SAP IS & Oil — An Introduction To SAP Silo Management

Silo/Tank Management in an Oil refinery allows a company to record physical material stocks in tanks (silos) hourly, daily, or weekly. As a part of that process, tank dips can be recorded in the System. The physical stock readings (tank dip readings) can be compared at any time with book inventories (storage location stocks, batch stock, or special stock), or with changes in book inventories (goods movement records). In that way, gains and losses can always be determined and goods movements can be monitored.

Silo/tank management function enables the definition of tank capacity and residual tank stock. Using tank strapping tables, the silo/tank management function allows the quantity of product in a tank to be determined by taking and recording tank dip information.

Identifying differences between physical inventory and book inventory is important for control purposes. The reasons for differences between physical inventory and book inventory include:

  • Breathing losses (vapor displacement)
  • Filling losses (vapor displacement and pipe flushing)
  • Calibration errors
  • Temperature variation
  • Thefts / Leaks / Spillages

Calibration differences refer to the accuracy of the measurement devices (such as meters) used to calculate the quantities loaded on vehicles or into pipelines and the accuracy of the method used to calculate the volume in a physical tank, such as the strapping/linear measurement method.

The refinery oil operation involves: the receipt of raw materials (such as crude and other feed stocks) via pipelines, storing and sometimes blending the crude before feeding the crude distillation units, storing the rundowns from the process units in intermediate tankage, blending intermediate components from tankage or rundowns to make finished products, and finally, shipping the products via pipelines to Refinery Marketing Terminal (RMT) and Exports/ Sales / Stock Transfer without involving storage in RMT.

Silo activities at Refinery

  • The volume of oil and water content (expressed in litres) is to be determined utilizing the ‘gross dip’ and ‘water dip’ information from strap table.
  • Finished product receipt in refinery tanks and subsequent diversion of the product to for blending to be taken care of for.
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