Shutdown Turnaround Optimization Process - A Practical Guide : simplebooklet.com

Shutdown Turnaround Optimization Process Table of Contents APPENDIX C: HANDOUTS ……………………………………………………………………………………………………………………………………………..143INTRODUCTION ................................................................................................................................................................. 5CHAPTER ONE: THE SHUTDOWN-TURNAROUND OPTIMIZATION PROCESS (S-TOP).......................................................... 11CHAPTER TWO: THE STRATEGY PHASE............................................................................................................................. 17CHAPTER THREE: THE WORK LIST PHASE ......................................................................................................................... 29CHAPTER FOUR: THE PLANNING PHASE ........................................................................................................................... 41CHAPTER FIVE: THE SCHEDULING PHASE ......................................................................................................................... 55CHAPTER SIX: THE EXECUTION PHASE.............................................................................................................................. 67CHAPTER SEVEN: THE CRITIQUE PHASE ........................................................................................................................... 75SUMMARY ...................................................................................................................................................................... 79EXERCISES ....................................................................................................................................................................... 81THE STRATEGY PHASE EXERCISES ..................................................................................................................................... 83 THE WOR KLIST PHASE EX ERCISES...................................................................................................................................... 93THE PLANNING REVIEW PHASE EXERCISES …………………………………………………………………………………………………………………101THE SCHEDULING PHASE EXERCISES................................................................................................................................ 110THE EXECUTION PHASE EXERCISES .................................................................................................................................. 129THE CLOSEOUT/CRITIQUE PHASE EXERC ISES .................................................................................................................. 131SUMMARY EXERCISES ........................................................................................................................................................ 133APPENDIX A: SHUTDOWN MEETING TEMPLATE ............................................................................................................ 135APPENDIX B: DEFINITIONS AND SYMBOLS ..................................................................................................................... 137

This book preview contains 74 pages

Page 4

Shutdown Turnaround Optimization Process Introduction About IDCON INC Our Company: IDCON is a consulting company that delivers rapid, sustainable, fully implemented improvements for businesses. Our focus is manufacturing and process industries including metals, mining, pulp and paper, chemicals, oil and utilities. Our Approach: At IDCON we partner with operations and maintenance. We get involved and deliver results. We work at all leadership levels. Therefore, sustainable shutdown improvement results come quickly. The result is an improved shutdown management process with significant cost savings and improved reliability. Our People: IDCON has a high-caliber team of senior operations, reliability and maintenance managers that come from a variety of management and consulting backgrounds. Our consultants have extensive experience in delivering performance improvements in industry. Short History: Christer Idhammar started as a consultant with IKO AB after eight years in the Swedish Merchant marines as a craftsperson, engineer and chief engineer. At IKO he was the group leader for maintenance management, and he was responsible for developing and implementing computerized maintenance systems with the first system running at Iggesund Paperboard in 1968. In 1972 he started Idhammar Konsult AB with his brother and three other engineers. At Idhammar Konsult AB (IKAB) he developed their Swedish and international training and consulting as well as the philosophy that is still evolving at IDCON, INC today. Additionally, he was the director for a ten-week maintenance management program in Sweden sponsored by the United Nations and other two-to- three-week regional programs held in numerous developing countries. He founded PBI Maintenance Management Inc with Jaakko Poyry, Finland and BE&K Birmingham, Alabama in 1985 (Poyry BEK Idhammar changed to IDCON, INC in 1988). Since 1988, IDCON, INC has been independently owned by Christer and Torbjörn Idhammar. IDCON has a worldwide presence with alliance partners located in Canada, Southern and Eastern Europe, Scandinavia, Asia, Russia and Australia. IDCON’s Mission: To help our clients improve overall reliability and lower manufacturing and maintenance costs through successful implementation of improved reliability and maintenance practices. Note: Our business is to help our clients improve reliability and maintenance, not other services or products. This also directly relates to our beliefs. Improved overall reliability (or manufacturing reliability or production reliability) drives down costs. Simply cutting costs is not sustainable and will not improve reliability. The priority is to focus on improvements that enhance overall reliability. Overall reliability includes operational (or process) reliability and equipment reliability. Having worked in nearly every type of manufacturing and processing industry throughout the world, IDCON’s expertise lies in equipment reliability and all of the necessary tasks that operations, maintenance, stores and engineering must perform to improve equipment reliability. 5

