www.mesa.org 2008 North American Plant‐to‐Enterprise ConferenceSeptember 21‐23, Orlando, FL  

Excellence in Work Processesthe next generation of IT in manufacturing

Mike BrooksVenture ExecutiveChevron Technology Ventures

Chevron

2nd largest US integrated energy co.

59,000 Employees

2.5+ mbpd production 

operates in 180+ Countries

2 mbpd in 21 refineries

26,500+ fuels retail outlets

Chevron Technology Ventures

• we interact with Chevron operating companies to identify and understand technology gaps and opportunities

• we search for solutions to close the gaps

• we scan 300‐400 companies each year along the full value chain

• we are building ‘suppliers’ for Chevron

provide value to Chevron through ability to identify, assess, 

and transfer new technologies

world‐class VC model for spotting emerging companies with 

advances that can strengthen our core operations or lead to 

new growth opportunities

Chevron Global Manufacturing

Kalpolei 54

Burnaby 55

Richmond 245El Segundo 260 Salt Lake 45

Edmonton30% ‐ 13 mbpd

Pascagoula 325

Port‐o‐PrinceMartinique 12%

16.7mbpd

HamacaVenzuala30% ‐ 180 mbpd

PembrokeWales 220

Europort, Netherlands 30% ‐ 400 mbpd

Abidjan, Ivory Coast 4%60 mbpd

Capetown, South Africa 105

Karachi, Pakistan 12%50 mbpd

Mombasa, Kenya16% ‐ 87.5mbpd

Yosu, Korea 50%650 mbpd

Map ta Phut, Thailand 32%130 mbpd

Singapore 50% ‐ 285 mbpd

Lytton50%

Kernell50%

{230 mbpd(combined)

WhangeraiNZ ‐ 13%100 mbpd

Wholly OwnedJV’s / Partnerships

Jamnagar, India 5%~600 mbpd

issues that drive our business

• world markets

• crude supply

• value in an “integrated energy company”

• pursuit of efficiency– new ways to work

– new technology deployment 

– real‐time enterprise

• aging workforce

• technology complexity

refining = people & work processes

operational excellence framework

where is the new opportunity?

we need a software 

framework that helps 

improve the performance 

of all personnel across all 

Chevron refineries

must do for production management…

what SAP does for business & 

what Yokogawa does for operations

manufacturing operations is #1

Source: AMR Research 2006-2007 IT Spending Survey (US)

IT $ spend

during a key production run…

• outside operator detects an abnormal situation (e.g.  visual inspection, noise, etc.)

• field data readings are wirelessly transmitted and combined with real time process sensor data and suggest impending failure

maintenance wants to ____?operations wants to   _____? 

• how is the work process handled ?

• should we deal with this in a logical  ‐“institutionalized” ‐ consistent way ?

current

reliability

maintenance

control Supply & distribution

accounting

planning

trading

management

lab

good enough in the past

marketing

new collaborative work process

planners

outside operator field workers

maintenancemanagement

ADAPTIVE → IMPROVEMENT

auditable event‐driven

board operator

applications in the space

sample work process – the line up

structured & unstructured datasome work is outside the applicationsmore than integrating data

hi‐level requirements

1. collaborative work processes enabled by, but separated from the IT underpinnings 

2. secures data within primary systems, but provides easy data exchange and sharing 

3. users find information easily, without knowledge of where it is stored 

4. isolates/abstracts implementation & vendor packages

so, how do you get there ?

architecture patterns/maturity

1. application‐centric

2. data‐centric

3. interface‐centric (aka EAI‐Enterprise Application Integration)

4. work process‐centric

services - SOA - BOA

service oriented architecture

opportunity… to remove the work process … from the IT underpinnings

(implemented using web services)boa

companies are spending too much money on integration & the sustaining & running of existing business capability versus innovation & creation of new capability… companies want this to change… and they know this is possible with soa

soa…

reusable services enable a nimble IT infrastructure that can adapt to meet changing business needs

reusable building blocks

… allows decomposition of applications into services

a business approach

business process 1 business process 2

… …

IT Component IT IT IT

IT

IT IT IT IT IT

businessservice

businessservice

businessservice

businessservice

businessservice

businessservice

businessservice

businessservice

change thesewithout impactingthese

change thesewithout redevelopingthese

courtesy of

architecture implementation staircase

7

6

business processes are optimized, changed, scaled based on quantitative feedback

foundation framework assures repeatable content for business processes with consistent delivery at all sites without ‘hand-carving’ every implementation

a) measure/manage effectiveness of key bus processesb) measure/manage effectiveness of business services

OPTIMIZED

REPEATABLE

QUANTITATIVELYMANAGED5

1

2

3

4

INITIAL

MANAGED INTEGRATION

WORKFLOW EXECUTION

PROCESSORCHESTRATION

application-centric integration architecture centers on enterprise bus and/or select web services

point-to-point connectivity – no SOA –no web services

business processes interpreted and managed on a central resource, e.g. rules engine

business processes decomposed to activities -mapped into services or objects and managed by an execution engine

no oneChevron Forum ??

no one Chevron Forum ??

