Improving operational efficiencies in chemical processing plants

The chemical industry is one of the United States’ largest manufacturing industries, serving both a sizable domestic market and an expanding global market. The sector converts raw materials into more than 70,000 diverse products essential to modern life and distributes those products to more than 750,000 end users throughout the country. Several hundred thousand U.S. chemical facilities — ranging from petrochemical manufacturers to chemical distributors — utilize, manufacture, store, transport or deliver chemicals along a complex, global supply chain.[1] It is also one of the top exporting sectors of U.S. manufacturing. The U.S. exported over $164 billion worth of chemicals in 2024. As a leader in chemical production, over 13 percent of the world’s chemicals come from the U.S.[2]

Given the many inputs that the chemical industry contributes to numerous supply chains, the industry has navigated many turbulent market conditions over the past five years. While it has experienced ups and downs since then, the American Chemistry Council (ACC) projects global chemical production to rise by 3.5 percent in 2025.[3] However, even with chemical production improving and margins reverting to average levels, the industry still faces challenges and uncertainty. Like other markets, chemical companies will navigate evolving macroeconomic conditions, shifts in policy and regulations across regions, changing customer preferences and advances in technology.[4]

In chemical manufacturing, precision is vital; it directly impacts product quality, safety and process efficiency. Manufacturers must maintain strict quality standards while managing complex production processes. Although many companies are aware of the full potential and significance of digitization, some are still using paper order systems and spreadsheets. However, new technologies can help companies streamline their processes, improve efficiency and reduce costs. Technology can also help companies stay ahead of their competitors by providing the needed tools to innovate and adapt to changing market conditions.

Data is key to increasing efficiency

In chemical production, process control systems collect data measurements during continuous or batch manufacturing. This information, and other data in the operation, could be key to unlocking untapped potential or driving industrial innovations.[5] Many analytics solutions focus on batch production, but there are a growing number of advanced analytics options — and quite different approaches — for continuous chemical processes, too.[6]

While accurate, real-time data is pivotal to operations, harnessing this data effectively requires advanced technology and analytical capabilities. Vast amounts of data are collected for industry reporting, predictive maintenance and safety enhancements, for example, but manufacturers may be challenged to effectively manage and analyze the data. While monitoring and alarms can improve system efficiency, they do not automate the labor-intensive reporting process or provide much-needed analytics that extract raw or summary values over a discrete time period.

Automated third-party reporting software, however, tracks all areas and data systems in a production facility. The ability to harness this data effectively can lead to smarter decision-making, improved processes, and a competitive edge. Analyzing historical data allows operations management to identify patterns, trends, and anomalies that may otherwise go unnoticed. Historical data analytics can help companies transition from reactive to proactive planning and keep planning aligned with operations. As the data is collected, it is summarized as key metrics and the final output is published in a formatted document accepted by regulatory agencies.

One example of effective process reporting is performing statistical analysis on alarm data. This can reveal problematic behavior that distracts operators and decreases efficiency. Reports can reveal bad actor alarms that exhibit unusually high activity. They can also surface chattering or stale alarms – conditions that oscillate quickly into and out of the alarm state, or that remain active for many hours or even days at a time. This kind of analysis helps inform a re-rationalization of the alarm system, ultimately leading to an HMI that presents only relevant, actionable alarms to operators, decreasing distraction and increasing productivity.

Reporting can also be applied directly to production assets or processes to validate or audit results. Batch-based production is often complex, involving many different units, material discharges, and procedures that must be executed precisely to maximize the yield while minimizing  waste and production time. Audit reports and golden batch comparative analysis help validate results, and identify specific areas for improvement.

Real-time manufacturing analytics empowers chemical manufacturers to improve process control by identifying anomalies and deviations from desired process parameters. This allows for immediate corrective actions, reducing the risk of production defects and ensuring consistent product quality.[7] This is especially important for batch manufacturing environments where [batch] output is at risk.

Increased communication

Many industrial facilities struggle with data across multiple platforms, hindering real-time analysis and action. The key to resolving this is to find solutions that integrate data into a digestible format for users, from production engineers to maintenance teams. Computerized maintenance management system (CMMS) and advanced Andon software helps teams not only know there is a problem but then takes things a step further by helping them understand what actions were taken to resolve the problems to enhance continuous improvement programs.

Keeping workers and managers informed – from alarms and alert detection to issue resolution – is key to reducing downtime, and improving operational efficiencies and quality control.

Reporting requirements

According to ACC president and CEO Chris Jann, chemical manufacturing is the most heavily regulated subsector of manufacturing, and the volume of regulations has doubled in the past 20 years. One example is the Chemical Data Reporting (CDR) rule, under the Toxic Substances Control Act (TSCA), which requires manufacturers to provide the Environmental Protection Agency (EPA) with information on the production and use of chemicals in commerce. Manufacturers are required to report if they meet certain production volume thresholds, generally 25,000 pounds or more of a chemical substance at any single site.

These government standards require all manufacturing software tied to the pharmaceutical and chemical processing industry to have sound security procedures, transparent checked-by/done-by capabilities and e-signatures. Beyond these EPA and FDA requirements,  operations must adhere to current Good Manufacturing Practices (cGMP), meet rigid standards, and be prepared to show reliable, accurate, and secure documentation and Electronic Batch Records.

To maximize efficiency and ensure regulatory compliance, these reports can be created through third-party software that seamlessly integrates with PLCs, SCADA, and historian systems. Advanced reporting solutions can even pull information from remote alarm notification software, allowing further analysis and optimization of condition response times.

Reporting software enables organizations to turn raw process data into actionable information, thereby increasing efficiency and reducing costs. Furthermore, automated reporting solutions streamline regulatory compliance by consolidating data from disparate sources like instrumentation readings, program or recipe setpoints, HMI audit trails, alarm history, and others. As the data is collected it is summarized as key metrics such as the deltas in the cleaning solution temperature or conductivity. The final output is published into a formatted document representing a detailed performance audit of the process execution.

Continuous improvement

According to the Ernst & Young CEO Outlook Survey 2022, digital transformation is the second-most prominent capital issue for chemical players across the globe.[8] Digital technology will help chemical companies in many ways, such as capturing critical data and drawing insights from it to achieve improved output at lower costs, scheduling preventative maintenance to minimize downtime, and facilitating accurate inventory planning to prevent stockouts.[9]

The efficient operation of machinery and processes is vital to meet production targets, maintain quality, and improve profitability. The integration of advanced software allows companies to be nimble and targeted with improvements for operational efficiencies. 

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