Page 5

IDCON INC | ©2021 IDCON Circle of Continuous Improvement Market and Production Plan: The market drives the plant’s production plan. Maintenance Planning and Scheduling: The maintenance Planning and Scheduling process is dependent upon the production plan. Operations and maintenance must work in a close partnership to make sure that the production plan and maintenance plan are well coordinated. Preventive Maintenance and Condition Monitoring: With regards to maintenance work, it is best if we can set up work processes to prevent repairs altogether. We can prevent failures, for example, with good lubrication, cleaning, correct installation, good operating practices and correct design of equipment. To enable Planning and Scheduling of maintenance work (in addition to coordination with the production plan) there must be good Condition Monitoring (inspections) of equipment. Condition Monitoring provides the lead time for Planning and Scheduling by finding failures before they develop into breakdowns. The work found by Condition Monitoring should be prioritized according to priority rules. Technical Database: There has to be a good technical database and stores to enable effective planning. The technical database helps the planner find material and technical specifications such as clearances and set points for equipment in order to develop job steps in the work order plan. Stores has to be well organized for part condition and accuracy. The Bill of Materials (part of technical database) must be complete and up to date in order to ensure that information is known, and correct parts are allocated to the job. Do: Once the job is planned and scheduled, the repair should be done with high quality. The craftsperson should record the history of what was done in the CMMS. Record: After the work is completed, the job history is recorded in the CMMS. Recording work order history will answer: What was the problem? What was done to repair the problem? How can it be prevented in the future? Continuous Improvements: The equipment history can be analyzed for continuous improvement actions through the Root Cause Problem Elimination (RCPE) process. The RCPE process analyzes history by looking at equipment and components with costly and repetitive repairs. Once the root cause of the costly and repetitive repairs is known, corrective actions can be planned and scheduled. Figure 1: IDCON's Circle of Continuous Improvement 6

Page 6

Shutdown Turnaround Optimization Process Circle of Despair: Of course, the circle of continuous improvement isn’t always followed. Break-in work happens because we react to an emergency (or perceived emergency) and subsequently the equipment is subject to poor-quality repairs causing us to return to the same job. Therefore, the circle of despair is often repeated over and over. To break the circle of despair, there must be Essential Care to prevent failures and Condition Monitoring to find failures early to eliminate or minimize emergency work. Make sure you understand the difference between tools, processes and systems. Definitions: Process: a series of actions or steps taken in order to achieve a particular end Tool: a device/software/template used to carry out a particular function within a process System: a holistic system of interacting or interdependent component parts forming a complex/intricate whole The Shutdown Turnaround Optimization Process (S-TOP) has 6 major phases to organize and prepare the shutdown. The six phases fit into the Circle of Continuous Improvement as shown below: strategy, worklist, planning, scheduling, execution, and critique. Figure 2: Circle of Continuous Improve. Tools used are commonly confused with processes and systems. Figure 3: Where the 6-phases of S-TOP fits into the IDCON Continuous Improvement Circle 7

Page 7

IDCON INC | ©2021 IDCON Beliefs If you ask someone what their beliefs are in terms of reliability and maintenance, you may or may not get a clear answer. IDCON has developed beliefs in reliability and maintenance over the years that are the foundation for improving overall production efficiency: 1. Cost reduction does not generate improved reliability. Improved reliability results in lower costs. 2. People cannot be more productive than the system they work in allows them to be. 3. It is an obligation of leadership to develop, communicate, and coach implementation of these processes. 4. First, decide the right things to do, then do them right. 5. The right people are an organization’s most vital asset. 6. Busy people are not productive unless they work on the right thing. Measuring “wrench time” cannot be the right thing to do. 7. People do not mind change, but do not like to be changed. 8. Basic maintenance processes must be in place before implementing more advanced tools. 9. Rapid and sustainable change does not exist in maintenance because the change process is “90%” about people and behaviors. 10. Operations, maintenance, engineering and stores must work in a partnership to reach excellence. 11. Lost production reports shall record “where” and “what,” then ask “why” to solve and eliminate problems. 12. Keep things simple. 13. The holistic system and its processes and elements can be supported by other tools. 14. Always explain “why,” “what” and “how.” 15. Execution is key to success. Reliability performance is measured as follows: Overall Production Efficiency (OPE) = Quality x Time x Performance (%) 8

Page 8

Shutdown Turnaround Optimization Process Each step of S-TOP has an outcome; see overall workflow above: • Strategic Phase: Identify timing and affected areas, shutdown business drivers, and review shutdown best practices. • Work List Phase: Final shutdown work list documented. • Planning Phase: Work order planning and preparation. • Schedule Phase: Final shutdown schedule developed and issued. • Execution Phase: Work is complete according to the plan and schedule. Record feedback on what was done. • Critique Phase: Document shutdown performance indicators and lessons-learned report. Identify initial work list for the next shutdown. S-TOP provides best practice examples of: • Countdown schedules also known as T-minus schedule • Policies and procedures • Workflows • Organizational structure • Roles and responsibilities • Meeting agendas • Checklists and many other helpful tools Figure 4: Overall workflow for Shutdown Turnaround Optimization Process Legend:Minor Shutdown < 24 hrs.Major Shutdown > 24 hrs.Planned Opportunity Maintenance < 6 hrs.Shu tdown Strategy 3-5 ye arsCountdown Schedule for Current Shutdown Event WorklistPha sePlanningPha seSchedul ingPha seCritiquePha seApp rovedShu tdownWorklistJobs planscompletedfor SDworkFinalShu tdownSchedul eShu tdownReportPrepare forNextShutdownExecu tionPha seShu tdowncompletedStrategyPha seCurrent Best Practices (CBP) Shutdown Management Per miles toneschedulePer miles toneschedulePer miles toneschedulePer miles toneschedulePer miles toneschedulePer miles toneschedulePlantMaintenanceor equipmentprojectsrequiringShu tdownShu tdownstrategyapproved9

