planning for start-up (university of austin texas)

ImplementationResource

121-2

ConstructionIndustryInstitute

StartupPlanning

Model

includes

Requirements Definition &Technology Transfer

Conceptual Development &Feasibility

Front-End Engineering

Detailed Design

Procurement

Construction

Checkout & Commissioning

Initial Operations

Planning for Startup

Planning for StartupPlanning for Startup

Prepared by

Construction Industry Institute

Planning for Startup Research Team

Implementation Resource 121-2

April 1998

Reviewed by CII 23Jun04

1998 Construction Industry Institute.

The University of Texas at Austin.

CII members may reproduce and distribute this work internally in any medium at no cost to internal recipients.CII members are permitted to revise and adapt this work for the internal use provided an informational copy isfurnished to CII.

Available to non-members by purchase; however, no copies may be made or distributed and no modificationsmade without prior written permission from CII. Contact CII at http://construction-institute.org/catalog.htm topurchase copies. Volume discounts may be available.

All CII members, current students, and faculty at a college or university are eligible to purchase CII products atmember prices. Faculty and students at a college or university may reproduce and distribute this work withoutmodification for educational use.

Printed in the United States of America.

Chapter Page

Introduction ........................................................................................................... 1

Phase 1: Requirements Definition and Technology Transfer................................. 15

Phase 2: Conceptual Development and Feasibility ............................................... 21

Phase 3: Front-End Engineering ........................................................................... 31

Phase 4: Detailed Design ...................................................................................... 81

Phase 5: Procurement ......................................................................................... 121

Phase 6: Construction ........................................................................................ 125

Phase 7: Checkout and Commissioning .............................................................. 133

Phase 8: Initial Operations ................................................................................. 143

Implementation Case Study ................................................................................ 147

Appendix A: Glossary of Terms ......................................................................... 153

Appendix B: References ................................................................................................ 157

Contents

1Introduction

The importance of startup planning is evident given the challenging

characteristics of todays industrial business environment:

pressures to increase profits by reducing costs

reduction in owner project staff and increases in outsourcing ofservices

demand for shorter project cycle times

lack of planning capabilities and supportive tools.

These business challenges demand increases in organizational efficiency

and management effectiveness. As a result, planning and training tools are

in high demand.

Definition of Startup

Plant startup is defined as the transitional phase between plant

construction completion and commercial operations, including all of the

activities that bridge these two phases. Critical steps within the startup

phase include system turnover, check-out of systems, commissioning of

systems, introduction of feedstocks, and performance testing.

Project Success, Startup Success, and Planning for Startup

Project management and the perception of project success must be

aligned with a new paradigm: mechanical completion is not the project

objective; successful commercial operations is. Successful commercial

operation requires a successful startup. The message is evident if you

want a successful project, you must plan for a successful startup.

Further analysis of startups indicates that there is a reasonably strong

correlation between startup success and extent of startup planning. The

message is again clear: effective startup planning requires that the right

issues be addressed by the right people at the right time.

2Introduction

The Startup Planning Model

Startup is a critical phase in the plant life-cycle and must be given

adequate attention. The purpose of the Startup Planning Model (pages 58)

is to help industry plan startups in a more thorough, effective, and efficient

manner. The model is not intended to be a project management primer;

rather, the activities in the Startup Planning Model should be supplemented

with effective, basic project management practices.

The Planning for Startup Model is a sequence of 45 planning activities

organized according to eight typical project phases (see Table 1.1). The

model is presented in a flow chart that illustrates the interrelationships

between the startup planning activities. Each planning activity is detailed

in a one-page activity profile that presents nine fields of descriptive

information.

Table 1.1. Startup Planning Model Phases and Activities

No. of StartupProject Phase Planning Activities

Requirements Definition and Technology Transfer 1

Conceptual Development and Feasibility 3

Front-End Engineering 10

Detailed Design 15

Procurement 3

Construction 7

Checkout & Commissioning 3

Initial Operations 3

The 45 planning activities are complemented with 26 tools, each

appropriately itemized on the activity profiles under the heading Tools

Needed/Provided. These tools are intended to facilitate the implementation

of the particular startup planning activity.

3Introduction

Phase 3 - Front-End Engineering

Phase 1 - Requirements Definition & Technology Transfer

Ensure Sr. Management Commitment

[1-A]Business Plan

RecognizeImpact of Startup

on Economics

[2-C]

Technology Transfer Package

Phase 2 - Conceptual Development & Feasibility

Q

Seek RealisticStartup Duration

Forecast[2-A]

EstimateStartup Cost

[2-B]

EstablishStartup Objectives

[3-A]

Make StartupTeam Assignments

[3-C]

Develop StartupExecution Plan

[3-B]

Refine StartupBudget & Schedule

[3-I]

Acquire Operations& Maintenance Input

[3-E]

Identify Startup Systems

[3-D]

Assess Startup Risk

[3-F]

Analyze StartupIncentives

[3-G]

Identify StartupProcurementRequirements

[3-H]

Q

Update StartupExecution Plan

[3-J]

Q = Quality GateTo Phase 4

4Introduction

Phase 4 - Detailed Design

Update Startup Execution Plan[3-J]Q

Q = Quality Gate

AddressStartup Issues in

Team-Building Sessions[4-A]

Assess & CommunicateStartup Effectsfrom Changes

[4-B]

Plan forSupplier Field Support

of Startup[4-C]

Include Startup inProject CPM Schedule

[4-D]

Plan forStartup QA/QC

[4-E]

Refine Startup TeamOrganization &ResponsibilityAssignments

[4-F]

Acquire AdditionalOperations &

Maintenance Input[4-G]

Indicate Startup SystemNumbers on Engineering

Deliverables[4-H]

Refine StartupRisk Assessment

[4-I]

PlanOperator/Maintenance

Training[4-J]

Develop StartupSpare Parts Plan

[4-K]

Develop SystemTurnover Plan

[4-L]

Develop &Communicate Startup

Procedures & PSM[4-M]

Update Startup Execution Plan[4-O]Q

To Phase 5

Refine StartupBudget & Schedule

[4-N]

5Introduction

Phase 6 - Construction

Phase 5 - Procurement

Update Startup Execution Plan[4-O]Q

Q = Quality Gate

Finalize StartupRisk Assessment

[6-F]

Qualify Suppliersfor Startup Services

[5-A]

Refine Startup SpareParts Plan & Expedite

[5-B]

Update Startup Execution Plan& Issue for Construction

[6-A]

Implement ProcurementQA/QC Plan

[5-C]

To Phase 7

To Phase 7

RefineStartup Integrated

CPM Schedule[6-C]

Q

ConductOperator/Maintenance

Training[6-D]

Transition toStartup System Based

Execution[6-G]

Implement FieldQA/QC Plan

[6-E]

Conduct ConstructionStartup Team Building

[6-B]

6Introduction

Update Startup Execution Plan& Issue for Construction

[6-A]Q

Transition toStartup System Based Execution

[6-G]

Phase 8 - Initial Operations

Phase 7 - Checkout & Commissioning

FinalizeOperations/Maintenance

Organization &Management System

[7-A]Q

Checkout Systems[7-B]

Q

Commission Systems[7-C]

Q

Introduce Feed Stock[8-A]

Q = Quality Gate

ConductPerformance Testing

[8-B]

FinalizeDocumentation

[8-C]

7Introduction

Startup Planning Priorities

Properly and thoroughly implemented, all 45 startup activities contained

in the Startup Planning Model will significantly increase the predictability

of startup success. However, some of the planning activities are more

important than others. The Startup Planning Model includes eight activities

that are particularly important. These are designated as Quality Gates

or checkpoints for assessing the thoroughness of startup planning. These

Quality Gates include the following activities:

Table 1.2. Startup Planning Quality Gates

Title

Recognize the impact of startup on project economics

Update the Startup Execution Plan

Finalize the Operations & Maintenance organization and managementsystems

Check-out systems

Commission systems

Finalize documentation

The Startup Planning Model should be viewed as a flexible collection

of best practices to be customized to suit the needs of the user. Users will

want to customize the model to reflect unique organizational structures

and terminology and to integrate with other project approaches and

procedures.

