High Value Services (Energy

Audits)
Combining knowledge and technology
to create growth

PSD Controls Delivering

Confidential copyright Henchin & Partners 2009 Sustainable Control Solutions
 INTRODUCTION
Henchin & Partners is a high level technical auditing and value engineering services firm
based in Singapore.

At Henchin & Partners we provide our clients with Sustainable growth through
Technology, Knowledge, and Understanding.

We provide our services in the following sectors:

Financial
Life-sciences
Mining and Minerals
Oil and Gas
Offshore and Marine
Petrochemical

The technical auditing and value engineering services pioneered by Henchin & Partners,
are based on combing business analysis techniques with the knowledge captured by
today s technology solutions.

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 CORE SERVICES AND BENEFITS
Henchin & Partners services include: Our core benefits:

Asset Assessments High value engineering solutions

Cost benefit analysis Solutions delivering CAPEX Savings

Energy Audits and assessments Solutions delivering OPEX Savings

Operational analysis Detailed knowledge of latest technologies

Operation and maintenance practice Significant Lead Engineer and Project

reviews Management expertise

Plant modernisation studies Reduced commissioning and start-up times

due to design upfront approach
Technology risk assessments
Technology interface Management
Technology data flow management and
analysis
Technical due diligence

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 PRINCIPLES FOR SERVICES METHODS
80/20 Principle
In simple terms the 80/20 principle states that in any project or business there is always a
certain portion (20%) which is critical to the success of the project or business.

Examples of the 80/20 Principle in a modern manufacturing facility:

Industrial control systems are 20% of the total capital cost but are the most critical 20%.
Of the instrumentation utilised on today s manufacturing skids, 20% are critical to the
quality of the product.
Of the alarms and alerts generated by the control system, only 20% are critical to safety
within the plant.
20% of the data captured by the control system is critical to plant operations.
20% of the System hardware is critical to the operation of the system (or 20% of the
overall functionality of the hardware is critical).

By understanding which portion is critical, efforts can be focused on the areas that provide
the most benefit.

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 PRINCIPLES FOR SERVICES METHODS
The New Growth Theory

The cornerstone of the New Growth Theory is that economic growth is a result of the
increasing returns associated with new knowledge. The growth potential of an economy (of
a company or a country) imparted by increasing knowledge rather than by labour or capital
investment is thought to be unbounded.

The New Growth Theory has two main points:

Technology progression is a product of economic activity

Unlike other products of economic activity (i.e. physical objects), technology is essential
to increasing growth.

The reason technology is not only a product of economic activity but also an enabler for
increasing economic activity (growth) is that technology increases knowledge. As with
other methods for increasing knowledge (e.g. research, training) the greater the investment
in technology, the greater the driving force for economic growth.

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 PRINCIPLES FOR SERVICES METHODS
The Decade Rule

The decade rule, which was adopted by IBM in the 1970s and is still valid today.

It states that $1 spent making a decision at any stage in the project is multiplied by
an order of magnitude if the decision is delayed until the next stage.

That means $1 spent during conceptual engineering by a small design team grows
to $10 during FEED, $100 at procurement, $1,000 during construction and $10,000 at
start-up. So, spending a few extra dollars upfront will yield significant savings later.

Yes, a consultant might be expensive, but that cost pales in comparison to the
price of an idle plant, field rework or several idle field mechanics later in the project.

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 PRINCIPLES FOR SERVICES METHODS
Stepping Stones Approach

The Stepping stones approach is an engineering methodology which can be adopted during
a system implementation. To implement the stepping stones approach the following steps
need to be adhered to:

1.Understanding of Clients long-term goals

2.Divide the Control System and Knowledge System into layers/levels SP-95 Model
3.Implement good design reliability techniques at each level
4.Ensure that all specific level applications/hardware are interoperable will industry standards
and the preceding level
5.Provide a full systems checks at the end of SAT to make sure that all system hardware and
applications are configured to maximize the benefit to clients
6.Build engineering to create a continuous improvement cycle where by as project are
implemented lessons learned are incorporated into future projects.
7.Leave interface hooks in place so that clients can implement full solutions in a phased
approach

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 PRINCIPLES FOR SERVICES METHODS
The aim of a stepping stones approach:
1. Reliability
2. Robustness
3. Sustainability
4. Interoperability
This will leads to clients fully utilizing Plant control system technology, and in turn avoiding
the issues that occur when poor project implementations are executed.

Reliability
The ability of a system or component to perform its required functions under stated
conditions for a specified period of time [IEEE 90].

Robustness
The degree to which a system or component can function correctly in the presence of
invalid inputs or stressful environment conditions [IEEE 90].

Sustainability
Is a characteristic of a process or state that can be maintained at a certain level indefinitely.
1. A commitment to best practice.
2. The principle of continuous improvement.

