Shutdowns

&
Turnarounds.

Best practice.
03/08/2015
MENA 2015, STO's best practice. By Dr. Abdelkader Salem.
Abdelkader Salem
 Topics
A. STO best practice:
– Event strategy.
• Event phases.
– Quality plan.
– Safety plan.
B. Freezing of scope of work
C. Shutdown management format and
resources optimisation

MENA 2015, STO's best practice.

03/08/2015
Abdelkader Salem
 Context of shutdown event

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Abdelkader Salem
 Shutdown context
• Financially: Unusually expensive event.
• Technically demanding.
• Plant disturbance: possibility of induced
operational problems.
• Psychologically: stressful event for planning and
plant personnel.
• Effect on HSE:
Can potentially induce:
• Reliability issues: Leaks.
• Accidents.
• Etc.
• A reluctantly accepted management tool.
MENA 2015, STO's best practice.
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Abdelkader Salem
 Why carry out a plant shutdown?
• Management tool to regain/enhance HSE,
reliability, uprate or upgrade capacity of the asset.
– Carry out jobs requiring plant outage, related to:
• HSE.
• Facility changes, uprate/ upgrade.
• Project work.
• Maintenance and inspection work:
– Reliability jobs.
– Integrity jobs.
– Equipment repairs.
– Statutory inspection
• Etc.

MENA 2015, STO's best practice.

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Abdelkader Salem
 Effect on Company’s business
Reality, asset exists as long as it makes
money for its shareholders.
• Rate of production is usually affected.
• Financed from Company’s profit.
• Affects Shareholders dividend.

• Success of a turnaround is directly

connected to Company’s profitability.
MENA 2015, STO's best practice.
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Abdelkader Salem
Shutdown Strategy, HSE and Quality
plans.
• Financial:
– Plant stops making money for the period.
– The earlier plant is back on stream the better. Planning

• Resources selection and plant Reliability. Quality plan

• HSE: Possibility of incidents. HSE Plan

• Shutdown success Versus Company performance: KPI’s

– Budget.
– Reliability. Necessity for a overall even strategy
– HSE.
03/08/2015
MENA 2015, STO's best practice.
Abdelkader Salem
 A. Shutdown strategy

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 Shutdown Core Team
• Most effective approach to plant
shutdowns is long term strategy.
• Consider plant outages in 5, 10 years (or
shorter) in company overall business plan.
• Decides on what will and what will not
be shutdown.
• As this is long term part of company
business, it pays to build/retain expertise
in shutdowns core competence.
MENA 2015, STO's best practice.
03/08/2015
Abdelkader Salem
 Business case justification
• Event scope drivers.
• Why this work has to be done at all. Case
• Why this work has to be done now.
• Major deliverables for the event.
• Propose duration of the shutdown.
• Estimate budget (company financial procedure?)
• Return on investment (ROI), expectations if
efficiency improvement etc.
• Consider event constraints.
• Consider/ identify major risks.
MENA 2015, STO's best practice.
03/08/2015
Abdelkader Salem
 Event strategy alignment
• Event strategy must be alignment with:
– Company’s high level objectives and overall
business goals (production, finance, etc.)
– Must be INTEGRAL to company’s maintenance and
inspection strategies.
– Must be ALIGNED with company asset integrity
objectives.

MENA 2015, STO's best practice.

03/08/2015
Abdelkader Salem
 Event phases
1. Initiation.
2. Preparation and Planning.
3. Pre-shutdown
4. Execution, plant hand over.
5. Event post mortem:
-Lessons learnt.
-Report writing.
-RACI on agreed actions till closure.
MENA 2015, STO's best practice.
03/08/2015
Abdelkader Salem
 Shutdown strategy, Phase 1
• Phase 1, Initiation:
– Finalise business plan and justifications.
– Nominate shutdown management core team.
– Define goal and objectives.
– Define scope of main drivers.
– List event constraint.
– Estimate duration.
– Estimate budget and request funds.
– Set communication process: meetings etc.
– Review previous shutdown reports and lessons
learnt.
MENA 2015, STO's best practice.
03/08/2015
Abdelkader Salem
 Shutdown strategy, Phase 2
• Phase 2, preparation and planning:
– Finalise shutdown team and agree management format.
– Set roles and responsibilities.
– Define scope of main drivers.
– Estimate event complexity.
– Finalise budget and request funds.
– Set communication process: meetings etc.
– Set cut-off/ freeze date for scope of work
– Review/ produce necessary procedures.
– Agree and set contracts as necessary: manpower, material,
construction equipment, transportation, specialized services.
– Set Administration and Cost accounting teams.
– Set working pattern.
– Re estimate event duration and determine critical path.

MENA 2015, STO's best practice.