Responsibility and Accountability for Planning

Startup success requires a team approach with active planning

participation of all project stakeholders. Accordingly, the Planning for

Startup Model is targeted to a wide variety of audiences. Messages are

8Introduction

targeted to manufacturing business unit management, plant operations

and maintenance management, owner project management, and contractor

project management:

Common Messages for All Audiences:

Project success is highly sensitive to the level of startup success.

Startup success is driven by the degree or extent of planning forstartup.

Startup success requires a commitment to startup planning by allthree management entities: business unit, plant operations, andowner project management.

Manufacturing Business Unit Management:

The manager of the business unit must take the lead in definingstartup objectives.

Plant Operations & Maintenance Management:

Plant operations and maintenance personnel are responsible formany important startup planning activities in front-end engineeringand detailed design phases.

Owner Project Management:

The owners project manager is the overseer of the startup planningprocess and is fundamentally accountable for startup planningand success.

9Introduction

Barriers to Successful Startup Planning

Startup planning is not easy and has many barriers. Overall, 140

barriers to the 45 activities have been identified. These barriers can be

grouped by common themes:

Ineffective communication

Schedule pressures

Lack of personnel, information, or other resources

Denial of potential problems

Planning efforts being applied too late

Challenges (or barriers) to startup planning activities in the early

phases of projects are dominated by denial of potential problems and lack

of information or other resources. Challenges (or barriers) to startup

planning activities during detailed design are dominated by communication

problems. Everyone involved in startup planning should be aware of the

challenges and barriers to effective planning, and those who are either

accountable or responsible for the planning activities should make special

efforts to confront these challenges to minimize their impact to the project.

All challenges must be treated in a deliberate and focused manner, or the

impacts can be substantial.

Overview of Tools

The Startup Planning Model is supported with a total of 26 tools. As

shown in Table 1.3, many of the 26 tools support startup planning

activities in either the front-end engineering or detailed design phases,

which are critical opportunities for startup planning.

10

Introduction

While all 26 tools (listed in Table 1.4) are important and can facilitate

startup planning in some beneficial way, arguably, two tools standout as

most important and can be used to substantially improve the quality of

startup planning. These two tools are the SuPER tool (Tool 1-A-2) for

evaluating the degree of startup planning, and the Startup Execution Plan

(Tool 3-B-2), a mechanism for integrating all startup planning

developments.

The SuPER Tool

Effective startup planning requires a thorough, well-planned, and

monitored approach. In order to accomplish this, the Startup Planning

Evaluation Rating (SuPER) Tool was developed to enable the tracking and

monitoring of startup planning efforts. The concept is simple. At any point

in the project execution process, startup planners should collectively

assess the current level of startup planning and compare that level with the

targeted planning level (also provided in Tool 1-A-2). In this way,

managers can easily assess the level of startup planning and identify

planning deficiencies.

Table 1.3. Startup Planning Tools by Phase

Project Phase No. of Tools

1: Requirements Definition & Technology Transfer 2

2: Conceptual Development & Feasibility 3

3: Front-End Engineering 12

4: Detailed Design 8

5: Procurement 0

6: Construction 0

7: Checkout & Commissioning 1

8: Initial Operations 0

11

Introduction

Tool # Tool Name

1-A-1 Plot of Startup Planning vs. Startup Success

1-A-2 Startup Planning Assessment Tool

2-A Integration of Startup Planning into Conceptual ProjectSchedule

2-B Example of Startup Cost Estimating Sheet

2-C Financial Risk Assessment Checklist

3-A Checklist of Typical Startup Objectives

3-B-1 Transition from Construction to Operations

3-B-2 Sample Table of Contents for the Startup Execution Plan

3-B-3 Checklist of Startup Quality Gates

3-C-1 Sample Organization Chart

3-C-2 Sample RACI Chart

3-D Guidelines for Defining Startup Systems

3-E-1 P&ID Flowchart

3-E-2 P&ID Checklist of Information Elements

3-F Startup Risk Checklist

3-H Common Startup Needs Supported by Suppliers

3-I Checklist of Typical Startup Activities

4-B Checklist of Change Impacts on Startup

4-E Common Needs for Pre-Shipment Testing

4-H Example of Startup System Coding System

4-J-1 Example of Table of Contents of an Operator TrainingPlan

4-J-2 Example of Table of Contents of an Operator Manual

4-K Example of Table of Contents of a Spare Parts Plan

4-L-1 Example of System Turnover Plan Table of Contents

4-L-2 Examples of Turnover Criteria Checklists andCertifications

7-B Checkout and Commissioning Checklist

Table 1.4. Startup Planning Tools

12

Introduction

The numerical rating scheme can serve as a useful and informative

incentive for further startup planning. These weightings incorporated into

the SuPER tool are based on an analysis of actual project startups and the

respective degrees of planning found in both successful and unsuccessful

startups. In addition, the SuPER tool has been demonstrated on an actual

industry project and found to be very useful in monitoring the overall

startup planning process.

How do SuPER scores correlate to startup success indices? To conduct

this analysis, final SuPER scores for 20 actual startups were estimated and

analyzed with associated startup success indices. The regression analysis

indicates a strong relationship between planning and startup success and

serves to further validate the startup planning model, and in particular, the

SuPER tool.

Startup Execution Plan

A Startup Execution Plan should be developed and treated on every

project as the document with which to integrate all startup planning

activities. Beyond the guidance contained in activity profile 3-B, the

development of the Startup Execution Plan is facilitated with three tools

contained in the startup planning model:

Tool 3-B-1: Schedule Drivers and Phase Transitions: a reminder that

planning must recognize the work packaging paradigms

unique to the various project phases and the associated

transitions between each.

Tool 3-B-2: Sample Table of Contents for the Startup Execution Plan:

guidance on the types of information that should be

addressed in the execution plan.

Tool 3-B-3: Checklist of Startup Quality Gates: guidance on the

Quality Gate concept and how to exploit it for the benefit

of startup planning.

13

Introduction

Similarities with Constructability

The Planning for Startup Model bears a close resemblance to CIIs

Constructability best practices in several ways:

Up-front planning is required for optimal down-stream execution.

Planning must be viewed as a front-end investment with acorresponding down-stream payoff.

Planning is an integrative activity, requiring the pulling together ofthe knowledge, skills, and talents of many project participants.

15

A. Phase: Requirements Definition and Technology Transfer

B. Key Concepts: Business unit management and key project leaders must be equallycommitted to the development of a startup plan as a key element of an integratedoverall Project Execution Plan. Operations management must be convinced toprovide startup resources throughout the project planning process.

C. Deliverables: A document that clearly identifies project goals, major risks, and keyresponsibilities. Key startup expertise should be identified, especially experiencedoperations personnel, to interface early-on and throughout critical project phases.

D. Motive/Rationale: Adequate support and early input from operations is crucial tostartup success, along with mutual understanding of project-specific startup needsand risks.

E. Responsibility: Business Unit Manager or delegateAccountability: Business Unit Manager or delegateConsult: Owner Project Manager, Plant ManagerInform: Planner/scheduler

F. Quality Gate/Sequencing Constraints: This is not a quality gate. However, seniorplant management commitment to startup must exist before effective startup planningcan occur.

G. Basic Steps: Understand the project business plan and the technology transfer aspect;identify all key owner manufacturing representatives; understand the criticality of theproject schedule; and understand the order-of-magnitude of planning efforts requiredfor a successful startup.

