically measured and recorded before and after the receipt by automatic tank gauging systems. When the receipt is completed, the inventory is adjusted for the received fuel product code in an inventory accounting system, which is often a component of one of the facility automation systems. The receipt information is delivered by the carrier and signed by the facility personnel. This information is often recorded in the facility automation system as well. Quality and Acceptance Standard fuel processes include an acceptance process for all newly received fuel before it is redistributed. Facility personnel withdraw fuel samples from the tank and perform several standard fuel quality tests. In 10 White Paper
11 The Value of Integrating SAP with FuelsManager some cases the fuel samples can be drawn from the delivery vessel before it is received. In many cases, the inventory is not received into the system until it has been accepted. At this time, the inventory update is posted to SAP either manually or through an upload from the automation system. If the fuel passed the quality tests, standard operating procedures allow the tank to be set up as a supply tank for redistribution. For example, the tank can be set up as a market tank and lined up to supply a truck rack or flight line hydrant system. The fuel quality test results are recorded in a number of ways, including spreadsheets, local databases, paper forms and automation systems. Accounts Payable When accounts payable users receive the invoice from the supplier, they reconcile the deliveries and volumes on the invoice with receipt information received from the facilities. Once the invoice is reconciled with the receipt records, a payment is processed in SAP. Challenges to Integration Similar to the resupply process, other processes, such as sales and distribution and inventory accounting, involve a similar level of processing external to SAP. These external processes at the facility level are managed using a diverse set of tools that include multiple automation systems, local databases, spreadsheets, paper forms, s, faxes and phone calls. Whereas SAP has standardized the processes at the corporate level, the lack of structured processes throughout the rest of the supply chain introduces errors and reduces processing time, which impacts the performance of the whole organization. Automation of facility level processes has been costly because automation systems have traditionally supported specific, discrete business processes. It is not uncommon at larger, highly automated storage facilities to see three or more separate systems, each provided by a different supplier, controlling these processes. Figure 3 shows an example of the typical architectural landscape for a highly automated commercial terminal. Varec, Inc. 11
12 The Value of Integrating SAP with FuelsManager Tank Gauging System Movement System SCADA System Terminal Automation System Environ. Compliance System RTUs PLCs Presets Gate Card Readers Rack Card Readers Tank Gauging Pumps & Valves Figure 3 Example Facility Automation Landscape Tank Gauging System The tank gauging system consists of automated tank gauges, electronic interface devices, such as a Remote Terminal Unit (RTU), and systems software to monitor tank level and temperature and perform standard tank volume and mass calculations. Tank gauging systems are critical in order to support best practices for inventory accounting and provide real time inventory visibility. The systems also enhance safety by providing high level and other process alarms. These systems are typically supplied separately from other subsystems and operate on stand alone servers at the facility. Movement System Most facilities track fuel movements, to include receipts, shipments, disbursements and tank to tank transfers. The movement system interacts with the tank gauging system to capture tank volume information at the start and finish of each movement. There are very few cost effective solutions for movement tracking, so many facilities develop a custom Microsoft Access database or use Microsoft Excel. Some large facilities, such as refineries, build the movement tracking capability into a custom software application or as part of a SCADA or Distributed Control System (DCS), which allows the movement tracking to monitor and control pumps and valves involved in the movement. SCADA System Automating pumps, valves and other controls requires a PLC and SCADA software. The SCADA application typically provides graphical screens 12 White Paper
13 The Value of Integrating SAP with FuelsManager that depict the piping details for the facility and allows the facility operators to open and close valves, turn on and off pumps and view the status of other controls and alarms. These applications and hardware devices are typically supplied by generic automation companies, such as Rockwell Software, General Electric, Siemens and Wonderware. These companies do not specialize in oil and gas, and the systems must be developed to meet the specific oil and gas business requirements. The SCADA system is typically integrated with the other systems shown in Figure 3 in order to integrate tank gauging and loading information. These systems are typically supplied separately from other subsystems and operate on stand alone servers at the facility. Terminal Automation System Terminal automation systems consist of specialized software and hardware design to control facility security and loading and unloading racks. These systems often control the entrance and exit gates for truck loading and unloading facilities. The systems also automate the loading and unloading of fuel for trucks, rail and sometimes barges. In some cases barge loading and unloading is controlled by the SCADA system. In order to control the loading and unloading processes, the software application integrates with load computers or presets, which directly control the pumps and valves and monitor the meters. These systems are typically supplied separately from other subsystems and operate on stand alone servers at the facility. Terminal automation systems are similar to automatic data capture systems used at airports and air bases, except that automatic data capture systems use handheld computers to exchange information with fueling personnel and equipment. Both systems are used to transmit loading presets to fueling personnel and capture loading and unloading transactions, to include meter start and finish values. Environmental Compliance System Certain states and regions have specific regulations that require automated monitoring of tanks and pipes to detect potential leaks. Standard tank leak detection algorithms analyze historical tank volume data to identify potential leaks over time. Automated pipeline leak detection systems often use SCADA software integrated with hardware controls that periodically pressurize piping to identify leaks. These Varec, Inc. 13
