quaker process industry maintenace performance improvement

Partner - The Quaker Group

Maintenance Optimization Planning&Upgraded Performance Solution

Contractor and Company Perfomance Improvement ProgramRoutine Maintenace, T/As and Small Projects

April 2013Bob SnellMOP UP Solution

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Agenda2Quaker Group IntroductionsQuaker Group Relevant QualificationsMaintenance Optimization & Performance Upgrade (MOP UP)Integrated Performance Discussion (Reliability & Planning)Quaker Group Site Diagnostic & Improvement PlanApproachQuaker Group Maintenance Performance ImprovementSustainability Discussion Quaker Group Maintenance Performance ImprovementProductivity Discussion Quaker Group Maintenenace ImprovementImplementation DiscussionOperations, Maintenance and Engineering (O.M.E.) Interface AnalysisQuaker Unit Rates & Unit Rate Contracts Quaker Application of Unit PriceContracting SolutionAppendixProcess Maps

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Introductions

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Bob Snell - Quaker Group PartnerManagement consultant to the global oil and chemical industry for 20 years in the areas of:StrategyOperationsOrganizationOperating background in the petroleum industry has covered:Process engineeringMarketingLine management positionsFunctional experience with Exxon Company U.S.A. and Exxon Chemical Americas in:OperationsSupply Coordination, Economics and PlanningMarketingProcess and project engineeringBS in Chemical Engineering, MBA and JD

Introductions4

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Larry Lester - Quaker Group Senior ConsultantOver 30 years ExxonMobil Baytown (largest US refinery) operations experience Top tier Solomon site in all categoriesExxonMobil Work Management Second Level Manager and Site AdvisorParticipated on a Team to write ExxonMobil worldwide maintenance best practices for Planning, Scheduling and Executing day-to-day routine maintenance jobsMember and Leader of ExxonMobil North and South America Work Management NetworkWrote, sponsored and implemented at least 15 Best Practices to improve Planning, Scheduling and Execution

Introductions5

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IntroductionsLarry Lester - Quaker Group Senior Consultant (Continued)ExxonMobil Area Maintenance Second Level Manager Responsible for managing day-to-day maintenance for 50% of the Baytown Refinery Supervision of 13 First Line Supervisors and 200 field techniciansDesigned and implemented Peer Assists to other sites on how to implement Work Management practices and tools.BS and MS (Stanford) Electrical Engineering

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Andy Callegari - Quaker Group PartnerDr. Andy Callegari Quaker Group Partner. Andy is a Partner in the Energy practice of The Quaker Group and is based in the Washington, DC area. Andy has 27 years of ExxonMobilexperience as a managerin Research and Engineering Technologyfocusedon theRefining and Supply businesses. As a manager with ExxonMobil he hasdevelopedstrategies aligned with key business drivers. Andy has managed the development and deployment of a wide range of technologies leading to competitive advantage at ExxonMobil. Some of these initiatives include: plant optimization; process control; reliability and maintenance; and analytical and equipmenttechnologies.

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Introductions

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IntroductionsAndy Callegari - Quaker Group Partner (Continued)Specific examplesof Andys experience as leader for major multi-year initiatives at ExxonMobil Corporation include:Implementation of GlobalSystems forEnergy Management (GEMS)A global Reliability and Maintenance program for upstream, downstream and chemicals Providing R&D and technology management in global margin improvement program involving industry leading molecule management initiative (MMP)Andy hasled, managed and executed numerous global programs for ExxonMobil Corporation. He has managedworld-wide engineering divisions of 125-150 engineers and scientists as direct reports. Andy has also led applications of technologies to change management initiatives involving functional leadership for thousands of employees across all global regions.

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IntroductionsAndy Callegari - Quaker Group Partner (Continued)These initiatives have involved an integrated approach to deploying management systemsfor global hydrocarbon businesses. The majority of change management initiatives have been comprised of best practices, technology and leadership components.Andy also has in-depth experience working with vendors and has led the development of vendor alliances at the president l level. One of these vendor alliances led to the de facto standard for refinery process control technology. Andys experience spans executive leadership from roles in fuels research in the laboratory to leading technology applications and processes in oil refineries, chemical plants and upstream facilities.

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IntroductionsAndy Callegari - Quaker Group Partner (Continued)Andy has a strong combination of management and leadershipexperienceand theability to work with senior business management and plant personnel.Andys background in Applied Mathematics provide a solid base for technical understanding and analytical skillsin leading and executing global initiatives in a very large, complex industry leading organization.Prior to joining Exxon Andyheld several academic positionsin Applied Mathematics and Applied Science at New York University in New York City, as well as the State University of NewYork. Prior to Andys 27 year Exxon career he was aconsultant tothe US Navy, NASA and the USDepartment of Energy. Andy holds a BS., MS, PhD Applied Mechanics & Math.

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Gil Marmol - Quaker Group Partner Gil is a Partner in the Energy practice of The Quaker Group and is based in Dallas. Gil was a McKinsey & Co. Director (Senior Partner) that worked in the Chicago and Mexico City Offices before moving to Dallas in 1983. Gil specializes in Performance Improvement in the oil and gas and chemicals industries. Gil was a leader in McKinseys organization and business process redesign practices. Provides advisory services and investment capital to early stage technology companies. Worked with leading private equity firms in the 2002 acquisition of an Indian based business process outsourcing company taken public in 2006- and a US based physician practice outsourcing company. Part of the executive management team that led the EDS turnaround that restored growth-profitability and generated share price performance at twice the peer group average.11

Introductions

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Gil Marmol - Quaker Group Partner (Continued)Designed and implemented a market focused organization and supporting management processes with both geographical and industry dimensionsLed major performance improvement projects with major profit impact including S G & A expense reduction of over $100 million in 2006Led the acquisition of MphasiS which extended the EDS foot print in India and the divestiture of AT KearneyDeveloped the business process outsourcing strategy and architected the Excellerate Human Resource Outsourcing joint venture with Towers PerrinAs CEO and Director, developed the concept for and led the creation of Luminant, one of the largest firms in the Internet professional services industry.12Introductions

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Gil Marmol - Quaker Group Partner (Continued)Identified the opportunity to use a consolidation strategy to create a nationwide firm.Conducted a nationwide review of the private firms in the industry, selected best candidates and reached acquisition agreements with eight firms.Created Luminant in a September 1999 IPO that both funded the acquisition of the eight private companies and provided working capital for Luminant.Integrated the acquired firms into a single operating entity and achieved a profitable revenue run rate of $160 million/year in the second quarter of 2000.Secured funding in September 2000 to provide growth capital for Luminants second year of operation.13Introductions

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Gil Marmol - Quaker Group Partner (Continued)As Vice President and Chair of the Operating Committee, held a variety of senior management positions. Grew sales from $350 million in 1995 to $1 billion in 1998 and laid the foundation for its February 1999 IPO. Chaired the operating committee, which managed the operations of the company.Developed the strategy for, and negotiated key long-term contracts with major clients, including the $200 million/year, ten-year strategic alliance with UBS.Held key operating roles - head of the technical infrastructure organization (data centers and networks) and chief financial officer.Completed several acquisitions, including the purchase of a leading technology organization specializing in digital commerce, and a consulting firm specializing in payment systems.14Introductions

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Gil Marmol - Quaker Group Partner (Continued)Served on the board of directors of SYSTOR, the largest Swiss technology services company, jointly owned by UBS and Perot Systems.As McKinsey & Company Director (Senior Partner) worked in the Chicago and Mexico City Offices before moving to Dallas in 1983. Drove the Dallas Office through 10-fold growth in the 1983-1995 period. Over a 10-year period, a major consumer goods company increased operating profits by two and one-half times, and market share to over 50 percent. All major domestic competitors exited or retrenched. Internationally, businesses were built in Europe, Latin America, and the Pacific Rim, with dominant competitive positions.15Introductions

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Gil Marmol - Quaker Group Partner (Continued)Over a five-year period, a major US railroad increased its net income by nearly 100 percent and tripled its market value. Through a major acquisition, the competitive structure of the US industry was reshaped and the company increased its revenues and profits by 50 percent.Over a five-year period, a leading energy company established a leadership position in two of the largest US energy markets.Over a two-year period, a large but troubled diversified industrial conglomerate regained a sound financial base and reshaped its entire portfolio of businesses.Leader of the organization and business process redesign practices. Completed a study of high performing organizations; this work was reported in the Wall Street Journal and underpins McKinseys organizational work around the world. 16Introductions

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Gil Marmol - Quaker Group Partner (Continued)Published articles in The McKinsey Quarterly on information technology management and on issues in the insurance industry in Bests Review. Member of the personnel committee that makes senior partners election decisions.Community and EducationMember of the board of the Center for a Free Cuba in Washington DC. MBA, With Distinction, From The Harvard Business School 1978BA, Magna Cum Laude, in Engineering and Applied Physics from Harvard College - 1975. Fluent in Spanish.17Introductions

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Relevant Qualifications

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ExxonMobil Baton Rouge Planning Improvements

Evaluated maintenance planning practices and designed site specific solutionsConducted on site training for approximately 30 planners using estimating standardsImplemented Planner assessments and grading processDeveloped end of job sustainability model for siteConducted 3 day onsite Planner Training

Gulf Coast Planner Training Conference

Conducted offsite planner training for several refineries and chemical plantsTrainining included real world assignments with industrial pictorialsReceived very high course ratingsSeveral sites have requested additional on site support

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Case Experience: Competitive Assessments & Strategy - Energy20ClientBusiness ContextThe Quaker Group Approach and OutcomeCasework CredentialsEuropean National Oil CompanyLed an engagement that identified least cost competitive clean product suppliers as well as a robust, market based basis for make-or-buy refined product economics.For an Eastern European National Oil Company provided a competitive analysis of potential clean product suppliers to meet indigenous demand. The analysis included modeling over 100 Western European, Eastern European, Mediterranean, and North African refineries to determine potential least cost clean product netback suppliers. The analysis formed the basis for discussions regarding joint ventures, strategic alliances, and toll processing arrangements.Large international Integrated Oil CompanyPerformed a rigorous analysis of the impact of US EPA Clean Air Act Amendment mandated limits on US gasoline BTX levels. The analysis led to a rational basis for intra-company transferring pricing between the refining and chemicals business units. For a major U.S. Oil Company provided a strategic competitive assessment of their North American hydrocarbon solvents business. The scope of the work included an analysis of the break-even economics associated with benzene, toluene, and xylene (BTX) supply and demand in a post reformulated gasoline (RFG) environment in the U.S. and Canada. Refinery modeling, gasoline blending, and BTX transportation logistics were the primary quantitative aspects of this work.

