sto 3 day course presentation

1STO Navigator™ - 3 Day Best-Practices SeminarCopyright© 2011 www.stonavigator.com

Shutdowns, Turnarounds and Outages

Presentation Agenda• Day One

• Introduction and Course Objectives• The Turnaround Management

Process and KPI’s• Workscope Optimization and

Risk/Cost Benefit Analysis• Planning / Scheduling• Presentation - Planning / Scheduling

Pitfalls• Establishing the Turnaround Team• Creating a Budget



STO Navigator™• Vision

• Our vision is to be the paramount source of world-class project management tools and services for Shutdowns, Turnarounds and Outages…

• Mission• Our mission is to enjoy a mutually supportive and profitable

relationship with our clients…

Implementation

Training

CoachingProject Excellence



Workshop-Seminar Course Objectives• Objective

• The objective of this workshop-seminar is to transfer our expert level knowledge of turnaround management best-practices to you to significantly reduce the risk of executing complex projects

• Vision• Safely and reliably operate a production or manufacturing facility

for [a pre-determined] run duration• Mission

• Plan, Manage and Control all aspects of the Turnaround Project following a defined Turnaround Management Process to meet or exceed the established Key Performance Targets

Resource Management

Cost Management

Schedule Management

ProjectControls



The Asset Management Model

WORK MANAGEMENT

EPC – ENGINEERING, PROCUREMENT AND CONSTRUCTION PHASE

OPERATING AND MAINTAINING PHASE

Work Request Validation / Work Order Creation

ASSET MANAGEMENT STRATEGIES

Commissioning

Design Engineering

Construction

Procurement

OperatePROJECT MANAGEMENT

PERFORMANCE MANAGEMENT

PERFORMANCE MANAGEMENT PHASE(Defect Elimination)

Planned Maintenance

ProgramStandard Job Plans (SJP’s)

Work RequestCreation

Work Order Type and Prioritization

Work OrderPlanning

Work OrderScheduling

Work OrderExecution

Work OrderDocumentation

RESOURCE MANAGEMENT

‘Functional / Criticality Analysis’

and / or ‘Risk Based Inspection Plan’

• Operating Strategy

• Maintenance Strategy

• Turnaround Strategy

• Inspection Strategy

• Critical Spares Strategy

• Training Strategy

• Replacement Strategy

Data Analysis

OPERATIONS

TECHNICAL

MAINTENANCE

PLANNING

Business Impact Priority

Asset Data Repository

(CMMS)

Select ‘What to Work on’

Perform Root Cause Failure

Analysis

Learned Opportunities

Eliminate Defect

ROUTINE

TURNAROUND

PROJECTS

Share Experiences

WORK MANAGEMENT

EPC – ENGINEERING, PROCUREMENT AND CONSTRUCTION PHASE

OPERATING AND MAINTAINING PHASE

Work Request Validation / Work Order Creation


Commissioning

Design Engineering

Construction

Procurement

OperatePROJECT MANAGEMENT

PERFORMANCE MANAGEMENT

PERFORMANCE MANAGEMENT PHASE(Defect Elimination)

Planned Maintenance

ProgramStandard Job Plans (SJP’s)

Work RequestCreation

Work Order Type and Prioritization

Work OrderPlanning

Work OrderScheduling

Work OrderExecution

Work OrderDocumentation

RESOURCE MANAGEMENT

‘Functional / Criticality Analysis’

and / or ‘Risk Based Inspection Plan’

• Operating Strategy

• Maintenance Strategy

• Turnaround Strategy

• Inspection Strategy

• Critical Spares Strategy

• Training Strategy

• Replacement Strategy

Data Analysis

OPERATIONS

TECHNICAL

MAINTENANCE

PLANNING

Business Impact Priority

Asset Data Repository

(CMMS)

Select ‘What to Work on’

Perform Root Cause Failure

Analysis

Learned Opportunities

Eliminate Defect

ROUTINE

TURNAROUND

PROJECTS

Share Experiences

• The focus of this presentation is here in the Operating and Maintaining Phase associated with facility outage turnarounds

• Facility Outage Turnarounds are one of the largest expenditures risks in the oil and gas production and manufacturing sectors

• The opportunity to improve asset and resource performance here is tremendous



DataManagement

HazardIdentification

DetermineConsequence

RiskAssessment

DocumentLearn, Plan

DetermineFailure Frequency

Risk-BasedProgram

The AMT (Asset Management) Team• A partnership between the Leaders of three, equally

important, Stakeholder Departments with Risk Management at the root

•Technical (Inspection/Engineering)•Operations,•and, Maintenance•The AMT will form the

Turnaround Management Team

•The AMT will approve and prioritize all work orders and work list items

•The AMT will be responsible for establishing the budgets required for OPEX and TAEX



The Turnaround Management Process



Work Management• Work Management Process

• Work = execution of defined activities to accomplish something• Grown-ups invented work so they could keep playing together

• Resource = source of energy or commodity required to execute defined activities

• Finances• People• Equipment• Spare parts• Tools• Materials• Procedures

Business Management

Work Management

Resource Management

Performance Excellence



Work Management• Work Management Process

• Work = Effectiveness• Determine ‘what to work on’