14 The Value of Integrating SAP with FuelsManager systems are typically supplied separately from other subsystems and operate on stand alone servers at the facility. Integration and Ownership Costs All of the systems described above must be implemented and integrated to fully automate a facility. Project costs increase dramatically when multiple systems from different suppliers must be integrated to automate all critical business processes. A completely integrated system necessitates multiple contracts with multiple suppliers and the systems must be integrated, requiring each of the suppliers to provide its own team of engineering resources. Technical support is more difficult because help desk analysts must always first determine which system is causing the problem and it is often difficult to get multiple suppliers to work together to jointly solve a problem. Furthermore, future upgrades can be risky because upgrading one system often exposes incompatibilities with the other systems. Why Local Automation is Necessary When confronted with the challenges of integration, some organizations have integrated many of the local business processes into SAP. When planning an automation strategy, organizations often ask Varec why these local business processes cannot be automated within SAP. The reasoning is that if all business processes are controlled within SAP, then there is no need for additional systems. However, this strategy is impractical for the following reasons: A centralized architecture based solely on SAP is not safe Facilities with medium to large traffic require high availability systems capabilities The SAP user interface is often too complex for operations personnel Safety Considerations Everyone who has worked on a corporate Wide Area Network (WAN) or intranet has experienced periodic network outages or performance lags. For and many business applications, these network performance issues are a nuisance and might impact productivity, but never cause unsafe conditions. However, software applications that automate fuel 14 White Paper
15 The Value of Integrating SAP with FuelsManager facility business processes are considered safety critical because they monitor and control the movement of fuel, which is a potentially explosive material. Tank gauging applications monitor tank levels and provide high level alarm notification in order to help prevent potentially dangerous overfills. Movement tracking, SCADA and terminal automation systems monitor and control pumps, valves and independent high level switches, and, as such, proper operation and alarm notification is understandably considered critical to the overall safety of the system. Due to the safety critical nature of these systems, best practice for system communications is to operate these applications on dedicated local networks. In addition, many of these applications connect to the required hardware control devices through proprietary networks that are not suitable for long range communications. High Availability Considerations Poor network performance and periodic network outages can severely impact the operations of facilities that perform a high volume of fueling transactions. For this reason, applications that control pumps and valves should operate on a dedicated LAN to ensure maximum network availability. Movement and SCADA applications are designed to allow facility operators to click on the screen to control pumps and valves in the field. These applications are often networked with one or more client computers connected to a server. The server often communicates to the PLCs and other control devices over the network. When filling a tank, for example, it is essential that the network is operational when the operator attempts to turn off the pump and close the valves. In these and similar scenarios, network failures can cause significant operational impact and in worse case scenarios can result in overfilling a tank. Because the control networks must provide high availability, best practices for systems engineering is to isolate the control network (local LAN) from the business network (WAN or intranet). In the world of organized information technology attacks, depending on business networks for safety critical systems is considered an unacceptable vulnerability. Terrorist groups have begun to attack these networks for the express purpose of interrupting business operations, and military facilities, airports, terminals and refineries are high profile targets. In addition, enemies are trained to attack communications as a priority Varec, Inc. 15
