Sto 3 Day Course Presentation

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™ - 3 Day Best-Practices Seminar
Copyright© 2011 www.stonavigator.com 1


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…

Training

Project
Coaching
Excellence

Implementation



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
Cost
Management
Project
Schedule Controls
Management
Resource
Management


The Asset Management Model
• The focus of this
EPC – ENGINEERING, PROCUREMENT AND OPERATING AND MAINTAINING PHASE presentation is here in the
CONSTRUCTION PHASE
Operate
Operating and Maintaining
PROJECT MANAGEMENT Phase associated with
Design WORK MANAGEMENT
Procurement facility outage
Engineering
Work Request turnarounds
Creation
Construction Commissioning
• Facility Outage
Work Request Validation
Turnarounds are one of
ROUTINE / Work Order Creation the largest expenditures
TURNAROUND
risks in the oil and gas
ASSET MANAGEMENT STRATEGIES
Work Order Type and production and
„Functional / • Operating Strategy Prioritization manufacturing sectors
PROJECTS
Criticality Analysis‟ • Maintenance
and / or „Risk Based Strategy Work Order
• The opportunity to
Inspection Plan‟
• Turnaround Strategy Planning improve asset and
• Inspection Strategy OPERATIONS
resource performance
• Critical Spares RESOURCE MANAGEMENT here is tremendous
Strategy Work Order TECHNICAL
• Training Strategy Scheduling
PLANNING
• Replacement
Planned MAINTENANCE
Strategy
Maintenance Work Order
Program Execution Asset Data
Standard Job Repository
Plans (SJP‟s) (CMMS)
Work Order
Documentation

PERFORMANCE MANAGEMENT PHASE
(Defect Elimination)
PERFORMANCE MANAGEMENT

Share Learned Eliminate Perform Root Select ‘What to Business
Cause Failure Data Analysis
Experiences Opportunities Defect Work on’ Impact Priority
Analysis



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, Hazard
• and, Maintenance Document Identification
•The AMT will form the Learn, Plan
Turnaround Management
Team
•The AMT will approve and Risk-Based
Program
Data Determine
Management Failure Frequency
prioritize all work orders
and work list items
•The AMT will be Risk
Assessment
responsible for establishing
the budgets required for Determine
OPEX and TAEX Consequence



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 Work
• Materials Management
• Procedures Performance
Resource Excellence
Management
Business
Management



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

Customer
input ? task activity output -Satisfaction
-Timing
-Quality
you – or – supplier
-Information quality
-Information timing
-Data management
activity result



Ability to Influence Performance
100%
ASSET MANAGEMENT
HIGH 21%
STRATEGIES
25%
WORK
14%
IDENTIFICATION
50% 100%
WORK
10%
PLANNING

SCHEDULING 75%
20%
PROCESS
PERFORMANCE
INFLUENCE EXECUTION
FACTOR 6%
PROCESS

UPDATE AND CONTROL 12%
PROCESS

CLOSURE
8%
PROCESS

LEARNED
9%
OPORTUNITIES
TURNAROUND PROJECT DURATION
LOW
START FINISH



• Effective Turnaround Management is dependent on performance from
all Functional Areas and Stakeholder Departments
 Contracting  Technical  Administration / Resources
 Planning  Engineering  Process Operations
 Execution  Logistics  Workscope Optimization
 Safety  Project Cost Controls  Capital Work
 Materials  Scheduling  Routine Maintenance
• 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!



