How Pinnacle refinery (name changed) went about strategic project (Lean Six Sigma) selection and deployment

1. LEAN SIX SIGMA IN A PETROLEUM REFINERY - A CASE STUDY NAVEEN NARAYANAN SSA BUSINESS SOLUTIONS (P) LTD. SEPTEMBER 24TH, 2011 PRESENTED TO:

3. NEED OF THE HOUR PEOPLE ENROLLMENT EVERYONE COMMITTED & INVOLVED | PROACTIVE PROBLEM SOLVING PROCESS EXCELLENCE CONTINUAL IMPROVEMENT | FACT BASED MANAGEMENT WASTE ELIMINATION REDUCE PROFIT LEAKAGE | ENHANCE EFFICIENCY OPERATIONAL EFFICIENCY REDUCE COST | IMPROVE EFFICIENCY NEED OF THE HOUR

4. CI INITIATIVES Strategic Alignment? Bottom-line focus? Sustainable? | | 7 QC Tools Quality Circles Suggestion Scheme 5 ‘ S ’ Daily Work Management TPM

6. LSS DEPLOYMENT ROADMAP HOW ‘ PINNACLE ’ REFINERY EMBRACED LSS

9. PROJECT SELECTION HOW ‘ PINNACLE ’ IDENTIFIED STRATEGIC PROJECTS

14. SAMPLE PROJECTS Project Goal Metric Baseline Goal Optimize Product Yield for VD, and VGO from VDU Column % Wt. on crude 2.5% 3.9% Reduce H2 Losses to flare Tons/day 2.4 ton/day 0 ton/day Reduce TAT of Bitumen Lorries Time 4.3 hrs. 2 hrs. Improve Reliability of Rotary Equipments Failures/yr. 4/year 2/year Maintain Fuel Oil Viscosity CST 260 160 Improve Reliability of Fire Extinguishers % non reliable 15% 5% Optimization of I/F generation in MMPL Volume 206 Kl 195Kl

18. ENHANCED CUSTOMER SATISFACTION: SEVERAL PROJECTS LINKED WITH CUSTOMER EXPERIENCE & LOYALTY PROCESS IMPROVEMENT: BREAKTHROUGH AND SUSTAINABLE PROCESS IMPROVEMENTS ACCOLADES: RECOGNIZED AS BEST PROJECTS IN SEVERAL NATIONAL & INTERNATIONAL AWARDS SUCH AS INSSAN, QIMPRO, IDEAS ETC. PRODUCTIVITY GAINS: DRAMATIC IMPROVEMENT IN OPERATIONAL EFFICIENCY, CONSISTENCY AND RELIABILITY OF PROCESSES FINANCIAL SAVINGS: DIRECT LINKAGE TO BOTTOM-LINE, CUMULATED SAVINGS (RATIFIED) OF OVER INR 200 CRORE RESULT

19. CASE STUDY 1: VDU COLUMN YIELD IMPROVEMENT

20. PROCESS SCHEMATIC

21. PROJECT CHARTER

22. PROCESS TREND LOW VD YIELD - AVG. 2.63% V/S TARGET 4%

23. -VE Cpk VALUES INDICATE EXTREMELY POOR PERFORMANCE PROCESS CAPABILITY

24. PROCESS FMEA

25. POTENTIAL CAUSES X1 X2 X3 X4 X5 Y

26. REGRESSION VDIR/RCO V/S YIELD HVGOCR V/S YIELD LVGOCR/RCO V/S YIELD RTC 293 V/S YIELD

27. DRAMATIC IMPROVEMENT IN VD YILED - AVERAGE YIELD OF 4.5% BREAKTHROUGH RESULTS

29. CASE STUDY 2: REDUCTION IN GATE ENTRY TIME

31. AS-IS PROCESS

32. ROOT CAUSES Problem Root Cause Solution Too much waiting for Visitors at early morning, lunch time & end of the shift No manning before 8am, after 3:30pm, lunch time 2 shift Counter operation (7:30 am to 5.30 pm) Visitors had to move back & forth at different windows Vehicle pass, Laptop entry & Mobile deposit area at different counter Vehicle no on the same welcome slip, single window approach, allow mobile for admin area, laptop entry by visitor CISF to confirm Visitor has to wait till welcome slip is ready Minimum communication between the visitor and staff SMS to visitor on slip approval to ensure the slip is created prior All types of visitors through Welcome Slip No convenient procedure for contractor, delivery persons Welcome Slip for visitors and daily pass for technocrats/ delivery persons

34. IMPROVED PROCESS

35. Gate Entry Processing time reduced from Avg.15 mins to Avg. 4 mins BEFORE/AFTER

36. ABOUT SSA

37. PURPOSE & VISION Purpose: To enhance Stakeholder ’ s Value through partnering for growth; our journey will continue as long as there is a passion for perfection. Vision: To become the No.1 Business excellence solutions provider in India by 2015 with 20% revenue from overseas consulting. HIGH PERFORMANCE CAPABILITY | HIGH FINANCIAL STRENGTH

39. ACCREDITATIONS RATED SE-2A BY CRISIL | HIGH PERFORMANCE CAPABILITY HIGH FINANCIAL STRENGTH ISO 9001 CERTIFIED ANSI IACET 1-2007 AUTHORIZED PROVIDER ISO 27001 ISMS CERTIFIED HIGH PERFORMANCE CAPABILITY | HIGH FINANCIAL STRENGTH

40. SELECT CLIENTELE HIGH PERFORMANCE CAPABILITY | HIGH FINANCIAL STRENGTH

41. GLOBAL REACH HIGH PERFORMANCE CAPABILITY | HIGH FINANCIAL STRENGTH

42. BASKET OF OFFERING HIGH PERFORMANCE CAPABILITY | HIGH FINANCIAL STRENGTH Lean Six Sigma Lean Management BPMS Solutions TPM ISO/ISMS/EMS/OHSAS Process Simulation Daily Work Management Project Management Design for Six Sigma (DFSS) Performance Management IT & ITES Support

43. SSA ’ S ISM MODEL “ ISM ® aligns people and the processes with the corporate objectives and goals ” - NC HIGH PERFORMANCE CAPABILITY | HIGH FINANCIAL STRENGTH

44. QUESTIONS?! HIGH PERFORMANCE CAPABILITY | HIGH FINANCIAL STRENGTH

45. Naveen Narayanan Glendale, AZ, December 8 th , 2010