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 PRINCIPLES FOR SERVICES METHODS
Benefits of Stepping Stones Technique

As in all network solutions the reliability, robustness, and sustainability, are crucial for
allowing the end-user get the full benefits from their system. When applied to a Control
system Reliability, Robustness and Sustainability provide the following:
1.Elimination of Rework
2.Provide Product and industry sustainability
3.Operational Excellence
4.Proper utilization of Technology
5.End-user confidence in technology gateway for clients to adopt new technologies
6.Provide the concept of total automation
7.Return on investment for End-users
8.Elimination of Project losses

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 OUT WITH THE OLD
Traditionally:

Plant evaluations and surveys were carried out as manual exercises

(interestingly enough this is the process offered by today s large engineering
companies).
But
Technology has evolved, and knowledge of all factors influencing
manufacturing is readily available, the traditional approach needs to be revisited.

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 IN WITH THE NEW .
Past
Less data available for evaluation during a survey and the data that was
gathered was not validated prior to use.

Due to the inherent risks associated with the traditional approach and the availability of
new types of data now a new approach needs to be adopted.

EXAMPLE
A simple example of modernization of a survey can be found in today s
automobile service industry.
RESULTS
Both the quality of service and the service interval have increased as service
now includes a computer that comprehensively interrogates the car s onboard
computer.

This new approach has yielded significant dividends over the traditional approach of
manual, physical inspection only.
.

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 ENERGY AND MANUFACTURING .
Some Facts
All manufacturing facilities have process trains where energy is consumed in one
form or another and one or more products are generated.
In addition the facility may include its own utility plant that consumes energy as it
converts energy from one form to another and provides other inputs required by the
process trains.
Modern manufacturing facilities invariably utilize some level of automation which
is enabled through use of process control systems, asset management systems and
energy metering systems.
These systems collect process, maintenance, and energy usage data in relation
to operation of all equipment in the manufacturing process trains and utilities plant.
In order to reduce energy costs, manufacturing facilities may undertake an
Energy Audit where data is collected and opportunities to reduce energy usage are
identified.
Typically, the data that is collected consists mainly of visual inspection data
(observations) and a few measurements taken via handheld instruments.
Detailed process data from the automation systems can be used to identify
energy savings opportunities, this data is rarely collected during an Energy Audit.

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 ENERGY AND MANUFACTURING .
Some (more interesting) Facts (According to the Energy Star Program)
Energy monitoring systems and process control systems are key tools that play
an important role in energy management and in reducing energy use
The Wyeth Fort Dodge Animal Health pharmaceutical manufacturing facility in
Campinas, Brazil, installed a state-of-the-art metering, monitoring, and targeting
system to help reduce electrical demand during peak periods.
This project resulted in a 48% reduction in electricity use, a 10% reduction in
facility utility costs, and increased energy awareness among employees (Wyeth
2004).
HVAC system can account for 65% of energy consumption.
At the Rzeszow plant, Novartis installed microprocessor controls on its HVAC
system that could be programmed to better balance plant heating based on outside
temperatures and also reduce heating loads on weekends. It is anticipated that this
modification will lead to a 10% reduction in overall heating energy consumption

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 ENERGY AUDITS A NEW BEGINNING .
So what do we that s different?

Process
Control
New systems
growth
Theory

Energy
Usage

+ 80/20 data analysis

Knowledge for energy

optimisation/reduction

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 SUSTAINABLE MODEL
We combine, Technology, Knowledge, and continuous improvement

Leads to
sustainable
Growth

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 MODEL COMPONENTS
KNOWLEDGE
Process Control System, Instrumentation, Energy
Meters, Asset Management System

TECHNOLOGY:
Energy
Improve business model, streamline cost base,
improve knowledge flow.
Savings
DELIVER: Monitor and Target, Change controls,
process feedback

For efficient operation of the model

we use the 80/20 principle

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 INITIAL ENERGY AUDIT FOCUS

Utility bills
Information from existing energy monitoring equipment
Data Captured by control system

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 ENERGY AUDIT - THE PROCESS .STAGE 1
Initial Energy Survey overview:
Profile site energy consumption
I. Energy Procurement
II. Energy Conversion
III. Energy Distribution
IV. Energy Consumption
V. Energy Generation
Identify any shortcomings and inefficiencies
Identify any initial saving on energy consumption
Make recommendations based on findings
Identity future expansion plans, and evaluate impact on energy consumption
Baseline energy consumption
Issue Site Audit report

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 INITIAL AUDIT STRATEGY PLANT EQUIPMENT
Equipment (Utilities) Equipment (Process)
I. Boilers I. Reactors
II. Chillers/ refrigeration II. Dryers
III. Compressors III. Tanks
IV. Heating/ Cooling systems IV. Columns
V. Process heating and cooling (local V. Recovery towers
to the process)
VI. Packaging equipment
VI. Mechanical equipment
VII. Separation skids
VII. Pumps

These units are reviewed in relation Visual inspections, control strategies

and maintenance practices.

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 INITIAL AUDIT STRATEGY DATA SYSTEMS
Data Systems and analysis
I. Process Control systems
II. Local skid based control systems (PLCs)
III. Asset management solutions
IV. Calibration and maintenance management solutions
V. Process analytical technologies
VI. Energy metering systems
The data captured by these system is review in relation to control strategies, level of
automation, data capture strategy, and data management.