H. Tools Needed/Provided:

Provided: graphical plot of project success vs. startup success; SuPER tool for periodicevaluation of startup planning efforts

Needed: tools for assessing and ensuring management commitment to needed startupresources

I. Challenges to Successful Implementation:

Limited manufacturing resources available at this phase

Current paradigms on planning and manning for startup

1-A: Ensure Senior Management Commitment toIntegrated Startup Planning and Needed Resources

Phase 1: Requirements Definition and Technology Transfer

16

Tool

P

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x

Startup Success Index

1.0

0.9

0.8

0.7

0.6

0.5

0.4

0.3

y = 0.55x +0.29

R2 = 0.56

0.3 0.4 0.5 0.6 0.7 0.8 0.9 1.0

Tool 1-A-1. Project Success vs. Startup Success (n=23)

Phase 1: Requirem

ents Definition and T

echnology Transfer

17

Tool

Project:

Evaluator: Date:

No Minimal With With Minor ThoroughlyAct. No. Planning Activity Execution Effort Deficiencies Deficiencies Executed Score

1-A Ensure senior management commitment to SU planning 0 1 3 4 5 _____

2-A Seek a realistic forecast of startup duration 0 1 1 3 4 _____

2-B Estimate startup costs 0 0 1 1 1 _____

2-C Recognize the impact of startup on project economics 0 1 3 4 5 _____

Definition, Concept, & Feasibility Phase Total 0 3 8 12 15 _____

3-A Establish startup objectives 0 1 2 4 5 _____

3-B Develop the Startup Execution Plan 0 1 3 4 5 _____

3-C Make the startup team assignments 0 0 1 2 3 _____

3-D Identify startup systems 0 1 3 4 5 _____

3-E Acquire Operations & Maintenance input 0 1 1 3 4 _____

3-F Assess startup risks 0 1 1 2 2 _____

3-G Analyze startup incentives 0 0 1 1 1 _____

3-H Identify startup procurement requirements 0 1 1 2 2 _____

3-I 4-N Refine/update the startup budget & schedule 0 0 1 1 1 _____

3-J 4-O 6-A Update the Startup Execution Plan 0 1 3 4 5 _____

Front End Engineering Phase Total 0 7 17 27 33 _____

Total This Sheet: _____

Tool 1-A-2: The SuPERTOOL: Startup Planning Evaluation Rating vers. 3.0 (Sheet 1 of 2)

Phase 1: Requirem


echnology Transfer

18

Tool

Tool 1-A-2: The SuPERTOOL: Startup Planning Evaluation Rating vers. 3.0 (Sheet 2 of 2)Project:

Evaluator: Date:

No Minimal With With Minor ThoroughlyAct. No. Planning Activity Execution Effort Deficiencies Deficiencies Executed Score

4-A Address startup issues in team building sessions 0 0 1 1 1 _____

4-B Assess & communicate startup effects from changes 0 0 1 1 1 _____

4-C Plan for supplier field support of startup 0 0 1 1 2 _____

4-D Include startup in the project CPM schedule 0 1 2 3 4 _____

4-E Plan for startup QA/QC 0 0 1 1 1 _____

4-F Refine startup team organizn & responsbty assignmts 0 1 1 3 4 _____

4-G Acquire additional O&M input 0 1 1 2 3 _____

4-H Indicate startup system numbers on engr. deliverables 0 1 1 2 3 _____

4-I 6-F Refine/update startup risk assessment 0 1 1 1 2 _____

4-J Plan operator/maintenance training 0 1 2 3 4 _____

4-K Develop startup spare parts plan 0 0 1 1 1 _____

4-L Develop system turnover plan 0 1 1 3 4 _____

4-M Develop & communicate startup procedures & PSM 0 1 1 3 4 _____

5-A Qualify suppliers for startup services 0 0 1 1 1 _____

5-B Refine/update startup spare parts plan & expedite 0 0 1 1 1 _____

5-C Implement procurement QA/QC plan 0 0 1 1 1 _____

Detailed Design & Procurement Phase Total 0 8 18 28 37 _____

6-B Conduct Construction-Startup team building 0 0 1 1 1 _____

6-C Refine/update startup integrated CPM schedule 0 1 2 3 4 _____

6-D Conduct operator/maintenance training 0 1 1 3 4 _____

6-E Implement field QA/QC plan 0 0 1 1 1 _____

6-G Transition to startup systems-based execution 0 1 2 4 5 _____

Construction Phase Total 0 3 7 12 15 _____

Maximum Total: All Phases 0 21 50 79 100 _____

Total This Sheet: _____

Total Sheet 1: _____

GRAND TOTAL:

Phase 1: Requirem


echnology Transfer

19

Tool

Tool 1-A-2. SuPER Score Target Profile

SuPERScore

Thorough Planning

No Planning

100

90

80

70

60

50

40

30

20

10

0

Project Phases

Definition,Concept &Feasibility

Front-EndEngineering

DetailedDesign

Construction Checkout,Commissioning,

& InitialOperations

Phase 1: Requirem


echnology Transfer

21

A. Phase: Concept Development and Feasibility

B. Key Concepts: An appropriate duration for startup activities must be included in theproject plan at this point.

C. Deliverables: Integrated project milestone schedule showing startup duration.

D. Motive/Rationale: Since startup duration forecasts are usually treated as commitments,they should be carefully established and adequately reflected in the overall projectschedule.

E. Responsibility: Construction Project Manager, Startup Manager, Planner/SchedulerAccountability: Owner Project Manager

Consult: Manufacturing Operations Representative, Construction ManagerInform: Plant Manager

F. Quality Gate/Sequencing Constraints: Not a quality gate

G. Basic Steps:

1. In estimating the startup duration, consider the following:

Business and marketing plan; technology transfer package.

Historical basis (have similar projects been completed that can provide insight tostartup durations for this project?).

Type of process (is the process batch, continuous, other).

Size and complexity of unit to be started.

Number of startup systems and number of pieces of equipment.

Availability of check-out and startup personnel.

Extent of effort in qualification and validation activities.

Seasonal impacts, including special curing/drying requirements.

Risk assessment.

Pretreatment (i.e., catalyst).

Environmental constraints during startup (how long not in compliance?).

2. After taking these issues into consideration, the planner should determine whetheror not to include any contingency in the estimated duration.


Needed: corporate database of historical durations


Startup durations are often under-estimated, and occasionally overlooked altogether.

2-A: Seek a Realistic Forecast of Startup Duration

Phase 2: Conceptual Development and Feasibility

22

2-B: Estimate Startup Costs


B. Key Concepts: Seek to recognize all startup expenses that will be incurred.

C. Deliverables: Order of magnitude cost estimate for startup activities

D. Motive/Rationale: This step will help ensure that overall project budgets contain anadequate allowance for startup prior to appropriation approval. This estimate canalso serve as input to analyzing startup impact on overall project economics.

E. Responsibility: Startup Manager, Planner/Scheduler, EstimatorAccountability: Owner Project ManagerConsult: Manufacturing Operations RepresentativeInform: Plant Manager

F. Quality Gate/Sequencing Constraints: Not a quality gate

G. Basic Steps:

1. Ensure that the best possible basis documentation is used.

2. Consider or include the following in the startup cost estimate:

A well-defined basis for beginning and ending points, such that meaningful costestimates can be included for startup operations.

Pre-startup costs for startup planning and training.

Factors such as work-hours, raw material, and auxiliary material.

Agreed-upon endpoint for raw material charges (usually when quality and salableproduct is being made).

An agreed-upon endpoint for work-hour charges.

Capitalization vs. expensing of startup costs (policies vary).

Manner of charging for punch list items and minor plant modifications (e.g., chargedto either construction or startup).

Adequate contingency for unknowns.