Examples Not Exhaustive

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Case Experience: Competitive Assessments & Strategy - Energy21ClientBusiness ContextThe Quaker Group Approach and OutcomeCasework CredentialsRegional Integrated US Oil CompanyIdentified best case liquid hydrocarbon transportation business opportunities that led to incremental crude supply sources at competitive netback prices.. For a major international West Coast oil company provided a strategic assessment of liquid hydrocarbon transportation business opportunities in Latin America. The scope of the engagement included current and projected crude oil, clean product, and natural gas liquids supply and demand. The strategic assessment included current and projected barriers to foreign participation in each business sector along with the current and projected competitive environment. The client objective was to leverage core competencies in liquid hydrocarbon transportation with potential Latin American partners in order to access new crude oil supply sources.Regional US West Coast Refiner and MarketerIdentified most probable, highest netback markets for marginal clean products production for a US West Coast Refinery and Marketer that led to an uplift in tributary spot market petroleum product price realization.For a major West Coast refiner and marketer developed an Asia Pacific business entry strategy for their downstream businesses. The scope of the analysis included individual country characterizations of the current and projected investment climate, competitive environment, economic and fiscal factors, and regional refined product price forecasts. A critical aspect of the analysis included Asia Pacific price setting mechanisms and trade projections.


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Case Experience: Operations Performance Improvement - Energy22ClientBusiness ContextThe Quaker Group Approach and OutcomeCasework CredentialsEuropean National Oil CompanyProvided rigorous assessment of national oil companys distribution network that led to a consolidation of terminal assets and transportation costs leading to a cost reduction of up to 30%.Provided consultation to a Central European National Oil Company regarding the rationalization of clean product distribution assets. The engagement involved training and mentoring local consulting staff as well as the client team. The deliverable involved development of an LP model for all of the countrys clean product transportation and storage assets and subsequent recommendations leading to a reduction in fixed and variable costs of up to 30%. Large international Integrated Oil CompanyPerformed an analysis of a large national oil companys refining and marketing downstream assets that identified cost and yield enhancements leading to margin improvement of up to 35 cents per barrel. Completed and presented a Benchmarking study of the Saudi Arabian Marketing and Refining Companys wholly owned and joint venture refineries. The scope of the study included opportunities for continuous improvement in the areas of operating cost reduction, yield enhancement, asset protection, inter-divisional and intra-divisional interfaces and human resource management.Regional Integrated US Oil CompanyIdentified and implemented best practice operations performance evaluation processes that led to top quartile operating cost and normalized high value products yield. For a Canadian independent refiner and marketer developed enhanced unit-level reporting and operator performance measures for a 200,000 BPD top-quartile refinery. Collected information on a unit level (such as feeds, energy consumption, catalyst, yields, etc.) and trained operators to utilize such information to make daily and hourly decisions to uplift the unit or reduce costs.


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Case Experience: Operations Performance Improvement - Energy23ClientBusiness ContextThe Quaker Group Approach and OutcomeCasework CredentialsEastern European National Petrochemical CompanyProvided operations improvement advice to a company emerging from communism into a free market system. The work led to increases in free cash flow and a higher capitalized cash flow valuation in a public equity offering.For an Eastern European National Chemical Company provided a benchmarking analysis and valuation on the basis of capitalized cash flow to identify areas for profitability improvement. The purpose of the study was to improve the profitability of this national petrochemical company prior to privatization through the issuance of foreign equity capital.Regional US Refiner and MarketerFor the executive committee of a niche U.S. refiner and marketer provided business formation assistance to maximize shareholder value. The assessment included potential joint venture or strategic alliance partners to form separate companies that would allow for the spin-off of underperforming assets without raising the companys cost of capital. The scope of work included characterizations of all West Coast refiners and marketers on the basis of supply security and competitive retail position in various geographic areas.


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Case Experience: Operations Improvements - Oil and Gas24ClientBusiness ContextThe Quaker Group Approach and OutcomeCasework CredentialsLarge regional US Refiner/ChemicalsLed a team of Engineers, First Level Supervisors and Programmers to design and implement site operations and maintenance improvement practices. Reduced overall costs by 15% to 30%.Evaluated existing practices and identified productivity and cost gaps. Designed , implemented, trained and coached organization on how to install new practices and capture cost savings. Realized a 15% to 30% savings across all operations.Achieved 1st Quartile Solomon performance.Large regional European Refiner Conducted diagnostic and peer assist to reduce maintenance costs by streamlining processes. Conducted a benchmarking analysis of the maintenance functions for a major European refining company, recommended Work Selection, Planning, Scheduling and Execution improvements along with 20% staffing reductions.Large integrated US Oil and GasManaged maintenance for half of the site operating facilities and realized improved Safety and cost reductions.Provided leadership to execute maintenance using improvement techniques. Trained direct reports to become better leaders and expect improved performance from their field crews. Set new Safety expectations and led group to a 7 year string without a recordable injury.


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Case Experience: Operations Improvements - Oil and Gas25ClientBusiness ContextThe Quaker Group Approach and OutcomeCasework CredentialsSouth America Oil and Gas RefinerConducted a site peer assist and diagnostic to reduce operating costs. Evaluated existing Planning , Scheduling and Execution practices and recommended organizational, system and work process changes to reduce field staffing by 30%.Recommended changes to improve safety performance.Americas Oil and Gas RefinersLed Network of Maintenance Second Level Managers to design improvement Best Practices. Designed and implemented majority of Best Practices being used by all sites to achieve maintenance efficiencies and staffing reductions. Americas Oil and Gas RefinerSolomon Rankings Improvement Mass Balancelead an effort to improve their overall refinery boundary material balance from a lowest quartile Solomon ranking. This effort determined and corrected the factors leading to a 98.5% balance and improved it to a 99.8% balance overall without significant cost requirements. The main drivers were finding and correcting major errors in the calculations as well as making sure that the data was correct and verifiable. Produced guidance for on-going correction of unit to unit material balance to correct as much as +/- 40% unit imbalance to provide a targeted +/- 1% balance. Taken in total, this has been identified to result in potential savings of greater than $100MM annually.


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Case Experience: Competitive Assessments & Strategy - Energy26ClientBusiness ContextThe Quaker Group Approach and OutcomeCasework CredentialsEuropean National Oil CompanyLed an engagement that identified least cost competitive clean product suppliers as well as a robust, market based basis for make-or-buy refined product economics.For an Eastern European National Oil Company provided a competitive analysis of potential clean product suppliers to meet indigenous demand. The analysis included modeling over 100 Western European, Eastern European, Mediterranean, and North African refineries to determine potential least cost clean product netback suppliers. The analysis formed the basis for discussions regarding joint ventures, strategic alliances, and toll processing arrangements.Large international Integrated Oil CompanyPerformed a rigorous analysis of the impact of US EPA Clean Air Act Amendment mandated limits on US gasoline BTX levels. The analysis led to a rational basis for intra-company transferring pricing between the refining and chemicals business units. For a major U.S. Oil Company provided a strategic competitive assessment of their North American hydrocarbon solvents business. The scope of the work included an analysis of the break-even economics associated with benzene, toluene, and xylene (BTX) supply and demand in a post reformulated gasoline (RFG) environment in the U.S. and Canada. Refinery modeling, gasoline blending, and BTX transportation logistics were the primary quantitative aspects of this work.


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Case Experience: Competitive Assessments & Strategy - Energy27ClientBusiness ContextThe Quaker Group Approach and OutcomeCasework CredentialsRegional Integrated US Oil CompanyIdentified best case liquid hydrocarbon transportation business opportunities that led to incremental crude supply sources at competitive netback prices.. For a major international West Coast oil company provided a strategic assessment of liquid hydrocarbon transportation business opportunities in Latin America. The scope of the engagement included current and projected crude oil, clean product, and natural gas liquids supply and demand. The strategic assessment included current and projected barriers to foreign participation in each business sector along with the current and projected competitive environment. The client objective was to leverage core competencies in liquid hydrocarbon transportation with potential Latin American partners in order to access new crude oil supply sources.Regional US West Coast Refiner and MarketerIdentified most probable, highest netback markets for marginal clean products production for a US West Coast Refinery and Marketer that led to an uplift in tributary spot market petroleum product price realization.For a major West Coast refiner and marketer developed an Asia Pacific business entry strategy for their downstream businesses. The scope of the analysis included individual country characterizations of the current and projected investment climate, competitive environment, economic and fiscal factors, and regional refined product price forecasts. A critical aspect of the analysis included Asia Pacific price setting mechanisms and trade projections.


