Chemical Plants: Performance Measurement of Processes

The article contains sections entitled:

1.	Introduction
2.	Performance Measurement Practices
2.1.	Performance Measurement Frameworks
2.2.	Performance Measures and Key Performance Indicators
2.2.1.	Corporate Performance Indicators
2.2.2.	Strategic Key Performance Indicators
2.2.3.	Operational Key Performance Indicators
2.3.	Performance Targets for Chemical Process Plants
2.4.	Performance Measurement Problem in Chemical Process Plants
2.5.	Performance Objectives of Batch Chemical Plants
3.	Operational Effectiveness Model
3.1.	Structure of Operational Effectiveness Model
3.1.1.	Step 1: Manufacturing Process Inputs
3.1.2.	Step 2: Effectiveness Measures
3.1.3.	Step 3: The Actual Process
3.1.4.	Step 4: Theoretical Determination of Performance Targets
3.1.4.1.	Determination of Ideal Cycle Time
3.1.4.1.1.	Prediction of Heat-Transfer Time
3.1.4.1.2.	Chemical Reaction Cycle Time
3.1.4.2.	Defining Ideal Yield
3.1.4.3.	Defining Ideal Production Quantity (Economic Batch Quantity)
3.1.5.	Step 5: Import of External Benchmarking Data
3.1.6.	Step 6: Comparisons and Identification of Gaps
3.1.7.	Step 7: Definition and Application of Improvement
3.2.	Example of Practical Application
4.	Conclusion

Performance measurement is a competitive tool widely used by manufacturing and service organizations to evaluate the output of business processes. Its fundamental purpose is to quantify the potential for improvement and construct plans for further development. This article aims to increase the understanding of performance measurement in chemical plants. Existing performance measurement practices are reviewed, and their roles in the improvement of business and operational results of chemical process plants are defined. A developed performance measurement model, called the “operational effectiveness model”, is also introduced. It comprises a sequence of several performance measurement steps which ensure that chemical batch plants operate efficiently and effectively.