3. Ensure compatibility between startup cost estimate and planned duration.


Provided: example of startup cost estimate sheet

Needed: historical database of startup costs by project type and size


Uncertain basis information (e.g., PFDs and P&IDs)

Little credible historical data

Variable accounting practices for tracking these costs

Present paradigm: this activity is rarely done this early, if at all


23


B. Key Concepts: Company senior management must recognize that startup can have amajor impact on project duration, overall project costs, and overall project economics.

C. Deliverables: Detailed statement pertaining to an estimate of potential financial riskassociated with a delayed or unsuccessful startup.

D. Motive/Rationale: Early on-line plant operation generates revenue sooner, reducesinterest expense, and reduces startup expense. Overly optimistic estimates of projectpayback can cloud a realistic sense of financial risk.

E. Responsibility: Manufacturing Operations Representative, Contractor ProjectManager, Startup Manager

Accountability: Owner Project ManagerConsult: Planner/Scheduler, EstimatorInform: Plant Manager

F. Quality Gate/Sequencing Constraints: This activity should be treated as a quality gate.

G. Basic Steps:

1. The startup team must be proficient with the chosen technology in order tosuccessfully deal with the emerging problems associated with starting up newtechnology.

2. Project venture objectives must be clearly understood for optimal project andstartup planning so that venture economics can be realized.

3. Conduct an economic analysis of startup costs versus early/on-time/late productdelivery. In conducting sensitivity analyses of what-if scenarios, take thefollowing questions into consideration: Is the product in short supply? How muchproduct can be sold in the first year? What are the lost profits for each day the plantis not on-stream with salable product? What is the capital versus profit trade-off?Should extra capital be expended to ensure on-time product with adequatequality? Has the project team focused on optimizing engineering, construction,and startup in a global sense vs. suboptimization?

4. This evaluation must be repeated during each of the pre-startup phases.


Provided: financial risk assessment checklist

Needed: video: Trip to Abilene


Such reality checks are usually politically sensitive and difficult to accept.

2-C: Recognize the Impact of Startup on Project Economics


24

Phase 2: Conceptual D

evelopment and Feasibility

Tool

Tool 2-A: Integration of Startup Planning into Conceptual Project Schedule

2 Concept. Devp.& Feasibility

Realistic ScopeStartup Planning

3 Front EndEngineering

Startup PlanningObjectiveExec. PlanID Systems

4 Detailed DesignStartup Planning & Implementation

Detailed Plans

5 ProcurementStartup Planning & Implementation

Supplier Integration

6 ConstructionStartup Planning & Implementation

Transitions to Systems

7 Ck Out & CommgStartup Implementation

Verification Testing

1 Req. Def.& Tech. Trans.

Startup PlanningCommitment

25



Tool

Tool 2-B: Example of Startup Cost Breakdown Structure (page 1 of 4)

Requirements Definition & Technology Transfer1 Engineering efforts

Phase Subtotal

Conceptual Development & Feasibility2 Engineering efforts

3 Manufacturing/Operations efforts

4 Maintenance efforts

5 Outside services: labs, consultants, certifications

Phase Subtotal

Front-End Engineering6 Engineering efforts




Phase Subtotal

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Detailed Design11 Manufacturing/Operations efforts



14 Training program development

Phase Subtotal

Procurement15 Engineering efforts

16 Construction efforts



19 Outside services: suppiers, labs, consultants, certifications

20 Training program development

21 Materials & equipment expense

22 Utilities

23 Feedstock, catalyst, raw material, product handling

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Construction24 Engineering efforts





29 Training program development and implementation

30 Materials & equipment expense

31 Utilities

Phase Subtotal

Check-out & Commissioning32 Engineering efforts





37 Training program

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Tool


Check-out & Commissioning (continued)38 Material & equipment expense

39 Utilities


Phase Subtotal

Initial Operations41 Engineering efforts





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Tool

Risk Assessment Not# Risk Issues Low Med. High Uncertain Applicable Comments

A Organizational ExperienceOwner/Contractor Startup Mgr.Owner/Contractor Startup TeamOwner/Licensor Pilot Plant TeamKey Supplier(s)Other:

B Process TechnologyDegree of DefinitionNew or ProvenComplexityPilot Plant ExperienceAutomation & Controls ExperienceEquipment/System RedundanciesOther:

C Market for ProductMarket WindowDemand LevelBreak-Even Production LevelSales Price Elasticity (Competion)Market Form AcceptanceMarket Share (Loss or Gain)Magnitude of Profit Loss if LateOther:

Note: This checklist is not all-inclusive, but is intended primarily to stimulate discussion.

Tool 2-C: Startup Financial Risk Assessment Checklist (page 1 of 2)

30



Tool

Risk Assessment Not# Risk Issues Low Med. High Uncertain Applicable Comments

D Schedule IssuesLevel of Project Scope DefinitionRealistic Milestone DatesStatus of Long Lead ProcurementPermitting Delay ImpactsEffect of IncentivesLevel of Liquidated DamagesLabor Probs./Coll. Bargaing AgreemtOther:

E Funding IssuesRealistic BudgetRealistic Contingency & Eff. Mgmt.Expected Labor ProductivityOther:

F Existing Plant/SiteAdequacy of UtilitiesAccessibility/CongestionImpact to Ongoing OperationsOther:

G MiscellaneousHandling of Hazardous MaterialOff-Spec Product DisposalQuality of Startup PlanningInherent Safety HazardsOther:

Note: This checklist is not all-inclusive, but is intended primarily to stimulate discussion.

Tool 2-C: Startup Financial Risk Assessment Checklist (page 2 of 2)

31

A. Phase: Front-End Engineering

B. Key Concepts: Startup success requires that startup objectives be thoroughly definedand communicated. Alignment of startup objectives between business unit, plantoperations, and project management must be sought and periodically monitored.

C. Deliverables: Listing of specific and measurable startup objectives

D. Motive/Rationale: In order to achieve startup success, it must be defined specificallyfor each project.

E. Responsibility: Business Unit Manager, Owner Project Manager, Plant ManagerAccountability: Business Unit ManagerConsult: Contractor Project ManagerInform: Manufacturing Operations Representative, Planner/Scheduler

F. Quality Gate/Sequencing Constraints: This activity is not a quality gate.

G. Basic Steps:

1. Assign the role of Startup Manager.

2. Assemble key personnel responsible for formulating startup objectives.

3. Propose, discuss, and evaluate startup objectives.

4. Thoroughly define startup objectives and establish associated priorities.

5. Document and communicate startup objectives throughout the project team.


Provided: listing of typical startup objectives.


Lack of understanding of startup objectives and their importance on the part of thebusiness unit.

Misalignment of startup objectives between project management and business unitpersonnel.

3-A: Establish Startup Objectives

Phase 3: Front-End Engineering

32


B. Key Concepts: The Startup Execution Plan must be a part of the overall ProjectExecution Plan. It should be formally and thoroughly developed.

C. Deliverables: A first issue of the Startup Execution Plan that addresses all importantaspects of startup.

D. Motive/Rationale: The Startup Execution Plan provides a framework for systematicintegrated planning necessary to ensure successful implementation.

E. Responsibility: Manufacturing Operations Representative, Startup ManufacturingOperations Representative, Project Team

Accountability: Owner Project ManagerConsult: Contractor Project Manager, Planner/SchedulerInform: Plant Manager

F. Quality Gate/Sequencing Constraints: This activity is not a quality gate, but shouldoccur early in Front-End Engineering.

G. Basic Steps:

1. Gather key contributors to the Startup Execution Plan and discuss contents anddrafting responsibilities. The Startup Plan should include a detailed listing of allstartup objectives (see activity 3-A). The Startup Plan should establish the criteriafor the following: startup philosophy; commitment to startup quality gates;identification of startup systems on engineering documents; identification ofneeded resources for startup execution and operations; startup responsibilities(including those of suppliers and operators); conceptual schedule, addressingprocesses, areas, utilities, etc.; operator training needs; startup raw material needs;identification of startup risks; plans for check-out/commissioning and initialoperations. Considerations in developing the startup philosophy include productpriorities, schedule phases and sequencing, production ramp-up curve, andintegration with shutdowns, along with other schedule drivers.

