ipa institute-integration of turnarounds and capital projects

7/21/2019 IPA Institute-Integration of Turnarounds and Capital Projects

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Successful

Integration of

Turnarounds

and Capital Projects



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


Contracting

Overview of Turnaround Work

Process

Measuring Success and

Failure

•

Turnaround Integrat ion

•Turnaround FEL

• ICAT Index

• Turnaround Integration

Phases




What Is Integration?

C

Integration is…..

ommunication

C

ooperation

C

oordination




The Rate of Success at IntegratingProjects and Turnarounds

Most Sites Do Not Have

What It Takes

Dysfunctional:

59%

Successfully

Integrated:

41%





Turnaround Front

-

End Loading

Components

Team Effectiveness

Safety

Importance of Clear

Objectives



Contracting


Process

Measuring Success and

Failure


•

Turnaround FEL

• ICAT Index


Phases




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


http://slidepdf.com/reader/full/ipa-institute-integration-of-turnarounds-and-capital-projects 7/31CONFIDENTIALModule 7 - 7The IPA Institute - a Division of IPA, Inc.

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



Strategic integration takes placeindependent of individual projects andturnarounds, but has a major effect on the asite’s ability to successfully integrate

Integration Starts Early



T u r n a r o u n d

E x e

c u t i o n

G1 G2 G3

FEL IDetailed


Pre-TAR

Construction

G1 G2 G3


Strategic

Integration T F E L

0



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




Turnaround Front-End Loading

Components

Team Effectiveness

Safety

Importance of Clear

Objectives



Contracting


Process

Measuring Success andFailure


•

Turnaround FEL

• ICAT Index


Phases



Integration Effects OutcomesOf Bo th Turnarounds and Capi tal Projects

Integration

Practices

Capital Projects

Outcomes

Turnaround

Outcomes

Turnaround

FEL

Capital Projects

FEL

ICAT

Index



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



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



ICAT: Team Development



T u r

n a r o u n d

E x e

c u t i o n

G1 G2 G3

FEL IDetailed


Pre-TAR

Construction

G1 G2 G3


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



Detailed

Engineering

Pre-TAR

ConstructionFEL III

PRACTICE: Integrated Scope of Work



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



PRACTICE: Integrated Scope of WorkIFC Draw ing s at Scope Freeze A re Crit ical

Detailed

Engineering

Pre-TAR

Construction

Preliminary

Planning

FEL III



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



Detailed

Engineering

Pre-TAR

ConstructionFEL III

PRACTICE: Execution Plan



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



Execution

Plan

G2

ScopeFreeze

Single integrated schedule

Safety plans/job plans

Contracting strategy

Labor analysis

Density analysis

T F E L

0



Detailed

Engineering

Pre-TAR

ConstructionFEL III

PRACTICE: Execution Control Planning



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



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



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




Turnaround Front-End Loading

Components

Team Effectiveness

Safety

Importance of Clear

Objectives



Contracting


Process

Measuring Success andFailure


•

Turnaround FEL• ICAT Index

• Turnaround Integrat ion

Phases



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



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



T/A20 1018 16 14 12 8 6 4 2

Integration Phase I:Turnaround

Def ini t ion

• Form team




Detailed Planning




needed


estimates




• Worklist

•


• Control plan


schedule estimates


Hold final

reviews,

walkdown

jobs,

training




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




T/A20 1018 16 14 12 8 6 4 2

Integration Phase I:

Turnaround

Def ini t ion

• Form team






• Worklist

•


• Control plan


schedule estimates


Detailed Planning




needed


estimates


Hold final

reviews,

walkdown

jobs,

training





Having an Integrated ScheduleImpro ves Schedule Effect iveness

0.9 1.0 1.1 1.2

Integrated

Not Integrated


Capital Projects

0.9 1.0 1.1 1.2

Integrated

Not Integrated


Turnaround



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




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




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




Felix ParodiIPA Senior Project Analyst

Email: [email protected]: +1 703-726-5304www.ipainstitute.com



Successful Integration ofTurnarounds


ipa institute-integration of turnarounds and capital projects

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