Introduction to Chemical Manufacturing

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• Introduction to Chemical Manufacturing
• CM4120
• Chemical Plant Operations
• D. Caspary
• January, 2009

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CM4120Chemical Plant Operations LabIntroduction
to Chemical Manufacturing

• Outline
• A Chemical Engineers Role in Industry
• Internal and External Influences and Constraints
• What is Quality Management?
• What is Supply Chain Management?

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CM4120Chemical Plant Operations LabIntroduction
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• Primary Goal of Chemical Manufacturing?
• How does your company achieve that goal?

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CM4120Chemical Plant Operations LabIntroduction
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Broad Range of Industries

• Agricultural Products
• Automotive
• Coatings and Adhesives
• Consumer Products
• Energy
• Environmental Remediation
• Food Processing

• Intermediate Products
• Petrochemical
• Pharmaceutical / Health Care
• Polymer Processing
• Pulp and Paper
• Semiconductor Industry

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CM4120Chemical Plant Operations LabIntroduction
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• Entry-level titles for B.S. Chemical Engineers
• Chemical Engineer
• Process Engineer
• Product Specialist
• Product Engineer
• Project Engineer
• Research Engineer
• Production Engineer

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CM4120Chemical Plant Operations LabIntroduction
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• Job Responsibilities will include
• Provide service or product on a timely basis
• Manage supplier relationships
• Manage customer relationships
• Sufficient quality, consistently
• Expand existing markets
• Develop new products
• Continuing education/professional development

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CM4120Chemical Plant Operations LabIntroduction
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• Key events of the past 10 to 15 years have
  changed the business climate in the US and
  world-wide
• Breakup of Soviet Union
• Free/open trade between Western European
  countries EU and Euro
• NAFTA and CAFTA, future FTAs
• China granted Most-Favored-Nation trading status
• Adoption of Shipping Containers
• Expanding markets and infrastructure development
  in India, China, Pacific Rim, and African nations

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CM4120Chemical Plant Operations LabIntroduction
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• Catastrophes (man-made or natural) impact the
  manufacturing environment
• 9/11 Incident and other terror attacks worldwide
• Major hurricanes, earthquakes, tsunamis, etc.
• War
• Instability in the price of oil
• Stock market crash of 2008
• Lending crisis of 2008
• Companies must adapt to survive

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CM4120Chemical Plant Operations LabIntroduction
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• Business Constraints
• Your company must maintain a level of
  competitiveness/profitability while complying
  with
• Environmental, Health, and Safety regulations
• Labor laws
• Tax laws
• Patent Law
• Homeland Security Act
• International trade agreements

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CM4120Chemical Plant Operations LabIntroduction
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• Additional Constraints
• Certifications or quality assurance standards
• Supplier and customer audits
• Internal politics/ biases
• Your own moral and ethical standards
• Need to critically review all aspects of the
  business to maintain competitive edge.

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Ways to improve profitability

• Increase Income
• increase throughput
• increase on-time order fulfillment
• improve stability of process
• improve quality

• Decrease Expenses
• reduce inventory product, feedstocks, spares
• maintenance costs
• labor costs
• production costs
• environmental releases
• energy costs
• off-spec product

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• All improvements fall into one of two categories
• Improved processing and control thru Quality
  Management, or
• Increased profitability thru efficient Supply
  Chain Management

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In summary What you (your company) did yesterday
isnt good enough for tomorrow!

• Your company is driven to continuous improvement
• by your customers
• by your competitors
• by a changing world

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CM4120Chemical Plant Operations LabQuality
Manufacturing
Increased Profitability thru Quality Management
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CM4120Chemical Plant Operations LabQuality
Manufacturing

• How is Quality defined?
• Quality is what adds value to your raw materials.
• ISO9000 The totality of features and
  characteristics of a product or service that bear
  on its ability to satisfy stated or implied need.
• Quality is always defined by the customer.

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CM4120Chemical Plant Operations LabQuality
Manufacturing

• What is Quality Management ?
• Managing systems and processes for the
  elimination of errors.
• Creating an environment for continuous
  improvement.