HartfordInsurance

bp in business rules upstream

bp ertis 2004CVX seer -jupiter

‘the old way’

several bp in upstream trialsreliance india

FRAMEWORK

In cooperation with

application‐centric – “old school”

prosvery simple model – no new training – quick to implement new interfaces – no new tools needed –development begins immediately – can be highly customized for specialist data

courtesy of

consnew interfaces typically developed from scratch – minimal 

reuse increases development cost – all projects implement 

custom v.great potential for inconsistent data – manual/hard‐

coded data translation – brittle slow to change – custom 

point‐to‐point interfaces… leads to “spaghetti”

tools & infrastructure none

recommended usesimple integration

short‐term throwaway problem‐solving

where no reuse is needed at other sites

application B

application C

application A

custom code

customcode

data‐centric

proscentral common data source – standard reports/dashboard all users same view – enable complex analytics & predictive performance – increased “delivery”performance from pre‐aggregated data

consdata model difficult to change – usage needs to be fully 

understood upfront – data can be old due to 

latencies/update frequency – one‐way data flow –

primarily a reporting, not a data integration approach

tools & infrastructure ETL tools – data modeling environment –

reporting tools – MDM and/or data quality 

tools – warehouse management environment

recommended usesimple reporting & analysis processes where decisions are made in weeks & months…not days, hours, or minutes

data source B

application Capplication A

data warehouse

masterdata

ETL &scripts ETL &

scripts

ETL &scripts

dashboards

reports

users

interface‐centric

data source B

application Capplication A

rules engine

adapter adapter adapter

core services: transformation, routing, exception management…

adapters

prosincludes rules engine to script rules that govern business processes – manages message delivery (guaranteed delivery) – single vendor solution gives lower complexity via single integration environment

consmust comply with a proprietary EAI vendor standards –application vendors cannot develop open industry standard solutions – all information flows thru central bus, defining scalability approach – EAI licenses very expensive

tools & infrastructure EAI tool (Websphere, Tibco, Vitria, etc.) –

adapter development environment

recommended usecorporate‐wide integration where a single central transport must enable access to all data – where publish & subscribe is essential

interface‐centric

prosindustry std interfaces (Mimosa, ISA95, etc.) – any vendor can provide capability – agile/flexible allows fast changes to processes – IT separated from business processes –can mix ‘traditional’ technologies – incremental adoption possibleconssteep learning curve for developers – needs comprehensive governance & service management –needs ‘good’ services for max reuse – vendors slow (so far) to release web‐services compliant applications/services

tools & infrastructure registry/repository, orchestration/workflow tool(s), security, monitoring, service devpt. env. – services governance, & lifecycle mgmnt.

recommended usewhere business processes change – where underlying 

IT technologies change – to overcome variations in 

business process or technologies at various sites

…

IT Component IT IT IT IT IT IT

businessservice

businessservice

businessservice

businessservice

businessservice

businessservice

businessservice

businessservice

services managementfabric of business services

business processes

reports

usersdashboards

pragmatic architecture

…

IT Component IT IT IT IT IT IT

businessservice

businessservice

businessservice

businessservice

businessservice

businessservice

businessservice

businessservice

services managementfabric of business services

business processes

reports

usersdashboards

businessservice

businessservice

businessservice

businessservice

IT Component

data source D

applicationA, B, C …

application D

data warehouse

business viewsupports agility & old/new – can grow into ‐highest query performance & process execution

IT viewUses best of breed - all basic patterns –current interfaces - supports rapid & incremental devpt.

a new architecture

two highly‐coupled ‘piece parts’

rich agile IT foundation that can enable work process.built on a traditional foundation, data management, visualization, data integration, security…

1interoperability

2‐way exchange

info. modeling

framework that implements work processes 2business alignment

workflow engine

roles & responsibilities

required foundation

3030

12

it’s been done before… sort of

bp – ertis, gas lift, plusChevron – seer‐jupiterReliance – EMPRIS

whole plant models… INDX, Resolution Systems, Matrikon, 

varying degrees of (web) services:trials

interface‐centric point‐to‐pointmanaged for presentationfull orchestrated for executing business processes

what’s missing is a framework

software constructs

servers, databases, services, messaging,

events…

refining model:data, organization,

roles/responsibilities, business process,

work process

the framework

full scale model of refining universe:

any particular business process fits into it, & is recognized automatically by constituent services that already exist…

