Maintenance Execution & Shutdowns best practice

Lindsay Cameron Planning Superintendent Fluor Shell Maintenance Alliance Shell Geelong Refinery

LINDSAY CAMERON WORK HISTORY

Lindsay Cameron is a Mechanical Engineer with a Bachelor of Engineering degree from Queensland Institute of Technology and a MBA from Melbourne University Lindsay Cameron has worked in maintenance planning and shutdowns for Shell, BlueScope Steel, Western Mining, QENOS, Anaconda Nickel, & Port Kembla Copper for over 20 years. In addition, he has worked on various SAP implementations while working for Deloitte Consulting (including AGL, Pasminco, Transfield, & Telstra). He specializes in Planning & Scheduling systems such as SAP & Primavera. Lindsay currently works for Fluor Operations & Maintenance as the Planning Superintendent for the Shell Geelong Refinery. His interests are family, cycling, motor racing, & the stock market/real estate investing.

AGENDA

Introduction The Importance of Maintenance Execution Maintenance Execution process steps Maintenance Workflow Maintenance Events Shutdowns Process Worked Example (Risk Analysis) Questions

THE IMPORTANCE OF MAINTENANCE EXECUTION

GOOD MAINTENANCE IS GOOD SAFETY

New legislative requirements Increased stakeholder scrutiny of safety performance Risk Management strategies ZERO HARM Good Safety is Good Business

1947 Texas City Explosion 145 Shift Workers killed in Monsanto Plant from explosion in nearby wharf

MAINTENANCE EXECUTION

What is Maintenance Execution? Integrated process covering:

Job Screening (including Risk & Priority) Scoping (what to do) Planning (how to do it) Scheduling (when to do it) Execution (doing it) Close-out

JOB SCREENING

Identify the work required

CMMS system (SAP Notifications) Can be raised by anybody

Done by somebody who understands business risk Determine the business risk

Review the Notifications

Consequence & Probability People, Assets, Environment, & Reputation

Convert Business Risk to Priority Determine required End Date for work & drive Maintenance Execution to achieve this end date

Assign to personnel to Scope & Plan work

SCOPING

What are you going to do?

Replace Repair Patch up Defer work Do nothing

Identify duplicate jobs (or similar work) Developed by Subject Matter Experts Cost considerations must be accounted for Operational Constraints (production requirements, statutory requirements, resource availability, etc)

PLANNING

How are you going to do the work? Basic requirements:

Job Tasks, Steps, Duration, & Sequence Resources

People Materials Tools Equipment

Cost Estimate Risk Assessment (PPA) Safety Requirements (JSA/JHA)

SCHEDULING

When you are going to do the work? Scheduling involves several key plant stakeholders

Supervisors (own the labour & equipment resources) Operations (own the plant) Scheduler (builds the schedule) Warehouse (owns the materials)

Someone must own the Schedule (senior role) Cyclic process (usually weekly) Separate roles for Planning & Scheduling

EXECUTION

Do the work

Do the work you say you are going to do Do it when you say you are going to do it Like taking your car in for a service Schedule Attainment PM Compliance Orders completed by required end date NOT the Planner (or Scheduler) Schedule Attainment Supervisor PM Compliance Maintenance Engineer Orders by End Date Maintenance Engineer

Measure performance by KPIs

Ownership of KPIs is at the appropriate stakeholder

CLOSE-OUT

Often forgotten part of process Record completion of each step Collect hours worked Collect history (damage, cause, activities) Determine costs Continuous learning

WORKFLOW
Putting it all together

MAINTENANCE WORK-FLOW

Types of Work

PMs (Preventive Maintenance) Corrective Work Breakdowns Refurbishment

Each will have a work-flow process

INITIATION

PLANNING and SCHEDULING

EXECUTION

HISTORY

Verification Strategy

Job Request Execute & Verify

Request for work

Accept

Estimate

Approve

W O R K L O G

Schedule

History Verify favourable effect on plant performance

CMMS Schedules MIMS Planning Tools

Planning Tools

Unplanned event affecting Safety / Production Event Reporter

ORIGINATOR Clear and concise information at the lowest recordable level on the nature of the task

AML Accept request for further action in unit / engineering WORKS COORD Search for W/ O's. Verify all details, work type, priority and location. Assign to Work Order and allocate cost code.

