11-Revised Manual For Commissioning-Start-Up - Shut-Down

Managing – Commissioning – Start-Up- Shutdown
Managing Commissioning – Start-Up -Shutdown
Course Director
JAMES.M.WATTERSON
Prepared By JMW-Training Purposes Only 1

Contents
Managing Efficient Commissioning- Start-Up-Shutdown-Troubleshooting
Section1:-Introduction and preparation

 Commissioning
 Start up Management
 Start up Organization
 Typical Start up Team Organization
 Plant Start Up sequence
 Plant Start Up Safety Issues
Section 2
Start Up & Initial Operating Testing
Section 3
Start Up Safety ~ Step by Step Procedure

Section 4
Start Up, Commissioning & Control
Section 5
Overview of Gas Processing Plant –

 Brief Overview of gas treatment
 Emergency Shutdown Systems (ESD)

Section 6
Process Shutdown – Part-1

 Stage 1 - Introduction and Overview
 Stage 2- Safety Issues
 Stage 3- Quality Issues

 Stage 4- Designing the Organization
Process Shutdown –Part 2
 Stage 5- Planning & Scheduling

 Stage 6- Using Contractors
 Stage 7- Cost Estimating, Reporting and Control
 Stage 8- Site Logistics
 Stage 9- Executing the Turnaround
Section 7
Modern Shutdown Management

 Stable domains of maintenance
 Role of reliability
 Identifying critical equipments
 Pareto Analysis
 Cause & Effect Charts

Section 1
1.0 Introduction and Preparation- Commissioning
1.1 Introduction to Process Plant commissioning and start-up including a

discussion on importance of correct procedures.
1.2 Organization & Roles
1.3 Supplementary Topics
1.4 Cost Estimation including practical exercises in assessing cost
1.5 Spare parts planning, including exercises in planning and managing a

schedule for ordering spare parts
1.1 Introduction to process Plant commissioning and Start-Up
The commissioning, or initial startup, is a period when the plant is particularly at

risk. It is also a time when equipment may be maltreated or damaged so that its
subsequent operation is affected. Moreover, delays in bringing the plant up to full
output can have a marked effect on the economics of the plant. For all these reasons
it is essential to organize the commissioning of the plant efficiently and to allocate
sufficient resources to it. Some important features of plant commissioning are:
(1) Organization and personnel:

(2) Planning and scheduling:
(3) Documentation:
(4) Management preparation and training:
(5) operation-preparations:
(6) Operator training:
(7) Maintenance preparations:
(8) Checking and testing:
(9) Safety audit:

(10) Commissioning problems:

(11) Commissioning hazards:
(12) Handover:
(13) Initial startup:
(14) Termination
In the following sections some of the problems and hazards of commissioning are
described. It should be said at the outset, however, that in many cases these have
been very successfully overcome by good organization and engineering so that, for
example, large ethylene plants have been brought up to full output within about
three days.
It can be seen that the Commissioning of any Process Plant would need the
experience of personnel who have been employed in the Petrochemical, Refinery
and the Oil & Gas industries for some considerable time. During their careers they
would have many times shut down and restarted plants and would be
knowledgeable and competent to startup new equipment and restart equipment that
has been overhauled. They would know to follow the correct methods and
procedures for doing all this.
It is important to follow correct procedures in starting up new and overhauled

equipment as costly accidents can happen.
It is important to have meetings with the Instrument, Mechanical and Operations

Departments, to have technicians and operators available for start up, to plan
commissioning, produce method statements, permits to work, and if the startup is
hazardous, entry permits and areas barricaded off. Contractors should also be
informed of equipment startup and their workers be informed. For example it
would be extremely dangerous if during the introduction of gas to the plant
contractors where strolling in and out of the area where the work was taking place.
1.2 Organization and Roles
It is important to organize the commissioning thoroughly and to provide the

appropriate personnel. There is no simple model for organization and personnel for
commissioning. These depend on the nature of the process, the size of the plant, the
involvement of other parties such as licensors and contractors and so on.

It is essential that management allocate sufficient resources to do the job

efficiently. The commissioning of a large plant is a major enterprise and failure to
recognize this is likely to increase costs and hazards.
1.2.1 The Commissioning Manager
Responsibility for the commissioning should rest with a single individual: A

common practice is to appoint a plant manager for the new plant some time in
advance, to let him familiarize himself with it and to make him the commissioning
manager.
It is necessary that the commissioning manager should be able to command the

resources necessary to carry through the commissioning. Unforeseen problems can
often result in considerable demands on resources. He should have meetings with
the plant construction commissioning employees and monitor the progress of
construction, commissioning and equipment startup. He should have a
commissioning team made up from company employees, and they should be
allocated areas within their expertise, and check pre-commissioning activities, and
accept equipment that has been commissioned to their satisfaction.
The Commissioning Manager reports to:

Project Manager, Commissioning Manager or Manager, Commissioning
Operations
Basic Function:
Directs the safe, economic and efficient operation and utilization of facilities,
equipment, materials and personnel on a small to medium scale project within the
Company approved guidelines and policies to discharge all contractual
commitments.
Principal Accountabilities:
Responsible for:
The preparation of Technical Documents such as Plans, Schedules, Manuals,

Philosophies, Proposals etc.

Technical decisions and re-commendations made at HAZOP Studies, P&ID

reviews, Model Reviews, Safety and Technical Audits.
Technical input to operating sites and projects.
Establishment and execution of training programmes.
Execution of technical audits.
And also:
Execution of project duties by direction and supervision of operating personnel

assigned to the project.
Direction and counseling of client personnel during the commissioning and initial
start-up through to acceptance of a process plant(s).
Directing the activities of sub-contract personnel and third party licensors to ensure an
integrated, uninterrupted start-up through acceptance of a process plant (s).
Safe execution of all work under his control.
Problem Solving & Decision Making:
The position requires extensive knowledge of process plant commissioning and

operation gained on refineries, gas processing or petrochemical plants.
Incumbent must have the ability to impart this knowledge to other department
members and client personnel. He must have the ability to make technical decisions
and recommendations for the department and answer queries received from job
sites and/or clients and organize field personnel and direct their efforts to provide
an efficient and safe operating plant.
Technical & Academic Requirements:

Technical or High School Qualification in an Engineering or Science related field.
Minimum 15 years technical experience in the petroleum/petrochemical industry

with at least 8 years commissioning experience in a supervisory position.

Skilled in the preparation of technical manuals, documents and procedures and

audio/visual presentations. Knowledge of Health, Safety & Environmental
requirements applicable to pre-commissioning and commissioning work.
SUPERVISORY SKILLS:
Management and direction of a number of multi-disciplined teams in the
preparation of technical documentation during a project design and engineering
phase, as well as the resolution of technical problems associated with operating
plants.
Must be able to supervise and motivate others through effective leadership.
1.2.2 The Commissioning Team

As discussed above the personnel involved in the commissioning usually consist of
the regular plant personnel and a special commissioning team, who are brought in
for the limited period of the commissioning only. It may be desirable, particularly
on large projects to create an additional trouble-shooting team. The organization of
an Extra Field Work for this purpose has often been used many times. There are
numerous variations in personnel used in commissioning.
1.2.3 Commissioning Specialists

There is also a need for specialists, particularly in proprietary items such as rotating
machinery. Many problems which would otherwise prove difficult and time-
consuming can be resolved if an expert is present at the right time. This is usually
the Vendors Commissioning Engineer, who will commission the equipment with
the assistance of the construction commissioning engineers who will provide
manpower for the commissioning activities.
1.3 Supplementary Topics
1.3.1 Commissioning Planning

Since plant commissioning is a major undertaking, it needs to be organized

accordingly. This means that there should be appropriate planning and scheduling,
communication and documentation, and training. These aspects are considered in
detail below.
It is not uncommon that the commissioning is a succession of crises, but this is not
the most efficient way of doing it. As it has been put by Horsley a prominent
engineer.
'It is evident that the fun and personal satisfaction of being in the thick
of things, having a tremendous degree of responsibility, working long
hours and so on are not efficient ways to start up a plant. In fact, an
efficient startup without the emergence of numerous challenging
technical problems would probably be slightly dull and disappointing to
technologists and experts.'
The work load of individuals should be checked to ensure that it is not extreme. If a
man is excessively tired he tends to become both less effective and more prone to
error.
1.3.2 Planning and scheduling
Plant commissioning requires the coordination of a large number of activities

carried out by many different people. Some aspects for which planning is
particularly important include
(1) Commissioning activities
(a) Pre-startup activities.
(b) Initial startup.
(2) Budgets.
(3) Documentation.
(4) Recruitment.
(5) Training.
The design and construction of a large process plant is normally scheduled using
such methods as Project Evaluation and Review Technique (PERT) and Critical
Path Scheduling (CPS) Usually these methods are implemented on a computer.

The scheduling of the commissioning may be done as a separate exercise. An

account of such scheduling has been given by Gans and Benge(Engineers) who
quote typical figures of effort required of 1000 man-hours for a major project or
alternatively. 3 man-hours per major piece of equipment.
The method of scheduling is broadly as follows. All activities are broken down into
their constituent parts. The man-hours and the machine-hours to perform each
activity are determined. The length of time to perform the activity is calculated on
the basis of the availability of men and machines. The duration of the activity is
then assessed taking account of such factors as running-in time. The conditions at
which work can begin on the activity are then determined.
Again methods such as PERT and CPS may be used, but it is still more common
with commissioning than it is with design and construction to do the scheduling by
hand, using such aids as bar charts and arrow diagrams.
Modifications are then made such as speeding up an activity or paralleling
activities. When this has been done it is possible to calculate the slack, which is the
difference between the earliest and latest time at which an activity can start: to
work out programmes for a day or a week: to determine the resources of men and
machines required, and to assess the expenditures involved.
In many large plants critical path features on the reactors or the instrumentation. It
is easy to incur extra expenditure during commissioning and it is necessary to
exercise close control on costs by controlling budgets for the various cost centres.
The communication of information is crucial in commissioning and it is essential to
ensure that adequate documentation is available at the time when it is needed.
Planning should include therefore a review of the documentation required.
The recruitment of personnel needs to be carefully planned. There is usually some

uncertainty about the precise start time of various activities and this makes
recruitment something of a problem. The problem is aggravated if them are
difficulties at the recruitment end. In view of the uncertainties. recruitment in
advance of requirement may be necessary. but it should be home in mind that an
excessive period waiting to start work could be demoralizing.
The training of both management and workforce need to be planned. Important
aspect are the scheduling of and the documentation for the training.
1.3.3 Documentation

It is difficult to overemphasize the importance of having a comprehensive and up-

to-date set of documentation. The documentation is a critical feature of the
management system.
It is appropriate here therefore, only to re-emphasize certain aspects which are of

particular importance in commissioning. They include
(1) Operating manual;

(2) Operating instructions;
(3) Safety instructions;
(4) permit system documents;
(5) pressure vessel register;
(6) Maintenance systems and documents.
(7) Checklists.
The plant should be covered by a comprehensive system of permits-to-work. They

are needed during the commissioning as much as during operation and
should be developed in good time.
The register for pressure vessels and protective devices should be established
before commissioning. Details of individual items can then be entered as they are
checked, tested and brought into commission.
There are several systems or documentation required by the maintenance system.