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 INITIAL AUDIT STRATEGY - INFORMATION
Required Information
Overview of the complete manufacturing process
Overview of utilizes systems
Utility bills per month for all energy sources
Overview of all automation systems
Visual inspection of equipment
Overview of plant philosophy (Manual/ automated, proactive/ reactive)
Identify if previous audits have been implemented and what were the results
Overview of any existing Metering systems
Overview of all data systems (DCS, AMS etc..)

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 ENERGY AUDIT - THE PROCESS .STAGE 2

Discuss report and recommendations

Identify all simple process/ utilities loops to be tuned
Identify simple instrument maintenance requirements
Issue baseline of energy usage
Identify additional metering
Identify additional software trending
Return on investment calculation for M&T (if required)
Capital expenditure justification (data validation) for M&T and changes
Set and monitor targets (set realistic target)

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 ENERGY AUDIT - THE PROCESS .STAGE 3
Com prehensive audit (DCS & M&T) Focus

Review energy peaks against process data (demand)

Review utilities equipment data against process demand
Process data against process equipment data
Operator actions and equipment events against energy peaks
Operator actions and equipment events against utilities equipment data
Nuisance information is it impacting operational efficiency
Control loop performance (Process and Utilities)
Software efficiency
Report issued
Justification made for CAPEX expenditure
Issue recommendations

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 COMPREHENSIVE AUDIT STRATEGY EQUIPMENT
Equipment (Utilities) Equipment (Process)
I. Boilers I. Reactors
II. Chillers/ refrigeration II. Dryers
III. Compressors III. Tanks
IV. Heating/ Cooling systems IV. Columns
V. Process heating and cooling (local V. Recovery towers
to the process)
VI. Packaging equipment
VI. Mechanical equipment
VII. Separation skids
VII. Pumps

The Units reviewed depends on the findings of the initial Audit

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 COMPREHENSIVE AUDIT STRATEGY
The comprehensive process involves detailed analysis of all data for energy used against
process data and utility data.

The Key Steps:

I.Review energy management program
II.Capture data from energy metering system
III.Review energy reduction targets
IV.Identify and develop continuous improvement strategy
V.Review data from previously implemented audits
VI.Review any energy savings measures which have been identified
VII.Gather PIDs and PFDs for key operations and utilities equipment
VIII.Identify with client all critical loops and instrumentation
IX.Gather relevant data from process control system
X.Gather relevant data from other systems (for data capture AMS, BMS, etc )
XI.Gather all relevant site procedures
XII.Identify locations for better energy metering (local to equipment, distribution lines etc

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 COMPREHENSIVE AUDIT DATA ANALYSIS
Analysis Technique
Repeat the following procedure for all significant energy inputs to the process.
1.Select an energy variable to analyse (gas usage, electricity usage, etc.).
2.Identify the most critical 20% of instruments and equipment (in relation to energy usage).
3.Identify a suitable frame of reference (e.g. product batch time, calendar month).
4.Review energy variable data over at least 10 time frames.
5.Identify peaks in energy usage per the selected frame of reference
Analysis Factors (reviewed in relation to energy consumption)
VIII. Process & Schedule Analysis
I. Operator Actions Analysis
IX. Operations Logistics Analysis
II. Motor/Pump/Fan Analysis
X. Equipment Sizing and Demand Analysis
III. Utilities Equipment Control Strategy Analysis
XI. Data Centre Analysis
IV. Maintenance Procedure Analysis
XII. Energy Metering Analysis
V. Operational Procedure Analysis
XIII. Alarm and Event Analysis
VI. Software Efficiency and Time Cycle Analysis
XIV. Loop performance and energy usage
VII. Visual Inspection Observation Analysis
XV. Mechanical Equipment Analysis

XVI. Data Application Analysis

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 IMPLEMENTATION STAGE 4
Im plem ent all recommendations

Tune complex loops

Apply maintenance where required to key equipment
Implement new maintenance strategy
Apply Critical Software improvements
Apply process changes
Upgrade technology where required
Monitor energy usage and set targets
Install additional meters
Set new targets and monitor (set review period)

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 CONTINUOUS IMPROVEMENTS STAGE 5

Quarterly target reviews

Ongoing audits
Promote Energy awareness
Ongoing process data analysis
Reward energy reduction strategies
Energy management system has same focus as quality management
Change control covers not only EHS, and Quality buts also energy
Create proactive operations

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 TO CONCLUDE ..
By analysis of the data captured by an energy monitoring system with the data from a
process control system, key areas for reduction energy can be readily identified

Energy Process
monitoring system Control system

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 WHY HENCHIN & PARTNERS
Key resources have held senior technical positions for control system suppliers
Key resources have held senior technical positions for large manufacturing companies
Application for ESCO (Accreditation for energy audits by Singapore government) is
currently under review
Gave presentation on concept of knowledge services for industry was recently given to
all the major petrochemical manufacturers in Singapore (as requested by the National
Environmental authority of Singapore).
Created a survey application to automate and improve the quality of our services
Strong working relationships with the main control system suppliers
Have recently carried detailed control system audits for Shell

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