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DEMISE/RISE OF PROCESS CONTROL

Demise and keys to


the rise of process control
Modeling the penalty for violating constraints as well as
modeling the credit for approaching them, and shared-risk
shared-reward business practices are the solutions
p. R. LATOUR, Clifftent Inc, Houston, Texas

N umerous articles, editorials and ads in the past few years


described trouble in tbe commercial practice ot process
control and suggested remedies like better quality infer-
entials, basic loop tuning, operator training, process knowledge,
LITERATURE REVIEW
A host of papers have attempted to identify the reasons
algorithms, models, engineers, instruments, integration and for the demise of the automation business. A comprehensive
management faith. The business is fragmented, floundering and study of numerous publications indicates the confusion. Some
declining. There is no consensus on the cause or remedy, but some say it's technology; some say it's relationships. Practitioners
suggestions to improve the industry are provided. seek performance, suppliers promote results, customers com-
The full business promise of process control, instrumentation, plain about invisible benefits. Kane provided insights from a
automation, closed-loop optimization, information technoiogy computer conference full of ideas but lacking sound financial
(IT) integration and HPI computer integrated manufacturing support to sustain quantified benefits."'"
(CiM) in 1990 has not been and will not be realized because of:
• Inability to measure fmancial performance of system solu- Technology
tions Flaws. Many have cited technical flaws. Friedman pushes
• Confusion between products and solutions businesses better inferential measurements^^"^^ but has no way to quan-
• Failure to license solutions based on shared risk-shared tify the financial consequences and he fears the process control
reward (SR2) performance relationships. industry has completely collapsed. Qualities were first commer-
cially inferred from simple measurements in 1971, when crude
In t h e beginning. Chemical process systems engineering unit side-draw TBP cutpoints were inferred from temperatures,
for dynamic analysts and control was inaugurated in universities pressures, internal refluxes and steam rates.^^^^^^ King decries
and large operating companies like Shell, Esso, Mobil, DuPont, poor engineering practice and shows 14 ways to lose money
Phillips, Texaco and Monsanto in the 1960s. Chemical process with improper property inferential but does not quantify the
operation was deemed the third arena of chemical engineering, losses rigorously.^^' ^° Smith has long proposed knowing how
after product development and manufacturing plant design. Con- the process works but never relates process operation to its
trol systems engineering was created for mechanical, electrical, associated economics and profit generation.^'-^^ Hill regularly
aerospace, agricultural, chemical and business systems.' ~^'' Analog writes on the value of good operators but cannot quantify
instruments and early digital computers were used for feedback their financial performance.^^^^ A supplier's survey^^ reported
and feedforward control of flow, temperature, pressure, level and the biggest challenges: limited budget for integrating software
product qualities. with business performance, 35%. (Budgets shouid never limit
Advanced process control was developed and commercialized compelling prof it generation.)
for the HPI in the 1970s by several advanced control suppliers Six Sigma management. Doble reports 13 Six Sigma myths,
using general-purpose computers with real-time Unix operating confirming it has floundered due to lack of proper dynamic
systems connected to basic pneumatic, electric and new digital financial performance measurement,^^ as reported by Clif-
controllers. Investments were initially justified on cost savings like ford.^° Welch had the same difficulty.^^"^^ Stewart reports on
manpower reduction, which operators despised, or on the notion CEO Larry Carter's use of up-to-date information to run Cisco,^^
that everybody else is doing it because computers are good so we which could probably be standardized with clifftent.^^
must keep up-"the taith theory." Soon process yield and utility Limit setting. Hartmann's refinery LP work clearly shows the
credits were seen. financial importance of setting constraint values properly,^^ as
In the 1980s, CIM expanded to distributed control systems proposed in 1996.^^-''^ Kalis has an excellent description of the
(DCSs), multivarlable control, online optimization, scheduling, importance of knockout drum demisters to protect compres-
plantwide control and IT integration throughout the worldwide sors,^'' a large profit opportunity for statistically optimal gas
HPI. Investments were justified by smoother operation that made velocity setting''^'"^j Golden confirms.^^
no direct money but allowed average targets to be moved some- Continued