• Resource = Efficiency• Determine ‘how’, ‘when’, and ‘who’ to execute the work

• Don’t manage people – manage work• Use a defined work order management system to

manage work activities based on priority and resource capacity planning

• Control• Processes, procedures, policies, guidelines, tools

input outputCustomer-Satisfaction-Timing-Quality

you – or – supplier- Information quality- Information timing- Data management

activity

activity result

? task



TURNAROUND PROJECT DURATION

FINISHLOW

PERFORMANCE INFLUENCE FACTOR

HIGH

START


21%

WORK IDENTIFICATION

14%

WORK PLANNING

10%

SCHEDULING PROCESS

20%

EXECUTION PROCESS

6%

UPDATE AND CONTROL PROCESS

12%

CLOSURE PROCESS

8%

LEARNED OPORTUNITIES

9%

100%

100%

25%

50%

75%

Ability to Influence Performance



ContractingPlanningExecutionSafetyMaterials

Technical Engineering Logistics Project Cost Controls Scheduling

• Effective Turnaround Management is dependent on performance from all Functional Areas and Stakeholder Departments

• Your collective-knowledge, materials and management tools need a home

• Accurate project status in real-time - good, bad, under or over, you need to know where you are, where you should be, and where you are going!

Administration / Resources Process Operations Workscope Optimization Capital Work Routine Maintenance




The Turnaround Management Plan• Overview

• A Turnaround Management Plan is a high-level process that leads the management of all turnaround activities

• The Turnaround Management Plan spans the three stages of the turnaround project• Planning• Execution• Closure

• Each stage of the Turnaround Management Plan is supported by eight modules• Risk Cost Benefit Analysis• Turnaround Strategy Plan• Worklist Management• Materials Management• Work Package Planning• Scheduling• Contracting• Resource Management



Planning Stage ClosureExecution Stage

18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 3 6 9 12 15 18 1 2 3 4

Turnaround Management PlanPlanning

Execution

Closure

Planning Schedule – Months / Weeks Execution Schedule – Days / Shifts

Turnaround Strategy Plan (Safety, Operations, Execution, Inspection, Logistics, Cost)

Scheduling

Worklist Management

Materials Management

Resource ManagementContracting

Work Package Planning

Risk Cost Benefit Analysis Worklist Cut-off Date ____________ Feed-out Date ____________

• 3 Stages• 8 Modules



Measurable – therefore, improvable

Consistency – in an ever-changing human resource and software environment

Corporate Owned –

policies and procedures

Implementing a Turnaround Management Process



DesignDesignIdentifyIdentify

PLANNING PHASEPLANNING PHASE

EstablishmentEstablishment MethodologyMethodology

Roll-outRoll-out Orientation and Training

Orientation and Training

Continuous Improvement

Continuous Improvement

Control and Coaching

Control and Coaching

DEVELOPMENT PHASEDEVELOPMENT PHASE

IMPLEMENATION PHASEIMPLEMENATION PHASEMANAGEMENT PHASEMANAGEMENT PHASE

CHANGE MANAGEMENT PROCESS MODEL™CHANGE MANAGEMENT PROCESS MODEL™

Successful Change Management Model™



Successful Change Management Requirements



Key Performance Indicators


Key Performance Targets

Safety / Environment Zero (nothing hits the ground)

Budget Based on direct planned wrench-hours and indirect cost estimates)

Schedule Duration Based on the longest job or series of jobs with zero float

Quality Zero rework, zero leaks

Worker Performance 5.5 hours of direct wrench-time in a 10 hour shift



• The success of any project is based on the ability to measure performance in real-time What to measure is determined by the project team The key indicators for facility and unit outages are generally identified as:

• Establish a Vision for each project (purpose, reason, benefit and risk of executing the project)

• Establish a Mission for each project (the outcome of the project itself)• Establish Key Performance Indicators for every project

• Safety / Environment (responsible care)• Cost• Outage Duration• Quality• Worker Performance

• Establish Goals, Objectives and Strategies for each Key Performance Indicator (it does no good to say you’re going to do something and not have goals, objectives or strategies in place to indicate how you intend to meet or exceed them)




• Key Performance Indicators must be established by the Project Leaders Team and agreed to by the Project Core Team or Steering Committee

• Key Performance Indicators must have realistic targets (don’t pretend you’re going to get 5.5 hours of direct wrench-time when the entire industry is measuring 3.5)

• Communicate all project performance statements, indicators and targets to everyone involved in the project (this includes contractors)

• During project execution update each Key Performance Indicator daily with current data to measure performance, trend and forecast outcomes, take corrective action and offer recognition




• Questions•Why are projects coming in over budget?•Why are project commissioning dates being delays?•What priority would you put on the Key Performance Indicators?•What is the average direct wrench-time in Alberta on Turnaround Projects?

•What are the best direct wrench-time you can achieve in a 10 hour shift?

•Why is wrench-time so low?•What can be done about it?




• Priorities

1 – Safety / Environment

2 – Quality

2 – Worker Performance

3 – Schedule

3 – Cost

If you focus on Safety, Quality and Worker Performance – Schedule and Cost will take care of themselves




• Wrench-time availability on a 10 hour shift

7:00 – 7:15 – Safety Meeting7:17 – 7:30 – Travel to work location, sign-on to permit9:30 – 9:45 – Coffee Break12:00 – 1:00 – Lunch3:00 – 3;15 – Coffee Break5:00 – 5:30 – Clean up, travel to transportation location

Total time not directly working on the wrenches = 2 hours

Is this realistic?




