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What Is Capacity Planning?

Planning can be involved with thinking ahead, making provision. Capacity can be known as the top limit on the pace of result. Another meaning of capacity can also be to maximum rate at which a transformation system produces or functions inputs. Therefore capacity planning can be defined as the procedure used to determine how much capacity is necessary so when it is needed, to be able to manufacture increased product or being production of a new product.

According to TeamQuest (www. teamquest. ocm/capacityplanning Day access 12 Feb 2010) the goal of capacity planning's would be to provide reasonable service levels to users in a cost-effective manner. Capacity planning has become a major concern in a worldwide environment because of the financial benefits of the efficient use of capacity plans within material requirements planning systems and other information systems.

Insufficient capacity will lead to inadequate delivery performance, stress on current work-in-process, and frustrate sales staff and the ones in production. However, extra capacity can be expensive and unnecessary. The lack of proper capacity planning will become a hurdle to the achievement of maximising performance.

With regard to Natref refinery they have a constant plan ahead for the next six months where the last three months are fixed. A lack of supply would definitely influence its capacity to provide according to its quotes. The supplies need to be monitored closely due to the fact that capacity is a possible restraint, specially when there's a need for stock building. These problems are closely planned and planned to reduce unforeseen capacity problems.

The planning is done by the shareholders of Natref particularly Sasol, that contains 63. 64% of the stocks and Total that keeps 36. 36% shares. The shareholders are incredibly closely associated with Natref's daily procedures. The levels of capacity and production rate is continually checked to ensure that the vegetable is run in an optimized way and also to ensure that we now have no lack of recycleables.

When doing capacity planning it's important to consider the next three steps as set out by TeamQuest (www. teamquest. ocm/capacityplanning Date access 12 Feb 2010):

To follow all these steps, you can ensure that your organisation will be prepared for the future. You should have the info necessary to get only what you need, avoiding over-provisioning while at exactly the same time assuring adequate service.

To have the ability to do capacity planning it's important to understand and determine the "market" requirements. To have the ability to determine the requirements you must understand the workloads. Before setting up service/product levels, you need to determine what unit you use to measure the incoming work. According to TeamQuest (www. teamquest. ocm/capacityplanning Night out access 12 Feb 2010) the workload can be explained as a rational classification of work performed.

It is useful to analyze the work done on systems in conditions that produce sense

BOTTLENECKS

What is a bottleneck?

A Bottleneck is the action occurring and causes the capacity in a certain method that's not fully used for (Operations & Supply Management, Jacobs, Run after, Aquilano, 2009:165) this action, it may be time, how long it requires to complete the duty or the facilities that are in process for instance dispatch places of the ultimate product.

Business Meaning: Bottleneck (http://dictionary. bnet. com/definition/bottleneck. html Night out of access 10 Feb 2010)

An activity in a organization which has a lower capacity than preceding or following activities, thereby restricting throughput. Bottlenecks tend to be the reason for a build-up of work in progress and of idle time,

A limiting factor on the rate of a surgical procedure. A workstation operating at its maximum capacity becomes a bottleneck if the speed of production somewhere else in the herb rises throughput but at that workstation can't be increased to meet demand. A knowledge of bottlenecks is important if the efficiency and capacity of the assembly line should be increased. The techniques of fishbone charts, Pareto charts, and flow charts can be used to identify where and why bottlenecks appear.

Identification of bottlenecks (Production and Businesses Management, Ray Crazy, 1979)

There are two ways to recognize bottlenecks in a system, first check whether the resource account is right for the given capacity and subsequently use the data of workers in the precise layout by talking about this and finding out where they see the bottlenecks.

In the procedure to avert and control bottlenecks, there need to be looked at the next factors:

The work that must definitely be done and the task ethics

The goal is to determine the particular most economic way is, to get the work done.

To standardize the method, equipment and material that is utilized to get the task done.

Furthermore there must be established how much time a qualified worker needs to do a job of confirmed quality standard.

It is important that process be applied for maximum benefit to the organization.

The interpretation of the layout

Points that require to be regarded are the following:

Cost of the handling and moving of crude essential oil.

