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Successful
Integration of
Turnarounds
and Capital Projects
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CONFIDENTIALModule 7 - 2The IPA Institute - a Division of IPA, Inc.
Drivers of Turnaround ExcellenceCourse Roadmap
Turnaround Front
-
End Loading
Components
Team Effectiveness
Safety
Importance of Clear
Objectives
Integrat ion o f Turnarounds
and Capital Projects
Contracting
Overview of Turnaround Work
Process
Measuring Success and
Failure
•
Turnaround Integrat ion
•Turnaround FEL
• ICAT Index
• Turnaround Integration
Phases
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CONFIDENTIALModule 7 - 3The IPA Institute - a Division of IPA, Inc.
What Is Integration?
C
Integration is…..
ommunication
C
ooperation
C
oordination
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CONFIDENTIALModule 7 - 4The IPA Institute - a Division of IPA, Inc.
The Rate of Success at IntegratingProjects and Turnarounds
Most Sites Do Not Have
What It Takes
Dysfunctional:
59%
Successfully
Integrated:
41%
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CONFIDENTIALModule 7 - 5The IPA Institute - a Division of IPA, Inc.
Drivers of Turnaround ExcellenceCourse Roadmap
Turnaround Front
-
End Loading
Components
Team Effectiveness
Safety
Importance of Clear
Objectives
Integrat ion o f Turnarounds
and Capital Projects
Contracting
Overview of Turnaround Work
Process
Measuring Success and
Failure
• Turnaround Integration
•
Turnaround FEL
• ICAT Index
• Turnaround Integration
Phases
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CONFIDENTIALModule 7 - 6The IPA Institute - a Division of IPA, Inc.
Components of TFELProject Input Is Required fo r Those in Red
Turnaroundgoals
Stakeholderbuy-in
Worklist formaintenance,inspections,and capitalprojects
Scope controlmeasures
Work orders /engineeringpackages
Scope
DefinitionRoles andresponsibilities
Contractingstrategy
Scheduledevelopment
Risk mitigationandcontingencyplanning
Incorporation
of lessonslearned
Execution
StrategyTurnarounddate
Availability ofresources
Materialsdeliveries
Shutdown,startup, andoperationsprocedures
Detailed plans
– Job plans
– Riggingplans
– Scaffoldingplans
Planning
Status
+ + TFEL
Index
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Capital Project Process
IPA Turnaround Process Phases
T u r n a r o u n d
E x e
c u t i o n
G1 G2 G3
FEL IDetailed
EngineeringFEL II FEL III
Pre-TAR
Construction
G1 G2 G3
Project and Turnaround Process Phases
Definition Preliminary Planning Detail Planning
•Timing (and overlap with TFEL phases) of projectphases varies with size
•Requires discipline to authorize small projects
early
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Strategic integration takes placeindependent of individual projects andturnarounds, but has a major effect on the asite’s ability to successfully integrate
Integration Starts Early
Capital Project Process
IPA Turnaround Process Phases
T u r n a r o u n d
E x e
c u t i o n
G1 G2 G3
FEL IDetailed
EngineeringFEL II FEL III
Pre-TAR
Construction
G1 G2 G3
Definition Preliminary Planning Detail Planning
Strategic
Integration T F E L
0
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Strategic Integration Requires
•
Gated turnaround and project development process• Established near-, medium-, and long-term turnaround
plans for the site
– Timing and key milestone dates identified for each
turnaround
• Collection of project ideas and potential projects beforeloading into the portfolio
•
Strategic leadership body with decision criteria toinitiate or defer a project
– Site manager; technical, maintenance, and operationsdirectors; and business must have challenge capability tocheck vested interest
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Drivers of Turnaround ExcellenceCourse Roadmap
Turnaround Front-End Loading
Components
Team Effectiveness
Safety
Importance of Clear
Objectives
Integrat ion o f Turnarounds
and Capital Projects
Contracting
Overview of Turnaround Work
Process
Measuring Success andFailure
• Turnaround Integration
•
Turnaround FEL
• ICAT Index
• Turnaround Integration
Phases
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Integration Effects OutcomesOf Bo th Turnarounds and Capi tal Projects
Integration
Practices
Capital Projects
Outcomes
Turnaround
Outcomes
Turnaround
FEL
Capital Projects
FEL
ICAT
Index
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Project and Turnaround Integration PracticesImpro ve Effect iveness and Predictabi l i ty
