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350  Chapter 9 Operation Optimization
                9.2
                Historical Developments

                OO is an activity which was introduced gradually into the process industry. It began
                in the 1960s and 1970s with the scheduling of batches and equipment for proces-
                sing steps based on mixed integer linear programming (MILP).
                  Particular equipment selection optimization was developed and introduced at an
                early stage for the large mechanical workshops, where the production was often lim-
                ited by the different machines that were required for the different manufacturing
                steps.
                  Based on LP techniques, production planning became also practiced. During that
                same time-frame, off-line optimization for crude distillation at refineries started
                based on LP with a Simplex optimization technique. The operation of the refineries
                showed a higher productivity as a result of the implementation of the calculated
                operational regimes for the different crude oils. These models were also applied to
                feedstock evaluation. The introduction of LP optimizations in the process industry
                started for scheduling within the typical batch processes of drug and food manufac-
                ture.
                  At the beginning of the 1980s, commercial modeling software became available
                commercially, based on non-linear programming (NLP)techniques with a sequen-
                tial modeler for process simulation. The NLP techniques were very quickly accepted
                as tools for process design, particular for the chemical industry. Most of these
                designs are complex and non-linear. By the end of the 1980s, equation-based mode-
                lers were available for process flowsheeting. The software was specifically developed
                for much faster solution of very large problems, and also had the capability of hand-
                ling dynamic simulation. The introduction of NLP equation-based modeling was
                completed with an optimizer as SQP (Successive Quadratic Programming). This
                was the first opening for operation optimization of non-linear continuous processes.
                In the meantime, the capabilities of computing systems was passing through an
                exponential growth curve.
                  The availability of these tools made it possible for them to be used initially for off-
                line OO in the process industry. A number of off-line optimizations were developed
                for those continuous process industries which were subject to varying markets and
                feed stock conditions. It should be mentioned, that these variations should not be
                too frequent (less than once a day). The models were also applicable for feed stock
                evaluations. Refineries also converted their LP optimization into NLP optimizations,
                to achieve a higher accuracy level, and this resulted in more savings and extended
                the applications to other units such as hydro-crackers (Marlin and Hrymak, 1997).
                  A model with high accuracy makes it possible to operate closer to the plant con-
                straints. Savings, reported by different companies, all showed that productivity
                improvements were in the order of percentages of the operational cost for plants,
                subject to variations. Engineers from process plants that were exposed to less vari-
                able conditions learned that several plant conditions needed to be adapted signifi-
                cantly to comply with optimal conditions, and so achieved considerable savings.
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