These are described below.
A major part of commissioning is the checking of systems both of hardware and of

software. This is greatly assisted if suitable checklists have been prepared.
1.3.4 Management Preparation and Training

It should not be assumed that it is only the process operators who need preparation
and training for commissioning. Management requires these also.
The commissioning manager normally prepares himself by studying the process
and the plant, by visiting or working an similar plants or by involvement in the
project through work on design committees by preparing plant documentation and
operator training schemes, and so on.
There are some particular aspects on which he is well advised to brief himself
thoroughly. One is process information and knowhow which has been purchased
from outside. If problems arise in a bought in process it tends to be more difficult to
put them right. Somewhat similar considerations apply to proprietary equipment.
such as package units and complex machinery. It is also desirable for him to have a
good grasp of the general economics and contractual features of the project these
range from raw material supply contracts to acceptance conditions for equipment.
There are many variations in the ways of organizing the management team for
commissioning. One is to design and impose the organization. An alternative
described by Horsley (1974) is to let this evolve by negotiation of roles among the
managers with division of the ‘ownership’ of particular features among them.
During commissioning there is likely to be conflict between individuals. This may
be due to some extent to clashes of personality but it is generally due mainly to the
differences of tasks and viewpoint which are inherent in the situation.
1.3.5 Operation preparations

The operation of a process plant requires the creation or a large number of systems
and procedures. Many of these have to be formulated by the plant manager prior to
and during commissioning.
The operating instructions are particularly important. These should be drafted early
on, so that they can be used for operator training, but they are likely to need some
modification in the light or operating experience.
It is also necessary to create a system of process records. The process log kept by
the operator is one. element in this. but them are numerous other records required
for management purposes.
A process plant often receives its raw materials from or sends its products and/or
by-products to other plants. The commissioning of such a plant tends to involve
some degree of disruption of these plants. There is need therefore to coordinate the

initial startup so as to minimize such disruption. It may be also necessary to make

arrangements to deal with unusable materials produced during the startup, such as
off-specification product.
1.3.6 Operator Training

The main training of the process operators is usually carried out jointly during
commissioning, by the training department and the plant management.
The principal objectives of the training are to familiarize the operators with the
chemicals handled, with the nature of the equipment and its location on the plant
and with the procedures for operating the plant.
One basic method of training is the use of lectures. In some cases it maybe
appropriate to complement this with training on simulators.
Specific training in safety and loss prevention should be worked in with the other
training material.
Further training is obtained on the plant itself where the trainees become familiar
with the layout and learn to operate equipment and instrumentation. Testing with
safe fluids provides particularly valuable experience. Often there develops a strong
team spirit during this period of training.
Generally, the training activities reveal certain inadequacies in the procedures and
these should be rectified. The appropriate changes should be made in the
documentation.
It is necessary to allow a sufficient number of management personnel to ensure that

training is effective.
It is a not uncommon experience that the level of training achieved at the end of
commissioning period is not bettered during the subsequent life of the plant.
1.3.6 Maintenance preparations

Prior to and during commissioning the maintenance engineer should set up the

appropriate maintenance systems and documentation. Each major item or

equipment should be given an identification code, which should be marked on the
equipment itself.
The maintenance manuals for the equipment should be obtained from the
manufacturer and reviewed. Sometimes the manuals will be considered inadequate
in some respect. If so, the manufacturer should be consulted concerning
modification. More often, however problems arise because the manuals have not
been consulted.
The maintenance of the equipment, both preventive and breakdown maintenance

should be planned. Schedules for regular preventive maintenance should be drawn
up. A system of maintenance records should be instituted which contains details of
the equipment in the plant and of the maintenance and modification work done.
The quality of the data available for analysis for reliability, availability and
maintenance of the plant depends critically on these records. It is far easier to create
an effective system initially than to try to improve a defective one. It is particularly
important to obtain good information on the symptoms and causes of faults, and on
the action taken.
A system of spares holdings should be created. Important features of such a system

are that it shows clearly what spares we available, what spares are being consumed
and what the delivery situations are. Only if this information is available is it
possible to make rational decisions on the spares holdings.
Maintenance personnel should check the plant during construction for accessibility
and ease of maintenance. It may be necessary to make some alterations to the
layout, to the equipment or to the lifting arrangements.
The maintenance function is also involved in many of the pre-startup activities such
as checking and testing, and needs to make suitable preparations for this.
1.3.7 Checking and testing

Commissioning is largely concerned with inspection, checking and testing of

equipment. The overall inspection activity is described in detail below, but it is
appropriate at this point to indicate some of the activities carried out during
commissioning.
The process and plant designs should already have been subjected to the various
checks described earlier. In particular, the hazard and operability studies conducted
should cover operations that are carried out only in commissioning.
Some typical checks and tests carried out on process equipment and machinery are
listed in Table I.
Table I
Some checks and tests carried out on process equipment and machinery during
plant commissioning.
Pre-installation inspection, checking and testing of,

 pressure vessels
 process machinery
Plant checking against piping and instrument diagram (P&ID)
Checks an materials of construction
Pressure vessel and system tests
 inspection
 pressure tests
 leak tests
 protective device tests
Process machinery tests

 inspection
 dry run
 load runs
 performance runs
Subsystem and system tests

 dynamic safe fluid test (water test)

 dynamic process fluid test
Also tests on
 utilities
 instrumentation
 unit operations
 simulated faults
The plant should be given a thorough visual inspection. A check should be made on
all plant equipment and pipe work to ensure that it is installed in accordance with
the engineering line diagram. In one instance, for example, the safety shower was
found to contain not water but caustic soda.
The inspection should check for items such as loose bolts or missing valve wheels
and for construction aids or debris left in the plant.
Errors in the materials of construction actually installed are quite common. A check
should be made therefore an the materials. The installation of internal fittings such
as trays, weirs, down comers and thermocouple pockets in all equipment should be
checked. It is important that these internals have the right dimensions are correctly
located and are firmly secured.
A list of some of the checks and tests carried out on process machinery such as
pumps, compressors and centrifuges is given in Table 2.
Subsystems are frequently tested on a safe fluid usually water prior to testing with
the process fluid.
Table 2 Some elements of the checking and testing of process machinery and
instruments (Courtesy of the Institution of Chemical Engineers)

Process machinery
Field disassembly and reassembly
Lubrication system: cleaning and check on circulation flow and temperature
Cooling water system: cleaning and check on circulation (flow, temperature)
Pre-commissioning of instruments
Check on free and unhindered rotation
Check an anchor bolts
Disconnection of piping to check that it does not stress equipment
Installation of temporary filter
Setting of system for 'no load'
Running or motor uncoupled
Coupling of motor
Check on alignment
Check on vent system
Check on seal systems
Dry run: check on vibrations and overheating of bearings
Load run
Performance run
Instruments
Instrument checking against drawings and manufacturers requirements
Removal of shipping restrictions
Calibration
Continuity check
Movement check
Alarms check
Interlocks check
Analyzers check
Table 2 also shows some of the checks carried out on instruments, a check should
be made that the instrument is installed in accordance with the drawings and with

the manufacturer’s instructions. It should also be checked that shipping restrictions

have been removed. Usually parts and springs are wired down, critical parts are
covered with protective coating and leads may be plugged and all these restrictions
need to be taken out.
It cannot necessarily be assumed that the calibration of the instrument as received is

satisfactory. It is often necessary, therefore to carry out a calibration check.
Analyzers should be calibrated with standard test mixtures.
Circuits should be checked for continuity from the panel to the instrument and
back.
The movement of a control valve should be checked by 'stroking' it and that of a

controller by observing its response to the output of the measuring element. The
response of the alarms and the interlocks to the measuring elements should be
checked, as should the alarm settings and the actions of the devices actuated by the
interlocks. Similar checks should be made on trip systems.
These checks, however, are only partial checks on the instrumentation. As far as
possible the checks should be extended to cover operation with process fluids and
conditions which are realistic but which are nevertheless safe.
1.3.8 Safety audit

The plant should be given a comprehensive safety audit during the commissioning
period. The audit should cover both software and hardware aspects.
1.3.9 Commissioning problems

Many of the problems associated with commissioning have been mentioned
explicitly or are implicit in the comments made but it is appropriate at this point to
give a further review or some or the problem areas in commissioning. These
include:
(1) Lack of process information:
(2) Design changes:
(3) Unsuitable equipment:
(4) Lack of expert advice:

(5) Lack of spares and supplies:

(6) Construction and maintenance errors:
(7) Operating errors.
The difficulties inherent in a situation where basic information about the process is
inadequate have already been mentioned. This is due sometimes but by no means
always to purchase of know how from outside. Although some modifications of the
original design are almost inevitable, they tend to be disruptive and expensive and
should be kept to a minimum
There should be a system for the control of modifications during commissioning, so

as to ensure a safe design is not rendered unsafe by a modification. Moreover there
should be a single channel through which modifications are communicated to the
contractor, so that there is less risk of confusion.
Unsuitable equipment can be a source of much trouble. It is sometimes suggested

that equipment which comes as a package unit or is purchased from the main
contractor can be troublesome. It may well be, however, that in many cases the
problem lies with the user. Certainly it is essential that he give as full a
specification for such equipment as for other items.
The need for expert advice has already been mentioned. The behaviour of
equipment during the running-in period may be different from that during normal
operation. In one case, for example, commissioning was delayed because the
lubricating oil from the bearing of a ball mill was found to contain a high
concentration of metal particles; the vendor then confirmed that this was normal
during running-in.
Shortages of spares and other materials can result in delays. The need for an
adequate spares system has already been emphasized, but provision of other items
is equally important.
Mistakes in construction are commonplace. In addition to the use of incorrect

materials of construction for the main equipments and pipe work, errors often occur
in minor items such as bolts or gaskets.
For example, mild steel bolts may be fitted where stainless steel bolts have been
specified, which in a low temperature application is a serious hazard. Likewise a
hazard can be introduced by the use of the wrong gasket.

