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About PARCO 

PARCO Means Energy

Incorporated in Pakistan in May 1974, as a public limited company, Pak-Arab refinery limited (PARCO) is a joint venture between the Government of Pakistan and Abu Dhabi. Its authorized capital is Rs.5 billion and a paid-up capital of Rs2.16 billion of which 60% is held by Government of Pakistan (GOP), and 40% by Abu Dhabi Petroleum Investment Company (ADPI).

In the last 25 years the company has expanded a phenomenal 24 times and has achieved an Equity base of Rs13 Billion and an Asset Base exceeding Rs.68 Billion or just over U.S $10 Billion in current dollar terms. An enlightened investment decision in anyone’s books!. It is the only AAA credit rated company in the country.


Financial Situation of PARCO (in Millions)

 

INITIAL(1981)

PRESENT(2001)

Authorized Capital

1,500

5,000

Paid-up-Capital

540

2,160

Government of Pakistan(GOP)

324

1,296

Abu Dhabi Petroleum Investment Company(ADPI)

216

864

Reserves

1

12,775

Long Term Loan

1,115

52,762

Debt : Equity Ratio

67:33

74:26

The management of company is vested in a board of ten directors of which GOP appoints six directors including the Chairman and the Managing Director and the remaining four Directors represent ADPI.

The Managing Director is the chief Executive of the company and the federal ministry for petroleum and the natural resources performs an overview role and represent the interest of the Government of Pakistan(GOP).

PARCO is Truly an Energy Comp

PARCO is actively involved in various facets of oil storage, transportation, refining, marketing and export of fuel products. It serves as the lifeline in the transportation of fuel supplies in the country and represents more than 40% of its refining strength. It has the most comprehensive oil pipeline and storage network with a state of the art, modern refinery with leading edge technology and processes.

Commissioned in the year 2000, a full month ahead of schedule and within the approved budget of U.S $ 886 million, the sensibly located Mid Country Refinery(MCR) was formally inaugurated by the Chief Executive in February 2001. The refinery is of great significance to Pakistan’s economy. Besides being the critical inland supplier to the high growth areas of the middle and northern consuming centers of country, PARCO assists with balance of payments of the country. It helps to substitute imports of refined value added oil products to the tune $100 million annually and additionally earned another U.S $100 million through exports of quality Motor Gasoline and Liquefied Petroleum Gas(LPG) to international buyers.

 

 

 

A summary of the available tank-age of the Refinery for various Petroleum Products is detailed below:

PRODUCT

STORAGE AT MCR

MS (87 RON)

11,000

MS (90 RON)

5,000

HSD

56,000

KEROSENE

12,000

JP-1

16,000

FO

34,000

LDO

5,000

JP-4

4,000

LPG

2,000

CRUDE

350,000

 

With the coming on streams of the refinery operations the company has begun marketing of its fuel products and LPG. Under a Technical Services and Support Agreement (TSSA), SHV Energy of Holland is marketing 20% of production as PARCO’s brand ‘PEARL Gas.’ PARCO is also marketing OMV Austria’s Lubricants through the brand name of ‘PEARL Lube’. PARCO has also entered into joint venture agreement with Total of France whereby Petroleum products will be marketed under the co-branding of TOTAL-PARCO, through soon to be seen retail outlets throughout the country.

PRODUCT SLATE at 100% - Refinery Capacity

CRUDE FEED

Arabian Light

Upper Zakhum

60%

40%

 

 

 

PRODUCTS Metric Tons '000'/ Year

LPG

201

Premium Gasoline HOBC

687

Kerosene 
Jet Fuel 1 (JP-1)

543

Jet Fuel 4 (JP-4)

47

High Speed Diesel Oil (HSD)

1,341

Low Speed Diesel Oil (LDO)

48

Furnace Oil

1,656

Sulphur

24

Total

4,547

 

 

PARCO is fulcrum and key building block in the country’s strategic oil supply and availability dynamics. With the synergy of a comprehensive and expanded oil pipeline network integrated with a significant and modern refining capability, PARCO has merged as the strategic fuel supplier to the country.

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Replies to This Discussion

An Expanding Strategic Pipeline Network

PARCO operates crude oil cum product pipeline. It transports crude from Karachi to Mahmood Kot near Multan for its Mid Country Refinery(MCR), and refined products, like diesel and kerosene, to Faisalabad and to Machike, near Lahore through its 1228 KM long 16”, 18” and 20” diameter pipeline. PARCO’s pipeline system includes a network of highly sophisticated telecommunication facilities and a comprehensive Supervisory Control and Data Acquisition (SCADA) system.

Originally, PARCO’s Karachi to Mahmood Kot (near Multan) pipeline, a distance of 864 kilometers, operated with two pumping stations which were located at Karachi and Shikarpur and an annual pumping capacity of 2.9 million tons. PARCO commissioned two additional intermediary pumping stations in 1994 at Bubak (Sindh) and Fazilpur (Punjab), to enhance the pumping capacity to 4.5 million tons/annum. Later, with technological up gradation of the system, the pumping capacity was further augmented to 6.0 million tons. This additional capacity was major step towards meeting the increasing requirements the petroleum products, particularly in the northern areas, with essentially the same basic infrastructure built more than a decade earlier. In June 1997, PARCO completed its 364 KM MFM (Mahmood Kot-Machike) pipeline Extension project and expanded its reach to Faisalabad and Machike near Lahore. The project design, as implemented, allows for branching of pipeline, at a future date, with spur lines from Faisalabad to Kharian and Sahiwal. PARCO has also built adequate road loading Gantry facilities at Faisalabad to cater to future demand and/or any emergent situation.

Since commissioning of its pipeline operation in 1981, PARCO has transported millions of tons of oil products from the coast of Karachi to up country which otherwise would have been dependant on the cumbersome and time-consuming road and rail transport. PARCO’s pipeline has thus become a vitally critical and efficient life support system for the central and northern areas of the country, while contributing to the national exchequer not only through payment of attractive dividends, taxes and import duties

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but also by delivering major savings in freight pool expenses. It has also affected considerable savings in foreign exchange and has created additional employment opportunities in the country.

