OVERALL EQUIPMENT EFFECTIVENESS (OEE) AND PERFORMANCE

MODELING OPTIMIZATION FOR EXCELLENT PERFORMANCE

Ms. Sinung Dwi Anggraeni

PT. Indonesia Power UBOH PLTU Banten 1 Suralaya

Gedung Eks Pengembangan Usaha Komplek PLTU Suralaya, Merak, Cilegon, Banten, 42439

Email: sinung@indonesiapower.co.id

Mr. Danar Saputro

PT. Indonesia Power UBOH PLTU Banten 2 Labuan

Jl.Laba Terusan Panimbang, Desa Sukamaju, Kec.Labuan, Pandeglang

Email: danar.saputro@indonesiapower.co.id

ABSTRACT

The objective of this paper is to develop confidence of the benefit optimizing OEE and performance modeling to

obtain effective and low carbon generation plant. Performance monitoring of the power plant is able to prolong the

equipment’s lifetime. The paper provides an overview the influence of overall equipments effectiveness (OEE) and

performance modeling optimization to obtain excellent performance.

The methods used were direct observation, modeling and calculation of the power plant performance. OEE, as a

measure to evaluate the productiveness of a machine or a production provides a great support to maintain O&M

business. Operation and maintenance (O&M) of equipments requires sustainable accurate evaluation to obtain

optimum plant efficiency.

Performance monitoring of a power plant is considered as important basis input to operate or maintenance

equipments. In asset management application, performance monitoring by modeling implementation is widely used

by power plants. This application is aimed to support obtaining optimum plant performance. OEE as result of

evaluation from overall equipments provides a great value for continual improvement in operating a power plant.

As the result, the performance gap through OEE evaluation at commissioning and actual condition was able to

measure by performance modeling, and been used as input through O&M planning to optimize plant performance.

Program implementation planning and sustainable evaluation of power plant performance management through

recommendation from OEE evaluation will effectively support the equipments maintenance and scheduling, prolong

power plant lifetime, and further benefit in cost. Therefore, the capabilities to prolong power plant lifetime will

benefit the company due to business reliability by obtaining customer’s trust along with the reduction of O&M cost.

KEYWORDS: OEE, modeling, optimization, performance, power plant

I. INTRODUCTION

This technical paper reflects an effort that can be developed to improve the performance of

a power plant. We know that an effective power plant will have an impact on reducing

emissions. The more effective a power plant the less energy consumption. This reduced energy

consumption in generating electricity can affect the emission generation thereof. An effective

power generation is an ideal condition that is expected by all power generation in the world, in

which the power generation performance is well monitored, asset and reliability are also well

managed, and further result in higher efficiency and power quality.

Indonesia power, as one of the biggest power generation company in Indonesia, has

committed to maintain the environment in running their business which is stated in their vision to

become a world class performance and environmentally friendly public company. One of the

efforts conducted by Indonesia Power is by implementing an asset management at each

generating unit currently.OEE, as one of tools which support asset management framework is

highly needed to support the success of management strategy. OEE, a tool to measure true

performance will show optimum result if is supported by other tools, performance modeling. In

power plant, both of them are ideally optimized in order to obtain excellent performance. In this

case, OEE serves as monitoring tools which tends to represent the asset condition and the

product, whether the performance modeling will represent the process condition. However,

actually both of them have similar portion and role in showing the performance of a power

generation. Maximizing both of them is a smart action to gain optimum target which is expected

from a business.

The paper is developed to raise the confidence of the benefit optimizing OEE and

performance modeling in order to obtain an effective and low carbon generation plant. A good

performance monitoring is able to prolong the equipment’s lifetime. By conducting an advanced

performance monitoring, a power generation will be able to minimize the unexpected derating,

shutdown and further extent it’s lifetime. Furthermore, the well managed power plant of course

will reduce the emission trough its high efficiency and quality of the product. This paper

provides an overview the influence of overall equipments effectiveness (OEE) and performance

modeling optimization to obtain excellent performance in two new coals fired power plant in

Indonesia. These are expected to become a role model for other similar new power plant which

has been developed by the government of Indonesia.

II. MATERIAL AND METHODS

In a power plant, performance monitoring highly required in order to check the health of

the individual equipment and the whole system by continuous evaluation of the production

capability and efficiency of power plant over time using the measured plant data. The

performance monitoring plays the role in minimizing the failure by providing an early

identification if unexpected or un-normal condition occur.

Performance monitoring is practically conducted in several ways which can be performed

as condition based maintenance, predictive maintenance, or corrective maintenance conducted by

maintenance team. In other terms, the operation team plays their role by operating the

equipments and the system properly, whether the engineering team conducts analysis to

performance of individual equipment and the whole system. When the parties conduct their part,

therefore it is expected to gain an optimum plant performance.

