April 2025

Process Controls, Instrumental and Automation

Driving operational excellence: Integrate digital solutions for a smarter supply chain

Siloed systems lead to isolated data and inefficiencies in decision-making due to a lack of visibility. To address these challenges, the authors' company built a strategic digital command and control center. The goal was to resolve daily operational issues by integrating various systems into a unified data ecosystem, enabling real-time, integrated decision-making and driving operational excellence.

In the hydrocarbon processing industry (HPI), supply chain and market variabilities require constant interactions between complex internal processes, from production to shipment. Various departments—such as production, planning, logistics, scheduling and sales—must collaborate to reach an integrated decision on the best course of action to maximize margins. Although these day-to-day interactions significantly impact operational efficiencies, net margins and growth, they often remain siloed, limiting overall performance. Siloed systems lead to isolated data and inefficiencies in decision-making due to a lack of visibility. 

To address these challenges, the authors' company built a strategic digital command and control center. The goal was to resolve daily operational issues by integrating various systems into a unified data ecosystem, enabling real-time, integrated decision-making and driving operational excellence. Generally speaking, for a 300,000-bpd refinery, digitalization typically promises an increase in margins of 3%─10%. 

Digitalization enables real-time data acquisition from disparate source systems, transforming data into actionable insights. These insights are then presented as key performance indicators (KPIs) to the right people at the right time, facilitating informed and timely action. In this way, the system can continuously identify opportunities to improve performance and enhance decision-making (FIG. 1). 

FIG. 1. Scope and ideology behind IMS. 

In 2020, following disruptions in global supply chains due to the COVID-19 pandemic, the authors' company launched an integrated management system (IMS). The initiative included a central facility with video walls, known as the digital command and control center. This article outlines the approach used in the project and presents an example of its outcomes. 

The project scope encompassed all aspects of the supply chain, from production planning to end-product shipping, ensuring lateral supply chain integration and linking it to the plant floor for vertical integration. 

PROJECT STAGES 

• As-is assessment: The journey began with a comprehensive evaluation of the "as-is" state of the business. This included mapping the existing solution landscape, business processes, value streams and data flows (FIG. 2). Identifying inefficiencies and bottlenecks was critical at this stage. The “as-is” assessment allowed solution architects to interact with various departments and understand their requirements, challenges and data quality issues. This required more than 120 meetings, and the outcome was a detailed map of the existing solution landscape and data flows. 

FIG. 2. As-is assessment. 

• Benefits assessment: The next step was a thorough benefits assessment to determine the potential value of improvement initiatives. Each potential project proceeded only if it promised measurable returns, such as cost savings or increased revenues. At this stage, crucial business performance indicators were selected as lagging indicators for the final solution. A baseline was developed using historical data (e.g., an average from the last 1 yr─2 yr), and post-implementation target values were established. The expected value from the solution was projected at $12 MM/yr–$20 MM/yr (TABLE 1). 

• To-be development: In this phase, a future-state vision was crafted, involving the design of new processes, workflows, KPIs and digital solutions that aligned with the organizational goals identified in the benefits assessment. 

• Functional design specifications (FDSs) and detailed design specifications (DDSs): The vision was translated into actionable strategies through FDSs and DDSs. These documents served as blueprints for implementation, ensuring that all stakeholders had a clear understanding of the planned developments. 

• Site acceptance test (SAT): The SAT ensured that the design outlined in the DDS was fully implemented and met all requirements. 

• User adoption: Several training sessions were conducted with stakeholders to familiarize them with the organization's new digital workflows and KPIs. This training ensured that employees could effectively interpret the KPIs and take appropriate actions, when necessary (FIG. 3). 

FIG. 3. Digital command and control center. 

The IMS project introduced role-based dashboards, real-time alerts and analytics tools that provided decision-makers with actionable insights. The availability and quality of this information were paramount, directly impacting the speed and accuracy of decision-making. 

The dashboards were powered by a master database, which served as the backbone of the ecosystem. This centralized repository processed raw data into actionable insights. High-quality data was crucial, necessitating regular audits, cleansing and enrichment to ensure a single version of the truth. Data updates occurred automatically as changes were made in source systems, ensuring accurate and timely information. 

Performance gaps were addressed through a targeted program of initiatives, including the automation of manual tasks, predictive analytics for improved planning and enhanced user interfaces for better service delivery. Field operations were equipped with handheld devices for real-time value reporting, which were then linked to the IMS for target setting and monitoring. 

The implementation involved a collaboration with Honeywell as the integration service provider (ISP) to deploy the necessary hardware, software and dashboard development. Rigorous factory acceptance testing (FAT) and site acceptance testing (SAT) validated the solutions, ensuring the immediate realization of benefits. 

CASE STUDY 

One key feature of the IMS was a digital energy dashboard. This dashboard provided real-time monitoring of energy costs and consumption against performance targets. Upon noticing higher-than-expected costs, it was discovered that a small stream of dry gases, previously routed to furnaces, could instead be used for olefin production via a steam cracker (FIG. 4). This change increased feed to the steam cracker, boosting polymer production by 1%–2%. Overall, the project has delivered nearly $30 MM/yr in value since its inception. 

FIG. 4. An increase in dry gas feed to steam crackers for olefin production. 

Takeaway. This structured approach—spanning the identification of performance gaps, system integration and delivery of actionable insights—demonstrates how organizations can achieve significant operational and financial improvements. By prioritizing data-driven decision-making and aligning initiatives with strategic goals, businesses can realize revenue growth and enhanced efficiency in a sustainable manner. 

The Authors

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