scheduled shutdown maintenance
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Scheduled Shutdown Maintenance
What Drives (or Justifies) a Shutdown?
Prepared By:John ParfettMaintenance ManagerAlberta Envirofuels Inc.
Best PracticesGeneral
• Shutdown timing is in alignment with companies business plan.
• Commit the appropriate resources to the planning phase.
• Develop a Change Management Process to control the work preformed and the shutdown costs.
• Ensure that all services required are in place and under contract if required.
Best PracticesPlanning
• The Shutdown Planning team has representatives from all departments.
• The only work performed during the shutdown is work that cannot be done while the plant is running.
• Plan for all activities associated with the shutdown, not just work identified on the worklist.
• Develop detailed plans for the following:– Health, Safety, and Environment.– Service Contracts.– Material Management.– Facilities Management.
Best PracticesScheduling
• Schedule based on Equipment availability vs. Resource availability.
• Use Milestone Scheduling with Milestones set up as measurable activities.
• Develop a Work Breakdown Structure consistent with the Cost Control Structure.
Scheduling Philosophies
• Scheduling parameters, controls and reporting requirements must be identified prior to work package and schedule development to enable scheduling of work on a per shift basis and provide enough information to make effective decision regarding schedule
• Each job must have its own schedule independent of the other work taking place in the shutdown
Scheduling Philosophies
• Include step for potential repair work and assign no time
• Maximize pre and post shutdown activities
• Schedule must be equipment driven and prioritized by system (which equipment needs to be returned to service first as defined startup sequence), equipment type and potential for additional work
Scheduling Philosophies
• Schedule key resources (e.g. Safety Watch, Inspectors, plot space etc.)
• An inspection window will be assigned for activities like x-ray
• Schedules will be reviewed with major contractors to achieve buy in and realistic targets
Scheduling Philosophies
• The shutdown coordinator is responsible for the overall schedule and controlling the float
• Minimize overtime where practical
• Schedule the pre-shutdown work, operation’s shutdown work, the execution phase mechanical work, operation’s startup work, and post shutdown work.
Shutdown Drivers
A task required to support your operational goals that can only be executed while the process is down. This will most likely be the Critical Path job.Categories of Shutdown Drivers: –Reliability–Legal–Health, Safety, Environment–Business
Shutdown Timing
IssueDate it drives us
to shutdown
Earliest date available to shutdown
IMPACTShutdown
/ Slowdown
Duration (Days)
Risk of delaying
Flare Tip - Nozzle
To be determined
ASAP Enviro Shutdown 20 Exceedance to Operating Liscence
Flare Tip - Damage
Unknown ASAPReliability / Enviro
Shutdown 23Loss of steam to flare and severe damage to flare tip
DCS Unit 20 Subsystem Speed
To be determined- level
of risk acceptance at
AEF
September 1st, 2005
Safety / Reliability
Shutdown 13DCS Controller lock up. Loss of control to operate the plant and make changes in a timely manner
BA-2004 Steam Generating Coil
Fall 2006 ASAP Legal Shutdown 12Non compliance - ABSA restrains us from operating the equipment
Unit 30 Inspections
Fall 2006 ASAP Legal Shutdown 23Non compliance - ABSA restrains us from operating the equipment
Other Plant Inspections
Fall 2006 ASAP Legal Shutdown 20Non compliance - ABSA restrains us from operating the equipment / requirement for Operations on-line inspection planner
Shutdown Timing
Option 1 Spring
Option 2Summer
Option 3Fall
Market Conditions •Bad timing for product market
•Possibly poor timing for product market
•Good timing for product market
Weather •Not a significant factor •Could be an HSE issue if temperature >25°C
•Freezing weather conditions
Contract Resource Availability
•Resources available – one competing shutdown
•No competing shutdown•Summer holidays may limit resource availability
•Many large turnaround scheduled in September•No competing shutdowns in October•“Tired” contactor labour pool – Safety Risk
Company Resources •Work complete before summer holiday season
•Summer holiday season – Family Opportunities
•After holiday season
Productivity •Optimal •Effect on productivity if temperature >25°C
•With cold weather, anticipate 40% reduction in productivity based on regional labour history & 25% additional cost
Reliability •Earliest opportunity to fix the equipment
•Steam outage required or temporary flare system•Potentially no work to steam or condensate systems
Shutdown TimingPeak
PLANT Work JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DECForce 6 13 20 27 3 10 17 24 31 3 10 17 24 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22 29
AT PLASTICS
CELANESE
DOW
ENVIROFUELS 500
ESSO STRATHCONA 50
HUSKY ENERGY 700
NOVA CHEMICALS 100
PETRO-CAN 500
SHELL CHEMICAL
SHELL REFINERY 500
SHELL UPGRADER 1500
SHERRITT 500
SUNCOR 3000
SYNCRUDE 2200/300/500
AGRIUM
BudgetsManagement Perspective
• Fit to the business plan and annual budgets
• Total cost to the organization
• Business interruption
• Cash flow
Strategic Plan
BusinessPlan
Shutdown Plan
DepartmentPlans
Business Goals
Estimate / Budgeting Cycle
ShutdownSeptember 2005
Business PlanShutdown Estimate
+/- 25%June 2004
Frozen WorklistDecember 2004
Business PlanApproval
September 2004
Final A/R+/- 10%
January 2005
Shutdown Coordinator Perspective
• Need to have the costs identified and tracked into areas that make sense for future reference.