The methods used were direct observation, modeling and calculation of the power plant

performance. Observations were conducted in two similar new operating coal fired power plant.

modeling has been conducted in both power plants by using different tools, which one of them

has been using online modeling and another has still using manual data input. The calculation

conducted in both power plants is similar by using the same tools. However, in order to obtain

accurate calculation, each party feels more confident by comparing the calculation by other

software to obtain the accurate value. Finally, all of the result will be used for analysis and given

as recommendation to related parties; operation and maintenance team.

OEE, as a measure to evaluate the productiveness of a machine or a production provides a

great support to maintain O&M business. Operation and maintenance (O&M) equipments

requires sustainable accurate evaluation to obtain optimum plant efficiency. Therefore, it is

required other tools which is able to represent the actual operation condition and result an

analysis report which can be used as maintenance reference.

II.1 PERFORMANCE MONITORING

Performance monitoring is an overall long-term effort to measure, sustain, and improve the

plant/ unit thermal efficiency, capacity, dispatch cost, and maintenance planning.1 Quoted from

the power system expert, performance monitoring is an ongoing diagnostic activity coupled with

software tools that allow the collection and presentation of data. Preliminary interpretation of the

data can be performed automatically. A detailed review and determination of data requires

periodic review by an engineer and/or plant operator.2 Recently, several leading technology

companies provide advanced technologies which are very helpful to practitioners. They offer

performance monitoring products for various power plant types. Performance monitoring which

is applied in PT. Indonesia Power’s generation plants are vary depends on the type, asset

management methods, the level of complexity, and the contribution or performance monitoring

tool effectiveness against this type at each unit.

In this paper, we describe a method of performance monitoring which can be implemented

by two typically coal fired power plants; they are performance modeling and overall equipment

effectiveness (OEE). The tools are very helpful to us in monitoring condition of the unit

effectively. Both of them also facilitate engineer’s job in developing recommendation for

operation and maintenance planning, also facilitate us to distribute information more quickly and

accurately to client. Specifically, as defined in the Performance Monitoring Guidelines for Steam

Power Plants-ASME PTC PM 1993, the Performance monitoring programs are involve the

collection and analysis of process data for various cost benefit purposes such as:

1 Performance Monitoring Guidelines for Steam Power Plants-ASME PTC PM 1993

2 GE Power System

a) Providing instantaneous operator feedback on controllable losses

b) Tracking controllable losses over long time periods

c) Establishing unit heat rate for fuel accounting and regulatory records or for performance

comparisons

d) Determining cycle component contribution to total unit performance

e) Diagnosing component condition for establishing overhaul schedule and scope and to

improve ordering of parts requiring long lead times

f) Optimizing individual cycle components optimization

g) Determining input/output characteristics for economic/incremental loading.

From the explanation / description above, it is known that the performance monitoring

greatly contributes to the performance of the power plant.

III. RESULT AND DISCUSSION

III.1 OEE IMPLEMENTATION AT POWER PLANT

In Indonesia, electricity generation business is very competitive currently. This is caused

by the highly electricity demand which have to be fulfilled along with the Indonesian

government’s efforts to cope with by accelerating power plants development through Fast Track

Program (FTP). FTP is an opportunity for state-owned companies and Independent Power

Producer (IPP) to promptly help the government meet the targets. This great opportunity triggers

the energy business entity, particularly in the generation plant sector to compete in obtaining

projects promoted in this FTP. Trust to manage power plants in FTP from Indonesian

government is not purely award from the government certainly. In order to get the projects, they

are required to demonstrate their ability in managing the power plants safely and effectively as

well as provide economic benefits. This ability will be the basic capital to gain trust from the

client.

PT Indonesia Power as one of the major players in electricity generation business in

Indonesia, fully understand the potential market recently also how tight the competition with

their competitor. Therefore, ability in managing power plants that is efficient and reliable

(continuity of electricity supply) is prioritized in order to gain the trust from the client

Currently, 1st and 2

nd FTP which is targeted for completion in 2014 has been delayed in its

development, so that the project is expected to be completed by 2018. 3

From the statement of the state-owned electricity company (PT. PLN) recently, the

development of new FTP phase I fulfilled about 45% from the total capacity of the target, which

is about 4500 MW. While the remaining 55%, is expected to be completed in the period 2012-

3 Beritasatu.com

2013. While 1st FTP still focus on fossil fuel, which is coal and gas, 2

nd FTP will be rely on

renewable energy by 15-20% as the target.

