Our client, an independent oil and gas company owned by one of North America’s largest private enterprises in refining, marketing, and distribution engaged Trindent Consulting to improve refining margins and reduce the cost of transportation fuels. Over a 26-week engagement, Trindent implemented and sustained more than 15 targeted processes that delivered $12,000,000 in annualized savings by reducing gasoline quality giveaway by 60%. This was achieved by maximizing the value of existing assets through process optimization, system enhancements, and cultural transformation, achieved entirely without capital investment.
How we Made it Happen™
Planning and Optimization
- Implemented a process to adjust planning buffers and BOSS parameters using statistical quality control (SQC) and root cause analysis (RCA) inputs, allowing for 30,000 additional barrels of butane to blend during the summer season.
- Installed class and seasonal specific octane and volatility blend laws, improving property prediction accuracy and increasing online octane certification by 60%.
- Standardized BOSS target-setting process for RM/2 and RVP by incorporating different blending scenarios and volatility seasons, reducing octane giveaway variance between online and offline certification by 80%.
- Established a weekly cross-functional Blend Review Meeting with an RCA framework to comprehensively identify and historize causes of quality giveaway and develop a proactive approach to resolve underlying issues.
- Implemented a site-specific blend optimization philosophy to accurately capture neat blended predictions, reducing reliance on Quality Correction Factors by 49%.
Execution Excellence
- Conducted daily coaching to Board Operators from taking a hands-off blending approach to confidently making adjustments based on real-time data, eliminating 0.20 ON execution giveaway for online octane certified blends.
- Standardized the blend execution process and enhanced Board Operators’ capabilities by implementing site-specific start-up and execution procedures, blend adjustment decision-making tools, and targeted onboarding and refresher trainings enhanced with AI.
- Integrated an in-depth quality giveaway training into the onboarding process, translating engineering units to financial impact to clarify cost of quality giveaway and methods to recapture product margin.
- Established unified reference points for blend control decisions by applying correct ASTM rounding rules, reducing false off-spec metrics and increasing Board Operator confidence in reducing giveaway.
Measurement Accuracy
- Developed a robust detection process for inaccurate component samples based on historical statistical averages and implemented a re-sampling procedure to minimize gaps in component quality updates.
- Implemented a program to regularly assess health of online ICON ethanol blenders and Lab ethanol hand blends through verification with an ASTM-approved method.
- Mitigated vapor loss during sampling through sustained adherence to newly implemented ASTM D5842 standard operating procedure, resulting in improved blend predictions, backcasting, and buffer reductions.
“Over the course of the project, a comprehensive set of management and training tools were installed, giving our teams additional capabilities to achieve operational excellence for quality giveaway. Beyond the method changes that were successfully implemented, your team also leveraged industry knowledge to uncover additional opportunities that position us to capture incremental benefits.”