A Study Into The To Petrochemical Industry Information Technology Essay

A Study Into The To Petrochemical Industry Information Technology EssayThe petrochemical exertion has been one of the fastest growing industries. This patience not only has an immense importance in the growth of economy of the country but as well in growth and development of manufacturing industry .It provides the tooshie for manufacturing.The petrochemical industry is oligopolistic in nature. At a large extent there were only four major companys viz. Reliance Industries Ltd (RIL), Indian Petrochemicals Corporation Ltd. (IPCL), Gas federal agency of India Ltd. (GAIL) and Haldia Petrochemicals Ltd. (HPL) who used to dominate the industry. The recent amalgamation of IPCL with RIL has made the industry more concentrated further, as they jointly account for over 70% of countrys total petrochemical capacity.CharacteristicsThe petrochemical industry is a cyclical industry. This industry is dominated by volatile feedstock prices and sulky demand. India consumes one of the lowest per ca pita consumptions of petrochemical products.GrowthDuring 1970s, the petrochemical industry came into existence. The rapid growths for this industry were seen in eighties and 1990s. The actual reason for this growth was there was a huge demand for petrochemicals in India during that time at an annual rate of 13 to 14%. It is besides known for rapid expansion of capacity. In India the average annual growth is 14 to 16% over 2007-2011. However, the industry suffered setbacks in 2008 due to change in the price of crude oil . It will be tough for Indian petrochemical industry by 2012 to plug the deficit of 5mn TPA of ethylene and 4mn TPA of polymer.Presently India has trio gas-based and three naphtha-based cracker complexes which has capacity to produce 2.9 MMT of ethylene annually.What argon petrochemicals?Petrochemicals are products which are derived from oil color . Many chemical compounds which are derived from petroleum are obtained from fossil fuels want coal or natural gas, o r from renewable sources such as sugar cane.Two petrochemical classes are olefins and aromatic. Olefins include ethylene and propylene, and aromatics includes benzene, toluene and xylene isomers. vegetable oil refineries produce olefins in chemical plants by steam cracking of natural gas liquids comparable ethane and propane and aromatics by fluid catalytic cracking of petroleum fractions. Aromatics are produced by catalytic reforming of naphtha, Olefins and aromatics are the building blocks for solvents, detergents, and adhesives. Olefins are also the basis for polymers and oligomers used in plastics, resins, fibres, lubricants, and gels.Primary petrochemicals depending on their chemical structure are divided into three groupsOlefins include ethylene, propylene, and butadiene. Important sources of industrial chemicals and plastics products include Ethylene and propylene . Butadiene is used in making synthetic rubber.Aromatics include benzene, toluene, and xylens.. The raw tangib le used for preparing dyes and synthetic detergents is benzene, and that for preparing isocyanates materials used are benzene and toluene. MDI and TDI are used in making polyurethanes. Manufacturers use xylenes to produce plastics and synthetic fibers.A product of ampere-second monoxide and hydrogen can be used to make ammonia and methanol. Ammonia which is further used to prepare urea which can be used as a fertilizer. Methanol is used as a solvent as well as a chemical intermediate.ANALYSIS Manufacturing and productionManufacturing is a subprogram which uses labour and machines to produce goods for use or sale. It is usually applied to industrial production where the raw materials are converted into done for(p) products.Manufacturing and production information systemA manufacturing system is a system which facilitates for a quicker and an efficient change from making one product to an separate product, using often robotics and other automation. Usually the change is computer- come acrossled.Manufacturing MISThis consists of 3 stepsMaterial requirements planning (MRP)It determines when finished products are neededIt determines the deadlines accordinglyManufacturing resource planning (MRPII)Net conk out schedulingImproves node serviceimproves productivityJust in time (JIT) inventory systeminventory and materials that are delivered right before usageProduction systemA production system is a computer program which provides us with some form of artificial intelligence primarily consisting of a set of rules about behaviour. These rules which are termed as productions are a basic representation which is useful in automated planning, expert systems and action selection. This system provides us with mechanisms which are necessary to perpetrate productions in order to achieve some goal for the system.South Asian Petrochem Produces Management Reports in Minutes with New ERP SolutionSouth Asian Petrochem which is Headquartered in Kolkata, India, manufactures and markets polyethylene Terepthalate (PET) resins which is used in the packaging of mineral water, carbonated soft drinks, edible oil, and pharmaceuticals. The organization operates a 200,000-ton per annum (TPA) accomplishing plant which is export-oriented at Haldia in westward Bengal, and records a 43% increase in profit in the last financial year before tax. On July 26, 2008, Petrochem discussed to contribute around 70% of the sign equity required to establish a 315,000 TPA PET plant in Egypt at its annual general meeting.Haldia plant is going into commercial production in September 2003 to support planned growth. The Petrochem needs to implement an enterprise resource planning package. The organization engaged PricewaterhouseCoopers (PwC) India to develop a strategic information system plan and undertake an enterprise-wide business transformation exercise based on Oracle E-Business Suite.New PET Plant Delivers Product QualityZimmer AG Germany has