Indonesia Power which has decades of experience in managing various power plant types,

are very confident to meet the challenges in the market. Nevertheless, similar to other industries

of today, power Generation Company is faced with intense pressure to improve bottom line

profitability. As electricity producer, Indonesia Power has to provide excellent product to client

with comparative prices. Moreover, continual electricity supply with a good quality has to be

maintained properly. Furthermore, it will influence the company to focus on increasing

operational performance. OEE, as tool which is used to identify production loss and asset

availability, is applied to increase plant availability and maximize plant performance. Similar to

manufacturing companies, a power generation also adopts a new consolidated approach to

measure their performance through Key Performance Indicator (KPI) known as Overall

Equipment Effectiveness (OEE).

OEE is a very simple metric to immediately indicate the current status of a industrial

process and also a complex tool allowing you to understand the effect of the various issues in the

process and how they affect the entire process. OEE can be calculated as:

OEE = Availability x Performance x Quality (1)

Availability refers to the process equipment being available for production when

scheduled. At the most basic level, when a process is running it is creating value for the end user.

When a process is stopped, it’s creating a cost with no associated value. Whether it’s due to

mechanical failure, raw materials or operator issues, a piece of equipment is either producing or

not producing. By comparing scheduled run time to actual run time, the availability component

of OEE allows for a determination of lost production due to down time.

Performance is determined by how much waste is created through running at less than

optimal speed. Performance allows for a determination of how much production was lost by

cycles that did not meet the ideal cycle time.

Quality focuses on identifying time that was wasted by producing a product that does not

meet quality standards. By comparing the quantity of good to reject parts the percent of time

actually adding value by producing good product is exposed.

The definition used for general industrial process can be adapted for electricity generation.

The use of OEE index can help the electricity-generating power-stations managers to investigate

theirs competence in maintaining reliable equipment at competitive costs. In order to obtain

qualified data, the implementations of OEE index optimization still require other tools to support

them. PT Indonesia Power, Banten 1 and 2 generating units has considered about those important

role of the tools, therefore both generation units have started to implement the tools to obtain

optimal performance. The OEE implementations in our generating business are shown as

follows:

Fig 1. OEE Chart Labuan Power Plant Unit # 1/ 2011

Fig.2. OEE Chart Labuan Power Plant Unit #2/ 2011

Fig 3. OEE Chart Banten 1 Suralaya /2011

The Key Performance Index implementation in a power generation, hereafter called as

OEE is actually addressed to identify the causes of productivity losses and asset availability. The

causes of the increase or decrease of performance value is easy to be identified by tracing from

which parameter take biggest part causing the performance value changes whether availability,

performance, or the quality. Fig 1, Fig 2, and Fig 3 shows the OEE calculation which has been

implemented in two early started coal fired power plants in 2011. The entire figures describe the

OEE which is obtained by using the general formula which takes availability, performance, and

quality. The used formula tends to consider the production and losses of the production time and

the quantity of the total electricity generation. The availability of the power plant is associated

with the potential availability and the downtimes occur during the period hour (gross operating

time). The performance of the power plant is associated with idle and minor stoppage during net

operating time, and the quality of the power plant is associated with the quantity cutback in the

valuable operating time.

Fig 4. General OEE model

The used formula is still being discussed among the parties involved in the generation

business. They realize this indicator is valuable to be implemented in the power generation. The

calculation which has been implemented is not decisive and requires more discussion to make

the best decision in developing the most appropriate formula to the generation plant. OEE, which

able to help the system by providing traceable data is widely used in several business types. In

several electricity generating power station, OEE calculation has been considered in other ways,

i.e. the formula as follows.

The performance of the thermal power plant can be represented by its efficiency. The

efficiency of a power plant is usually measured as a ratio of its electrical output to the amount of

heat used, expressed as a percentage. Efficiency depends on how the energy is used rather than

how it is produced because ratings are based on conversion of heat to electrical power.

The quality of the power plant is associated with the parameters (voltage and frequency) of

the generated electricity in comparison with the required standards.

The availability of the power plant is associated with the reliability and maintenance

planning of each piece of equipment installed in the plant. The availability depends also on the

skills of operators and maintenance teams. These factors influence the total productivity time

which is counted in the whole potential production capability. Therefore, the availability value is

associated with the productive operation time and derating time during the period hours.

III.2 PERFORMANCE MODELING

Performance of a generating unit which is able to be monitored through several tools

requires an appropriate asset monitor to maintain the operated asset reliability to reach the

optimum performance. Performance monitoring of a power plant is considered as important basis

input to operate or maintenance equipments. In asset management application, performance

monitoring by modeling implementation is widely used by power plants. This application is

aimed to support in obtaining optimum plant performance.