Inexperience on the part of the process operators can result in mal-operation which
does considerable damage to the plant. For example, a pump may be allowed to run
dry or to pump against a closed valve.
Table 3 some typical problems arising during plant commissioning.

Design errors
Emulsions and foam
Venting arrangements
Liquid head arrangements
Heat transfer phenomena

Polymerization
Scaling up
Separation operations
Liquid-liquid separation. e.g. centrifuges
Liquid-solid separation. e.g filtration
Gas-liquid separation e.g demisting
Gas-solid separation. e.g. gas filtration
Automatic control
Long time lags, dead time
Valve sizing
Control of nonlinear variables e.g. pH
Unusual measurements
Unsuitable equipment

Leaks
Sudden leak in vacuum equipment
Vibration phenomena
Mounting errors
Mechanical handling equipment
Materials of construction
Design errors do occur, but are most frequent in detailed rather than fundamental
aspects. Emulsions and foams may occur on the full-scale plant, even though then
have not shown up in the pilot plant. Gas phase balancing errors can lead to
difficulties with levels and flows. Lack of sufficient Net Positive Suction Head
(NPSH) causes pumps to activate. Heat transfer phenomena which can be
troublesome include polymerization and scaling-up. The form occurs more
frequently than is admitted. Separation operations especially those involving
particulate system give rise to many difficulties.
Automatic control problems include the measurement of unusual variables, the over
sizing of control valves and the control of nonlinear variables and of loops with
large time lap and/or dead time.
1.3.10 Commissioning hazards

There are certain specific hazards associated with commissioning. The pressure
testing of equipment is a hazardous operation. The hazard is minimized by the use
of hydraulic rather than pneumatic testing, but the energy released if the vessel fails
is appreciable even with a hydraulic test, and it is important to ensure that the
correct test procedure is followed and that personnel not involved in the test are
cleared from the area.
Many of the test and other operations carried out during commissioning require the
use of temporary connections. These are often hoses. Hose connections have been
responsible for many accidents and particular care should be exercised with them.
Plant equipment are tested for leaks, but even so, leaks tend to develop due to features
such as loose joints open valves, gasket and seal failures, vibration, thermal expansion
and contraction, and corrosion. It is important therefore to keep a lookout for such

leaks.
Leaks from high pressure equipment can cause direct injury to personnel, leaks or
flammable materials can cause a fire or explosion and leaks of flammable liquids
can contaminate lagging, creating a further fire hazard.
Nitrogen purging is a frequent operation in commissioning. The use of nitrogen for
large-scale purging operations involves the added hazard of asphyxiation of
personnel.
Commissioning requires the use of utilities in large quantities. It is important to

ensure that other plants are not run short of essential utilities and so put at risk.
There is the further hazard of contamination of the utilities by fluids from the plant
being commissioned.
1.3.11 Handover
The conditions for acceptance of the plant from the constructor by the operator are
normally specified in the contract. A handover certificate is usually issued which
contains a list of reservations of items on which further work is required. A
construction punch list of uncompleted ‘B’ items is usually filled in and handed to
commissioning, during commissioning these items should be completed by
construction. When commissioning is finished a Punch list of any remaining items
not completed along with a date for punch list completion is handed to operations.
All items should be completed before the stated date.
The handover needs to be carried out formally and with special regard to safety.
The plant should be in a safe condition when it is handed over.
With a large plant it may be desirable to have selective handover of plant systems
as they are completed. This applies particularly to such systems as the steam raising
plant, the steam pipe work and the cooling water system.
If parts of the plant are to be operated while other plants are still under
construction, it is essential to take steps to ensure that these two activities do not
interact in such a way as to create a hazardous situation. Normally areas that have
been commissioned and are in operation are barricaded off, from the rest of the
construction areas, and entry is only by entry permit.

1.3.12 Initial startup

The initial startup of a plant should be thoroughly prepared. It should be recognized
that the startup may be prolonged and arrangements made to relieve personnel so
that they do not have to work excessively long hours. It is valuable to keep fairly
comprehensive records of the startup and personnel should be briefed on the
recording requirements.
All the formal system for control of hazards and errors should be operational.
These include in particular the permit-to-work system. Shift personnel will
normally work a 12 hour shift system rota.
1.3.13 Termination
The commissioning period should not be terminated until the plant is giving
reasonably satisfactory operation. The rate of improvement inevitably slows down
when the additional support of the special commissioning team is withdrawn.
On the other hand development on a plant is a continuing process and the

commissioning cannot be allowed to drag on indefinitely.
Some criteria for termination are:
(1) Competence of operating staff:
(2) Reasonable level of plant reliability:
(3) Attainment of acceptable quality standards:
(4) Satisfactory use of resources (staff, materials, utilities, throughput)
(5) Acceptable level of maintenance.

1.3.14 STARTUP TERMINOLOGY
PRECOMMISSIONING .... Pre-commissioning activities are the non-operating

work responsibilities such as adjustments, cold
alignment checklist etc. performed by the construction
contractor prior to ready for commissioning or,
mechanical completion.
READY FOR COMMISSIONING ....

Occurs when the plant or any part of the plant has
been erected in-accordance with drawings and-
specifications and the pre-commissioning activities
have been completed to the extent necessary to permit
commissioning activities to begin.
MECHANICAL COMPLETION….
Occurs when the plant or any part of the plant has
been erected in accordance with drawings#
specifications and applicable codes and the pre-
commissioning activities have been completed to the
extent necessary to permit the client to accept the plant
and begin commissioning activities. The terms ready
for commissioning and mechanical completion are
often synonymous.
COMPLETION OF WORK….Means that the contractor has erected the plant in

accordance' with drawings and specifications,,
completed his specify i.e. d pre-commissioning work
and completed his final cleanup, painting and thermal
insulation work.
COMMISSIONING..………Commissioning activities are associated with

preparing on operating the plant or any part of the
plant prior to the initial startup and are usually the
owner's work responsibilities.

MOCK OPERATIONS..,,…Or "water batching" are commissioning activities

conducted to allow run-in and operational testing of
the equipment as well as provide operator training and
familiarization.
INITIAL STARTUP ..…… occurs when feed stocks are introduced to-the plant for
the express purpose of producing a product for the
first time, often referred to as "oil-in".
INITIAL OPERATIONS.…used to describe the entire process of pre-

commissioning, commissioning, initial startup, steady
production and performance testing of a plant.


1.3.15 PROJECT EVOLUTION
PROJECT DEFINE AND SCOPE
● SERVICES
● PROCESSES
● BUDGETS
● SCHEDULES
PROJECT ORGANISATION
● MANPOWER
● EXPERIENCE
● STANDARDS
● PROCEDURES
PROJECT CONTROL
● COSTS
● SCHEDULES
● QUALITY CONTROL
PROJECT MANAGER’S ROLE
● ENGINEERING
● ADMINISTRATIVE SERVICES
● CONSTURCTION MANAGEMENT
● PLANT STARTUP



1.3.16 REQUIRMENTS FOR A SUCCESSFUL STARTUP
REQUIREMENTS FOR A SUCCESSFUL STARTUP
OWNER ORGANIZATION
ADEQUATE OVERALL PLANNING

DETAILED LONGTERM PREPARATION
DISCIPLINED & FUNCTIONING ORGANIZATION
ESTABLISHED POLICIES & PROCEDURES
RESOURCE PERSONNEL
ORGANIZATIONAL RESPONSE
TRAINED PERSONNEL
PLANT EQUIPMENT
THOROUGH MECHANICAL CONPLETION INSPECTION

CLOSELY MONITORED COMMISSIONING PROCEDURES
REHEARSED EMERGENCY PROCEDURES
ADEQUQATE STORES & SPARE PART AVAILABILITY
PREPARED LABORATORY
RESPONSIVE MAINTENANCE
WHAT IS AT STAKE?
PROFITABILITY OF THR COMPANY

SUCCESS OF THE PROJECT
REPUTATION OF THE COMPANY
LIFE OF THE PLANT
PERSONAL REPUTATIONS
YOUR TAKE HOME PAY

1.4. COST ESTIMATIONAND PRACTICAL EXERCISES

IN ASSESING COSTS
1.4.1 STARTUP COSTS
DEFINITION
All those non-capitalized costs and expenses incurred by the owner

associated with the overall plant operation from project inception
through the startup operation until some predefined production goal is
attained, these costs are separate from and in addition to project costs and
expenses.
1.4.2 STARTUP COST EXAMPLES
A. Third Generation Polyethylene unit, Established Plant, Experienced

Personnel, Purchased Technology Utilities Provided.
B. Ethane Feedstock Ethylene Plant, Proven Equipment and Technology,

Grassroots industrialized, Major Company, Inexperienced Hourly, Highly
Experienced Supervisory Staff# Single Line.
C. Ammonia Plant, Second Generation, Turnkey# New Company, Industrial

Location, Inexperienced Personnel.
D. Multiple Unit Expansion, Existing Plants, Major Company, Major Size

Increaser Experienced People.
E. Old Product, New Process, Major Size Increaser Major Company,

Inexperienced Supervisory Staff, Scale-Up from part Lab a part Pilot
Plant, Now Plant Site.
F. Naphtha Based Olefins & Polyethylene Complex, .Grassroots,

Industrialized Inexperienced Hourly, Highly Experienced Supervisory,
Minimum Competitive Design.

G. Multiple Units, Divided Contractor Responsibilities Experienced People,

Highly innovative Instrumentation.
H. Olefins Plant, Highly Integrated Into Existing Complex# Experienced
People, Third Generation Design.
J. Multiple Interdependent Units, Divided Contractor Responsibilities,
Inexperienced Personnel, Grassroots Site, Non-Industrialized Location.
K. Scale-Up from Laboratory, Old Product, New Process, Existing Plant
Site, Inexperienced Personnel.
Startup cost examples

1.4.3 STARTUP BUDGET PREPARATION
For feasibility studies, predict using percentage factors on the project

total installed cost.
For projects:
When startup activities sequence diagram are completed, develop an

estimated cost for each activity. The anticipated expenditure should be
broken down into categories, for example:
1. Owners payroll, benefits.
2. Feedstock
3. Special materials, equipment rentals.
4. Temporary assistance.
5. Utilities.
6. Operating supplies, chemicals, consumables.
7. Maintenance equipment, supplies, materials.
8. Temporary facilities.
9. Office, administration, overhead.
10. Communications, travel, transfer expenses.
11. Training.
12. Taxes, insurance.