Utilization of labour, facilities and the area of the plant.

Are there primary strategies for the maximization or minimization of the structure?

If equipment needs to be improved or replaced, will the plant compensate for this?

Capacity planning and management thereof

Effective capacity management is very important to Natref.

The definitive goal for capacity planning is to balance the amount of developing to the demand of the merchandise being made. Capacity planning comes down to the following two factors:

Determining the capacity needed for the manufacturing system.

By developing and implementing a technique you can use in the prevailing process by applying resources in that manner those fluctuations can source in demand.

Scheduling

Because Natref is functioning on a Low fat process, scheduling is of utmost importance, for example when a shutdown is planned. Which means that certain activities should be rescheduled, for example, more completed products will have to be stored for the demand thereof through the shutdown.

The boats with crude petrol that contain been ordered, should be rescheduled, because there could not be safe-keeping available at Natcos.

The design and arranging of the process flow

See if the refinery process employed by Natref is entailing best flow, quite simply, is the processing series in balance.

All these processes are being used and integrated by Natref. What makes the problem at Natref a just a little different is that bottlenecks can not only come up in the structure, but also along the way of crude petrol being provided from Durban by tube line. Bottlenecks can also come up at the storage space center (Natcos).

Refer to Annexure A for the schematic display on the actual bottlenecks.

All the factors proclaimed A, B, C, D and E can be recognized as possible bottlenecks.

Because Natref itself does not have a lot of safe-keeping capacity (Low fat) for crude engine oil, they should work more pro-active to avoid bottlenecks in the refining and procurement periods. If bottlenecks occur during the refining process, then it ought to be dealt with the most urgency.

Note to Natref

At present Natref's biggest tips for bottlenecks are the procuring and delivery of ready products, because in both instances they do not have enough storage area capacity.

The existing delivery service is too small and therefore a bigger delivery facility has been built to increase the tempo for road- and rail move. That is a much cheaper option to building a storage center at Natref, because there would be less risk credited to fire risks when product is placed in safe-keeping. Natref's definitive goal is procurement of energy resources. Natref should in simple fact make use of its clients' storage space facilities and so shipping and delivery its ready-made products quicker.

Relating to the procurement of crude essential oil, Natref should control bottlenecks the following for minimum dangers:

Advanced buying of crude petrol should be scheduled that there would continually be enough ships on its way, so that Natcos (storage plantation at Durban) would not run out which there would continually be enough space for storage.

Maintenance strategies for the tube range from Natcos to Natref should be thoroughly seen through, so that continual move of crude petrol can be looked after. Maintenance should be synchronized during shutdown times.

CAPACITY PLANNING: CHANGES POPULAR AND SUPPLY

The business environment hasn't been more challenging than it is right now. The rate of change available on the market is building a stress on companies to reply quickly and effectively. The foundation that's needed is to respond to powerful changes in source and demand is dependant on understanding your source chain's capacities. Understanding and then building the infrastructure that delivers the needed flexibility and acceleration requires an in-depth knowledge of how capacity effects your business.

The impact of capacity management is believed throughout the business, within every element of the resource chain. Distributor capacity may bring creation to a standstill. Creation capacity is equally important; if the capacity is not great enough to meet peak demand cycles and inventory building is not properly planned, customer demand will go unfilled. Distribution capacity, both safe-keeping and throughput, ensures delivery of the right product at the right time. Transport connects all components of the supply chain; therefore, its capacity issues are key, influencing service levels and on-time delivery performance.

Change is among the most guideline, not the exemption. The need for capacity management is assessed not in years or quarters but instead in weeks and calendar months. Changes can be brutally fast and without warning. Industry over the past two years has been struck hard with a steep slowdown of these business. Some were taking care of their capacity to great detail during the overdue 90s, with cutting edge systems set up; however, these systems failed when business conditions started out impacting their prolonged resource chains, including contract manufacturers and suppliers. With these current levels of change, dynamic way of measuring and planning tools have become essential.

