Strategic Business Planning

Strategic Business Planning

 

Global energy markets are constantly adjusting to meet demand while regulatory and societal trends continually steer the industry toward cleaner production methods and product specifications. Comprised of over 1,500 career-long energy industry specialists, Becht is passionate about helping clients achieve new heights in throughput and versatility while being vigilant stewards of resources and the environment.

To assist clients agilely address these challenges, Becht leverages world class Process Technology, Strategy, and Reliability SMEs, who bring lessons learned from the owner / operator experience, and utilizes a proven sitewide analysis methodology.  This methodology employs a holistic evaluation approach encompassing economic and technical feasibility of forward-looking projects with a practical real-world perspective, no matter how large or small.  Becht’s mantras of “get it right the first time” and “go slow to go fast” are applied in combination with fit-for-purpose tools and the right skill sets to collaboratively attain capital efficiency and meet business objectives of our clients.  Accelerated value capture and decision making, along with improved return on investment, are the metrics that demonstrate the benefit of involving Becht in your strategic business planning.

Contact an Expert
FHRISK Thumbnail

Strategic Consulting

Strategic consulting is a holistic analysis of greenfield and brownfield capital projects, including inside process battery limits, outside process battery limits, energy systems, and logistics.  The approach uses industry-recognized subject matter experts (SMEs) in the Becht Process Technology area along with proven methodologies.  Becht is technology agnostic, thereby allowing for an independent and fair analysis from conceptualization through project design definition.

Often, analysis is done “in part” and not “in whole”, resulting in less-than-optimum scope definition, unoptimized base line, and eventual capital cost escalation.  Historically, linear programs (LP) are used for these evaluations and, by themselves, do not have the granularity to make the best technical and economic evaluation.  Becht brings an independent viewpoint and nonlinear process tools to bear with LPs to accelerate and enhance the detailed analysis from the start. Early identification and evaluation of options in a robust environment provides confidence in stage gate approval for engineering funding, the asset achieving the desired operation, and avoidance of regret capital. Utilizing Becht’s approach can reduce the total project schedule for a major capital project by 6 months and increase IRR by at least 1%.

Custom Solutions Thumbnail

Asset Optimization / Margin Improvement

Continuous improvement is not just a phrase, it is a requirement to remain competitive in a rapidly changing market.  A margin improvement program utilizes Becht Best Practice methodology to identify and analyze opportunities within a whole site context. The collaboration of SMEs with client internal expertise captures the fundamental chemistry, operational knowledge, and Becht independence.  Becht’s owner / operator perspective approach is to understand the site strategy and constraints to identify potential opportunities.  These opportunities are prioritized and evaluated utilizing fit-for-purpose tools and industry expertise to quantify the value, assess the risks, and prioritize tangible actions to capture that value.

The value improvements can range between $0.10 to $0.50/bbl crude / feed (i.e. 10 to 20 times return on investment of professional fees) with zero or low capital investment.  The intangible value of facilitating cross system discussions within a site can revitalize an organization’s continuous improvement efforts and achieve greater total profit moving forward.

Brownfield Revamp Feasibility

Legislative initiatives and mandates are the drivers that incentivize upgrades or revamps to a processing scheme.  Brownfield changes without the proper front-end evaluation from an optimized base can be complex and lead to costly changes, regret capital, and an asset that does not meet business objectives.  The Becht approach is agnostic on technology, bringing an independent analytical methodology at the start of the project. The ability to rigorously and rapidly model a facility to examine options provides inexpensive insurance to forward investment decisions.

The Becht approach does not stop at the completion of the study.  Becht has the staff to maintain discipline and focus to assist in stewarding the project collaboratively with clients to achieve successful commissioning and operation.  The realized benefits for engagement of Becht are typically 30 to 50 times professional fees, depending upon the complexity of the project.

