strategies to overcome shortages of crafts and maximize field productivity strategies to overcome...

Strategies to Overcome Strategies to Overcome

Shortages of Crafts and Shortages of Crafts and

Maximize Field ProductivityMaximize Field Productivity

Bobby SinghBobby SinghPresidentPresident

Project AssuranceProject Assurance, , Houston, TexasHouston, Texas

Presentation FocusPresentation Focus

Strategies to Overcome Craft ShortagesStrategies to Overcome Craft Shortages

Industry’s Challenge to Overcome Craft Shortages Industry’s Challenge to Overcome Craft Shortages

Recent Turnaround ExperiencesRecent Turnaround Experiences

Some of Our Management WeaknessesSome of Our Management Weaknesses

Solutions to Overcome Craft ShortagesSolutions to Overcome Craft Shortages

Improving Craft ProductivityImproving Craft Productivity

TOP TEN LISTTOP TEN LIST

When a Company is NOT Managing When a Company is NOT Managing World-Class Projects and TurnaroundsWorld-Class Projects and Turnarounds

Contractor Alignment and Team Building Sessions Contractor Alignment and Team Building Sessions

are conducted after the turnaround completion.are conducted after the turnaround completion.

10

Achieving World-Class TurnaroundsAchieving World-Class Turnarounds



Turnaround scheduling staff are frustrated due to the Turnaround scheduling staff are frustrated due to the

planning software’s limitation to schedule only planning software’s limitation to schedule only

1,000,0001,000,000 activities. activities.

9




Reengineering is considered to be as-built drawings Reengineering is considered to be as-built drawings

after operations and process engineering groups after operations and process engineering groups

have made have made 10,000 MINOR10,000 MINOR scope improvements.scope improvements.

8




Expedited and long-lead materials are found under Expedited and long-lead materials are found under

contractors’ trailers after the turnaround contractors’ trailers after the turnaround

completion.completion.

7




Sole criteria for selecting qualified contractors is the Sole criteria for selecting qualified contractors is the

number of their memberships to golf clubs, burlesque number of their memberships to golf clubs, burlesque

bars and invitations to hunting and fishing trips.bars and invitations to hunting and fishing trips.

6




Planning, Cost, Inspection and Safety staff are Planning, Cost, Inspection and Safety staff are

laid off to save turnaround costs and laid off to save turnaround costs and

improve company profits.improve company profits.

5




WBS, PSM and HAZOP are perceived as the new Cable WBS, PSM and HAZOP are perceived as the new Cable

TV Channels on the information super-highway.TV Channels on the information super-highway.

4


Bobby



Company’s turnaround vision, executive mission Company’s turnaround vision, executive mission

statement and performance goals are written by statement and performance goals are written by

professional speech writers.professional speech writers.

3




Progress status, schedule updates and cost Progress status, schedule updates and cost

forecasts are performed by local psychics, forecasts are performed by local psychics,

astrologers and tarot card readers.astrologers and tarot card readers.

2




When a Manager says, “I have not read Bobby When a Manager says, “I have not read Bobby

Singh’s latest book Singh’s latest book

World-Class Turnaround Management.”World-Class Turnaround Management.”

1


Industry ChallengeIndustry Challenge

Cost and schedule performance of most Capital Projects and Cost and schedule performance of most Capital Projects and

Plant Turnarounds is being severely impacted by :Plant Turnarounds is being severely impacted by :

1.1. Shortages of qualified crafts Shortages of qualified crafts

2.2. Experienced supervisionExperienced supervision


Industry ChallengeIndustry Challenge

Poor performance on capital projects and Poor performance on capital projects and

turnarounds is further compounded by:turnarounds is further compounded by:

1.1. Poor field productivity Poor field productivity

2.2. Low actual tool timeLow actual tool time

3.3. New regulatory requirementsNew regulatory requirements

4.4. Integration with large capital projectsIntegration with large capital projects


On a typical construction the actual tool On a typical construction the actual tool

time on a 10-hour work shift time on a 10-hour work shift

Is less than 4 hoursIs less than 4 hours

Not an Encouraging Productivity StatisticsNot an Encouraging Productivity Statistics

Productivity – Tool TimeProductivity – Tool Time


How many of you folks have their Projects How many of you folks have their Projects

and Turnarounds results adversely and Turnarounds results adversely

impacted byimpacted by

Craft shortages and poor productivity?Craft shortages and poor productivity?