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BOMUSREPORT DEMISE/RISE OF PROCESS CONTROL

what in a more profitable steady-state direction.-^'^"•'•' A major


Lemmers shows the importance of limit setting for com- DCS vendors ads featured King Cole surrounded by piles of gold.
pressor surge and stonewalP^ without a method for setting The faith theory prevailed, but sav\'y management continued to
them optimally or quantifying the control system financial inquire: Please show me where the money comes from and how
value. Amrouche gives tank limit setting standards^*"^ which much is net; we want secure, sustained profits.
could be optimized for uncertainty and financial conse-
quences.^^'^^ At t h e p e a k . By 1990, CIM was poised to profoundly con-
tribute to profitable manufacture of clean fuels like reformulated
Safety gasoline (RFG), enbancing refinery performance by $l/bbl crude
Risk management. A risk management feature'"^ lacks and refining plus downstream petrochemicals by $2/bbl crude.
any sound performance measure. Ghosh claims improved The technology was known, experienced staff was affordable,
critical condition management can add at least 5% to prof- hardware was capable and improving, and economic drivers were
its^^^ but lacks the proper method to measure and prove this
claim. Mannan promotes the Mary Kay O'Conner Process Throughout the 1980s, universities were busy teaching process
Safety Center,^^^ long handicapped by lack of a method control methods, developing algorithms, writing papers, present-
for connecting limit violation penalties to process credit ing short courses and analyzing commercial multivariable control
tradeoffs statistically and financially to quantify the value algorithms. The National Petroleum Refiners Association (NPRA)
of safety management, as provided by clifftent. Ayral pro- began separate annual process control conferences attracting
motes critical situation management,^"^ but does not include 300 worldwide. The Instrument Society of America (ISA) had
the power of clifftent risk management to avoid pitfalls to large annual conferences and exhibits. The American Institute of
financial success. Chemical Engineers (AlChE) was active with papers and confer-
Abnormal situations. Some seek the link between process ences. Instrumentation suppliers were busy. Major HPI magazines
operation and abnormal situation reliability management; published articles on developments and accomplishments in every
between process control and safety alarms. Two magazine issue. Articles invariably touted a method, algorithm, controller,
editors see the opportunity that clifftent resolves: Gonzalez model, system, project or product that generated a payout in <12
describes the reliability challenges and opportunities in refin- months. Books were published. Control systems engineering was
ing^°^ and Rosenzweig describes the unsolved opportunity recognized as the technology for profitably mitigating risk, reduc-
for abnormal situation management in the chemical indus- ing uncertainty, improving quality and satisfying ctistomers.
.([^106 Alford struggles with the value of alarm management Suppliers offered bardware, software, services, studies, projects,
using ad hoc alarm ranges'°' that was superseded by clifftent experience, algorithms, models, databases, technology, instru-
in 1996.''^ Brown gives alarm management guidelines'"^ but ments, analyzers, control systems and a host of other components;
lacks a quantitative measure of financial merit. Hill describes all products, on trust, without guarantees or refunds. Commercial
the importance of alarm managements^ but does not quan- risk was not properly aligned with technical know-how. Customer
tify its value. Grosdidier offers a path forward for DCS alarm operating companies accepted all the risk for success without
management,'°^ but does not quantify its financial value. proper knowledge; solution providers took no risk because they
Goble offers a risk-reduction approach to manage the safety really did not know how to measure the value of their offerings.
life cycle,"° recognizing the need to properly connect to Investments were justified on simple, ad hoc, steady-state change
financial value, as already solved.''^ Nimmo's alarm manage- predictions in process performance allowed by smoother control.
ment feature''' lacks any way to measure the financial value (All processes are dynamic; steady-state is a mathematical figment
of his proposals. of human imaginations.) Users pushed project implementers to
Plant maintenance. Many seek to connect process opera- leave to cut costs rather than entice them to stay to sustain profits.
tion to equipment wear and tear; operating credits against Project impiementers were anxious to leave to avoid maintenance
maintenance costs. Clifftent risk tradeoffs abound. FIATECH rather than stay to sustain profits. There were no performance
reported on plant operations and maintenance information standards; confusion reigned; the faith theory prevailed.
needs and problems of financial justification."^ Quality control gained visibility from Deming, Crosby, juran"^
and Peters. ISO 9000 quality procedures were inaugurated. Ford's
Relationships Jobl wasannounced to compete with Japanese car quality. Quality
Successful business partnerships are an HPI hallmark. circles and Six Sigma were promoted. Arthur D. Little pioneered
Engineering and construction (E&C). Valot has pleaded hazardous operations (HAZOP) analysis. IT went commercial,
for more value-oriented owner/contractor relationships with system and business integration was the key. CIM became reen-
properly aligned commercial risk and reward,"^''"'' as pro- gineering, then plantwide controi, then value-added supply chain
vided by SR2 licensing of CIM solutions. Moore writes about management. They are all subsets of process control tbat generate
enterprise resource planning (ERP) maintenance contracting intangible benefits but suffered due to lack of a rigorous method
with questions touching on value-added aligning of risk and for quantifying fmancial value from improved dynamic perfor-
reward."^ Cunic shows the importance of performance-based mance. I.e., reduced variance. Financial verification was impos-
E&C contracting,"^ claiming "key to successful performance sible; faitb theory was victorious.
contracting depends on understanding (should add measur- IT was described in Harvard Business Review and business
ing) the net effect, impact or benefit that a contracted scope schools. Large systems engineering theories and nonlinear opti-
of work will have on business results long term." Transmar mization methods were published. Risk management was pro-
moted. The mantra was to apply good ideas and post-audit for

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value—not to first seek quantifiable value and deploy what is


necessary to capture and sustain that value to maximize expected describes the perennial E&C industry contracting troubles
value profit. With the Internet on the horizon, remote mainte- and calls for performance-based strategic alliances."'
nance was born. CIM. Since CIM performance is easier to measure''^"^^ than
E&C performance, SR2 licensing is much easier for the CIM
Paradigm shift proposed. By 1990, the fragmented prod- solutions business. Cobb has published comments on the
ucts/components process control business, armed with power- demise of IT by accounting firms and suggests the need for
ful technology and skilled implementers, was poised and ready the right value proposition for sustained results.'^^' "^ Hill and
to mature into a performance-based solutions business. A few Walker see Dow collaboration as key to value chain opera-
recognized that the technology slogan and hype bubble could tional excellence,'^" while seeking a rigorous method for mea-
not continue. They realized that failing to follow the scientific suring its financial contribution. Bullemer writes on the role
method (measure results to confirm theories) leads to chaos and of the operator to push processes to their optimal limits and
failure.'^ The question remained: how to measure the financial seeks a rigorous method to benchmark the value of improved
performance of dynamic system improvements to prove the value performance,^^^ as reported in 1996."^-^^ Bullemer endorses
added and properly guide use, investments and maintenance? the Abnormal Situation Management Consortium's highlights
The proposed new mission was to identify, capture and sustain that the plant operator's role needs a new profit paradigm,'^^
significant economic benefits for clients and suppliers from prop- realizing the need for a proper method for measuring finan-
erly integrated CIM solutions.-^**"-^^-''"^" Rather than continue to cial performance. Mohrmann shows how to include the field
offer to install products and projects that payout bandsomely in work force in the automation loop'^^ but needs a way to
six montbs and generate large profits hencefortb without main- quantify the financial value.
tenance and upgrades in the face of overwhelming evidence that
this approach invariably led to disappointment and failure, the Practitioners
new proposal was for much more careful attention at the start to A few control engineers recognize the demise and have
process economics, clear measurement of process plant fmancial published ideas to reinvigorate process control.
performance improvemetit and the business requirements for Quantify benefit. White noted the benefit problem and
assembling technology solutions to make money for those who offered an ad hoc statistical method to value information and
accepted commercial risk. The HPI has had too many six-month decisions,^^"^ '^^ which is handled rigorously by easier means."^'
payoffs by intangible and transitory benefits. '^^ Martin published his understanding of control benefits
Performance measure technology. CIM technology had fatal with an ad hoc statistical approach'^^that does not rigorously
flaws related to lack of a method for measuring the fmancial value incorporate economics.^^' "^ Grosdidier offers seven tips for
of improved dynamic performance, or reduced variance, until the APC project success and a value proposition for oil account-
concept of clifftent was published in a seminal 1996 paper''- and ing, claiming $1.4 million/yr without proof'^''^'^^ but excludes
subsequently extended.'^•^"'^^- '^^~^° It provided the long-sought financial performance and misstates the source of value of
method for constructing profit meters for each control variable APC (APC does not push constraints, it only allows others, like
(CV) and key performance indicator (KPI). Control engineers clifftent, to attempt it). Grosdidier did utilize and reference
have worked excessively on reducing variance without being clifftent work to analyze blend giveaway economics.'^'
able to quantify the value of sucb improvement. They wrongly Measure pleas. Fiske frequently promotes the connec-
assumed the limit and target mean for CVs. and KPh are properly tion between IT and operations and shows process variability
given, or optimal, when they never are, and when the value of causes underperformance'^°"'^^ without realizing his problem
setting them optimally is easy'*"' ^^- '*'^ and just as rewarding as is solvable."' "^ Woll also promotes proper organizational
variance reduction by all CIM, i.e., $l/bbl crude refmed. roles for performance'^^' 134-136 without a proper measure to
They failed to model the steady-state profit function for each keep financial score. Mowat, Woertz and O'Malley confirm
CV/KPI, which is invariably shaped like a tent, defining the ben- the need to quantify the intangible benefits (soft stuff) to
efit tradeoff, often with a discontinuous cliff at the most profitable create value.^^ Beautyman assesses profitability of real-time
limit point. They failed to appreciate all process performance optimization (RTO) with pre- and post-audits'^^ but does
improvement is embodied in modifying the shape and position not provide the rigorous financial performance measure to
of the distribution function of CVs and KPh. That is all one can quantify profit creation. Pandit's profitability of optimization
do mechanically to change process performance (other than trivial letter in response to Beautyman'^^ hints at a weakness of RTO
cost reductions that do not impair process performance). Proper that emphasizes excessive model rigor for behavior inside the
connection of the distribution function to the steady-state profit constraints where the plant should not operate, but unrealistic
tradeoff tent function for eacb CV7A7V provides the rigorous way modeling at the constraints where it should operate, while
to measure financial benefit from variance reduction and resetting improperly setting the constraints—which was revealed in
targets and limits. This is rigorous risk management for maximum 1996.^^ Pitt described the need for measuring financial value
expected profit rate, 'fhe consequences for modeling process for refinery supply chain management and human operators
profit are profound and illustrate the disconnects that permeated yygll 139,140 powley described the need and requirements for
the CIM business for 40 years since 1965. financial performance measure for MPCand /CP/s very well.'^'
People wrongly assume reduced variance alone has no quan- Lang describes the use of process KPIs but does not relate
tifiable financial value. In fact, the 1996 discovery**-^' ^"^ showed them properly to financial value.'''^ Canney tries to explain
it was equivalent to simple conventional claims for moving tbe the dearth of benefit from 6,000 APC installations by claim-
new mean closer to a spec or limit by some arbitrary amount after