03/08/2015
Abdelkader Salem
 Shutdown strategy, Phase 3.
• Phase 3, pre-shutdown activities:
• On-site:
– Close coordination with Plant Team.
– Plant on stream, all activities under PTW system.
• Off-site
– Off-site activities mostly include:
• Prefabrication.
• Testing of newly acquired equipment or replacement.
– Completion of these activities should be completed before
event start date.
MENA 2015, STO's best practice.
03/08/2015
Abdelkader Salem
 Shutdown strategy, Phase 3 ctd.
• Phase 3, on-site pre-shutdown activities:
– Discuss and agree with Plant Team the scope of work
for ON SITE ACTIVITIES under PTW.
• Erection of scaffolding at selected areas.
• Work order tagging.
• Removal of insulation at selected areas.
• Rigging preparatory work.
• Mobilization of equipment.
• Mobilization of contractors.
• Mobilizing and lifting and transportation equipment.
• Lay-down and marshaling areas.
• Temporary office facilities.
• Etc.

MENA 2015, STO's best practice.

03/08/2015
Abdelkader Salem
 Shutdown strategy, Phase 4.
• Phase 4, execution phase:
– Assist in plant shutdown: inventory removal, decontamination
and isolation.
– Physical equipment disconnection and opening.
– Inspection: visual and instrumental examination.
– Repairs, overhaul of existing items, installation of new items,
removal of redundant items, execution of project related work,
etc.
– Reinstatement of plant equipment: final inspection, equipment
boxing up, reconnection, etc.
– Plant testing: pressure testing, system tests, trip and alarm
testing and settings, etc.
– Plant start-up: reconnection of services, reintroduction of
inventory, etc.
– Clean-up of the plant AND hand shake.
MENA 2015, STO's best practice.
03/08/2015
Abdelkader Salem
 Shutdown strategy, Phase 5.
• Phase 5, Termination:
This phase involves two separate elements:
– Ensuring plant is handed back in fit condition.
– Debriefing at all levels of the organization to capture the
lessons learnt .
• Shutdown Manager’s responsibility to produce:
– Shutdown report which will include a summary of the
salient points of each phase of the event.
– Report will also include the lessons learnt from the post
mortem sessions, the recommendation of the audit report
(if carried out) and a financial report if available.

“Those who do not study history are doomed to repeat it.”

Winston Churchill.
MENA 2015, STO's best practice.
03/08/2015
Abdelkader Salem
 Event Quality Plan

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 Event Quality plan
• Quality Plan specifies the minimum quality
assurance and control system to:
– Circumvent inferior work quality which would
eventually compromise the integrity of the plant
assets.
• Resources selection.
• Work quality checks throughout phases of event.
– Peer reviews.

• Shutdown Manager is responsible to issue

Quality Plan for the event in question.
MENA 2015, STO's best practice.
03/08/2015
Abdelkader Salem
 Turnaround KPI’s
• KPI’s often adopted are:
i. Complete all planned jobs.
ii. To highest work quality.
iii. With minimum downtime.
iv. Minimum cost.
v. Zero accidents and minimum environment
impact.
• Seldom completion of all planned work,
achieve highest quality, minimum downtime
and lowest cost.
MENA 2015, STO's best practice.
03/08/2015
Abdelkader Salem
 Event HSE Plan

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 Event HSE Plan
• Shutdown event presents unique HSE challenges due to:
– Large work force.
– Unfamiliarity with the facilities and equipment.
– Strict schedule.
– Extended working hours.
• Shutdown Manager produces HSE plan specific to the event at hand.
• HSE Plan to specify minimum requirements to:
– Minimize incidents occurrence.
– Insure overall goal and objectives are achieved with no HSE
compromises.
• HSE Plan will describe overall HSE structure in which the individual
HSE plans of all stakeholder will fit (including contracted agencies).

MENA 2015, STO's best practice.

03/08/2015
Abdelkader Salem
 B. Scope freeze/ cut-off date

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Abdelkader Salem
 Scope of work freeze date.
1. One of main contributors to success of a
shutdown event is a thorough control and
optimization of the scope of work.
2. Aggressive screening vs. the scope criteria.
3. Work challenge.
4. Freeze work list at suitable timing (cannot
plan against an open scope of work).
5. Establish and agree procedures and make all
Stakeholders aware.

MENA 2015, STO's best practice.

03/08/2015
Abdelkader Salem
 C. Event management options

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03/08/2015
Abdelkader Salem
Turnaround Management options

Options
i. Client Company Management.
ii. Consultant Management Team.
iii. Main Contractor Management Team.
iv. Mix of (i) and (iii). Usually adopted
v. Rarely (ii) or (iii) acting alone in complex
plants.

MENA 2015, STO's best practice.

