Olefins/Polyolefin Supply Chain TQM Cost Reduction
Applications: Rigorous corporate and
process plant OSA (Operation Simulation Analysis model-based expert systems have been
implemented for global olefin/polyolefins, VCM/PVC corpo rate restructuring, reengineering
, TQM cost reductions real option analysis applications They provide integrated corporate/
plant daily global strategic information management and process plant operation
model-based predictive control; tracking global central banks monetary policy impact on
economic, financial crisis, global crude oils, naphtha, LPG, olefins/polyolefin and
financial derivatives prices for costs and financial risk hedging and procurement; olefin,
polyolefins products competitive pricing, marketing and sales, inventory strategy;
investment, credit, markets , profit margin risks control; process de-bottlenecking;
corporate managers, technical, operating staff on-the-job training simulators
Strategy: These systems have been developed from the past 12 years daily US, Asian,
European Wall Street Journal, Business Week; Economist, IMF economic ,NPRA ; global
central banks monetary, fiscal policy, economics, daily global crude oils, naphtha, LPG,
fuel oils, olefins, polyolefin, VCM/PVC spot, contract prices data, corporate/ plant
operating history (including normal, crisis, emergency operations); literature, patent
search; management and plant operators' expertise, market psychology. The latest
neoclassic economy, thermodynamic and kinetic theories, fuzzy logic, neural network and
chaos theory have been applied to develop expert system-based decision simulators.
Monetary policy impact on feedstock, oils, olefin/polyolefin prices, full range feedstock
compositions, operating load, severity change impact on olefin/polyolefin reactors yields
with average error below 1.5%: These systems simulate global central banks monetary policy
impact on daily economy, financial markets, corporate/ plant decision- making, features
include:
* Real options analysis for global credit, interest rates, currency
exchange rates, profit margin , stocks, financial derivatives risks
* Real options analysis for global fuel oils and feedstock price forecasts and procurement
strategy
* Real options analysis for global olefin/polyolefin competitive spot, contract pricing,
forecasts, marketing and sales strategy
* Corporate finance, marketing, and procurement managers Real Options analysis on the job
training
* Olefin/polyolefin reactors yield improvement, debottlenecking for full range gas, liquid
olefin feeds, operating severity changes
* Process Startup, emergency shutdown, troubleshooting, waste minimization energy
conservation, preventive maintenance.
* Integrated Procurement, Inventory-Production, Marketing, Sales supply chain strategy for
e-commerce cost reduction
Operations Management Implementation: The OSA consultant (the
author) will conduct restructuring, reengineering, cost reduce- tion operations review,
setup goal mission, performance oriented cross-functional OSA teams to develop, implement
the program.
Economics: Up to billion dollar cost reduction with improved quality and market
shares without staff reduction, hardware investment.
Commercial Applications:Three olefin/polyolefin applied, 35 TQM cost reduction
workshops offered to global managers
References:-All by Dr. Warren Huang "Improve Process by
OSA", "Improve Naphtha Cracker Operations", in 12 paper series in
Hydrocarbon Processing, OGJ, 1979-1983,' Control of Cracking Furnace", US patents,
1981,1982, "Goal, Mission Performance oriented Design/Operations Simulations Analysis
predictive control Maximized Olefin Productivity, Flexibility", AIChE 1983 Diamond
Jubilee, 1990, 1999 AIChE annual meeting, Dallas, World Congress II, II, IV, Canada,
Tokyo, Germany,1983,1986,1991, OSA based Refinery, Olefin CIM" Singapore, Beijin,
Antwerp, Dallas,1989, 1992,1995, 1999," Monetary Policy Impact on global economy,
financial markets, commodity, stock prices", Washington DC, Rome, Barcelona, London,
Taipei, Bangkok 1999
Licensor:OSA Int'l Operations Analysis, San Francisco, California
Services Available:
A. One-two day workshop to organize top management,
corporate plant executives into goal, mission, performance oriented real options analysis
OSA teams to review, operations, and recommendation for procurement, investment,
marketing, sales, production strategy for billion dollar cost reduction and markets shares
improvement without staff reduction, hardware investments
B. Annual memberships providing regular on the job training and tracking OSA teams goal,
mission, performance
C, Full OSA program, providing full OSA decision simulators and OSA teams management
Contact: Dr. Warren Huang
Website: www.osawh.com
email: whuang@osawh.com /
1999 Copyright osawh.com/ Dr. Warren Huang 1999 osawh.com/