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BOMUSREPORT DEMISE/RISE OF PROCESS CONTROL

v;iri;)ncc was reduced. The 1996 discovery of how to integrate the


ing 15 statements are myths, attempting to refute them and CVdistribution to its associated profit function (shaped Hke a
summarizing with "truth."^"'^ Actually only seven were real chfftenr) to give the profit hill vs. CVmean also gave the optimum
myths; Canney refutes six. His three claimed truths illustrate setpoint move size and corre.sponding profit gain, providing addi-
the reason for the demise. tional value at trivial cost. It proved the proper distance between
limit and mean is never six standard deviations or Six Sigma.
Suppliers It showed how to set limits and targets properly to mitigate
Results. Many solution providers promote performance risk. It transformed arbitrary limits for statistical process control
and results but cannot license based on their rightful per- and alarm management into economic optimum limits. It showed
centage because they cannot measure their solution financial the weakness of rigorous online optimizers that were merely con-
value-added properly. One database software supplier has straint corner pickers because they had no model of the physical
an IT monitor for netvyork performance and enterprise per- and financial consequences of breaking dependent CVconstraints.
formance management'"^'"^ but investigation revealed it It showed that the benefit of process control cannot be properly
does not relate physical statistics to profit.''^'''^ A DCS vendor determined without the economic sensitivities and discontinui-
claims its "solution" or product and its KPI manager improve ties associated with each CKembodied in its clifftent function, it
plant profitability, promising quick, no-risk payoffs,'"'^"'''^ showed the financial value of better-performing solution compo-
without any rigorous method for proving such claims. A nents: control valves, analyzers, instruments, models, algorithms,
large system supplier recognizes the performance oppor- tuners, databases, computers and maintainers.
tunity with its "Prove It" ads '^0-152 ^^^ rnight gain with Once engineers and managers certify the five economic sen-
a rigorous financial measure and solutions performance sitivity parameters, clifftent gives operators a new paradigm for
licensing. (If they could really prove It with an unambiguous, running plants by optimizing risk management: forecast CV/KP!
rigorous financial measure of their solutions' performance, near-term variance. That's it, the basic human input.
they would undoubtedly offer it privately to selected clients Process control benefits can be double traditional claims, but
rather than publicly advertising that their customers want they must be visible, tangible, current, accurate and accepted.
them to prove it.) CliiiFtent connects the statistical properties of dynamic systems to
Confusion. Another DCS vendor mixes solutions and prod- financial value, like string theory connects quantum mechanics
uct components,^^^"''^^ with no measure of financial merit. to relativity,-'^ but with more immediate benefu to people.^"' ^^ It
An experienced control engineer offers fast operator advi- optimizes tradeoffs under uncertainty, as basic as setting the speed
sor software, but has no method to quantify its financial of your car near the posted limit. It revealed the need to model
value.^^^ A consulting firm often advertises Optimum Plant the penalty for violating limits to be as important as modeling the
Performance.^^^' ^^^ A supplier offers free public literature on credit for approaching them. Many have sought this mathematical
performance optimization benefits rather than private profit modeling method to reconcile and optimize ciifftenc tradeoffs."'^'
sharing sustained solutlons.'^° A large system vendor offers a ^'^ The only significant performance claim to quantify financial
results-driven automation World Conference & Exhibition'^' benefit for control/IT is CK/AP/variance reduction.
without a rigorous method for measuring the financial value Koppel's elegant, comprehensive ISBEN approach to quantity
of improved dynamic solutions. It also offers software to run information system benefits from all associated business activities
plants smarter'^^ without quantifying financial gain. is particularly noteworthy.'''' Koppel bas long advocated greater
A compressor controls company has promoted the benefit attention to proper performance metrics for control and IT sys-
of compressor controls with proper attention to limit and tar- tems."' '^
get setting but lacks a rigorous way to quantify the important Lack of proper performance measurement cannot be over-
financial value.^^^' '^'' A software firm promotes MPC control- emphasized. The situation is like 100 million football fans ready to
ler performance'^'' '^^- '^^ but does not claim rigorous financial view the Super Bowl kickoff when one team claims a touchdown
value. A large CIM solutions, products and control provider is worth five points and tbe other says six. As tbey argue back and
offers fast polymer-grade changes for six-month paybacks'^^ forth, the fans say they don't particularly care whether it's five or
with no method to properly quantify their financial value. six, but they really care tbat the opponents agree on one valtte and
Further, they broadly claim increasing ROI rather than EVA for agree the team with the most points fairly scored after 60 minutes
customers'^ without offering a rigorous way to quantify and is the game winner. The Olympics are viable when all competitors
sustain benefits, profits or ROI, when its technology is pow- and viewers understand and agree on the performance scoring
erful enough to allow it to offer a risk-free, zero-cost annu- measures. Without that, there is no reason to participate.
ity and infinite (hence, meaningless) ROI to their customers. As long as CIM practitioners fail to adopt the proper financial
(Getting the scorekeeping right is important.) Another report performance measure standard to maximize expected value of net
describes the widespread confusion about ROI as the proper present value (NPV) profit over a long term, say 30 years, fairly
performance measure for e-business.'^^ discounted, they remain unable to prove the value of their work
Strategic offers. The major IT platform vendor has long and solutions to properly serve their customers and themselves.
struggled with measuring the financial value of its supply As long as process control publications continue to describe some
chain software platform.'"'^' '^' An expanded control solution method or tool and claim <12 month payout henceforth and
that boosts production performance is actually two software forever, the CIM demise will continue henceforth and forever.
productsthat do noble things that are not financially quanti- Financial analysis of CIM solutions should be like a 30-year home
fied."^' '^^ An HPI operating company solutions provider offers mortgage or a lifetime annuity: economic value added (EVA) with
realization probabilities.