16 The Value of Integrating SAP with FuelsManager during conflicts. Installing critical logistics and control systems at the local facility and isolating these systems on control networks reduces vulnerability to attacks and to normal failures. With this architecture, the facility is able to continue working when connectivity to the business network is lost. Once the business network is restored, the fueling information, including inventories and transactions, can be uploaded to SAP so that the impact to business planning is minimized. It is possible to establish high speed, high availability communications between SAP and the facility networks. However, in most cases the expense for the required communications infrastructure far outweighs the expense of having a local system. User Interface Considerations SAP is a powerful system that is designed to meet the business requirements of a variety or organizations. The SAP transaction screens are designed with a large number of fields organized by multiple tabs to facilitate recording any information about that transaction as shown in Figure 4. Often users have to navigate through several tabs, ignoring many unused and unnecessary fields in order to record the pertinent fuel transaction data. Users that are not accustomed to working with complex software applications often find this process difficult to learn. Additionally, SAP often does not provide standard support for many common business rules. As a result, business rules must often be enforced through written procedures and training rather than the application. This business logic can be developed using ABAP, but the result is a system that has been customized, which, as many customers are aware, often increases the complexity and costs of the initial system and future upgrades. Due to the complex screens and lack of specific business logic, users require significant training and exposure before they become proficient at using SAP. Many organizations have a high employee turnover for facility operators. Some organizations that have designed their system so that facility operators record data directly in SAP find that these employees often move on just as they become proficient at using the application. As a result, these organizations have had problems with maintaining the quality of data input into SAP. 16 White Paper
17 The Value of Integrating SAP with FuelsManager Figure 4 Example SAP Transaction Detail A Complete, Integration Solution Based on FuelsManager Just as SAP provides a complete solution to replace discrete legacy applications and ensure structured processes at the enterprise, FuelsManager provides a complete solution, as well as structured processes at the facility level. FuelsManager is a suite of software that includes all of the applications needed to automate airports, airfields, marketing terminals, intermediate terminals, marine terminals, refineries and petrochemical plants. With FuelsManager, the facility automation architecture is simplified as shown in Figure 5 below. FuelsManager RTUs PLCs Presets Gate Card Readers Rack Card Readers Tank Gauging Pumps & Valves Figure 5 FuelsManager Facility Automation Landscape Varec, Inc. 17
18 The Value of Integrating SAP with FuelsManager A complete, integrated facility automation solution has the following benefits: Reduces system costs by operating the entire facility on a single server, simplifying information technology security and system maintenance Improves technical assistance because help desk analysts are trained on the entire system, from the gauge to the enterprise interfaces Eliminates unnecessary paperwork, such as spreadsheets, custom databases and forms, by integrating these functions into the system Increases automation and data accessibility by capturing and storing all transaction and physical inventory data in a single database and a common data format Provides growth and maintainability because new features and technologies are available through upgrades that are tested and implemented as a single installation for the entire system FuelsManager provides everything that is needed in a single system, which makes facility automation cost effective. The combined solution of FuelsManager and SAP provides structured processes across the entire enterprise, including the corporate and facility levels. The overall platform is simplified because all business processes are handled in just two systems that are highly integrated. Local Operation FuelsManager is installed on control networks so that it can safely monitor and control the movement of fuel at the facilities. Operating on a local server, the operation of FuelsManager is unaffected when connectivity to SAP is lost. Once connectivity is restored, FuelsManager can upload information for immediate visibility and processing so that the quality of the business network has minimum impact to business operations. Intuitive User Interface FuelsManager s user interface is designed specifically for oil and gas facility processes typical of commercial oil companies and aviation and 18 White Paper
19 The Value of Integrating SAP with FuelsManager defense organizations. Each transaction natively supports common business logic for bulk fuel operations at fuel facilities. Master data is set up with user friendly names so that users are not forced to memorize or look up numeric codes. Each transaction can be configured so that only the fields relevant to each customer are shown on the transaction screens. In most cases the transaction screen is a single page, as shown in the example in Figure 6. Every field in FuelsManager can be renamed to match the terminology already in use by the organization. These features enable Varec to provide user interfaces that are intuitive and easy to learn for facility operators and other operational users. Figure 6 Example FuelsManager Transaction Detail The user interface design for the integrated system fits the application to the appropriate target users. SAP is designed to accommodate the complex and manual enterprise business processes where many optional fields are needed and users are highly trained. FuelsManager is designed to accommodate the needs of operational users who have high employee turnover and whose training is less focused on software. Varec, Inc. 19
