turnarounds managing contracting as a model for success · insulation industrial cleaning cranage...

Turnarounds

Managing contracting as a model for successWolfgang Amerer | Hannover Messe 2013

Bilfinger Industrial Services

11. April 2013

Planning & Preparation

Subcontracts

Material Management &

Spare Parts

Projects

Scaffolding

Insulation

Industrial Cleaning

Cranage & Transportation

Piping

Instrumentation

Process Control

Maintenance

Static Equipment

Valves

Instrumentation

Inspections &

Acceptance Testing

Rotating Equipment

Managing Contracting Model

Activities within a Turnaround

Plant

TAR

page 2Turnarounds - Managing contracting as a model for success


Turnaround phases

Preparation & Planning phase

▪ Time scheduling

▪ HSEQ plan

▪ Work package planning & calculation

▪ Agree on interfaces – RASCI chart

▪ Material management

▪ Resource planning (in steps)

▪ Infrastructure

▪ SD planning & support

Execution phase

▪ Site management

▪ Supervision & co-ordination

▪ Execution and project process

▪ Operational and progress monitoring

▪ HSEQ co-ordination & observation

Finalisation

▪ Technical documentation

▪ SU planning & support

▪ Review <> lessons learned



Bilfinger Industrial Services TAR key markets


TAR business

Middle/North Europe

N. Africa and Middle East

Western/South Europe

Eastern Europe

▪ 68 TAR per year at an average cost of € 42.6 mn in Europe

▪ Total demand for TAR services will decrease by 20% by 2020

(mainly refinery business)

▪ An increase in contract volume can be expected between 2013

and 2017 due to additional capital project investment

▪ Different purchasing strategies of customers

▪ Customers try to perform turnarounds in smaller parts

(depending on legal requirements and plant design)

▪ Plant operators will increasingly try to organise and develop their

TAR department skills across multiple locations (only possible for

international companies)

▪ Operators will use more independent planning and project partners

due to increasing complexity of TAR’s


Future Trends Turnaround Market



Different levels of partnership in Turnaround projects

Preparation PlanningInitial Activities Execution Finalization




Level 1Personnel Supplier


- provision of personnel




Single Contractor Level 2



- execution of

mechanical

works

- coordination

of activities (SIP)

- HSEQ- provision of personnel




Unit Contractor (Main Contractor)

Single Contractor

Level 3

Level 2



- planning

- execution

of mechanical

works

- coordination of

activities (SIP)

- HSEQ

- execution of

mechanical

works

- coordination

of activities (SIP)





Unit Contractor (Main Contractor)

Single Contractor

Level 3

Level 2

Level 1

Managing Contractor - MC (General Contractor) Level 4

Personnel Supplier


- initial activities

- planning and preperation

of all trades

- managing & coordination

of all activities in the unit(s)

- execution of mech. works

- HSSE (MC-customer)

- QA/QC (MC-customer)

- planning

- execution

of mechanical

works

- coordination of

activities (SIP)

- HSEQ

- execution of

mechanical

works

- coordination

of activities (SIP)



All under one umbrella


Managing Contractor principals

▪ Early selection of best performing

contractor

▪ Reduction of number of interfaces

▪ Early development of plans for

scoping, HSE, QA-QC

▪ customer focus on infrastructure

▪ Use of existing site contracts

▪ customer focus on project controls:

planning / scheduling, HSE,

QA-QC, costing (budget)


Client TA

Management

Client

Independent

QA/QC

Managing

Contractor

SubcontractorsTechnical

SpecialistsClient

Deboolenecking

“The MC is responsible for the safe, environmental friendly execution and completion of all scoped works in a

specific unit, within defined duration and in accordance with the quality criteria as set.

In order to achieve the goals, the MC supervises and coordinates all works in the field from formal handover by

operations till formal completion and handover to customer.”