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Case Experience: Organizational Restructuring - Energy28ClientBusiness ContextThe Quaker Group Approach and OutcomeCasework CredentialsLarge regional refiner and marketerLed the an engagement that consolidated the distribution and retail operations of a large regional refiner and marketer.Reviewed alternative organizational models for consolidating distribution and retail operations of a large regional refiner and marketer, enhancing customer retention, reducing costs, and improving service.

Large regional European refiner and marketerReduced refinery maintenance cost by as much as 40% for a large European refiner. Provided a benchmarking analysis of the maintenance functions for a Northeastern European refining and marketing company, recommending a staffing reduction of 40% and outsourcing of non-core activities.Large integrated European national oil companyPerformed a benchmarking and restructuring implementation plan for an integrated downstream oil company that included refining, distribution, marketing and shipping supply chain segments. Provided organizational restructuring analysis that focused on Refining, Distribution, Marketing, and Shipping Divisions for an East Asian National Oil Company, identifying areas for improvement and cost reduction; as well as a road map for implementation.


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Quaker GroupMaintenance Optimization & Performance Upgrade (MOP UP):Integrated Performance Concept Discussion29

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Maintenance Optimization

The Optimum Maintenance Strategy Will Comprise A Mix Of:PreventivePredictiveReactive Tasks All Activities Will Be Targeted According To Equipment:CriticalityFailure Mode ConsequencesThe Impact Of This Is To :Increase Maintenance EfficiencyEnable Reduced CostsImprove Equipment PerformanceEquipment Performance

Impact Of Increasing Maintenance EfficiencyTotal Business CostOperations & Maintenance CostConsequential CostImproved EfficiencyOptimum Point Moves To Lower Life Cycle Cost & Higher Equipment PerformanceOriginalOptimumNewOptimum$

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Streamline Processes & ServicesCapital Program OptimizationStrategic and Tactical Operations & Maintenance Planning

Years

ProjectCashBalance

+ ve

- ve

GoodAveragePoor

Life of the InvestmentThe Quaker Group Focus onValue ImprovingPractices That DeliverInvestment Performance~ 15-25% Cost Reductions

FELDeliveryOperation31

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Asset Contribution Benefits from Streamline ProcessesPlanOperateCreate

Output

Increased AssetContribution

Increased AssetPerformanceLower TotalLife CycleCostsPlanOperateCreateOutputThe Quaker Group products and services deliver improved asset contribution by assisting clients in streamlining their processes throughout the assets life cycle.32

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Whole Life Cycle Asset Management

Policy and Strategy ConsultingBest Practice Assessment And BenchmarkingMaintenance OptimizationTechnical Services ARM, FMECA, TPMEtc.

TurnaroundsERP / CMMS ImplementationTraining, Support &Knowledge Transfer

Procurement Optimization

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PlanOperateCreateOutputIntroduction Asset Contribution and Output

PlanOperateCreateOutput

Enhanced Asset PerformanceIncreased Plant ProductivityIncreased PlantReliabilityImproved OutputQuality

Controlled byWhat you do

Increased OutputWhat you do Determined by Maintenance and Asset Optmization34

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PlanOperateCreateOutputIntroduction Asset Contribution and Operating Costs


Improved Asset PerformanceImproved Process Control & EfficiencyImproved Delivery OfOpexReduced ContractorCosts

Controlled ByWhat You DoHow You Do It

ReducedCostsImproved Procurement& ContractingImproved StaffCompetencyWhat You Do A Function Of Asset Confirguration And Optimization Based N Market DemandsHow You Do It A Function Of Processes And Capabiltities Leverged By Technology35

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Current Operator &Maintenance ActivityMaintenanceOptimizationProcessHF-4

OperatorChecksMaintenanceCM ActivitiesEtc.BTFE

OperatorChecksMaintenanceCM ActivitiesEtc.Pipestill 8

OperatorChecksMaintenanceEHS ActivitiesEtc.Optimized Maintenance Plans

Plant History and staff Knowledge

Delivery Processes and BenchmarkingInternalResourceContractorResourceSkills &CompetencyWorkPlanning &ControlTools,Technologies &SupportContractingStrategiesImprovedProductivity Output Driven

Right First Time

Improved ProductivityProcesses For Resource

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Right First Time


Whole Life Cycle Asset ManagementCurrent Operator &Maintenance Activity

MaintenanceOptimizationProcessHF-4



OperatorChecksMaintenanceEHS ActivitiesEtc.Optimized Maintenance Plans

Plant History and staff Knowledge

Current Operator &Maintenance ActivityWhat You Do37

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Current Operator &Maintenance ActivityMaintenanceOptimizationProcessHF-4



OperatorChecksMaintenanceEHS ActivitiesEtc.

Optimized Maintenance PlansPlant History and staff Knowledge



Right First Time


How You Do It38

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Asset Contribution Benefits from Streamline ProcessesPlanOperateCreate

Output

Increased AssetContribution

Increased AssetPerformanceLower TotalLife CycleCostsPlanOperateCreateOutputThe Quaker Group Products And Services Deliver Improved Asset Contribution By Assisting Clients In Streamlining Their Processes Throughout The Assets Life Cycle.Align Accountability with Controllability40

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PlanOperateCreateOutputIntroduction Asset Contribution and Output


Enhanced Asset PerformanceIncreased Plant ProductivityIncreased PlantReliabilityImproved OutputQuality

Controlled byWhat you do

Increased OutputWhat you do Determined by Maintenance and Asset Optimization41

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PlanOperateCreateOutputIntroduction Asset Contribution and Operating Costs


Improved Asset PerformanceImproved Process Control & EfficiencyImproved Delivery OfOpexReduced ContractorCosts

Controlled ByWhat You DoHow You Do It

ReducedCostsImproved Procurement& ContractingImproved StaffCompetencyWhat You Do A Function Of Asset Configuration And Optimization Based N Market DemandsHow You Do It A Function Of Processes And Capabilities Leveraged By Technology42

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Quaker Group KPIsAlign Practice with CultureNormalized For Asset configurationOrganizational structureReporting relationshipsInter and intra company stakeholdersAvailable enabling technologyContractor mixRegional skill availabilityInternal / external resources

Illustrative Asset Management Objectives Quaker Deliverables

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Illustrative Asset Management Objectives Quaker DeliverablesTo Achieve An Average Of 97% Plant Availability Over The Financial Year 2010-2011Achieve Availability Targets At A Minimal Life Cycle Cost And In A Safe And Sustainable MannerCommissioning Of New Facilities And Enhancement Projects, Fully Compliant With The Reliability & Maintainability ProgrammeManage The Engineering Opex Spend To Reduce 5% Year On Year Over 2009-2012Incur No More Than 2 HSE Incidents Over The Financial Year 2010-11

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Policy and StrategyObjective 1BusinessDriversBusinessObjectivesObjective 2Objective 3OperationsDrives Effective CommunicationEnsures Activities Are Linked To Business Drivers

Asset Management InitiativesAssetManagementObjectivesObjective 1Objective 2Objective 3Objective 4Asset Management Policy & Strategy

RefineryChemicalsOn-ShoreOff-ShoreExtractionSynfuelsTar SandsMiningIn-Situ

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Output Policy And Strategy Structure

Asset Management FrameworkSenior Management

Document / OutputTarget AudienceBriefAM PolicyExternalOrganizations & People

FullAM PolicyAll SiteManagement& StaffOverall AMStrategyAll Site Management& Staff Associated with AM

Discipline / Function Specific AMStrategyManagement& Staff Associated with Discipline

BP 1BP 2BP 3BP 4Quaker Proprietary Best Practice LibraryCurrent Asset Management Policy and Strategy

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Asset Management Quaker Group Best Practice AssessmentOverall Objectives

Align Asset Management Improvement With Business ObjectivesDiscretionaryNon-DiscretionaryTo Identify Areas Of Best Practice And Opportunities For ImprovementTo Provide A Costed Plan With Projected ROI For Improving Maintenance Productivity And Operational EfficiencyBenchmark Results(Log8 Scale)

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Asset Optimization Best Practice AssessmentOverall Objectives

To Align Asset Management Improvement With Business ObjectivesTo Identify Areas Of Best Practice And Opportunities For ImprovementTo Provide A Costed Plan With Projected ROI For Improving Maintenance Productivity And Operational Efficiency

Achievable Goals in Next 3 to 5 YearsCurrent StatusScoreQuaker Methodology

Action PlanResults RadarBest Practice AuditPlanning Best Practices

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Maintenance Objectives & PolicyMaintenance PlanningStores and Spares ManagementSystems and Data ManagementCondition Based MaintenanceKey Performance IndicatorsMaintenance OptimizationTeam-BuildingTrainingLife Cycle CostsSafety EnvironmentAsset Management Best Practice DiagnosticQuaker Group Asset Management Best Practice Assessment

Detailed examination across 12 key enablers:


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Originated From Aircraft Industry In 1960sRCM Is Zero-based Approach Which Requires A Team To Complete AnalysisWhile Very Effective For Complex And Mission Critical Systems Can Be Very Time Consuming And Resource HungryMany Industrial Organizations Have Started RCM Programs Only To Abandon Them For A Lite Version Or Abandon The Initiative All TogetherReliability Centered MaintenanceMaintenance Optimization Process RCM and REMDecreasing Failure RateConstant Failure RateIncreasing Failure Rate

Run InPhaseUseful Life PhaseWear OutPhase

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Maintenance Optimization Process RCM and REMDeveloped in 1980s as an industry focused optimization process which is benefit and production centric