External as well as inside dynamics create the necessity for continuous monitoring and modification of capacity levels and procedures. Global monetary conditions and competitors cause external pressures that struggle current business tactics. From price stresses to raw material supply, organizations must be flexible enough to respond quickly to these changes. Internal dynamics can be just as disruptive. Acquisitions and partnerships as well as steps into new marketplaces create opportunities to leverage current belongings and spend capital correctly. However, without proper planning, these opportunities can become large issues and liabilities if synergies are not exploited. Regardless of how well capacity planning is conducted, these decisions must routinely be revisited to make certain they remain aligned with the organization's goals. If so, they'll provide the groundwork to support new initiatives including cooperation throughout the extended supply chain.

Management Actuality: A subjective issue

As every administrator is aware, capacity is a difficult strategy to quantify. Be it a workstation's ability to process jobs or a making plant's functionality for each year, the answer is generally "it depends. " Due to the dynamic dynamics of capacity and the interrelationships among different source chain elements, capacity is forever changing. Product-mix changes, process or equipment engineering improvements, labor availability and new data management systems are only a few reasons capacity can abruptly change. The most available and, therefore, most popular way of measuring capacity is the past-but the past is not necessarily a very good sign of the future.

There can be an answer. Many tools have been developed to address the dynamic character of supply chains today. In an effort to empower managers, to allow them to plan rather than respond, planning tools assess a variety of factors and are superior to "educated guessing" about where, how much so when capacity should be altered. With a scope ranging from a complete view of the source chain to a subset of the organization to a micro "within the box" view of your facility, there's a tool to meet any capacity management need. These tools help quantify the dissimilarities among alternatives and lead to a greater understanding of the interrelationships in just a supply chain. From determining bottlenecks, to backup suppliers, to available alternative routings, to contingency planning, the true cost and impact of decisions can be examined. Because all elements of the system being analyzed can be displayed at once, sub-optimization can be averted. Alternatives can be objectively assessed to ascertain their true effect on a number of performance options, including throughput capacity, inventory levels, and cycle times, before expensive and disruptive changes are created.

According to Baltzan et al. (2009:184) demand planning SCM (Supply Chain Management) software can help a business determine capacity. A business must determine the performance capacity level for every of its facilities. If it makes a decision a facility will have a large amount of excess capacity, which gives the flexibility to respond to wide swings in demand, then it is choosing an performance strategy. Extra capacity, however, cost money and can therefore decrease efficiency. Natref will just this, by utilising its software, swinging the throughput of its product albeit Diesel or Petrol, whenever the demand for the main one product exceeds that of the other the machine can speedily change the throughput of the merchandise needed.

Competitive Advantage: Knowledge is Power

Capacity's pervasive affect and the rate of change make the need for exact knowledge and overall flexibility a necessity. The capability to quickly respond, while making informed and informed decisions, will straight impact the health and success of your company. It will enable you to go up above your rivals, to compete predicated on your supply string and the service and versatility you can provide.

In today's active business environment, acceleration and overall flexibility are essential. From having the ability to quickly react to business conditions to reacting to dramatic changes in customer demand, a disproportion of capacity can have disastrous results. Too much capacity can lead to low return on assets, morale damaging layoffs and expensive service closures while too little can cause lost sales and eroding customer commitment. Utilizing a tactical network design tool allows a business to objectively examine its extended resource chain and all together consider all costs and business procedures. This understanding may then drive an organization's capital expenditures and strategies as they create a world-class supply string, built to compete against any organization on the planet.

It can be said that from the info provided by Natref it is utilising its capacity very successful. In total Natref produces 170 000 m3 of Petrol 170 000m3 of Diesel gasoline + 30 000 m3 of Diesel gasoline for export market segments, 110 000 m3 of Jet-Fuel (kerosene) and 25 000 t Heavy Gas Oil for commercial use 13 000 t of Bitumen. Thus a complete of 480 000m3 and 38 000t of product. The demand fluctuates constantly and Natref must constantly stay abreast with changes. Natref are lucky to possess shareholders that have a direct type in to the market that helps with its planning.