OEE as indicator of overall equipments evaluation provides a great value for continuous

improvement in operating a power plant. Moreover, other tools to represent the condition of the

power plant are still required to get the more updated and appropriate data thereof. Performance

modeling, as one of the tools which qualified as mentioned earlier will benefit the plant and

reduce the total O&M cost. Through this tools implementation, performance of a power

generation unit can be monitored regularly. As the result, the performance gap through OEE

evaluation at commissioning and actual condition was able to measure by performance

modeling, and been used as input through O&M planning to optimize plant performance. Both

tools which represent the performance monitoring allow the collection and presentation of data.

Preliminary interpretation of the data can be performed automatically. A detailed review

and determination of data requires periodic review by an engineer and/or plant operator as agreed

upon the asset management basic communication. Appropriate selection of the performance

monitoring tools which have a suite of related modules that provide on-line plant performance

monitoring will affect the final result of the evaluation data. Performance monitoring modeling

which has been used in Indonesia Power will vary depending on the type of the power generation

type. In the two coal fired power plants which has been reviewed in this paper has implemented

different software. One each other will complementary monitoring the trend obtained and how

much the influence of the software used to the data evaluation. Gate Cycle software and GP-

Calcs is being used, and the evaluation performed by this software is expected to contribute in

the recommendation by performance engineer.

Performance modeling provides a system that can deliver the right information to the right

person at the right time for informed decision making. Despite of the tools greatly affect system

performance, the sufficient time and maturity in performance modeling use and performance

trend are required to determine how much the benefit can be gained by the use of the software.

The example of representative figures by Gate Cycle used to monitor the performance of the

plant unit is shown in Fig.4 which configures heat balance model. In this section, configuration

of individual components of the heat balance is detailed and the more specific subsystem details

can be analyzed partially.

Fig.4. Configuration of boiler and turbine section in Gate Cycle

The performance modeling which has been used to support the performance indicator is

able to provide the data trend which will further help the performance engineer in developing

evaluation analysis. The following figure is an example of the data trend gained during energy

audit conducted in 2011 by using the Gate Cycle software. The figure shows the Plant Heat Rate

before and after unit shut down.

Fig.5. Overall plant heat rate during energy audit

The figure shows plant heat rate decrease after the shut down which represents that the

plant condition is better than previous one. By using the performance modeling, the complex

information can be served in shorter time.

III.1 OEE AND PERFORMANCE MODELING COMBINATION

After a brief description above, it inform that both of monitoring tools implementation in

the power plant very helpful in conducting performance monitoring. OEE as tool to measure the

health of the plants will successfully perform by working together with performance modeling

which is conducted overtime. The trend data which is gained by OEE will inform which factor

take biggest part in achieving the target as well as providing information on which part of the

parameters which responsible in reducing OEE value. From the monthly trend data, it can be

identified the factor or parameters deviation which referred as strong performance parameters.

The deviation of the OEE value can be traced, for example if the failure occur, it can be

further traced which part take responsibility on it, whether the availability, the performance, or

the quality. In term of defining the detail failure, performance modeling tools can help the

engineer to find a source of the problem occurs. Through the historical and trend data, the major

source of the failure can be observed easily. Performance modeling which is used as tool to

monitor performance of a plant is very helpful to the engineer in the performance monitoring.

Comprehensive descriptions which represent the actual plant condition will facilitate the

engineer in performance monitoring. Parameters which are shown will easily used to create trend

data and further show the plant performance quality. Parameter deviations occur is an indicator

that there is an important item required more attention as the decrease plant indicate the serious

occurrence to be a serious failure. In this case, the impact of OEE to plant performance has the

same impact to the performance modeling. Those indicative can be used to diagnose the system

operational condition and a failure condition can be recognized when certain limit values are

exceeded.

IV. CONCLUSION

Program implementation planning and sustainable evaluation of power plant performance

management through recommendation from OEE evaluation will effectively support the

equipments maintenance and scheduling, extent power plant lifetime, and further benefit in cost.

OEE as one of tools to measure the performance condition will optimize performance monitoring

by working together with another tools; performance modeling. Combining both of the tools will

increase the performance of the plant and furthermore prolong the plant lifetime. PT. Indonesia

Power has started to implement both of tools to optimize performance monitoring. However,

more discussions of the usage of the tools are required because of the OEE formula are required

to be further reviewed among the parties. The Quality of the product which can be represented

through frequency and voltage has not been used, whether the performance which can be

represented as efficiency has not been considered. Moreover, all of the parameters used in the

OEE formula are still using time as reference in the calculation. However, Indonesia Power has

considered developing the implementation of the tools accompanied by the software which has

been used currently in order to enhance the performance and lifetime of the plants. Therefore,

the capabilities to prolong power plant lifetime will benefit the company due to business

reliability by obtaining customer’s trust along with the reduction of O&M cost and obtain the

company vision.

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