Distribution logistics in the process industries: establishing railcar requirements

  • Authors:
  • Charles H. White

  • Affiliations:
  • DuPont Process Engineering, DuPont Company, Wilmington, Delaware

  • Venue:
  • WSC '96 Proceedings of the 28th conference on Winter simulation
  • Year:
  • 1996

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Abstract

The Manufacturing World is often classified into Discrete Manufacturing and Process Operations.Process Industry Operations generally are classified as 'Batch' or 'Continuous'; we can think of these as producing 'stuff' as opposed to the discrete individual 'things' produced in Discrete Manufacturing Operations. These Manufacturing World's clearly have much in common, but there are areas in which they can be quite different. They certainly have overlap, but at the extremes they can be fundamentally different and present unique challenges. Continuity of Operations is one of these areas; some Continuous Chemical plants may operate 'around-the-clock' for several years between 'shutdowns'. This means that they literally continue to operate even when there are maintenance difficulties. They may slow down for grade changes or unusual operating conditions, but they do not stop altogether as this could force the entire production train down for a major overhaul/restart which can be very expensive and/or time consuming. For some chemical plants a total shutdown can poison the reaction catalyst. For some polymer plants a total shutdown can mean the molten polymer 'freezes' in the lines. Each of these will result in a long period of total outage while the plant is refurbished and restarted. When a Process is 'Continuous' in this sense, it certainly can create some unusual challenges from a "Logistics Viewpoint". Aspects of these challenges are JIT/WIP Inventory, Material Handling, and Product Distribution. This paper will (1) discuss these challenges with emphasis on Final Product Distribution and Railcar Requirements, and (2) briefly describe two cases where careful Analysis and Modeling helped lead to substantial improvements in Operations Understanding and to significant Financial Savings (both Investment and Cost).