Final Report
Final Report
Abstract
The utilization of idle tank for acid storage and supply project is defined as optimization of continuous
process which involved of acid dosing in reaction part and require certain amount to produce on-spec
product as well increase the production rate. The objectives of the project are to acquire the economic return
and materialize other potential benefit through the utilization of idle tank for acid storage. The project
applied the concept of project life cycle which consist of four main phase, initiation phase, planning phase,
execution phase and closing phase. The project management methods and tools are applied in every part of
the project to ensure the successful completion. The example of methods is developing of Gantt chart for
project timeline and application of cause-and-effect diagram to analyze the problem statement. The results
are compared between the project objectives and project achievement to evaluate the success rate of the
project and its overall performance as well as the effectiveness of the project life cycle implementation in
the project. In closing of the project, the benefit is realized and delivered the expected return but a still have
a room for improvement through the identified lesson learnt. The result of the project indicates the
successful project and turn out become a guideline or role model for the future process optimization project
in the organization.
1 Introduction
The project life cycle is a series of phases that a project goes through from start to finish. It provides a
framework for managing a project. It helps to ensure that all activities and deliverables are completed in a
timely and efficient manner. It also helps to identify potential risks and issues early on, so that they can be
addressed before they cause problems. The Project Life Cycle helps to ensure that all aspects of a project
are considered and that it is completed successfully. It provides a roadmap for projects so that everyone
knows what needs to be done and when it needs to be done. Every project follows the same basic steps
which consist of establishing goals, developing a strategy to achieve those goals, and putting that strategy
into action. The phases of a project’s life cycle are generally consistent across projects, even if their names
may vary significantly from one project manager or agency to the next. At each step of the project, it
specifies where to begin and where to move next.
The project life cycle typically includes the following phases Initiation, Planning, Execution, Closure.
Each phase of the project life cycle has its own set of activities and deliverables. The project life cycle
applies in most of the project in the world and it is also the important part to develop the project in the
chemical industry especially for process improvement that will become additional benefit to the whole
process. Considering to that, the project of Utilization of Idle Tank for Chemical Storage and Supply will
show the application of project life cycle.
In chemical industry, process design and optimization is one of the key areas in chemical manufacturing. A
chemical process. The ultimate goal of chemical process design and optimization is to develop a cost-effective
and safe process that can produce high-quality products at a high yield. Moreover, optimization involves analyzing
and improving an existing process to make it more efficient, cost-effective, and environmentally sustainable.
Chemical process design and optimization involves several stages, including conceptual design, process
development, detailed design, construction, and operation. The first step in chemical process design is to define the
goals and objectives of the project, including the desired product properties, production rate, and cost.
Based on the textbook with title Optimization of Chemical Processes (Eduardo D. Glandt et al., 2001), in
a typical industrial company, process design and optimization can be used in three level which are
management, process design and equipment specification, and plant operations. Most of management
decision for optimizing and process design have the potential to be significantly error when put into practice
especially the project timing. Towards these ultimate goal, framework of project life cycle will be crucial to be
applied for the project title of Utilization of Idle Tank for Chemical Storage and Supply in order to achieve project
completion. This statement is to support the importance of project life cycle application in this project.
In addition, the report will cover all part of the project and its relationship with the project life cycle. In
section 2 which is the background of the report present the relevant info such as tools or equipment that has
been used, and the discussion of technical paper or book related to the topic of this project. Moreover, the
project method in Section 3 covers explanation on the approach to the project problem and how the project
life cycle can be used to solve the problem with the application of project design solution. For next section
which is summary is explained the important information and result together to create the strong supporting
statement. In last part of this report, conclusion is discussed lesson learnt and potential future improvement
for the project.
2 Background
The project definition is describing the tank was used before for auxiliary chemical storage and installed
with pump to supply the auxiliary chemical to the process reaction. However, after several study and
observation has been made, auxiliary chemical has no significant impact towards the process reaction. Trial
has been done by stop supply the auxiliary chemical and the result was the product still on spec. Then,the
tank was cleaned and left as idle tank. From that, considering the interruption of process only occur during
the repetitive of replacement of acid in Intermediate Bulk Container (IBC) which act as continuous chemical
dosing in process reaction, the option to utilize the idle tank for Nitric Acid storage and supply was chosen.
Then, it is agreed by the involve project team and the stakeholders the idle tank can be used to find out the
unrealized benefit based on the study. The usage of idle tank is categorized as process optimization and
create the opportunity to improve in future design and production capacity.
The project set up the objectives to detail up the important factor to be focus and taken care of to ensure the
successful project completion. The project objective need to be aligned with the organization goal. The
objectives of the project are:
1. Increase production by eliminate the process interruption. (Deliver reliability and customer
satisfaction)
2. Save expenses in terms of acid storage. (Cost saving)
3. Eliminate the manual handling job at site for acid IBC replacement (Manage risk)
4. Reduce the risk of Nitric Acid spillage as well as the storage in chemical warehouse. (Manage
risk)
One of the technical papers with the title Project Team Members and Project Goals and Objectives,2016,
has studied that the way an organization evaluates the performance of the project team has an influence on
how it interprets project goals and objectives and subsequent behaviors. From that, a good relationship
between project managers and team is very crucial in order to achieve successful project completion. The
project team are segregate to the roles as in Table 1.