TECHNIQUES TO ASCERTAIN LONG-TERM CAPACITY REQUIREMENTS

To achieve real (effective) capacity, you must understand what is produce, need to look at both resource input and product end result. As operation director you have to ensure to see also the aspect of capacity, which capacity must be explained relative to some time frame. "This is evidence in the normal distinction get between long-range, intermediate-range, and short-range capacity planning. "(Jacobs, Chase and Aquilano (2009:121-122))

According to Jacobs et al (2009:123-124) the objective of strategic capacity planning "is to provide an approach for deciding the overall capacity degree of capital-intensive resources - facilities, equipment, and overall labour make size - that best support the company's long-range competitive strategy. To ensure overall capacity level the concept of best operating level can be used and at all time ensure a 100% capacity utilization rate is acquired. Capacity utilization rate is determined by the real capacity used divided by the actual capacity it has been expanding for. The % out of 100 will driven the utilization rate.

When determining capacity requirements, you have to require demand for every single product line, individual plant features, and allocation from production:

Use forecasting techniques to anticipate sales for specific products within each product line.

Calculate equipment and labour requirements to meet products forecasting.

Project labour and equipment available over the planning horizon.

(Jacobs et al (2009:121-122))

To examine capacity alternatives Jacobs et al (2009:131) implies the use of the decision tree. A conclusion tree is a convenient way to evaluate a capacity financial commitment; this does not only help to understand the challenge but also locates a solution. "A conclusion tree is a schematic style of the sequence of steps in a problem and the conditions and results of each step. " Just how forward is that a square indicates a decision point and the circles signify change happenings. Branches from decision point show choices available for decision manufacturer, branches from chance situations show the possibilities for occurrence. To resolve the tree you work back again from the end to the start of the tree, you compute the expected values of every step, by determining the value of every step the time and money value is important if the planning horizon is long.

Example diagram of the decision tree

Once the computation is manufactured you prune the tree by eliminating from each decision point all the branches except the one with the highest pay back. This continues before first decision point and problems are solved. If no changes are made competitors will move in and would make development no longer feasible.

According to an International Journal of Creation Economics (2001:p215-22) "in a processing strategy, capacity is a structural decision category, coping with energetic capacity development and reduction relative to the long-term changes in demand levels. Sales and operation planning (S&OP) is the long-term planning of development levels in accordance with sales within the framework work of any developing planning and control system. Within the S&OP, resources planning are being used for determining the correct capacity levels in order to support the development plan. Developing strategy and sales procedure planning provides two perspectives on long-term capacity management, raising and dealing with different issues. "

Note to Natref: regarding best practice ways to determine long-term capacity requirements

Natref must:

Estimate the capability of the present facilities

115 000 barrels/day

All petrol levels @ 3500 liter/minute

80% of JIA aircraft energy requirements @ 2000 l/minute, and

Diesel @ 4500 liters/minute\

With above information Natref need to determine their capacity usage percentage and relates the real output to productivity capacity and genuine suggestions use to source capacity. This will likely determine the efficiency of the existing input and productivity capacity. With this a capacity pillow have to be added to the capacity demand to allow for: greater than expected demand, demand during peak demand seasons, lower development cost, product and volume level versatility and improve quality of products and services.

Forecast the long-range future capacity needs

Natref need to consider the life span input for another 5 years and understand the product life cycle as it influences capacity. Anticipate technology development and competitor's action. Forecast the strategy and demand of shareholders.

Ask the question exactly what will change to the current month productions in 5 years:

170 000 m3 of Petrol

30 000 m3 of Diesel gas for export markets

110 000 m3 Jet-fuel

25 000 t heavy fuel oil for professional use

Natref may possibly also extend long-term capacity by:

Subcontract with others, acquire other companies facilities and resources

Expand, update or improve excising facilities

When all above is done and the forecast and capacity requirements has been establish. Two approaches could be used namely expand all at once or expand incrementally.

Expand all at once - build the best center now and increase into it

Little threat of having to ignore business anticipated to insufficient capacity and less interruption of production

One large job cost less than few smaller assignments and scheduled to inflation, will construction cost be higher in the future

Incrementally - build as capacity demand grow

Less dangerous if forecast must materialize and cash aren't teid up in convenience of other investment possibilities

Appropriate for new products

May recommendation would be that after Natref has decides what strategy they would like to take for another 5 years regarding long-term capacity requirements they have to analyze several suggestion in a conclusion tree - the expected value methodology.