2. Draft the respective parts or components of the plan.

3. Gather as a team, review all component drafts and refine.

4. Issue the Plan, and begin to identify needs for refinement.


Provided: discussion on sequence drivers, sample Table of Contents for the StartupExecution Plan, checklist of Startup Quality Gates


Resource/expertise constraints at this point in the project life

3-B: Develop the Startup Execution Plan


33


B. Key Concepts: Identify all the key roles and responsibilities needed in executing asuccessful startup. Recognize the need for these critical resources.

C. Deliverables: Organization chart and RACI chart addressing startup resources. (ARACI chart is a matrix that assigns responsibility, accountability, those to consult,and those to inform on an activity-by-activity basis.)

D. Motive/Rationale: To provide the needed resources to carry out startup activities; andto encourage early participation in startup planning by operations, contractor, andsupplier organizations.

E. Responsibility: Owner Project Manager, Manufacturing Operations Representative,Startup Manager

Accountability: Owner Project ManagerConsult: Plant Manager, Contractor Project ManagerInform: Planner/Scheduler

F. Quality Gate/Sequencing Constraints: This is not a quality gate. However, the startuporganization chart should be developed near the end of the Front-End Engineeringeffort.

G. Basic Steps:

1. Consult the Startup Execution Plan, refining the draft organization chart. Theorganization chart must be compatible with the RACI table.

2. Put names on the organization chart, considering areas requiring special expertise.Consider having the Safety Manager and the QA/QC Manager report to both theConstruction Manager and the Startup Manager.

3. Communicate the assignments.

4. Review responsibilities with all assignees; get feedback; resolve responsibilityquestions.

5. Identify contractor and supplier startup responsibilities.


Provided: sample organization chart, sample RACI chart, definitions of titles androles


Availability of needed personnel to accomplish this

Defining team roles and responsibilities too late in the project

Failure in recognizing needed resources

3-C: Make Startup Team Assignments


34


B. Key Concepts: Breakdown the entire project into major startup systems in order tofacilitate construction and startup planning and control. A detailed breakdown intosubsystems will occur later in the detailed design phase.

C. Deliverables: Listing of startup systems

D. Motive/Rationale: To identify systems for scoping, planning, and sequencing startupactivities.

E. Responsibility: Contractor Project Manager, Startup Manager, Project TeamAccountability: Owner Project ManagerConsult: Manufacturing Operations RepresentativeInform:

F. Quality Gate/Sequencing Constraints: This is not a quality gate. However, all startupsystems should be identified by the completion of Front-End Engineering.

G. Basic Steps:

1. Consult the Startup Execution Plan and use it as a basis for this activity.

2. Recognize all contracting strategy limitations of the project.

3. Use P&IDs to breakdown the plant into startup systems. Get early input fromoperations, process design, controls, construction, and maintenance.

4. Indicate startup system boundaries on the P&IDs.

5. Conduct cross-checks: will operations and control systems support the startuplogic? Will the construction sequence support the startup logic? Will environmentaltesting criteria support the startup logic? Will available owner staffing support thestartup logic?

6. Establish the listing of startup systems.


Provided: sample listing of startup systems


Incomplete or poorly defined project definition

Lack of knowledge of the plant operations plan

Lack of available owner operations and maintenance personnel

Incomplete or unfrozen P&IDs

Late selection of owner furnished equipment

3-D: Identify Startup Systems


35


B. Key Concepts: A complete front-end package must include input from Operations andMaintenance. Much of this input will either directly or indirectly facilitate startup.Buy-in by O&M personnel is critical to project success.

C. Deliverables: O&M comments on PFDs, P&IDs, plot plans, equipment lists; discussionand documentation of O&M needs from Engineering and Procurement.

D. Motive/Rationale: Effective O&M input during front-end engineering is required forstartup success.

E. Responsibility: Manufacturing Operations Representative, Startup ManagerAccountability: Owner Project ManagerConsult: Plant Manager, Contractor Project ManagerInform: Planner/Scheduler

F. Quality Gate/Sequencing Constraints: This activity is not a quality gate, but keydocuments for detailed design (i.e., P&IDs, plot plans, equipment lists, and equipmentlayouts) should not be issued without adequate input.

G. Basic Steps:

1. Conduct O&M input meetings, addressing the following issues:

Specific maintenance requirements: preferred suppliers, spares, access needed,and supplier data requirements.

Specific operation requirements: process control, operator preferences, andaccess requirements.

Specific checkout requirements: safety, acceptance criteria, staffing, interlocks,hazards, communication, and lockouts.

Specific startup requirements: system sequence, timing, utilities needed, safetyprocedures, and environmental requirements.

Output from the meetings will be in the form of a list of critical issues that will befollowed-up on to ensure incorporation into the front end package.

2. Plan for continuing involvement of O&M in startup planning.


Provided: P&ID flowchart, P&ID checklist of information elements

Needed: Operator ergonomic checklist, checklist of accessibility needs, checklist ofmaintenance equipment & facilities needs


Lack of adequate/available plant staffing

Little training and few tools to help in reviews

3-E: Acquire Operations & Maintenance Input


36


B. Key Concepts: Startup risks must be assessed early-on in order to minimize theirimpact. Documented startup lessons learned can be very helpful in this effort.

C. Deliverables: A listing of potential risks to successful startup and associated estimatesof impact.

D. Motive/Rationale: Overlooked risks can severely impact startup schedule, costperformance, and other measures of success. Early detection efforts are needed inorder to reduce or contain these loss potentials.

E. Responsibility: Manufacturing Operations Representative, Startup ManagerAccountability: Owner Project ManagerConsult: Contractor Project Manager, Planner/Scheduler, Process LicensorInform: Plant Manager

F. Quality Gate/Sequencing Constraints: This activity is not a quality gate, but shouldoccur before approval of appropriation request.

G. Basic Steps:

1. Consult the Startup Execution Plan.

2. Review startup lessons learned to date.

3. Identify risks associated with the process technology.

4. Identify risks associated with the controls automation.

5. Address degrees of redundancy and planned levels of maintenance.

6. Identify risks associated with environmental concerns.


Provided: startup risk checklist

Needed: pilot plant data, listing of startup risk management strategies and contingencyplans


Senior management is often uncomfortable with documented risks.

Concept of risk involves difficult notions of probability.

Often there is no in-house expertise to assess risk; must therefore be purchased asa service and is thus easily dismissed as a non-essential luxury.

Desire to remain optimistic and to move forward.

Little or no tracking of startup lessons learned.

3-F: Assess Startup Risks


37


B. Key Concepts: Consider incentives as a way to improve startup performance.

C. Deliverables: A recommendation to senior management on whether or not toimplement an incentive system for startup.

D. Motive/Rationale: Incentive systems can increase the likelihood of overall startupsuccess by motivating project personnel to even greater performance.

E. Responsibility: Owner Project Manager, Contractor Project ManagerAccountability: Owner Project ManagerConsult: Startup ManagerInform: Manufacturing Operations Representative, Planner/Scheduler

F. Quality Gate/Sequencing Constraints: Not a quality gate, but should be done priorto budget approval.

G. Basic Steps:

1. Consult the Startup Execution Plan as the basis. Assess any special justification foran incentive system, such as critical schedule or environmental performance.

2. Propose more than one approach for analysis.

3. Evaluate proposed incentive systems, thoroughly analyzing both advantages anddisadvantages. Anticipate all side-effects, including those on suppliers, contractors,and operators.