20 The Value of Integrating SAP with FuelsManager Quality of Data Automating all facility business processes with FuelsManager and integrating tightly with SAP can significantly improve the quality of data within SAP. The need for paper forms, spreadsheets and custom databases is replaced with standard processes in FuelsManager. FuelsManager automatically captures most of the transaction and inventory data through connections to tank gauges, meters, PLCs and other control and measurement devices. Where manual data input is required, FuelsManager s handheld, kiosk and operator terminal devices allow operators to record the data as a standard part of the fueling process rather than recording it on paper for later data entry. FuelsManager and its peripheral applications enforce process specific business rules that protect against common data entry errors. FuelsManager can automatically synchronize master data, such as trucks, aircraft, fuel types and organizations, with SAP to keep both systems up to date when information changes. This eliminates the common errors that result when users attempt to upload transactions that use master data that cannot be found in SAP. FuelsManager also enforces the integrity of data uploaded to SAP. Many custom interfaces in operations today are based on manual file uploads or automated batch file transfers. These designs do not enforce the integrity of the transactions. When a user exports a file, the facility automation system has no way of ensuring that the file was successfully uploaded to SAP. The automated file transfer method eliminates user errors, but there is no way to guarantee the file is delivered. FuelsManager connects directly to SAP and records the upload status for each transaction. The transaction is not marked as sent until SAP confirms the successful acceptance of the transaction. If SAP rejects a transaction, it returns an error to FuelsManager that is saved for that specific transaction. In addition, because all processes are automated and tightly integrated, all data is auditable back to the source. Automation of Low Volume Facilities Organizations that have facilities spanning a large geographical area typically have a combination of high volume and low volume facilities. High volume facilities require more sophisticated automation typical of the diagram shown in Figure 3. Low volume facilities often have no automated control of pumps and valves and sometimes do not even have 20 White Paper
21 The Value of Integrating SAP with FuelsManager automatic tank gauging. These facilities might only perform ten to thirty loadings per day. The cost of installing a fully automated system is not always justified for low volume facilities. A central web application is a perfect solution for these facilities. The facility operators can record transactions on paper forms or an Excel spreadsheet and, because the number of transactions is low, these can be manually entered into the central server at the beginning or end of the day. For this reason, operations of low volume facilities is not usually severely impacted when connectivity is lost to the business network for hours or even a day. FuelsManager Enterprise Edition is designed to support multiple locations from a central web server. The user interface for FuelsManager Enterprise Edition is the same as other editions that would be installed at high volume facilities. Additionally, users at the high volume facilities can upload the transaction and inventory information to the enterprise server so that all information is stored in a single database. FuelsManager Enterprise Edition can then serve as the single point of integration to SAP. In addition, operational visibility and reporting can be performed within FuelsManager Enterprise Edition rather than SAP so that facility operators can take advantage of the simple user interface. A potential alternative solution is to have the facility operators log in directly to SAP and record the transaction data for low volume locations. This approach has the following disadvantages: There are two separate and distinct business processes for low volume versus high volume facilities. This makes it more difficult to support. Help desk support analysts must learn both systems. In addition, super users at high volume facilities are less likely to be able to help support users at low volume facilities. Facility operators often find the SAP user interface to be very complex compared to FuelsManager. For organizations that have high turnover, users are often just becoming proficient with SAP before they move on to other jobs. The customer must have separate training programs for low volume and high volume processes. The training program for SAP for facility operators at low volume facilities would be different Varec, Inc. 21
22 The Value of Integrating SAP with FuelsManager than the training program for FuelsManager at high volume facilities. The servers at each high volume facility must interface directly to SAP. Since the SAP system is used for many other business processes, it has a very high risk profile because any breach of security can impact many different areas of the business. Interfacing these facilities to the FuelsManager Enterprise central server significantly isolates security risks associated with the facility automation systems. Change requests for the low volume fuels processes must be controlled through the SAP configuration control board. Therefore, the ability for the information technology team to respond to business needs is slower and more costly. 22 White Paper
23 Understanding the System Architecture Understanding the System Architecture The typical integrated fuels information management and control system consists of software and hardware installed across a large geographical area. It is comprised of many subsystems operating at fuel facilities in one or more countries and on central enterprise servers that span one or more data centers. Depending on the type of organization, the fuel facilities can have various automation and controls, such as tank gauging, pump and valve control, truck loading, rail loading, aircraft refueling and marine vessel loading. These facilities can range in size from low volume (having less than thirty transactions per day) to high volume locations (having over a thousand transactions per day). Figure 7 below is a graphical illustration depicting the relationship between the subsystems and interfaces for the integrated system. Enterprise Data Center FuelsManager Enterprise Servers SAP Servers FuelsManager / SAP Interface Web Service Interface Standard Browser Interface High Volume Facilities Low Volume Facilities FuelsManager Professional Server Personal Computer with Internet Explorer TankGate PLC Preset Hand Held Computer Load Computer Figure 7 Example Fuels System Architecture Subsystems This section describes each of the subsystems shown in Figure 7. High Volume Facilities Subsystems at high volume facilities consist of a standard Microsoft Windows server with FuelsManager and Microsoft SQL Server. The Varec, Inc. 23