• Only work that requires a loss of production, or may create an unstable, high risk condition should be considered as outage worklist items

• Only work that supports the vision of a safe and reliable plant for a pre-determined run length should be considered as outage worklist items (it would be nice to install all new valves, however, if they don’t pose a threat to the vision, they can wait

• Inspection must determine the regulator worklist items with probability of Found Work

• A formalized risk matrix must be used by the Asset Management Team to review all worklist items to determine in/out of turnaround

• Maintenance work orders that need to be executed during an outage are still maintenance items… they should be planned and included as OPEX

• The Worklist Cut-off Date should coincide with the Initial Budget… following the Worklist Cut-off Date all worklist items need to be risk assessed and cost estimated for approval

Workscope Optimization



• Risk Matrix

Risk/Cost Benefit Analysis



CONSEQUENCE

PROBABILITY LOW MEDIUM HIGH VERY HIGH

VERY HIGH 3 2 1 1

HIGH 3 2 2 1

MEDIUM 3 3 2 2

LOW 3 3 3 3

WO Priority Code 3: Normal Priority - Weekly PlanningWO Priority Code 2: Urgent Priority - Next DayWO Priority Code 1: Critical Priority - Today

Work Order Priority: Probability and Consequence Matrix



LOSS

CATEGORY FREQUENCY (PROBABILITY) CONSEQUENCE(Consider MTBF & MTTR for the Asset)

LOWSignificant probability that it will not occur within 1 month

Safety – Minor InjuryProduction Loss < 05 Hrs/Yr

MEDIUMSignificant probability that it will occur in less than 1 month

Safety – Medical Treatment / Restricted DutyProduction Loss = 05 - 2 Hrs/Yr

HIGHSignificant probability that it will occur in less than 1 week

Safety – Lost TimeProduction Loss = 2 - 24 Hrs/Yr

VERY HIGHSignificant probability that it will occur in less than 24 hours

Safety – Fatality or harm to Public sectorProduction Loss > 24 Hrs/Yr

• Work Order Priority: assessing the criticality of Work Orders and carrying them out accordingly

Work Order Priority Management



PRIORITY DEFINITION TARGET

PRIORITY 1 (CRITICAL)

Work Type (Unscheduled Corrective Maintenance)

(Do Today)

Immediate Loss of Production or SHE Incident Loss of asset availability causing production loss Hazardous safety condition Condition that seriously affects the environment

5% of total MaintenanceMan-hours

PRIORITY 2 (URGENT)

Work Type (Scheduled Corrective Maintenance)

(Do Tomorrow)

Potential Loss of Production or SHE Incident Potential loss of asset availability that will cause

production loss Potential hazardous safety or environmental

condition

15% of total Maintenance Man-hours

PRIORITY 3(NORMAL)

Work Type (Scheduled Preventive and Corrective Maintenance and Standing

Work Orders) (Weekly Planning)

No Loss of Production or SHE Incident Corrective work that does not have a significant

impact on production availability No hazardous safety or environmental impact Scheduled based on Start Date and resource

availability (Backlog Management)

80% of total Maintenance Man-hours

Work Order Priority Code Definitions and Targets



Worklist Management and Optimization102 – Work Package Flow Chart

Worklist 2006 Management

Bruce G.

Empac• Work

Request• Work Order

Customer• Phone/

Radio• Personal

Risk/Cost Benefit

Analysis

Status• Routine• Cancel

Yes

Defer

No

Worklist 2010 Management

Bruce G.

Cut-off DateNov 1, 2007

Planner•Estimate•Develop Work Package

Estimate Accepted

?Yes

No

Coordinator•Electronic File•Work Package Filing

Coordinator•Update Work Package Status

Planning Team•Complete Work Package Cover Sheets & File

Planning Team•Gather Stakeholder Data / Info

Yes

Lead Planner•Enter Estimate into WO

Lead Planner•Create Work Orders if Required

Coordinator•Approve Work Packages with Signatures

Work Package Approved

?

Yes

No

Administration•Copy Work Package into Field Binders

4 Weeks Prior toDecommissioningJune 10, 2008



Workscope Optimization / Worklist Management Tool• Worklist Management Tool

•Work is approved and controlled by authorized users•Notes are added to establish scope of work for each line item (Task)



Planning / Scheduling• The Planning and Scheduling Function

• Planning and Scheduling is a function, not a position• The person responsible for the Planning and Scheduling function

must not only be knowledgeable and experienced in each function, they must have sufficient authority to ensure compliance

• Traditionally, the function of Planning and Scheduling was given to a, so called, Planner/Scheduler

• There is no certified position as Planner/Scheduler, no institute or means of certification Therefore, qualification is difficult to achieve

• In the absence of certification and qualification a position does not enjoy the authority, respect or compensation necessary to perform at an excellence level



Planning / Scheduling• Planning versus Strategic Planning

• Planning• Planning is the establishment of activities that need to be executed

based on a defined task• Strategic Planning

• Strategic Planning is the determination of activities that might need to be managed based on ‘what-if’

• Strategic Planning relies on the ability to determine probability and consequence

• The Turnaround Readiness Assessment must be conducted in a way that allows the Auditor to assess strategies, not just plans

Planning

Risk Analysis

Strategy



Planning / Scheduling• Planning versus Scheduling

• Planning• Planning consists of breaking down a task into a network of logical

and executable activities with estimates for duration and resources• Always use benchmark estimates… don’t pad man-hours or

factor in friction time, i.e., travel, permits, meetings, lunch, etc.