4. The keys to successful startup incentive systems include the following:

- well-defined performance metrics

- focus on overall team performance, not just that of the contractor

- ensure that startup incentives are consistent and compatibile with any overallproject incentive systems; avoid competing or conflicting incentive systems

- dont key incentives to mechanical completion

5. Thoroughly plan and document the incentive system. Ensure that goals are clearand measurable. Ensure that benefits are meaningful.

H. Tools Needed/Provided: none


Lack of clear, measurable performance objectives

Plans that accomplishing one set of objectives at the expense of others

Change in key personnel or modifications to incentive plans mid-way through theproject

3-G: Analyze Startup Incentives


38


B. Key Concepts: Ensure that startup needs are incorporated into project procurementplans.

C. Deliverables: A procurement plan that includes startup needs.

D. Motive/Rationale: Ensure that suppliers support startup needs and objectives.

E. Responsibility: Contractor Project Manager, Startup Manager, Procurement ManagerAccountability: Owner Project ManagerConsult: Plant ManagerInform: Planner/Scheduler

F. Quality Gate/Sequencing Constraints: This is not a single quality gate, but must bedone prior to issuance of inquiries and the narrowing down of bidder lists.

G. Basic Steps:

1. Prepare a list of startup items than need to be procured and integrate startupprocurement with overall procurement activities.

2. Establish procurement responsibilities (owner, engineer, etc.).

3. Identify long-lead items (to ensure timely deliveries and thereby avoid scheduleimpacts on startup dates). Establish if early release of funds will be required.

4. Identify preferred material items (from Operations and Maintenance).

5. Address startup aspects of bidder qualification, such as pre-shipment testing andqualification capabilities, needs for startup support, training, expediting, etc.

6. Identify preferred suppliers and contractors. Visit and prequalify new productsuppliers.

7. Address the issues of modularization and preassembly, processing of supplier data,spare parts, and the scope and responsibility for pre-shipment testing.


Provided: listing of common startup needs supported by suppliers

Needed: database of performance record of previous suppliers


Little or no feedback on startup procurement matters

Non-approved subcontractors

Inability to prequalify suppliers in the public sector

3-H: Identify Startup Procurement Requirements


39


B. Key Concepts: Utilizing the most recent information, update both the startup budgetand schedule and reflect these developments in the Appropriation Request.

C. Deliverables: Updated startup budget and schedule

D. Motive/Rationale: Planning tools should be kept current, in this case, in order toprovide the best possible forecasts for the Appropriation Request.

E. Responsibility: Startup Manager, Planner/Scheduler, EstimatorAccountability: Contractor Project ManagerConsult: Owner Project Manager, Manufacturing Operations RepresentativeInform:

F. Quality Gate/Sequencing Constraints: This activity is not a quality gate, but must bea high priority.

G. Basic Steps:

1. Use the Startup Execution Plan and previous startup planning steps in the Front-End Engineering phase as the basis for review and refinements.

2. Ensure that all major startup activities and cost factors are identified (such as workhours, raw materials, spare parts, etc.), and consider associated costs such as traveland subsistence.

3. Estimate the cost of training operators.

4. Conduct final budget and schedule reviews with appropriate personnel and issuerevised documents.


Provided: checklist of typical startup activities


Lack of sufficient resources and information to develop credible estimates andschedules

Current paradigms in which this activity is given low priority

3-I: Refine Startup Budget & Schedule


40


B. Key Concepts: The Startup Execution Plan should be updated as new projectinformation becomes known. As stated previously, this should be a part of the overallProject Execution Plan and should be formally and thoroughly developed. It shouldbe formally issued as part of the Front-End Engineering Package.

C. Deliverables: A revised, updated Startup Execution Plan that addresses all importantaspects of startup. This should be included as part of the Front-End EngineeringPackage.

D. Motive/Rationale: The Startup Execution Plan provides a framework for systematicintegrated planning necessary to ensure successful implementation.

E. Responsibility: Startup ManagerAccountability: Contractor Project ManagerConsult: Owner Project Manager, Manufacturing Operations Representative, Process

Licensor, Project TeamInform: Business Unit Manager, Plant Manager, Planner/Scheduler

F. Quality Gate/Sequencing Constraints: This update should be treated as a quality gate,occurring as a final step in Front End Engineering.

G. Basic Steps:

1. Build upon and expand the previously developed Startup Execution Plan (activity3-B). Incorporate the most recent startup budget and schedule (activity 3-I),startup procurement requirements (activity 3-H), startup incentive systems (activity3-G), assessment of startup risks (activity 3-F), listing of startup systems (activity3-D), startup team assignments (activity 3-C), and any other salient information.

2. Reevaluate the use and effectiveness of startup quality gates.

3. Draft any new parts or components of the plan, such as the plans for check-out/commissioning and initial operations, and procedures for problem identificationand resolution during check-out/commissioning.

4. Gather as a team, review all component drafts and refine.

5. Re-issue the Plan as a base document for the detailed design phase.


Provided: see activity 3-B


Resource/expertise constraints at this point in the project life

3-J: Update the Startup Execution Plan


41


Tool

Tool 3-A: Listing of Typical Startup Objectives (page 1 of 8)

1. Product Quality: Product quality meets or exceeds qualitygoals as established at authorization.

2. Product Quantity: Production quantity rate is at or abovethat established at project authorization.

3. Schedule Performance: Startup duration is at or below thatduration planned for at authorization.

4. Safety Performance: No reportable injuries or incidents duringstartup (consistent with overall projectobjectives).

5. Environmental Performance: All environmental targets are met. Thereare no reportable releases or spills duringstartup.

6. Operations Team Performance: Operations team is thoroughly preparedfor all challenges it may encounter priorto commercial operations.

7. Impact to On-Going Operations: Minimal impact to on-going operations;no unplanned impacts to on-goingoperations.

8. Level of Effort Required by the Startup Team: Actual startup work hours and resourcesare at or below planned level of effort.

42


Tool


Beyond defining startup objectives, measuring and tracking startup success from project to

project can increase the likelihood of future startup success by motivating teams to ever-

improving levels of performance.

As shown above, research indicates that a successful startup requires successful performance

in eight different areas:

Product quality

Product quantity

Schedule performance

Safety performance

Environmental compliance

Operations team performance

Impact to ongoing operations

Level of stress experienced by startup team

With the use of criteria performance scores and criteria importance weightings, these eight

criteria can be integrated into a single startup success index score. Such a score allows for ready

comparisons between startups, company-wide benchmarking, and even industry-wide

benchmarking.

A criterion performance score is a quantitative measure of how a particular startup performs

relative to an established target associated with one of the eight criteria. For example, as shown

in Table 3-A.2, with respect to the impact of a startup to on-going operations, five levels of

relative performance or satisfaction have been established. Similarly, as shown in Table 3-A.3,

five levels of relative satisfaction have been established for each of the eight startup success

criteria.

A criteria importance weighting is a quantitative measure of how important a particular

success criterion is relative to all other seven criteria. Each criterion can be assigned one of five

levels of relative importance:

Most important

Above average importance

Average importance

Below average importance

Least important

43


Tool


By weighting the least important criteria with a value of one, criteria of below average

importance with a value of two, etc., normalized criterion importance weightings can be derived

by determing the relative contribution of each criteria to the sum total of importance weightings

for all eight criteria. This is best illustrated with an example, as presented in Table 3-A.4.

In this way, importance weightings can be determined for each startup success criterion and

these will be consistent on a relative basis (e.g., the same weight-ings for all criteria will result

if all are assigned the same level of importance).

Fig. 3-A.1 graphically depicts the average importance weightings for the eight criteria based

on 23 actual startups analyzed. The weightings of all eight criteria fall into a relatively tight

range: between 0.10 and 0.14. Thus, at least for the startups analyzed, on average, all eight

criteria are nearly equally meaningful to startup success.