Greenfield Configuration Conceptual Design

The axiom of “go slow to go fast” highlights the true value of engaging Becht, starting at the conceptual development all the way to the site overall design basis document.  Becht is a positively disruptive force, utilizing people, tools, and systems to challenge the “way we have always done it” methodology.  Becht has the tools to improve the granularity of the analytics and the staff to effectively and efficiently develop configurations and complete economic sensitivity analysis that meet the forward market demands.  Becht has no allegiance to technology providers or EPC firms, thereby allowing for evaluation and selection of what are truly the best options for a client.

Becht employs an owner / operator mentality to keep a project focused on the highest value options while guiding Greenfield or novel technology systems through the definition and development phases.  The evaluation of systems is inclusive of all aspects of the facility from processing, energy, and oil movements / logistics.  Becht collaborates with a client to turn a “blank sheet of paper” into an economically viable and technically feasible project that is suitable for investment stage-gate approval by investors and executive leadership team.  Becht’s value has been demonstrated by a reduction in total project schedule of 6 months and an increase in project IRR of at least 1%.

Value Chain Optimization

Value Chain Optimization

One of the perpetual challenges in the process industry is margin maximization through value chain optimization (VCO).  The extreme complexity of the VCO problem is due to the numerous stakeholders, functions and interrelated decision points as well as the disparate point solution tools used.  The value chain can be viewed in one of two ways, either by business segment or by business function , but regardless of the definitive view, the end-to-end optimization requires a clear understanding of how to add value within each space.

Becht’s Value Chain Optimization (VCO) consulting is a comprehensive suite of support services and subject matter expertise that is first principles based, value focused, agility centric, designed on purpose and deployed with prioritization.  The VCO consulting suite includes modeling solutions, process solutions, performance analysis solutions and other solutions.

Modeling Solutions focus on building, upgrading, updating and maintaining supply chain, operations, blending and logistics modeling tools:

  • Linear Programs (LPs)
  • Discrete Event Simulations (Scheduling/Blending)
  • Stochastic Simulations (Logistics)
  • Price / Volume Input Calculation

 

Process Solutions are built around the task/purpose/value triangle within the workflow, work cycle and work procedure that focus on functional improvements in planning, scheduling, blending and oil loss management/production accounting.

Performance Analysis Solutions

  • Assessment and Benchmarking for tools and process
  • Discrete Performance Measurements and Quantitative Reporting
  • Data Driven Performance Analysis enabling collaborative enterprise value chain optimization.

 

Other Solutions include capability development, economic case studies, short and long term VCO resource support and business interruption or dispute claim support.

Becht’s client centric and value focused solutions improve VCO in a range of $0.10 to $1.00+ per barrel of crude feed (i.e. 10 to 30 times return on investment of professional fees) and promote sustained performance to continue and improve value capture.

Value Chain Optimization

Modeling Solutions

At the heart of value chain optimization (VCO) are the tools utilized to aid in the optimization decision making. These models are tasked with aiding in critical decision making related to crude selection, operating strategy, product blending, product slate, scheduling feasibility, inventory and logistics as well as supporting inputs. It is necessary to ensure that all these models are the most accurate representation of the assets, constraints, product movements, inventory, logistics and quality data.
LP Models — Becht provides support in building, upgrading, updating and maintaining linear programming (LP) models in full or in specific parts (process units, blending, etc.) for single plant, circuit wide, blending, and/or distribution scenarios for a single time period or for a multi-time period model. Becht subject matter experts (SMEs) have experience with LP modelling in all the commercially available software platforms.
Discrete Event Simulation Models (Scheduling) / Stochastic Simulation Models (Logistics) — Becht provides professional model support (building, updating, upgrading or maintaining) for operations scheduling, product blending, inventory management and logistics. Whether used for daily production applications (full asset models, specific asset sub-systems, product blending, multi-time blend optimization, scheduling logic, bias tracking and system data integration.) or specific scenario evaluations (asset right sizing, investment studies, event impacts, etc.), Becht provides practical and efficient modeling support based on experience and expertise.
Price / Volume Input Models — The price forecast and/or volumetric calculation input modeling is based on first principles economic calculations, easy to understand logic and a single input data source foundation. These input models are based on the organizationally provided base data and forecast assumptions that enables organizational consistency and understanding that results in a unique and understood point of view that becomes “your organization’s forecast”.