Utilizes real operational experience to focus on root-cause analysis

Achieves the majority of the benefit from RCM more rapidly with significantly less investment (typically 30-50% of the effort for RCM)Review of Equipment Maintenance

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Overview: Upgraded Performance Solution (UP)

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Maintenance Optimization Program

Maintenance Review

Initiation

Objectives, KPIsCurrent Improvement Strategies & Plans

Prioritize workOptimized Maintenance Plan For Each Item

Plan input into MOP UPSmoothed, Efficient Work Packages Suitable For MOP UPFacilitate Roll-out And Buy-in

1 Maintenance Review2 Maintenance OptimizationContract Management System MOP UPEstablish ContractsTransition To New Model

Facilitate Roll-out And Buy-inFacilitate roll-out and buy-inFacilitate roll-out and buy-in3 Resource Management

Establish Equipment CriticalityDevelop Quaker Equipment Maintenance Best PracticesPopulate MOP UP With Maintenance PlansCreate Optimized ScheduleRoll-out To In-house & Contractor WorkforceImproved Work Planning & Scheduling ProcessesContracting StrategyEquipment Specific Strategies

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Maintenance Review

Initiation







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Maintenance Review

Initiation







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Maintenance Review

Initiation







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1 Maintenance Review

Maintenance Review

Initiation




2 Maintenance OptimizationContract Management System MOP UPEstablish ContractsTransition To New Model


Establish Equipment CriticalityDevelop Quaker Equipment Maintenance Best PracticesPopulate MOP UP With Maintenance PlansCreate Optimized ScheduleRoll-out To In-house & Contractor WorkforceImproved Work Planning & Scheduling ProcessesContracting StrategyEquipment Specific StrategiesMaintenance Review : ObjectivesThe Principal Objective Will Be To Create A Framework For Achieving Maximum Plant Performance At Minimum Maintenance Life Cycle Cost.

This Will Be Achieved Through The Following :Provide An Objective View Of The Current Practices And Performance Of The Maintenance & Engineering Departments When Compared To Industry Best PracticesIdentify A Plan For Management & Functional ImprovementCreate A Unified Set Of Objectives For The Departments That Are Fully Aligned With The Overall Business Objectives Of The CompanyProvide A Coherent Set Of KPIs That Match And Drive The Required Actions in Meeting The Site / Enterprise Objectives

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Challenges Regarding Asset Management ObjectivesExamples

Rising Costs Of Materials And LaborShortage Of Skilled LaborRestricted CAPEX BudgetAgeing AssetsPressures From Regulatory BodiesAsset ComplexityContractor MixAvailable Skill LevelsRetirementTraining

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Benefits1 Maintenance Review

Maintenance Review

Initiation




2 Maintenance OptimizationContract Management System MOP UPEstablish ContractsTransition To New Model


Establish Equipment CriticalityDevelop Quaker Equipment Maintenance Best PracticesPopulate MOP UP With Maintenance PlansCreate Optimized ScheduleRoll-out To In-house & Contractor WorkforceImproved Work Planning & Scheduling ProcessesContracting StrategyEquipment Specific StrategiesTypical Benefits Achieved By The Quaker Groups Maintenance Optimization Program In The Process Industry Sector: Increase In Maintenance Efficiency (Increase In Wrench Time)20-50% Reduction In Re-work Due To Poor Quality Maintenance20-80% Reduction In Equipment Downtime Due To Spares Stock-outs50-80% Reduction In Equipment Down-time Due To Breakdowns10-50% Overall Reduction In Maintenance Life Cycle Costs10-30% Reduction In Supply Chain Costs 10-15%

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Asset Management Case Study Typical Maintenance Mix

Illustrative

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Continuous Improvement Initiatives:Time on Tools Productivity Metric

Illustrative

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Quaker GroupSite Diagnostic & Improvement PlanApproachIllustrative Solution Elements65

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Quaker Site DiagnosticAssessActAlignPhase IMap Overall Asset Related Business Objecitves

ObjectiveAlign Asset Management Issues With Overall Business Objectives. Prioritize Asset Management Issues With The Greatest Inpact On Overall Business Objectives

AlignObjectivesPhase IISite Assessment & Review

ObjectiveReview All Areas Of The Maintenance Function With The Greatest Impact On The business. Identify Key Areas Linked With Overall Busienss Objectives. Develop A Gap Analysis Agianst Normalized Ebst Practices.

AssessSitePhase IIIImprovement Plan

ObjectiveDevelop And Deliver A Coherent Improvement Plan Identifying Opportunities For Improvement, Required Resources And Activities, And Return On Capital Employed.ActionPlan66

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Site Objectives Key WordsMOP UPMOP UPMOPUPAAAlign67

Phase I

Map The Overall Business Objectives To The Asset Management Challenges

Complete A Management Alignment Workshop With Site Management Team To Develop An Understanding Of:

Business Drivers And Objectives (Corporate Level)Asset Management And Maintenance ChallengesHow These Interact And Contribute To Each OtherQuaker Site Diagnostic Phase IAAAlign68

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OPRLabor$3bMaterialsEquipment

OPRLabor$4.5b MaterialsEquipment

$5.8 Billion$7.5 BillionTypical Areas Of Cost CreepMain Area Of Growth RiskIllustrative Site EconomicsAAAlign69

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Maintenance Strategy Current vs. Best PracticeSource : Quaker Group Analysis

Current Status

Typical Process Industry Best Practice

REM

AAAlign70

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Creating the Optimum Model

Organizational Strategic PlanPlanningThe Optimum Model For An Organization Includes:Defining The As-is PositionSubsequent Creation Of A Specific Customized Vision Of The Future Organization

Asset Management PlanAAAlign71

Asset Management Improvement BenefitsTypical accretive benefits from The Quaker Groups asset Maintenance Optimization Processes and Upgrade Program (MOP UP) include:

Increased plant reliabilityReduced risk of plant failure through the correct application of maintenance effortsImproved operational efficiency and increased tool timeReduced maintenance costs and parts inventoryReduced reactive maintenance Reduced scheduled maintenance activityTruly integrated approach to maintenance

The actual mix of benefits attained depends upon:

The requirements of the businessThe operational requirements and contextThe starting point for the operating assets

Typically organizations achieve a 5 to 10 times return on investment through delivering an integrated improvement program

AAAlign72

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Process Upgrade (UP) Asset Improvement BenefitsTypical Benefits That Accrue From Asset Management Improvement Include:Increased Plant ReliabilityReduced Risk Of Plant Failure Through The Correct Application Of Maintenance EffortsImproved Operational Efficiency And Increased Tool TimeReduced Maintenance Costs And Parts InventoryReduced Reactive Maintenance Reduced Scheduled Maintenance ActivityTruly Integrated Approach To Maintenance

The Actual Mix Of Benefits Attained Depends Upon:The Requirements Of The BusinessThe Operational Requirements And ContextThe Starting Point For The Operating Assets

. . . Organizations Achieve A 5 To 10 Times Return On Investment Through Delivering An Integrated Improvement Program

AAAlign73

73

Mapping Asset Management Challenges& Business ObjectivesMaintenance OptimizationOverall Quaker ProgramAvailability Of ResourcesMOP UP SchedulingEffective CMMSMOP UP Unit Rate ContractsIncreasing Plant AvailabilityQuaker Asset Lifecycle OptimizationQuakers Matrix Analysis Process Is Used To Determine Asset Management Challenges With The Biggest Impact On Business Objectives:

AAAlign74

Quaker Site Diagnostic Phase IReliability MetricsAAAlign

75

75

Quaker Site Diagnostic Phase ICriticality AnalysisAAAlign

Criticality AnalysisTypically Use A Criticality Algorithm E.G.: CR = Fr X CfWhere:Fr = Frequency Of Failure In Failures Per YearCf = Consequence Of Failure= Lost Prod. X Labor Cost X Spares Cost X Waste Materials X Customer Impact76

76

Quaker Site Diagnostic Phase ICost / Benefit AnalysisAAAlign

77

77

Mapping Asset Management Challenges& Business ObjectivesSafetyMeet Customer RequirementsEffective Team PerformanceMeet BudgetIncrease ProfitQuakers Matrix Analysis Process Is Used To Determine The Business Objectives That Will Be Most Impacted By Addressing The Asset Management Challenges:

AAAlign78

Maintenance Review Program ScopeActivityDuration On SiteOutputInitial WorkshopSetting Of Project ExpectationsAgreement On FO Business Objectives, Draft Maintenance & Eng ObjectivesMaintenance & Engineering ReviewInitial Findings Against Selected Functional EnablersPresentation Of Initial FindingsDraft Report & Presentation/ReviewObjectives & KPIs WorkshopsFinalization Of Objectives & KPIsMaintenance Review ReportReport Detailing Objectives, KPIs, Maintenance Review Findings And Prioritized Plan For Achievement Of Objectives

Functional EnablersMaintenance Objectives & PolicyMaintenance Strategy (Planned, Predictive, Reactive)Maintenance PlanningStores And Spares ManagementSupply Chain & Contractor Management (MOP UP)Systems And Data ManagementKey Performance IndicatorsTeam-working (MOP UP)TrainingLife Cycle CostsHealth, Safety And Environment

AAAlign79

Success FactorsScoping Study To Identify Business & Engineering Requirements System Design & Configuration To Meet RequirementsClear Focus On Ultimate Objectives And Delivery Of Real BenefitsFocus On KPIs & Return On Capital Employed / InvestedIntegration Of Maintenance Process Improvement As Part Of The ProjectWork Planning & ManagementStores OptimizationPM Frequency OptimizationProject Team Comprised Top Down & Bottom-up ApproachConfiguration Of User-friendly SystemAn Aide To Day To Day Working - Not A HindranceAAAlign80