Now, given the availability of both criteria performance scores and criteria importance

weightings, a single startup success index score can be computed by simply multiplying one by

the other and summing up for all eight criteria. (Criteria performance scores should be divided

by 5 in order to achieve a 0 to 1 scale.)

Level of Satisfaction Impact to Ongoing Operations Criteria PerformanceScore

Extremely satisfied No impact to ongoing operations 5

Very satisfied Minimal impact to ongoing operations 4

Satisfied No unanticipated impacts to on-going operations 3

Dissatisfied Ongoing operations were impacted 2

Very dissatisfied Ongoing operations were significantly impacted 1

Table 3-A.2: Performance Scores Associated with Criterion

Impact to Ongoing Operations

44

Phase 3: Front-End E

ngineering

Tool


Table 3-A.3. Startup Success Criteria Performance and Scores

q Dissatisfied(2)

Product quality metspecification most ofthe time but theamount of off-specmaterial was higherthan expected.

Plant did not meetproduction rates set atproject authorization.

The startup durationexceeded plan andmeeting the schedulerequired heroic effortson the part of thestartup team.

Satisfaction Level (Score)

q ExtremelySatisfied (5)

Product qualityconsistentlyexceeded projectgoals.

Production ratesconsistentlyexceeded projectgoals.

The startup durationwas significantly lessthan estimated. Theprocess was on-linesooner thanexpected.

q Very Satisfied(4)

Product quality goalswere consistently met.

Production rates metproject goals.

The startup durationwas as planned.

q Satisfied(3)

Product quality goalswere met withexpected amounts ofoff-spec material.

Production rateswere marginally lessthan planned butcustomers were notaffected.

The startup durationwas as planned butmeeting the schedulerequired extra levelsof labor and/ormaterials.

q VeryDissatisfied (1)

Product quality wasmet only withsignificant processand constructionrework.

Production rates weresignificantly lowerthan planned andrequired significantconstruction rework.

The startup durationfar exceeded theoriginal plan.

Success Criterion

Product QualityPerformance

Product QuantityPerformance

SchedulePerformance

45


ngineering

Tool



Success Criterion

SafetyPerformance

EnvironmentalPerformance

Operations TeamPerformance

q Dissatisfied(2)

The startup had one ormore reportableincidents or a highernumber of minor andpreventable medicalincidents.

Operations Team wasnot prepared for plantoperations andrequired additional,unplanned, training.



The startup had noreportable injuriesand no incidentsrequiring any type ofmedical attention.

Were there anyreportable releasesor spills duringstartup?

q No

Operations Teamwas thoroughlyprepared for plantoperationschallenges.

q Very Satisfied(4)

The startup had noreportable incidentsand only a minornumber of incidentsrequiring medicalattention.

Operations Team wasmore than adequatelyprepared for plantoperations challenges.

q Satisfied(3)

The startup had noreportable incidentsand a typical numberof minor first aidtype incidents.

Operations Teamwas prepared forplant operations.


The startup had oneor more lost-timeincidents.

Were there anyreportable releases orspills during startup?

q Yes

Operations Team wasnot prepared forplant operations andrequired a significantamount of additionalunplanned trainingwhich resulted indelays.

46


ngineering

Tool





Ongoing operationswere significantlyimpacted.

Startup work-hourswere significantlyover budget. Thelevel of stress wassignificantly greaterthan anticipated.

q Dissatisfied(2)

Ongoing operationswere impacted.

Startup work-hourswere slightly abovebudget. The level ofstress was greater thananticipated.


There was no impacton ongoingoperations.

Startup work-hourswere well belowbudget. Level ofstress was much lessthan anticipated.

q Very Satisfied(4)

There was minimalimpact on ongoingoperations.

Startup work-hourswere on budget. Levelof stress was less thananticipated.

q Satisfied(3)

There were nounanticipatedimpacts on on-goingoperations.

Startup work-hourswere on budget.Level of stress wastypical.

Success Criterion

Impact on OngoingOperations

Level of EffortRequired by theStartup Team

47


Tool


Table 3-A-4. Example Computation of Criteria Importance Weightings

Those who want to simplify the process can use industry average criteria importance

weightings with the following computation:

Startup Success Index =

0.14 * [ Safety performance score/ 5] +

0.14 * [Product Quality performance score/ 5] +

0.13 * [Schedule performance score/ 5] +

0.13 * [Environmental performance score/ 5] +

0.12 * [Product Quantity performance score/ 5] +

0.12 * [Effort performance score/ 5] +

0.12 * [Operations Team performance score/ 5] +

0.10 * [ Impact performance score/ 5]

Success Criterion Assigned Importance % Contribution ImportanceImportance Score to Total Score Weighting

Product Quality Above average 4 12.5 0.125

Product Quantity Above average 4 12.5 0.125

Schedule Above average 4 12.5 0.125Performance

Safety Performance Most important 5 15.6 0.156

Environmental Most important 5 15.6 0.156Performance

Operations Team Average 3 9.4 0.094Performance

Impact to Above average 4 12.5 0.125Operations

Level of Effort Average 3 9.4 0.094

Total 32 100 1.000

48


Tool


Figure 3-A.1. Average Startup Success Criteria Importance Weightings (n=23)

Weight Factor, Fraction of Total Contribution

0.16 00.14 00.12 00.10 00.0800.0600.0400.0200.000

Impact on Operations

Operations Team

Level of Effort

Product Quantity

Environmental

Schedule

Product Quality

Safety

49


Tool

Tool 3-B-1: Schedule Drivers and Phase Transitions

Early in the project and periodically thereafter, the project manager should do a reality

check to ensure that the project schedule effectively meets the demands of the project. In doing

so, project managers need to recognize that, at a very fundamental level, the project schedule

is driven by different factors during the various phases of the project:

Conceptual design, process engineering, and basic engineering activities are driven bythe systems to be included in the plant. Chemical, mechanical, and process controldesigns are examples of such systems-driven project elements.

Detailed design is driven by site geographical area. The plot plan is divided into areasand the design of foundations, structures, piping, electrical, and instrumentationproceeds around the different areas of the site.

When it comes time to requisition equipment and material, the driving force changesfrom area to the procurement train, in which like items are grouped, regardless of theirsystem or area, so that they can be readily and efficiently handled in the requisitioning,bidding, ordering, manufacturing, expediting, inspection, delivery, and materialsmanagement activities.

The driving force during the initial construction efforts reverts to the area, which issupported with area-based drawings. As construction nears completion, work must becompleted and tested on a systems basis.

The startup activities of check-out, commissioning, and initial operations continue to beexecuted on a systems basis.

The graphic below illustrates these driving forces and the various transitions that must be

effectively planned and managed. It is important that planners have a clear understanding of

these driving forces in order to develop the most effective schedules.

Sequence-Driver

System Area ProcurementTrain

Basic Engineering

Detailed Design

Procurement

Construction

Startup

Phase

50


Tool

Tool 3-B-2: Sample Table of Contents for the Startup Execution Plan

1 Introduction: Startup Execution Plan

Purpose: Importance of Early Planning

Keeping the Document Current

Integration with other Project Plans

Shared Authorship of This Document

2 Scope of Startup & Major Startup Systems

3 Startup Objectives

4 Startup Organization

Startup Team

O&M Resources

5 Startup Planning Activities

6 Startup Schedule

7 Startup Budget

8 Startup Risk Management

9 Procurement Issues

10 Appendices

CII Startup Planning Model

Startup Procedures

Startup Training Manuals

Other Startup Documentation

51


Tool

Tool 3-B-3: Checklist of Startup Quality Gates (page 1 of 4)

Startup quality gates should be implemented together with the project quality gates,

although there are exceptions. Only critical issues pertaining to startup will be delineated here.

All previous basic steps in the corresponding activity profiles should have been completed

in order to clear a quality gate. Business unit and project management must set up a formal

procedure and mechanism to assure compliance. The quality gate represents the completion of

the particular activity. Quality gate activities can be added or deleted as company preferences

dictate.