White Oil Pipeline Project (WOPP)

PARCO has now launched another pipeline project with major strategic significance for Pakistan. The white oil pipeline is an 817 kilometer 26 inches diameter dedicated pipeline to carry refined petroleum products from Karachi to Mahmood Kot. The pipeline project, with a capacity going up to 12 million tons per year from the initial 5 million tons, complete with allied support operational facilities is being implemented at a cost of US $480 million. A joint venture company formed with major oil marketing companies in the name of Pak-Arab Pipeline Company( PAPCO), PAPCO will implement and then manage the project, PARCO with the 51% equity holding is expected to contribute its unique first hand experience and expertise in pipeline management and operations and help make the venture success.

With strategic decision on diversification and cultivating organic growth, PARCO is rapidly moving towards transforming itself into a fully integrated energy company. PARCO’s discrete areas of competitive advantage will allow it to achieve excellence inenergy transportation through pipeline operations and management, strategic storage, leading edge refining and incisive marketing of petroleum products through both retail and exports.

As a model joint venture, PARCO is a symbol of multinational cooperation for the growth and prosperity of Pakistan. PARCO has thus emerged as vital national resources with an international image.

P A R C O

Progressive Aggressive Pursuit Reliability Consistency Organized

Corporate of Technical of in and

Outlook Excellence Service Performance Systematic

Development

BRIEF INTRODUCTION OF THE REPORT

We were assigned to visit the PARCO oil Refinery and deliver a report on the Mechanical Maintenance System of the Refinery. Sir Hassan Bucha gave us the opportunity to work on this project. The management of the refinery helped us in every way.

This report is about the System Analysis and Design of the Mechanical Maintenance Department of the PARCO. We did a thorough analysis of the Mechanical Maintenance Department. In the form a report we will tell you what we accomplished, we proceeded in the following way.

PRELIMINARY INVESTIGATION

PARCO was facing problems with the Mechanical Maintenance Depart-ment of the refinery. The working pace of the Mechanical Maintenance Department was very slow. It took more time, to carry a job, than required. Management of the PARCO wanted to improve the efficiency of the Mechanical Maintenance Department.

We interviewed the Mechanical Maintenance Department’s employees, we checked the data flows of the current system and found that the Material Section of the department was still working manually, it took more time to check the inventory and respond to a request, and thus slowing down the work pace of the Mechanical Maintenance Department which in turn was slowing down the work pace of the whole Refinery and also causing damages in Emergencies.

So we identified our project as ‘To Computerized the Material Section of the Mechanical Maintenance Department’. Now we will tell you that how we proceed. To solve this problem in a better way first we will have to perform a thorough and complete analysis of the current system, for further investigation, and then we will propose a new system for approval.

PROJECT INITIATION AND PLANNING 

Here we shall study the current system and then we shall propose a problem free system. First we shall study the current system of Mechanical Maintenance as a whole and then we shall study the Materials Section of the Mechanical Maintenance and the interaction between them.

Current System of Mechanical Maintenance

We studied the whole system of the Mechanical Maintenance and its interaction with the Material Section. In our analysis the management of the Mechanical Maintenance Department gave us their full cooperation. They provided us with all the available documentation of the Mechanical Maintenance System. Then with the help of the users also, we came to know about more working details of the system . Here the main point of interest is that why we studied the Mechanical Maintenance System that thoroughly. It is because the Material Section is a part of the Mechanical Maintenance System and with out having a clear view of the data flows and working design of the Mechanical Maintenance System we cannot solve the problem of interest. Also it is very important to have clear view of the working of the current system.

Main Refinery is divided into five main Areas i.e. Area 1,2,3,4, and 5. It is the job of the Mechanical Maintenance Department to keep the machinery, being used in the operations of the refinery, in a working condition. When ever there is some problem in the machinery of the refinery, a work request is raised and is sent to Mechanical Maintenance Department, and

which in turn solve the problem to keep the refinery running. To understand how this request is handled, we first need to know the working description of the Mechanical Maintenance Department

First we need to know the departmental structure of Mechanical Maintenance. Theorganogram of the Mechanical Maintenance Department is given below.

ORGANOGRAM OF MECHANICAL MAINTENANCE DEPARTMENT

image

Area-1 (CDU / VDU VISBREAKING / GASCON)

Area-2 (NHT / CCR / DMX)

Area-3 (LPG MEROX / AMINE TREATING / SULFUR UNIT)

Area-4 (UTILITIES / ETP & FLARE SYSTEM)

Area-5 (OFFSITE)

As you can see in the departmental organogram of Mechanical Maintenance Department. Mechanical Maintenance Department has two main sections the ‘Maintenance Section’ and the ‘Material Section’ which are further divided into sub-sections as shown in the chart. The sub-section Field Maintenance is responsible for all the corrective work of the Refinery, that is why it is divided into two parts. One control the Area 1,2,3 and the other control the Area 4,5. Then in the Maintenance Section there is Maintenance Planning. The job of the Maintenance Planning is to plan the job, which came into existence due to any problem in Refinery. Then there is Maintenance Workshop. When there is some corrective work, like welding of some part or correction of some machine without replacing any part, to be done on any part of the Refinery then it is the job of the Maintenance Workshop to handle it. Then in the other section of the Maintenance Department, the Material Section, there are three sub-sections. One is the Local Purchase, which handles the supply of spare parts used in the machines of the Refinery. Then there is Material Control, it is responsible for keeping a check on the Inventory. Then there is Warehouse, it actually serve as a store and informs Material Control about the low level of the inventory.

For further study of the Department lets study the Hierarchal Structure of the Mechanical Maintenance, as it is very important to know how the people of the Mechanical Maintenance Department work, how the jobs in the Mechanical Maintenance Department are divided into levels of management . For this reason we have given the Hierarchal Chart of the Mechanical Maintenance Department below

Hierarchal Chart of Mechanical Maintenance Department.

image

The hierarchy of the department and the job description of the employees is as follows:

Manager Maintenance: 

The department is controlled by Manager Maintenance. Manager Maintenance is responsible for the smooth working of the whole department. More over when there is a need for new inventory and the if the price of the inventory in less than equal to 1 lac. Manager Maintenance authorizes it.