• Scheduling• Scheduling is a technique used to program the scheduling software

to establish a dynamic plan (sometimes referred to as programming)

• Always apply productivity factors prior to scheduling the plan• Coordinating

• Coordinating is a field responsibility where activities, equipment and resources are managed to execute the planned activities scheduled for each shift, i.e., forklift, safety equipment, pickers, etc.



Planning / Scheduling• Planning versus Strategic Planning – Contactor Tower

• Planning - Task – Clean and Inspect – 48 hours• Activities

• Blind, Clean, Open, Vent, Inspect, Close, Deblind• Strategic Planning – Task – Clean and Inspect – 68 hours

• Activities• Blind, Clean, More Cleaning, More Cleaning, Open, Vent, More Venting,

Pick Up Tray Pieces, Install Lighting, Install Internal Scaffolding, Cut Bolts, Order Tray Parts, Inspect, Make Repairs, Re-inspect, Resurface Man-ways, Replace New Gaskets That Got Damaged, etc…

Remember! It’s the ‘What-ifs’ of strategic planningthat determine the readiness for action…



• Best-Practices – Planning• Strategic Planning is established by the Core Team during the

Milestone Schedule project phase• Detailed Planning begins following the approval of the Worklist Items

and the Workscope / Budget has been defined (Worklist Cut-off Date)• Planners / Schedulers are assigned to manage Work Packages• Field Planners are assigned to estimate activities, durations and

resources• Each stakeholder department lead (Core Team Member) is

responsible to ensure their input into the Work Packages is completed• Work Packages are managed and tracked using the Worklist

Management Tool

Presentation – Planning / Scheduling



Planning / Scheduling• Plans Typically Breakdown (fall-apart, change, run-amuck)

•4 hours into the shutdown (in the absence of a well-defined shutdown plan)

• In the absence of detailed job planning•When developed in isolation (ie, by Planning, as opposed to Planning, Operations and Execution)

• In the absence of a daily shift report•When 3 day look-ahead shift reports are issued•When activities are not properly statused and updated (lack of communication between Planning, Execution and Operations)

•When schedules are rigid and not dynamic and flexible• In the absence of effective project management skills• In the absence of buy-in by contractors or stakeholders•When scheduling software is under, or over, utilized •When Planners/Schedulers are viewed by the rest of the organization as non-essential, overpaid, a waste of time, useless, etc…etc…

•When extra or added work is identified (scope growth)



• This is a Plan, not a Schedule

Planning / Scheduling



Planning / Scheduling• What does the Turnaround Team expect from the schedule?

• Ability to Manage Pre-Scheduled and Post-Turnaround Activities Independently

• Perform Extensive Turnaround Simulations• Immediate Response to Changing Conditions• Capable of Integrating Workscope Additions and Deletions in

Real-time• Improved Resource Utilization – wrench-time• Realistic, Specific Shift Reports• Schedule Workforce, Tools, Materials, Permits

“Drive The Turnaround vs Monitor The Turnaround”



Scheduling Methodology by Phase



Senior Planner / Scheduler

Junior Planner / Clerical

Intermediate / Field Planner• Field Planning• Materials Requisitions• Execution Strategy• Report Creation• Execution Updates• Execution Resource for

Operations / Technical and Execution Supervision

• Document Control• Data Entry• Report Generation• Planned Job Package

Development• Construct Coffee

• Master Plan and Schedule• Cost / Schedule Optimization• Meeting Facilitator• Execution Re-scheduling• Resource Management and Control• Schedule Analysis• Management Resource for Project Controls

• Planner Competencies and Profiles

Planning / Scheduling



• What constitutes a Turnaround Team?•Asset Management Team (Leaders Team)

• Accountable to Senior Management to meet Key Performance Targets• Part-time commitment• Assigns Project Manager

•Project Manager (Turnaround Manager)• Accountable to Asset Management Team

•Core Team (Steering Committee)• Accountable to Project Manager (Turnaround Manager) to meet Milestone

Schedule Targets• Stakeholder Department Leads• Part-time commitment

•Planning Team (Project Controls)• Accountable to the Lead Planner (Stakeholder Department Lead)• Responsible for planning, scheduling and project controls• Full-time commitment with support from Operations and Technical

Establishing the Turnaround Team



Establishing the Turnaround Team• Best-Practice Turnaround Management Organization



Establishing the Turnaround Team• Communication



• The Asset Management Team is responsible for establishing budgets for day-to-day operations, maintenance repair and overhaul, process outage shutdowns and unit / facility turnarounds in a five year plan format

• Facilities Engineering is responsible for establishing budgets for CAPEX projects (including indirect support / resources)

• The Leaders Team (Senior Management) is accountable for the budgets• The turnaround budget is comprised of OPEX, TA and CAPEX

commitments• The turnaround budget will be established, modified and frozen during

various phases of the turnaround management process• Five Year Plan

• Asset Integrity• Process Integrity

• Turnaround Kick-off (18 months prior to feed-out / aligned with Cut-off Date / contingency added for Late Work – 20% including indirects)

• Planned Maintenance Work Orders• Inspection Worklist• Process Cleaning / Filters / Catalyst• Indirects• Purchase Orders

Creating a Budget



• Working Budget• During Worklist Management and Planning Process• Work is cancelled or added to the Worklist (Late Work)• Found work considerations are planned into the work package• Budget fluxuates +/-

• Control Budget• Two weeks prior to Feed-out• 10 percent contingency for New Work• Budget is frozen as the Key Performance Indicator (Cost) Target