1.4.3 COST ESTIMATION
The average is for five to ten percent of the total installed cost of the plant for
“large” projects.
The most costly items in descending order are:
1. Feed stocks for periods of startup, off specification

production and intermittent operation.
2. Manpower – The cost of operation manpower during the time

the plant is normally complete, but is not yet in full
production.
3. Startup construction/maintenance during pre-commissioning and

startup.
4. Equipment, chemicals, etc.
5. Utilities consumption during startup.

COST ESTIMATION
FORGOTTEN ITEMS:
1. Personnel Attrition (Delays for Retraining, Mis-operating, Problems, Poor

Judgment).
2. Simultaneous Problems in Multiple Units.

(Added Feedstock costs, delays, planned reaction to emergencies).
3. Now technology (Especially environmental).
4. Labor Relations Contingencies.
5. Escalation Formulas (Basis for Start-up Cost Increases)
6. Training materials and equipment.
7. Vendor Assistance.
8. Transfer expenses.
9. Hidden costs for Temporary Start-up Personnel (Transportation, housing, living

allowances, overhead).
10. Updating of Start-up cost estimating factors.
11. Recruiting.
12. Consultants.
13. Temporary Facilities (Trailers, utilities).
14. Temporary Equipment. Piping, Instrumentation, etc.
15. Consumed spare parts.

16. Off-Spec. Product Disposal.
17. Initial Inventories.
18. Insurance.
19. Government Regulations and Liaison
20. Public Relations.
21. Overtime.
22. Temporary safety and emergency control.
23. Field Design Changes.
24. Definition of Start-up Termination.
25. Laboratory Related costs
26. Product Contract Penalties.
1.4.3 Startup Cost Factors
Startup costs for process plants can be estimated by multiplying the total
installed cost by applicable factors from the tables attached.
Total Installed Cost (TIC) is the capital investment in the new facility.
The startup cost factors were developed to:
1. Estimate startup costs suitable for feasibility studies, and

2. Emphasize the influence of specific, unique circumstances on the
startup cost of a particular facility.

Startup Cost factors
1 – Base Case
Established Process On Existing Site )
Experienced Personnel )
Proven Equipment ) Base Case

Definition
Reasonable Schedule )
Single Unit )
Utilities Provided ) 6% TIC
II. - Factors For Changes to

"Base Case" (Can be plus or minus)
A - Process Factors
1. Now Product - Scale Up From Lab +7.0% TIC
2. New Product - Scale Up From Pilot Plant +5.5% TIC
3. Old Product - Now Process +4.0% TIC
4. "Single-Line" Plant Design +0.8% TIC
5. Duplicate Unit -1.00% TIC
B - Equipment*
1. Standard Process, Major Size Increase Throughout +3.0% TIC

2. Now Technology, Prototype Facilities +10.0% TIC
3. Based On Prototype, Not Yet Commercial Standard +5.0% TIC

(*If only one-third of now plant utilizes new technology, or is affected
by a size increase, apply the factor to only one-third of the TIC).
C - Plant Location
1. Grassroots, Not Industrialized +3.5% TIC
2. Grassroots, Dissimilar Industry +2.5% TIC
3. Grassroots - Industrialized, Similar +I.2% TIC
D - Personnel
1. Hourly (Operators and Mechanics
a). - More than 75% Experienced -1.0% TIC
b) - 50% to 75% Experienced +0.0% TIC
c) - 25% to 50% Experienced +1.0% TIC
d) - Less than 25% Experienced +2.0% TIC
2. Supervisory Experience (As Supervision

at Some Level as Start-Up Assignment)
a) - More than 75% Experienced -0.5% TIC
b) - 50% to 75% Experienced +0.5% TIC

d) - Less than 25% Experienced +2.0% TIC
3. Start-Up Experience
(One or More Start-ups) of Supervisors
a) - M ore than 75% Experienced -1.5% TIC
b) - 50% to 75% Experienced -0.5% TIC
d) - Len than 25% Experienced +2.5% TIC
a) - Zero Start-up Experience +3.0% TIC
D - Personnel (Cont’d .)
4. No Personnel Replacements Available +l.5% TIC
5. Replacements Available -0.5% TIC
E - Dependent Units (Utilities

Considered as Unit)
1. Two Units Interdependent +1.0% TIC
2. Three Units Interdependent +3.0% TIC

Miscellaneous
1. Unfavourable Community or Governmental

Attitude +0.3% TIC
2. Non-Union Work Force, In-Plant. -0.5% TIC
3. Tight Schedule +0.6% TIC
4. Multiple Contractors
a) - Two, 1 Engineering and

1 Construction +0.7% TIC
b) - Three Contractors +2.0% TIC
5. Uncooperative Construction Labour +1.2% TIC


1.4.5 Cost Estimation Practical exercises
There are three categories of cost that need to be looked at when considering the
start-up budget:
1.0 The costs for normal start-up equipment, the materials that will be required
and the personnel that will be involved;
2.0 The costs for any unexpected changes that may be required and additions to
the original specification that may arise once the project has commenced;
3.0 Finally, we need to consider the breakdowns that may arise in the
mechanical equipment due to unforeseen circumstances – These breakdowns
need to be repaired as soon as possible to stop the project falling behind
schedule as this will result in further costs to the project.
It is quite common to allow between 5% and 15% of the overall capital cost of the
project to go towards start-up and commissioning;
Formulae have been developed, based on previous projects, that can now be used to
estimate both the start-up time and the start-up costs for most projects. These
formulae provide sufficient accuracy for inclusion in the initial project budget;
As we get closer to the start-up period, a more accurate budget can be obtained
based on???

1.4.6. Example of Estimate Start-Up Costs
1.0 Cost = A(0.10 + B + C+ D +NE)

‘A’ = Direct fixed capital cost of the project
‘B’ = Process factor ‘C’ = Equipment Factor
■ 0.05 for radically new process ■ 0.07 for radically new equipment
■ 0.02 for relatively new process ■ 0.03 for relatively new equipment
■-0.02 for familiar process ■-0.03 for familiar equipment
‘N’ = Number of process units involved

‘D’ = Labour factor ‘E’ = Dependency Factor
■ 0.04 for labour in very short supply ■0.04 for interdependent process
■ 0.02 for labour somewhat scarcer ■0.02 for moderately dependent process
■-0.01 for surplus labour ■-0.02 for independent plants
Estimate Start-up Time

Time = a(0.15 + b + c + d + Ne)
‘a’ = Construction Time
‘b’ = Process Factor ‘c’ = Equipment Factor
■ 0.15 for radically new process ■ 0.08 for very new equipment
■ 0.05 for relatively new process ■ 0.05 for relatively new equipment
■-0.01 for familiar process ■-0.01 for familiar equipment
‘N’ = Number of process units involved
‘d’ = Labour factor ‘e’ = Dependency Factor
■0.15 for labour in very short supply ■0.25 for interdependent process
■ 0.05 for labour somewhat scarcer ■0.10 for moderately dependent process
■-0.01 for surplus labour ■-0.02 for independent plants

A Crude Stabilisation Plan is currently under construction. Its capital cost is $100
Million and it is expected to take 8 months to complete;
Because of its remote location it will be difficult to attract skilled

labour for the commissioning;
The technology is all familiar and proven technology;
Once operational the plant will be dependent on the existing Gas processing
facility for smooth operation, but it has been designed to allow it to be
isolated from the gas side given that it is a single operating unit;
Estimate the cost and time to commission this unit.

Start-up Costs and Time
Test 2
Because of its location there is an abundant supply of skilled labour for the
commissioning;
facility for smooth operation, but it has been designed to allow it to be isolated
from the gas side given that it is a single operating unit;
Start-up Costs and Time
Test 3
Because of its location there is a scarce supply of skilled labour for the
commissioning;

The process and the equipment are relatively new;
facility for smooth operation, but it has been designed to allow it to be
isolated from the gas side given that it is a single operating unit;
Test number 4
Estimate start-up Costs & Time
Because of its remote location it will be difficult to attract skilled
labour for the commissioning;
Once operational the plant will require a Gas processing facility for
smooth operation, but it has to be designed to allow it to be isolated
from the gas side given that it is a single operating unit;
Test number 1
Start-up Costs
Cost = 100 ( 0.10 – 0.02 – 0.03 + 0.04 + 1*0.02) = 100 * 0.11 = $11 Million
Start-up Time
Time = 8 ( 0.15 – 0.01 – 0.01 + 0.15 + 1*0.1) = 8 * 0.38 = 3 Months
Test number 2
Start-up Costs

Cost = 80 ( 0.10 – 0.02 – 0.03 – 0.01 + 1*0.02) = 80 * 0.06 = $ 4.8 Million

Start-up Time
Time = 6 ( 0.15 – 0.01 – 0.01 - 0.01 + 1*0.1) = 6 * 0.22 = 1.32 Months
•
Test number 3
Start-up Costs
Cost = 120 ( 0.10 + 0.02 + 0.03 + 0.02 + 1*0.02) = 120 * 0.19 = $ 22.8 Million
Start-up Time
Time = 10 ( 0.15 + 0.05 + 0.05 + 0.05 + 1*0.1) = 10 * 0.40 = 4 Months
Test number 4
Start-up Costs
Cost = 100 ( 0.10 – 0.02 – 0.03 + 0.04 + 2*0.02) = 100 * 0.13 = $13 Million
Start-up Time
Time = 8 ( 0.15 – 0.01 – 0.01 + 0.15 + 2*0.1) = 8 * 0.48 = 4 Months
1.5 SPARE PARTS PLANNING
Including practical exercises in planning and managing a schedule for spar parts.
1.5.1 Spare Parts Planning
Planning preparation requires a list of procedures that are needed, to define who,
what, where and when and to have spare parts and consumables available to do a
good job.
When starting to plan commissioning it is important first to prepare a method
statement as to how the commissioning will be carried out, set out the commissioning
procedure and adhere to that procedure. Have instrument technicians, mechanical

technicians, and contract labour for both.
It will be necessary to prepare a list of spares that may be required like, the correct
type of lubrication oil, spare gaskets, and so forth.
The basic steps for good planning are:
1. Know what has to be done (Budget)