Page 9

IDCON INC | ©2021 Figure 5: IDCON Current Shutdown/Turnaround Best Practice Assessment Score per Plant. IDCON provides shutdown support on site by assessing the application of current best practices of shutdown management. The purpose is to identify and prioritize gaps versus shutdown current best practices and then develop an implementation plan and support. Shutdown Improvement Opportunities Many organizations do not know their shutdown drivers or even the reasons that determine the timing and duration of the shutdown. The shutdown drivers could be due to equipment overhauls, corrective maintenance, PM inspections, regulatory vessel internal inspections, heat exchanger fouling, debottlenecking opportunity, new technology, boiler inspections, etc. Many shutdowns end up with budget overruns, not starting up on time, and/or required work was not completed as expected. Another important factor to consider when justifying the implementation and improved shutdown management process is safety. According to a study by University of Tennessee’s Reliability and Maintainability Center, reactive maintenance is correlated to the OSHA recordable incident rate. Improving the shutdown preparation decreases the risk for accidents. Figure 6: Ref. 2015 study of over 100 companies by the University of Tennessee Reliability and Maintenance Center. 10

Page 10

Shutdown Turnaround Optimization Process Chapter One: The Shutdown-Turnaround Optimization Process (S-TOP) This book was written to inform the reader on how to best manage shutdowns and outages in process industries, manufacturing, utilities, and facilities. Work management planning and scheduling is one of the cornerstones to manage reliability and maintenance in a successful operation. The main goal is to create a playbook and policy for managing shutdowns by developing a countdown schedule. The countdown schedule will prepare different departments and leave no stone unturned. What is the Shutdown-Turnaround Optimization Process (S-TOP)? Shutdown-Turnaround Optimization Process (S-TOP) Terminology A minor shutdown is defined as being less than 24 hours in duration. Minor shutdowns are: • More frequent • Less focused • Less expensive • May have more lost production in some cases • Minor shutdowns normally have less visibility, but the number of smaller losses and inefficiencies can add up to more lost production over time. A major shutdown is defined as being more than 24 hours in duration. Major shutdowns are: • Less frequent (normally annual) • More focused • More expensive Due to the high focus on major shutdowns, they are (in our experience) better managed. Major shutdowns can also cause interruptions in product output and the overall supply chain, so the impact can be very high. By measuring all production losses caused by the shutdowns we can decide on where to improve the process. The Shutdown-Turnaround Optimization Process (S-TOP) is comprised of six phases to manage shutdowns. The S-TOP process uses a countdown schedule to identify specific tasks for each phase and includes timing and responsibility to efficiently manage shutdowns. The six phases are explained in Figure 7 on the following page. 11

Page 11

IDCON INC | ©2021 Figure 7: Overview of S-TOP Focus Each phase of the shutdown has its own objectives to make sure the phase is well managed. • Strategy: Review the shutdown business drivers and why a shutdown is required. • Work List: Finalize the scope of the shutdown and only include work that supports the overall business and reliability goals. This phase is based on selecting and executing the right work which supports reliability. Work selection is based on risk which is defined as probability times impact. Right work is here defined as “Risk-Based Work Selection.” • Planning: Scope out the work and develop detailed job plans. • Scheduling: Communicate, coordinate and determine the timing of all work for efficient execution. • Execution: Manage scheduled work and quickly adjust to any changes. • Critique: Learn from the experience to improve the next shutdown. * An independent cold-eye review is an audit by an independent, objective expert who is not associated with the shutdown 12

Page 12

Shutdown Turnaround Optimization Process Results The desired result of an organized S-TOP process is to perform the right work and to optimize shutdown duration and time between shutdowns. The effective execution of the S-TOP process will maximize reliability by merging people, processes, and assets into a well-oiled and highly efficient machine. The timing of the six phases in the countdown schedule is determined by the cycle time of the shutdown. The countdown schedule below shows the timing of each phase to have adequate time to prepare and ramp up for the shutdown execution. Figure 8: Example of countdown schedule timing for minor and major. S-TOP provides improved shutdown management and execution through training and implementing best practices in work management planning and scheduling. The main benefits are efficient execution, improved safety and the right work being done on time and within the budget. An example of typical results of the S-TOP implementation includes the following: Work list review with 20-30% of the work cancelled and/or 30-40% reduction in scope, and improved planning and scheduling efficiency reducing downtime between 2-14 days. There are four ways that IDCON can improve a plant’s shutdown performance: 1. Training 2. Coaching 3. Developing work management processes 4. Implementing best practices 13

