Case Studies Global Refiner Deploys Cost Estimation Solution to Accelerate Decision Making and Lower Costs

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	Global Refiner Deploys Cost Estimation Solution to Accelerate Decision Making and Lower Costs

Global Refiner Deploys Cost Estimation Solution to Accelerate Decision Making and Lower Costs

Technology Category	Analytics & Modeling - Predictive Analytics
Applicable Industries	Oil & Gas
Applicable Functions	Discrete Manufacturing Procurement
Use Cases	Predictive Maintenance Process Control & Optimization
Services	Software Design & Engineering Services
Challenge	Phillips66, a leading integrated oil producer, invests millions of dollars a year in refining capital projects, which can include maintenance, clean fuels upgrades, and growth investments. Completing these projects in a timely, efficient manner will help the company meet its operational goals and significantly improve the bottom line. However, with market dynamics keeping refinery loads at over 90% capacity and regulatory pressures requiring clean fuels and emissions upgrades, Phillips66 faces a steady growth of downstream capital investment projects. The company adheres to three principles for each project: capital discipline, operational excellence and execution, and financial optimization. That’s why the estimating function—now managed through Aspen Capital Cost Estimator—is so critical in examining the volume of capital proposals, and providing estimates earlier in the process. Read More
About Customer	Phillips66 is one of the world’s leading integrated oil producers, operating 12 refineries in the U.S. and Canada with a throughput of 2.6 million barrels per day, making it North America’s second largest refiner. To support its downstream operations, Phillips66 invests millions of dollars a year in refining capital projects, which can include maintenance, clean fuels upgrades, and growth investments. Completing these projects in a timely, efficient manner will help the company meet its operational goals and significantly improve the bottom line. The company adheres to three principles for each project: capital discipline, operational excellence and execution, and financial optimization. Read More
Solution	Phillips66 adopted Aspen Capital Cost Estimator for the team that handles all refinery project estimating. Since implementation in 2001, Phillips66 has not only increased estimating accuracy, but has also moved the business decision point forward in the design process— ensuring projects are completed much faster at significant savings. A statistical database enables the company to review and analyze post project results for continuous process improvement. The AspenTech solution provides systematic work processes, allowing Phillips66 to use consistent tools and collect results from projects for ongoing benchmarking. As such, the company can require E&C suppliers to use the same tools when bidding or working on projects. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Predictive Analytics

Applicable Industries

Oil & Gas

Applicable Functions

Discrete Manufacturing

Procurement

Use Cases

Predictive Maintenance

Process Control & Optimization

Services

Software Design & Engineering Services

Challenge

Phillips66, a leading integrated oil producer, invests millions of dollars a year in refining capital projects, which can include maintenance, clean fuels upgrades, and growth investments. Completing these projects in a timely, efficient manner will help the company meet its operational goals and significantly improve the bottom line. However, with market dynamics keeping refinery loads at over 90% capacity and regulatory pressures requiring clean fuels and emissions upgrades, Phillips66 faces a steady growth of downstream capital investment projects. The company adheres to three principles for each project: capital discipline, operational excellence and execution, and financial optimization. That’s why the estimating function—now managed through Aspen Capital Cost Estimator—is so critical in examining the volume of capital proposals, and providing estimates earlier in the process.

About Customer

Phillips66 is one of the world’s leading integrated oil producers, operating 12 refineries in the U.S. and Canada with a throughput of 2.6 million barrels per day, making it North America’s second largest refiner. To support its downstream operations, Phillips66 invests millions of dollars a year in refining capital projects, which can include maintenance, clean fuels upgrades, and growth investments. Completing these projects in a timely, efficient manner will help the company meet its operational goals and significantly improve the bottom line. The company adheres to three principles for each project: capital discipline, operational excellence and execution, and financial optimization.

Solution

Phillips66 adopted Aspen Capital Cost Estimator for the team that handles all refinery project estimating. Since implementation in 2001, Phillips66 has not only increased estimating accuracy, but has also moved the business decision point forward in the design process— ensuring projects are completed much faster at significant savings. A statistical database enables the company to review and analyze post project results for continuous process improvement. The AspenTech solution provides systematic work processes, allowing Phillips66 to use consistent tools and collect results from projects for ongoing benchmarking. As such, the company can require E&C suppliers to use the same tools when bidding or working on projects.

Impact #1	Increases estimator productivity from $30M estimated/day to $80M estimated/day in two years
Impact #2	Reduces overruns to near zero
Impact #3	Reduces variability in estimates from 35% to 12%

Impact #1

Increases estimator productivity from $30M estimated/day to $80M estimated/day in two years

Impact #2

Reduces overruns to near zero

Impact #3

Reduces variability in estimates from 35% to 12%

Benefit #1	Increases estimator productivity from $30M estimated/day to $80M estimated/day in two years
Benefit #2	Reduces overruns to near zero
Benefit #3	Reduces variability in estimates from 35% to 12%

Benefit #1

Increases estimator productivity from $30M estimated/day to $80M estimated/day in two years

Benefit #2

Reduces overruns to near zero

Benefit #3

Reduces variability in estimates from 35% to 12%

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Overview

Global Refiner Deploys Cost Estimation Solution to Accelerate Decision Making and Lower Costs

Operational Impact

Quantitative Benefit