Scope of
Work
Team
Development
ExecutionPlan
Execution
Control Plan
Capital ProjectTurnaround
Schedule
Slip
Schedule
Performance
Cost
Growth
Cost
Performance
Integrated
Practices
Outcomes
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Team
Development Execution
Plan
Integrated
Scope of
Work
Execution
Control
Plan
The ICAT IndexI ntegrat ion o f C apital Projects And
Maintenance T urnarounds
ICAT
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ICAT: Team Development
Capital Project Process
IPA Turnaround Process Phases
T u r
n a r o u n d
E x e
c u t i o n
G1 G2 G3
FEL IDetailed
EngineeringFEL II FEL III
Pre-TAR
Construction
G1 G2 G3
Definition Preliminary Planning Detail Planning
Team
Development
Identify a steering team
Identify the turnaround team members
Include operators on the team
Turnaround philosophy
Clear objectives and trade-offs
Define individual roles and responsibilities
Identify a single overall turnaround lead
T F E L
0
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Detailed
Engineering
Pre-TAR
ConstructionFEL III
PRACTICE: Integrated Scope of Work
Capital Project Process
IPA Turnaround Process Phases
T u r
n a r o u n d
E x e
c u t i o n
G1 G2 G3
FEL I FEL II
G1 G3
DefinitionPreliminary
PlanningDetail Planning
Integrated
Scope of
Work
Identify equipment/maintenance worklist
Capital project scopePre- and post-TAR project scope identified
Risk assessment of scope
Operational procedures
Engineering packages
G2
ScopeFreeze
T F E L
0
PRACTICE I t t d S f W k
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PRACTICE: Integrated Scope of WorkIFC Draw ing s at Scope Freeze A re Crit ical
Detailed
Engineering
Pre-TAR
Construction
Preliminary
Planning
FEL III
Capital Project Process
IPA Turnaround Process Phases
T u r
n a r o u n d
E x e
c u t i o n
G1 G2 G3
FEL I FEL II
G1 G3
Definition Detail Planning
Integrated
Scope of
Work
G2
ScopeFreeze
IFC Drawing s
•Issued-for-construction (IFC) drawings
represent capital project’s turnaround
scope
•Issued to turnaround team T F E L
0
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Detailed
Engineering
Pre-TAR
ConstructionFEL III
PRACTICE: Execution Plan
Capital Project Process
IPA Turnaround Process Phases
T u r
n a r o u n d
E x e
c u t i o n
G1 G2 G3
FEL I FEL II
G1 G3
DefinitionPreliminary
PlanningDetail Planning
Execution
Plan
G2
ScopeFreeze
Single integrated schedule
Safety plans/job plans
Contracting strategy
Labor analysis
Density analysis
T F E L
0
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Detailed
Engineering
Pre-TAR
ConstructionFEL III
PRACTICE: Execution Control Planning
Capital Project Process
IPA Turnaround Process Phases
T u r
n a r o u n d
E x e
c u t i o n
G1 G2 G3
FEL I FEL II
G1 G3
DefinitionPreliminary
PlanningDetail Planning
Execution
Control
Plan
G2
ScopeFreeze
Cost and schedule control plans
Cost estimate development
Change order procedures
Contingency planning
Identify shared costs
Long-lead equipment control
Pre- and post-turnaround cost control
T F E L
0
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Team
Development Execution
Plan
Integrated
Scope of
Work
Execution
Control
Plan
The ICAT IndexI ntegrat ion o f C apital Projects And
Maintenance T urnarounds
ICAT
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Drivers of Turnaround ExcellenceCourse Roadmap
Turnaround Front-End Loading
Components
Team Effectiveness
Safety
Importance of Clear
Objectives
Integrat ion o f Turnarounds
and Capital Projects
Contracting
Overview of Turnaround Work
Process
Measuring Success andFailure
• Turnaround Integration
•
Turnaround FEL• ICAT Index
• Turnaround Integrat ion
Phases
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T/A
Three Integration Phases for PlanningMaintenance Turnaround and Capital Projects
20 1018 16 14 12 8 6 4 2
Integration Phase I:Turnaround
Def ini t ion
• Form team
• Establish objectives,
priorities & trade-offs
Integration Phase II:
Prelim inary Plannin g
• Develop integrated
• Worklist
•
Contracting• Safety plan
• Control plan
• Develop preliminary cost &
schedule estimates
Integration Phase III:
Detailed Planning
• Finalize detailedintegrated schedule
• Complete risk mitigation
• Revise procedures as
needed
• Finalize cost & schedule
estimates
Hold final
reviews,
walkdown
jobs,
training
Number of Months Before Average Size T/A
