What Kind of Automation do the Chemical and Pharmaceutical Industries Need?

1
What Kind of Automation do the Chemical and
Pharmaceutical Industries Need?

• Dr. Norbert Kuschnerus
• Senior Vice President, Bayer Technology Services
• President, NAMUR

2
Bayer Technology Services Facts and Figures
2003

• Bayer Technology Services (BTS) is a company of
  Bayer Holding with
• 2.400 Employees worldwide, located in Leverkusen,
  Germany Antwerp, Belgium Baytown, Texas Mexico
  City Belford Roxo (Rio de Janeiro), Brazil and
  Shanghai,
• Sales of 690 million Euros annually,
• A current portfolio of 70 products covering needs
  in process development, engineering and
  construction management, automation, logistics,
  production unit optimization, production unit
  maintenance, energy management, as well as
  turn-key construction of production units and
  infrastructure
• BTS operates in five areas
• Life Science
• Crop Science
• Polymers
• Chemicals
• General Process Industries

3
What Kind of Automation do the Process Industries
Want ?

• We do not want automation to just operate the
  unit.
• This is summed up by the comment of one unit
  superintendent
• about the traditional automation as
• CAS System (Colorful And Stupid).
• What does the customer really want?
• Our answer Operate the unit that is embedded
  in a worldwide,
• integrated group of production facilities
• at best utilization of assets,
• at highest yields,
• at lowest raw materials consumption,
• at lowest energy consumption,
• at lowest personnel costs,
• with 100 safety,
• at highest reliability
• to produce in-spec products,
• at lowest inventories,
• ready to deliver at all times.

4
Automation leads to enterprise-wide process
optimization
RealPotential
Achieve the real potential by including the
entire production process
Enterprise Performance
of Total Revenue
4-6
2-3
Spot
Combined
IntegratedProduction Unit Operation
Operation with Enterprise-Wide Supply
Chain Optimization
Unit Operation
5
Total Automation in Process Industries
Production Planning, Materials Management,
Warehouse Management, Quality Management
Enterprise Resource Planning (ERP), Advanced
Planning Systems (APS)
Supply Chain Optimization
Information Exchange

Advanced Process Control Performance Monitoring,
Training Simulator
Manufacturing Execution System (MES)
Distributed Control Systems (DCS)
Instrumentation (IE)
On-Line Analysis
Logistics
Logistics
Production Unit
6
Total Automation in Process Industries
SAP Enterprise Resource Planning (ERP)
WM Warehouse Management
MM Materials Management
QM Quality Management
PP-PI Production PlanningProcess Industries
PM Plant Maintenance
APO Advanced Planner and Optimizer
Information Exchange
Laboratory Automation (LIMS)
Performance Monitoring
Production Preparation
Production Execution (Batch)
Production Data Analysis
Asset Management
Technical Logistics (MIMS)
Training Simulator
Manufacturing Execution System
Advanced Process Control
Control Systems
Process Optimization
Electrical Instrumentation
On-Line PAT
Laboratory
Raw Materials Logistics
Sales Products Logistics
Production Unit
7
Total Automation
SAP Enterprise Ressource Planning (ERP)
WM Warehouse- Management
MM Material- Management
QM Quality- Management
PP-PI Production PlanningProcess Industry
PM Plant Maintenance
APO Advanced Planner and Optimizer
We do not need the overall scope for a specific
project, but we need to understand the overall
scope to ensure smooth development of further
automation.
Information exchange
Laboratory- automation (LIMS)
Performance Monitoring
Production- preparation
Production- execution (Batch)
Production- data- analysis
Asset- management
Technical logistics (MIMS)
Manufacturing Execution System
Advanced Process Control
Control Systems
Process optimization
Electrical Instrumentation
PAT-online
Inprocess-control
Sales material logistics
Plant - Unit - Process - Laboratory
Raw material logistics
8
Traditional Automation in Process Industries
SAP Enterprise Resource Planning (ERP)
WM Warehouse Management
MM Materials Management
QM Quality Management
PP-PI Production PlanningProcess Industries
PM Plant Maintenance
APO Advanced Planner and Optimizer
Information Exchange
Laboratory Automation (LIMS)
Performance Monitoring
Production Preparation
Production Execution (Batch)
Production Data Analysis
Asset Management
Technical Logistics (MIMS)
Training Simulator
Manufacturing Execution System
Advanced Process Control
Control Systems
Process Optimization
Electrical Instrumentation
On-Line PAT
In-Process Control
Sales Products Logistics
Plant - Unit - Process - Laboratory
Raw Materials Logistics
9
Examples of Advanced Automation TodayReal life
in a chemical and pharmaceutical enterprise

• Process optimization Example Advanced process
  control
• Performance monitoring in a chemical production
  unit
• Use of training simulators in a chemical
  production unit
• Supply chain optimization for worldwide
  production in the process industries
• Manufacturing execution in a crop protection
  multi-purpose unit