& do not need to be ‘hand‐carved’ every time for every project & every service

repeatable, reusable, agile, configurable, grows content, product, tool‐kit not a project

Chevron does not modify its processes to fit the process of the IT software (per SAP)

configure not code

standards ‐ liberate us

standards ➔ agility• lower TCO

• share costs

• faster transformation to mainstream IT 

• agility

• not proprietary

• interoperability

bp data model map

Calculations Project P&ID’s

Purchase Orders Invoices

As‐built P&ID’s HAZOP minutes

Tag Monitoring Locations Process Data 

Tank inventories Lab results Bill of Lading 

Transfer Advices Operator Logs

TAR reportsFault data w Op ParamsComponent trackingInspection records Work Order History 

Work Permits

Design Requirements Purchase Requests Construction 

Schedule

Shift roster Daily plans 

Stock progressions Price sets

Work requests TAR plans 

PM program Inspection schedule Maintenance roster Equipt. Calibration

Equipt. Capability Forecast

Service Contracts Operator Unit knowledge Trade skills registerRoot Cause Analysis Data

Vendor Catalogs Bill of Material As‐installed Equipment Data

Operations Procedures Equipment & Alarm 

Configuration Operating Envelopes

Maintenance Procedures Job plans

As maintained eqpt. dataAs operated reliability data

Spare Parts Lists Stores InventoryReliability Data

Crude Assays MSDS

capabilityoperationconstructionprocurementengineering

Material Specifications

Piping Specs.Material Master

CatalogTool Catalog

Vendor & Engineering Contracts

Contracted Services Contracts

actualsmodel

plant model

equipmentmodel

materialsmodel

personnelmodel

plant lifecycle

PISTEP PIDX ISA95 OPC MIMOSA ISO14224

bp data model map

Calculations Project P&ID’s

Purchase Orders Invoices

As‐built P&ID’s HAZOP minutes

Tag Monitoring Locations Process Data 

Tank inventories Lab results Bill of Lading 

Transfer Advices Operator Logs

TAR reportsFault data w Op ParamsComponent trackingInspection records Work Order History 

Work Permits

Design Requirements Purchase Requests Construction 

Schedule

Shift roster Daily plans 

Stock progressions Price sets

Work requests TAR plans 

PM program Inspection schedule Maintenance roster Equipt. Calibration

Equipt. Capability Forecast

Service Contracts Operator Unit knowledge Trade skills registerRoot Cause Analysis Data

Vendor Catalogs Bill of Material As‐installed Equipment Data

Operations Procedures Equipment & Alarm 

Configuration Operating Envelopes

Maintenance Procedures Job plans

As maintained eqpt. dataAs operated reliability data

Spare Parts Lists Stores InventoryReliability Data

Crude Assays MSDS

capabilityoperationconstructionprocurementengineering

Material Specifications

Piping Specs.Material Master

CatalogTool Catalog

Vendor & Engineering Contracts

Contracted Services Contracts

actualsmodel

plant model

equipmentmodel

materialsmodel

personnelmodel

openO&M standards(based on MIMOSA, OPC, ISA95, etc.

plant lifecycle

foundation details

processmodel

informationflow

datamodel

20 year journey reached fruition

standards

information architecture mapping

OpenO&M harmonizes the standards

ISA95ISA88

B2MML

PRODML

OPC

OAGISPOSC

WBF

target info.       architecture     

OpenO&Mmodel

• metadata model & structures• nameservices – abstraction• model maps for compliant systems• defines rich content • commoditize O&M data exchange• non‐proprietary interoperability

more than a reference standard an implementation standard

required foundation

3838

12

OpenO&M

soa governance

diverse, heterogeneous services, used in ad hoc fashion by a set of diverse applications ? 

governed by business rules known only to the applications themselves ? 

at best complex and at worst highly ambiguous 

enforce policy: design, usage…

steward service integrity

coordinate people & processes

promote efficiency

soa maturity model

reusable servicestightly aligned with business processes

data wrappersaround API’s

let the best people build it

no intrinsic value or intellectual property to drive any manufacturing company, or any site within that company, to build its own framework or components

we need a common framework, applicable to the industry, but configured to add value and intellectual property based on the way we run our operations

reuse – buy ‐ build“we boil oil”

the proposal

the approach

lead the industry, drive COTS 

standards… liberate us…help them deliver what we need

push hard for services maturitythat exceeds current offerings

www.mesa.org 2008 North American Plant‐to‐Enterprise ConferenceSeptember 21‐23, Orlando, FL  

Thank you

MikeBrooks@Chevron.com