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Products vs. solutions. Process control offers confuse tbe


normal commercial distinction between produces and solutions; services and technology to improve margins by squeezing to
tbe difterencc is profound. Know your customer; know your offer. make every last drop count'^'' without a sound method for
Align commercial risk witb know-bow. Process control and IT measuring and proving financial value. A chemical operating
businesses are infected with a fatal disease of confused mixing of company global service provider offers simulation tools, per-
products and solutions businesses. formance monitoring, manufacturing economics and supply
Products, tools, components, software, algorithms, models, chain optimization^^^ witbout a rigorous financial perfor-
databases, platforms, valves, instruments, projects and services mance method for sustaining solutions. Another cbemical
sbould only be sold to customers seeking product components operating company offers dynamic benchmarking of plant
(tbat tbey presumably will integrate into sustainable profit-gen- performance in physical terms'^^ without standardizing on a
erating solutions). Products are sold on features, capabilities and rigorous metbod for financial value.
cost; often competiti\ely bid for low price. The customer takes A tank terminal automation firm offers flexible solutions
the risk of generating value from them because he or sbe has the to optimize operation^'^ without a way to measure financial
know-how to do so. Products are sold in grocery stores, lumber value. A controller tuning expert firm promotes the impor-
yards, pharmacies, bookstores and Websites. tance of proper loop tuning^^^' '^^ but suffers from inability
CIM installation solutions that generate sustaining value- to connect reduced variance to money.^^-^^ A major computer
added are sold to customers seeking solutions. Solutions combine firm recommends "the HPI harvest a return on IT investments
hardware, software, technology and appropriate people to gener- by managing risk in terms of individual elements of risk, and
ate sustainable process profits for the plant customer and supplier. the combined business and operating risk to strike the best
Solutions are sustained by performance, results and value added; balance between optimization and predictable production
never competitively bid for low cost. The supplier takes the risk of products to achieve refining excellence,"^^'^ wbich is easily
of generating value because it has che know-how. Solutions are done with clifftent on every C\/and KPi.''^''^^
offered by restaurants, realtors, physicians and colleges. An accounting method is offered to define a plant's true
Never sell products to customers seekmg solutions; its a com- profit potential, generating 20% to 40% profit increases, ^^^
mon disconnect. Never sell solutions to customers seeking prod- but it is not clear if process behavior and statistical risk man-
ucts; it's a common disconnect. Never buy products based on agement of dynamic performance are covered. (Accounting
sustained financial performance; it's a disconnect. Never buy is designed to measure profit after-the-fact, not forecast,
solutions on low-cost competitive bidding; it's a disconnect. manage and optimize it in real time.) ISA has offered a train-
(People never select a computer, college, home, suit, car, physi- ing course that includes justifying automation projects'^^ that
cian, attorney, vacation, restaurant or much of anything on low- lacks a proper method for measuring financial performance
cost competitive bid. They buy on value; cost is only one of many of automation and control systems.
considerations.) Poor benefits. Since the 1970s, many authors reported
Operating company customers want CIM solutions that gen- interesting technical successes witb weak financial gains.
erate maximum expected NPV profit streams sustained over long Recent articles continue the practice. Rotava reports an inter-
periods, like 30 years. They do not want maximum benefits that esting application of MVC and RTO (commercialized in the
may be costly, minimum costs that may have no benefit, six-month early 1980s) on a South American crude unit with no discus-
payouts that are not sustained. They do not want to risk capital or sion on value.'^^ McFarlane describes improved crude unit
spend money. They really don't care how the solution works, just optimization^^^ with benefits from fast project completion
how much money it makes. They want clear, large, sustained, easy, in six months but no proven, quantified process economic
legal, ethical, no-risk profits. They want large variable annuities, for benefits. Bonavita offers a step-by-step approach to APC^^''
free. CIM has offered this potential since 1990. that neglects proper scorekeeping at the outset and sustained
Licensing performance solutions. The CIM business failed financial performance thereafter. Chang offers a well-known
to mature to a sound solutions business, where experienced sup- graphic display wheel to capture process control benefits but
pliers knew enough about the financial value of their numerous cannot quantify the value of bis contribution.'^^ Barsamian
installations integrated into operating plants and how to identify, has promoted inline blending analyzers and control witbout
capture and sustain their value. Had they done so in 1990 they any way to quantify their financial merit.'^^ Sanz & Papon
would have evolved naturally to SR2 licensing arrangements that tout traditional MVC to a batch reactor but cannot determine
endure. Their sales costs would have evaporated. -^' its value, relying on faith theory.^^^ Mandal does a nice job
Since profit-oriented CIM investments are so attractive, sup- describing improved desalter and level control but cannot
pliers could have easily offered free net revenue streams or free quantify their value.'^^' ^^^ Galante describes a molecule man-
variable annuities from Sl/bbl profits with expected A'PK(30 agement technique to improve real-time, process unit optimi-
yr, 8%) ^ S875 million for a 200-Mbpd refinery. This provides zation tools with no method for quantifying Its value.^^° Kelly
comprehensive solution suppliers about 25% of that amount.''''^'* has published extensively on IT techniques like reconciliation,
Experience established the existence of an optimum benefit split scheduling and models without a sound method for quantify-
between the operating ccompany customer and its CIM solution ing financial merit.'^'"'^^
supplier to sustain performance over say 30 years to realize such Moore relates process control to environmental impacts
value.'*^' •*•* This explains why ROT, touted as the performance and H2 management but cannot quantify tbe financial
measure by one supplier for years,"'^ becomes meaningless; in\'cst- value.''^^' '^^ Sivaraman recognizes the critical nature of proper
ment is zero, ROI is infinite. It's the size of the zero-risk profit control limit setting for loss control but his statistical method
stream EVA that matters. No-risk SR2 offers are most appropriate