• The Control Budget is determined by:• Planned / estimated direct wrench-hours• Purchase orders• Materials• Indirects (based on percentage of man-hours, or fixed price)

• Safety• Scaffolding• Supervision• Administration• Mobilization• Accommodations / Trailers / Washrooms, etc

Creating a Budget



• Budget Matrix including Indirect Percentages

Creating a Budget



Workscope and Budget Calculator• The Workscope and Budget Calculator can assist

with establishing the Initial Budget•Categorize work

• Regulatory• Asset Integrity• Process Integrity

•Number of assets• By type

•Benchmark man-hours•Estimate indirects•Estimate materials•Determine Planning Resources•Determine amount of time required to prepare Planned Job Packages prior to Feed-out



Workscope and Budget Calculator



Presentation Agenda• Day Two

• Worklist Management and Control (Late Work Cut-off)

• Managing the Milestone Schedule• Managing Planning Resources• Presentation (Terrance Trail) –

Venezuela• Establishing Contracts



• Best-Practices•Worklist Items should be managed in conjunction with the Work Order system

•There can only be one Worklist (not multiple copies of Excel Spreadsheets or reports)

•Use a controlled and protected Worklist Management Tool•Assign assess to no more than three people to manage the Worklist

Worklist Management and Control (Late Work Cut-off)



Worklist Management and Control (Late Work Cut-off)• Worklist Management Tool

•Work is managed by category, classification, type of work, status, etc•Worklist is controlled by authorized users only



Managing the Milestone Schedule• Best-Practices

•A Milestone Schedule must be established by the Project Manager (Turnaround Manager) immediately following the establishment of the Initial Budget

•A Responsibilities Matrix must be used to determine the assignment of Milestone Schedule activities to the Core Team Members

•A weekly project management meeting must be established where members of the Core Team meet for one hour to review their assignments and update Milestone Schedule activities

•The Milestone Schedule activities must support all the activities identified on the Turnaround Readiness Assessment Tool

•The Milestone Schedule must be updated weekly and progressed to demonstrate performance and trending

•The Milestone Schedule weekly meeting must be attended by each member of the Core Team (or Alternate) Failure to show up for two consecutive meetings means you’re off the team



Weekly Project Management Status and Update Meeting

Responsibility Matrix

Project Milestone Events Schedule

Managing the Milestone Schedule• Project Management – Planning Milestone Schedule



Managing the Milestone Schedule• Weekly Meeting Preparation and Agenda

• Each member of the Steering Committee (Core Team) is issued a controlled binder with the appropriate tabs which correspond to the electronic filing system

• Binders are audited monthly to ensure all documents and revisions are up to date

• Every strategy and plan document created must have a file-path and revision number before being passed out at each meeting and filed in the Core Team Binders in the appropriate section

• Use encouraging ideas like the one below to ensure Core Team Members and their department personnel review the binder documents on a regular basis



Managing the Milestone Schedule• Weekly Meeting Preparation and Agenda – continued

• All Strategy and Plan documents are added to the Orientation and Training Program Guide

• Agenda (1 hour weekly meeting)• Attendance (sign-in, verify everyone has their binder)• Review scope of work/number of planned job packages/worklist items• Update Milestone Schedule activity status for each Core Team Member

• Establish corrective action session for any Core Team Member who does not complete their assigned activity as scheduled (you can’t keep putting 5% and pushing off the date)

• Review Milestone Schedule status and re-schedule activities as required• Distribute completed Strategy and Plan documents to all Core Team Members• Schedule Strategy Workshop meetings• Identify issues and concerns (schedule resolution meetings)• Adjourn meeting



Strategic Planning Phase

Worklist/Planning Phase

Execution Phase

Milestone Schedule(Project Management – update weekly)

Execution Schedule(Turnaround Management –

update each shift)

Milestone Schedule / Execution Schedule• Milestone Schedule / Execution Schedule



Managing Planning Resources• Planned Job Package Development Program Tool



• Best-Practices•A Lead Planner must occupy a chair on the Core Team (Steering Committee)

•The Lead Planner is accountable for the control of Planned Job Packages

•The Lead Planner develops a Planning Team which consists of:• Field estimators (all disciplines as required)• Schedulers• Project Controls administration personnel• Logistics personnel

•The Lead Planner is responsible to ensure all Work Packages are reviewed by Inspection, Safety, Operations and Contractors as required

Managing Planning Resources



• Planned Job Package Status Graph•Work Package Completion is tracked on a weekly basis using the data from the Worklist Planning Tool and the Status Graph




• Best-Practices•Assign the Field Planning Role to experienced craftspersons with supervisory experience

•Assign Field Planners by Work Breakdown Structure, i.e., Area, Unit•Field Planners will be responsible for the completion of the Planned Job Packages assigned to them

•Use a standard Field Planning Form•Establish each Field Planner as an Execution Coordinator for their assigned Area, Unit during the Execution Phase of the Turnaround

•Consider using and independent Scaffolding Planner•Track the progress of each Planned Job Package on the Worklist Tool and progress status weekly

•Complete all Planned Job Packages one month prior to Feed-out•Have Field Planners assist with establishing the Execution Organization Chart




• Best-Practices - continued•Use Planning Tags for each Worklist Item and hang them as close to the work location as possible

•Provide Field Planners with labour support one month prior to Feed-out to prepare laydown areas, hang blinds, Operations support, temporary lines, drains, etc.

