the perfect st orm presentation ej lister

Navigating the Perfect STOrm

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Presented by Ej Lister

http://www.stonavigator.com/


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The Perfect STOrm

The Perfect STOrm in nature is a weather phenomenon where three systems converge on each other over the ocean to create havoc, making it nearly impossible for ocean-going vessels to navigate.

Since our primary focus is on navigating complex, risky and expensive projects, it’s only fitting that we use this concept to demonstrate how to avoid, or manage The Perfect STOrm when it arises.

The Perfect STOrm cannot be managed solely by Technology and People. A Methodology must be established as a guide, which is the primary key to executing a successful STO project, no matter what the conditions are.



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What makes The Perfect STOrm on a Shutdown, Turnaround or Outage?

Many will tell you that it’s a lack of planning; or poor weather conditions; or incompetent contractors, to name a few. But the truth is, there are 3 major forces that come together to create the perfect STOrm, more than any other on a Shutdown, Turnaround or Outage project:

• Scope Creep• Work approved after the Workscope/Budget Cut-off Date

• Discovery Work• Work found when assets have been opened for inspection or overhaul

• Rework• Work created from non-conformance to QA/QC standards



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Scope Creep

• Scope Creep is work approved after the Worklist/Budget Cut-off Date and before Feed-out

• Scope Creep is a result of:• Maintenance requirements (unavoidable since the process unit is

operational up to Feed-out)• A lack of a RAMP (Reliability Asset Management Program) Team using a

formal Risk/Cost Benefit Analysis Program• Scope Creep can be avoided by:

• Establishing a RAMP Team and using a formal Risk/Cost Benefit Analysis Program

• Accepting that Outage Work is an OPEX or CAPEX (project) expense



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Discovery Work

• Discovery Work is when additional Activities or longer durations are added to an existing Work Order Task

• Discovery Work can be expensive, but it should not affect the scheduled Feed-in date

• Discovery Work is a result of:• Poor planning or estimating• Lack of history• Challenging shutdown plans• Day-to-day operation

• Discovery Work can be reduced by:• Strategic ‘what-if’ planning• Pre-shutdown scanning



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Rework

• Rework is costly, and in some cases it can delay start-up• Rework is a result of:

• Poor communication• Time constraints• Incompetent workers• Incorrect material specifications (Quality Assurance)• Insufficient information/instructions• Lack of Quality Control

• Rework can be avoided by:• Training workers• Establishing QA/QC strategies prior to procurement and contracting• Creating effective ITP’s (Inspection & Test Plans)• Creating detailed Planned Job Packages (PJP’s)• Implementing a Flange-Management Strategy



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Definitions

Establishing standard industry terminology will help to make sharing knowledge more beneficial:

• Shutdown (STO budget)• Non-regulatory, process integrity (molecular process systems)

• Turnaround (STO budget)• Regulatory, asset integrity (piping, pressure vessels, PSV’s, etc.)

• Outage (OPEX / CAPEX budget)• Maintenance/Project Work Orders requiring systems or equipment to

be off-line• Maintenance (OPEX budget)

• Maintenance Work Orders that do not require systems or equipment to be off-line



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The Destination

Many will tell you that the destination (goal) of a STO project is to execute it On-time and On-budget; that’s not as impressive as it sounds. A STO project is scheduled in order to support these three manufacturing principles:

• High Process Availability• Operating at nameplate design with quality, conforming product to

meet customers’ needs• High Equipment Reliability

• Ensuring equipment can meet its intended purpose when needed• Low Risk/Cost

• Managing risk (effectiveness) and controlling costs (efficiency)



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Process Availability

100% Process Availability is only achievable if everything is spared; and at a high cost, which makes it impractical. The balance between required process availability losses and equipment reliability at the lowest risk/cost requires the adaptation of a Reliability Asset Management Program Team made up of:

• Operations,• Maintenance, and• Technical

The RAMP Team is accountable for High Process Availability and High Equipment Reliability at the Lowest Risk/Cost



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Ability to Influence STO Performance



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Effective and Efficient

The RAMP Team is responsible for Work Scope, Budget and Strategic Planning (Effective), while the STO Project Controls Team is responsible for Planning, Scheduling and Execution (Efficiency)

• Scope Creep is an Effective opportunity• Discovery Work is an Effective and Efficiency opportunity• Rework is an Efficiency opportunity

Strategic Planning Phase

Planning & Scheduling PhaseExecution Phase Closure Phase



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Key Performance Indicators (KPI’s)

The RAMP Team will establish the KPI’s and their related Targets. Navigating the STO project will be aimed at achieving the KPI Targets.

Key Performance Indicators

Key Performance Targets Phase

Budget / Workscope Based on Risk/Cost Benefit Strategic Planning

Duration Based on Shutdown/Start-up and Longest-path Planning and Scheduling

Safety / Environment Zero Incidents Execution

Quality Zero rework, zero leaks Execution

Direct Wrench-time 55% Execution



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The potential for a Perfect STOrm to arise on a Shutdown, Turnaround or Outage is always a concern. Often you cannot avoid it. But you can learn to navigate around, or through it by establishing these 3 high-performance principles:

• Methodology• Navigational road map

• Technology• Navigational aids

• People• Navigators



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Methodology



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Methodology

A navigational road map [business process] designed to convert data input into a product or service output, efficiently. The methodology is supported by tools, forms, standards, policies, procedures [best-practices], guidelines, templates, checklists, controls, tracking, and KPI dashboards.



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Methodology (Navigational Road Map)



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Strategic Planning

Strategic Planning ensures that each Stakeholder [Discipline] contributes to the achievement of the established KPI Targets for the Execution Phase: Safety, Quality and Worker Efficiency.

Strategic Planning is accomplished by using a standard template in conjunction with a Strategy Workshop.

Lesson-learned and Best-practices are the feedstock for each Strategic Plan.

When Safety, Quality and Worker Efficiency Targets are met, your STO project will be the executed in the shortest duration at the lowest cost.



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Planning & Scheduling

Planning & Scheduling ensures that the STO Project Control Teams has everything it needs to achieve the established KPI Targets for the Execution Phase: Safety, Quality and Worker Efficiency.

Planned Job Package (PJP) must be assembled and reviewed by each Key Stakeholder: Operations, Technical, Safety, Contractor/Execution, etc. to ensure sufficient information is available to meet the established KPI Targets for the Execution Phase.

Dynamic Schedule Management (DSM) must be implemented using a defined Methodology, supported by Technology and competent People.



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Execution Strategy

Execution performance is a result of following a formal Methodology supported by the best Technology and the most Competent People.

When all Strategic Plans are established, and Planned-Job-Packages are developed, they combine to create the overall Execution Strategy.

Only then can a Plan be created and optimized to ‘Drive’ the STO project with a STO Project Controls Team

• Planning & Scheduling• Cost Management• Execution Coordination• Logistics



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Navigating your STO Project

STO projects are dynamic, ever-changing events. You must navigate by driving, not by monitoring

The most fatal mistakes a STO Project Organization will make are:• Not having a RAMP Team (model)• Not following a formal Methodology• Not implementing Strategic Planning• Relying too much on Technology and People• Not optimizing the Plan• Using Look-ahead Schedules• Trying to stick to a Plan

Cost

Duration Man-hours

Optimize the Plan



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The Competency Matrix

People must not only be certified, but qualified as well

Training & Coaching is vital to ensure People are competent to perform their assigned responsibilities

Training & Coaching cannot exist in the absence of a formal Methodology, supported by the best Technology



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Questions?

Ej ListerEditor-in-Chief STONAVIGATOR™[email protected]

mailto:[email protected]


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