Section Head Maintenance and Section Head Material:

Under Manager Maintenance there are two Chief Engineers with the title of Section Head Maintenance and Section Head Materials. In the organogram of the Mechanical Maintenance Department you can see that there are two main sections of the department the ‘Maintenance Section’ and the’ Materials Section’. Section Head Maintenance and Section Head Materials control these sections respectively.

Further jobs are divided into:

Group Head In charge Planning:- Group Head In charge Planning plans the job to be performed.

Group Head In charge Workshop:- Group Head In charge Workshop controls the operations of the workshop.

Group Head In charge Field Maintenance:- There are two sections for Field Maintenance. Group Head In charge Field Maintenance for Area 1,2,3 controls the field work of Area 1,2,3 of the refinery, Group Head In charge Maintenance for Area 4,5 controls the field work of Area 4,5 of the refinery.

These were the jobs of the Maintenance Section, and the job description for the Material Section is as under:

In charge Local Purchase:- In charge Local Purchase is responsible for the purchase of inventory,

In charge Warehouse:- In charge Warehouse is responsible for the supply of mechanical parts to the maintenance section. Under In charge Warehouse there are two sub-ordinates. One supervisor and two clerks. One is responsible for the book keeping of stored inventory data, and one is responsible for the stored parts.

In charge Material Control:- In charge material is responsible for coding of the inventory and also to make purchase requisition in case of low level of the inventory.

All these people work together to perform the daily work of the Mechanical Maintenance Department.

Before going into further detail we need to know the interaction of Mechanical Maintenance Department with other departments. For this reason we have given theContext Diagram of the Mechanical Maintenance System on the next page. As you can see that it interacts with four departments. The Instrumental Department, The Electrical Department, The Operation Department, and The Administration Department. Its interaction with Operation Department is to perform all the work needed to keep the machinery of the refinery intact. This will be explained in detail in the coming section. Some times while checking the domain of the problem, if the engineer finds any problem related to the Instrumental Department or Electrical Department it informs them about their duty, and from Administration it receives help needed like when there is some corrective work to be done in any Area of the Refinery the Mechanical Maintenance Department needs some vehicle to drive them there or if some lifter is needed to lift something heavy Mechanical Maintenance Department ask to Administration Department to allow them to use the machinery. More over Mechanical Maintenance Department interacts with Administration Department for the monthly salaries. Another request that needed the help of Administration is the P.O. for the purchase of new inventory. But Mechanical Maintenance Department ask about it only when the required part is worth more than 1 lac Rs. As the manager of the Mechanical Maintenance Department is authorized to make a P.O of less than equal to 1 lac Rs.

Context Diagram of Mechanical Maintenance System

 

 

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How a Work Request is Raised and Handled

As we told you that Mechanical Maintenance System is responsible for the smooth running of the Refinery. Mechanical Maintenance System works in a close relationship with the Operation Department. The job of the Operation Department is to keep a close eye on the Mechanical, Instrumental, and Electrical equipment of the Refinery. Operation Department is responsible for the working of the actual refinery. It looks after all the processes involved in the refining of crude oil. When ever there is a problem with the mechanical equipment of the refinery, for example when a pump is not working properly or there is leakage in any pipe etc. it is the job of the Operation Department to inform Mechanical Maintenance Department about it. Mechanical Maintenance Department then fix it.

For this purpose a work request is raised from the Operation Department to the Mechanical Maintenance Department (see process 1 in the DFD of the current system). Operation Department gives the complete detail about the type of problem. It also gives the Area location of the problem.

There are three types of work requests.

Preventive Maintenance: - Preventive Maintenance is scheduled to avoid any abnormality in machines. It is recommended by the vendor. It is to avoid problems.

Predictive Maintenance: - It is also called trouble shooting. It helps in finding and solving problems in machines.

Breakdown Maintenance: - When a machine is stopped due to some problem, then the job is called break down maintenance or shut down maintenance. 

When this work request enters the Mechanical Maintenance Department the System handles it in the following way:

Handling of the Work request:

Work request is sent to the Section Head of the Maintenance Section. Who process (see process 2 in DFD of current system on the opposite page) it and then with some specifications send it to the Planning Section. Planning Section then plans the job to be carried out to solve the problem. It checks the scope of the problem and then sends the further processed request to the related section of the Field Maintenance (see process 3 in DFD). As we told you that there are five basic operational areas of refinery and the Area 1, 2, 3 are assigned to the Field Maintenance section for Area 1, 2, 3 (See the Hierarchal Chart). Field Maintenance then appoints a single engineer or a team of engineers, as required, to go and check the proper domain of the problem in the field. Team then study the problem giving machinery thoroughly and present a detailed report on the domain of the problem to Field Maintenance people. Some times there is some work involved which is not in the domain of the Mechanical Maintenance department, Field Maintenance then send such work detail is sent to the Planning Section, which is then handed over to the related department(see process 4 in DFD). Then with the help of the drawings of the machinery the Field Maintenance checks whether(with the help of Area engineer) there is any need of spare parts or workshop work. If some workshop work like welding or some corrective work is needed a request is sent by the Field Maintenance to the Group Head In charge of the Workshop with a complete description of the work to be performed(see process 5 in DFD). DFD of Current System is given below

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If spare parts are need a request for the issuing of material (MIV) is sent to the Material section (see process 6 in DFD) and which in turn make the needed part available. Then before starting the work there is a need to get the work permit (see process 7 in DFD) from Operation Department, there are two type of work permits The Cold Work Permit and The Hot Work Permit. The former is needed when there is no need to shut down the refinery and the later is needed when the refinery has to be shut down before the start of work. Then when the entire requirements are completed then the job is started (see process 8 in DFD). All this is shown in the DFD of the Mechanical Maintenance System. 