The decision point could be the 5 time strategy, regarding this Natref need to ascertain more than one change event that will come with an expected value. This will allow Natref to see all options avaiable for decision making and the possibilities for event. When all the choices available value are calculated, Natref need to work back from the end of the tree to the beginning of the tree, this will allow Natref to determined the expected value of each step and enough time and money to look for the genuine long-term requirements for the next 5 years.

WAYS TO Counter-top INSUFFICIENT CAPACITY DURING Top DEMANDS/SHUTDOWNS

If the goal of capacity planning is to provide satisfactory service levels to users in an inexpensive manner, then your lack of capacity would be not being successful in providing satisfactory service levels. Of course, if capacity planning is thought as the process that is used to regulate how much capacity is necessary and when it is necessary, to be able to manufacture better products or production of a new product, then insufficient capacity is the situation where a goal is not achieved, due for some or other constraint in the process.

According to a report conducted by Sylvester, Lendon and Bevan (2004:1) they confirm that to constantly add capacity is not really a viable treatment for counter the lack of capacity. In their study they had a need to properly understand and control patient move in a hospital. This is taken from the capability at a refinery, however the basics would still be the same. If one compare this directly to the Natref situation, the assumption would be that to include capacity wouldn't normally necessarily counter the lack of capacity.

Natref happens to be in the process of building another storage facility. The cost of adding this facility is high, about R300 million. Hence, it is not possible to constantly add capacity or storage area facilities every time it appears that a lack of capacity will arise. Natref counter too little capacity by erecting a fresh storage facility, by ensuring that their estimations and planning the given shutdown/optimum period is exact. Although the product is stored routinely, to ensure that on the day of the shutdown or when the peak demand starts off, it has sufficient stock to continue with the demand or source in the excess situation, Natref should research the possibilities of utilising exterior resources of capacity. These safe-keeping facilities could are the underground tanks of the individual filling stations, and/or determining the product that will likely be short or that should be stored for future use also to expand the storage of this product and lessening the storage space of the product that would not be utilized as frequently.

According to TeamQuest (www. teamquest. ocm/capacityplanning Date gain access to 12 Feb 2010): there are five noteworthy explanations why capacity planning fails. It would also be possible to trace these reasons back and make a reference to the lack of capacity. If the planning fails the capacity would almost certainly fail as well. These five reasons are:

1. Imperfect data;

2. Lack of common goals;

3. Trendy versus modelling;

4. Too small view;

5. Imperfections in the prediction method.

If these five fact is taken into account when the capability planning is done, it would improve the opportunity of success for a job.

Further there are three important considerations considered when adding capacity. They can be:

1. Maintaining system balance;

2. Regularity of capacity; and

3. Usage of exterior capacity.

When analysing current capacity there are four basic steps that may be used to assist you:

TeamQuest (www. teamquest. ocm/capacityplanning Particular date gain access to 12 Feb 2010) recognizes the following four steps:

The first step would include evaluating the measurements of any items referenced in the service level agreements with their goals. This will signify if the system has enough capacity.

The second step would include checking the utilization of resources. This research recognizes highly used resources which may prove problematic at present or in the future.

The third step would include looking at the source of information utilisation for every single workload. Determine which workloads are the major users of each resource. This will reveal the workloads that are making the greatest demands on the machine resources.

The fourth step is to determine where each workload is spending its time by analysing the the different parts of response time. Allowing you to determine which system resources are in charge of the greatest part of the response time for each workload.

When calculating capacity you will need to consider the next:

Design capacity: the maximum output that may possibly be achieved.

Effective capacity: The maximum possible end result given something mix, scheduling issues, machine maintenance, quality factors, and so on.

Actual end result: the speed of end result actually achieved.

Measuring of System Performance:

Efficiency: the percentage of actual outcome to effective capacity

Utilization - the ratio of actual productivity to create capacity.