• Work Breakdown Structure • Benchmarking
Realistic Estimating
• Costs broken into areas that make the most sense.– Direct– Indirect– Routine Maintenance– Non Routine– Opportunity Work– Operational Costs
Direct Vs Indirect
• Direct costs include all activities, routine and non-routine, that are directly related to the task and can only be completed when the facility is shut down.– Man-hours, Materials, Equipment,
Rentals
• Indirect costs include all activities, routine and non-routine, that are not directly related to the task. – Supervision, Scheduling, Time
Sheets, Payroll
Routine Vs Non- Routine
• Routine– Maintenance jobs that are executed on a
consistent cycle (e.g. pressure equipment inspections, equipment service plans etc…)
• Non Routine– Maintenance work that are typically 1 of’s that
present themselves in the period between scheduled shutdowns (e.g. equipment failures)
Opportunity Work
• Work that makes business sense to execute during the shutdown.– Catalyst change outs that can be done on line,
scheduled for the same year, but require significant costs to prepare (e.g. purging, equipment isolation costs).
Operational Costs
• All operational costs associated with Shutting Down and Starting Up the plant.– Utilities
• Nitrogen• Natural Gas• Hydrogen• Water• Chemicals
– Operator and Maintenance Overtime?– Lost Production?
Contingency
• Contingency is the amount of money which must be added to a base estimate to provide for uncertainties.– The amount of contingency added is directly
related to the risk of overrun.
• Contingency is not:– A slush fund or catch all for predictable items such
as escalation.– Provision for added or extra work– Provision for unforeseeable circumstances
(process issues / storms)– A substitute for good Shutdown management
Contingency was calculated based on assessing the risk value and weight associated with each Risk Factor for the shutdown. Scope Changes and Productivity (Cold Weather) were identified as having the biggest impact to the success of this shutdown. The following table represents the Risk Factors and their contribution to the overall contingency:
Example
Risk Factor Input Risk Value Input Risk Weight Contribution to Overall Risk
Design Variations
New Technology 3 5.00 6%
Scope Changes 3.5 20.00 27%
Execution Variations
Contract Plan 1 5.00 2%
Performance 2 15.00 12%
Economic Variations
Market Activity 2 5.00 4%
Labor Conditions 2 5.00 4%
Estimating Variations
Material Quantities 2 10.00 8%
Pricing 2 15.00 12%
Escalation 1.5 5.00 3%
Productivity 4 15.00 23%
Total Weighted Project Risk Factor
2.58 100%
Overall Contingency 25%
Estimate Accuracy +/- 23%
50/50 Estimate
Building From the Past
• Establish a baseline or benchmark
• Identify the “Heavy Hitters” as areas for improvement.
• Allow time to adjust work plans and estimates based on actual values post shutdown.
Cost Control
• Measure Earned Value and adjust accordingly.
• Manage shared resources– Scaffolding– Safety Watch
• Incentive Contracts• Effective resource scheduling• World Class HSE Performance
Cost Control
• Costs will be tracked, reported, and managed on a daily basis.
• The number of Purchase Orders issued to contractors will be minimized.
• A Work Breakdown Structure will be developed to track and manage costs.
• Plan ahead!
The Influence Curve
0102030405060708090
100
1000 900 800 700 600 500 400 300 200 100 50
Days Before Shutdown
Su
cces
s F
acto
rs
Summary
• Use Best Practices
• Get the right people involved
• Alignment with company strategic and business plans
• Plan ahead