Profit Improvement Program

Site-wide Facility Optimization

For over 40 years, the Profit Improvement Program (PIP) methodology has been KBC’s flagship process optimization solution with a focus on Non-Investment Quick Wins for an immediate return on investment. KBC has implemented over 150 profit improvement programs worldwide with an extensive client list including NOCs, IOCs, Independents and new owners. The results are achieved through:

Deploying a multi-disciplined team of subject matter experts with deep industry experience bringing an independent fresh view and objectivity

Applying KBC’s unique technology suite facilitating high-fidelity estimates of the improvement potential

Following a proven structured, rigorous methodology

Utilizing our change management expertise to facilitate, implement and sustain the changes in parallel with increasing commercial awareness, delivering best practices, and creating a culture of continuous improvement within our client’s organization

Profit Improvement Program Methodology Value Proposition

Our comprehensive approach can span the breadth of your business to identify and evaluate key sources of additional value.

Yield Improvement (from plant to site-wide and multi-site)

Energy and emission reduction

Supply chain optimization

Reliability, availability, and maintenance, including turnaround optimization

Human performance improvement

Major investment planning and feasibility studies

Our methodology doesn’t stop at evaluation. We work with our clients to implement the changes and realize the benefits in the bottom line. The Profit Improvement Program is typically cash flow positive in under a year, and implemented benefits via quick wins and minor investments are 5-10 times program costs.

Throughout the engagement, we work with our clients to improve work processes, deliver technology and build capability to ensure that the benefits of the program are sustained.

Gross Margin Improvement (40%-80%)

The biggest benefits are in the hard-to-measure molecular management, constraint management and supply chain feeds/ product yield optimization areas. This is, by far, the most important and biggest areas for maximizing return on capital and shareholder return.

Cost Reduction (5%-10%)

This focuses on the reduction in energy costs and maintenance costs with energy reduction being the main driver. Even though the benefits are smaller, the benefits are easier to measure. The energy reduction dovetails into KBC’s Energy Transition Solution for decarbonization.

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Capacity Utilization (5%-40%)

This can be a major driver for profit maximization depending on the gap for asset utilization from best possible and turnaround cost, frequency and duration. This part of the program focuses on Defect Elimination and Turnaround Optimization.

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Human Performance (Sustainment)

No Profit Improvement Program can succeed without sustaining the profits from the implemented opportunities and a continuous improvement program. This focuses on building the organization’s human capability and the tool-set at their disposal. The tool-set includes digitalized technology, work processes and best practice operating procedures.

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Profit Improvement Program Delivers $280 MM of Benefits

KBC implemented a multi-year Profit Improvement Program to bring about a STEP change in operational performance with a focus on improving margins, reliability, and safety using KBC’s Best Practices. This was followed by a sustainment program supported by KBC’s Human Performance Improvement Offering and Technology. The results included implemented benefits of > 200 MM$/yr and cumulative benefits of ~ 280 MM$. The sustained benefits were achieved via an organizationally aligned, trained capable workforce with a full technology tool-set and detailed multi-level 15 Work Processes and >2000 vetted Operating Procedures.

Meet our expert in profit improvement

"Maximizing profitability will require maximizing asset utilization, molecular management, constraint management, cost containment, and safe/reliable operation. The margins will continue to be volatile and the survival of the refiners will depend on making it through periods of low margins. There will be fewer refineries in the world but the remaining few will reap the benefits from their investments with high operating margins. Profit Improvement Programs (internally and externally) will be the need for the future. Converting these programs into a continuous improvement program will be the key to surviving in the future."