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for tbe doubting, skeptical, risk-adverse, inexperienced operat-


does not connect to economics.'^^ A control systems supplier ing companies. Sharing a percentage, a piece of the action, is an
offers polymer process advanced control and optimization old, proven way to higher profitability for both parties. It affects
after acquiring an advanced control company and its powerful behavior in meaningful ways. Think about the Super Bow! and
controller, but has no way to determine its financial value.'^^ Olympic games. Refinery control engineers who add value by
Wilson reports statistical control of an FCC witb classic statis- specifying clifftent input factors should earn 2% to 3%. Supplier
tical quality control (SQC) limits because he does not bave a employees shouid earn 3 % to 4%. Researchers should earn 3 % .
rigorous way to convert dynamic improvement into money.^"*^ SR2 licensing eliminates the need for the solution-supplier
Matbur features superfractionator MVC without plant tests sales staff. Rather, supplier executives manage and expand each
and significant CV variance reduction^"^ but is not able to client SR2 relationship as his or her profit center, integrating and
convert his accomplishment properly into dollar profit. Martin deploying appropriate products to sustain the engineered solution.
offers a new control scheme for an SRU, reducing standard Advertising and publications are useful for product offers, not
deviation by five and sulfur emissions approximately 250 mt/ sustaining CIM solutions.
y,^°-^ describing the air/gas clifftent tradeoff without properly SR2 licensing eliminates the need for operating company tech-
determining the value of standard deviation reduction or nology-product appraisal staff. Rather, operating company execu-
optimally setting the setpoint.''^' ^^ tives focas on economic factors like margins, differential values and
Sharpe justifies tools and services on cost reduction^°^ consequences for breaking limits as input to clifftent for optimizing
rather than rigorous process performance improvement, which KPh, They forecast risk (in terms of variance based on historic vari-
is an order of magnitude larger but impossible to prove if you ance) to optimize sensitive tradeoffs, operate plants as profit centers
don't know bow. Cheng offers another algorithm for distilla- with CIM solutions and are delighted to share meaningful benefits
tion control^"'' without showing any superior profit genera- to their risk-taking solution providers because they understand
tion. Sayyar-Rodsari reports on MPC for nonlinear processes^^^ sustaining success depends on fair, mutual profit and risk sharing.
without showing any superior profit generation. Desbpande No interest. Performance measurement and solution licensing
claims turbocharging a constrained model predictive control- know-how was offered to all HPI CIM solution providers and
ler with fuzzy logic allows application to nonlinear systems,^"^ major operating companies—privately and publicly—-during
but cannot quantify the financial merit of his idea. the early 1990s,^'*"^'''^'*"^" but the obsolete faith theory products
Novak writes on SCADA's support of business processes features business paradigm prevailed.
and supply chains,^''^ without quantifying financial value.
Kern implements expert online operator advisors,^"^ without S i t u a t i o n t o d a y . What happened since 1990? What is the
quantifying its profit generation. Valleur describes optimiz- situation in 2006? What's next?
ing refinery scheduling comprehensively but omits any mea- Academia no longer teaches, researches or publishes chemical
sure of financial performance; benefits are listed as words.^°^ process control or CIM. Process control and instrument engineers
Gilbert writes on implementing an environmental, health at operating companies and suppliers have left their profession.^''
and safety management information system^"^ with ten tips, Association conferences like NPRA, ISA, AIChE and JACC have
none of which include a measure of financial performance. declined dramatically in content, attendance and interest. The
Karagoz claims a breakthrough in polymer control improves NPRA plant automation conference declined from over 300
the business cycle^" but does not rigorously convert statisti- attendees In the 1980s to fewer than 100 in September 2004
cal improvement to profit. Hall extols the importance of MVC and was combined with process engineering In September 2005.
plant testing and that recognized big money comes from Literature has declmed. Few books are written. Magazme articles
pushing constraints properly,^'^ but he cannot quantify the are repetitious and unconvincing, still superficially touting meth-
value of his proposals. ods with <12 month payouts. Quillin wrote about some "critical
Singh describes business-to-manufacturing integration issues" for CIM in the H P r " but repeated old hoopla and cannot
using XML throughout the supply chain,^'^ which can col- prove the magnitude of any financial value from his assertions.
lect data input to KPii.^^ Moore offers several ways to cap- Suppliers are offering the same familiar tools and products
ture value from supply chain management and ERP,^'''' ^'^ while creating insufficient profit for their shareholders and facing
which require a rigorous method to determine financial declining revenues, layoffs and consolidations in shrinking mar-
performance.''^' ^^ Catalyst monitoring software^'^ would kets. They struggle with ill-conceived mergers and acquisitions.
be strengthened if it incorporated a rigorous method for Suppliers are not very profitable. One stock with no dividends
quantifying tbe financial value of dynamic performance and should have grown from $40/share in July 1997 to 40(1.3)**8 =
optimizing tradeoffs.'*^'^^ S326/share by June 2005, yet it has languished below $ 10/share
Sim claims optimizing asset utilization through process since July 2002 with weak competition; a massive destruction of
engineering improves ROC up to 4%^'^ with no way to prove shareholder wealth. (Analysts attribute this to the sum of prof-
it without a rigorous metbod relating risk abatement to its over a decade <0.) Most CIM suppliers have failed to create
^' ^^ Sim also reports on advanced cubic equations of shareholder wealth. Recently, a Western European oil movements
but offers no way for his customers to determine their CIM specialist since 1980 disclosed it lost a contract for a Viet-
worth or value over his price; clifftent tradeoffs to optimize namese refinery to a new group in Eastern Europe which was
limits and setpoints require process models and can quantify under-bidding engineering services at S25/hour. This is a natural
comparisons with less rigorous approaches to guide when consequence of failure to offer assured performance with no risk.
model fidelity is sufficient.''^-''^ HP At a time when blending for boutique RFG and low-sulfur diesel
(LSD) provides large incentive to get it right, this is a tragedy.