03/08/2015
Abdelkader Salem
 Alliancing shutdown Management
format
• Most effective and cost efficient.
• Based on Client/ Contractor’s:
– Team work (integrated shutdown team).
– Alignment of goal and objectives (same KPI’s).
– Use of bonus/ penalty scheme.
• Success is dependent on:
– Change of contract culture (both Client and
Contractor).
– Mutual trust.
– Etc.
MENA 2015, STO's best practice.
03/08/2015
Abdelkader Salem
Turnaround management options
pros & cons
• Each option has benefits and drawbacks
depending on the constraints:
i. Shutdown complexity.
ii. Level of plant Turnaround expertise.
iii.Complexity of plant.

MENA 2015, STO's best practice.

03/08/2015
Abdelkader Salem
 END

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03/08/2015
Abdelkader Salem
 Support slides

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Abdelkader Salem
 Shutdown event constraints
• Company’s objectives (production rate etc).
• Impact on sister companies.
• Selection of window of opportunity.
• Estimate Shutdown duration.
• Budget and funds availability.
• Event cost estimation including impact of plant outage
(production losses and profit loss).
• Timing during the year and weather considerations.
• Total Resources timely availability (workforce, spares, etc.).
• Availability of additional services such as catering and
accommodation, etc.
• Etc.
• Back
MENA 2015, STO's best practice.
03/08/2015
Abdelkader Salem
 Shutdown event procedures
• Procedures will be prepared with due attention to quality,
company’s experience and best practices.
• Included may be the following procedures:
– Formulation and validation of a shutdown work.
– Request for additional scope after cut-off date.
– Shutdown miles stones.
– Validation of shutdown and start up plans
– Analysis of event critical path.
– Delegation of authority.
– Formulation of peer reviews.
– Control management of additional work past the freeze date.
– Management of emergent work during the execution phase.
– Back

MENA 2015, STO's best practice.

03/08/2015
Abdelkader Salem
 Turnaround close out
• Close out report will include “Lessons learnt” in the following:
 HSE issues.
 Shutdown policies. Impact on the shutdown.
 Workscope. Emergent work. Reasons. Engineering activities.
 Planning and scheduling.
 Cost performance. How close to the budget. Cost of emergent work.
 Work completed compared to work scheduled.
 Scheduling compliance.
 HSE compliance.
 Communication: what worked and what didn’t.
 Reporting techniques and technologies used.
 Contractors performance.
 Vendor performance.

• “Those who do not study history are doomed to repeat it.”

Winston Churchill.
MENA 2015, STO's best practice.
03/08/2015
Abdelkader Salem
 Challenging Turnaround
workscope
• Work lists ought to contain ONLY those
jobs which cannot be carried out with the
plant on the run.
• Must challenge attitude: “..plant is shut
down anyway, so why not take advantage and
get as much done as possible!”.. Case study: plant 6

• Challenge jobs not necessary but “..nice to

do!”.
MENA 2015, STO's best practice.
03/08/2015
Abdelkader Salem
 Content of final work lists
Final work lists must contain only validated work
necessary to restore, maintain or improve plant reliability,
capacity and safety.
1. Legislatif and/or company standards.
2. Corrective maintenance.
3. Preventive maintenance.
4. Equipment cleaning.
5. Sanctioned safety initiatives.
6. Sanctioned quality improvement initiatives.
7. Projects which up-grade or up-rate plant capacity and
equipment.
One exception:
Work that could be done on-line but would be genuinely
complicated or presents high risk hazards.
03/08/2015
MENA 2015, STO's best practice.
Abdelkader Salem Back
 Unnecessary work
• Unnecessary work will:
1. Clog work plan and schedule.
2. Divert Turnaround resources from genuinely
important shutdown jobs.
3. Take up valuable time.
4. Increase the cost of the event.
5. Risk introduction of faults into otherwise a
reliable plant equipment.
Case St elect motor

MENA 2015, STO's best practice.

03/08/2015
Abdelkader Salem
 Event execution complexity.

• Factors that affect shutdown execution

complexity
i. Size of shutdown measured in field man-
hours
ii. Amount of Capital Project scope measured
in Percentage of capital field man-hours
iii. Experience in conducting the shutdown –
measured in Months since last shutdown

MENA 2015, STO's best practice.

03/08/2015
Abdelkader Salem
 Overall Complexity

Business Impact

Low Medium High

Low
Low Medium Medium

Medium
Medium Medium High

High
Medium High High

Phase 2 Courtesy of AP Networks

 KPI’s example

• KPI’s ought to meet the following objectives.

– Management and prioritization of work
– HSE management compliance.
– Work schedule management.
– Planned Vs Spent man-hours.
– Completing planned and emergent work within
the sanctioned budget.
– Reliability.

MENA 2015, STO's best practice.

03/08/2015
Abdelkader Salem