Idemitsu Kosan Transforms its Refining Operations with AVEVA’s Value Chain Optimization Solution

Unified planning and operational decision-making across seven refineries improved refinery margins and business processes.

Idemitsu Kosan Transforms its Refining Operations with AVEVA’s Value Chain Optimization Solution

 

Goals

  • Improve decision making process to achieve higher refineries margins, maximize utilization of refineries assets, and minimize crude and transportation costs.
  • Standardize its downstream operations and simplify supply chain processes to increase agility and transparency across headquarters and refineries.
  • Optimize the enterprise value chain and maximize economic opportunities for its integrated multi-plant business.

Challenges

  • Lack of visibility across the company’s enterprise value chain resulting in disconnected processes and siloed operations.
  • Low confidence in refinery plans due to unstable LP planning models and inability to optimize complex, multi-refinery scenarios.
  • Legacy planning tool was hard to learn and understand, requiring specialized skill sets, and created a barrier to training new users and sharing models across the enterprise.

Results

  • Increased margins 1 to 3 cents per barrel through initial enterprise value chain optimization.
  • Unified decision making process across seven refineries by standardizing operations on a single application for trading, crude assay management, planning, scheduling and distribution.
  • Developed robust, multi-refinery models to reliably evaluate complex profit scenarios previously impossible to analyze.
  • Trained end users in 50% less time; visual user interface simplified understanding of models for non-LP experts for easy updating and sharing of information across operations.
  • Simplified business processes with cloud deployment for seamless data integrity and traceability to ensure business continuity.

“AVEVA provides more than just software. Its unique approach enables better business processes through a unified easy-to-use decision making tool that brings better visibility across the overall supply chain, which leads to greater productivity.”

Kazutoshi Okumura
Senior Manager, Simulation Section Supply Planning Department,
Idemitsu Kosan Co., Ltd.

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