PLAN FOR FUTURE YEARS:

To make sure that you can meet the requirements of the market in a year's time, you need to do capacity planning predicated on the forecasted handling requirements. You need to know the expected amount of inbound work, by workload. That will enable you to calculate the perfect system settings for gratifying service levels.

Future control requirements can come from a variety of sources. Input form management may include:

Expected expansion in the business

Requirements for putting into action new applications

Planned acquisitions or divestitures to mention but a few.

Additional, future control requirements may be discovered from trends in historical measurements of incoming work such as purchases or transactions.

After system capacity requirements for the future are determined, a capacity plan should be developed to prepare for it.

The first rung on the ladder in doing this is to make a model of the existing configuration. From this starting place, the model can be altered to reflect the near future capacity requirements.

If the results of the model suggest that the existing configuration will not provide sufficient convenience of the near future requirements, then your model can be used to evaluate settings alternatives to find the optimal way to provide sufficient capacity.

When considering capacity planning there are even more issues to consider. Guidelines. Since the later nineties refineries have extended capacity significantly, development capacity has increased immensely. As refineries acquired bigger, it was expected that emissions would increase as well. Environmental problems have grown to be a huge issue because of the large expansion in demand for product. Goals to achieve the environmental benchmarks and best practices are a huge part of capacity planning and development. Finding newer and better means of producing more product and faster and cheaper.

New modern techniques have challenged organisations to rethink just how they conduct business both internally and externally. To regulate how successfully and effectively their entire supply chain is handled. The petroleum refining industry has effectively embraced the program answers to optimise the business supply chain to increase the income and create order in the chaos of several opportunities and obstacles.

The supply string of the petroleum refining company consists of a wide spectrum of activities, starting form crude purchase and crude vehicles to refineries, refining operations, product transportation and finally delivering the product to the end user. The nature of the value chain is such that its economics are extremely complex and heavily linked. Including the process of selecting the right crude is liked not only to the travelling costs involved with delivering to the refinery, but it must consider the refinery construction, capabilities and constraints in converting the crude into products, as well as the product amount and price fluctuations.

Software solutions based on Linear development (LP) technique have emerged as leaders among various mathematical optimization techniques available to optimize the complete supply chain form crude analysis and selection, production planning and product logistic planning

Refinery planning form the building blocks for the business enterprise decisions which may have the biggest effect on refinery profitability. The following are plans that should be considered:

Annual plans

Monthly moving plans

Weekly Plans

Strategic Plans

Profitability improvement plans

LONG TERM CAPACITY PLANNING

According to the Encyclopaedia of Business, 2nd ed. The next is described under permanent capacity planning:

Over the long term, capacity planning relates generally to proper issues. This calls for the firm's major creation facilities. This type of planning also will involve location decisions, technology and transferability of the process to other products.

Long term capacity planning may progress when short-term changes in capacity are insufficient.

Long term concerns relates to overall degree of capacity

Determined by forecasting demand over a period horizon and then converting those forecasts into capacity requirements.

These will be determined by tendencies and cycles.

Trends are discovered in how much time the pattern might persist and the slope of the trend

Cycles are determined by the approximate amount of the cycle and the amplitude of the cycle.

SHORT TERM CAPACITY PLANNING

According to the Encyclopaedia of Business, 2nd ed. The following is explained under short-term capacity planning:

In short-term, capacity planning the matter is more on issues such as arranging, labour shifts, and managing source of information capacities.

The goal of short term capacity planning is to take care of unexpected shifts popular in an efficient economic manner.

The span of time of short-term capacity planning is anything from a few days to half a year.

Short term factors relate to probable versions to capacity requirements and are concerned with seasonal fluctuations in demand.

Above we have reviewed the steps to follow when doing capacity planning. Now we will discuss Capacity planning techniques to use.

Four types of procedures when doing capacity planning:

Capacity Planning using Overall Factors (CPOF)

Capacity Bills

Resource profiles

Capacity Requirements Planning (CRP)

The first three are rough-cut approaches (involving analysis to identify potential bottlenecks) you can use with or without processing resource planning (MRP) systems. CRP is utilized in conjunction with MRP systems.