Managing Contractor Function

This comprises of the following management aspects:

Managing of all administration, staff officers and planning & control functions Project Management

Supervising of own direct personnel via qualified supervision Field Supervision

Coordination of main-contractors and supporting services via qualified coordinators Field Coordination

Coordination of all technical specialists which do not have a dedicated supervisor Field Coordination

Cooperation with customer’s facilitating / debottlenecking coordinators via field supervision

Cooperation with customer’s HSE manager and QA-QC coordinators via QA-QC supervision

Turnarounds - Managing contracting as a model for success page 12


Managing Contractor Turnaround Organisation

Project management level

Support functions

(Progress, HSEQ)

Site management level

Coordination functions

Superindendent level

Supervisor level

Foreman level

TA Manager

Planning / Scheduling

Secretary Administration

Site Manager

SHE Manager

QA/QC Manager

Documentation

Cleaning yard

Time Scheduling

Work Preparation

Progress / Extra Works

Warehouse Keeper

Material Keeper

CoordinatorCranage/Transport

CoordinatorInspection

CoordinatorScaffolding

CoordinatorInsulation / Painting

CoordinatorCleaning

Superintendent

Supervisor Airfin

Supervisor Exchanger

Supervisor Safties / Dual valves /

General valves

Supervisor Piping

SupervisorDrums / Specials

SupervisorTorens / Reactor

Supervisor Furnace / Flare /

Stack

CoordinatorElectrical/Instrumentation

Supervisor Rotating





Support functions

(Progress, HSEQ)




Supervisor level

Foreman level

TA Manager



Site Manager

SHE Manager

QA/QC Manager

Documentation

Cleaning yard

Time Scheduling

Work Preparation


Warehouse Keeper

Material Keeper





CoordinatorCleaning

Superintendent

Supervisor Airfin



General valves

Supervisor Piping




Stack


Supervisor Rotating

Customer QA/QC Coordinators

Client TA Management





Support functions

(Progress, HSEQ)




Supervisor level

Foreman level

TA Manager



Site Manager

SHE Manager

QA/QC Manager

Documentation

Cleaning yard

Time Scheduling

Work Preparation


Warehouse Keeper

Material Keeper





CoordinatorCleaning

Superintendent

Supervisor Airfin



General valves

Supervisor Piping




Stack


Supervisor Rotating







Support functions

(Progress, HSEQ)




Supervisor level

Foreman level

TA Manager



Site Manager

SHE Manager

QA/QC Manager

Documentation

Cleaning yard

Time Scheduling

Work Preparation


Warehouse Keeper

Material Keeper





CoordinatorCleaning

Superintendent

Supervisor Airfin



General valves

Supervisor Piping




Stack


Supervisor Rotating


Customer facilitating coordinators




RASCI Chart

The RASCI Chart summarises

who is

R esponsible,

A ccountable,

S upport,

C onsulted and

I nformed

In customer’s TA

Managing Contractor Model.

Clien

t T

A 2

010 S

C &

Man

ag

em

en

t

Man

ag

er

Main

ten

an

ce

Secti

on

Head

Tu

rnaro

un

ds

Man

ag

ing

Co

ntr

acto

r

(Main

) S

ub

co

ntr

acto

r &

tech

nic

al S

pecia

lists

Clien

t S

up

erv

isio

n f

or

sp

ecif

ic E

lectr

ical &

Ro

tati

ng

wo

rks

Su

pp

liers

Clien

t Q

A/Q

C C

o-o

rdin

ato

r

Clien

t d

eb

ott

len

eckin

g C

o-o

rdin

ato

r

Scope Management

1 Scope control Pre - Turnaround (development, changes, freeze & release to Managing Contractors) > Scope Change Procedure C/I A R

2 Field scope change (more/less w ork process) identif ication & quantif ication (w ork preparations > impact on schedule, costs) during Turnaround > CVI Procedure R C C C C/S

3 Approval of scope change & formal instructions to Managing Contractor A R C/S

4 Instruct ow n personnel, main subcontractors and technical specialists w ith respect to scope changes and carry out the approved more/less w orks A R I I I I

5 Field facilitation/support Managing Contractors w ith respect to execution of all scoped w orks A S S S R

Budget & Cost management

1 Prepare and agree w ith Client on schedule of norms for all relevant w orks, equipment and materials A R

2 Development & control of budget estimate based on scope I A R

3 Daily report on cost status & variations I A R

4 Verify/challenge cost impact of each individual scope change, check against unit rates & update cost forecast R C/S C/S

Organization & personnel

1 Development & communication of pre-TA organization chart I A R C/S C/S C/S C/S C/S C/S

2 Development & communication of organization chart for entire TA/IS 2010 I A R C/S C/S C/S C/S C/S C/S

3 Development & communication of organization chart for each main unit I A I R C/S C/S C/S C/S C/S

4 Development of tasks, roles & responsibilities of each individual function A R C/S C/S I I I

5 Selection & appointment of MC key function holders for w ork preparation / execution A R

6 Selection & appointment of Client key function holders for w ork preparation / execution A R C/S

7 Set-up and agree (de)mobilisation planning for ow n staff, non-w orking supervision and site facilities w ith Client I A R