More over we have shown the current net work diagram of the Mechanical Maintenance System on the next page. With the help of this you can easily figure out the computerized working and linkage of the entities. Note that Material Section is not included in it. Net Work Diagram of the current system is on the opposite page.

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Current Materials Section

Job Description:

As shown in the Hierarchal Chart (previously) Material Section is controlled by Section Head Materials. Purchase of the new parts is controlled by the In charge of Local Purchase who works under Section Head Materials. In charge of Local Purchase have one supervisor and two clerks under him. They handle the purchase of the inventory. The entire inventory is kept in a Warehouse which is controlled by In charge Warehouse. In charge Warehouse also works under Section Head Materials. Under In charge Warehouse there are two sub-ordinates. One supervisor and two clerks. One is responsible for the book keeping of stored inventory data, and one is responsible for the stored parts. Then the last is In charge Material Control. There are three people working under him, one supervisor and two clerks. They are responsible for coding of the inventory and also to make purchase requisition in case of low level of the inventory.

The Material Section of the Mechanical Maintenance Department is responsible for providing all the necessary spare parts needed for the work of maintenance. This system is currently running manually and all the other systems in the refinery are fully computerized. This thing according to our analysis reduces the efficiency of the Mechanical Maintenance Department and in turn reduces the efficiency of the Refinery as a whole. Let’s study it thoroughly.

Working of the Material Section:

When Maintenance Section needs some spare parts to correct the working of some machinery in the Refinery, It sends a Material Issue Voucher (MIV) to the In charge Material Control (see DFD of the Current Material Section). All the necessary details about the parts is included in the voucher. Material Control then contacts with Warehouse to check the

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inventory for the parts (see process 6.1 in DFD). If the parts are available then Material Control sends them to the Maintenance people. If In charge Warehouse finds out that the inventory of the parts is equal to its minimum level, a requisition is sent to the In charge Local Purchase for replacement (as show in the DFD see process 6.2)

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Certain limits have been allocated for the issuance of Purchase Order (P.O) (as shown in the DFD of the Local Purchase see process 6.2.1). That is if the purchase for the new parts is less than or equal to 1 lac (100,000), Manager of the Mechanical Maintenance Department can authorized the P.O. If the price of the parts exceeds 1 lac and is less than equal to 5 lac then the Deputy General Manager of the Refinery authorize the P.O. If the price is even more than 5 lac but less than equal to 15 lac then the General Manager of the Refinery will authorize the P.O. Once the purchase order (P.O) is issued it is sent to the In charge Local Purchase. In charge Local Purchase then ask different suppliers to provide bids for the supply of the parts. Lowest bid is chosen and purchase order is sent to the supplier, and when the supply arrives it is given to the Material Control. In this way the Material Section works. DFD of the Local Purchase is given on the previous page

Problems and their Reason

Here the problem is that all the data flowing in and out of the system is handled manually. As shown in the DFD of the Material Section that there are two many processes. Record is kept in huge manual registers. Even checking of the level of the inventory takes more than 3 hours. Too many people are needed for a single job. There are many supervisors and clerks (see Hierarchal Chart of Mechanical Maintenance Department), when one would have been sufficient if we computerize the system. Three people are working under In charge Local Purchase, when two were enough in case of computerized system.

Effects of Problems on the Refinery

All this is not only time consuming but also very expensive. Department is paying three extra people, not only good salaries but also many other benefits. The system is exposed to many errors. As the record is kept manually there are many chances of human errors. Suppose that a vital part is needed in an emergency, and due to the manual book keeping In charge Warehouse is unaware that the specific part is low in inventory. When he finds it out it is going to be too late to save the refinery from shut down or other hazards. Such hazards can happen and they can cost the refinery many big losses.

From this analysis it is quite clear that the problems of the Refinery are because of the Material Section. To solve the problems causing due to the Material Section of the Refinery we need to built a new system of the Material Section.

Proposed System For Material Section

For any system it is very necessary for the system to interact with its surrounding systems in the same manner and speed as they are interacting with under consideration system. If the system is unable to catch the pace of the systems in the environment it will make errors and will eventually fail. Same thing is happening with the Material Section of the Mechanical Maintenance. The Mechanical Maintenance Department is fully computerized and equipped with the latest technology. That is why it works efficiently and rapidly. But the Material Section is non-computerized and huge registers are sued for record keeping. That is why it takes so much time to reply and is prone to errors.

We suggest the management to computerize the Material Section. It will not only solve all their problems but also will be in the benefit of the PARCO Oil Refinery.

Cost and Benefits Cost:- This system will cost the management about 2 million Rs. But it will be worth it. This is not a final estimation as in the nest phase we will find the user requirements about the new system, which can increase and decrease the cost. This is a round estimation.

Benefits:- the benefits of the new system are quite obvious that it will decrease the chances of error, and will save the Refinery from many hazards and losses.

After the approval of the management of the Refinery we proceeded to our next phase.

Gant Chart

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Requirement Analysis Phase

We used certain techniques to know the needs of the user. We interviewed the users, the external users and the management. This gave us some start to look at the system they all wanted. We also used the JRP technique to have all the users fully involved in the decision making process for choosing the new system.

User’s View of the New System

We asked users that how they would like their new to be. They gave us many answers. Some said easy to handle, some said efficient with a huge storage capacity. Some said system should be user’s friendly. From interviews with users we came to know that they want a system which can full their needs to reply a request as quickly as possible, system should store huge amount of data, system should be fast, system should be built with the key concept of simplicity, system should be able to approach all necessary departments directly with the click of a mouse, system should make the relevant reports about inventory and purchase automatically.

Study of the Files of Material Section

We studied the files and heavy registers of the Section just to know that what is their format of keeping records and what should be the format of the new system. More over it gave us a clear idea about the data requirement of the Material Section.

