Performance of Generating Plant

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Performance of Generating Plant

• Using Benchmarking for Competitive Advantage
• Presented by
• Robert R. Richwine
• Reliability Management Consultant
• USA

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Agenda

• Benchmarking Background
• Unit Level Benchmarking
• Component Benchmarking
• High Impact Low Probability Benchmarking
• Optimum Economic Availability Benchmarking

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Benchmarking Background

• From a 2006 Wall Street Journal article
• Business today is awash in data and data
  crunchers
• Only a few companies use data as a strategic
  weapon
• The ability to collect, analyze and act on data
  is the essence of a companys competitive
  advantage

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Survey Results in WSJ

• 450 executives 370 companies 35 countries 19
  industries
• Identified a strong link between extensive and
  sophisticated use of analytics and sustained high
  performance
• Top performing companies were 5 times more likely
  to single out analytics as critical to their
  competitive edge

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WEC PGP Case Studies

• Over 30 case studies published on WEC website
• www.worldenergy.org
• Focus is on practical use of data, including
  benchmarking, to improve plant performance

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Benchmarking - Why?

• Set realistic, achievable goals
• Identify opportunities for improvement
• Give advance warning of threats
• Determine appropriate incentives
• Trade knowledge/experience with peers
• Quantify and manage performance risks
• Estimate supply adequacy risks
• Close the gap between actual and potential plant
  performance

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The Gap
Potential Performance
Actual Performance
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Worldwide Value of Closing the Gap(WEC Estimate)

• Economic
• US80 Billion per Year
• Environmental
• 1 Billion Tonnes of CO2e Reduction per Year and
  Proportional Reductions of Other Emissions

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Primary Causes of the Gap

• May 2002 Case Study
• From Analytical Studies Plus Practical
  Experiences
• Only 20 - 25 of the Gap is Due to Technology
  Issues
• 75 - 80 is Due to Management Practices

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Benchmarking plays a key role

• Many companies have applied benchmarking in
  their performance improvement efforts to
• 1) Identify gaps in their units performance
• 2) Identify areas with best opportunity for
  cost-effective improvement initiatives
• 3) Quantify the economic value of closing those
  gaps

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Benchmarking Process

• Identify performance variables to measure and the
  databases required
• Select peer power plants having similar design or
  mode of operations characteristics
• Compare the candidate power plants performance
  and cost against these peer plants

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WEC Data Base

• Reliability data from around the world
• Web-based analytical tools

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Peer Selection Criteria

• Large Population

WEC Data Base
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Peer Selection Criteria

• Exact Match

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x
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x
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Peer Selection Criteria
Exact Matches
Large Population
Must Balance Criteria
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Peer Selection Criteria
Etc.
Etc.
Fuel
Vintage
Firing
Etc.
Boiler Manufacturer
Duty
Age
Criticality
Turbine Manufacturer
Etc.
Size
Etc.
Draft
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Peer Selection Criteria
Etc.
Etc.
Fuel
Vintage
Firing
Etc.
Boiler Manufacturer
Duty

• ANALYSIS

Age
Criticality
Turbine Manufacturer
Etc.
Size
Etc.
Draft
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Peer Groups Selection Criteria Fossil Units
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Performance Benchmarking Results -- 30 Peer
Units

• Peer unit selection criteria
• Subcritical
• Base-loaded
• Natural boiler circulation
• Primary fuel - coal
• Net output factor greater than 85.6

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Peer Unit EAF Distribution
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Conclusions

• Benchmarking is helping utilities
• Set goals
• Develop incentives
• Identify improvement opportunities
• Proper peer group selection is essential
• August 2002 Case Study
• September 2003 Case Study
• Benchmarking is a key first step
• The WEC is actively providing support

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Component Benchmarking

• Similar to unit level benchmarking but focused on
  individual
• Systems
• Sub-systems
• Components

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Component Benchmarking

• Still need to ensure that the peer selection
  process results in as close a match as possible
  while keeping sufficient units in the population
  for statistical accuracy
• The component peer selection criteria is likely
  to be different from the unit criteria (e. g. the
  turbine is likely to be indifferent to fuel type)

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HILP Benchmarking

• February, 2002 Case Study

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What is a HILP?

• High Impact Low Probability Event
• Happens infrequently but results in extended
  unplanned outages
• Sometimes called First Time Event
• (at least the first time it has happened at your
  plant)
• Includes turbine water induction, boiler
  explosions, generator winding failure, etc.

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HILP Reduction Program

• Step 1 Select the best peer group for
  benchmarking against your unit
• Step 2 Find the peer groups HILP contribution
  to EFOR and compare to your units HILP
  contribution
• Step 3 Prioritize the peer groups HILP problem
  areas
• Step 4 Review root cause information
• Step 5 Assess your plants susceptibility to
  HILPs
• Step 6 Identify options to avoid, detect and/or
  mitigate HILPS
• Step 7 Evaluate and select HILP reduction
  options
• Step 8 Track results of implemented options,
  compare to expectations and feedback into program
  to improve the process

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HILPs Happen!!

• No power plant in immune to HILPs
• While a plants staff must react to the problems
  of the day some resources should be devoted to
  searching for cost-effective ways to prevent,
  detect or mitigate HILPs
• Benchmarking HILP unreliability, addressing HILP
  causes and seeking solutions before a HILP
  occurs is a proven way to move from a
  fire-fighting to pro-active style of management

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Optimum Economic Availability
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Optimum Economic Availability
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Optimum Economic Availability
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Optimum Economic Availability
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Optimum Economic Availability
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Optimum Economic Availability
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Optimum Economic Availability
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Optimum Economic Availability
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BENCHMARKING CONCLUSIONS

• Benchmarking has been an integral part of many
  successful Performance Improvement Programs
  worldwide (WEC JanApril 2003 May 2004 Case
  Studies)
• Proper peer selection is vital (WEC August 2002
  September 2003 Case Studies)
• While traditional performance metrics can show
  important trends, new advanced concepts such as
  Optimum Economic Availability are becoming
  increasingly important in the evolving
  market-driven business environment (WEC July
  2002)

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WEC-PGP CommitteeBenchmarking Support

• For more information contact
• Elena Nekhaev at
• nekhaev_at_worldenergy.org
• or Robert Richwine at richwine_at_worldenergy.org