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Loss Accounting

Every industrial process incurs losses. Tracking these and accounting for (i.e., explaining) them are the first steps towards loss reducion and prevention. The losses come in various "buckets", like asset utilisation, product quality, inefficient use of utilities, etc.. Our approach effectively combines direct frontline engagement, regular "back-office" discussions, and insightful visualisation of a single source of truth: AnaLOSSyst.

Title page of the Frontline cause-coding tool

Loss definitions and Frontline tool configuration​​

 

Implementation of AnaLOSSyst starts with process flowsheet reviews and detailed discussions with process engineers and plant operators, as well as production schedulers and maintenance staff. This is where the significant losses are identified and where suitable metrics are defined, along with the relevant tag names for calculating those metrics from live process data.

The online data collection and loss metric calculations are then configured in socalled "Frontline" cause coding workbooks: one workbook for each distinct process area.

Other settings, such as historian connections, SQL database connection, shift timings, validation settings for live process data, and lists of equipment names, are all also configured in the Frontline tools.

Cause coding by Shift Team Leaders​​

 

Once the Frontline workbooks have been configured, Shift Team Leaders (or equivalent) are trained and coached in "cause coding": assigning causes to loss events - e.g., excessive flaring - , by making the appropriate selections from a pre-configured and agreed "cause tree".  They are expected to do this for multiple time slots each shift, but only for their own shift and only for losses in their own process area.

Once per week, the cause entries are reviewed and validated (e.g., by Shift Superintendent and process engineers) and then uploaded to the system's SQL database.

The engagement of frontline staff, stimulated by this approach is an important benefit. Shift operators are drawn into a habit of critical thinking about losses they might not otherwise even be aware of.

A sample of the cause coding interface

Loss Management Meetings​​

The ultimate benefits of the system derive from the discussions around the AnaLOSSyst dashboards. These Power BI pages visualise the contents of the system's database: the loss data and associated causes.  They enable early detection of trends and patterns, but also allow "slicing and dicing" of the information to zoom in on the most important ones to address first.

A Management Operating System (MOS) is implemented around the loss accounting process and dashboards, to ensure improvement initiatives are developed, assigned and followed up.  This MOS is tailored to organisational characteristics, to fit with existing meeting cadences, roles and responsibilities. Full system documentation and access to settings and calculations in the frontline workbooks are part of the deliverables.

AnaLOSSyst Dashboard.jpg

A sample of the Overview page in Power BI

A sample of the Bad Actors page in Power BI

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