JRP Session

We called two Joint Requirement Planning meetings to have better understanding of the user’s requirements. The location of the meetings was Mid Country Refinery (MCR). These meetings were held in the conference room of the Mechanical Maintenance Department. These meetings were attended by the General Manager MCR, Manager Electrical Dept., Manager Instrumental Dept., Manager Operation Dept., Section Head Maintenance, Section Head Material, and by all the staff of the Material Section. We showed them some discovery prototypes(Discovery Prototypes are attached at the end of the Report) of the Proposed System in the second meeting based on our knowledge of the users interviews and previous JRP meeting and detailed study of the files of the Material Section. This prototype happens to be very useful and they approved our proposed system. More over DFD’s of the proposed system were also shown to the members of the meeting, so they should also check the data flows of the new system.

All this material is attached to the report. With the confirmation of management we decided to proceed to our next phase.

Logical Design Phase

It is necessary to, while understanding a system; first visualize the flow of the data within the system. If the flow is clearly understood then there will be no problem for the understanding of the system. Here we are going to explain the proposed system; that how the system is logically working and processing the data, and how much input and output is involved, and how much reports are generated during the execution. After that we shall study the complete database and tables which are necessary to be created for the proposed system. We shall also study various entity relationships and see how an entity is interacting with the other entities. Now let’s start the analysis of the proposed system.

Inputs/Outputs of the Material Section

The material section is handling basically three entities that are Maintenance Section, Warehouse, Local Purchase and Material Control. From our DFD, Maintenance Section is the starting point. When Maintenance Section requires inventory, it sends Material Issue Voucher (MIV), as shown in DFD, to the Material Section. Material Section then checks if inventory is present in the Warehouse or not, as shown by the process 6.1. If inventory is present in the Warehouse, then Material Section will process it to keep the record in the Master File and then provide the inventory to the Maintenance Section. After providing the inventory if the level of the inventory becomes low then, then the Material Section sends the purchase requisition to the Local Purchase section. Local Purchase section will further process it, as shown in DFD by process 6.2, for the purchase of the new inventory. The purchasing process will be further discussed in the next DFD under the heading of DFD of Local Purchase. Local Purchase Section keeps the record in the procurement master file. After purchasing of the inventory, it records it in the Procurement master file and sends it to the Material Control. Material Control then put distinguishable codes on the inventory and then sends the inventory to the Warehouse and Warehouse updates its master file. After this the inventory is provided to the Maintenance Section on demand. The most important point here is that the three master files i.e. Master file of Warehouse, Inventory, and Local Purchase, keeps the record in the central repository and they can access this record according to the permission assigned by the DBA, as shown in the DFD. This shows that our final Material Section is very different from the previous one. The section is provided with the facility to interact with any department at any time. More over any department, with the permission of the DBA can see the records of the Material Section for example now Maintenance Section does not have to wait for the answer about any particular inventory rather it can check it any time on its terminal.

DFD of the Proposed Material Section is on the opposite page.

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Inputs/Outputs of The Final Mechanical Maintenance System

In the final Mechanical Maintenance System, same procedure of the work request is followed that the work request is sent from the Operation Department and is sent to the Mechanical Maintenance Department which then processes that what kind of work it is; urgent or usual, as shown in the process 1. Mechanical Maintenance Department then sends it to the Maintenance Planning Section. It stores the information of the work request in work request master file and also analyses which section is required for the work process, as shown by the process 2. The information is further sent to the Field Maintenance Section.

In the Field Maintenance Section, engineers analyze the domain of the problem, as shown by the process 4. After checking the domain, drawings are made to check if any material is required or whether there is any need of welding work or any other workshop work, as shown in the process 5, it is sent to the workshop. If inventory is required then Material Issue Voucher is prepared and request is send towards the Material Section, as shown in the process 6. Material Section will check the inventory and provide the engineers with it and keep the record in their master file. After getting the inventory, the work permit is approved by the Operation Department, in process 7. After getting the permission, the job will be executed, in process 8. When the work is completed, it is recorded in the work request master file. And all the information is sent and updated in the central database. Now the Mechanical Maintenance Department is attached to the Material Section with the help of network, as show in the next pages, and they can interact more quickly and can exchange information in an efficient way. DFD is given on the opposite page.

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Database

Databases are so widely used these days that they are found in organizations of all sizes, ranging from large government agencies such as the Internal Revenue Service to small businesses and homes. Everyday activities often bring you in contact with databases. So for the purpose of data storage we use oracle database here.

Huge amount of data is flowing in & out of PARCO oil Refinery simultaneously. That is why there is a need of controlling all the transactional processing of accounts, auditing reports, management decision, and the purchasing of inventories. So the PARCO is already using Oracle as a database and also as a front end application. About the proposed system, they also agree to develop their database in Oracle.

In PARCO, a well organized network is already developed where ORDBMS technique is used to handle all the types of transactional processing. By developing the proposed system, different types of tables are created for the purpose of completing the work requirements of the industry. In this way PARCO competes with others by using the latest technologies that are available today.

Tables

The tables which are involved in the development of the new database for the proposed system, those are as follows.

µ Item

µ Alternate Item

µ Department

µ Store Room

µ Manufacturer

µ Equipment

µ Order

µ Purchase

µ Installation

µ Vendor

Now we are going to see the complete description of each table and the relationship of the tables with each other.

1.Item

It gives the complete information about an item and defines its sequence number which is allocated by the Material Control. This is helpful for the retrieval of the record. Also the table contains the name of the item, type of the item, item detail, system and the cost of the items. Other fields are used for the relation between the different tables. Table is on the opposite page.

Field

Pk / Fk

Data Type

 

Description

Item id

Pk

Number(5)

Identification of the item by giving it a unique value. Hence, any duplication is not possible and neither is it possible that any item does not have its unique number.

Item type

 

Varchar2(15)

Gives information about the type of item record that is stored.

Item_name

 

Varchar2(25)

Tells the name of the item

System

 

Varchar2(20)

Tells about the machine, for which the item is used.

Item_details

 

Vachar2(50)

Tells us about part no, shelf life code, additional MSDS or any other description of the item from its usage point of view.

Alter_item#

Fk

Number(5)

Gives information about the alternative of certain items, and tells us if the substitution of the item is possible. This field is used for the relationship with the Alternate item table.