Some of Canada’s large tar sand projects have Some of Canada’s large tar sand projects have

experienced cost overruns of experienced cost overruns of

over over Billion DollarsBillion Dollars

due to craft shortages and poor field productivity.due to craft shortages and poor field productivity.

Past Performance ResultsPast Performance Results


Ethylene Turnaround in Houston AreaEthylene Turnaround in Houston Area

Planned crafts during turnaround:Planned crafts during turnaround: 2000 2000

Actual maximum number of craftsActual maximum number of crafts 12001200

* Turnaround scheduling started 24 months before the turnaround* Turnaround scheduling started 24 months before the turnaround

** 2 large mechanical contractors were selected for execution** 2 large mechanical contractors were selected for execution



Large Turnaround in Lake CharlesLarge Turnaround in Lake Charles

Planned welders / pipe fitters craftsPlanned welders / pipe fitters crafts 124124

Actual welders provided by contractorActual welders provided by contractor 3131

* Other mechanical contractor was added to supplement primary contractors* Other mechanical contractor was added to supplement primary contractors

** Contractors started planning 18 months before the turnaround** Contractors started planning 18 months before the turnaround



Ethylene Turnaround in Lake CharlesEthylene Turnaround in Lake Charles

Planned welders / pipe fitters craftsPlanned welders / pipe fitters crafts 112112

Actual crafts provided by contractorActual crafts provided by contractor 115115

* Multiple contractors were selected to execute turnaround work scope * Multiple contractors were selected to execute turnaround work scope

** Craft requirements and contracting strategy were developed 18 months ** Craft requirements and contracting strategy were developed 18 months

before the turnaroundbefore the turnaround



During some recent large turnarounds and capital projects, the During some recent large turnarounds and capital projects, the

problems resulting from shortage of qualified crafts and poor problems resulting from shortage of qualified crafts and poor

productivity was so bad, that to help finish the work, the productivity was so bad, that to help finish the work, the

companies had to rely on:companies had to rely on:

Highly Experienced, Motivated Highly Experienced, Motivated

and Productive Crafts !!!and Productive Crafts !!!

Overcoming Craft Shortage ChallengeOvercoming Craft Shortage Challenge


Contracted Foreign Crafts from:Contracted Foreign Crafts from:

PhilippinesPhilippines

India India

CroatiaCroatia


Welcome to the new realities of Welcome to the new realities of

executing plant Projects and executing plant Projects and

Turnarounds in theTurnarounds in the

2121stst Century Century

Foreign Pools of Contracted LaborForeign Pools of Contracted Labor


Turnaround Management BenchmarkingTurnaround Management Benchmarking Key Performance AreasKey Performance Areas

100

80

60

40

20

Strategic Planning

Work ScopeManagement

ContractingStrategy

ManpowerPlanning

ProductivityImprovement

Leaders =

Industry Average =

Laggards =


%%

We Must Accept Our WeaknessesWe Must Accept Our Weaknesses

Owners’ planning resources and expertise are Owners’ planning resources and expertise are

limited and shrinkinglimited and shrinking

Most companies do not perform front-end planning Most companies do not perform front-end planning

to identify craft needs and develop craft procurement to identify craft needs and develop craft procurement

strategiesstrategies

Companies spend most efforts reacting and fighting Companies spend most efforts reacting and fighting

fires than up-front strategic planningfires than up-front strategic planning


We Must Accept Our WeaknessesWe Must Accept Our Weaknesses

Manpower plans and solutions are developed without Manpower plans and solutions are developed without

participation of contractors and consultantsparticipation of contractors and consultants

We We hopehope and sometimes and sometimes praypray for highest results for highest results

without mitigating the potential problems and without mitigating the potential problems and

implementing innovative approaches implementing innovative approaches

Past poor results have been tolerated without any Past poor results have been tolerated without any

consequencesconsequences


We have met the enemyWe have met the enemy

and theand the

enemy is us.enemy is us.