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CM4120Chemical Plant Operations LabQuality
Manufacturing

• Formula for a generic process
• ABC
• where Asystem contribution,
• Bhuman contribution, and
• Cdesired (measurable) output
• manipulating either A or B causes variation in C
• Variation is the enemy of quality manufacturing!
  W. Edwards Deming

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CM4120Chemical Plant Operations LabQuality
Management Tools
Application of Quality Management Tools to PDMS
Pilot Plant - a few examples -
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CM4120Chemical Plant Operations LabQuality
Management Tools
Six Sigma DMAIC Cycle

• Deming Cycle

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CM4120Chemical Plant Operations LabQuality
Management Tools

• Goal setting
• Helps us maintain constancy of purpose if we
  define our purpose and set appropriate goals.
• Goals must be attainable
• Goals must be measurable
• Reduce variation in product viscosity is a
  poorly written goal.
• Reduce the variation in viscosity to or 5
  CSt is better because it is measurable.

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CM4120Chemical Plant Operations LabQuality
Management Tools

• Fishbone (Cause and Effect) Diagram

Jason Copenhaver Jason Gudenau Jeff Marana Josh
Wenschlag March 20, 2003
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CM4120Chemical Plant Operations LabQuality
Management Tools

• Pareto Chart

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CM4120Chemical Plant Operations LabQuality
Management Tools

• Statistical Process Control
• Develop control chart to convert fluctuations in
  a measured characteristic into useful
  information
• Continuous processing, look at desired
  characteristic vs. time
• Batch processing, compare characteristic of
  current batch at t0, t1, t2, etc. to prior
  batches at t0, t1, t2, etc.

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CM4120Chemical Plant Operations LabQuality
Management Tools

• Actions
• Replaced equipment to eliminate equipment sources
  of variation
• Created a spreadsheet to accurately calculate
  batch loadings
• Refined the SOP to clarify confusing instructions
• Added automation to prevent human error
• Results
• Reduced our variation to or 5 CSt

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Increased Profitability thru Supply Chain
Management A Business Management Method
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CM4120Chemical Plant Operations LabIntroduction
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• What do we mean by the Supply Chain?
• Concerns the flow of material from procurement
  to delivery of finished products
• purchasing
• receiving
• warehousing
• processing
• packaging
• shipping

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CM4120Chemical Plant Operations LabIntroduction
to Supply Chain Management

• What do we mean by the Supply Chain?
• Concerns the flow of information through business
  processes
• sourcing
• planning
• technology solutions
• inventory management
• sales, marketing, and advertising
• order fulfillment
• customer service

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CM4120Chemical Plant Operations Lab
Introduction to Supply Chain Management

• Information flow in a manufacturing environment
• Originates at the field device or from an
  operator
• DCS or other control system and their operators
• Manufacturing Execution System (MES) and their
  operators
• Supply Chain (Enterprise) Management System and
  their operators

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CM4120Chemical Plant Operations Lab
Introduction to Supply Chain Management

• Enterprise-wide software management tools
  available
• SAP, i2, iBaan, others
• manages everything from order entry to invoice
• provides links to suppliers and customers
• Require that all relevant data at all levels of
  the business be available in real time

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CM4120Chemical Plant Operations Lab
Introduction to Supply Chain Management

• Why manage the supply chain?
• U.S. Chemical Industry is 400 billion/yr. in
  sales
• Better management of supply chain yields 7.5 of
  sales in savings for typical chemical
  manufacturer
• 30 billion/yr. potential savings

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CM4120Chemical Plant Operations Lab
Introduction to Supply Chain Management

• Where do gains come from?
• It is estimated that U.S. CPI has 80 days
  inventory
• Reduce inventory by 50 and save 30 of the value
  of inventory
• Estimated savings are 20 billion/yr.

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CM4120Chemical Plant Operations Lab
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• Where do gains come from?
• Typical cash-to-cash cycle time is 6 months
• Best-in-class implementations will reduce
  cash-to-cash cycle time to 30 days

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CM4120Chemical Plant Operations Lab
Introduction to Supply Chain Management

• Where do gains come from?
• Automation of business processes
• Open communications w/ suppliers
• Open communications w/ customers