80

Typical Work Efficiency Improvement ResultsImproved Efficiency & ProductivityApprox 20% More Planned Work Delivered With Same TeamMuch Higher Improvements In Many CasesReduced Reactive MaintenanceIncreased Routine Maintenance Completion Rate Improved ReliabilityVisibility Of Resource UtilizationSmoothed Long Term Plan (Actual Versus Plan)Increased Service Factor Lower Specific Maintenance CostAAAlign81

81

Improving Maintenance Work EfficiencyInitial Diagnostics Typically Highlight A Number Of Key Issues :Low Time On ToolsTypically 25-50%Poor PlanningOperations & MaintenanceReactive Versus Proactive ApproachPlanned Maintenance Completion Rate LowPoor Interface Between Production & MaintenanceCase Study : 6,000 Person Industrial SiteAAAlign82

82

Identifying Business Objectives & Asset Management ChallengesQuaker Planning Performance Optimization Workshops Identified The Following Business Objectives & Asset Management Challenges

Challenges XOM (Sanitized)

AAAssess83

Typical Findings / IssuesNeed To Develop Clear Maintenance Strategy & KPIsMaintenance Plan Non-existent / Out Of Date Need To Conduct Maintenance OptimizationMaintenance Not Targeted According To Plant CriticalityCMMS Not Delivering Against Maintenance Strategy / ObjectivesSeen As A Cost Not A BenefitSpares Stocking Not Matched To Requirements Isolated Examples Of Best Practice But Not DisseminatedFix-it-quick Culture Results In Rework And Repeated FailuresDifficulties In Planning Lead To Reactive Approach And Low Wrench Times AAAssess84

84

Optimize Maintenance Tasks Streamlined Reliability Centered Maintenance (RCM)FMECA at the heart of the analysis for determining the optimum maintenance tasks

Non-Zero Based as utilizes:Existing maintenance routinesExisting maintenance historyExperience of on-site operating and maintenance personnel

Completed through Quaker consultants with discussions with site personnel

Root cause orientated around operational experience

Design-out of root causes a priority as opposed to a last choice

Can use Spreadsheet driven process or supporting software MOP UPCMMS / Tiger / MOP UP

Review of Equipment Maintenance

AAAssess85

85

Compare (Where Applicable) :Existing Activities Benefits Optimum PlanGapsExisting Maintenance Schedule

Traditional Maintenance

Labor costs per year:

$6600 K / yrStreamlined RCM - Outputs

AAAssess86

86Check figures as presented in - did I do a spread sheet?

Compare Existing Activities (Where Applicable) And Benefits From Optimum Maintenance PlanExisting Maintenance ScheduleStreamlined RCM - Outputs

Building ServicesService ScheduleAir Handling UnitSite:___________________Contract No:_______Equipment: ________Location: _______________Page:1 of 1Manufacturer's Name: Luke AC PtyModel No:80-200Serial No:N/aImpellor size:VariousKW22,15,12.75PumpServiceJanFebMarAprMayJunJulAugSepOctNovDecM/HrsCheck Motor BearingM0.050.050.080.050.050.080.050.050.080.050.050.080.72Check Fan Bearing + A37M0.050.050.080.050.050.080.050.050.080.050.050.080.72Check Vee Belts and tension as req'dM0.050.050.050.050.050.050.050.050.050.050.050.050.6Ensure Belt Guard fitted and securedM0.050.050.050.050.050.050.050.050.050.050.050.050.6Check filters cleanedM0.050.050.050.050.050.050.050.050.050.050.050.050.6Pressure drop across filtersM0.050.050.050.050.050.050.050.050.050.050.050.050.6Record space tempH0.150.150.3Check operation of condensate traysM0.080.080.080.080.080.080.080.080.080.080.080.080.96Clean heating and cooling coilsY0.50.5Clean Fan blades and cowlingY0.50.5Lube and adjust damper linkagesH0.250.250.5Check op of dampers O/A, R/A, E/AM0.250.250.250.250.250.250.250.250.250.250.250.253Check op of heating and cooling valvesM0.10.10.10.10.10.10.10.10.10.10.10.11.2Check elec connectionsY0.50.5Check calibrate and controlsH0.250.250.5Check air flow switch operationM0.10.10.10.10.10.10.10.10.10.10.10.11.2Check time clock settingM0.10.10.10.10.10.10.10.10.10.10.10.11.2Serviceman Man-hours0.930.930.990.930.931.640.930.930.990.930.933.1414.2

Traditional Maintenancelabor costs per year: $15,000,000 / yr AAAssess87


Improve Work Planning & SchedulingCreate Optimized Maintenance Plan Based On Criticality And Using Streamlined (Lite) RCMReview CMMS DataResources / Cycle Length / Hours / Necessity / Plant AreaEstablish KPIs & ReportingGroup Maintenance ActivitiesMaintainable Groups/Align DisciplinesSet Start DatesSmoothed Profile / Resource Availability / Operational ConstraintsIntroduce Weekly Maintenance ScheduleSet Work Prioritization MethodEstablish Production/Maintenance Co-ordination ProcessMeasure Performance And Initiate Continual Improvement

Improving Maintenance Work Efficiency AAAssess88

Introduce Weekly Maintenance Schedule AAAssess89

Implement Work Request & MOP UP Scheduling Optimization System Enhanced Capabilities Over Pirmavera:Ease Of UseData Interface With SAP And MOP UPPre-defined Work Group Make-upAutomatically Interfaces With SAP And Contract SWHeuristic Capabilities Allow For Evergreen ImprovementsFriendly User InterfaceNo Re-entering Of DataBetter Data IntegrityLinks With Other Planner KPI's Seamlessly

AAAssess90

Establish Coordination Meetings

Area Manu/Engmtg to co-ordinatelocal plantavailability &discuss workrequest priorities

Draft WeeklyMntce Schedule

Update WeeklyMntce Schedule

Finalize WeeklyMntce ScheduleResourcePlanning Mtg toresolve anyconflicts withresources & plant@ MER level

Shared resource availability

All AreaSchedules

Prepare MER plan& Key workforecast

Manu WeeklyPlanning Mtg todiscuss plantavailability &agree plan

Eng WeeklyPlanning Mtg toreview & agreeplan

FinalizeMER plan& Key workforecast

FridayMondayTuesday

WednesdayThursday

Deliver the Plan

Monday

Planned Week

Minus 1 week

Minus 2 weeksAdd P2 Work Requests

Wednesday

BRR IssueSchedules

BRR Issue List ofP3/P600 WorkRequests

Last weeks scheduleperformance

Last WeeksSchedulePerformance

AAAssess91

Site KPI Analysis

Weekly Schedule Compliance & Effectiveness AAAssess92

Quaker Asset Review Outputs & DeliverablesBenchmark Of Current PerformanceIdentification Of Key RisksOpportunities For ImprovementPrioritized Plan For Maintenance Management Functional Improvement,With Cost Benefit AnalysisObjectives & KPIs Aligned With Business StrategyOptimized Supply Chain Strategy

Project Economics(Illustrative)NPV (4% APR):$5.5MMIRR:340%Efficiency Ratio:8.2Breakeven Date: 2H09Payout Time:8 MonthsNet Cash Gen:$1,000MMAActA93

Optimized MaintenanceLabor Costs Per Year: $2500K / YrSavings For Failure Modes Not Detected Previously:

No Of Units In Asset Base: 25

Total Savings From Optimized Maintenance

LowHigh$13500K$164090KCompare Existing Activities (Where Applicable) And Benefits From Optimum Maintenance PlanOptimized Maintenance PlanOptimized Planning ResultsAActA94


Quaker Program Success FactorsEstablish, Document And Disseminate Structured Processes For All Work Planning, Scheduling And ExecutionEnsure That Maintenance Management Systems Are Configured To Make All Tasks As Simple As Possible (As Easy As Using Google Or Checking Emails)Ensure That The Maintenance Management System Provides A Dynamic Planning Scheduling And Work Management Tool (Note : Add-on Tools Are Available To Achieve This With SAP, Maximo Etc)Dont Under-estimate The Value Of A Hard-copy Weekly / Daily PlanCommitment To Culture Change Many Of The Barriers To Improvement ArePeople RelatedResistance To ChangeStatus Quo, i.e., Experienced And Credible Facilitators Are Needed.AActA95

Work Management Network - DeliverableBase Case - Existing Situation: High level (up to 50%) of maintenance emergency work Inconsistent work planning High level of maintenance backlogs Maintenance and Operations management frustrated with inability to control backlogs and complete maintenance work in a timely fashion Ineffective maintenance work scheduling and low schedule attainment Low morale of crafts as a result of inability to complete scheduled work Maintenance work force comprised of a mix of contractor and company personnel Craft wrench time 20% to 30% as measured by Time on Tools Specialist AActA96

Key Challenges & ObjectivesTo Improve Operating Margins Of ExxonMobil Through Improving Asset Performance And Increasing Maintenance Efficiency.Achieved Through A Maintenance Optimization Process Aligned With The Operations Integrity Management System (OIMS) Initiative:An Asset Management Strategy Which Is Aligned To The Business Needs. A Preventive Maintenance Plan That Is Targeted According To Plant Criticality And Has An Optimal Mix Of Predictive, Preventive And Reactive TasksReduction In Re-work Through Elimination Of Quick-fix CultureIncrease In Manpower Productivity Through Increased Wrench-timeIdentification And Dissemination Of Best PracticeStrategy For The Most Cost-effective Procurement Of Maintenance Resources AActA97

