Reduction of benchmarking processes through increasing the level of automation of generating reliability KPI reports at Pilipinas Shell Petroleum Corporation (PSPC), Tabangao, Batangas.

Date

4-2010

Degree

Bachelor of Science in Industrial Engineering

College

College of Engineering and Agro-Industrial Technology (CEAT)

Adviser/Committee Chair

Arvin Joseph M. Elauria

Committee Member

Marc Immanuel G. Isip, Kathleen B, Lee

Abstract

Shell Corporation's refinery located at Barangay Tabangao, Batangas is the manufacturing arm of Pilipinas Shell Corporation (PSPC) in the country.It boasts multi various crude processing equipment that supplies almost 40% of the country's petroleum needs. The company incurs an annual cost of Php 880,000 for its benchmarking methodologies in its conduct of business in order to identify the best practices and bring about savings for the company. This process relies heavily on the analysis of reports containing the performance metrics of the site, accomplished by the personnel assigned for the job. With the sheer volume of data to be filtered and processes for Reliability reporting the process takes an average of 4.72 hours, 87.5% of which allotted only for data generation. This lengthy duration of report generation defeats the entire purpose of the benchmarking process since data were barely analyzed for improvements. Moreover, delays incurred in generating these reports posed a constant threat for the entire site's operation since results from these reports are used as inputs for the site's refining operations. To resolve the problem, the study was conducted with, the main objective of reducing the time allocation top only 10%, as desired by the company's managers. Cause and Effect analysis revealed that the low level of automation and the lack of a prescribed template is the main reason for the lengthy report generation. For this reason, alternatives were generated and evaluated in order to resolve the identified problem namely: Information System Integration, Spreadsheets Redesign and the Status Quo. Out of the three alternatives generated, the spreadsheets redesign was chosen as the most appropriate since it is the one favored by the management for its cost, impact and ease of implementation. The redesigned templates eliminated the redundant task of manually fetching and sorting data from the respective resources to the reporting templates. This was done by using the macro functions of MS Excel to automatically fetch the data from the respective sources and perform the necessary calculations. Using the redesigned templates, past data were used as inputs and it was found out that the average generation time was reduced to only 8 percent. This reduction translates to Php39,340 worth of annual savings from the inefficiency alone and an undetermined amount of savings from improvement opportunities brought by the increased data analysis time. To ensure that the personnel can easily adapt in using the redesigned spreadsheets, an easily-to-follow user guidelines was create. These user guidelines contain step by step procedures on how to use the templates to maximum user efficiency. Although the chosen alternative has reduced the total generation time to the desired level, it is still recommended that the company pursue information systems integration which will fully automate not only the Reliability report generation but the entire benchmarking report generation as well. Regardless of the initial costs being significantly higher than the report generation as well. Regardless of the initial costs being significantly higher than the chosen alternative at Php90.480, this cost will be distributed to the functions and modules that would be used in the other reports to be automated.

Language

English

LC Subject

Industry analysis, Production --Management--Case studies

Location

UPLB College of Engineering and Agro-Industrial Technology (CEAT)

Call Number

LG 993 2010 E66 M37

Document Type

Thesis

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