Page 13

IDCON INC | ©2021 S-TOP Vision, Mission and Goals Vision: Manage equipment downtime using resources efficiently. Mission: Operations, maintenance and engineering apply shutdown best practices as a team. Goal: The S-TOP process improves Overall Operating Efficiency (OEE) by effectively identifying, prioritizing, planning, scheduling, executing and documenting shutdown work. The plant’s organization should drive unscheduled downtime to zero. The expectation is that shutdowns and start-ups occur as planned and scheduled. The guiding principles for shutdown management are: • The shutdown organization members have the same principals for how to perform successful shutdowns. • Operations, maintenance, and engineering develop procedures and practices that promote teamwork. • Support organizations are fully integrated into the process, such as safety, predictive maintenance, stores, purchasing and contractors. • The leadership team’s acceptance of the S-TOP process and holding their organization accountable by implementing KPIs and performance management. • The leadership team provides the necessary resources to execute the shutdown. • All departments work together and share resources as needed. Relationship Between Shutdown Interval and Availability The relation between plant availability and down time duration for 10 days vs. 20 days is 97.3% vs. 94.5%. What is a 2.7% improvement in availability worth for a plant that is running 24/7? Figure 9: Relation between interval and availability. 14

Page 14

Page 15

Shutdown Turnaround Optimization Process Chapter Two: The Strategy Phase What is the Strategy Phase? The strategy phase is the step to organize and optimize shutdown effectiveness, which requires coordination and communication among departments. Long before a major outage is executed, the strategy for the outage must be defined, documented and communicated. Questions need to be addressed early on in the strategy phase and typically begin with the initial strategy meeting. Questions are, but not limited to, the following: • How is compliance to the existing 3-5-year schedule? • Is the strategy to be shorter in duration or to reduce cost? • What are the business demands going to be during the outage? • What is the resourcing strategy (internal/external)? • What is the expected demand for outside resources going to be? • Do we need to schedule around other projects in the area or region? • Should we benchmark the performance compared to pacesetters*? • How often should we shut down the plant? • When and for how long should we shut down the plant? • What are the milestones? The ultimate goal is to be as efficient as possible, which includes doing only the work that is needed to maintain reliability. Earlier we discussed that an annual shutdown may have a 12-month interval. In that case, the strategic phase should start 12 months before the actual shutdown date. Figure 11: S-TOP Strategic Phase Workflow. This is an example of IDCON's optimized workflow. For a description of each of the symbols on the workflow, refer to the dictionary in Appendix B. Pacesetter: A person or organization viewed as taking the lead or setting standards of highest performance for others. 17

Page 16

IDCON INC | ©2021 Shutdown Drivers Many times, when we are at client sites, we will hear them say: “We have always done it this way.” “We know the jobs already.” “We are always on time.” “The head office or leadership group decides when and how long to shut down.” “No improvements are needed.” Our experience tells us that shutdown frequency and duration are traditionally set in stone. They are both determined on a company level while the plants do not have input on the decisions. What impact does this have on the success and performance of the shutdown? We’ve observed during client shutdown/turnarounds that: • Execution is adjusted to the predetermined duration; there is no incentive to do it in less time. • Organizations ask, “why do we need detailed plans when we know what we have to do?” • Delays are expected and are considered normal. Typical Shutdown Maintenance Facts: • The shutdown work list continues to grow right up to and into execution. Examples of way to manage the scope: o Process for screening work orders. o Set cutoff date for adding work to the shutdown list. o Introduce a formal process to approve additional work after the cutoff date or during execution. o Evaluate if the job can be done on the run instead of doing it during the shutdown. • Scope creep leads to inadequate planning and scheduling and causes work efficiency to go down. According to an IDCON study, shutdown work usually costs 2-3 times more than if it is done on the run. • It is the responsibility of the plant leadership team to determine the overall shutdown drivers and strategy. TIP: When challenging existing shutdown practices, answer the following questions to determine the drivers: o What are the reasons for the timing and duration? o Can shutdown requirements be mitigated with other approaches? o What are the market and seasonal requirements? o What are the interactions with other units or other plants in the organization? o What are other outside influences (contractor availability, weather, holidays, deer hunting season)? 18

Page 17

Shutdown Turnaround Optimization Process Chapter Three: The Work List Phase What is the Work List Phase? The work list phase is the second phase of the S-TOP process when the detailed worklist is decided based on risk-based work selection. The work list defines the shutdown scope of work. The work list phase focuses on: • Selecting the right work to be included in the shutdown • Prioritization of jobs in the work list Work order initiation and screening are essential for an effective shutdown. Work orders that are not needed congest the shutdown backlog and lack of proper screening consumes planning resources. This phase completed in time allows for proper planning. In the following example for an annual shutdown, the work list phase starts nine months prior to execution. The work list phase is the basis for determining shutdown duration, cost, resource requirements and schedule development. The initial work list is developed from the shutdown work order backlog. Other forms of work initiation may come from: operations, quality, essential care and condition monitoring, safety, environmental, engineering and capital projects which may not be in the CMMS. Figure 21: Example of countdown schedule. 29