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
• Work Package Planning
• Scheduling
• Contracting
• Resource Management



Turnaround Management Plan Planning
• 3 Stages
• 8 Modules Execution

Closure

Planning Stage Execution Stage Closure
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

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

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

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

Worklist Management

Materials Management

Work Package Planning Scheduling

Contracting Resource Management



Implementing a Turnaround Management Process

Consistency – in an ever-changing human
resource and software
environment
Corporate
Owned –
policies and
procedures Measurable – therefore, improvable



Successful Change Management Model ™

CHANGE MANAGEMENT PROCESS MODEL™

PLANNING PHASE DEVELOPMENT PHASE

Identify Establishment Methodology Design

MANAGEMENT PHASE IMPLEMENATION PHASE

Continuous Control and Orientation
Roll-out
Improvement Coaching and Training



Successful Change Management Requirements



Key Performance Indicators
Key Performance
Key Performance Targets
Indicators
Safety / Environment Zero (nothing hits the ground)

Based on direct planned wrench-hours and indirect
Budget
cost estimates)
Based on the longest job or series of jobs with zero
Schedule Duration
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 Meeting
7:17 – 7:30 – Travel to work location, sign-on to permit
9:30 – 9:45 – Coffee Break
12:00 – 1:00 – Lunch
3:00 – 3;15 – Coffee Break
5:00 – 5:30 – Clean up, travel to transportation location

Total time not directly working on the wrenches = 2 hours
Is this realistic?



Workscope Optimization
• 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



Risk/Cost Benefit Analysis
• Risk Matrix



Work Order Priority: Probability and Consequence Matrix

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 Planning
WO Priority Code 2: Urgent Priority - Next Day
WO Priority Code 1: Critical Priority - Today



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

LOSS
CATEGORY FREQUENCY (PROBABILITY) CONSEQUENCE
(Consider MTBF & MTTR for the Asset)
Significant probability that it will not Safety – Minor Injury
LOW occur within 1 month Production Loss < 05 Hrs/Yr

Significant probability that it will occur Safety – Medical Treatment / Restricted
MEDIUM in less than 1 month Duty
Production Loss = 05 - 2 Hrs/Yr
Significant probability that it will occur Safety – Lost Time
HIGH in less than 1 week Production Loss = 2 - 24 Hrs/Yr

Significant probability that it will occur Safety – Fatality or harm to Public sector
VERY HIGH in less than 24 hours Production Loss > 24 Hrs/Yr



Work Order Priority Code Definitions and Targets

PRIORITY DEFINITION TARGET
PRIORITY 1 Immediate Loss of Production or SHE Incident 5% of total Maintenance
(CRITICAL) Loss of asset availability causing production loss Man-hours
Work Type (Unscheduled Hazardous safety condition
Corrective Maintenance) Condition that seriously affects the environment
(Do Today)
PRIORITY 2 Potential Loss of Production or SHE Incident 15% of total Maintenance
(URGENT) Potential loss of asset availability that will cause Man-hours
Work Type (Scheduled production loss
Corrective Maintenance) Potential hazardous safety or environmental
(Do Tomorrow) condition
PRIORITY 3 No Loss of Production or SHE Incident 80% of total Maintenance
(NORMAL) Corrective work that does not have a significant Man-hours
Work Type (Scheduled impact on production availability
Preventive and Corrective No hazardous safety or environmental impact
Maintenance and Standing Scheduled based on Start Date and resource
Work Orders) (Weekly availability (Backlog Management)
Planning)



Worklist Management and Optimization
102 – Work Package Flow Chart
Coordinator
Worklist 2010
• Update Work
Empac Management
Package
•Work Request Bruce G.
Status
•Work Order Defer No

Planner Coordinator
Worklist 2006 Risk/Cost Estimate
• Estimate • Electronic File
Management Benefit Yes Accepted Yes
• Develop Work • Work Package
Bruce G. Analysis ?
Package Filing

No Planning Team Yes
Customer
• Complete Work
•Phone/Radio
Package Cover
•Personal Lead Planner
Planning Team
Sheets & File
• Gather
• Enter Estimate
No Stakeholder
into WO
Status Data / Info
•Routine
•Cancel
Work Lead Planner
Package • Create Work
Yes
Cut-off Date Approved Orders if
Nov 1, 2007 ? Required