75 MARCH 2006 HYDR0CAR80N PROCESSING


DEMISE/RISE OF PROCESS CONTROL

Suppliers of alarm management, abnormal situation manage- Process control and CIM businesses are in a long decline,
ment, HAZOP analysis and safety .shutdown still struggle with failing to realize promised benefits, because they do not properly
ftnanciai performance measurement of their systems because measure the financial value of dynamic performance of installed
they do not connect to process operation control. Plants risk solutions, commercially confuse products and solutions, and
unplanned atmospheric emissions and catastrophes like BP's Texas remain unable to pursue performance-based licensing of sustain-
City isomerization unit raffinate splitter explosion in 2005.^'^ ing solutions.
Operating companies continue to complain about process With so mucb time lost, so many mistakes made, such wide-
control performance—the inability to see tangible benefits. spread confusion, so many competent and experienced con-
They are disappointed; they have lost interest. Control engineers trol engineers retired or gone, so few newcomers and so much
blame management for lack of vision and budgets; management damaged infrastructure, the demise of process control and CIM
still says show me the money first. Operating limit violations appears destined to continue. Is anybody delighted?
cause unplanned damage like Environmental Protection Agency HPI profit increase potential exceeding $2-S3/bbl crude refined
(EPA) settlements'^": Valero $705 million, Motiva $550 mil- X 85 million bptl worldwide will remain unrealized until the CIM
lion and ConocoPhillips $525 million. Company CEO William demise is reversed. The main lesson is never invest or embark on an
Wise reported El Paso lost a suit charging they withheld natural automation activity without a rigorous measure of financial value
gas pipeline capacity from California, raising prices, because from improved dynamic system performance. Never. Don't gamble
"EPNG did not consistently operate at or near its maximum on a game that does not have a clear method of scoring either. Don't
allowable operating pressure on a continuous basis."'^'"'^'-^ Had neglect tbe scientific method; it works for business too. Ignoring
EPNG understood and deployed the principles of clifftent,'*^ tbese is a recipe for failure, perhaps disaster. HP
they would bave a mathematically sound legal defense. Tbe US
Supreme Court ruled that economic factors could not be used by
the EPA in setting air quality standards because it "could simply LITERATURE CITED
Ceaglske, N. H., Automatic Procesi Control, John Wiley, 1956.
complicate the procedure witbout improving it."^'-''*"*^^ Justices
Smith, O. J. M., Feedback Control Systems, McGraw-Hill, 1958.
Scalia, Ginsberg, Breyer, Souter and Rehnquist were seeking a Caidwdl, W. I., G. A. Coon, L. M. Zoss, Frequency Response for I'roceis Control,
sound basis for economically optimizing limits and targets, but McGraw-Hill, 1959.
the American Chemistty Council, EPA and Solicitor General wete Chang, S. S. L., Synthesis of Optimum Control Systems, McGraw-Hill, 1961.
Bellman, R., Adaptive Control Processes. Dynamic Programming. Princeton Press,
unaware that clifftent provided a simple mathematical method to 1961. ^ , ,
do it. The relief valve sizing standards^^ do not properly optimize Lonnnued
risk tradeoffs.
Refmery and petrochemical margins reached historic higbs
in August 2005; a golden age for HPI profits has arrived.*"^ ARC
forecast the process industries automation market in 2003 to
grow 4.7% to $58 billion and fieldbus adoption was growing

President G.W Bush and the Saudi Oil Minister have publicly
agreed fuel availability in the US will be limited by oil refinery
capacity ratber than producing field capacity. If so, refmery mar-
gins will grow. Tben proper determination and setting of equip-
ment limits and targets as well as product quality limits and targets
with clifFtent becomes the main operating challenge for produc-
tion and profit. The CIM benefit potential in 1990 of$I-$2/bb!
crude has undoubtedly increased to >S3/bbl by July 2005. (See
the literature review sidebars for insigbts into the reasons for the
demise of tbe automation business and the confusion.)

Outlook. While control and modeling technology is sound,


instruments work and computers are fast and cheap, the wbole
computer application to manufacturing field, CIM, suffers from
failure to adopt a definitive, comprehensive, rigorous, standard
method"^^ for measuring tbe financial value of dynamic systems
performance.
Once solution suppliers and tbeir customers agree on that,
solutions can be offered based on proper SR2 profit sharing.'*^'*'*
In most cases, tbe cost of generating compelling value is so low
tbe supplier can offer selected plant clients a variable annuity,
for free. Once clifftent optimizing modules and CV/AT*/profit
meters are standard components in commercial databases, every
CVand AV/setpoint will be optimized based on forecast vari-
ance, and the financial consequences of variance changes will
be quantified.
Select 86 at wwnw.HydrocarbonProcessing.com/RS
77
BOMUSREPORT DEMISE/RISE OF PROCESS CONTROL

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78 MARCH 2006 HYDROCARBON PROCESSING


