Download - Scheduled Shutdown Maintenance

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


• 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


• 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


• 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