WORKS CO-ORD Estimate labour, materials and resources

UNIT SUPER (AML) Approve work order - approve expenditure against budget

WORKS CO-ORD Assign labour group, Start and Finish dates. Confirm material and services availability. Confirm plant availability

WGL Assign labour. Arrange plant access. Confirm materials / services arrangements. Generation of JR's for additional works. Raise PR's for additional materials. ASSET MAINT Execute work Verify Work Instructions Commission Plant

ASSET MAINT Update history files WORKS CO-ORD Update schedule, quality check history. WGL Validate work. Validate history. Receipt materials

Asset Maint Maint Strategist Reliability Eng CM Specialist Hydraulics Spec Automation Spec

INITIATION

PLANNING and SCHEDULING

EXECUTION

HISTORY

Job Request

Request for work

Accept

Estimate

Approve

CMMS Schedules MIMS Planning Tools

Unplanned event affecting Safety / Production Event Reporter

ORIGINATOR Clear and concise information at the lowest recordable level on the nature of the task

AML Accept request for further action in unit / engineering WORKS COORD Search for W/ O's. Verify all details, work type, priority and location. Assign to Work Order and allocate cost code.

WORKS CO-ORD Estimate labour, materials and resources

UNIT SUPER (AML) Approve work order - approve expenditure against budget

INITIATION Different Work Types SAP Notification Execute PM Schedule Schedule History & Verify W O Injected Work (E&SB) R K SAP Notification L O For a Corrective job G Acceptance required before work proceeds Planning Tools Approval by Maintenance Manager, etc. PM Schedule Automatically WGL WORKS CO-ORD ASSET MAINT generated Assign labour. Assign labour group, Start and Update history files Arrange plant Finish dates. Confirm material access. and services availability. Confirm Pre-Approved Confirm materials / WORKS CO-ORD plant availability services Update schedule, Injected Workarrangements. quality check Generation of JR's history. for additional works. Emergency & Schedule Raise PR's for WGL additional materials. Breakers ASSET MAINT Validate work. Validate history. Execute work Receipt materials For Breakdowns Verify Work Instructions Immediate approval Commission Plant

Verification Strategy

Verify favourable effect on plant performance

Asset Maint Maint Strategist Reliability Eng CM Specialist Hydraulics Spec Automation Spec

INITIATION

PLANNING and SCHEDULING

Job Request

Request for work

Accept

Estimate

Approve

W O R K L O G

Schedule

CMMS Schedules MIMS Planning Tools

Unplanned event affecting Safety / Production Event Reporter

ORIGINATOR Clear and concise information at the lowest recordable level on the nature of the task

AML Accept request for further action in unit / engineering WORKS COORD Search for W/ O's. Verify all details, work type, priority and location. Assign to Work Order and allocate cost code.

WORKS CO-ORD Estimate labour, materials and resources

UNIT SUPER (AML) Approve work order - approve expenditure against budget

WORKS CO-ORD Assign labour group, Start and Finish dates. Confirm material and services availability. Confirm plant availability

Verification PLANNING EXECUTION HISTORY Strategy Planned Job Planned Jobs will require an Estimate Execute History & Verify Can then go off to be Verify Approved favourable on Before detail effect plant performance planning job, get approval to proceed (avoids spending Planning Tools time on job that may not go ahead) PM Schedule Job already planned Breakdowns WGL ASSET MAINT Asset Maint Assign labour. ThisUpdate process shows history files Maint Arrange plant Strategist access. no for Reliability Confirm materials / planning WORKS CO-ORD step Eng services Update schedule, CM arrangements. quality check breakdowns Specialist Generation of JR's history. Hydraulics for additional works. Best practice is to Spec Raise PR's for WGL Automation additional materials. Validate work. templates Spec have some ASSET MAINT Validate history. Execute work Receipt materials available for Verify Work Instructions Commission breakdowns Plant

SCHEDULING INITIATION WORK LOG Planned Jobs & Job Request PM Schedules go intoRequest common Accept for work backlog of work Jobs that can be CMMS deferred are Schedules identified MIMS SCHEDULE Jobs are scheduled Unplanned event affecting according to Safety / Production business Event Reporter requirements AML ORIGINATOR Schedule for all Accept request Clear and concise for further information at the action available lowest recordable level hours in unit / on the nature of the engineering task BREAKDOWNS WORKS COORD Breakdowns are Search for W/ O's. Verify all not scheduled details, work type, priority location. They get and Assign to Work injected during Order and allocate cost Execution phase code.