•Establish night-shift Field Planner/Execution Coordinators

•Allow Execution Coordinators to overlap shifts, i.e., 13 hour shift schedule


Planning Tag



• Turnaround Management Implementation Project•Forth largest oil producer•Project consisted of:

• Establishing best-practice strategies for Turnaround Management

• Implementation through training and coaching• Establishing Equipment Network Libraries• Assisting with Turnaround Execution

•Significant improvement were recognized in:• Reduced risk (Workscope Optimization)• Increased Worker Performance• Quality• Schedule Duration

•Most significant factors:• Dynamic Schedule Management Methodology• Detailed Planning and Estimating (Work Packages)

•Tools• SAP• Primavera / CASP

Presentation - Venezuela



Establishing Contracts• Establishing contract parameters and scope

of work•Attachment ‘A’

•Provides a list of typical services that are required during a turnaround, what contract type may be appropriate, who typically issues the contract for services (Prime Contractor or Owner) and who should manage the day-to-day activities of the service provider

•Attachment ‘B’•Provides a list of facilities, utilities and equipment that are required for the turnaround and who typically is responsible to provide them



• Utilize a Contracting Plan that defines specific responsibilities relating to: • Planning, Supervision, Payment, Time Sheets, Change Management, Field

Change Order System and Cost Monitoring• Determine which work items to contract out, who should issue the contract

and who should manage the day-to-day activities• Define who has the coordination role for

• Progressing Status• Monitoring Performance, Quality, Cost and Safety• Prepare Work Scope Definition

• Decide on contract type• Cost Plus• Fixed Price• Target Price Reimbursable• Unit Rate• Service Contract• Blanket Order

• Prepare Standard Terms and Conditions• Integrate Contractor’s Schedule with Turnaround Schedule

Establishing Contracts



• Cost Plus - Payroll or Actual Cost Plus Fee• Fee could be:

• overhead and fee• overhead and sliding scale fee• fixed overhead and fee• overhead and fee tied to incentives

• Fixed Price - Lump sum for defined scope plus mechanism to deal with additions and deletions to scope

• Target Price / Reimbursable - Contractor agrees to control estimate, schedule, safety, milestones, etc Contractor reimbursed for payroll or actual costs

• Fee based on estimate• % or all of fee forfeited on target overruns• % of incentive received on target underruns

• Unit Rate - Rate includes direct cost plus additions to cover overheads, fees, tools, supervision, clerical, etc

• Service Contracts - Rates, terms and conditions established on a “Continuing Service Basis” or “Spot Basis” over a long term

Contract Types

• Blanket Orders – Rates, terms and conditions established for materials and / or repair work for a fixed period of time



Presentation Agenda• Day Three

• Developing Stakeholder Strategies and Plans

• Shutdown / Start-up Plans• Blinding• Performance Reporting• Project Controls• The Three Amigos• Questions and Answers• Demobilize / Socialize



• Strategies and Plans must be developed for all Stakeholder Departments:

•Operations• Shutdown/Start-up• Permitting• Blinding• Cleaning/Catalyst/De-coke

•Maintenance• Rotating• E/I• Stationary

• Inspection/Technical• QA/QC/Corrosion/Erosion• Testing

•Materials Management•Contracting/Procurement•Safety/Environment•Engineering•Administration

Developing Stakeholder Strategies and Plans



• Strategies and Plans must be developed for all Functional Areas:•Logistics

• Mobilization/Demobilization• Trailers/Janitorial/Garbage/Transportation/Plot Plans/Parking

•Communications• Meetings• Radios• Stationary

•Execution• Shift Schedules• Consumables/Free Issue

•Planning/Scheduling•Training•Project Controls•Cost Collection•Time Keeping•Security•Leak Detection




• Strategies and Plans must be developed for all Functional Areas:




• Strategy Workshops•Schedule Strategy Workshops during the Strategic Planning Phase

• The Project Manager / Turnaround Manager or Turnaround Coordinator must facilitate each Strategy Workshop

• A schedule of Strategy Workshops should be added to the Milestone Schedule

• A formalized agenda and process must be followed during the facilitation of Strategy Workshops

• A list of attendees critical to the Strategy Workshop must be established

• Each Strategy Workshop should be no longer than 4 hours in duration• Any activities identified during the Strategy Workshops must be

added to the Milestone Schedule• All Strategy Workshop documents must be distributed and filed

accordingly




• Strategy Workshop Exercise•Develop a strategy / plan for Safe Work Permits

• Form a group and delegate a facilitator• Use the formal Strategy Workshop Form• Identify the Key Deliverables (Goals)• Determine the Objectives (How to achieve the Goals)• Establish the Strategy Tasks ( How to achieve the Objectives)• Take up to an hour to discuss and complete the Strategy Workshop

Form• Record your results




• Shutdown (decommission) Best-Practices•The strategy to decommission, isolate, evacuate and decontaminate Process Units must consider and manage the following issues:

• Sequence all shutdown activities using a documented, systematic work breakdown structure to ensure all items are addressed and provide the structure for the job safety analysis,

• Prepare a written plan / schedule of all shutdown activities using critical path method (sequence, duration, resources) to provide Operations with the opportunity to develop and achieve reasonable schedule targets,

• Integrate the shutdown plan into the master plan and control the schedule using the Daily Shift Report,

• Define the communication method that will be used between Maintenance and Operations and for Operations turnover between shifts to eliminate any miscommunication, risk and hazards associated with these critical activities,