2. Know what has been done (Commitments)
3. Know what has remains to be done (Forecast)
4. Know what is wrong early & why (Analysis)
5. Take corrective action. (Monitor)
If the proper steps are carried out the commissioning should go ahead with most of
the problems ready to be met by the correct people who have been organized at the
outset.
It is possible to have a reaction plan in preparation for the following:
1) Trouble will come

2) Be ready to minimize lost time
3) Prior planning helps to avoid disaster.
1.5.1 Spare Parts Planning
Types of Inventory
•
Spare parts and materials required for ongoing support and

maintenance of the new plant which must be added to the range of
items stocked;

• Increases in levels of parts and materials stocked to cover for

the fact that we have additional items of equipment to support;
• Spare parts, materials and consumables required to support

commissioning activities.
Spare parts and materials to support ongoing requirements

• Based on the demand of previous projects, use forecasts to
predict the requirements for current projects;
• There are two major techniques for managing independent

demand inventories;
– Reorder Point (ROP) System – also referred to as fixed-order

quantity, economic order quantity (EOQ) or Q-model;
– Periodic Reorder System – also referred to as fixed-time
period, periodic review, fixed interval or P-model.
• ROP system is event triggered, fixed interval system is time
triggered.
Periodic Reorder System

•You must decide on
– A maximum stock level
– A safety of minimum level
– A reorder interval
– Order to the maximum level at regularly spaced intervals.
– Amount Ordered = Desired Level – actual on hand
•Diagram
Reorder Point System (ROP)

• You must decide on
– A safety of minimum level
– A reorder point
– The reorder quantity
– The Economic Order Quantity
• If there were no uncertainty, ROP would be chosen as

½ * Demand + safety level.

Reorder Point System
DIAGRAM
EOQ Model Assumptions

•
The usage rate is uniform and known i.e. constant demand;
• The item cost does not vary with order size i.e. an item does
not become cheaper if we order a large quantity of the item;
• All of the order is delivered at the same time;
• Lead time is known well enough that an order can be timed to
arrive when inventory is exhausted i.e. there are no periods of
time when the stock has run out.
• The cost to place and receive an order is the same regardless
of the amount;
• The cost of holding inventory is a linear function of the
number of items held i.e. the cost does not increase if the
inventory being held exceeds a certain amount.
Economic Order Quantity
• The Economic Order Quantity (EOQ) is chosen as the order quantity

that minimises the total variable costs associated with changing order
quantities
Ordering Costs + Carrying Costs

Total Variable Costs
Total Variable Costs

Ordering Costs Carrying Costs
TC = S(D/Q) + ic(Q/2)
Cost/order x Carrying Cost %
No. of Orders x Average value of inventory

S = Cost per order

D = Demand
Q = Order Quantity
i = Period carrying costs
C = Cost per unit of inventory
Economic Order Quantity
Achieved When
Ordering Costs = Carrying Costs
S(D/Q) = iC(Q/2)
Rearranging EOQ = √(2SD/iC)
Economic Order Quantity Example

• 20 pumps all use the same mechanical seal as the inboard seal;
• Maintenance history and manufacturers’ information suggests
that the inboard seal will fail once a year on average;
• Cost of the seal is $1,000 per seal;
• The lead time from order to receipt is 4 weeks;
• Cost of ordering = $100 per order;
• Cost of holding stock = 25% of the value of the item.
• Question: How many should be held in stock, what are the key
control points?
EOQ Calculations
EOQ = √[(2x100x20) / (0.25x1000)]
EOQ = √[(4000) / (250)]
EOQ = √16

EOQ = 4
Key Control Parameters

• Set safety stock at say 2
• During delivery lead time, we are likely to use up to 2 seals;
• Reorder point needs to be at least 4, make it 5 just to be safe;
• If we receive 16 when stock has run down to 2 we have
Maximum stock level of 18, Minimum of 2 and an Average
level of 10.

2.4 Startup/Initial Operation, Testing & Acceptance .
2.4 Start Up and initial Operating Testing & Acceptance
Startup Management
Typical Start up Team
TEAM LEADERS:
PROJECT MANAGER
OPERATIONS SUPERINTENDENT
TEAM MEMBERS:
1. Project Engineers
(a) Process
(b) Mechanical
(c) Instrument
(d) Electrical
2. Operations Personnel
(a) Production Supervisor
(b) Maintenance Supervisor
(c) Plant Engineering
(d) Environmental
(e) Safety.

THE TEAM MUST HAVE ACCESS TO AND PRIORITY OVER RESOURCE SPECIALISTS.
NOTES:-

Start up management
Dual Line responsibility
Project Manager or Plant Manager becomes the Startup Director and has two jobs.

STARTUP MANAGEMENT
NORMAL ORGANIZATION
WORKS BY---
1. Rules
2. Regulations
3. Procedures
4. Systems
STARTUP ORGANIZATION ENCOUNTERS

1: Many more problems
2. Unexpected difficulties
3. Greatly increased uncertainty
4. More people involvement
DURING STARTUP---
1. Equipment doesn't operate
2. Rules are unclear
3. Boundaries of responsibility
4. Tasks are not completed

THEREFORE NORMAL ORGANIZATIONAL---

1. Communication
2. Problem solving
3. Decision making
RENDERED INADEQUATE
OVERCOME BY---
1. Additional Resources
2. Reducing inter-dependency between parts of the organization
3. Restricting the need for information processing
4. Redesigning the organization


PROJECT
MANAGER
PLANT
MANAGER
PRODUCTION
MANAGER
-Engineering -Operations -Administration

-Contractor -Maintenance -Procurement
-Startup Personnel -Engineering -Accounting
-Vendors -Technical -Personnel
-Licensors -Laboratory -Public Relations
Temporary Personnel -Safety
-Marketing, Sales


Typical Startup Organization

DESCRIPTION OF INITIAL OPERATIONS TEAM
OFFICE ACTIVITIES
1. Assist Contractor/Owner in Design Reviews and P&I Drawing Screenings.
2. Help Prepare Standard Supervisory Type Operating Manual.
3. Help Prepare Comprehensive Detailed Type Operating Manual.
4. Help Prepare Analytical Procedures Manual.
.5. Provide Manpower Estimate and Schedule for Field Startup Organization.
6. Prepare a Cost Estimate of Preoperational and Startup Expenses.
7. Help Prepare Owner's Organization Charts and Staffing Requirements.

INITIAL OPERATIONS TEAM - cont'd
FIELD ACTIVITIES
1. Prepare Hydrostatic Testing Drawings.
2. Conduct Plant Punch and Checkout and Oversee Hydrostatic Testing.
3. Perform Vessel Inspection.
4. Advise on Flushing, Steam Blowing and Cleaning Operations.
5. Oversee Instrument Installation, Calibration and Loop Testing During

Construction.
6. Prepare Startup Activities Schedule.
7. Plan and Coordinate Vendor Equipment Run-in.
8. Issue Plant Commissioning Procedures.
9. Advise/Supervise Owner's Personnel in the Commissioning and Startup

Activities for the Facility.
10. Help Provide Analytical Assistance During Commissioning and Startup.
11. Help Operate the Client's Facility for an Agreed Upon Period of Time After
Commissioning/Startup Activities.
12. Help Develop Performance Acceptance Test Procedures.

TYPICAL STARTUP TEAM ORGANIZATION

STARTUP MANAGEMENT
DECISION LEVELS
1. Management Planning, direction, performance,

allocation of resources and total
responsibility for results.
3. Area Superintendent - overall priority coordination and

progress evaluation.
3. Day Supervisor - 24 hour priorities and planning and personnel

assignments.
4. Shift Supervisor - 8 hour priorities and major shift decisions.
5. Shift Foreman - Hour by hour operation direction, decisions

and follow-up.
6. Lead Operator - Minute by minute control and adjustment

STARTUP MANAGEMENT
DECISION INVOLVEMENT
1. When time permits. obtain input from all

available sources.
2. Involve "resource specialists" in decision making process

and in setting priorities.
2. Allow "resource specialists" the maximum control over

how they do the job, and always:
a) Assign responsibility by name
b) Nail down "time to complete".

STARTUP MANAGEMENT
SCHEDULED COORDINATION MEETINGS - LEVEL 1.
LEADER: Start-up Manager
REGULAR ATTENDEES: Construction Manager

Onsite Project Management
Production Man ager
Operations Manager
Maintenance Manager
Technical Manager
Procurement Manager
Safety Manager
Contractor Initial Operations
Manager
PERIODIC ATTENDEES: Plant Manager

Project Director
V.P. Levels
PURPOSE:
TIME:
MINUTES:

STARTUP MANAGEMENT
SCHEDULED COORDINATION MEETING - LEVEL 2.
LEADER: Area Superintendent - Production
REGULAR ATTENDEES: Shift Supervisor

Maintenance Supervisor
Instrument- Electrical Supervisor(s)
Technical Leader
Day Supervisor - Production
Senior Engineers - All disciplines
Contractor's Representatives
PERIODIC ATTENDEES: Management

Safety
.Employee Relations
Purchasing
Vendor Representatives
Engineers
Ecluipment Specialists
Task Force Representatives

STARTUP MANAGEMENT
COORDINATION MEETING CONTROL
1. Begin holding the meetings during the pre-commissioning activities.

Schedule two to three per week depending on the need.
2. Set the meeting time 45 minutes to one hour after shift change.
Schedule the meeting to last one hour.
3. Always start on time.
4. Write the agenda on blackboard

a) Any attendee can arrive early enough to put an item on agenda
b) Area superintendent sets order of discussion
c) Always review progress bar-chart
5. Meeting ends on time, every time.

a) Area superintendent controls the meeting and operation time.
b) Unfinished business handled in restricted attendance or in
follow-up sessions.
6. Avoid scheduling other regular meetings

a) Startup manager must control meeting attendance
b) Minimize large meetings, maximize personal contact
7. Issue minutes immediately for thorough communications. Display on

all appropriate bulletin boards and distribute to those who didn't
attend.
8. Area superintendent will have to keep the upward decision-making

process moving.