Start the planning early – 18 to 30 months before Start the planning early – 18 to 30 months before

the turnaroundthe turnaround

Start integrated planning with capital projects 24-Start integrated planning with capital projects 24-

36 months before turnaround date36 months before turnaround date

Strategic Planning – Recognize the challenges Strategic Planning – Recognize the challenges

early and identify innovative solutionsearly and identify innovative solutions

Steps Towards the Ultimate SolutionSteps Towards the Ultimate Solution


Identify 80% + Turnaround Work Scope 15-18 months before Identify 80% + Turnaround Work Scope 15-18 months before

the turnaround datethe turnaround date

Identify preliminary craft requirements 15-18 months before Identify preliminary craft requirements 15-18 months before

the turnaroundthe turnaround

Develop contracting strategies that reflect new market Develop contracting strategies that reflect new market

conditions – select contractors 12-15 months before the conditions – select contractors 12-15 months before the

turnaroundturnaround


Steps Towards the Ultimate SolutionSteps Towards the Ultimate Solution

Select multiple high performance contractorsSelect multiple high performance contractors

Do not overstretch contractors beyond their core Do not overstretch contractors beyond their core

strengths and capabilitiesstrengths and capabilities

Develop contractor contingency planning to quickly act Develop contractor contingency planning to quickly act

in case primary contractors could not perform in case primary contractors could not perform

Jointly develop craft procurement plansJointly develop craft procurement plans

Smart SolutionsSmart Solutions


Select specialty contractors for complex workSelect specialty contractors for complex work

Utilize fixed-fee and incentive contracting to create Utilize fixed-fee and incentive contracting to create

win-win and high-performance work environment win-win and high-performance work environment

Implement Implement Productivity Improvement PlanProductivity Improvement Plan in in

consultation with contractors and consultantsconsultation with contractors and consultants

Smart SolutionsSmart Solutions


More emphasis on pre-fabrication More emphasis on pre-fabrication

Modularization constructionModularization construction

Contractor alliances tied to performance baselineContractor alliances tied to performance baseline

Splitting the turnaround into smaller and Splitting the turnaround into smaller and

manageable work scope manageable work scope

Reliance on contracted pools of foreign laborReliance on contracted pools of foreign labor

Emerging New TrendsEmerging New Trends


Implement Implement Productivity Improvement PlansProductivity Improvement Plans

Establish realistic budgets Establish realistic budgets

Programs to seek only qualified crafts Programs to seek only qualified crafts

Efficient work / safety permits systemsEfficient work / safety permits systems

No smoking projects and turnaroundsNo smoking projects and turnarounds

Enforce discipline during breaks and quitting time Enforce discipline during breaks and quitting time

Productivity Improvement IdeasProductivity Improvement Ideas


Extensive planning and true look-ahead schedules for Extensive planning and true look-ahead schedules for

next 2-4 shiftsnext 2-4 shifts

Minimize changes to execution plansMinimize changes to execution plans

Have efficient safety meetingsHave efficient safety meetings

Eliminate wait time due to materials and equipment Eliminate wait time due to materials and equipment

delays delays

Productivity Improvement IdeasProductivity Improvement Ideas


Sadly, there is Sadly, there is nono Magic WandMagic Wand to overcome this problem. to overcome this problem.

Ultimate solutions is to take several small but smart steps: Ultimate solutions is to take several small but smart steps:

1.1. Set higher expectationsSet higher expectations

2.2. Start craft planning earlyStart craft planning early

3.3. Seek qualified staff and contractorsSeek qualified staff and contractors

4.4. Synergistic and efficient work environmentSynergistic and efficient work environment

ConclusionConclusion


If all the above does not work, then call:If all the above does not work, then call:

Project Assurance.Project Assurance.

Questions and Answers Session !Questions and Answers Session !

ConclusionConclusion


strategies to overcome shortages of crafts and maximize field productivity strategies to overcome...

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plant turnarounds

turnarounds reengineering

turnarounds progress

turnarounds sole criteria

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