Order#

Fk

Number(5)

Tells us which item is ordered, its quantity, and unit cost. This field is used for the relationship with the order table.

Cost

 

Number(10)

Tells us about the total cost of the item.

Store #

Fk

Number(3)

Tells us about the store where the item is kept. This field is used for the relationship with the Storeroom table.

Quantity

 

Number(5)

Tell us how much quantity is used

 

2. Alternate item

It has detailed information about an alternative item and tells us if substitution is possible. It helps in the selection of the alternatives.

Field

Pk / Fk

Data type

Description

Alter_ item_id

Pk

Number(5)

Identification of alternative item by giving it a unique numeric value. Hence, the duplication is not possible. It is also not possible that any item does not having a unique no.

Alter_item_type

 

Varchar2(15)

Gives information about the type of alternative item that is available.

Alter_item_name

 

Varchar2(25)

Tells the name of the alternative item

Description

 

Varchar2(20)

Gives extra detail of the item

Item_id

Fk

Number2(5)

It is used as a reference for an alternative item.

 

3. Department

This table stores the information about the departments. It contains their specified numbers, their name and location within the refinery.

Field

Pk / Fk

Data Type

 

Description

Dept#

Pk

Number(5)

Describes the unique value for q department so that its retrieval is easy

Dept_name

 

Varchar2(20)

Tells name of department

Location

 

Varchar2(20)

Tells where it is situated.

 

 

 

 

 

 

4. StoreRoom

It provides information the storeroom. It tells capacity of the storeroom and tells which department the store is associated with.

Field

Pk / Fk

Data type

 

Description

Store#

Pk

Number(5)

Identification of store by a unique number.

Capacity

 

Number(10)

Gives information about how much storage capacity it has.

Group

 

Vachar2(50)

Tells name of machine and also tells where it is installed.

Item_id

Fk

Number(5)

Provides information about the item. It is used as a reference with the item table.

Equipment#

Fk

Number(5)

Gives information about equipment, their nature.

Dept#

Fk

Number(5)

Tells department and its location etc

 

 

5. Manufacturer

This table contains the information about manufacturer name, address, what type of raw material he used, and production capacity.

Field

Pk / Fk

Data type

Description

Manufacturer#

Pk

Number(5)

Provide the serial no. for the manufacturer. And tells who is the manufacturer of the particular item

Manufacturer_name

 

Varchar2(20)

Name of manufacturer is displayed

Capacity

 

Number(6)

How much quantity is purchased from the manufacturer

Address

 

Varchar2(30)

The address of the manufacturer

Raw material

 

Varchar2(30)

Material or equipment name that the manufacturer is producing

 

6. Equipment

This table gives information about equipment, their vendors, manufacturer, unit cost, warranty date etc. From here we can find the complete history of all the equipments which are present in the refinery.

 

Field

Pk / Fk

Data Type

Description

Equipment#

Pk

Number(5)

Identification of equipment by giving a unique numeric value. Thus no duplication is possible and neither is it possible that an item does not have a unique no.

Equipment_type

 

Varchar2(15)

Gives information about the type of equipment that is available.

Equipment_name

 

Varchar2(25)

Tells the name of equipment.

Group

 

Varchar2(20)

Tells us the group of machines for which the equipment is used.

Warranty_date

 

Date

Tells us the time within which equipment should be replaced.

Storeroom#

Fk

Number(5)

Gives information where equipment is stored. This field is used for the relationship with the Storeroom table.

Description

 

Varchar2(25)

Gives extra detail about equipment

Manufacturer#

Fk

Number(10)

Tells us about the manufacturer of the equipment. This field is used for the relationship with the manufacturer table.

Vendor#

Fk

Number(3)

It tells us who supplies the equipment. This field is used for the relationship with the Vendor table.

Quantity

 

Number(5)

Tells us how much quantity is stored or used.

 

 

7. Order

It provides information about the work order, how much quantity is ordered, type etc. Complete information is recorded in this table.

 

Field

Pk / Fk

Data Type

 

Description

Order#

Pk

Number(5)

Identification of serial no. of the order which has a unique numeric value so that duplication is not possible and neither is it possible that an item does not have a unique no.

Order_type

 

Varchar2(15)

Gives information about the type of order that is sent.

Order unit

 

Varchar2(25)

The units assigned to every order

Unit_cost

 

Number(5)

Tells us about the cost of the unit.

Work_

Order

 

Vachar2(50)

It tells about part no, shelf life code, additional MSDS etc.

Vendor#

Fk

Number(5)

Tells us who supplies the equipment. This field is used for the relationship with the Vendor table.

Quantity

 

Number(5)

How much quantity is stored, present or used

 

 

 

 

 

 

 

 

 

 

 

 

8. Purchase

Information includes the equipment purchasing date, warranty date, how much quantity purchased their parcode etc. it is the most important table for the inventory control.

 

Field

Pk / Fk

Data type

 

Description

Parcode

Pk

Number(5)

Identification of serial no of the purchased equipment or items which has a unique numeric value so that the duplication is not possible and it is not possible that an item does not have a unique no.

Purchasing_date

 

Date

Tells the date on which item or equipment is purchased

Unit_cost

 

Number(5)

Tells us the cost of a unit quantity.

Order#

Fk

Number(5)

Identification of order no. and is used as a reference with the order table.

Quantity_purchased

 

Number(6)

Tells how much quantity is purchased

 

9. Installation

Provides the complete information about the date at which the equipment is installed or uninstalled, and in how much quantity it is installed or uninstalled, and at which machine is installed. 

Field

Pk / Fk

Data type

 

Description

Installation date

Pk

Date

Give date of installation

Item#

Fk

Number(5)

Which item is to be installed

Quantity installed

 

Number(6)

How much is installed

Uninstalled

 

Number(5)

How much is uninstalled

Purchasing date

Fk

Date

At which date it is purchased

Location

 

Varchar2(15)

At which machine is it installed

 

 

10. Vendor

Give information about the vendor, address, how much quantity, he supplies and in who is the manufacturer.