PLANNING and SCHEDULING

EXECUTION

HISTORY

Verification Strategy

Estimate

Approve

W O R K L O G

Schedule

Execute & Verify

History Verify favourable effect on plant performance

Planning Tools

Planning Tools

WORKS CO-ORD Estimate labour, materials and resources

UNIT SUPER (AML) Approve work order - approve expenditure against budget

WORKS CO-ORD Assign labour group, Start and Finish dates. Confirm material and services availability. Confirm plant availability

WGL Assign labour. Arrange plant access. Confirm materials / services arrangements. Generation of JR's for additional works. Raise PR's for additional materials. ASSET MAINT Execute work Verify Work Instructions Commission Plant

ASSET MAINT Update history files WORKS CO-ORD Update schedule, quality check history. WGL Validate work. Validate history. Receipt materials

Asset Maint Maint Strategist Reliability Eng CM Specialist Hydraulics Spec Automation Spec

INITIATION

PLANNING and SCHEDULING

EXECUTION

HISTORY

EXECUTION Daily & Weekly Schedule Job Request Jobs are executed according to priority Accept Estimate Approve Request for work and business requirements CMMS Deviations from Schedules schedule managed by MIMS Operational Personal Planning Tools Breakdowns Unplanned Breakdowns are event affecting Safety / injected into daily Production schedule Event Reporter Pre-identified AML ORIGINATOR WORKS CO-ORD backlog are UNIT SUPER Accept request jobs Clear and concise Estimate labour, (AML) for further information at the materials and Approve work action lowest recordable level deferred resources order - approve in unit / on the nature of the expenditure engineering task Breakdown work against budget WORKS COORD orders should have a Search for W/ O's. Verify all sunset clause on them details, work type, priority and location.48 hours) (suggest
Assign to Work Order and allocate cost code.

Verification Strategy

W O R K L O G

Schedule

Execute & Verify

History Verify favourable effect on plant performance

Planning Tools

WORKS CO-ORD Assign labour group, Start and Finish dates. Confirm material and services availability. Confirm plant availability

WGL Assign labour. Arrange plant access. Confirm materials / services arrangements. Generation of JR's for additional works. Raise PR's for additional materials. ASSET MAINT Execute work Verify Work Instructions Commission Plant

ASSET MAINT Update history files WORKS CO-ORD Update schedule, quality check history. WGL Validate work. Validate history. Receipt materials

Asset Maint Maint Strategist Reliability Eng CM Specialist Hydraulics Spec Automation Spec

INITIATION

PLANNING and SCHEDULING

EXECUTION

HISTORY

Job Request

Request for work

CMMS Schedules MIMS

Unplanned event affecting Safety / Production Event Reporter

ORIGINATOR Clear and concise information at the lowest recordable level on the nature of the task

HISTORY All Jobs Failure data added to Accept CMMS Estimate Approve Schedule W O Hours recorded R K Update library plans L (or create new ones) O G Breakdowns Reliability analysis Planning Tools Is a library plan required? Is a PM required? PMs PM data updated AML WORKS CO-ORD WORKS CO-ORD Recommend that UNIT SUPER PMs Accept request Assign labour group, Start and Estimate labour, (AML) for further Finish dates. Confirm material materials and Approve work action do not and services availability. Confirm get resources order - approve in unit / plant availability expenditure engineering rescheduled based on against budget WORKS COORD Completion Date Search for W/
O's. Verify all details, work type, priority and location. Assign to Work Order and allocate cost code.

Verification Strategy

Execute & Verify

History Verify favourable effect on plant performance

Planning Tools

WGL Assign labour. Arrange plant access. Confirm materials / services arrangements. Generation of JR's for additional works. Raise PR's for additional materials. ASSET MAINT Execute work Verify Work Instructions Commission Plant

ASSET MAINT Update history files WORKS CO-ORD Update schedule, quality check history. WGL Validate work. Validate history. Receipt materials

Asset Maint Maint Strategist Reliability Eng CM Specialist Hydraulics Spec Automation Spec

MAINTENANCE EVENTS - PMs

If you do a job, then there is a 80% chance that you will do it again in the next two years What jobs can be converted to a schedule? Store in CMMS System Two major improvements

Increased reliability Increased planning efficiency

Identify Resources in advance Automate & consolidate resource procurement processes Less wastage

BREAKDOWNS

If you do a job, then there is a 80% chance that you will do it again in the next two years This applies to breakdowns as well Some initiatives that can be put in place

