Economic Justification of Plant

Upgrades using Automation

Alex Habib, PE
Standards
Certification
Automation Consultant
Education & Training Tel: 732-742-7913
Publishing
Conferences & Exhibits alex-habib@msn.com
 Market Drivers for Automation

The Manufacturing Companies are experiencing:

Large number of mergers and acquisitions

Increased awareness of technology
Profit margins shrinking & Increased competition
Skilled labor shortages
Short product turnaround
Regulatory compliance issues (Quality and Safety)
What Keeps You Awake at Night

Energy
Utilities
Yield / Waste Effluent
Environment
Customer
Complaints

Distribution Scheduling
Warehousing Planning
The Mission

Increase: Improve:
• Uniformity in product • Productivity
quality • Performance
• Production throughput • Response time (internal &
Reduce: external)

• Downtime • Safety & Environmental

Compliance
• Re-work
• Work conditions
• Off Spec. products
• Manufacturing Cost
 Manufacturing Automation and Information Systems

• Payroll
Business • Marketing
ERP • Product Pricing

• Work Instructions
Production MES • Batch Records
• Inventory Tracking

• Process Controls
Controls PCS (DCS, PLC, SCADA)
• Safety System

Instruments &
Control Devices
Manufacturing
Plant Process
Equipment
MES Example
 The Automation Scope

ERP

Manufacturing
Execution
Systems (MES)
Process
Control Systems
PLC, DCS, SCADA

Instrumentation & Control Devices

 Supply Chain

Supply Chain
ERP ERP ERP

Manufacturing Manufacturing Manufacturing

Execution Execution Execution
Systems (MES) Systems (MES) Systems (MES)

Process Process Process

Control Systems Control Systems Control Systems
PLC, DCS, SCADA PLC, DCS, SCADA PLC, DCS, SCADA

Instrumentation & Control Devices

Instrumentation & Control Devices
Instrumentation & Control Devices

Site # 1 Site # 2 Site # 3

Typical Modern Process Control System
Remote Client HMI Asset Management
profit
low!

profit
low!

profit profit profit

low! low! low!

profit profit profit

low! low! low!

Internet

Historian
File &
Historian Database
Servers

PLC’s SIS’s DCS

Roaming
Users

Instrumentation &
Controls
 Economic Justification of Plant Upgrades
Define Objectives
Business Objectives Business Objectives Business Objectives
Process Objectives Process Objectives Process Objectives
Automation Objectives Automation Objectives Automation Objectives
Payback Payback Payback

Discharge

Gas Waste Treatment

U Train Process Units P

T A B C D E A S
Raw S
I 1 Extraction Distillation Reaction Compounding Drying C T
Material T
L K O
O 2 Extraction Distillation Reaction Compounding Drying
I A R
R Product
T 3 Distillation Reaction Compounding G A
A Extraction Drying Shipping
I I G
G 4 Extraction Distillation Reaction Compounding Drying
E N E
E
S Reaction
G
5 Extraction Distillation Compounding Drying

Liquid & Solids Waste Treatment

Discharge
 Define Objectives

Business, Process & Automation Objectives

* Increase Throughput • Automate Batch Sequence

Increase • Add Operator Consoles
Sales * Add New Products
• Add Sensors
* Decrease Wasted Batches

Increase
Improve Delivery (Time to Market) • Improve sensor Accuracy

Price
Improve Quality • Optimize Process

Decrease Raw Material Usage

• Add Redundancy
Decrease
Energy and Utility Savings
Mfr.Cost • Add Safety

Decrease Disposal Cost and Instrumented System
Environmental Compliance Penalty
• Add Data Historian

Increase Equipment Life
• Close Control Loops

Increase Labor Efficiency
Key Performance Indicators (KPI)
 Micro Profit Centers

Pay
Expenses

Sell
Buy Raw Process
Product
Sell
Material Unit Product

Profi
t
Micro Profit Centers & Lean Manufacturing

Extract Distillati Compound

ion on ing
Case History # 1 (Before)
 Case History # 1 (After)

Improve Quality & Increase Yield

 Case History # 2

Add New Products - Biopharmaceuticals

Case History #2 (Before)
Case History # 2 (After)

Add New Products

 Economic Justification of Plant
Upgrades using Automation

Alex Habib, PE
Standards
Certification
Automation Consultant
Education & Training Tel: 732-742-7913
Publishing
Conferences & Exhibits alex-habib@msn.com