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Processing. Nov05. pp, 17-18, Transmar offer, "Strategies needed to rehuiid weakened ECC industry."
King, M. J., "How to lose money with infereniial properties," Hydrocarbon Hydrocarbon Processing, JulO3, p, 19-21.
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Part 1, Hydrocarbon Processing, SepO2; Pan 2, Hydrocarbon Processing, Oct02. pp. Progress. MayO4, pp, 42-46,
75-83; Part 3, Hydrocarbon Processing, DecO2, pp. 71-75, ASM Consortium offer, "Process plant operator's role needs new paradigm,"
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Hydrocarbon Processing. FebO3, pl9, plants," Hydrocarbon Processing, JunO5, pp. 83-85,
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years," Hydrocarbon Processing. MarO5, pp, 65-71. control .systems?," Hydrocarbon Processing, JunO5, pp. 55-58.
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Processing, Oct02. pp. 37-40, Processing. AprO3, pp, 29-30,
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05. p. 3. DecO2, p. 89.
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Brown, N.. "Effective alarm management." Hydrocarbon IVocessing. JanO4, pp. Hydrocarbon Processing. MayO5- p, 98.
65-71- Honeywell ad, "Honeywell automation quickly pays for itself," Hydrocarbon
Grosdidier, P et al,. "A path forward for DCS alarm management," Hydrocarbon I'rocessing, SepO3, p, 133; Hydrocarbon Processing, AugO3, pp, 2, 30-31,
Processing, Nov03, pp, 59-64, Honeywell offer, "KPI Manager." Gulf Publishing Company Software Reference,
Goble, W., "Using the safety life cycle," Hydrocarbon Processing, JulO3, p. 96. Fall 03, p, 10.
Nimmo, 1.. "Alatm Management." Chemical Engineering Progress. Nov02, pp. Emerson ad. "Prove it," Hydrocarbon Processing. Oct04, p. 48 and Hydrocarbon
30-38, I'rocessing, SepO3, p, 21.
EL\TECH. "Ownets seek better data delivery to operations functions." Emetson offer, "Model predictive control software application," Hydrocarbon
Hydrocarbon Processing, MayO4. p. 27, I'rocessing, Oct03, p, 105,
Valot, D., "Owner/contractor relationships," Hydrocarbon Processing. DecO4, p, Emerson ad, "?tove it," Petroleum Technology Quarterly. Summer 04, p.
7. 68.
Valot, D., "ECCs, owners exchange views at annual meeting," Hydrocarbon Jackson, K, M., "lnven,sys solution components," Hydrocarbon Processing, JanO5,
Processing. necO2, pp, 19-21,
Moote, J., "Negotiating FRP Maintenance Contracts," Chemical Engineering SimSci-Esscor offer. "Improved advanced process control solution, " Hydrocarbon
Prop-ess, MayO4, p. 16. Processing. janO5. p, 88,
Gunic, B., "Performance-based contracting," Hydrocarbon Processing, DecO3, Invensys ad. "ArchestrA technology." Hydrocarbon Processing, SepO3, pp. 8-9,
pp. 43-46, Ranganathan, S., A. Offetman, J. Gijntie, R, McFarlane, V, Lough, "Improved