Typical Findings / IssuesNeed To Develop Clear Maintenance Strategy & KPIsMaintenance Plan Non-existent / Out Of DateNeed To Conduct Maintenance OptimizationDifficulties In Planning Lead To Reactive Approach And Low Wrench TimesMaintenance Not Targeted According To Plant CriticalityCMMS Not Delivering Against Maintenance Strategy / ObjectivesSeen As A Cost Not A BenefitOpportunities To Improve Cost Effectiveness Through OptimizedIn-house / Outsourced RatioImproved Procurement ModelsIsolated Examples Of Best Practice But Not InstitutionalizedFix-it-quick Culture Results In Rework And Repeated FailuresNot SustainableAActA98

Quaker Group KPIsAlign Practice with CultureNormalized For Asset configurationOrganizational structureReporting relationshipsInter and intra company stakeholdersAvailable enabling technologyContractor mixRegional skill availabilityInternal / external resources

Illustrative Asset Management Objectives Quaker DeliverablesAActA99

Quaker Group Maintenance Performance ImprovementSustainability Discussion100

100

Target Manpower Utilization

Direct65%Travel10%Idle At Job Site1%Obtain Tools / Mat5%Receiving Instructions3%Late / Early1%Personal Time2%Breaks/Relief10%Coordination Delay3%

QuakerGroup Best InClass

101

101


Policy and Strategy ConsultingBest Practice Assessment And BenchmarkingMaintenance OptimizationTechnical Services: ARM, FMECA, TPM Etc.ERP / CMMS ImplementationTraining, Support &Knowledge Transfer


Turnarounds

102

102

Quaker Group Technical ServicesThe Quaker Group Can Either Educate And Train Staff To Complete These Activities Themselves Or Provide Resources To Assist In The Following Technical Areas:

Arm Analysis Availability, Reliability, And Maintainability Analysis Completed As Part Of Front End Design Work, Or Ongoing Improvement Programs For Built Assets

FMECA And RCA Failure Mode, Effects, And Criticality Analysis, And Root Cause Analysis

TPM And OEE Total Productive Maintenance (Continuous Improvement Techniques, 8d, Autonomous Maintenance, Etc.) And The Implementation And Use Of Overall Equipment Effectiveness

Asset Verification Where A Client Has A Large And Diverse Asset Base We Assist Them With The Verification Of The Physical Assets And The Subsequent Population Of The Asset Information Within The ERP / CMMS System.

Condition Monitoring Working With Technology Partners We Are Able To Provide Fully Outsourced Condition Monitoring Services That Utilize Advance Web-delivery Systems To Ensure Up To The Minute Information Display.

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Unit Rate AdvantageOPRMATERIALCOSTLABORCOST

$ x Ft2 Work Unit Rate / ActivitySchedule Of RatesLabor Cost Per Ft2

Material Cost Per Ft2

Overheads / Profit / Risk104

104

Unit Rate Benefits

Unit Rate 2 CS Sch 40 Butt Weld ~1.5 Hrs

Site ASite BSite CContract Factor x 1.5Contract Factor x 1.7Contract Factor x 1.2Best In Class *

*Identify What Makes Best In Class And Apply Learning To Other Sites Using MOU To Assist Continual Improvement At All Sites

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105

Unit Rate Benefits

MOP UPMOP UP Enables Normalized KPIs:

Which Is Productivity DrivenWhich Can Be At Activity Level Right Through To Site / Contractor LevelUses Standard Base Data For Accurate And Cost Independent AssessmentAligned Objectives For All StakeholdersContract TransparencyReduced Transaction CostsCredible Cross Fertilization Of Best0in-class ProcessesMOU Continuous Improvement

106

106

Unit Rate Characteristics107

MOP UP DescriptionIs A Web Based Transactional Tool That Supports PlanningSchedulingEstimatingProcurementTransactionsCan Be Used To Estimate And Manage CAPEX And OPEXIs A Support Platform That Is Able To Manage 3rd Party Contracts, e.g. Unit Rate, Lump-sum, Turnkey, Etc.Enhances Visibility And Transparency Of Cost Across Maintenance Activities And ProjectsProvides An Objective Basis For Aligned Internal And External Stakeholder Objectives And MotivationsTransparentlyNormalizedAcross Business Units & Regions

108

PMMOP UP And The Asset LifecyclePLANCREATEOPERATE

OriginateConceptOptionsDevelopmentApprove

Handover

What to OperateHow to Operate

MOP UP supports the best-in-class maintenance planning, estimating, construction and procurement, and contract management associated with all aspects of the asset lifecycleWBSEquipmentDesignMaterialsLaborConstructionHSEOHP

Aspen IcarusQuaker Group MOP UPROCE

109

109

MOP UP and the Asset Lifecycle

PLANCREATEOPERATE

Equipment Estimating SystemsPlanning SystemsERP SystemsOPEX Systems

Super-composites and Experience Can Be Fed-back Into Optimized Work SystemsMOP UP:Can Be Used At All Stages Of The Asset LifecycleInterfaces With Relevant Systems At All Stages Of The Asset Life-cycle And Is Able To Import / Export Required InformationEnables Efficiency Gains Through The Creation, Use, And Re-use Of Super-composites (Templates) For Programs Of WorkIs A Live System That Uses Heuristics To Update SAP Data To Continuously Improve And Validate Planning EstimatesMOP UPMOP UP

MOP UP110

110

Legacy Approach Plan Phase

Contractor AProject 1

Uit Rates&EstimatesEstimating Process BProject 1PlanningEstimateInitial Estimate 1

Project EstimatingSystemConceptualDesignPackage

Contractor BProject 2Estimating Process TProject 2PlanningEstimateInitial Estimate 2

Project EstimatingSystemConceptualDesignPackage

Historical Process:

Three Data Transfer StagesInital Design Egineering And PlanningProcess Unit Estimating SystemEquipment Based Estimating System To The Project Contractors Estimating SystemThis Introduces Inefficiency And Lack Of Consistency Of ProcessDiffering Engineering Contractors Will Use Thier Own Data Sets And Differing Estimating Processes Leading To Inconsistency And Increased RiskAll Knowledge And Data, e.g., Unit Rates Are Developed And Retained By Engineering Contractors Within Their Own Systems Client Project Engineering & Routine MaintenanceProject & Maintenance Planning / EstimatingTurnerBrand

Unit Rates&Estimates

111

111

Quaker MOP UP Approach Plan Phase

Craft Estimating System

Project 1Initial Estimate 1ConceptualDesignPackage

Project 2Initial Estimate 2ConceptualDesignPackageWork / Project PlanningEquipment EstimatingSystem+/- 40%+/- 10%

MOP UPStandard EstimatingProcess

Contractor A

Unit Rates&EstimatesEstimating Process BProject 1JobEstimateContractor BEstimating Process TProject 2JobEstimateRoutine Maintenance / T/As / Small ProjectsTurnerBrand

Unit Rates&Estimates

MOP UPUnit RateJob Estimates112

112

MOP UP Approach Plan Phase

MOP UP Approach:

MOP UP Is Used Both For The Creation Of The Initial Estimate And By The Field Contractor For The Detailed Estimate.Reduced The Number Of Data Transfer Stages From 3 To 2 Improving Efficiency.Both Client And The All Contractors Are Using The Same Base Data Sets Ensuring Consistency, Accuracy, And Standardization Of Output.The Knowledge Is Grown (Heuristically) And Retained Within The Clients Mop Up System Delivering Internal Knowledge Growth And Improved Efficiency Of Operation As Well The Ability To Normalize & BenchmarkMOP UP Is Unique In That It Includes A Seamless Scheduling Optimization Function And Interface

113

113

MOP UP Methodology Create Phase

Planning SystemsERP SystemsMOP UPMOP UP

Drawings and Specifications

Contractor

EstimatesWork InstructionsLocal ContractsKey Performance IndicatorsEstimatesWork InstructionsLocal ContractsKey Performance IndicatorsPlanCreate

PaperE-Mail

Work Package114

114

Legacy Contract Management Methodology Create Phase

ContractorClientWork PackageContractCorporateRegionalSiteUitDrawingsIso / P&ID / Etc.KPIsInternal / ExternalInter / IntraWork OrderLegacy Contract Create Process

Following The Design Work The Client Work Pack Will Be Issued To The Contractor In A Variety Of Forms:Via E-mailVia Hard CopyVia Verbal CommunicationsThis Introduces In-efficiencies And Potential For Error And Unnecessary Non-value Add Activities

SpreasheetBasedToolsThird Party Scheduling ToolERP / CMMSSystemClientSystemsInterfaceOtherMisc.Public LiteratureNormsPaperPlanCreate

E-MailVerbal115

115

Quaker MOP UP Creation of an Estimate

Unit Rate / Crew Make-Up Basis Estimate DetailMOP UP:

Estimates Are Created From The MOP Up Unit Rate Proprietary Data Base To Provide The Basis For The Planning & Scheduling Estimates As Well As The Contract Form.Each Estimate Can Be Saved As A Template And Be Used To Create Composite Estimates Shared Globally (See Slide).Estimates Can Be Single Or Multi-discipline And Be Of Any Size Or Complexity And Can Be Re-used Any Number Of Times For Different Projects / Activities At Other SitesMOP UP Has Unique Capabilities To Perform The Scheduling Function Once The Detailed Estimate Is Complete And Interfaces Seamlessly With The Detailed Plan.Crew Make-up, Crew Size And Time And Material Estimates Provided By Mop Up Provide A Benchmark For Identical Or Similar Activates Globally.