• Identify all activities requiring Maintenance support to Operations to ensure resources are allocated during mobilization planning without effecting other scheduled activities

Shutdown / Start-up Plans



• Shutdown (decommission) Best-Practices – continued•The Shutdown – Feed / Oil Out Plan must identify:

• The process system that is being prepared,• The Area and Unit where the process system exists,• Any sub-systems,• The Equipment related to the system,• The activities required to prepare the process system for inspection and

maintenance activities,• All tools and related materials required to perform the activities,• All Maintenance support manpower requirements, • All support services ie nitrogen trucks, vacuum trucks, etc




• Shutdown (decommission) Best-Practices - continued•A knowledgeable Operations Planner must be involved early in the Workscope Development Phase to prepare the Shutdown – Fed / Oil Out and Startup – Feed / Oil In Strategy Operations procedures should be available and include:

• The complete blind lists for unit and equipment isolation (consider common blind locations for isolating multiple equipment and test blinds where necessary),

• The blind tracking boards and a sign-off process,• The definition of the types of Work Permit,• Equipment Logic Networks (Critical Path Method) for all Process Unit

Shutdown and Startup Procedures• The Process Unit shut down work instructions and checklist,• The Operations and Maintenance Support required by Process Unit, • The disturbed flange tracking control log,• The control valve and PSV service status,• P&ID Diagrams with marked up blind locations and drain and steam-out

connections




• Shutdown (decommissioning) Best-Practices – continued•The Shutdown Plan should include:

• Integrate the Process Units and Utilities Area into the overall plan,• Define the work activities in detail (approximately 4 hours duration)

Supplemental work instructions can be specified in the notepad feature of the planning software or linked to the Operational Procedure database,

• Specify the material and tool requirements,• Develop detailed Work Packages by system




• Start-up (commission) Best-Practices•The strategy to deblind, purge, pressurize, verify system integrity and commission Process Units must consider and manage the following issues:

• Sequence all startup activities using a documented, systematic work breakdown structure to ensure all items are addressed and provide the structure for the job safety analysis,

• Prepare a written plan / schedule of all startup activities using critical path method (sequence, duration, resources) to provide Operations with the opportunity to develop and achieve reasonable schedule targets,

• Integrate the startup plan into the master plan and control the schedule using the Daily Shift Report,

• Define the communication method that will be used between Maintenance and Operations and for Operations turnover between shifts to eliminate any miscommunication, risk and hazards associated with these critical activities,

• Identify all activities requiring Maintenance support to Operations to ensure resources are allocated during demobilization planning without effecting other scheduled activities




• Start-up (commission) Best-Practices -continued•The Startup – Feed / Oil In Plan must identify:

• The process system that is being prepared,• The Area and Unit where the process system exists,• Any sub-systems,• The Equipment related to the system,• The activities required to prepare the process system for commissioning

and startup,• All tools and related materials required to perform the activities,• All Maintenance support manpower requirements, • All support services, i.e., nitrogen trucks




• Best-Practices•The blinding phase is a high-risk phase than can impact safety, environment, schedule and cost

•Establish a formalized process for LOTO management and control

•Know the policies and regulations regarding Close Vessel Blinding

•Prepare blind locations by stripping insulation, removing and cleaning studs, hanging blinds, hanging gaskets, erecting scaffolding

•Educate everyone on the policies and procedures for blinding, lock-outs, seals and deblinding

•Ensure consistent use of the blind system across all work types, i.e., maintenance, turnaround, projects, etc.

•Each area is responsible for controlling and tracking the blinding process

Blinding

Blind Tag



• Best-Practices•Establish blinding as part of the Planned Job Package•Determine which type of blinds are required, i.e., isolation, pressure, testing, etc.

•Conduct an inventory of blinds on-hand•Build unit specific blind racks to store blinds•Establish the LOTO strategy, policy and procedure early and ensure sufficient locks and chains are ordered

Blinding



Blinding• The Blind Sheet by Equipment / Work Type



• Best-Practices•Use the Milestone Schedule to report performance (Readiness) each week at the Core Team Meeting

•Report performance every 24 hours during Execution Phase• Schedule a daily performance review meeting with Core Team during the

Execution Phase• Based on the status of each Key Performance Indicator• Try to keep all data displayed as visual charts with tabular backup• Try to keep all data displayed on one hand-out• Save a copy each day for trending

•Establish trending analysis and run what-if scenarios to determine the best solution to poor performance

• Increase work hours• Decrease work• Extend duration• SWAT Team• Add equipment / resources

Performance Reporting



Performance Reporting



• Best-Practices•Make the Planning / Scheduling responsible for Project Controls

•Project Controls means real-time data for cost, schedule and resource performance

•Project Controls means reporting daily to the Project Manager and Leaders Team on the status of each KPI