Model sustainment (managing and maintaining well structured models) is critical to maximizing value capture. Challenges to model sustainment include resource constraints, experience and capability limitations, data issues, disparate data sources and deficiencies in monitoring metrics to trigger maintenance. Becht provides a Model Sustainment Program (MSP) which is an expert-based model maintenance program that consist of three key activities – Assess, Align and Act. Assessment is integrated into MSP, from the beginning, to establish a baseline performance and then monitoring to know when maintenance is required through established KPIs as well as an annual model status review and report. These assessments lead to a prioritization of maintenance/improvement activities that align with the organizational strategy, goals and competitive advantage. Lastly, MSP executes these activities through agile “sprints” to quickly deploy prioritized improvements and deliver model confidence through continuous improvement and monitored performance.

Process Solutions

As critical as good tools are to value chain optimization, having the right optimization processes, organizational structure and knowledge/information exchange are fundamental to maximizing margin and capturing the most value from the use of those tools.  Becht SMEs have decades of real owner/operator experience that is the basis for these process evaluations and improvements.  Coupling that direct experience with the multi-disciplined experience of other related Becht services and divisions provides the foundation to break down value sinks and silos.  Becht’s approach considers the complete optimization process which includes the workflow, work cycle and work procedure.  Each process is viewed from an interactive triangle of task, purpose and value to ensure that there is clear alignment and clarity to VCO contribution.  This methodology quickly determines the activities that should be emphasized and/or eliminated.

These solutions focus on each function and interaction of the VCO from trading, through operational and technical planning, scheduling, blending to oil loss management (production accounting).  At the heart of the value chain are the planning, scheduling, blending and oil loss management activities.  The  planning activities include crude feedstock and product distribution evaluations, short, medium, and long-term hydrocarbon planning, term contract evaluations and LP model management and maintenance.  The scheduling activities include crude blending, full plant operational scheduling, scheduling model management and maintenance, product blend planning and optimization, scenario and risk-based scheduling and interactive operating instructions/communications based on key economic drivers.  Oil loss management (production accounting) activities are a crucial part of closing the loop and understanding actual performance while managing meter quality, reconciled bottom up plant data as well as automation and data integration.  Becht SME’s can help guide process improvements to industry best practice levels for all these activities through this methodology which may include work and/or data mapping, documentation, integration, and automation.

Performance Analysis Solutions

Its been said, “Measure what is important, don’t make important what you can measure.”  The key to the sustainment and improvement of great tools and value focused decisions is to measure the important points that enable not only identification of problems but also the identification of success.  The first is important to avoid the continued actions that degrade value while the later emphasizes the actions that are working well and to leverage them to greater effect.  Becht prescribes to this philosophy in our performance analysis solutions.  Becht SMEs are expert at helping determine what is important for each value chain optimization scenario and delivering the solution that enables collaborative enterprise optimization rather than simply gap identification and reporting.

  • Detailed Assessment and Benchmarking for value chain optimization models and processes based on “Becht Practices” which are a collection of superior industry standards. Delivers baseline assessment results, improvement recommendations, expected benefits and a practical implementation roadmap to success.
  • Discrete Performance Measurement and Quantitative Reporting — Assistance with and automation for repeatable performance measurement tasks like Plan-vs-Actual, LP model validation and blending give-away measurement.
  • Data Driven Performance Analysis — With new market dynamics and extreme competitive pressures, many are finding it necessary to leverage data to organizationally transform performance. Becht offers support to those on this transformation journey toward data driven performance analysis with a holistic and multi-disciplined approach to the data framework that is required to have a solid foundation and scalability.  Following a “Start small but think big” philosophy, Becht provides a prioritized and progressive data mapping and modeling foundation and data methods to assess, correct and condition data to ensure accuracy, completeness, reliability, relevance and timeliness from a technical experience base.  The goal of this effort is to provide data driven and on-demand reporting and visualization of the end to end value chain to enable more profitable business decisions.  Becht SMEs bring decades of hands on experience that ensure that what is being built and measured is important.

