(86b) Profitability Through Lean Six Sigma

Presenter Information 

Contact Information

Presenter Name:

Bhanumurthy, Maddala V

Contact Name:

Bhanumurthy, Maddala V

Telephone No.: 00966-43978540

00966-506285745

Presenter Photo:

Fax No.:00966-43978118

Email Address (Required):

BHANUMMV@ARAMCO.COM

MADDALA.BHANUMURTHY@ARAMCO.COM

Your Company / Department:

Saudi Aramco/Yanbu Refinery

Presenter Biography: 

Joined Saudi Aramco as a  Senior Process Engineer in 2007 and currently working  as Yanbu Refinery Energy Cooridinator and Utilties Engineer. A Chemical Engineering Grauduate and MBA from Andhra University. Had 25 years refinery experience and worked  for   Hindustan Petroleum Corporation Limited, Qatar Petroleum. Before joining SA, employed as Deputy General Manager/FCC Head in Essar Oil Limited,India.

Paper / Presentation Title: Profitability through Lean Six Sigma

Abstract:

Lean Six Sigma (LSS) project is an ideal way to improve profitability by energy optimization and reduce Energy intensity index (EII). EII, based on Solomon method, is in use to compare different refineries energy performance. LSS drives speed, quality, and cost simultaneously. Lean focuses on the elimination of waste while Six Sigma focuses on reducing process variation and then on improving the process capability through the methodology DMAIC (Define-Measure-Analyze-Improve-Control). 

Features that set Six Sigma apart from other initiatives include A clear focus on achieving measurable and quantifiable financial returns, commitment to making decisions based on verifiable data, rather than assumptions and guesswork and an increased emphasis on strong management leadership and support. A special infrastructure of "Champions," "Master Black Belts," "Black Belts," "Green Belts", etc. will lead and implement the Six Sigma approach.

Yanbu refinery adopted LSS approach with Management and Organizational Consulting support to reduce and meet best performing refineries EII. Project started with team selection comprising of Process Engineers, Operations Foremen. Project scope clarified with problem and goal statements. Process boundaries identified using SIPOC (Supplier, Input, Process, Output, and Customer). Team identified CTQ (critical to quality) and defects causing process deviations to meet customer requirements. For identified defect, Fishbone created, data collected, Failure Mode Effect Analysis (FMEA) started, detailed process maps and Pareto charts developed. Process flow analyzed for value and non-value added steps to identify opportunities. Data analyzed utilizing graphic tools, hypothesis tests, and regression analysis to draw conclusions. Solution options identified, evaluated and short tem measures implemented with action plan for long-term measures with customer buy in. Results with financial benefit recorded and Control measures put in place. 

Short-term measures include steam optimization, Boiler load management, Flue gas oxygen optimization, inaccurate flow meters identification. Long-term measures include shifting users from Medium to low pressure steam and waste heat recovery from flues gases. The LSS project improved EII to 78.1 by 2011 from 78.9 in 2010 with a cost avoidance of $0.8MM/year.