Page 18

Shutdown Turnaround Optimization Process Why do the Work List Phase? The purpose is to select the right work to: • Identify work that will sustain or increase production reliability • Identify work that can be deferred • Identify work that can be moved to on the run • Identify work that can be done before or after the shutdown • Identify items with long lead times • Reduce shutdown work scope • Eliminate non-value adding work • Select work by risk-based decisions resulting in accurate prioritization of work • Review Fixed Time Maintenance work o Fixed Time Maintenance (See Definitions in Appendix B) may be a legacy from the past and based on tradition. Review these jobs to identify work that can be taken off the work list and instead use Condition Monitoring on the run. The work list can be reduced by effective planning of shutdown work order tasks that can be done before or after the shutdown. Example work order: Install “tie-in” with a shut-off valve in cooling water pipe. This consists of three tasks, two of which can be performed outside of the shutdown. On-the-run Shutdown Work Order Task # 1: Weld flange to saddle. The valve, gaskets, bolts, nuts are bagged, tagged and staged in shutdown staging area. Remove the insulation. During Shutdown Shutdown Work Order Task #2: Cut saddle and weld-out and mount the valve. After Shutdown Shutdown Work Order Task #3: Reinstall the insulation. It is important to note that work is NOT randomly cut, but the right work is selected using a risk-based process. Figure 23: Welding a tie-in. 31

Page 19

Shutdown Turnaround Optimization Process Chapter Four: The Planning Phase The planning phase is an integral part of shutdown management; this is when shutdown work is planned in detail. Some jobs may have a standard job plans to be used. Detailed work order planning will drive shutdown cost, quality and performance. The expected results are: • Tradespeople can efficiently complete the work as described to specification without delay and with minimal instructions to reduce waiting and/or eliminate wasted time. • Optimized down time; ways to reduce the shutdown duration (i.e., challenge the work plans to identify improvements). • Optimized and coordinated use of resources. • Developed mitigation plans. • Contracted jobs are planned. • Resource requirements are identified. • Safety issues are identified and addressed. • Developed logistics and communication plans. • Job plans include operation requirements. • Job plans include quality control. • Existing Standard Job Plans are improved, and new plans are developed. • Long lead time items are procured. • Contractor coordination requirements are identified. What is Work Planning? Definitions: Planning describes WHAT and HOW. A planned job is one for which: • all materials, information, tools and equipment are identified • tasks have been described • an estimate has been prepared • the work can be communicated in detail to the tradespeople • tradespeople can complete the work as described to the required standard and without delay The product of planning is a work order package. The job plan will communicate what needs to be done, skills required, and how to perform the work. Require contingency plans where the scope of the job cannot be finalized until the equipment has been opened. For example, something as simple as a seized bolt can delay a job, so it should be considered along with all the other details. After planning is completed, the Work Order Package is assembled. The package provides the tradesperson with all the information that is needed to perform the work. 41

Page 20

IDCON INC | ©2021 Best practice is for the maintenance manager or designated person to review and approve job plans for critical work before they will be scheduled. See IDCON’s best practice workflow in Figure 31. Planning Template The planning template is a document that assists the planner in scoping all information required to efficiently plan the work. IDCON’s planning template (see pages 103-107 ) includes work order information, safety information, detailed job tasks and timing, special tools and equipment needed, operations preparations, parts, and materials list. The planning template also includes a task sequence section to identify task coordination of resources and skills. How to do the Planning Phase Activities that are typically completed in the planning phase are: History • Review lessons learned from prior shutdowns Planning • Identify special trades/department coordination requirements • Conduct Kaizen events to improve job plans and execution • Develop a network diagram or brown paper exercise • Prepare requisitions for items with long lead times • Document logistics plans • Identify operations shutdown/start-up maintenance requirements • Monitor shutdown scope changes to manage the scope and budget • Ensure that the balance of plant requirements is identified Contractors • Prepare requisitions and detailed scope of work for contractors • Walk downs with contractors, crew and operations • Identify contractor coordinators Policies Enforce cutoff date and add-on policy Scheduling and Execution Issues Identify critical path work CAPEX (Capital Expenditure) and Engineering Projects Planning should include all capital and engineering projects. It is essential that project work is identified in time to allow time for proper planning. Project work not properly planned leads to increased wasted and waiting time, poor coordination, high cost, and inadequate work performance. Project delays are common for poorly planned projects. Definition: A 'brown paper' exercise uses a large-scale visual format to map a process. Definition: Balance of plant equipment normally refers to utility systems that support all process areas not just the area being shut down. Examples: water, steam, air, ventilation, electricity, chilled water, etc. 44

