dss+ helps client reduce downstream energy and utility losses

Facing notable energy losses across its installations, a Middle East-based global energy and chemicals company consulted with dss+ to enhance its energy management practices within the context of a lean transformation.

The client company – that operates three oil refineries, three power plants, and one petrochemical plant – was negatively affected by not being able to properly visualize energy and utility losses across its installations.

Following a rigorous assessment of losses, dss+ helped its client develop KPI dashboards and a new performance management process to cut back energy and utility losses and better calculate the financial impact of those losses.

“During implementation, there was a strong focus on cost reduction to remain competitive in the underperforming energy market. After running the new system and practices for 1.5 years, the energy and utility pipeline reached an annualised value of $30 million,” according to dss+.

Within the first six months of 2021, the overhaul allowed the client to save $5 million in energy and utility losses. That benefit mostly matched the projected amount that the company expected to save – some months exceeding expectations, while other months not.

More than 40 improvement opportunities were identified and prioritised, based on feasibility and potential benefit. When implementing the selected initiatives, relevant subject matter experts were involved to contribute technical perspectives and to ensure that the initiatives’ scope and objectives were sound and met.

To embed a cycle of continuous improvement, more than 250 shift supervisors and engineers were trained on the Production and Energy Loss Accounting (PELA) system to ensure continual focus and sustainability of the program. Frontline shift staff were meanwhile empowered to reduce energy and utility losses whenever they notice deviations through the PELA system.

According to dss+, the implementation contributed to enhanced energy management practices and reduced energy cost.

“Embedding a continual-improvement culture and work processes throughout the organisation, empowering the team to manage energy during day-to-day operations, and having an integrated energy & utility loss accounting system in place will help organisations with an ever-growing energy improvement pipeline to properly achieve sustainable results,” stated dss+.