A failure to understand the critical aspect of taking care of capacity can result in chaos and serious customer service problems. When there is a mismatch between available and required capacity, modifications should be produced.

Note to Natref:

Capacity identifies the top limit or roof on the strain that an operating device can handle

Basic questions that needs to be asked to determine capacity planning is,

What kind of capacity is needed?

How much is necessary?

When could it be needed?

These relate to the potential effect on the ability of the organisation to meet future demands for products and services.

It indicates the relationship between capacity and operating costs.

It provides information about the original costs involved

And it offers you with information to look for the long term determination of resources.

When considering Natref or any olive oil refinery for that matter you can assess their capacity by deciding their inputs, which would include the refinery size and their outputs the number of gallons/litres of gas per day.

DEVELOPING CAPACITY ALTERNATIVES

When considering alternatives it is concerned with

Specific considerations

Identify the perfect operating level

Quantitative Aspects reflect the following monetary considerations

Will an alternative be economically feasible?

How much does it cost?

How soon can we have it?

What will functioning and maintenance costs be?

What will its useful life be?

Will it be compatible with present staff and present functions?

Techniques useful in analyzing capacity alternatives from an economical standpoint include cost size analysis, financial evaluation, decision theory and waiting around line analysis.

Qualitative Aspects

Public opinion

Personal preferences of managers

BEST PRACTICES

According to Menezes & Wicker the next measurements are vital to ensure safe and useful refinery functions:

Accuracy,

Repeatability and

Reliability.

It is required to keep a balance in competing basic safety and efficiency motivations. An equilibrium is necessary between security and efficiency motivations. An example that might be brought up is fuel-air cross restricting control. A ratio between fuel and air flow rates have to be maintained. Excessive energy can cause too much smoking, and environmental risk and unburned petrol in the stack can cause a safety hazard. The web extensive air though it ensures safe an non polluting system is incredibly expensive, therefore rather than used to make heavy steam, a combustion energy is utilized to warm up air.

According to Menezes & Wickber they state with a perfect way of measuring and control system, it might be possible to maintain fuel and air at the precise stoichiometric ratio. In practice though there is absolutely no ideal system due to the fact that excess energy greatly outweighs the purely economic outcomes of unnecessary air. Most refineries operate with the excess are safety buffer.

Therefore maybe it's said that sometimes lowering costs are not always considered as best practices, lowering security risk and environmental risk sometimes outweigh the operating costs in regards to to guidelines.

Best practices for just about any process measurement as described by Menezes & Wickber, would mean that the first step would include that they have to determine required dimension performance for every single application. As mentioned above performance in a flow context includes precision and repeatability over the mandatory flow range. It is important to understand that reliability and repeatability requirements will most likely vary at different flow rates. A good example could be that in some applications high correctness may make a difference at higher stream rates, because that's where the procedure is operating the vast majority of enough time.

To perseverance of required measurement performance should be made by those who understand the financial, environmental and safety impact of measurement uncertainty.

The second step is to quantify the operating conditions which are not controllable. These measurements could are the following:

Expected ambient temps variation

Maximum static brand pressure

Static lines pressure and temperatures variation (for gas and steam)

Line temperature variation (for liquids)

Maximum allowable everlasting pressure loss

Flow turndown

The third and final step includes the selection of hardware, the set up and maintenance procedures. These will ensure that measurements provide their required installed performance under the expected operating conditions. An individual can for example:

Select a transmitter which has better or worse performance under a given set of operating conditions.

Use pressure and temp settlement in a gas or heavy steam application or never to use pressure and temperature compensation.

Calibrate the transmitter frequently.

In the case of DP circulation meter, size the principal element for a higher or lower differential pressure.

While the first and second steps entail gathering data, the third step requires calculations, which may be facilitated with a spreadsheet. Many dimension systems don't and won't give the same performance under lab conditions just as the real world. Usually the performance would be worse in the real world conditions. Using published technical specs and expected conditions, it is possible to assess prior to set up the impact of these real world effects on installed way of measuring repeatability.

Note to Natref

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