Other Solutions

There are many complementary elements of Becht’s value chain optimization solutions that support and reinforce the modeling solutions, process solutions and performance analysis solutions.  This list below is only categorical examples of the other support offerings and services that Becht provides.  Becht’s talent pool has decades of experience and is multi-disciplinary across the many divisions and skill sets that Becht provides for a custom value chain solution to any problem.

  • Becht SMEs are available to assist with capability development through on-site or virtual training and skills coaching in any of the related value chain areas related to modeling, process or performance or in custom first principles value chain and market and/or operational economics.
  • Providing support in conducting economic and/or evaluative case studies or performing the same as a service is core to Becht offerings. These studies are detailed economic studies for matters like small and/or large capital projects, feedstock evaluations, new product production evaluations, turnaround timing evaluations and specialized performance/value post audit.
  • Short and long-term value chain resource support is provided to fill in gaps during personnel transitions, unexpected departures, short term project coverage and long-term service-based support for model maintenance and planning activities.
  • With Becht’s broad experience base and expertise, business interruption or dispute claim support is provided to help quantify and substantiate the business loss in the event of a major business interruption or transactional/operational dispute. Becht also provides expert information, evaluation, and advice to legal teams to support positive resolutions for when such events occur.

Energy Optimization and Transformation Consulting

Energy Optimization and Transformation Consulting

Energy is the lifeblood of local and global economies, and within the energy industry, energy is not only a source of revenue generation but also a substantial cost to the underlying business.  Energy production and consumption trends are in a significant state of flux.  Electrification of transportation fleets continues to shape future energy demands.  Novel drilling techniques have made inexpensive natural gas readily available.  Both political and investor pressure drives the industry to utilize and produce energy in a more environmentally friendly way.  The fossil fuel industry’s mindset to meet these challenges must now evolve from “should we?” to “how will we?”

Becht utilizes knowledgeable subject matter experts, lessons learned from past experiences, along with proven techniques to assist clients with generating ideas, evaluating opportunities, and assessing novel or emerging technologies to meet energy use reduction and sustainability targets.  Becht is a trusted partner to provide a sensible and thought-provoking analysis that aligns a client’s mandates of effective stewardship of resources and the environment with shareholder value.

ECCD Thumbnail

Sitewide Energy Optimization

The discussion on energy optimization is shifting from simply improving efficiency towards an evolution of lower fossil fuel usage, consistent with climate change initiatives. Energy optimization is a complex issue that must consider shaft work delivery, power generation, steam usage, fuel consumption, heat integration, and water use / reuse.  The Becht team’s approach is holistic in nature by considering all energy generation and usage systems in conjunction with process requirements.

Becht completes site energy footprint gap assessments to identify opportunities to migrate from low cycle efficiency to higher cycle efficiency, all within a safe and reliable manner.  The holistic analysis accounts for energy and process credits and debits to generate net positive returns on investments as well as achieving site energy efficiency targets.

Greenhouse Gas Reduction and Sustainability Attainment

Greenhouse gas (GHG) emission reduction mandates are now a part of corporate discussions to lower the overall carbon footprint and mitigate environmental impact.  The core challenge is to achieve sustainability requirements while ensuring safe, reliable, and profitable operation. Becht can analyze a site with a client to reveal not only the value to lower GHG emissions but also the investment required to meet sustainability elements.  For some entities, co-processing of bio materials or use of green hydrogen and feedstocks may be sufficient, whereas other entities may require full scale conversion of refineries to bio processing facilities.  To meet this challenge, Becht considers the balance of shareholder and asset value with attaining climate change and sustainability targets.  Subject matter experts provide real world experience and tangible advice to clients as they progress through energy transformation initiatives.

The Becht approach encompasses all energy generation and usage systems, including application of wind, solar, and innovative technologies.  Becht’s methodology is to collaborate with clients to identify, screen, and analyze opportunity impacts and risks, thereby creating an actionable investment and execution plan to meet corporate and societal expectations.

Let Becht Turn Your Problem
Into Peace of Mind

Segment

Function

Value