116

116

Quaker MOP UP Job Estimate Benefits

Unit Rate / Crew Make-Up Basis Estimate Detail

MOP UP Methodology:

Provides A Transparent Data Set Accessible As Defined For All Project And Job Data:EstimatesCrew Make-up / Crew SizeWork Packages (WBS)Local / Regional ContractsSelling RatesAbsolute BenchmarksKey Performance Indicators

Incentives Include:Improved CommunicationStandardizationReduced Duplication Of EffortImproved Transparency And AccuracyCost Clarity By Exception

Can Be Used For All Types Of Routine And CAPEX Work From Major Projects To Minor Maintenance Using A Pre-agreed Activity Based Contracts And KPI's

117

117

MOP UP Methodology Operate Phase

Planning SystemsERP SystemsMOP UPMOP UP

Drawings and Specifications

Contractor

EstimatesWork InstructionsLocal ContractsKey Performance IndicatorsEstimatesWork InstructionsLocal ContractsKey Performance IndicatorsPaperE-Mail

Work PackageOPEX Systems

118

118

Legacy Contract Management Methodology Operate Phase

ContractorClientWork PackageContractCorporateRegionalSiteUitDrawingsIso / P&ID / Etc.KPIsInternal / ExternalInter / IntraWork OrderLegacy Contract Operate Process

Same Issues As For The Legacy Approach To The Create PhaseThe Work Packages And Instructions Are Smaller And More Numerous ProvidingMore Opportunity For Gains In Efficiency Of ProcessStandardized Work Crew Size / Make-upStandradized Sheduling And ExecutionHeurisitc Capabiity To Futher Develop Site-specific KPIs For Routine And Project ActivitiesSpreasheetBasedToolsThird Party Scheduling ToolClientSystemsInterfaceOtherMisc.Public LiteratureNormsPaperPlanCreate

E-MailVerbalERP / CMMSSystemsRoutine Maintenance & Inspection Systems, e.g., Tiger, Etc.OPEX SystemsTransaction Systems119

119

MOP UP Approach Operate PhaseMOP UP Approach:

Provides The Same Benefits As The Create PhaseOther Benefits Include:MOP UP Contract KPIs Incent Improved Contractor PerformanceImprovements in standardizing Work Packages 9Crew Size, Etc.) And The Monitoring And Payment For Work Completed.Client / Systems Interfaces Enable Improved Transparency And Efficiency, e.g., Authorization And Payment For Work Completed Per Contract Terms.

Unit Rate / Crew Make-Up Basis Estimate Detail

120

120

Work Estimate Breakdown Legacy Compared to MOP UP

MOP UP Approach:

Equipment Cost Estimate Still Based Upon The Knowledge Of The Equipment Packages, But The True Composite Materials Costs And Labor (Including OHP) More Accurately Estimated Through MOP UPEstimates For Non-equipment Costs Not Based On A Fudge Factor Ensuring Improved Accuracy Of EstimateMOP UP Separates Composite Materials Costs, Labor Costs, And OH&P, Ensuring Increased Transparency And Improved Accuracy Of EstimateProvides A Common Approach For All Parties Reducing Surprises And Reducing Client Risks Associated With The Final Estimates

EquipmentCostsCompositeCostsLabor & OH&PCosts

Equipment EstimatingSystem

EquipmentCostsLabor & CompositeCostsFactor

LegacyMOP UPLegacy Approach:

Estimate Built Upon Knowledge Of Equipment Packages And Using A Factor To Estimate The Composite Materials And Labor CostsReduced Accuracy And Certainty Due To Limited Knowledge Of True Composite Costs And Labor CostsOverhead And Profit (OH&P) Hidden And Not Recognized Within The EstimateNo Consistency of Allocated OH&P between or among sites or regions or contractors

MOP UP

Equipment EstimatingSystem

121

121

MOP UP Local Site Implementation

ReadinessReviewSystemsProcessesCompetencyGap analysis &Implementation. PlanSystemConfigurationUserConfigurationSystem InterfaceConfigurationUser Training& SupportPreparationImplementationSupport

Readiness AssessmentFull Implementation PlanFully Customized &Configured SystemOngoingSupportUser Manuals,Training Materials,Level 1,2,3 SupportMOP UP

122

122

MOP UP Interfaces

Maintenance PlannersMaintenanceContractorsIn-House Project & EngineeringStaffIn-House MaintenanceStaff

PlanCreateOperateERP SystemsPlanningSystems

EquipmentEstimatingSystemsOPEXSystems

MOP UP

123

123

Quaker Group Maintenance Performance ImprovementProductivity DiscussionClose Gaps Found in Diagnostic124

124

Solution Unit Rate Productivity:Craft Management125

Solution Unit Rate Productivity:Craft Management

Quaker Group Spend MapAs Is To Be Gap AnalysisTransparent Corporate ContractMOP UP Transactional Web -Based Platform SolutionContinuous ImprovementProcessIndustry Specific Unit Rates For All DisciplinesClient Benefits

InstitutionalKnowledge

126

Unit Rate Planning, Scheduling And Contracting127

Asset Optimization Best Practice AssessmentOverall Objectives

To Align Asset Management Improvement With Business ObjectivesTo Identify Areas Of Best Practice And Opportunities For ImprovementTo Provide A Detailed Plan With Projected ROI For Improving Maintenance Productivity And Operational Efficiency


Action PlanResults RadarBest Practice AuditPlanning Best Practices128

128

Target Manpower Utilization

Direct65%Travel10%Idle At Job Site1%Obtain Tools / Mat5%Receiving Instructions3%Late / Early1%Personal Time2%Breaks/Relief10%Coordination Delay3%

QuakerGroup Best InClassActivity Metrics & Crew Size Standards129

129

Compare Existing Activities (Where Applicable) And Benefits From Optimum Maintenance PlanExisting Maintenance ScheduleStreamlined RCM - Outputs

Building ServicesService ScheduleAir Handling UnitSite:___________________Contract No:_______Equipment: ________Location: _______________Page:1 of 1Manufacturer's Name: Luke AC PtyModel No:80-200Serial No:N/aImpellor size:VariousKW22,15,12.75PumpServiceJanFebMarAprMayJunJulAugSepOctNovDecM/HrsCheck Motor BearingM0.050.050.080.050.050.080.050.050.080.050.050.080.72Check Fan Bearing + A37M0.050.050.080.050.050.080.050.050.080.050.050.080.72Check Vee Belts and tension as req'dM0.050.050.050.050.050.050.050.050.050.050.050.050.6Ensure Belt Guard fitted and securedM0.050.050.050.050.050.050.050.050.050.050.050.050.6Check filters cleanedM0.050.050.050.050.050.050.050.050.050.050.050.050.6Pressure drop across filtersM0.050.050.050.050.050.050.050.050.050.050.050.050.6Record space tempH0.150.150.3Check operation of condensate traysM0.080.080.080.080.080.080.080.080.080.080.080.080.96Clean heating and cooling coilsY0.50.5Clean Fan blades and cowlingY0.50.5Lube and adjust damper linkagesH0.250.250.5Check op of dampers O/A, R/A, E/AM0.250.250.250.250.250.250.250.250.250.250.250.253Check op of heating and cooling valvesM0.10.10.10.10.10.10.10.10.10.10.10.11.2Check elec connectionsY0.50.5Check calibrate and controlsH0.250.250.5Check air flow switch operationM0.10.10.10.10.10.10.10.10.10.10.10.11.2Check time clock settingM0.10.10.10.10.10.10.10.10.10.10.10.11.2Serviceman Man-hours0.930.930.990.930.931.640.930.930.990.930.933.1414.2

Traditional Maintenancelabor costs per year: $15,000,000 / yr130


Site KPI Analysis

Weekly Schedule Compliance & EffectivenessEnables Site KPI ComparisonsCompare RegionsCompare Global PerformanceCompany & Contractor PerformanceNormalize Planning Performance For Site / RegionFacilitates Rational Contract Performance Management131

MOP UPMOP UPMOP UPMaintenance Performance ProcessesWhat is planning? PMHow do we plan? PMHow do we estimate? PMHow do we assess? LL Rework!Planning1Scheduling2Execution3What is worked?Resource loaded schedule?Optimized resources? Rework!What is Supervising?How is work assigned?How do we complete jobs?How to assess?Minimum Break-in Work? Rework!

Process

HR Function KPIs / Performance Stewardship / Craft AvailsIT Function MOP UP SAP / Tiger / CCES / PrimervaBusiness Support Controllers / Purchasing / Contracts / LegalCultureProcessPeopleKPIsPeopleKPIsWork Selection; What work to release from Operations?Culture132

132

Improving Maintenance Work EfficiencyInitial Audit Highlighted A Number Of Key Issues :

Low Wrench Time : Typically 25-50%Poor Planning And Reactive Approach Results In Inefficient WorkPlanned Maintenance Completion Rate LowPoor Interface Between Operations & MaintenanceCase Study : 6,000 person industrial site133

133

Typical Work Efficiency Improvement ResultsImproved Efficiency & ProductivityApprox 20% More Planned Work Delivered With Same TeamMuch Higher Improvements In Many CasesReduced Reactive MaintenanceIncreased Routine Maintenance Completion Rate Improved ReliabilityVisibility Of Resource UtilizationSmoothed Long Term Plan (Actual Versus Plan)Increased Service Factor 134

134

The Benefits Of MOP UPMOP UP:Supports Knowledge Growth And Bench-marking Of Project And Contractor PerformanceProvides A Uniform Platform For All Stakeholders, Ensuring Improved Accuracy For Capex & OpexImproves The Efficiency Of The Estimating And Procurement Process Through The Provision Of A Unified PlatformEnables Evergreen Improvements Via Heuristic FunctionalityEnables Clients To Review Their Contractor Relationships Based Upon Improved Transparency Regarding Of Cost And RiskSupports Accurate Benchmarking And Validation Of EstimatesProvides a Scheduling Optimization Functionality with Full Integration

135

135

MOP UP Contract OptimizationTechnologyMOP UP Has Been Designed On The Latest Microsoft ASP.NET Technology, Using C+++ Language And Sequel Server 2010 Databases.