STARTUP MANAGEMENT
GOOD IDEAS CHECKLIST
1. Don't promote a man into a new supervisory level for a startup

assignment. Allow at least six months in a line capacity to learn the
new supervisory responsibilities.
2. Try to maintain people continuity, except for death or Incompetence.
3. Maintain a record of *unusual-incidents" to publicize-to all shifts so

that they will know how-to-avoid and how-to-react.
Make shift-by-shift analysis to identify weaknesses in organization
and performance.
4. Update emergency procedures bi-weekly.
5. Keep your sequence diagram Progress Bar Chart up to date.
6. Pre-plan "holding patterns" and define "point of no return" between

each holding pattern.
7. Watch for supervisory people who "generate excitement".
8.. Keep control room traffic at prescribed levels and to specific locations.
9. Enforce the rule that only line supervision give instructions to

operators (top-notch engineers will still do it in emergencies).
10. Have stand-by instrument technicians in control room assigned to the

production foreman to do whatever he requires, immediately.
Insist on experienced mechanical shift coverage, including foreman.
12. Have interlock bypass authority defined and at the lowest-possible
level. Require a bypass record on the shift log.

STARTUP MANAGEMENT
GOOD IDEAS CHECKLIST continued
13. Discourage talk that promotes risk-taking.
14. Get rid of unnecessary alarms and lights.

. Expand alarm ranges to maximum possible. but keep "standard
condition" sheets. up-to-date.
15. Just before each new step in the startup activity scheduler hold a short
communication's session with the operators foremen and engineers, to
be sure each man knows his assignment and to communicate the
inevitable revision to the written procedures.

INITIAL STARTUP
YOU' VE PLANNED FOR IT# BUDGETED FOR IT, PROVIDED ALL RESOURCES FOR IT
- NOW YOU HAVE TO DO IT
STARTUP
SOME THINGS TO BE EXPECTING....
1. Communications, hardware, radios, phones, public address - are they

adequate and reliable?
2. Who issues instructions, how?
3. Who is allowed at the panel. Who is not allowed at the panel. How are
you going to limit control room traffic?
4. Manning, long hours, meals, transport, call-ins?
5. Holding patterns - Who decides? Forward momentum - How to keep

it.
6. Instrumentation, tuning.
7. Meetings avoidance, limiting duration and attendance.
8. Logging, log-sheets for both data and philosophy instrument/electrical.
9. Turndown stability.
10. Experience, Know where you .can and cannot do without it.
11. Troubleshooting, who, how?

12. Problem levels, assigning to solve.
13. Maintenance paperwork, do you have to put all requests in writing?
14. Safety, can you exceed design limits, should you, safe practices and
procedures?
15. Trust, working relationships.
16. Unusual occurrence reports, historical analysis
17. Test-run preparation guarantee testing

2.4 Plant Start up Sequence.

This start up description describes the plant start up with its own power generation
system e.g, gas turbine generators.
Start to bring the Utilities section on line by first starting stand by diesel generators,
when producing electricity, start up the cooling water system on manual recycle
bypass and control cooling water pressure by hand.
When the cooling water system on recycle bypass has lined out satisfactory, start
up the air compression system to provide instrument air for the control valve
instrumentation, when the instrument air system is up to pressure put the cooling
water pressure controller in service on automatic and close the manual bypass. The
cooling water is now in automatic control.
The next step is to start the gas turbines to provide power for the process plant start
up.
Check out gas turbine systems with a pre-start up list, making sure everything is
normal.
When the gas turbine push button has started the turbine, check that the auxiliaries
have come on line, e.g., start up of the starting device, fuel ignition and combustion
control, the unit will come up to synchronous speed, the generator is synchronized
to the system. Then you can set the demand accordingly and supply to the buss
bars.
During this time the Utilities units are started up, the boilers have started raising
steam, water treatment is started up for supplying boiler feed water.

When the steam header is up to pressure, steam will be supplied to the process units
for start up.
The processing units can take power, compressed air, cooling water, steam and
crude oil or gas, according to which that they use.
Safety issues & Start-Up Activities
START-UP SAFETY ISSUES
The major safety hazards are associated with the chlorine, sulfuric acid, and
phosphate injection. Caution must be exercised during initial operation of these
facilities due to unfamiliarity, even though the processes are relatively simple.
Production foremen must require all personnel involved in this work to know the
applicable safety requirements outlined in the Commissioning Safety Manual and
Department Safety Rules.
Isolation and clearing procedures will be in effect on the construction work site for
the first time on a large scale job. We must be certain that we tag properly and that
contractor personnel working with us act in accordance with our procedures.
Some areas of doubt regarding "how to tag" may develop.
These should be temporarily resolved by supervision on the job and a list

developed for immediate firm resolution the following day.
STEP-BY-STEP PROCEDURE
Responsibility
1. Complete work list items Contractor

required for safe operation.
2. Perform standard system checks:
a) Joint acceptance inspection All Departments

b) Relief valve data and Operations

installation .
c) Hydrostatic test records Operations and Instruments
d) Instrument checks Instrument
e) Pump checks Maintenance
f) Motor checks Electrical
g) Piping field check Operation and Maintenance
h) Safety rule review Safety, Operations and

mechanical
i) Safety equipment check Safety
j) Valve operation check Operations
Responsibility
k) Fire protection equipment Safety

check
1) Electrical grounding, Electrical

wiring and controls
m) Interlock Function checks Operations & Instrument
n) Spare parts review Mechanical
o) Instrument valve check Instrument
3. Check sump screens for Operations and Contractor

Cleanliness and assurance

that the screens are properly
secured in the guides.
4. Prepare check valves for Operations & Maintenance

service
5. Check operation of level Instrument

control automatic (make-up
header has already been flushed
and valve cleaned)
6. Disconnect all inlet water Contractor

lines to equipment listed
below:
Rotating equipment, GT cooling systems Etc.,

These lines are to be valved closed or blanked during the first flushing operation to
prevent flow through the lines.
Responsibility
7. Open all high point vents in Operations

the cooling water system.
8. Line-up valving so water can Operations

fill basin and all headers and
equipment except that listed in
Step 6. Close basin drain.
9. Start fresh water make-up pump Operations
10. Continue make-up water pumping Operations

to allow gravity flow to fill
water service" piping. Check

some vents for air passage to

be sure of flow.
11. Shutdown #l fresh water pump Operations

and observe basin level. If
level drops, flow into headers
is still occurring. Start #1
fresh water pump as required
to completely fill water
service* headers.
12. While filling basin, re-check Maintenance

circulating water pump lubrication
and roll pumps by hand.
13. Prime both electric motor Maintenance & Operations

driven cooling water pumps
Responsibility
14.Close all valves on vertical Operations

water return headers at cooling
tower, except one riser.
15.Start one circulating water Operations & Maintenance

pump with discharge valve
just barely cracked. The intent
is to fill the water return
system with minimum flow
to avoid flushing mud and
debris through system.
Check pump performance.
16. Close high point vents as Operations

water flow occurs from vents.

17. When all vents have been Operations

closed, water flow should
begin in north cell of cooling
tower. When this occurs
shutdown circulating water pump.
18. Line up valves or blank off Operations & Contractor
to prevent flow through all
equipment except Heat
Exchangers.
19. Shutdown the fresh water pump Operations & Instruments

and block sump level control
automatic wide open.
20. Start the fresh water pump at Operations

maximum rate. When tower
basin begins overflowing into
outfall sump, open basin drain.
Responsibility
21. Notify the Control room and Operations

Start-up one circulating water
pump. Flow rate is expected to
be approximately 6.000 GPM
due to restriction caused by few
exchangers being open.
NOTE: Initial flushing is in progress now. With

maximum make-up roughly
equivalent to circulation rates, at least a 50/50 flow of used return water from
north cell to outfall ditch via sump overflow and drain will occur.
22. Flush for six (6) hours. Operations & Maintenance
Continuously monitor basin

level and pump performance.

Check for leaks.
23. After six (6) hours circulation, Operations & Maintenance

shutdown. Pull the heads on
the flushed exchangers.
Clean the exchangers and
reassemble. Take Polaroid
pictures of the exchangers
before cleaning.
24. Provide for discharging water Contractor
to ground from inlet lines on
all equipment listed in Step 6.
25. Open valves on all vertical water Operations & Maintenance

return risers at tower. Close basin
drain valve. Return basin level
control valve to automatic operation.
Responsibility
26. Start-up fresh water pump Operations
27. With discharge valve just

barely cracked, start another
circulating water pump. After
flow occurs in all cooling
tower cells, open discharge
valve wide open.
Check pump performance.
28. After two (2) hours, Contractor

shutdown and reinstall inlet
water lines on all equipment
listed in Step 6.
29. Continue flushing for six (6) Operations

hours. Check for leaks and
piping vibration.

30. Shutdown and clean one Contractor and operations

side a heat exchanger. Check
one other exchanger. Take
Polaroid pictures. If the
heat exchangers are judged
to be sufficiently clean,
flushing will continue as
outlined below. If not operations
will have to devise other procedures.
31. Open all water circulation Operations

valves.
32. Flush entire system for six Operations

(6) hours,, using all electric
driven pumps.
33. Purchase and install all Operations & Maintenance

chemicals for water
treatment. Barricade entire
injection area and allow only
the necessary personnel
within barricade until
injection systems are operating
safely.
34. Notify lab of samples to be Operations

sent in for analysis each shift.
35. Begin chlorination according Operations and Instrument

to operation manual procedure.
(Notify vendor representative
three days prior to system
startup).
36. Begin sulfuric acid and chemical Operations

injection at minimum rates.

37. Check fan operation. Stop Operations & Maintenance

water flow to each cell as
required for maintenance
access.
38. After all fans are checked and Operations

in operation, begin sampling
hourly to adjust injection rates.
39. Continue operation until Operations

injection rates ate satisfactory.
40. If nothing has come unglued by All Departments

now, stop everything and
celebrate. You may never
be so lucky again.