8 Prepare list of all direct labour, w orking supervision, staff and non-w orking supervision w ith all relevant information for access to Client site A R

9 Prepare Request for Company pass forms for all persons identif ied A R

10 Agree on (un)planned personnel/staff changes/replacements I R/C R/C C C

Work preparation

1 Agree w ith Client on computerized w ork preparation system to be applied (for ow n w orks). A R

2 Provide all relevant technical data required for all Turnaround Services and agree w ith Client on the scope of w ork incl. w orks main subcontr. & technical services A R

3 Review major and minor Turnaround preparation activities by means of f ield checks A R C/S

4 Prepare detailed f ield w ork packages for all scoped w orks to be executed by the managing contractor according to Client quality standard A R C/S

5 Co-ordinate, check content & quality and approve the detailed f ield w ork packages to be executed by main subcontractors and technical specialists A R C/S C/S C/S

6 Prepare materials requirements list including spare parts, bulk materials, etc. A R C/S C/S C/S

7 Prepare inquiry packages based on the Client frame agreements for main sub contractors and technical specialists A R C/S C/S C/S

8 Check, review and approve quotations from main subcontractors and technical specialist on scope (correct & complete) A R C/S C/S C/S

9 Double check quotations (terms & conditions, scope, etc.) of main subcontractors and technical specialists and place orders R C/S

10 Identify and prepare all other activities to ensure a successful w ork preparation & execution of the Turnaround A R C/S C/S C/S

11 Submit w ork packages for technical and commercial evaluation to Client according WR procedure A R

12 Discuss and agree w ork packages of Managing Contractor including Lump-Sum pricing and associated costs for w ork package w ith Client A R

13 Review and mitigate all risks / hazards involved w ith the w orks in the preparatory phase A R

RASCI Chart


Awareness of roles & responsibilities

Managing / supervising of own management and field personnel

Co-ordination of sub-contractors

Co-operation with customer’s facilitating / debottlenecking team

Co-operation with customer’s HSE manager and QA-QC coordinators

Driving non-technical aspects of TA (pro-activeness)

HSE organisation

Communication

TA organisation

Commercial (more-less work procedure)


Summary – The Role Managing Contractor



Added value

▪ Minimization of interfaces

▪ Minimization of customer’s temporary operative staff

▪ Lump sum contract is possible

▪ Customer’s focus on critical path, debottlenecking and

technical problems solving

▪ Control of the whole TAR via KPI’s possible

▪ Priority setting to safety and quality possible

▪ Early development of plans for scope, QA/QC, manpower

▪ Early commitment, teambuilding & involvement in working methodologies

▪ Early fixing of required resources

▪ Cost advantage due to less interfaces and to synergies


Customer: Kuwait Petroleum Europoort B.V., Rotterdam / Netherlands

Project: TA 2010 Lube Oil Plant

Plan. & Prep. Phase: December 2009 – September 2010

Execution Phase: October 2010

Manpower mech.: 125 (25,000 hours)

Site Management: 65

Scope of Services: ▪ Preparation, detailed planning, time scheduling

▪ Site management and supervision incl. material handling

▪ Coordination of all disciplines / trades

▪ Execution of mechanical works: drums, columns, reactors,

furnaces, valves, heat exchangers (total: 676 pcs.)

▪ Bundle pulling/setting incl. Handling, 85 pcs. (own equipment)

▪ Site equipment, tool management

▪ Internal transportation / logistics

▪ Flange fastening “Rotabolts“, bolt tensioning

▪ SD/SU assistance

Involved Bilfinger comp.: Bilfinger IS (scaffolding, insulation, painting, tracing)


Case study


Borealis Polyolefine GmbH

Schwechat | Austria


Project TAR Schwechat 2011

Planning 2010, 2011

Execution time 2011

Type of contract Managing contractor

Manpower 500 (220,000 hours)

Scope of services ▪ Planning, work preparation

▪ Project management

▪ Rotating and static equipment

▪ Valve services

▪ E/I&C services

▪ Insulation

▪ Co-ordination of sub-contractors

Thank you very much for your attention

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