Evaluation of the Plant Shutdown Process Workshop

Evaluation of the Plant Shutdown Process Workshop PDM Bas Broods 13-01-2010

Contents Opening Introduction PDM 11.50-11.55 Case 11.55-12.10 Workshop exercise Explanation 12.10-12.20 Exercise 12.20-12.50 Presentation outcomes 12.50-13.20 Close out 13.20-13.25

PDM Profile Professional consultant group in Western part of Europe who assists in raising the profitability of capital-intensive industries. Proven track record with major, international players in oil, gas & (petro)chemical business Over 250 professional employees Almost 40 years of experience Independent consultant company Key markets in energy, gas & oil, chemicals, pharmaceutics and steel Active in the Netherlands, Belgium, Germany, France, England, Eastern Europe and the Middle East

PDM Services Strategy Deployment Change & Implementation Management Project Management Consultancy (PMC) in Plant Shutdowns, Turnarounds, Reliability, Availability & Maintenance and Engineering

PDM Clients

Background Case Client profile Location: Belgium, Europe Industry: Chemical Number of employees: 8100 in 20 Country s Client desire Within continuous improvement client s desire was to improve their turnaround performance: for the planning as well as for the execution phase

STOPflow TM Case Organization Management & Control Scoping & Planning Scheduling Cost Management Embedded Risk Management Logistics Procurement & Contracting SHEQ Phase 0: Conceptual Blueprint and Organization Phase 1: Conceptual Design Phase 2: Preliminary Preparation Phase 3: Detailed Preparation Phase 4: Execution Phase 5: Close out

PDM STOPflow TM Methodology Case Methodology Framework Process Best Practices KPI & performance Maturity level Process steps

PDM STOPflow TM Methodology (Cont d) Case Working method Questionnaire & process analyses Gap analyses processes & building blocks Deliverables; i.e. Manuals, process compliance PDM TA Manual Preparation (Project Manual)

Delivery Process Case Phase 1 Analysis Phase 2 Design Phase 3 Implementation Inventory current situation Define improvement items Design: -Processes - Organization - Scoping - Planning - Scheduling -Management System -Organization -Quick wins Implementation: -Processes - Organization - Scoping - Planning - Scheduling -Management System -Organization

Results - Overall Outcome Evaluation Case Is (now) Was (then) Maturity level increased from: Adhoc/Repeatable to: Defined

Results - Shutdown Manual: Blueprint for future shutdowns SD management system SD organization and role descriptions Case Scenario 1- Matrix bestaand Shutdown stuurgroep SD-Manager Scheduler Cost controller Rapporteert aan:. Gives : Maintenance Manager Limburg Sites 2 DOEL VAN DE ROL Verantwoordelijk voor beheer van de shutdown scope plus tijdige en correcte oplevering van de werkvoorbereiding (WVB). De VC-er coördineert het werk van de wvb-ers en verzorgt de wvbrapportages. SHE- Coördinator Aankoop WVB Coördinator Constructie manager WVB Productie Uitvoerings- Coördinator y Werk- Voorbereider I Coördinator UBN, IBN: Werkvoorbereider Mechanisch Werkvoorbereider E Uitvoerings- Coördinator 1 Contractor a Uitvoerder 1 Uitvoerder z TITEL ROL Voorbereidingscoördinator 1 ROL IDENTIFICATIE Shutdown:. Periode: Definitie, voorbereiding, uitvoering en evaluatie van de Shutdown SD processes + RASCI 3 BELANGRIJKE RESULTAATGEBIEDEN Organisatie Verantwoordelijk voor de vorming van team werkvoorbereiders Dit betreft onder andere de volgende deelprocessen: Vorm een Werkvoorbereidings-team (R) Scoping Verantwoordelijk voor het opstellen van de beheren van de shutdown scope. Na bevriezing van de scope verantwoordelijk voor procesinrichting en beheer van scope wijzigingen. Dit betreft onder andere de volgende deelprocessen: Verzamelen beschikbare scope (R) Reviewen scopelijst (R) Bevriezen Scope lijst (R) Export naar Werkvoorbereiding systeem (R) Scope change verzoek indienen (R) Scope change verwerken (R)

Results - Overall Case Defined and implemented processes for organization, scoping, planning and scheduling Designed and implemented organization structure including roles / responsibilities and job descriptions Defined and implemented management system, including KPI structure and meeting / reporting structure Train the Trainer Program: employees, also of other sites, participated during the design and implementation phase in order to get familiar and involved with the new methods Established shutdown manual: blueprint for future shutdowns Turnaround duration time reduced from 26 days to 22 days ( - 15%)

Workshop Exercise Objective: Interactive session with all participants Determine most common area of weaknesses of current Turnaround performances and potential area for improvement

Workshop Exercise Methodology: Split group into sub-groups All participants determine maturity level of control aspects in PDM maturity level score format Determine 2 lowest score control aspects Discuss 2 lowest score control aspects in depth: Define common weaknesses + discuss potential improvements Indicate weaknesses and area for improvement in template issues Communicate outcome sub-groups to overall group Each sub-group to nominate a: Chairman Timekeeper Administrator Presenter

Expected Outcome: Filled in maturity level score format Organization Management & Control Scoping & Planning Scheduling Cost Management Embedded Risk Management Logistics Procurement & Contracting SHEQ Excellence Managed Defined Repeatable Adhoc

Expected Outcome: Filled in maturity level score format - example Organization Management & Control Scoping & Planning Scheduling Cost Management Embedded Risk Management Logistics Procurement & Contracting SHEQ Excellence Managed Defined Repeatable Adhoc 2 lowest scores

Expected Outcome: Filled in sheet issues Subgroup members: 2 Lowest scores on controls aspects: Common weaknesses: Potential improvements:

Expected Outcome: Filled in sheet issues - example Subgroup members: 2 Lowest score on Controls aspects: Common weaknesses: Potential improvements: Mr. J. Operations, Mrs. F. Procurement, Mr. R.B.Inspections, Mr. Janssens Organization Management & Control No clear view on actual progress during planning and execution phase Limited availability of required resources for planning activities No clear roles and responsibilities Limited synergy between operations & Maintenance Define clear KPI s based on objectives Define clear organization structure including roles and responsibilities Define and implement meeting and reporting structure

Workshop exercise Objective: Determine most common area of weaknesses of current Turnarounds performances and potential area for improvements Methodology: Split group into sub groups Nominate Chairman, Timekeeper, Administrator, Presenter All participants determine maturity level of control aspects in PDM maturity level score format Determine 2 lowest score control aspects Discuss 2 lowest score control aspects in depth Define common weaknesses + discuss potential improvements Indicate weaknesses and area for improvement in template Issues

Maturity Level Definitions Ad hoc Processes are undocumented and in a state of dynamic change, resulting in an ad hoc, uncontrolled and reactive TA planning and execution Repeatable Some processes are repeatable but undefined, possibly with consistent results Defined Standard processes established and subject to some degree of improvement over time, processes are in place and used to establish consistency of process performance Managed Defined process/methodologies are implemented. TA processes can effectively be managed and performed Excellence Focus is on continuous improving process performance through incremental and innovative

Results - Evaluation Case Objective Define / anchoring good practices Determine improvement items Methodology Maturity assessment + identification positive and improvement items Evaluation based on data analysis; actual versus planned