designed and built a system for S outh Asian Petrochems Haldia plant using leading-edge technologies. The PET produced by the plant which is bottle-graded is clear, strong, and they can be easily moulded to various(a) complex shapes, that give customers scope to customize their designs to meet the brand and the market requirements.With continuous polycondensation lines, it has started delivering a broad product range and operational flexibility. A DCS which is distributed control system optimizes the process line performance, and an uninterrupted supply is ensured by a captive power plant. The Haldia facility ensures that the product quality meets the exacting customer standards. With the organizations headmaster marketing team and technical services staff that are available around the clock to respond to customer requirements controls the quality.South Asian Petrochem has migrated from its existing change course business accounting and inventory management software system to a system which is highly functional, scalable, and powerful enterprise resource planning system to take total advantage of the potential of the products and quality of the staff.ERP Provides Platform for GrowthSouth Asian Petrochem has opted to implement a system which is based on modules from Oracle E-Business Suite afterward reviewing a range of competing solution like one of which includes SAP to undertake preventive keep that has tremendously reduce production losses from equipment failure.If right maintenance is taken into account then the costs incurred would be in fixing the equipments rather than ensuring that the parts are maintained and replaced in line with a correct schedule. Oracle also gives the system the controls that are necessary to optimize the equipment maintenance and usage throughout the plant and it also meets the customers demands.South Asian Petrochem has planned to desegregate the Oracle Fixed Assets with the Oracle Enterprise Asset Management to ensure that it can not only track its as sets but it can also happen upon the costs incurred in maintaining the individual items..Timely ReportingThe Oracle system allows South Asian Petrochem to prepare management reports which gives critical updates on the inventories ranging from raw materials to finished products within minutes and also on those areas which affects the commercial operation of its plant. It is reported that using this system a report can be prepared that combines month to date production, dispatch, finished stocks, and orders that can be produced in a minute to 90 seconds. Before implementation of Oracle, the reports were not obtained nearly as cursorily or in as much detail. Using oracle discoverer better-informed and quick business decisions reports can be prepared which improves the customer service.Streamlined ProcessesSouth Asian Petrochem has the ability to closely monitor its dispatch schedule, quality control and stock position that allows the organization to adhere to its customers commitment s. Any grievances caused to the customers can be attended quickly by identifying the lot which was dispatched can be isolated and dealt with any quality aspects.The Petrochem is also planning to integrate the DCS which is governing the plant with Oracle to ensure proper production schedules and information which can be shared in an automated way between the systems. This would help the organisation in further reducing the work and time which is required to reconcile the jobs and to manage the consumption of the raw materials impellingly.Why Oracle?South Asian Petrochem has selected Oracle E-Business Suite as a foundation for its new system after undergoing detailed evaluations of alternatives from Navision, Ram co, and SAP.Oracle has a strong philosophy and business model, as it delivers greater value compared to the other competitors. overly the solution modules can be implemented in phased fashion.Implementation ProcessAs the manufacturing plant at Haldia is charged with impleme nting Oracle E-Business Suite to improve process control, PwC has divided this project into two phases.The first phase which had been started in May 2003 was completed in September 2003 included spanned purchasing ,management of orders , inventory and financial modules like fixed assets ,accounts payable and receivable , general lodger and cash management.The second phase was commenced in January 2004 which covered the entire Enterprise Asset Management and the cortege for process manufacturing, including the Formula Management, Production Supervision, Quality Costing, and Manufacturing Accounting Controller.The first phase was over in just four months which highlighted PwCs sound project management and gave an effective solution for delivery .The phase was completed in October 2006 and it has allowed South Asian Petrochem take full advantage of the stability of the database. This software has not only compound functionality of the newer applications suite but also has ensured co ntinued support. This software is being used by a huge range of staff that is located both at the plant as well as at the headquarters, including also the senior management and accounts employees.Conclusion and FindingsThe increased stability of Oracle E-Business Suite has given the authorization to proceed with the integration. The company is determined that the accuracy of the records would increase and our staff resources could be redirected to higher value jobs. They would be a lot more efficient and would also achieve faster reconciliation of information and reduce the consumption of raw materials by integrating the oracle software with the control systems located at the plant.With this software the company has started producing management reports within few minutes giving all the important details about production, dispatch and information regarding the finished stock.It has also reduced the outages due to breakdown of the equipments by improving the preventive maintenance sc heduling.