APLs (Application Parts Lists) Lists of parts that could be required for a job BOMS (Bills of Material) Lists of parts that make up a piece of equipment Library Plans If a breakdown occurs, then you already have a template available

CORRECTIVE WORK

ONE LIST Have your list in a CMMS System Should include the following:

Project Work Major Maintenance Re-Engineering

Consolidated list of work to be done Can have major conflicts between Project Work & Maintenance Work

FOUR PHASES OF SHUTDOWN MANAGEMENT

Initiation

SHUTDOWN STEERING GROUP

Manage upwards as well as downwards Managing a large Program requires input from various stakeholders Shutdown Steering Group to set strategic direction Cross-section of senior management Must have a Charter (avoid micromanaging)

FOUR PHASES OF SHUTDOWN MANAGEMENT

Planning & Preparation

SHUTDOWN CRITERIA

Must Justify why a job is being done in Shutdown

CRIT DUR DIS SYN Shutdown criteria Duration Can only be done while equipment is disassembled for other shutdown work Synergies with doing work in conjunction with other shutdown work Utility equipment that is only available during shutdown period Work of a hazardous nature that must be done while plant is isolated

UTIL

HAZ

OTH

Other (please advise)

JOB LIST REVIEW

LIKELIHOOD

Jobs to be reviewed for their operational impact if not done Risk Matrix Likelihood & Consequence

5
Almost Certain (Over 30%) $0
9

Extreme High
$0
1 8 27 34

$0
36

$0

$0

4
Likely (10% to 30%)

Moderate
1 2 26

$105
21

$96
1 3 29 35 79 37 30 2 32 1 0 39 22 4 5

$512
1 6 1 4 1 5 3 7 24 20

$0
31 28 25

$0

3
Possible (3% to 10%) $0

33

$271
23 38

$443
1 7

$539

$0

2
Unlikely (1% to 3%) $0 $28 $97 $0 $0

1
Rare (up to 1%) Probability of Event Occuring in 2005/06 Financial Year

Moderate Low
$0 $0 $0 $0

High

$0

1
Low <$25k

2
Minor $25k - $250k

3
Moderate $250k - $2.5m

4
Major $2.5m - $25m

5
Critical >$25m

Safety Impact

CONSEQUENCE (BUSINESS IMPACT) Environmental Impact Operational Impact

$000's

GANTT CHART DEVELOPMENT

A Gantt Chart is required Develop a Critical path Duration to be prime-to-prime Have ONE schedule Duration of each step to be such as to be easily tracked

Less than reporting period (target for <12 hours) Larger jobs to have milestones or other metric to track progress

Create a Baseline & track progress against the baseline

RISK ANALYSIS

Use a Risk Management Process Kepner Tregoe PPA (Potential Problem Analysis) PPA Criteria

Quality Critical Work Reliability Critical Work Safety Critical Path Tasks with prior problems New &/or Unusual Tasks Work Group Involvements Review job again if criteria changes

FOUR PHASES OF SHUTDOWN MANAGEMENT

Execution

MEETING STRUCTURE

Consistent meeting times

Schedule Updates

10:00 AM Morning Area Meeting 3:00 PM Managers Meeting

7:00 AM Update for Morning Meeting 3:00 PM Update for Night Shift

EARNED VALUE

Tool for tracking progress against schedule Quickly shows if you are falling behind schedule Forecast costs to complete work

SHUTDOWN COMMUNICATIONS

Email is a problem

Reply All Mass Distribution lists Not everyone has email access

Noticeboards not very effective Tool-Box talks are very effective Meetings work well Large mass meetings do not work well Signs work well for operators Flashing signs work extremely well Jury is still out on Intranet Your audience is not homogenous People will generally not spread rumours that they believe are not true

FOUR PHASES OF SHUTDOWN MANAGEMENT

Close-out

POST SHUTDOWN REVIEW

Carry out SWOT Analysis

Consolidate issues Feed-Back into Management Plan for future shutdowns

Some issues that came out of manufacturing site shutdown

Need two night shift managers Need to update schedule twice per day Supply Department was very happy No IT issues Site Security not up to scratch Steering Group worked well Site Wide Coordination worked well (forum of regular Meeting) Communication needs a lot of work Fix the phones

PREVIOUSLY WORKED EXAMPLE SHUTDOWN PPA

WATER SUPPLY TURNED OFF DURING SHUTDOWN

PPA PROFORMA
Potential Problems P S Likely Causes Preventive Actions Contingent Actions Triggers

QUESTIONS