CL 6001 Management of Chemical Projects Lecture 1 PDF

CL 6001 Management of Chemical Projects Module 1, Lecture 1 Rajeev Pandia 31st July 2024 Categories of Projects......in context with the Chemical Engineering industry 2 01 Greenfield...

CL 6001 Management of Chemical Projects Module 1, Lecture 1 Rajeev Pandia 31st July 2024 Categories of Projects......in context with the Chemical Engineering industry 2 01 Greenfield Process 07 New Product at new site, Intensification with infrastructure Waste 02 Brownfield Treatment 08 Expansion Recovery, Biotreatment, ZLD 03 09 Backward Energy Integration Optimisation 04 Forward Green 10 Integration Imprint Fuel Change 05 Horizontal Safety/ 11 Integration Regulatory Raw materials, Markets Audits Technology 06 12 Modernization Automation Catalysts, continuous reaction systems This list is not exhaustive but covers majority of wider categories 3 Why Projects?......what drives the industries to take up projects? 4 01 Product Lifecycle 06 Stakeholder interest and returns 02 Technology Lifecycle 07 Market Perception 03 Market Share 08 Community Drive 04 Growth amidst rising fixed cost 09 Scarcity of Resources 05 Employee Morale 10 Business Considerations Environmental considerations 11 (Green focus) This list is not exhaustive 5 Case Study 1: Attributes of a Project Manager......what skills does the project lead possess? 6  Result Determination Problem orientation to succeed Comfortable solving, with Perseverance uncertainty Contingency planning Understanding other viewpoints PROJECT MANAGER Flexibility Diplomacy Ownership Vision Consensus Management building / of change Team building 7 Case Study 2: Strategic Approach... 8 Strengths Opportunities What do you What opportunities do well? are open to you? S W O T Weaknesses Threats What could you What threats could improve? harm you? 9  S STRENGTHS W WEAKNESSES Strong Reputation Small Capacities Experienced Staff Old Technology Ready Infrastructure Getting Uncompetitive Globally Access to Funds No Integration R&D Capabilities: Pilot plant, Chemists & ChE No Growth Established Customer Base Locational Constraints Indian Market Non Availability of Certain Technologies Strong and Supportive Promoters Small Size for Export Entry Poor Quality of Power Supply at High Cost Mindset Shift from Commodities to Specialities (Production, Marketing) 10  O OPPORTUNITIES T THREATS Opening up of the Economy Strong, Integrated Players as Competitors Indian Market for Specialities on the Rise High Costs in India Downstream Integration Options Expansion limitations– Plant footprint, location Horizontal Integration Options Environmental Concerns Byproduct Recovery New Large Competitors within India and in the Region with Modern Technologies Use of International Sales Channels Approach from Potential Customers Global Footprint due to New Promoters 11 Pain Points......what are the major obstacles in existing businesses? 12 01 Size 09 Lack of integration 02 Technology 10 Oil price and energy costs Source of important 03 Product portfolio 11 Raw Materials drying up Strong competition, falling Single source of o-X 04 12 tariffs Environmental demands, 05 13 Manpower costs valuable chemicals in effluents 06 Poor quality of power supply 14 Closely held technologies Demotivation due to lack of Small but growing Indian 07 15 growth markets Mindset change – 08 Capacity mismatch 16 Global Competitiveness 13 Strategic Response......different ways of addressing the aforementioned pain points 14 Expansion in capacities through debottlenecking Change of Catalysts – shift to latest generations Gas turbine / HRSG Portfolio review : Forward integration Pilot Plant and scale up with own technologies (DPO, IBB, AP, IPN) Import of Raw Material (RM), shift to different grade of RM Multiple sources as risk management Focus on Select Regional Markets By-product recovery (AMS, PCP, ACP, FA) 1/2 15 Encon projects Balancing of capacities with concurrent technology upgradation Mathematical modeling, process integration Resins site Metrics for NPD and captive consumption for value add Productivity enhancement Strategic alliance (Bayer) Global benchmarking 2/2 16 Project Ideas......different ways of addressing pain points 17 SWOT Analysis Pain points Customer pull RM push Environment Mega trends (Green, Recycling, Lifestyle products, Hygiene, Fitness and health focus) Import / Export Statistics (Benzene vs Phenol) Spec Chem segments (F & F, Personal Care, Polymer additives, Construction chemicals, Water treatment, Agrochem, Rubber chemicals, Biocides, Nutraceuticals, Food additives, Lubricant additives, Textile chemicals, Mining chemicals) 1/3 18 Portfolio studies of successful companies Customer Partnership Ideation sessions Patents National Labs, Research Institutes Forward integration Example: Benzene Acquisition candidates, Revival of sick units Forward integration (Chlorine, Hydrogen, Butadiene, MA trees) E.g. PVC, Epichlorohydrin, Chloromethanes, Chlorinated toluene derivatives 2/3 19 Horizontal / concentric integration Backward integration options Fuel switch Trade magazines, portals Government policies (PLI) Demand -Supply projections Backward integration, Reliance Industries Ltd. Past and present trends in developed countries 2/3 20  Threat of new entrants Bargaining Bargaining power of power of suppliers customers Michael Porter Criteria Rivalry / Pressure from competitive substitute position among products existing producers 21 Why Projects Fail?......reasons for projects being left isolated/ incomplete 22 01 Poor Project Technology 13 07 Management Environmental issues Citric Acid, OPaL, Relocated plant Goa Fert, Coal based Urea Vedanta smelter 02 Strong competition Location Product quality 14 08 (Size/ Tech) HOC NOCIL, China Yellow P IPN 03 Dependence on Raw Materials 09 single customer Regulatory 15 PIB KLJ, Esters PCBs, Phthalates, Brominated FR 04 Market Shift 10 Logistics 16 Commodity Cycle MIO Egpyt PVC Overcapacity 05 Utilities Cost Cutting 11 17 Water/ Power Cash Flow BPA Technology Government Avoidance of Pilot / 06 Transfer 12 Regulations Semi- commercial Plant 18 Tariffs Customer approvals, Sebacic Acid e.g. AOs, Pigments 23 Assignment: Study of Laws......Factories Act, Explosives Act, Pollution Control Laws and Indian Boiler Rules 24