10
Plant Optimization Example Advanced Process
Control
SAP Enterprise Resource Planning (ERP)
WM Warehouse Management
MM Materials Management
QM Quality Management
PP-PI Production PlanningProcess Industries
PM Plant Maintenance
APO Advanced Planner and Optimizer
Information Exchange
Laboratory Automation (LIMS)
Performance Monitoring
Production Preparation
Production Execution (Batch)
Production Data Analysis
Asset Management
Technical Logistics (MIMS)
Training Simulator
Manufacturing Execution System
Advanced Process Control
Control Systems
Process Optimization
Electrical Instrumentation
On-Line PAT
In-Process Control
Sales Products Logistics
Plant - Unit - Process - Laboratory
Raw Material Logistics
11
Improvement of Process Operation
Example Isomer Separation

• Improvement of Process Operation
• Basis for OpX
• Consists of
• Improved instrumentation
• On-line analysis
• Process modelling
• Integration in DCS

• Before
• Isomer separation Analysis in a traditional,
  off-line laboratory (4-hour delay)
• Quality assurance by excessive compliance with
  product specifications

• After
• Product specification is observed on-line through
  modern analyzer technology (NIR)
• Completely automated process for in-spec
  production
• Reduced number of manual analyses
• (personnel)
• Reduced energy consumption
• Increased availability through faster load
• changes
• Less off-spec production
• Reduced raw materials consumption
• ROI of plant optimization lt 6 months

2 AB
48 4 AB

50 6 AB
PCS
feed
On-Line NIR Analyzer
99 6 AB
F
C
1 4 AB
Savings gt 1 Million annually
Q
12
Process Performance Monitoring
SAP Enterprise Resource Planning (ERP)
WM Warehouse Management
MM Materials Management
QM Quality Management
PP - PI Production PlanningProcess Industries
PM Plant Maintenance
APO Advanced Planner and Optimizer
Information Exchange
Laboratory Automation (LIMS)
Performance Monitoring
Production Preparation
Production Execution (Batch)
Production Data Analysis
Asset Management
Technical Logistics (MIMS)
Training Simulator
Manufacturing Execution System
Advanced Process Control
Control Systems
Process Optimization
In-Process Control
Electrical Instrumentation
On-Line PAT
Sales Products Logistics
Plant - Unit - Process - Laboratory
Raw Material Logistics
13
Process Performance Monitoring

• Process Performance Indicators
• Operating Conditions, such as
• Energy Consumption
• Raw Materials Consumption
• Yield
• Asset Conditions, such as
• Plugging and Fowling Forecast
• Corrosion Forecast
• Sensor Signal Reliability
• Column Efficiency

• Process Performance Monitoring
• Basis for OpX
• Consists of
• Instrumentation Improvement
• On-Line Analysis
• Process Data Acquisition and Evaluation
• Process Model
• Visualization

• Costs / Benefits (three-year experience from 40
  projects)
• Project Costs 100,000 to 1 Million
• Project time requirement 6 - 12 months
• Energy reduction Up to 10
• Yield increase Up to 10
• Forecast of equipment problems Up to 14 days
  within a few hours margin of accuracy
• ROI of plant optimization lt 6 months

Process performance monitoring is applied, when
we cannot close the loop for process operation
improvement
Visualization, e.g. via Internet or Intranet
14
Training Simulator - Chemical Plants
SAP Enterprise Resource Planning (ERP)
WM Warehouse Management
MM Materials Management
QM Quality Management
PP-PI Production PlanningProcess Industries
PM Plant Maintenance
APO Advanced Planner and Optimizer
Information exchange
Laboratory Automation (LIMS)
Performance Monitoring
Production Preparation
Production Execution (Batch)
Production Data Analysis
Asset Management
Technical Logistics (MIMS)
Training Simulator
Manufacturing Execution System
Advanced Process Control
Control Systems
Process Optimization
Electrical Instrumentation
On-Line PAT
In-Process Control
Sales Products Logistics
Plant - Unit - Process - Laboratory
Raw Materials Logistics
15
Training Simulator - Chemical Plants
Objective

• Unit operator training
• Plant scenario training load changes and typical
  malfunctions
• Automation software tests

Action

• Development of a dynamic model of the entire unit
  
• Plant model link-up to an emulated DCS

Results

• More highly skilled unit operators before startup
• Improved automation software
• Reduced commissioning time
• Cost 300,000 - 700,000 per unit
• Savings. 50 of startup costs
• Avoidance of operational errors savings in one
  case
• 3 - 30 days of lost production
• 100,000 - 1 million maintenance costs

16
Supply Chain Optimization in Process Industries
SAP Enterprise Resource Planning (ERP)
WM Warehouse Management
MM Materials Management
QM Quality Management
PP-PI Production PlanningProcess Industries
PM Plant Maintenance
APO Advanced Planner and Optimizer
Information exchange
Laboratory Automation (LIMS)
Performance Monitoring
Production Preparation
Production Execution (Batch)
Production Data Analysis
Asset Management
Technical Logistics (MIMS)
Training Simulator
Manufacturing Execution System
Advanced Process Control
Control Systems
Process Optimization
Electrical Instrumentation
On-Line PAT
In-Process Control
Sales Products Logistics
Plant - Unit - Process - Laboratory
Raw Material Logistics
17
Supply Chain Optimization in Pharmaceutical
Production Units