24 Understanding the System Architecture subsystem can use server clustering to achieve very high availability if desired. The subsystem operates on a local control network that connects the server to control devices. Devices that only support serial communications are typically connected to the control network using standard Ethernet to serial adapters. The Varec TankGate or 8130 RTU interfaces to automatic tank gauges, which typically require proprietary interfaces. Where desired, additional FuelsManager client workstations can be set up on the control network. Facility operators interact with FuelsManager through the clients or directly on the server in order to monitor and control fueling operations at the facility. The control network is connected to the business network through standard firewalls and switches to enforce security. The subsystem uses the connection to the business network to exchange data with the FuelsManager Enterprise subsystem. If the connectivity to the business network is lost, the local subsystem can continue to operate without error and synchronize data with FuelsManager Enterprise when the connectivity is restored. Low Volume Facilities The minimum configuration for low volume facilities is a single computer connected to the business network and capable of running the latest version of Microsoft Windows Internet Explorer. Facility operators log into the FuelsManager Enterprise web site and manually record fueling transaction and inventory information. Since all control of pumps is not dependent on software, facility operations are not affected when connectivity to the business network is lost. Additionally, because these facilities typically have a low number of daily transactions, facility operators are easily able to record completed transaction information once connectivity to the business network is restored. In many cases, even low volume facilities will have automated tank gauging. In these cases, a very low cost edition of FuelsManager can be installed and configured simply to perform tank gauging while all other functions are performed through the FuelsManager Enterprise web site. 24 White Paper
25 Understanding the System Architecture FuelsManager Enterprise The FuelsManager Enterprise subsystem typically consists of two or more Windows servers in a cluster or network load balance configuration. It supports operations on 32 bit or 64 bit servers. The subsystem uses a Microsoft SQL Server database that operates on the same servers or in a separate cluster depending on the transaction volume and user load. SAP The existing SAP subsystem infrastructure can often remain completely unchanged. Where SAP already interfaces to existing terminal automation systems, FuelsManager can be adapted to the existing interface. Where interfaces do not exist or when the organization desires to expand the capabilities of the interface, the SAP software must be configured to meet these additional requirements. Hardware and other equipment changes are almost never necessary. Interfaces This section describes the interfaces shown in Figure 7. FuelsManager Web Service Interface FuelsManager includes a standard interface to exchange data between high volume facility subsystems having a local server and the enterprise subsystem. The standard interface is based on Microsoft Message Queue and communicates over standard HTTPS connections. Alternatively, the interface can be configured to support IBM Websphere MQ Series. FuelsManager Enterprise Web Interface Users access the FuelsManager Enterprise subsystem using Microsoft Internet Explorer from any computer running Microsoft Internet Explorer through an HTTPS connection. Operators at low volume facilities use this interface to record inventory and transaction information. Management and other corporate users connect through this interface to administer the system and view information and reports. FuelsManager to SAP Interface FuelsManager exchanges data with SAP through this interface. The standard IS TAS interface exchanges standard SAP IDOCS over HTTPS. Varec, Inc. 25
26 Understanding the System Architecture The IS TAS interface can be extended to support additional business processes that are not supported by the standard interface. When developing custom interfaces, Varec and SAP typically recommend using standard technologies, such as IDOCS and HTTPS. However, where existing interfaces exist, FuelsManager can be adapted to integrate with the existing technologies. Interface FuelsManager typically requires a connection to an SMTP server in order to provide automated distribution of reports and event notifications. 26 White Paper
27 Capabilities of the Integrated Platform Capabilities of the Integrated Platform The integrated platform, based on FuelsManager and SAP, implements structured processes across the entire organization. SAP enforces structured business processes at the enterprise level and FuelsManager enforces structured business processes at the facility level. FuelsManager is highly integrated with hardware controls to automatically capture inventory and transaction information to ensure the highest quality of data. The interface to SAP enforces the integrity of the data exchanged between the facilities and enterprise levels. The complete, integrated system results in improved performance for each discrete business process in the supply chain, from forecasting and budgeting to sales and distribution. The combined solution delivers capabilities that are tailored to the target users, with SAP designed for corporate users, such as procurement and finance, and FuelsManager designed for facilities users, such as facility operators and fuels department managers. Demand