Group/Individual Roles
Plant Operator • Trial run
• Unloading activity
Project Manager • Project weekly meeting
• Management of change (MOC) meeting
• Safety review
• Briefing and training
Identification of project scope, project stakeholders and project’s objective are the essentials part in project
initiation phase. During this phase, clarifying what stakeholders expect out of the project and what exactly
the project is aiming to achieve. In addition, a business problem or opportunity is identified, and a various
solution option is identified. The next step, a study is conducted to investigated whether each option
addresses the business problem and final recommended solution is then selected for execution. Within the
initiation phase, the business problem or opportunity is identified, a solution is defined, a project is formed,
and a project team is appointed to build and deliver the solution to the customer.
The project proceeds with the discussion within the project team and the final solution to discontinue the
tower to materialize the benefit and study for process improvement opportunity.
There are many processes optimization in the chemical industry mostly focus on the objective of energy
and cost saving. Most of the project need the starting cost in the budget to start the project. Several points
are identified in this benefit realization via process optimization project to shows the project different and
its uniqueness of the solution compare to the other optimization project within the same industry. The
identified uniqueness of the project solution as per list.
Most of the project will require modification and initial investment to start the project. Other than that, the
utilization of one of the company’s assets and used it to enhance the process and the production rate and
quality. The report will elaborate on the next part of project life cycle which are planning, execution,
monitoring and controlling in the Methods. This includes the method and tools use in the to aid the project
life cycle implementation.
3 Methods
The first approach of the project is by identifying the pain point of the current process if the project not
conducted. The identified pain point divided into three points.
1. Productivity pain points. Extra time taken and effort needed to replace the Nitric Acid IBC in order
to ensure process running in good condition. The potential time and cost saving if the project
implemented especially for operation and chemical warehouse.
2. People pain points: Repetitive manual activity during changeover Nitric Acid that can bring down
the motivation of the plant operator. Plant operator will be motivated if their ideas take into
implementation and perform the productive task that can benefit to them and organization.
3. Financial pain points: Unrealized savings in purchase of Nitric Acid in different types of containers
as well as the utilization of idle tank and potential production increment. Increased in production
can boost the shareholders and customer satisfaction.
The next step is the project team plot the implementation plan of the solution for the project based on the
problem definition in the background part. The method use is 5W1H and the purpose is to identify the
important answer for every of the project.
What is the problem: Interruption of process parameters due to repetitive manual replacement job of acid
IBC
Why the project is initiated: To optimize and utilize and idle tank for process improvement and cost saving
Where the project take place: One of the process units in chemical complex in organization.
Who are the project team: Form of project manager and plant operators, technologist, and operational
excellence team as an expert.
When the project timeline: Planning in January 2022, Execution in July 2022.
How the project implemented: Change the acid storage from IBC to tank
This answer will help to guide the project to the next step. Apart from the identification of project team
members, the stakeholder that directly impacted from the project and need to be managed with utmost care
are also identified by using the power interest model. The power interest model method consists of four
group to be identified and involve two main steps.
Step 1: Identified all the stakeholders by list of question related to the project
Low power low interest – required less effort than the rest
Stakeholder Expectation
Maintenance Reliability
E&I Preventive and Maintenance
Environment Reduce risk
Product Chemical Warehouse Meet loading/unloading target
Local Community No pollution
Laboratory Chemical sampling & waste handling
Meet Inspection Target
Inspection Meet Supply and Demand
Production Planner
Table 3: Low Power, Low Interest Stakeholders
High power low interest – should be kept satisfied
Stakeholder Expectation
Process Safety Meet Process Safety Requirement
DOSH Meet Safety and Health Standard
Table 4: High Power, Low Interest Stakeholders
Stakeholder Expectation
Other Process Complex Sustainable Operation
Operational Excellence Supporting Innovation ideas
Table 5: Low Power, High Interest Stakeholders
High power high interest – should be managed with utmost care. High Power, High Interest Stakeholder are
prioritized since they give the support and most impacted by the result of the project.
Stakeholder Expectation
Operation Management Productivity
Business Management Safety, Reduce Risk
Major Shareholder (B, P) Clean Environment
Technologist Cost Saving
Operator Training
Table 6: High Power, Low Interest Stakeholders
Then, the project proceeds with identification of the problem using cause and effect diagram to come out
with the potential root cause of the problem. As refer to the book titled Tools For Decision Making,3rd
Edition, 2022 which brings the purpose to identify all the factors that contribute to the success or failure of
a given process and to elicit ideas about steps to minimize problems or exploit opportunities. The key to the
effectiveness of this cause-and-effect diagram is to make the problem being addressed with as complete a
set of casual factors as possible. Typically, the process of developing a cause-and-effect diagram begins
with a statement of the problem that currently experiencing and proceeds to a brainstorming session to
generate list of possible causes of a problem.