• Analysis of the interrelationships between
  demand, service level, production capacities
  (units and personnel), and inventory
• Evaluation of lot sizes and emergency inventories
  as to feasibility and plausibility
• Optimization and reduction of inventories along
  the supply chain
• Visualization, risk assessment, and
  debottlenecking, particularly in cases of multi-
• layered production processes
• Normally
• Project costs 100,000 to 3 million
• Return on investment about 1 year
• 
  Leverkusen Formulation and Packaging

18
Integrated SystemCrop Protection Products
Multi-Purpose Plant
SAP Enterprise Resource Planning (ERP)
WM Warehouse Management
MM Materials Management
QM Quality Management
PP-PI Production PlanningProcess Industries
PM Plant Maintenance
APO Advanced Planner and Optimizer
Information Exchange
Laboratory Automation (LIMS)
Performance Monitoring
Production Preparation
Production Execution (Batch)
Production Data Analysis
Asset Management
Technical Logistics (MIMS)
Training Simulator
Manufacturing Execution System
Advanced Process Control
Control Systems
Process Optimization
Electrical Instrumentation
On-Line PAT
In-Process Control
Sales Products Logistics
Plant - Unit - Process - Laboratory
Raw Materials Logistics
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Crop Protection Products Multi-Purpose Plant

• Pilot plant and production unit for crop
  protection products
• Total investment 10 million
• Cost of MES, logistic systems and SCO 5 million
  
• Highly complex production structure
• Possibility of linking more than 200 unit modules
• Possibility of combining up to 40 unit modules
  for production campaigns of 3 - 5 months duration

• Personnel Reduction
• Increase of Asset Utilization
• Inventory Reduction
• Process Improvement Through Electronic Batch
• Analysis
• Avoidance of Raw Materials Mix - Ups
• Savings Unknown, but not operable without the
• improvements

Transfering 50,000 data/month
20
Trends We See

• DCS is becoming a basic commodity in the process
  industries,
• but its operation is still overloaded with
  information.
• Much work still remains to be done to make HMI
  more production-friendly.
• Enterprise Resource Planning is becoming a
  standard,
• but a lean and integrated information flow
  requires a lot of manual procedures or excellent
  and sophisticated engineering.
• Advanced manufacturing solutions and supply chain
  optimization are the keys to success in coming
  years
• Manufacturing Execution Systems
• Logistic Systems
• Advanced Process Control
• Process Driven On-Line Analysis
• Performance Monitoring
• Operator Training Simulators
• Supply Chain Optimization
• are the real benefit of production process
  optimization with cost savings
• increasing up to 10 of the total revenue
• - However, they need the solid basis of IE DCS
  and ERP

21
What is Required from the Vendor?

• Open Systems
• Each component must be able to communicate with
  any other component.
• We want to have a full competition in price and
  technology
• (Jim Caie, GM, ARC - Orlando February 2003).
• We dont think, that one single automation
  manufacturer can supply all required components
  and the best technologies for complete solutions
  at the best price world
• wide.
• Easy to Use Systems
• to save engineering costs and ease operation
• Modular HW and SW components
• Innovation cycles adjusted to the lifetime of the
  production units
• Technology must concentrate more on operational
  needs
• Most sensors offer solutions for what is easy to
  measure and not what is needed.
• Traditional HMI overloads the operator with
  unnecessary information,
• but does not immediately show what the operator
  really needs.
• Who is really taking care of asset management?
  Where is the entire information he needs?
• Alarms must lead to the real cause
• Alarm cascades confuse the operator and are most
  dangerous.

22
Total Automation

• Total automation requires
• a few additional high-tech hardware components
• a lot of additional, highly sophisticated
  engineering
• a wealth of experience
• a small additional investment
• Total automation brings the benefits of
  production at
• lower operating costs
• lower energy and raw materials consumption
• optimized asset utilization and material flow
• optimized product quality
• high return on investment
• This is operational excellence.

SAP Enterprise Ressource Planning (ERP)
WM Warehouse- Management
MM Material- Management
QM Quality- Management
PP-PI Production PlanningProcess Industry
PM Plant Maintenance
APO Advanced Planner and Optimizer
Information exchange
Laboratory- automation (LIMS)
Performance Monitoring
Production- preparation
Production- execution (Batch)
Production- data- analysis
Asset- management
Technical logistics (MIMS)
Manufacturing Execution System
Advanced Process Control
Control Systems
Process optimization
Electrical Instrumentation
PAT-online
Inprocess-control
Sales material logistics
Plant - Unit - Process - Laboratory
Raw material logistics
23
Thank you