Page 21

Shutdown Turnaround Optimization Process Results of the Planning Phase In a best practice process, all jobs have a work order package and have been reviewed for quality to meet the work order planning guide (SD3 HO9). All jobs have been walked down and critical path work has been identified. Cost and hour estimates have been reviewed for accuracy. Contractor jobs have been planned according to the job planning standard. The outcome of the planning phase: • Jobs have been properly planned • There is efficient allocation of trades and resources • Detailed job tasks are documented with duration as input for scheduling • Contingency plan is in place • Critical plans have been reviewed by management • Requests for quotations have been issued for parts with long lead times and contractors Figure 44: Reactor tank with agitator and drive. Example of a job where there is a requirement to have a contingency plan: • A shutdown work order to inspect and repair the heat exchanger for leaks, and to inspect the agitator for wear and damage in a reactor tank. • This tank is not available for maintenance during operation. • The reactor tank is required to run until next shutdown. Example of contingency: • Spare heat exchanger or have contractor ready to repair as needed according to standard job plan. • Spare blades and parts for the agitator, standard job plan and resources are available in case the agitator needs to be removed out of the reactor. • Coded vessel welding requirements verified. 53

Page 22

Shutdown Turnaround Optimization Process Chapter Five: The Scheduling Phase What is a Scheduling Phase? Scheduling is defined as WHO is going to do the work and WHEN it is going to be done. A scheduled job is one that: • Has been included in a weekly, daily, shutdown or another formal schedule • Has a defined starting and finishing time • Required resources including personnel (by name), special equipment, tools and supporting services are assigned • Resource coordination and restraints are identified to minimize total time and cost In the scheduling phase, each department or area will develop their schedules. These schedules are integrated into a master schedule incorporating all areas and departments affected by the shutdown. The integrated schedule is normally in the form of a Gantt Chart. The master schedule includes the critical path and identifies task interdependencies. Work outside the critical path is scheduled to avoid impacting the critical path. Figure 45: Area shutdown schedules integrated into a master schedule Areas of focus for the scheduling phase: • Critical path activities • Staffing and equipment resource plans • Integrate schedules • Develop detailed area/function schedules • Identify potential scheduling conflicts • Capacity planning Definition: Capacity planning = matching available resource with required resources 55

Page 23

IDCON INC | ©2021 Work Order Cutoff Date Cutoff time is defined as the last day when any new work can be added to the shutdown. An add-on policy should be in place and should include written approval from the operations and maintenance manager. The use of a cutoff time policy is a way to manage shutdown scope creep and avoid adding work late that is not planned and scheduled. The cutoff time should provide a reasonable opportunity for work orders to be properly planned and scheduled. Best practice is to have at least two months of cutoff time before an annual shutdown. Figure 47: Graphical depiction of cutoff time. When work is added after the cut-off date, it may be difficult to manage the shutdown based on: • poorly planned work due to lack of time for planning • reduced quality of schedules as a result of inadequate planning estimates • wasted resource time due to job plan accuracy if not planned in detail The form in Figure 48 is an example of a request for a scope of work change for adding work after the cut-off date. 58

Page 24

Shutdown Turnaround Optimization Process Chapter Six: The Execution Phase The execution phase is the period when the shutdown starts, and all work is performed as scheduled and then completed. Execution performance is a measurement of how efficiently the previous S-TOP phases have been performed, including Strategy, Work List and Planning and Scheduling. The Execution Phase focuses on: • Equipment shutdown and preparation • Work order package distribution • Equipment isolation such as valving, blinding, and LOTO • Trade/contractor assignments • Execution of scheduled work; follow up on “field” progress • Execution of contracted work • Communication between work groups • Coordination of limited resources • Meetings are conducted at all levels • Work order updates, department/area progress meetings • Communication of all shutdown schedule progress and delays • Adjustment of trade resources as required • Documentation of work done The results should be: • Shutdown is started and completed on time • Production start-up was resumed as scheduled • Budget is in control • Schedule compliance is equal or better than 95% • Safety performance equals zero accidents • Zero environmental events • Progress meetings are held as planned 67

Page 25

Shutdown Turnaround Optimization Process Chapter Seven: The Critique Phase What is the Critique Phase? In this phase, the idea is to focus on continuous learning and improvements. Simply put, the critique phase is an assessment and improvement process. The critique phase includes all stakeholders and is an evaluation of: • Safety performance • Shutdown Key Performance Indicators • Budget and timing adherence • Work order package management • Job planning quality • Labor utilization • Material/parts allocation • Contractor utilization • Communication effectiveness • Scheduling practices • Work performance • Work documentation and feedback • Add-on/scope growth results • Deferred work management • Document lessons learned and develop action plans Figure 61: Area Outage WO Progress. 75