Administration Coordinator
4 Weeks Prior to • Copy Work • Approve Work
Decommissioning Package into Packages with
June 10, 2008 Field Binders Signatures



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 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 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 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 planning
that determine the readiness for action…



Presentation – Planning / Scheduling
• 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



• 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



• 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



• Planner Competencies and Profiles
Junior Planner / Clerical
• Document Control
• Data Entry
• Report Generation
• Planned Job Package
Development
• Construct Coffee
Intermediate /
Field Planner
• Field Planning
Senior Planner / Scheduler
• Materials Requisitions • Master Plan and Schedule
• Execution Strategy • Cost / Schedule Optimization
• Report Creation • Meeting Facilitator
• Execution Updates • Execution Re-scheduling
• Execution Resource for • Resource Management and Control
Operations / Technical and • Schedule Analysis
Execution Supervision • Management Resource for Project Controls



Establishing the Turnaround Team
• 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



• Best-Practice Turnaround Management Organization



• Communication



Creating a Budget
• 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



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



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



• Project Management – Planning Milestone Schedule

Responsibility
Matrix

Project Milestone
Events Schedule
Weekly Project Management
Status and Update Meeting



• 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



• 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



Milestone Schedule / Execution Schedule
• Milestone Schedule / Execution Schedule

Worklist/Planning Phase

Strategic Planning Phase Execution Phase

Milestone Schedule Execution Schedule
(Project Management – update weekly) (Turnaround Management –
update each shift)



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



• 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



Presentation - Venezuela
• 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



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



Establishing Contracts
• 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



Contract Types
• 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
• 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



Developing Stakeholder Strategies and Plans
• 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
• Contracting/Procurement
• Safety/Environment
• Engineering
• Administration


• 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 / Start-up Plans
• 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 (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



Blinding
• 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 Blind Tag
types, i.e., maintenance, turnaround, projects, etc.
• Each area is responsible for controlling and
tracking the blinding process



Blinding
• 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
• The Blind Sheet by Equipment / Work Type



Performance Reporting
• 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



Project Controls
• 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



The Three Amigos
• 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



14110 – Work Schedule Overview

MIDNIGHT 3:00 AM 6:00 AM 9:00 AM 12:00 NOON 3:00 PM 6:00 PM 9:00 PM MIDNIGHT

M Day Shift 7:00am Start M Day Shift  5:00pm M Bonus 6:00–10:00 pm M

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

3:00 Status Updates – Execution Area Coords
Execution Area Ops/ Safety Area
Coordinator Update Coordinator
Times Reschedule Times
4:00 Re-schedule review – Ops Area
AM & PM Coordinators and Safety Coordinators AM & PM
1-Inlet – 3:00 1-Inlet – 4:00
2-Process – 3:10 2-Process – 4:15
3-Sulphur – 3:20 5:00 Issue shift reports to Area Coordinators
3-Sulphur – 4:30
4-Utilities – 3:30 4-Utilities – 4:45

6:00 Area Coordinator Handover



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

Desire
Personal Performance
Passion Excellence

Results Vision
Business Performance
Empowerment Excellence

Results



• 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 Liability
Performance
Human Excellence
Resource
Human Asset



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



• 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
• Only work on those activities that produce

High
the desired results with the least amount
of effort
• If energy, rather than effort, is

Effort
involved, such as when you perform a
satisfying personal or business activity, the

Low
impact is always high
Impact
• If effort, rather than energy, is
Low High

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)
Inspire
• Control
• Won‟t work with resources Performance
Encourage Excellence
• Inspire, encourage, recognize
Recognize



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



Turnaround Performance
Points to Ponder
• Performance Indicators
Operational &
Maintainability

Equipment
Reliability
Process 25%
Availability

Performance Indicators 50% 100%
• Process Availability = % Throughput
• Equipment Reliability = Cost
• Operate / Maintain =  Safety
 Quality
 Man-hours 75%
 Indirects
 Materials
 Schedule

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