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Identifying Turnaround-Capital Team LeaderImprov es Outcomes of Turnarounds and Projects
0% 10% 20% 30%
Capital-T/A Leader
No Leader Identified
Cost Growth(Actual/Estimated)
Turnaround Capital Projects
0.9 1.0 1.1 1.2 1.3
Capital-T/A Leader
No Leader Identified
Schedule EffectivenessIndex
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T/A20 1018 16 14 12 8 6 4 2
Integration Phase I:Turnaround
Def ini t ion
• Form team
• Establish objectives,
priorities & trade-offs
Integration Phase III:
Detailed Planning
• Finalize detailedintegrated schedule
• Complete risk mitigation
• Revise procedures as
needed
• Finalize cost & schedule
estimates
Integration Phase II:
Prelim inary Plannin g
• Develop integrated
• Worklist
•
Contracting• Safety plan
• Control plan
• Develop preliminary cost &
schedule estimates
Number of Months Before Average Size T/A
Hold final
reviews,
walkdown
jobs,
training
Three Integration Phases for PlanningMaintenance Turnaround and Capital Projects
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Scope of Work IntegrationAffects Costs of Capital Projects
Cost Effectiveness
-10% 0% 10% 20%
eviewed T/a Scope
Did Not Review T/AScope
Cost Growth(Actual/Estimated)
Cost Growth
0.9 1.0 1.1 1.2
Integrated EquipmentList
Non IntegratedEquipment List
Cost Effectiveness Index
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CONFIDENTIALModule 7 - 25The IPA Institute - a Division of IPA, Inc.
T/A20 1018 16 14 12 8 6 4 2
Integration Phase I:
Turnaround
Def ini t ion
• Form team
• Establish objectives,
priorities & trade-offs
Integration Phase II:
Prelim inary Plannin g
• Develop integrated
• Worklist
•
Contracting• Safety plan
• Control plan
• Develop preliminary cost &
schedule estimates
Integration Phase III:
Detailed Planning
• Finalize detailedintegrated schedule
• Complete risk mitigation
• Revise procedures as
needed
• Finalize cost & schedule
estimates
Number of Months Before Average Size T/A
Hold final
reviews,
walkdown
jobs,
training
Three Integration Phases for PlanningMaintenance Turnaround and Capital Projects
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CONFIDENTIALModule 7 - 26The IPA Institute - a Division of IPA, Inc.
Having an Integrated ScheduleImpro ves Schedule Effect iveness
0.9 1.0 1.1 1.2
Integrated
Not Integrated
Schedule EffectivenessIndex
Capital Projects
0.9 1.0 1.1 1.2
Integrated
Not Integrated
Schedule EffectivenessIndex
Turnaround
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Summing It All Up
• Integration affects all turnaround and project
outcomes• An integrated team is required to guide the
integration effort
• Major areas requiring integration include:
–Objectives, priorities, and trade-offs
– Worklist and work scope
– Schedule for execution tracking and control
– Contracting strategy
–
Contingency planning – Safety, controls, and material planning
• Timing of integration practices is as critical as thequality
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CONFIDENTIALModule 7 - 28The IPA Institute - a Division of IPA, Inc.
What Can Business Leaders Do?
• Clearly identify your priorities and communicate
these to both the capital project and themaintenance turnaround team members
• Do not delay in selecting which projects should beinstalled
• Support the team leader • Be willing to play a part in conflict resolution when
differences arise between turnaround and capitalproject team members
• Do not force unrealistic goals on the team, and thenbe disappointed when they are missed - listen to theexperienced team members (without allowingyourself to be bamboozled)
The Foundation Blocks of Integration
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CONFIDENTIALModule 7 - 29The IPA Institute - a Division of IPA, Inc.
Integration
Business Brings Together:
TAR Process &
Long-Term Plans
Project Process &
Portfolio Management+
Business Objectives to Turnaround
Goals“The Contract”
Managing
StructureSchedule
Development
Scope
Identification ++
Scope Freeze + IFC Drawings
Final IntegratedEstimate +
The Foundation Blocks of Integration
Integrated Plans,Controls, and Schedule
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CONFIDENTIALModule 7 - 30The IPA Institute - a Division of IPA, Inc.
Felix ParodiIPA Senior Project Analyst
Email: [email protected]: +1 703-726-5304www.ipainstitute.com
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Successful Integration ofTurnarounds
and Capital Projects