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Example
Calibration Report for MOV’s


3.3 Preparing and isolating a Process Plant.
3.3 1 Introduction
The initial startup of a plant should be thoroughly prepared. It should be recognized

that the startup may be prolonged and arrangements made to relieve personnel so
that they do not have to work excessively long hours. It is valuable to keep fairly
comprehensive records of the startup and personnel should be briefed on the
recording requirements.
All the formal system for control of hazards and errors should be operational.
These include in particular the permit-to-work system. Shift personnel will
normally work a 12 hour shift system rota.
Preparation
Preparing a process plant for isolation is a large and time consuming procedure,
first of all there has to be strategy meetings with the management departments,
planning departments, operation departments, mechanical departments, electrical
departments, instrument departments and contracting department. All these meeting
will prepare the way for the shutdown.
The date has to be decided on, the scope of work has to be decided on, who does
what has to be decided on, and at what particular time during the shutdown.
The companies that buy products from the plant have to be informed as the will
probably want to increase stocks for when the plant is shutdown.
Management decide the time with the operations department who look at their
inventories, plant availability, and manning levels, and decide how to work the
shifts. The planning department works with operations to decide what equipment to
work on and in what order and then provide bar charts with manning levels and
time allowed for the completion of the jobs, over the complete shutdown.
Maintenance decide if they have enough manpower, if not, contractors are hired
and supervised by maintenance supervision instrumentation supervision and
electrical supervision.
Operations decide on when the work permits from the departments should be
completed and applied for, usually the permits are required three days before the

shutdown. The permits will be for hot work, cold work and vessel entry (if
required).
All other permits will be applied for before the work begins, e.g. radiology. The
day before the shutdown operations and other departments prepare their tags for the
shut down.
3.3.2 Plant Isolation.
The instruction from the management shutdown meeting would read that the night
shift on duty would start shutting the plant down, and that the plant should be
“down” before the day shift come on shift.
The day shift will have had all the shutdown isolation tags previously filled in with
the necessary information on the tags, equipment number and all the relevant
information supplied.
The Operations Day Supervisor and the Day Shift Supervisor will organize the shift
crew to check all relevant valves are shut and place ‘Do not Operate Tags’ on the
valves, local pump switches which should be in the closed position and locked off
with the DNO tags supplied.
In the Electrical Switch Rooms the Operations Supervisors and the Electrical
Supervisors, will electrically isolate machinery and each should put their isolation
tags on the closed switches. The mechanical technicians should also place their tags
on the ssitches as well. This is in line with the safety rules, as both the electrical
and maintenance departments may both be working on the equipment. The first tag
to be placed on the switch is the supervising electricians tag, then operations
supervisors tag and then the maintenance tag should be on last.
The tags should be removed in the reversed order.
All storage tanks should be filled as much as possible, especially the water storage
tanks, fire water, drinking water, cooling water.

Practical exercises to aid understanding, group discussion, and question and

answer session.
1. Explain the objectives of flushing the cooling water flow lines.
2. What are the major safety hazards associated with the operation?
3. Give an explanation, in your own words, why the vertical risers all
except one are closed off.
4. Which departments is responsible for performing pump checks?
5. Using all electrical driven pumps, how long is the cooling water
system to be flushed?
Group discussion
The students will be divided into groups for brainstorming and will be asked to
describe what to do in different scenarios.
You are the team leader during the commissioning of a cooling water pump. You
have to assemble the team and to ask the planning department for technicians and
the contractor for labour.
Describe the how you would do this and who would be the personnel who you will
require to carry out the task..
What are some of the problems you and your organization experienced during the
various aspects of the commissioning and start up process.
Who should be included on a commissioning and plant start up team. E.g. what
skill and knowledge will be required?
How should in house versus contract resources be utilized?
What type of qualities should be looked for in a person to be selected to lead a

commissioning project.

Can anyone describe a situation that occurred when you where commissioning a
piece of machinery and a problem occurred and you could not progress the
commissioning until the problem was solved.
What did you do to solve the problem.
The plant is still during the commissioning stage and several units are running,
cooling water plant, power plant providing electricity, instrument air system water
treatment plant etc., suddenly there is a power failure and total black-out.
What steps do you take to bring the systems back on line.

Start – Up Commissioning & Control Issues
4.1 Start-Up & Commissioning Control
4.2 Short cut Approaches to Planning
4.3 Progress Monitoring & Control
4.4 Group Discussions on Earned Value

Analysis
4.1 Start-Up & Commissioning & Control
In this lesson you will be asked to design and plan the start up and commissioning
process for one piece of machinery.
Students will each choose from the following list which piece of equipment they
would prefer to use for this example, or you can choose from your own experience.
1. An Instrument Air Compressor
2. A Centrifugal Pump
3. A Cooling Water Fan
The students will describe the proper sequence of steps to be taken and the other
personnel that will be required to complete the task.

When the paper has been completed by each student, they will be circulated to
other students in the group for evaluation; the evaluation will cover if the proper
steps have been taken in the commissioning sequence.
4.2 Short-cut Approach to Planning
This is a group activity whereby students will brainstorm with each other and the
Instructor on how to perform more efficient commissioning. It will help to bring
more awareness of the risks that can be encountered during the commissioning
process.
Topics to be discussed will be
Proper manning
The right way to complete commissioning.
The dangers that can be encountered during commissioning
The reasons why the proper procedure should be followed.
What are the are risks of commissioning a high pressure system.
Proper Manning Discussion
Points to discuss.
1. Estimate Plant Staffing
2. Extra cover for Start up.
3. Foreman Ratios.
4. Others

Estimate Plant Staffing
We will BEGIN with....
1. Process Complexity
2. Plant Location
3. People Source
Then REVIEW....
I. Company Situation
2. Supervisory Capability
3. Schedule
4. Financial Impact
5. Outside Assistance
Now Develop....
1. Emergency Manning
2. Foreman Ratios
3. Attrition Planning
4. Union Effect
5. Planned Backup
6. Training Level
7. Available Experience

8. Temporary Assistance
9. Subcontracted Services
10. Other Unique Factors
Estimate Plant Staffing

1. Project Team
Develop typical on-stream manning requirementst based on plot plant.

operator functions, patrol frequency, fulltime attention areas, degree of
instrumentation. government requirements. etc.
2. Operational Team
Repeat above by the plant operations team.
3. Independent Source
Repeat above independently through another in-company task force

contractors operations department or an outside consultant.
4. Resolve Differences
5. On the high-side remembering the basis of each source.
Expand on-Stream Manning to Cover Startup

Manning
1. Extra Coverage for Startup

Minimum a) double coverage in control rooms

b) One extra field operator for each
3) Defined jobs
c) Special manning for critical operations.
Maximum double coverage
2. Foreman Ratios
a) Normal - 1 shift foreman to 9 operating jobs

b) Startup - 1 foreman to 5 operating jobs (will normally
have more than 5 men. though)
Maintenance Startup Manning

a) Maintenance functions during commissioning and startup consume a
minimum of 150% to a maximum of 200% of normal requirements
b) Maintenance supervision should be 200% of normal staff

c) Instrument mechanics need 200% to 250% of normal complement
d) Analyzer technicians need 1 for every 6 process analyzers
e) Shift crews for one to two months
f) What happens to the rest of the maintenance throughout the plant?
Overlooked manpower
1. Laboratory
2. Purchasing
3. Warehousing, Stores
4. Safety, Security
The right way to complete commissioning

The right way to complete commissioning is to have plenty of experienced staff who have done it
all before, know what to do, know what can happen, know how to prevent it from happening and
get the job done properly.
All of the above will save the company money, time and lost production.
There are two different examples in Day 5 that will highlight the above.
Key Positions
Management Mouthpiece,
SUPERINTENDENT Planner, Organizer, Provider,
Engineer.
Overall Know-How
DAY OR AREA Indepth Experience,
SUPERVISOR Practical awareness
Forceful Diplomat
SHIFT Practical Experience

SUPERVISOR Been Through It Before
OR Performance
CRAFT Leadership
FOREMAN

Shift Supervisor experience

LEVEL 1 Experienced Shift Supervisor
An experienced shift supervisor should have a minimum of five or more

years of process plant experience with exposure to two or more different
processes and has either....
Three or more years of general supervisory experience in a complex

continuous operating process unit
One or more years of supervisory experience in a process unit similar to the

new facility with two or more routine startups.
Supervisory experience in the planning and execution of one or more initial

startups
LEVEL 2 INEXPERIENCED SHIFT SUPERVISOR
Less than above
FIFTY (50) PERCENT OF YOUR SHIFT SUPERVISION SHOULD

HAVE PRIOR EXPERIENCE ON INITIAL STARTUPS

Operator Experience
LEVEL 1 Experienced Startup Operator

Has seven or more years of process plant experience with exposure to
three or more different processes and two or more initial startups
LEVEL 2 Experienced Operator

Has five or more years of process plant experience with exposure to
two or more different processes
LEVEL 3 Operator
Has three to five years of process plant experience
LEVEL 4 Apprentice Operator

Has three months to three years of process plant operating experience

LEVEL 5 -- Helper
Has zero to three months of exposure to operating process plants and
has been given a three to six month training program in operating
fundamentals
Why Experienced Supervision?
THE IN-DEPTH OPERATING AND STARTUP KNOW-HOW

PROVIDED BY EXPERIENCED OPERATING SUPERVISION
IS REFLECTED IN....
1. More detailed long range preparation,
2. More thorough commissioning and operating procedures

3. More extensive emergency planning
4. More critical inspection during construction
5. More accurate assessment of operating supplies
6. More effective training program
7. More thorough checkout during commissioning
8. Better functioning organization
9. More effective concentration of effort
LIMITED STARTUP OPERATION AND SUPERVISORY EXPERIENCE

CAN BE COMPENSATED BY
1. More temporary assistance

2. Experienced supervision arriving earlier to develop and execute

training programs
3. Longer training periods, slower commissioning and startup periods
4. More extensive planning and more detailed procedures
5. More operators and craftsmen initially
6. Increased technical staff
7. Higher level of proven instrumentation alarms and interlocks
8. Larger spare part allowance and consumables
9. Automatic fire protection and safety training is more essential
10. Extensive emergency reaction training
11. Much closer attention to employee relations
12. Higher ratio of supervision to hourly people

Overall Training Program
1. Conduct training survey and requirement analysis
a) Establish personnel sources

b) Project educational and industrial experience levels
required
c) Prepare job descriptions and task analysis
2. Design the training system to fit the requirements
3. Finalize plant staffing and manpower buildup schedule
4. Select and train the instructors
5. Develop the training system
a) Prepare courses
b) Prepare detailed lesson plans
c) write training manuals and prepare handouts,
visual aids facilities, classrooms, etc.
d) Develop tests
6. Con duct classroom training programs
7. Provide "hands on" simulator training
8. Plan and direct on-the-job training during the latter part of mechanical
completion and commissioning
9. Organize vendor training programs at site and in vendor shops
10. Arrange for training visits to similar operating facilities

List of Typical Training Programs

1. Management orientation
2. Language training
3. Process training of supervisory and technical personnel
4. Instructor training and teaching techniques
5. Management and supervisory techniques
6. Basic vocational training for inexperienced - operators
7. Process training for experienced operators
8. Simulator training
9. Basic vocational training for inexperienced craftsmen
10. Advanced craft training for experiended craftsmen
11. Maintenance of specialized equipment for qualified craftsmen
12. Maintenance procedures for supervisory and technical personnel
13. Planning and scheduling
14. Instrument technician training
15. Laboratory training in analytical test procedures and sampling

techniques
16. Specialized courses such as fire fighting, safety, first aid. etc.

