Real Time Optimization: Classification and Assessment

Abstract

Summary The Real-Time Optimization (RTO) Technical Interest Group (TIG) has endeavored to clarify the value of real-time optimization projects. RTO projects involve three critical components: People, Process, and Technology. Understanding these components will help establish a framework for determining the value of RTO projects. In this paper, the Technology component is closely examined and categorized. Levels within each Technology category are illustrated by use of spider diagrams, which help decision makers understand the current status of operations and the future RTO status. The perception of uncertain value has been one of the critical issues in adopting RTO systems in our industry. Therefore, case histories are reviewed to demonstrate the impact of RTO projects. To assist RTO project promotion further, we list lessons learned, suggest a justification process, and present a simple example of an economic-evaluation process. Introduction Industry case histories demonstrate many types of benefits from RTO such as production-volume increase; better return on investment (ROI); higher decision quality; health, safety, and environment (HSE) improvements; and operational expenditures (OPEX) reduction. However, they have lacked systematic project-evaluation processes for justification. Today, promoting RTO is, in essence, a competition for capital within a company. The project teams that recognize this fact and then clearly outline the purpose, benefits, costs (direct or indirect), and strategic business alignment of their proposals will be in an advantageous position to secure funding. Because RTO is still an emerging discipline, classifying projects of this nature is still dependent on an individual's point of view. This paper provides classification of RTO to help provide a common vocabulary to address a multitude of issues.