Page 26

IDCON INC | ©2021 Contractor Evaluation Contractors are evaluated immediately after the shutdown by the stakeholders involved and feedback is provided to them. See Contractor Evaluation form SD6 HO12 in Appendix C. Evaluation can be as simple as: • Excellent • Needs improvement • Needs extensive training and coaching • Will not be used again Shutdown Evaluations and KPIs The shutdown feedback can be collected based on individual score sheets sent out to the participants an example is found in Appendix C (SD6 HO8). IDCON’s Outage Critique Form can be used to develop an overall KPI for the shutdown process. Get the review team and management team in the room and get consensus of the final score in the critique form. The first page of the Outage Critique Form has a summary for the shutdown like actual down time, planned down time, budget forecast, actual cost, etc. The next section documents reasons for delays. The next three pages show statements to be scored from 1 through 5 where: 1 = poor and 5 = excellent performance. At the bottom of the form, there will be an aggregate score. A 100% score will show a perfect shutdown. We set a score target of 90% to be the challenging and best practice target. Rule of thumb is >80% good, and >90% excellent. (See Appendix C: Handouts Outage Critique Form SD6 HO9) Figure 62: Case Study 1: Before S-TOP the Goal is >90%. Trending of Shutdown Score - Minor Shutdowns at a paper mill. 78

Page 27

Shutdown Turnaround Optimization Process Exercises Setting the scene for exercises in shutdown management: Pulson's Fulminizing Inc operates six plants throughout the country of Zambonia. You are the shutdown coordinator at the Haktaramea Plant. The Hakataramea plant is about 40 miles north of the capital and produces 75 tpd of pure Fulminite through the reaction of methanol with salt. Fulminite is a key ingredient in the manufacture of Zogronite and other popular insulating materials. The product formula is varied slightly for different customers. The plant operates 24 hours per day, 7 days per week and takes a 6-hour shutdown, every 3 weeks to replenish the secret fulminizing catalyst and to clean the salt gromulizers. There is usually an annual plant outage to service the steam system. The plant prides itself on its maintenance; it has a comprehensive preventive maintenance program, a well-managed maintenance information system and a skilled workforce. You are planning the next annual shutdown. 81

Page 28

Page 29

Page 30

Page 31

Shutdown Turnaround Optimization Process The Execution Phase Exercises Exercise 17: Shutdown Execution Update Meeting Scenario: You are the Utility Manager at Pulson’s Fulminizing Inc. and have been charged to oversee the shutdown execution of the low-pressure boiler system. During the update meeting at 12:00 PM you have been told that the boiler inspection shows damage/cracked firetubes in boiler No. 2. The Utility Maintenance Manager tells you that the cracks were found this morning. Information Provided: You start talking to the Maintenance Supervisor and he is telling you that 20% of the tubes in the boiler are plugged permanently due to cracking since previous shutdowns. There is no documentation or work order history of the tube problem. The boiler will not have enough capacity to support manufacturing if there is more than 20% of the tubes plugged. Your Task: Decide how you will handle this scenario: 1. What will be your decisions and plan to manage the short-term situation? 2. What will be your long-term solution? 3. Who will be informed of the situation? 4. Will this delay the start-up of the plant? 5. What should the agenda be for the Shutdown Execution Update Meeting going forward? 129

Page 32

IDCON INC | ©2021 Commonly Used Terms and Definitions Area Shutdown: A scheduled or unscheduled shutdown of an operating plant area. It does not include the shutdown of a single item of process equipment if the production throughput can be maintained. Backlog, planning: The amount of time, expressed in days or weeks, which is required for the available craftspeople to complete all work orders which have been approved, prioritized and against which commitments are being made. Backlog, ready-to-schedule: The amount of time, expressed in days or weeks, which is required for the available craftspeople to complete all work orders for which all materials, tools, information and equipment is available and on hand. Backlog, shutdown: The number of effort-hours required to complete all the work on an approved shutdown list Backlog, total: The amount of time, expressed in days or weeks, which is required for the available craftspeople to complete all approved work orders. Break-in work: Emergency work plus urgent work (see definitions) Breakdown: An unplanned event which prevents an item of equipment from performing its required function. This could be a catastrophic failure, or it could be the result of excessive wear. For example, if a hydraulic pump is required to produce a flow of 20 gpm at a pressure of 1000 psig, then if it can produce only 19 gpm it has suffered a breakdown. Brown Paper Exercise: A large-scale format to map an existing business process, with an emphasis on being 'rough and ready' rather than a precise, neat and tidy document. In the past done on a brown paper taped to the wall. Business Driver: Business drivers are the key inputs and activities that drive the operational and financial results of a business. Business process: A way of working that is described in a document, or documents, which explains in detail all the steps required to carry out and control the preparation for, execution and follow-up for any activity which adds value in an organization Capacity Planning: The objective of maintenance capacity planning is to minimize the total cost of labor, subcontracting, and delay (backlogging). Child work order: A work order describing one part of a larger job, and which is subsidiary to a "parent" work order CMMS See "Computerized maintenance management system" Component: a) A major component of an item of equipment. E.g. if the equipment is a pump, motor, coupling and base assembly, the pump, motor and coupling are each "components". b) A part of a larger assembly. E.g. if the assembly is a pump, then the rotating assembly and the impeller are components. For the rotating assembly, the bearings, shaft, housing and fasteners are components Components have a catalog number, and its name describes what it IS, not what it DOES. (See "equipment"). Also referred to as "parts" or "spare parts" and excludes "supplies" 138