The identified root cause come from the design of the equipment and operating parameters not as designed.
The other potential cause like material, environment, manpower and measurement does not consider as the
root cause to the problem after being analyzed. The cause-and-effect diagram developed for this project as
shown in Diagram 1.
X
X X
X X X
X X X
X X X
After that, the project is proceeding with the development of Gantt chart to produce the timeline for the
project. The Gantt chart is use for the project because it is one of the most used planning and controlling
tools in project today and in the survey conducted with 750 project managers, Gantt chart was the fourth
most used tools out of 70 tools and techniques associated with project management according to the Gantt
Chart and the Scientific Management in Projects (Geraldi, J., & Lechler, T., 2012). Gantt chart is
highlighting the timeline and deadline meeting which is the crucial part because any deviation is highly
potential to affect the project flow. The developed Gantt chart for this project as shown in Diagram 2.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
No WORKPLAN SCHEDULE PROGRESS
Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22
INITIAL PHASE
1 Stakeholder approval 100%
2 MOC Definition 100%
3 Detail Design / Engineering 100%
4 Engineering Approval 100%
5 Procurement 100%
6 Material / Equipment Receipt 100%
7 Piping pre fabrication 100%
8 Scaffolding Erection 100%
9 Site Installation
PROJECT IMPLEMENTATION
10 Testing and Commissioning 100%
11 Plant trial 100%
MONITORING PHASE
12 Monitoring benefits 100%
The details of each phase are shown in Diagram 2 and the details is explained in the summary part to show
the relationship with the other part of project. According to the gantt chart, the project phase is started to
find the best solution by develop the basic design solution to meet the objective of the project. The step to
develop best solution as per list:
Stage 1: Basic design solution to Provide more Acid IBC and install new piping connection which can
minimize process interruption
Stage 2: Install new acid storage drum and new piping route which can minimize the interruption but it
involved the large initial investment
Stage 3: Utilize idle storage tank and used it for acid storage in which can hold for longer period. It only
involves the installation of new piping route which is low investment cost and can eliminate process
interruption.
During execution phase, the use of project execution tools can make a big difference for the ultimate success
of a project.The tools or application is used for monitoring as per Table 7. Any argument in the execution
phase need to further discussed among the project team member in the meeting.
This project is focusing on process optimization and can be classify as enhance profit and cost saving
oriented project. The result expected to show the number of benefit and profit through the materialization
of the benefit. The Table 8 show the expected benefit and estimated value gain through the implementation
of the project.
Next best solution: • Ability to run at higher load • Required investment to install
Utilize idle storage tank and estimated RM 322M/ year with new additional piping
used it for acid storage no interruption
• Cost avoidance to install the
new acid storage
• Huge acid volume storage
The result is compared between the project objectives and the project achievement and is summarized in
the summary part to show the relationship with other part of the project.
4 Summary
The content of the summary is to summarize the activity in each project timeline and show it relationship
with other important point identified in this Benefit Realization via Process Optimization project. This is
also the elaboration from the Gantt chart part.
Other than the documentation and report, the result and update of the project are sharing to the stakeholder
via several ways such as email, section at the company intranet, MS team and WEBEX to ensure the
communication is reach to every level of stakeholders in any situation.
In summary, after the project have been approved, the operation team start the plant with the updated SOP,
then monitoring the impact to the process and product quality, the result and update recorded in the daily
production report. The project manager gives the continuous support and conduct the audit to ensure the
project not deviate from its objective. The project deliverables also reach out to the other stakeholders for
them to review and to retain the approval of the project.
5 Conclusions
According to Timothy J. Kloppenborg's (2015) Contemporary Project Management acceptance criteria, the
benefit realization via process optimization project is successful if it produces deliverables that contain all
of the agreed-upon features. The outcome should be pleasing to all parties involved, including customers
and stakeholders who will be impacted.
The project should be completed on schedule and on budget to meet the time constraint and cost constraint.
In addition, the successful project is one completed with additional value like learning the new skills or
refine the existing. Organization should take the new learning and lesson learnt and capture it for the next
project. Finally, the performing organization should materialize business-level benefit from the project such
as development of the new products, increased market share, increased profitability, and decreased cost.
From this project, the spin off opportunity have been determined, plant operator refine the skills with
updated procedure and creating the mass balance for the process and as a result benefit gain in term of profit
and cost saving.
The organization will profit if the process optimization project starts earlier and recruits more participants
to work on the same scope of the project, according to the lesson learned from this project. The operational
excellence department of the organization should increase employee interest in participating in the
innovation process, whether the idea is technical or non-technical, as long as it is in line with the objectives
of the organization. The documentation from this project can still be improved for use in future projects.
6 References