AM-12-05 Maximizing Petroleum Refining Profitability through Lean Excellence Program: A Case Study

Description:

On the morning of February 18th, 2008 at Alon’s Big Spring, TX refinery, a loss of containment occurred in the Propylene Splitter Unit resulting in a massive explosion and fire. There were no fatalities, however, several employees were seriously injured and nearly half the refinery was destroyed. During the rebuild and for some time thereafter, low production volumes, supplier and customers needs, and rebuild-related expenses made it very difficult to maintain profitability. It was nearly two years after the explosion when the refinery returned to full operation. In addition to financial issues, employee morale had become extremely low, and the new refinery manager was delayed from assuming responsibilities for some eight months due to medical issues.