Page 33

Plant Shutdown Business DriversSD1 HO10(Complete for all units currently scheduled for major SD in June, 2012) C5 Crude, H1 Hydrogen, H3 Hydrogen, C6 Dist. Fract., V3 Vacuum, D2 Hydrotreator, Sulfur Plt., Amine Unit, DC1 CokerMechanical Integrity >>> Process Leader - John Doe Required Critical Equipment Current State Remaining Life Failure Risk Mitigation Long-Term Long-Term Shut down Driver-Description Mech Condition Corrosion Rate Mechanism Insp./Opns Repair Repair Req'd Monitoring TimingHeater-Convective 0.490 in 2-3yrs chloride stress infrared Upgrade metallurgy Jan 2018 YesTubes tube wall corrosion.005 in/yr. monthly Regulatory (safety/environmental) >>>Process Leader - John Doe Required Critical Equipment Current State Remaining Life Failure Risk Mitigation Long-Term Long-Term Shut down Driver-Description Mech Condition Corrosion Rate Mechanism Insp./Opns Repair Repair Req'd Monitoring TimingEnvironmental Gasoline excessive emissions exceed emissions Meets Safety StandardsJan 2018 YesSafety Shutdowns Manual Shutdowns Safety RiskOperations Integrity >>> Process Leader - BTL's/Process Engineers Required Criti cal Pr ocess Equi p Current State Opns Revenue/ Opns Risk Mitigation Long-Term Long-Term Shut downDriver-Description Ops unit Constraint Prod Quality Loss Failure Insp./Opns Solution Solution Req'd Giveaway Mechanism Monitoring TimingSpecial SOP'sOperating ParametersCatalyst LifeLimiting unit feed rate $/yr. Failed Tray Twr operating Retray twr Jun-12 YesFractionator by 5MBD Support ring parametersTwr performance collapsed traysRevenue Generation >>> Process Leader - John DoeTechnology ProjectsRevenue Project Current State Opns Revenue/ Project Basis Other low/no Long-Term Recommended ShutdownDriver-Description Condition Prod Quality Loss Incentive capital Investment Long-Term Req'd Ops unit Constraint Return solutions? Solution Solution(min 50:1) Timing/PaybackKBC PIP ProjectsOverhead Design $/yr. Debottlenecking hot tap/bypass Replace condensers Jun-12 Nocondensers Undersized capacity with improved design 1.5yrsProcess Unit - V3AR150

Page 34

SD4 HO7 ©2015 IDCON INC 67 Work Scope Change Process • Supervisor and Craft Recognize Additional Work Required, or discovered as “Out Of Scope” for this WO • Supervisor communicates scope change, impact on shutdown duration, equipment / process reliability impact and special resources needed to Shutdown manager. • Supervisor Completes “Work Scope Change” Form and submits to Shutdown Manager • Shutdown manager makes Determination / Agrees on Doing the Work Now, later or not at all – New Operation on Existing WO for Future (by planner) – History – Record on WO That Additional Scope Was Undertaken (by Supervisor and Planner) • Deferred – Goes Through Normal Planning and Scheduling Process E13 E14 E15 E18 E16 E17 168

Page 35

SD6 HO2 Procedure: Shutdown Critique Meeting Approval: Approval Date: Author: Creation Date: Revision Number: Revision Date: Scope: This procedure defines the process that will be followed for preparation and conducting the T+7 Shutdown Meeting General: Meeting time notifications will be identified and communicated by the shutdown manager. It is expected that attendees be prepared and attend the full duration of the meeting. If a regularly scheduled attendee cannot participate in the meeting a designee for that attendee will be expected to attend. Reference: Shutdown Management Model Procedure: Time: Within 7 days of startup Location: Triad Conference Room Duration: Approximately 1 hour Chairman: Shutdown Manager Agenda: 1. Identify safety issues 2. Communicate positive results of the shutdown 3. Communicate key performance indicator results 4. Review work order job plan quality 5. Identify manpower utilization effectiveness 6. Identify parts / material issues 7. Identify contractor / vendor utilization 8. Identify scheduling delays and coordination 9. Identify improvement opportunities for future shutdowns 10. Identify overall shutdown performance 11. Identify and assign follow-up actions and responsibilities 12. Identify start-up issues Attendees: • Team Leader • Gatekeeper (PA) • Shutdown Manager Assistant • E & I Supervisor • Contractor Representative • Material Coordinator • Planner /Scheduler- Mechanical • Planner/Scheduler- E & I • Mechanical Maintenance Lead • Mechanical Maintenance Supervisor • Engineering Representative Preparation: • Review shutdown update meeting results • Evaluate actual work done during the shutdown • Review start-up issues Output • Shutdown critique report including key performance indicators • Documented follow-up actions and primary person responsible • Improvement opportunities identified for future shutdowns KPIs: • Attendance (from scheduled start to finish of meeting) • Percentage of attendees prepared • Percentage of agenda items covered and addressed • Meeting output accomplished 173

Shutdown Turnaround Optimization Process - A Practical Guide

Page 1

Page 2

Page 3