Capacity Optimization & Sizing

This video is one of a 10 part series. Visit our channel's playlist to watch the full set. If you would like more information about Opgrade or Nate Barber visit www.opgrade.com. Narrator: Nate Barber Video slides: CAPACITY OPTIMIZATION & SIZING How to Size Units and Tanks to Maximize ROI PROCESS EVALUATION [x] Linear Programming Optimize profitability based on unit selection & configuration [x] RAM Studies (Reliability, Availability, Maintainability) Evaluate equipment bottlenecks based on reliability [x] Dynamic Process Simulations Evaluate pressure, temperature and flow profiles in systems -The best empirical capital sizing decisions use information from all 3 [x] Computational Fluid Dynamics Evaluate pressure, temperature and flow profiles in equipment A NEW TOOL IN OUR TOOLBOX -Capacity Optimization & Sizing Tool combines: *Complex routing and operational rules from Linear Programs *Mechanical availability and maintenance schedules from RAM Simulators *Dynamic mass balances from Dynamic Process Simulators CAPACITY SIZING QUESTION -The Basic Question: *How will changes in capacity affect revenue? i.e. How big is the carrot? -The Problem: *In a typical pro forma, all assumptions for revenue improvements were based on either: -Tribal knowledge (guessing) -Single-point improvements (ignoring system effects) *There wasn’t a unified simulation method to both properly and empirically account for the complexity of the real world -Client has an existing crude-upgrader plant *How do additional up-stream capacity and additional tank infrastructure improve revenue *Would the improvements in revenue justify the capital expense? *What unit capacities generate the highest ROI? *Where should we add or decommission tanks to maximize ROCE? *What normal tank level will maximize production? -Need to empirically evaluate the options