•Project Controls means trending data and providing solutions to discrepancies

Project Controls



• Execution Coordinator•Responsible for Resources•Responsible for Updates

• Operations Coordinator•Responsible for Assets•Responsible for Permits

• Safety Coordinator•Responsible for Safety Resources

• The Three Amigos are each assigned an Area and a Permit Trailer

• The Three Amigos have back-to-backs for 24 hour coverage

• Each group of Three Amigos creates the Shift Report for their back-to-backs

The Three Amigos



14110 – Work Schedule Overview

Day Shift 7:00am Start

MIDNIGHT MIDNIGHT

12:00 NOON

6:00 AM 6:00 PM

3:00 Status Updates – Execution Area Coords

5:00 Issue shift reports to Area Coordinators

6:00 Area Coordinator Handover

4:00 Re-schedule review – Ops AreaCoordinators and Safety Coordinators

Execution Area Coordinator

Update Times

AM & PM

1-Inlet – 3:00

2-Process – 3:10

3-Sulphur – 3:20

4-Utilities – 3:30

Ops/ Safety Area Coordinator

Reschedule Times

AM & PM

1-Inlet – 4:00

2-Process – 4:15

3-Sulphur – 4:30

4-Utilities – 4:45

Bonus 6:00–10:00 pm Day Shift 5:00pmM

M Bonus 2:00-6:00pm Night Shift 7:00pm Start Night Shift 5:00amM

M MM

MM

3:00 AM 9:00 AM

3:00 PM 9:00 PM



The Three Amigos – Shift Report• The Shift Report is generated for

each Area after a new plan has been scheduled by the Three Amigos

• The Shift Report is printed on a different color paper each day

• The Shift Report can be photo-copied by the Three Amigos and distributed as they see fit

• The only Shift Report to be update and turned back into Project Controls is the colored one

• Updates are done, and new Shift Reports are created, between 3 – 5 o’clock each shift

• The Shift Report is generated with a 12 hour look-ahead – NO MORE!!



The SWAT Team• Consider forming a SWAT Team during the Execution Phase

•Qualified and experienced team of craftspersons•Used to execute high-risk activities•Used to assist schedule work execution crews with complex jobs•Un-scheduled response team with dedicated radio channel•Assist with shutdown/blinding and start-up/de-blinding•Maybe independents•Pay for performance (higher pay than average)•Supported by their own safety coordinator and equipment•13 hour shift with cross-over•Overtime automatically approved



Performance Management• Peak Performers

• Why are some companies such good performers, while others endure?• Why do some individuals enjoy success, while others struggle?

• People, Processes, and Plans; with Vision and Empowerment = Performance Excellence

Results

Desire

PassionPersonal Performance Excellence

Results

Vision

EmpowermentBusiness Performance Excellence



Performance Management• Measuring Success

• Success is measured as a level of satisfaction• Satisfaction is determined by your own self-image, or your customer -

either internal, or external• Your customer has expectations – expectations based on your promise

to deliver• Your promise to deliver is your mission statement• A poor mission statement may affirm:

• We deliver a nice pizza• A good mission statement will affirm:

• At your door in thirty minutes or it’s free

Human Asset

Human Liability

Human Resource

Performance Excellence



Training and Coaching• Certification

• Certification must be formalized by way of formal training programs

• Various degrees of certification in the form of training program modules can be developed

• Testing must be conducted to establish certification

• Qualification• Qualification must come from hands-on

experience through coaching• Qualification must be managed over a period

of time determined by the complexity of the assignments

• Qualification must be phased, or staged, in a way that developed the competency towards a final certified and qualified position

• Assessment reviews must be conducted to establish qualification



Performance Management• Effort versus Impact

• What should I work on?• What is the amount of effort I need to put in?• What is the impact to my own success, or my customer’s satisfaction?

• A business process should determine what to work on; or at least provide a tool for Leaders, Managers and Resources to make a decision

• Activities should be assessed to determine their impact on business, and the impact on customer satisfaction

Impact

Effo

rt

High

Hig

hLo

w

Low Impact

Effo

rt

High

Hig

hLo

w

Low

• Only work on those activities that produce the desired results with the least amount of effort

• If energy, rather than effort, is involved, such as when you perform a satisfying personal or business activity, the impact is always high

• If effort, rather than energy, is involved, such as when you perform an unsatisfying personal or business activity, the impact is always low



Resource Management• Supervision / Management

• Leadership• Effectiveness – what to do• Leaders manage upward• Leaders should design people (transition resources to assets)

• Management• Efficiency – how to do• Managers lead downward• Managers should develop people (transition liabilities to resources)• They often spend 80% of their time with 20% of the people (problem

solving)• The other 20% of time is split between resources and assets (18% for

resources, 2% for assets)• Control

• Won’t work with resources• Inspire, encourage, recognize

Recognize

Inspire

EncouragePerformance Excellence



Resource Management• Manage work, not people

• People are not manageable, neither are horses, movie stars or children

• People have personalities Personalities that are affected by emotions• People have passion, desire and free-will• People are creative, sensitive, motivated one day, exhausted the next

• When work is identified as an activity, with an explanation of what to do and how to do it…match it to a resource capable of performing the activity with energy…eliminate work…feel the results

• Allow people to be creative, spontaneous, satisfied and recognized• Measure the quantity of activities being executed• Measure the quality of activities being executed• Instill continuous improvement into the process of executing

activities…this allows people to be creative• Treat people as unique resources…let them grow into human assets



Turnaround Readiness Assessment Program



25%

50%

75%

100%

Operational & Maintainability

Process Availability

Equipment Reliability

Performance Indicators• Process Availability = % Throughput• Equipment Reliability = Cost• Operate / Maintain = Safety

Quality Man-hours Indirects Materials Schedule

Points to PonderTurnaround Performance• Performance Indicators

sto 3 day course presentation

Documents

systematic workbreakdown structure

outagesshutdown start

stakeholder department lead

key performance indicator

outagesdeveloping stakeholder strategies

outagesplanning scheduling

daily shift report

outage worklist items