 

Field

Pk / Fk

Data Type

 

Description

Vendor#

Pk

Number(5)

Tells us which equipment or item is purchased.

Vendor_name

 

Varchar2(20)

Describe the name of the vendor who supplies the material or inventory

Vendor_add

 

Varchar2(40)

Here we store the address of the vendors

Unit_cost

 

Number(5)

How much cost of a unit quantity

Quantity

 

Number(6)

How much quantity is required to be ordered for supply of the equipment or the items

Manufacturer#

Fk

Number(5)

This field is used to know who is the manufacturer of the item or equipment is. Here it is used as a reference

Order#

Fk

Number(5)

Identification of the order, to get the detail

 

 

 

That is how we will apply our new systems specifications. All above tables will be used in the Material Section’s data base.

clip_image026

clip_image028

Physical Design

Hardware Specification

Mechanical Maintenance System keeps pace with the highly developed network but due to the absence of the non-computerized Material Section of the Mechanical Maintenance System, its processing speed takes more time as compare to the other sections. We know that the Material Section is interlinked with the Mechanical Maintenance System as it is a part of the system. According to the current situation, two types of servers are present in the Maintenance Section.

Database Server:- A database Server not only hosts one or more shared databases, but also executes all database commands and services for information system. In PARCO, the database server host is a SQL database engine i.e. Oracle. 

Application Server:- An application Server hosts application logic and services for an information system. It is communicating on the front end with the clients and on the back end with the database server for data access and update. An application server is often integrating with the transaction server.

For the proposed system i.e. for the Material Section, we are using the same specification that the Material Maintenance Section has. This is because the Material Section is part of Mechanical Maintenance System, so it is better to use the same specification there as well. Specification for the proposed system is divided into two parts as shown above. Now the detail is as follows.

Hardware Specification

Name of Parts

Requirement

Cost

Processor

850 MHz

6,000

Ram

128 MB

1200

HDD

40 GB

4500

Mother board

Intel Built-in

5500

Network Card

 

400

Key board & Mouse

Standard

500

Fax Machine

Panasonic

15000

Laser Printer

HP

20000

Hub

16 ports

Or as per requirement

8000

 

Quantity of the Equipment Needed

Section Name

No of Computers Required

Total Cost

Local Purchase

3

97,300(Include Hub)

In charge

Supervisor

Clerk

1

53,100

1

18100

1

18100

Warehouse & Material Control

4

107,400(Include Hub)

In charge

Supervisor

Clerk (Inv. Control

Clerk Store

1

53,100

1

18,100

1

18,100

1

18,100

 

Application Software

Windows

2000 Advanced Server based

Already Purchased

Database

Oracle 8

Already Purchased

Reporting

Developer 6i

Already Purchased

Programmed Software

MAXIMO

Already Purchased

 

Network Specification

In the proposed system, we shall use peer to peer network by applying star topology. This is most flexible for communication between the computers. This network is connected with the network of the Mechanical Maintenance System as well as with the network of the Refinery as a whole. This will help the Material Section to communicate with other departments too.

Inventory Coding Form

The purpose of this form is to enter the detail of the inventory. We enter the Parcode and storeroom name or number and their details. We enter the current balance of the inventory, their uses or services, how much inventory is drawn out, as well as the quantity of inventory present. Then we enter the item details in which we enter the information stock number which is the same as the stock number of pipeline, the commodity class, and the item type, estimated usage (how much item will be used), also the demand usage quantity (how much wanted), about their hazard, their additional MSDC, shelf life code, condition code, the art number referenced by manufacturer.

In hazards we tell how dangerous the material is. In shelf life code we enter the information that how many times it lives in condition code. We enter the current inventory description. In add as spare parts we tell whether we add inventory or not, their inspection code (for checking inventory level) their handling code, the material insurance, how much quantity installed.

The CDI capitalized, issue restriction. We enter this information in item detail section. Then comes the storeroom information block. In this, we enter the information about where the inventory is placed, stock category, their standard cost, average cost, last Receipt cost, and in last storeroom section we enter the information about part number referenced by supplier. Finally there is the alternate items section. Here we enter the description about the alternative items. In this form, we have the advantage that we can add, subtract, save, edit, see the information that comes subsequently and exit from the form. The form that we developed is show on the next page.

clip_image030

Purchase inventory Form

This form is used for ordering to purchase the inventory. In this form, we write the details of equipment which we need, to which category it belongs to, the system, the location where it is placed, the item, the description, the vendor information, the manufacturer information.

The remaining section of this form consists of the IT section. Here we enter the IP address, computer name, serial number, Asset and calendar information, the information that at which time and date, the product purchase, who modified this at which date. We enter the information about costs, such as the total cost, the budget for purchasing the product, the inventory(level), product installation date, warranty date(date when the product will be expired), the price and replacement cost of product. We also enter some additional information in this form, such as group name, capacity level, the MCC number, Rated Ampere the circuit type and the quantity we add, cancel, save, delete. We can edit this information by the buttons provided on the purchase order forms. We can then exit from the form after completion. The form is shown on the next page.

clip_image032

Equipment history form

This form gives us complete information about equipment, from where to belongs, who to purchase, how to purchase, for whom to purchase, where it stored, how many equipment are available. Here first, we put the name and their description then gives information where it belongs.

Then in next there is subasseblie section in which we found complete information and history of equipment. For this purpose provide a button equipment parts to press this button we see information.

Besides this there is spare parts section in which they stored the information of spare parts item, their description, quantity, and finally their remark. The form is as under:

clip_image034

Material Issue Voucher

This form is basically used for issuing material which is used in different perspectives. Firstly we get information about the material issue voucher number in detail, list of material, then the location with explanation and the equipment name and their description. Besides this we know who made modifications and on which date. We can also know that who reported for a particular job and at which date. We can tell the status of the material and the general ledger account, the department name who issue which set of material and the working phone number of the department, as well as phone numbers where we can contact them in case of an emergency. The form is shown below:

clip_image036

Inventory Description Form

This form is used for inventory viewing and coding. To do this, firstly we have to type the product name. We see the product name in detail in front of this inventory coding form. Besides this, we also see the current situation or status of the product; for example, where is it placed, what is the situation at that time, and how it working, etc. Next, we get the information about total cost of product.