MOP UP Is Fully Secure And Is Only Available From Specific Computers Or Fixed IP Addresses.

SSI Certificates Have Been Applied As Extra Security.

All System Data Is Fully Encrypted.

Log On To MOP UP Is Controlled By A Username & Password.

MOP UP Has Multi-Language Capability, With The Language Settings Being Automatically Picked From The Computer And The User Profile.

MOP UP Can Be Hosted And Accessed From Anywhere In The World With Internet Access. 136

Success FactorsScoping Study To Identify Business & Engineering Requirements System Design & Configuration To Meet RequirementsClear Focus On Ultimate Objectives And Delivery Of Real BenefitsFocus On KPIs & Return On InvestmentIntegration Of Maintenance Process Improvement As Part Of The Project. E.g. Work Planning & Management, Stores Optimization, PM Frequency OptimizationProject Team Comprised Top Down & Bottom-up ApproachConfiguration Of User-Friendly SystemAn Aide To Day To Day Working, Not A HindranceEvergreen processHeuristic Capability137

137

Practical Issues Associated With Maintenance Management SystemsCMMS Not Delivering Against Maintenance Strategy / ObjectivesSeen As A Cost Not A BenefitLack Of Clear Measures Of Maintenance And Of CMMS Performance CMMS Acting As A Record Of What Has Been Done But Not As A Live And Dynamic Tool To Manage Plant And WorkforceKPIsBenchmarksScheduling (Heuristics) Crew Make-Up / SizeSystem Not User-friendlyAsset / Inspection Records Incomplete Or InaccurateLack Of Ownership Of Maintenance IT Integration of Planning, e.g., CMMS, and Scheduling, e.g., Primavera, Systems138

138

Overview: Upgraded Performance Solution (UP)

139

139

Quaker Group Technical ServicesThe Quaker Group Can Either Educate And Train Staff To Complete These Activities Themselves Or Provide Resources To Assist In The Following Technical Areas:

Arm Analysis Availability, Reliability, And Maintainability Analysis Completed As Part Of Improvement Programs For Employed Capital

FMECA And RCA Failure Mode, Effects, And Criticality Analysis, And Root Cause Analysis

TPM And OEE Total Productive Maintenance (Continuous Improvement Techniques, Autonomous Maintenance, Etc.) And The Implementation And Use Of Overall Equipment Effectiveness

Asset Verification Where A Client Has A Large And Diverse Asset Base We Assist Them With The Verification Of The Physical Assets And The Subsequent Population Of The Asset Information Within The ERP / CMMS System.

Condition Monitoring Working With Technology Partners We Are Able To Provide Fully Outsourced Condition Monitoring Services That Utilize Advance Web-delivery Systems To Ensure Up To The Minute Information Display.

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Issues Associated With Maintenance Management SystemsCMMS Not Delivering Against Maintenance Strategy / ObjectivesSeen As A Cost Not A BenefitLack Of Clear Measures Of Maintenance And Of CMMS Performance CMMS Acting As A Record Of What Has Been DoneNot As A Live And Dynamic Tool To Manage Plant And Workforce And Improve Performance System Not User-friendlyAsset Register Incomplete Or InaccurateEngineering Analyses Dont End Up In CMMS E.g. RCM, RBI EtcLack Of Ownership Of Maintenance IT

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Quaker Group Maintenenace Improvement:Project Approach Discussion

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Enhances and supports local site practices; example GAME ME principlesSolutions designed, implemented and delivered by experienced resourcesFull program redesign or Project Specific Options to augment Client resources Solutions focused on Client needs and can be delivered without a large formal programExxon Pilot Plant Time on Tools with daily/weekly gap closure recommendationsGulf Coast Planner Training designed with short and long term deliverablesShell Deer Park T/A Time on Tools

Maintenance Improvement Philosophy

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ExxonMobil Baton Rouge Planning Improvements

Evaluated maintenance planning practices and designed site specific solutionsConducted on site training for approximately 30 planners using estimating standardsImplemented Planner assessments and grading processDeveloped end of job sustainability model for siteConducted 3 day onsite Planner Training

Gulf Coast Planner Training Conference

Conducted offsite planner training for several refineries and chemical plantsTrainining included real world assignments with industrial pictorialsReceived very high course ratingsSeveral sites have requested additional on site support

Recent Projects144

Overview of Suggested Project ApproachLong Term Improvements and EfficienciesImprove Reliability and Reduce Non-productive TimeExisting Maintenance System Analysis and DiagnosticsComprehensively analyze existing maintenance systemsEvaluate Maintenance HSE (Health , Safety and Environmental) focus Suggest Best Practices as appropriate Immediately apply Best Practices to realize incremental improvements and increased reliabilityIdentify gaps in existing repair systems and apply Best Practices to gain long term savings and efficienciesUtilize Pilot program to confirm success of long term improvement strategiesStep 1Step 2Step 3The Quaker Group suggests a 3 step approach . . . . . . based on an early focus on analysis and change efforts145

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Detailed Project Approach: Step 1Review methods being utilized to execute daily maintenanceCommunications between Operations and Maintenance PersonnelPlanning SystemsScheduling Methods and ToolsExecution PracticesRecommendations to incrementally improve existing maintenanceUtilize existing computer systemsEarly failure detection allow for planning and timely material deliveryJob Plans based on work complexity Personnel/Resource utilization via SchedulingFix It Right execution repair practices to reduce non productive timeImmediate application of Best Practices to realize incremental improvements and increased reliabilityNon-productive time saves via PM oil analysis programs Spare parts program to reduce wait timeRecommendations and training for long termLong Term Improvements and EfficienciesImprove Reliability and Reduce Non-productive TimeExisting Maintenance System Analysis and Diagnostics146

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Detailed Project Approach: Step 2Long Term Improvements and EfficienciesImprove Reliability and Reduce Non-productive TimeExisting Maintenance System Analysis and DiagnosticsInstitute pump/rotating equipment reliability programEquipment Operator rounds to ensure oil levels within specificationsOil Sampling and Analysis process for early failure warningsEarly remedial repairs to prevent catastrophic failuresFailure analysis and learnings on key impacts to run timeTransition to Run-Time performance monitoring metricsReduce rig equipment failuresImplement operating envelopes on key equipment and stay within their limits to realize maximum reliabilityAnalyze failures associated with vibrations, shock, surges and apply long term engineered solutions to prevent repeat failuresEarly failure detection allow for planning and timely material deliveryJob Plans based on work complexity; do not over planPersonnel/Resources utilization via SchedulingFix It Right execution repair practices to reduce non productive time147

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Detailed Project Approach: Step 2 (continued)Long Term Improvements and EfficienciesImprove Reliability and Reduce Non-productive TimeExisting Maintenance System Analysis and DiagnosticsImmediate application of Best Practices to realize incremental improvements and increased reliabilityNon-productive time saves via PM oil analysis programs Spare parts inventory management to reduce wait timeImplement Rework Tracking program to identify and eliminate repeat failuresImplement prioritized equipment bad actor program to focus technical resources on high margin repairs 148

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Detailed Project Approach: Step 3Long Term Improvements and EfficienciesImprove Reliability and Reduce Non-productive TimeExisting Maintenance System Analysis and DiagnosticsManagement leadership Decide which work management process to implementTransition improvement process to all levels and train everyone on work processHold workers accountable for results and celebrate successesPlanning, Scheduling and ExecutionEnsure Operations and Maintenance utilize a common repair priority systemIdentify failures early and release to PlanningPlan work based on job complexitySchedule resources to drive efficiencies and lower cost repairsTrain First Level supervisors on how to set expectations and not overstaff jobsTrain crews to work safe and utilize work crew assignment sheetsImplement Long Term ImprovementsConduct Job plan assessments and grade plannersEvaluate and grade field execution supervisorsConduct Time on Tool StudiesFinalize inventory management systemImplement a few key performance metrics (Safety, Cost, Efficiencies,etc)149

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Work Selection Common work order & priority system between Operations Maintenance Agreed upon return to service dates that allows repairs to be completed when needed and time for Planning, Scheduling and ExecutionPlanning Formal Planner Training using Equipment planning Standards Assess job plans and grade Planners (Excellent, Good, Fair , Poor) Measure effectiveness versus final field costsScheduling Optimized resource and mechanical equipment schedule Multi-craft Teams work directed by schedulesExecution Formal training and job assessments with individual grades (Excellent, Good, Fair, Poor) Technician work crew assignment sheets Daily schedule attainment metrics Technician self reporting end of day work performed and job delays encountered Rework SystemTime on Tools data analysis and gap closure recommendations

Maintenance Improvement Strategies (Examples)

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Performance Improvement Hypotheses Preliminary and illustrative

What work practices and activities, if improved, would bring the biggest benefit? Hypotheses:Having a clear work scope from Operations. All parts on hand before work starts. Right sizing the crews. Do not overstaff jobs.Work practice to tell Operations what next day equipment to prepare for MaintenanceExecution FLS leadership training on setting expectations and using work crew assignment sheetsOptimized scheduling pra