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Implementation of key processes for a successful shutdown execution (Case Study) |
Background
The client has around 2,300 employees based on two premises; it produces approximately 12 million tonnes per year of petrochemical products, primarily fuels, fuel oils and alkenes. To ensure the safe operation of the sites, they are regularly switched off for statutory tests, necessary maintenance and cleaning tasks. Management of these shutdowns and turnarounds (TAR) is increasingly complicated due to growing linking between equipment and the optimisation of equipment shutdown times. The client’s shutdown budget increased disproportionately in recent years and was exceeded by up to 65% in some areas. As there were no tangible reasons for the cost rise, so the first step was to commission T.A. Cook to carry out a cost analysis study.
This analysis indicated the essential cost drivers, but no explanation could be found for part of the cost rise. The hypothesis was that it was to do with inefficiency. In order to clarify this hypothesis, the second step commissioned by the client was for T.A. Cook to tackle an organisational and process analysis of a selected large-scale shutdown. This process analysis revealed additional weak points in the organisational structure and workflow management, in addition to the shutdown processes. It was also detected that potential savings of between 20 and 30% of total costs could be realised.
The task
In order to adjust the TAR process to the increasingly complex organisational requirements, to make future shutdowns more effective and efficient and to ensure budgetary targets were met.
T.A. Cook defined subject areas and a package of concrete measures to be implemented. The implementation project was drawn up for a period of 15 months.
T.A. Cook developed a project approach consisting of 14 subprojects that encompassed the following categories:
• “Short Impact Program”,
• The development of new strategies, such as the allocation of future core competencies, the definition of scope and the optimisation of the contractor strategy,
• Process design and monitoring infrastructure, TAR Front End Loading Process (FEL), integration of projects during TARs and
• Sustainability safeguarding (CI).
Employee involvement in every subproject was a priority for the client. This ensured ownership and helped construct the basis for the company’s sustainable further development.
Solution
In order to secure the ongoing preparations for a large-scale shutdown due to take place within the time frame of the project,
T.A. Cook developed a Short Impact Program. This allowed the consultancy, together with the client, to accompany and control the Front End Loading preparation phase by means of specially designed control tools (checklists, Excel sheets) which enabled continuous nominal and actual value comparisons.
Many of the cost increases were linked to externally procured services. The contractor strategy was analysed with regard to current contracts and the contractor management process and potential improvements were ascertained. There were substantial uncertainties in terms of services (external costs), in time controls and in the delivery of goods and services from outside the company. T.A. Cook laid out possible strategy options for future collaboration, as well as operational supervision instruments. These options were refined and implemented in collaboration with the client’s employees.
In order to eliminate the flaws in the shutdown process (e.g. vague accountability, failure to meet deadlines), T.A. Cook developed a comprehensive, structured TAR process according to the FEL system that
• Included a list of all necessary work stages and milestones
during a TAR
• Specified responsibilities,
• Timed the work stages in line with the FEL stages model and
• Implemented a gatekeeper function in order to monitor results.
The relevant documentation was provided in the form of a TAR-FEL handbook. Helpful methods and tools for critical work stages (e.g. cost estimates, scheduling) were designed and were also outlined in a handbook.
Benefits
The Short Impact Program implemented by T.A. Cook made a significant contribution to the successful execution of the routine shutdown in terms of safety, length, quality and costs, which attracted a great deal of interest within the company.
The new contractor strategy consists of a strategic partnership with contractors for a specified time period, which enables
• Cost reductions through higher quality and security and optimised deadlines
• Maximum transparency of planned and accomplished work volumes
• Clear separation of outlay between work, overheads and other, optional supplies and services, and
• Price competitiveness, preventing contractor monopolies.
The implementation of the FEL system in the shutdown plan helped to avoid inefficiency and missed deadlines in advance and to shorten TAR time. This provides all parties with a binding system in which
• All those involved know the expected work outcomes at any
given time,
• All those involved in the work stages are entered into an accountability matrix and
• The methods for developing the different work stages are documented in the TAR-FEL handbook.
Over the next five years, all of the measures put in place will lead to a reduction in costs of around 23 to 25% with regard to the original budget.
For more information contact:
Rupert Clark
Marketing Manager
Direct: +44 (0) 1183 260 229
Mobile: +44 (0) 7792 926 696
r.clark@tacook.com
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Benefits
• Reduction in planned costs by 19% and adherence to the new budget for routine shutdowns thanks to the Short Impact Program
• Conception and implementation of a new cost-focused contractor strategy
• Reduction of total TAR costs by approx. 23-25% within a TAR cycle
• Implementation of an efficient front end loading process for shutdowns
• Design of a TAR front end loading handbook
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Implementation of key processes for a successful shutdown execution »