Below we see a box which is table shaped. In this we get information about different item of product, their description, about their performance or services, about storeroom name, in which storeroom it is stored, product’s part no. referenced by supplier and manufacturer. This gives us information about quantity which is available and that which is unavailable.

It tells us about the order that is ordered. In the next stage, end of form, we get information about the work order; we find who sent the order or who wants the order. The location of inventory, the equipment details, the name of the department or person who requested. Last of all, we get information about debit general ledger account. The form is shown below:

clip_image038

 

Cost & Benefit Analysis

According to our specification and the requirement of the current environment, time consumption of the processing becomes significantly decreased. By using the proposed system, there is flexibility for the management that they can directly get any type of information which is related to the Material Section. Every person has different rights to access the database according to their rank and importance in the organization. In the system, MAXIMO program is used to handle the operation within the Material Section. Local purchase, Warehouse, and Material Control Sections are interrelated together for the purpose of sharing, and to minimize the cost & time. Although the cost of doing this for the first time is high, it will automatically decrease after two or three years.

Network Diagram of Mechanical Maintenance System

After analyzing each and every aspect, we know that the Mechanical Maintenance System has a highly computerized network, which is shown in the figure. Star topology is applied in a peer to peer networking situation. Each section has their own small network, connecting with the hub and all these sections are further connected with a central hub which is controlling the flow of the data.

Maintenance Planning has six computers in their network, and one printer and one fax machine and these are all attached with the hub.

Local Purchase has three computers in their network, one printer and one fax machine, and these are all attached with the hub.

Material Control & Warehouse has four computers in their network, and one printer machine. Here the fax facility is not provided. And these are all attached with the hub.

Workshop has three computers in their network, and one printer machine. Here the fax facility is not provided. And these are all attached with the hub.

Field Maintenance Area 1,2,3,4,5 has seven computer, two printers, and one facsimile(fax) machine attached with a hub to the network.

All the hubs of the above sections are centralized by a high processing hub which is controlling the flow of network and it is connected with the central repository i.e. the DBA of Refinery as shown by the figure.

clip_image040
clip_image041

 

IMPLEMENTATION & Maintenance 

Introduction

Implementation is a very important phase for the development of any system .The phase includes the installation of hardware before the system is handed over to the user.

According to this phase the project team will release the program to play its part in the overall system; the programmer has just some tidying up to do.

How the team will release the program depends upon the installation. In most cases, however, the process will involve some kind of acceptance test; this is to ensure that the system is satisfied by the user or his/her representative. This is done by allowing the user to try out the new system to see whether his/her needs are met or not.

Installation info

µ Release documentation

µ User training

µ Data conversion,

µ Control procedures for the changeover.

Implementation may include three main phases:

 

µ Pre-Implementation

µ Changeover Procedures

µ Post-Implementation

 

Pre-Implementation

Before implementing the new system, we are giving some operational suggestions for the users and the management of the system. Those are as follows.

Release documentation

Documents like the user manual and operations manual have to be released to the user group. Here we handed them over to the Material Section people. This allows the future users to familiarize themselves with the functions provided by the system before attending any training session. Training sessions were necessary as the users were new to the computerized systems.

User training

During training, we gave users the chance to try out the system before they use it in the actual operation. They were also told of the overall workflow of the system, as this might give them a better understanding on the role they will play within the system which will be sure to improve their work performance.

Data conversion

The data is to be entered and adapted to the new environment. That is, data was converted to fit into the new format that the new system was using. For example, in changing from a manual system to a computerized system, all data required for processing is to be taken from the hard copies in the manual system and entered into the new computerized system. Data conversion was lengthy and a tiresome procedure.

Control procedure of changeover

A changeover procedure was selected based on the resources available and the necessities of having that procedure. After that, a set of fallback was listed to ensure smooth running in the operation of the organization.

Changeover Methods

First we tell you about all the methods and then we will tell you that which one we used.

Basically there are four methods available that can be used for the data transfer that will be followed.

 

1. Pilot conversion

2. Direct conversion

3. Phased conversion

4. Parallel conversion

 

Pilot conversion

In this method we will select a branch within the Material Section; and implement the new system in that selected branch. Reviewing the new system at the branch until we will satisfy with the performance. Then we will start implementing the new system with the whole Material Section. This method takes a longer time to implement but it has a backup system.

Direct conversion

The new system is converted overnight with the old system being discarded immediately. This is the cheapest but most dangerous way.

Phased conversion

In this method, we will convert the old system into a new system part by part. The second part of the new system will be implemented once the first part is running properly. This method is very slow too but safe.

Parallel conversion

The new and old system will both work together. When we will satisfy with the performance of the new system, the old system will be discontinued. This is the most costly method, but the safest.

All these methods are equally important but the one we choose is the parallel conversion as this is the safest. No doubt it is the most costly method as the refinery has to bare the cost of running two methods simultaneously, but it is very useful in accurate training of the users.

Post-Implementation

After the changeover procedure has been successfully completed, the system is ready for daily operational usage. But still the system has to be reviewed occasionally and to be maintained to make sure that the system is always able to cater for the needs of the system’s users.

Program reviews

It is normal to review the performance of any computer-based system occasionally after implementation. Such reviews concern the human as well as the computer activities; they may involve the user, systems, operations and EDP departments.

We will check all operational programs at intervals appropriate to their frequency of use. We did all this just to answer all these important questions about each program:

1. Does it match up to its estimated performance?

2. Is the thorough put is satisfactory?

3. Are there any operational or interface difficulties?

4. What amendments have been made since the last reviews?

5. Is the documentation satisfactory?

6. Whet further action is recommended?

Program maintenance

All the programs required maintenance. As far as users are concerned, the most important aspects of computing is running programs and keeping their performance in line with the Refinery’s requirements.

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