Planning A key input to demand planning is historical data. FuelsManager ensures that all data is captured accurately and uploaded to SAP each day to make sure that an accurate history is available to support future demand planning. FuelsManager not only provides accurate information about fuel movements, but it also provides information about facility operators and equipment associated with fueling activities. The detailed information supports the capability for SAP or FuelsManager Enterprise to provide reports to calculate the maximum number of personnel, trucks, load racks and other resources needed to support peak fuel throughput for a selected period. The historical data is then supplemented with manually recorded sales forecasts and planned activities to predict future fuel demand and resources. As a result, the outputs of the demand planning process can predict the throughput and resources needed for the future. Budget and forecasting can then be performed in SAP based on the outputs of the demand planning. Purchase Requisitions Depending on the organization s standard process, purchase requisitions can be raised by facility personnel or by enterprise personnel. For those organizations that use a process where facility personnel raise the Varec, Inc. 27
28 Capabilities of the Integrated Platform purchase request, the purchase request is entered into FuelsManager and transmitted to SAP for processing by procurement personnel. The facility personnel are responsible for managing inventory storage and movement information, such as the receipt tank and preferred supplier, which can be recorded in the purchase request. Supply Ordering Purchase requests that are transmitted by FuelsManager are automatically created in SAP. SAP can prompt procurement personnel to take action on the purchase request. The procurement personnel will create a purchase order in SAP for one or more purchase requests and send this purchase order to a supplier. Upon acceptance of the order by the supplier, a bulk shipment schedule can be recorded in SAP showing the planned delivery quantities and dates. SAP can send the bulk shipment schedule to FuelsManager, which adds the receipt record to the movement tracking application with the planned start date and time, allowing the facility managers to plan accordingly. An example of the movement tracking application is shown in Figure 8. Figure 8 FuelsManager Movement Tracking 28 White Paper
29 Capabilities of the Integrated Platform To prepare for the receipt, facility management must plan to have personnel available at the time of the receipt and ensure that tank storage is available. Often, facility personnel coordinate directly with carriers for truck and rail receipts or with the pipeline company for receipts by pipeline. Bulk Receipts Facility operators monitor and control the receipt of fuel in FuelsManager. When receiving fuel by pipeline, facility operators use the FuelsManager movement tracking system shown in Figure 8 to monitor the movement quantities. The movement application captures the level, volume and other process data at the start and finish of the movement. The movement tracking application can integrate with the PLC to automatically open the appropriate valves and start the pumps for the movement. Alternatively, the facility operators can manually open the appropriate valves and start the pumps using a FuelsManager graphics screen shown in Figure 9. Figure 9 FuelsManager Graphics Screen For receipt by truck, rail or barge, FuelsManager can integrate with presets and load computers to automatically capture the receipt Varec, Inc. 29
30 Capabilities of the Integrated Platform information. Where required, FuelsManager can identify drivers and loading personnel using identification cards. The driver or load personnel can enter the receipt quantity, purchase order number, equipment numbers and other information. The preset and load computer will then automatically open the valves and turn on the pumps and then monitor the meter to receive the required quantity. At the completion of loading, FuelsManager automatically creates the receipt transaction. Upon completion of the physical receipt of fuel, facility fuels accountants allocate the received inventory to one or more stockholders. The bill of lading information, including the purchase order number, is recorded if it was not already captured through the preset or load computer. FuelsManager then increases the book inventory for each of the stockholders. Sales Orders When customer service or other users receive sales orders, they enter the information into SAP. SAP automatically downloads the order information to FuelsManager. FuelsManager is then capable of automating the complete process for the pick up of the sales order. When the carrier arrives by truck, FuelsManager automates the driver identification and entrance gate control. The driver then proceeds to the truck rack and interfaces directly with presets and load computers to perform the loading. The preset and load computer at the truck racks have card readers to identify the driver before allowing the loading. The driver enters the order number in the preset or load computer, allowing FuelsManager to automatically determine the loading information. The preset or load computer then automatically controls the pumping of fuel into the containers on the trailer. When the fueling is completed, FuelsManager prints the bill of lading and automatically records the transaction. Sales orders that are picked up by barge and rail can also be automated through presets or load computers. However, in most organizations the loading is performed by facility operators rather than the carrier or customer. In all scenarios, FuelsManager is able to automatically record the transaction information and print the bill of lading paperwork. FuelsManager uploads the sales transaction information to SAP where it can be posted against the sales order. Financial users are then able to generate invoices for the sale of fuel. FuelsManager can also support the 30 White Paper
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