HYDROCARBON PROCESSING MARCH 2006 79


BOMUSREPORT DEMISE/RISE OF PROCESS CONTROL

optimization of a refitiery crude unit." Petroleum Technology Quarterly, Spring Moore, I., "Reducing COi emissiotis." Petroleum Technology Quarterly, Q2 05,
2003, pp. 159-67. pp. 97-103.
Cutler Tech ad, "Operator Advisor." Hydrocarbon Processing, AprO5, p. 67. Moore, I. et al., "Hydrogen optimization at minimal investment." Petroleum
KBC ad, "Opcimum Plane Performance,' Hydrocarbon Processing, JunO3, p. 8. Technology Quarterly. Spring 03, pp. 83-90.
HP/KBC po«ei, "2005 Refining Advanced Process Control—Profit. Ability," Sivaraman, S. et al., "Determining system capabihtj' tor loss control and custody
Hydrocarbon Processing. JanO5. transfers," Hydrocarbon Processing, MarO5. pp. 45-51,
Performance Plus offer, "Perfortnance optimization services," Hydrocarbon PAS/DOT offet, "Polymer process advanced control and optimization,"
Processing. MarO5, p. 85. Hydrocarbon Processing, JanO5, p. 28.
ABB ad, "Results-Driven Automatioji," Hydrocarbon Processing, FebO5, p. 71. Wilson, J. W., "Statistical process control in FCC operations," Petroleum
ABB offer, "Data Acquisition and Analysis Software," Chemical Engineering Technology Quarterly, Summer 04. pp. 69-73.
Progress, FebO3, p. 53. Marhur, U., R. J. Gonroy, "Successful multivariable conttol without plant tests."
CCC offer, "Control system to increase olefins production," Hydrocarbon Hydrocarbon I'rocessing, JunO3, pp. 55-65.
Processing, DecO4. p. 25. Martin, R. G., et al., "New control scheme improves SRU control," Hydrocarbon
CCC ads, "Turbomachinety Control Prnfit Enhancement," Hydrocarbon Processing, SepO3, pp. 101-106.
Processing, AugO3, pp. 29, 31. Sharpe. P.. and J. Rezabek, "Embedded APC tools reduce costs of the technol-
Marrikon offer. "Operarional excellence in controllet perfottnance," Hydrocarbon ogy." Hydrocarbon Processing. Oct04, pp. 53-56.
Processing. Apifl4, p. 32. Cheng, G. S., "Model-free adaptive technology improves distillation column
Matrikon offer, "Software solution purcha.sed," Hydrocarbon Processing. AugO3, chain control," Hydrocarbon I'rocessing. Oct04, pp. 57-62.
p. 91. Say)'ar-Rodsari, B. et al.. "Model predictive control for nonlinear processes with
AspenTech offer. "Resin Producers' New Ally in Fast Grade-Change Transitions," varying dynamics," Hydrocarbon Processing, Oct04, pp. 63-69.
Chemical Engineering Progress, AugO3, p. 10. Deshpande, P. B. et aL, "Control and Optimize Nonlinear Systems," Chemical
AspenTech ad, "ROI," Hydrocarbon Processing, AptO4, p. 55 dnd MatO4, p. Engineering Progress, FehO3, pp. 63-73.
20. Novak, R.. "SCADA's new capabilities support business processes and supply
Aberdeen Gtoup Ad Section. "Growing Technology ROI," Fortune, 24Nov03, chaiti." Hydrocarbon Processing, AugO4, pp. 17-18.
pp. S M 8 . Kern, A. G., "Impletnentitig expert online operator advisors," Hydrocarbon
SAP ad, "If we can't afford the solution, then it's not a solution," Fortune, Processing, JunO4, pp. 43-45.
24Nov03, p, S7, Valleur, M and J. L. Grue, "Optimize short-term refinery scheduling,"
SAP offer, "Adaptive supply chain network solution," Hydrocarbon Processing. Hydrocarbon Processing. JimO4, pp. 46-49.
AiigO3, p. 97. Gilbert, J. B., "Implementing an EHS Management Infottnation System,"
Pavilion offet, "Expanded control solution boosts production performance.' Chemical Engineering Progress, MayO4, pp. 28-32.
Hydrocarbon Processing, JanO4, p. 83. Karagoz, O., Versteeg, ]., Metcer, M., P. Turner, "Advanced control methods
Pavilion oiifer, "Pavilion Technologies Acquires Business Threads," Chemical improve polymers' business cycle," Hydrocarbon Processing, AprO4, pp. 45-49.
Engineering Progress. HebO3, p. 23. Hall. J., "Benefits of platit testing for multivariable controllers," Hydrocarbon
Shell Global Solutions ad, "Squeeze. Make ever>' drop count," Petroleum Processing, MarO4, p. 92.
Technology Quarterly, Autumn 03, p, 87. Singh. S., "Business-to-manutacturing integration using XML," Hydrocarbon
Bayer offer, "New company transforms HPI ideas itito reality," Hydrocarbon Processing, MarO3, pp. 62-65,
Processing, JulO3, p. 29, Mootc, |., A. Gonzalez, "The Supply Chain Cornerstone," Chemicai Engineering
DuPont offer, "Dynamic benchmarking of plant performance," Hydrocarbon Progress, Nov02, p. 2').
Processing, MarO3. pp. 28-29. Moore, J., "The Big Squeeze is on in ERI'," Chemical Engineering IVogress, SepO2,
Enraf ad, "Terminal Auromation solutions," Petroleum Technology Quarterly, p. 30.
Autumn 03. p. 88. GRI/Pavilion offer, "Real-time catalyst monitoring software—CATSCAN,"
ExperTune offer. "Process control constiltaiit accessible iti a box," Hydrocarbon Hydrocarbon I'rocessing. DecO2, p, 27.
Processing, DecO3, p. 25. Sim, W., et aL. "Engineering to Business: Optimizing A'iset Utilization Through
ExpetTune offet, "Loop Perfottnance Monitor Mines Knowledge From [iata Process Engineering," Chemical Engineering Progress, SepO2, pp. 54-63 and
Historians," Chemical Engineering Progress, JunO3, p- 32. Roberts, W. T., letters. Chemical Engineering Progress, FebO3, p. 8.
IBM offer, "Refiners: Manage key funaiotis for success," Hydrocarbon Processing, Sim, W. D., C. H. Twu, V. Tassone, "Getting a Handle on Advanced Cubic
AiigOi, p. 17. Eqtiarions of State." Chemical Engineering I'rogress, Nov02. pp. 58-65.
Hagen offer, "Accounting approach defines plant's true profit potential," Latour, P R., "Ptocess Design Decisions Related to Process Control," Papet 60b.
Hydrocarbon Processing, Oct02. p. 31. 74th Narional Meeting. AIChF, New Orleans, lA. March 1973.
y^jj ^y course, "Planning, Jtistitymg, and Executing Automation and Control Latour, R R., "Process Computer as a Tool for Golden Eagle Refinery
Ptojects," ISA Training Courses, Houston. 22Oct03. Etiergy Conservation." 68th Annual Meeting, AIChE, Los Angeles, California,
Rotava, O., and A. C. Zanin, "Multivariable control and real-time optimiza- Novembet 18. 1975 and Chemical Engineering Progress, V72. n4, April 1976, pp.
tion-—an industrial practical view," Hydrocarbon Processing. JunO5. pp. 61-71. 76-81.
Bonavita, N.. et al., "A step-by-step approach to advanced process control," Latour, P. R., "Ptocess Computer Monitors, Reduces Energy Use." Oil & Gas
Hydrocarbon Processing. Oct03, pp. 69-73. joumal, Fehruary 23. 1976. p, 92.
Chang. E., "Pattern recognition displays capture advanced process control ben- Van Horn, L D. and Latour, P. R., "Crude Distillation Computer Cotitrol
efits," Hydrocarbon Processing, JiitiO5, pp. 93-96. Experience," ISA-76 Conference, Houston, TX. October 12, 1976,
Barsamian. A., "Consider near infrared methods fot inline blending,"//yfyrofur/'o^ Van Horn, L. D. and latour, P. R., "Computer Control of a Crude Still,"
Processing, JunO5, pp. 97-100. Instrumentation Technology, V 2 3 . n i l . N o v e m b e r 1 9 7 6 , p . ^i.
Sanz, A, J. Papon, et al., "Model-based predictive control increase batch reactor Latour. P R.. "The Hidden Benefits from Better Process Control," ISA-76
production." Hydrocarbon Processing. MayO5, pp. 61-65. Conference, Houston, TX, October 13. 1976 and Cleveland ISA 3rd Annual
Mandal, K. K,, "Improve desalter control." Hydrocarbon Processing. AprO5. pp. Conference and Exhibit, Ohio, May I6, 1977.
77-81,
Mandal, K. K., "New level control techniques," Hydrocarbon Processing. Oct04,
pp. 71-74; "Optimi2c surge vessel control," Hydrocarbon Processing. MarO3, p.
41.
Galante, E. G.. "F'xx an Mobil's molecule-management," Hydrocarbon Processing. P i e r r e R. L a t o u r is an independent consultant specializing in
AprO5, p. 17. measuring financial performance of HPi information and process
Kelly, J. D.. "Improve accuracy of tracing production qualities using successive control systems {Clifftent) to support shared risk-shared reward
reconciliation." Hydrocarbon Processing. AprO5, pp. 65-72. (SR2) licensing of profit-sustaining solutions. He has been a vice
Kelly, J. D.. "Improve yield accounting by including density measutements president of engineering, marketing, business development, proj-
explicitly," Hydrocarbon Processing, FebO5. pp. 93-95. ect implementation and consulting at Aspen Technology, Dynamic Matrix Control
Kelly, J. D., "Crude oil blend scheduling optimization: an application with Corp, Setpoint and Biles & Associates. Dr Latour cofounded the last two firms and
mtiltimillion dollar benefits" Part I, Hydrocarbon Processing. JunO3. pp. 47-53; held senior positions at Shell Oil and DuPont. He fias worked on contracts for 50 HPI
Part 2, Hydrocarbon Processing, Ju!03. pp. 72-7'X companies worldwide on most processes like ACU, FCC and olefins. Dr. Latour holds
Keliy, J, D.. "Modeling Production-Chain Information.' Chemical Engineering a BS degree, ChE from Virginia Tech and a PhD degree, ChE from Purdue. He served
Progress. FebO5, pp. 28-31. as Captain U.S. Army, NASA, Houston. Dr. Latour has authored 60 publications. He
Kelly, J. D., "Formulating Production Planning Models," Chemical Engineering was cimfuels editor for FUEL and is a registered PE in Texas and California, He resides
I'rogress. janO4. pp, 43-50. in Houston, Texas. E-mail: clifftent@hotmaiLcom.

SO MARCH 2006 HYDROCARBON PROCESSING

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