Phase Activity Title Approved DateBy

2-C Recognize the Impact of Startup on Project Economics

3-J Update the Startup Execution Plan

4-O Update the Startup Execution Plan

6-A Update the Startup Execution Plan and Release for

Construction

7-A Finalize the Operations & Maintenance Organization

and Management Systems

7-B Check Out Systems

7-C Commission Systems

8-C Finalize Documentation

52


Tool


Startup Quality Gate 2C:

At this point all basic steps called for in Phase 1 (Requirements Definitions and Technology

Transfer) and Phase 2 (Concept Development and Feasibility) should have been completed.

Critical checkpoints are:

1. Consistent understanding across project team and business unit management of technicaltransfer package, project and startup scope, objectives, and schedule.

2. Clear understanding of startup impact on venture economics and time to market.

Startup Quality Gate 3J:

At this quality gate, all startup activities to be accomplished during Phase 3 (Front-End

Engineering) are subject for review. This is the most important quality gate because as the

project enters the detailed design phase, changes become increasingly more expensive and

detrimental to schedule adherence.

Critical checkpoints are:

1. A startup manager has been appointed.

2. Startup objectives have been defined.

3. Startup systems have been identified for transfer to the engineering contractor.

4. A HAZOPS/Safety review has been completed and startup risks have been identified.

5. Startup organizations and RACI assignments have been made.

6. A realistic startup budget and schedule has been approved by operations management.

7. Integrate all planning documents into the Startup Execution Plan.

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Startup Quality Gate 4O:

All startup activities during Phase 4 (Detailed Design) need to be reviewed. Documented

proof of the following critical items is required:

1. Startup team has been formed and team building is taking place around startup issues.

2. Supplier pre-shipment testing requirements and field support have been delineated andsubmitted to procurement.

3. Startup execution plan is reflected in project CPM.

4. Operator training plan is in place.

5. System turnover plan is in place.

6. Startup system numbers are indicated on engineering deliverables.

Startup Quality Gate 6A:

This startup quality gate may not coincide with the overall project quality gate because it

focuses on procurement requirements and startup team building and training. The major

interface with construction is the field QA/QC program. This startup quality gate review should

take place early in the construction phase.

The following critical activities must be going on or must have been completed:

1. The supplier technical performance criteria and QA/QC requirements are going out witheach bid package.

2. Construction/startup team building has been implemented.

3. O/M (operations & maintenance) training is being implemented.

4. Field QA/QC plan has been implemented based on startup systems.

5. Startup risk assessment has been finalized and is understood by startup leadership team.

6. For pharmaceutical plants all validation protocols have been completed.

7. System completion forecasting is correctly reflected on appropriated schedules.

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Startup Quality Gate 7A:

This is a critical startup quality gate because it should give assurance to management that

a knowledgable startup team has been assembled and trained and is ready to commission the

plant according to a detailed startup plan.

The following critical actions should have been completed:

1. All named startup positions have been filled with qualified personnel.

2. All management procedures are in place.

3. As designed HAZOPS/Safety review has been completed.

Startup Quality Gate 7B:

At this point management must have assurance that all checkouts have been completed and

are thoroughly documented with appropriate sign-offs. In the pharmaceutical industry these are

called IQs (installation qualifications) and must be documented according to regulation.

Startup Quality Gate 7C:

At this step the plant (system by system) must have been verified to be capable of safe

operation. Rigorous documentation is needed for regulatory compliance and safety. For

pharmaceutical plants, OQs (operational qualifications) and PQs (process qualifications) for

the building and OQs for the process should have been completed and documented according

to regulations. The owner formally must take custody and control of the plant prior to

introduction of feed stock. PQs must be conducted with actual production according to

regulation in order to obtain product release.

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Tool

Tool 3-C-1: Sample Organizational Chart (page 1 of 2)

*The Startup Manager is an integral member of the Project Team and utilizes all members of the Project Team in planning for startup.

This is a generic chart meant to emphasize the role of the Startup Manager. Obviously, such charts can vary by project and organization.

Plant Manager

Training Rep.

Supplier Rep.

Business UnitManager

StartupManager*

ContractorProject Manager

OwnersProject Manager

ConstructionManager

SU QA/QCManager

SU SafetyCoordinator

QA/QCManager

Manufact. Rep./Ops. Rep.

Const. SafetyCoordinator

MaintenanceRep.

Planner/Scheduler

Project TeamAll Disciplines

ProcurementManager

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Tool

Tool 3-C-1: Sample Organizational Chart (page 2 of 2)

Definitions of Titles and Roles

Job Title Role

Business Unit Manager Individual who ensures owners business needs for the plant are meet.

Owners Project Manager Individual who coordinates owner participation in all project phases, including startup.

Plant Manager Individual who insures startup meets plants future operating needs.

Manufacturing Representative Individual responsible for providing the operating and maintenance personnel to assist instartup activities. Also Operating Unit Representative on the project team throughout theproject. May also serve as Startup Manager.

Maintenance Representative Individual responsible for maintenance related issues.

Contractor Project Manager Individual who is the Project team leader in contractors organization.

Construction Manager Individual who manages the bidding, award, and construction phases of a project.

Startup Manager Individual responsible for planning and implementing startup.

QA/QC Manager Individual responsible for the details of QA/QC and their attainment.

Procurement Manager Individual Responsible for acquiring the necessary items for the project, including spareparts, for the best quality at the lowest cost; also checks supplier qualifications.

Planner/Scheduler Individual who plans and schedules project activities.

Estimator Individual who forecasts project costs, including startup costs.

Safety Coordinator Individual who represents both construction and operating safety interests.

Supplier Representative Definition Still Needed

Training Representative Individual responsible for scope, program, and documentation of O&M training.

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Tool 3-C-2: Sample RACI Chart (page 1 of 3)

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Num. Activity Title

1-A Ensure Sr. Mgmt. Commitment R/A C C I

2-A Seek Forecast of SU Duration A I C R C R R2-B Estimate SU Costs A I C R R R2-C SU Impact on Proj. Economics A I R R R C C

3-A Establish SU Objectives R/A R R I C I3-B Develop SU Execution Plan A I R C R R C3-C Make SU Team Assignments R/A C R C R I3-D Identify SU Systems A C R R R3-E Acquire O&M Input A C R C R I3-F Assess SU Risks A I R C R C3-G Analyze SU Incentives R/A I R C I3-H SU Procurement Requirements A C R R R I3-I Refine SU Budget & Schedule C C A R R R3-J Update SU Execution Plan I C I C A R C I

ProjectOwner

58


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Tool

Tool 3-C-2: Sample RACI Chart (page 2 of 3)

Num. Activity Title

4-A SU Issues in Team-Building A R R C4-B Assess SU Effects from Changes A C R C C4-C Supplier Field Support of SU I A R C C4-D Include SU in CPM Schedule I C A C R4-E Plan for Startup QA/QC I A C C C R4-F Refine Team Org. Plan & Resp. A C R C4-G Additional O&M Input A R R R I4-H SU Sys. Numbers on Eng. Deliv. I A C R4-I Refine SU Risk Assessment I C A R C C4-J Plan & Start Operator Training A R R R C I4-K Develop SU Spare Parts Plan I C C A C R R4-L Develop System Turnover Plan I I A C R4-M SU Procedures, Process Safety I C A R I4-N Refine SU Budget and Schedule A C R C C R R4-O Update SU Execution Plan I I C A R C I

5-A Qualify Suppliers for SU Serv. A C R I5-B Refine SU Spare Parts & Expedite I C C A C R5-C Implement Procurement QA/QC A C R I I

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ProjectOwner

planning for start-up (university of austin texas)

Documents

cii members

cii 23jun04

contact cii

cii products atmember

university of texas

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