In Plant Emergency Training

Some examples of intermittent situations requiring trained reaction plans are....
1. Power failure
2. Loss of instrument air
3. Loss of fuel supply
4. Loss of steam
5. Loss of boiler feed water
6. Reduction of cooling water capacity
7. Spurious interlock functions
8. Compressor trip

Section 5
Brief Overview of Gas

Processing Plant
&
Emergency Shutdown System (ESD)

Section 5
Brief Overview of Gas Processing Plant & Emergency

Shutdown Systems (ESD)
Gas is found either in association with major deposits of crude petroleum or with small quantities
of light volatile hydrocarbons commonly termed “ Condensate”. In the former case the gas is
known as ‘ associated gas’ and in the later, dry or ‘ natural gas’.
Associated gas is separated from crude petroleum and produced water at the point of production,
at the production platform further treatment is required to adjust the water and hydrocarbon dew-
points and (if necessary) remove H2S before the gas can meet the sales gas specification.
Gas drying is always carried out close to the point of production to prevent hydrate formation but
further treating may be carried out offshore, on-shore or a combination of both depending on
such factors as proximity of existing gas transport pipe-lines and the nature of the onshore
facilities to which they connect.
Natural gas is separated from condensate and produced water at the point of production and dried
before being piped to shore where further treating may be necessary to adjust the hydrocarbon
dew point and remove H2S.
Processing Plant
A variety of processing schemes are employed offshore depending on the gas quality and
quantity, the availability of crude oil and gas transfer pipe-line and the complexity of the related
processes. The following sketches outline briefly some of the various processes.



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Emergency Shutdown Activities (ESD)
The ESD system comprises of three areas:-
( i ) Inputs (sensors on the platform which determine if specified limits have been violated).
(ii) Logic (to decide what to do if a limit has been crossed)
(iii) Outputs(signals which drive the plant to a safe state)
These three systems, when combined, form the major part of an ESD system, the following figure
below shows how inputs from plant sensors or from process control systems are transferred to a
device which, through specified logic, determines what actions are required. Outputs are then
sent to various plant items, driving them to a safe state.
Types of Shutdown
Emergency shutdown systems in the offshore industry are designed to provide the following
independently of the process control system:-
(i) Safe shutdown of the entire platform.

(ii) Safe shutdown of the entire process
(iii) Safe shutdown of independent processes

( i) Safe shutdown of the entire platform is referred to as a Total Platform Shutdown (TPS) or a
level 0 (zero) shutdown. A total shutdown is the highest level of shutdown that can take place
offshore. A TPS involves the following:-
 Shutdown of all process units.

 Shutdown of all utilities(including power generation).
 Closure of all process sub-surface safety valves ( SSSV’s)- sometimes called
down hole safety valves (DHSV’s)
 Closure of all export riser valves.
 Depressurization of entire process.
 Starting of an emergency generator.
(ii) Safe shutdown of the entire process is referred to as a surface process

shutdown (SPS) or a level 1 shutdown. A surface process shutdown involves the following:-

 Shutdown of all process units

 Closure of master valves and wing valves
 Closure of export riser valves
 Optional depressurization of the entire process
(iii) Safe shutdown of independent processes is referred to as a process shutdown(PSD) or a level

2 shutdown. A process shutdown involves the following:-
 Shutdown of the individual process

 Be able to identify what inputs and outputs are
 Understand the term “failure action”
 Be able to read cause and effect charts
Pages 15/16 describe two types of cause effect charts in use today, one is termed the “Fishbone
Chart Method” and the other a “Matrix Chart” both are effective.

Fish bone Chart Method

Cause Effect Chart~ Matrix

Maintenance Shutdown & Turnaround

There is practically no system on earth, which can continue to function efficiently without
interruption, throughout the year. Starting from human health to a big building / machinery , there
are always problems major or minor leading to interruption of it’s service. In human system, we
call it as sickness. In the case of machines, this is called break-down or failure. The extent of
damage varies from a minor level to a major extent, depending on the type of failure / shut down.
Industries are cost intensive and operate on a variety of parameters ranging from low pressure /
low temperature to high pressure / high temperatures.
If the equipments are not designed to meet these parameters effectively, equipment failure
and shut downs are imminent.
Shut downs may be classified into the following types.
 Planned shut down

 Unplanned shut down
 Emergency shut down
 Mandatory shut down
Planned shut down :
Planned shut down refers to the advanced planning process of shutting down a complete
process unit / equipments to achieve a desired task. The task may be to repair / replace the
damaged parts / sections / components of the equipment, whose performance during the operation
shows signs of deterioration. In some organizations, annual turn around policy may warrant that
the unit / units may be shut down over a stipulated period to improve the condition of the plant
and machinery , so that the unit runs without any interruption.

Here the question arises as to when to plan the shut down of the unit (s) once a year or
once in two years or once in three years etc. Shut down planning is based on the unit historical
data on failures / performance. Shut down plan again varies with the type of industry. In case of
units having parallel blocks, the shut down may be staggered as shown below.
Unit I
Down Stream Products
Unit
Unit II
Finished
Feed Product
Storage Intermediate
Storage Storage
Feed
Recycle
The figure shows two parallel primary units I & II of identical capacity whose products
are processed in a single down stream unit from where the finished products are routed to
finished product storage.
The facility comprises feed storage, intermediate storage and finished product storage
sections. This configuration has the advantage that the shut down of unit I or II will only
marginally affect production, whereas shutting down the downstream unit will affect the
production adversely. This effect may
be overcome by organizing the operation as follows.

 Plan the shut down of unit I & downstream unit simultaneously and route product from II
to intermediate storage.
 Commission Downstream unit and process feed from unit II plus intermediate storage
product.
 Shut down unit II and commission unit I
 Operate unit I and Downstream unit, with feed from intermediate storage.
 Commission unit II after turn around and go normal.
Unplanned shut down:

Unplanned shut downs are forced shut downs due to a number of reasons such as
 The non availability of feed stock
 Non availability of power and other utilities
 Lack of demand for the products produced
 Lack of / shortage of key man power to run the plant
 Limitations in storage capacity and /or
 Government stipulations.
When an unplanned shut down takes place, the planning section must have a knowledge of how
long the shut down will continue. Preparations may be made to execute the planned jobs, taking
advantage of the downtime available.
Emergency shut down:

Emergency shut downs are imposed due to a number of emergencies such as
 Plant break downs / equipment/ instrument failures
 Toxic emissions
 Fire / Explosions / Accidents
 Leakage & soil contamination
 Bomb threats etc
Though emergency shut downs are not within the control of operations and maintenance
departments, it is possible to foresee and forecast a failure from the historical data and reliability

studies conducted on total plant. Using statistical and mathematical models, it is possible to
foresee the failure of an equipment from inspection records. A typical example of predicting the
anticipated failure of an equipment is given in the example. This is based on the thickness survey
of the equipment, which showed signs of deterioration right from the time of start-up.
Mandatory shut downs :
Mandatory shut downs are compulsory shut downs the units must undertake for technical
reasons such as inspection of the equipment, pressure testing, safety checking etc due to safety
reasons.
Typical examples are High Pressure / Medium Pressure boilers, Delayed coking / thermal
cracking units, Nuclear Reactors etc. These units will be shut down as stipulated by safety
regulations and maintenance carried out as per the stipulated standards and inspected and
certified by the authorized agency, before next start up.
In the case of Delayed coking and thermal cracking, the unit will be shut down by 6 to 8 th
month of operation to de-coke all the equipment such as heater coils, fractionator sections,
reaction chambers etc. continuing the operation over and above the stipulated time is in violation
of safety practice. Hence these type of units are invariably installed with a parallel standby
stream.
Refinery Turn Around.

A refinery turn around is slightly different from the total plant turn around of other
chemical units, because of the number of down streams deployed. Yet, a refinery turn around is
very critical, as the turn around is done unit wise and at different sequences. Hence adequate care
must be taken during the turn around, as there are chances of gas leaks, gas backing up, steam
contamination by hydro carbons etc from the operating units.

A typical petrochemical refinery configuration is given below. A refinery basically

comprises a primary distillation unit followed by a number of secondary units. Hence shut down
of primary and secondary units may be staggered by careful planning.
In this case a number of down stream units such as Delayed Coker, Resid Catalytic cracker and
Aromatics recovery units are installed. In such complex processes, downstream units may be
designed to operate independently. In such cases, the annual shut down of the units are staggered
and the shut down schedule shall be such, that all the down stream units or some of them are on
stream, by proper isolation and back-up, so that the shut down does not affect the complete
production.

Petrochemicals unit turn around:
This is similar to the above case. Since various products are produced in different units,
the turn around planning should take care of what are the sections to be maintained and what are
the sequence of operation to be maintained, what are the equipments / sections to be isolated and
what impact it will have on the operability of other plants etc should be detailed out and executed
accordingly.
Turn around of utility plants:
This is the most important turn around of the industry. When the utility is shut down for
maintenance, the process units will be on minimum load are no load as utilities like power, steam
and air will not be available and an alternate arrangement has to be made. In most cases, power
may be available from the national power grid. For other utilities, there should be an emergency
captive power boiler to supply minimum quantity of steam.
Emergency power may also be made available by EDGs ( Emergency Diesel Generator
sets) if installed. During utility plant turn around, the process plant load shall be minimum and all
out efforts shall be made to minimize steam, power and air intake. Energy intensive units may be
shut down simultaneously, with utility plant shut down and maintenance activities may be carried
out in both the plants simultaneously.
Boiler shut downs :

Normally boiler units operate in parallel. For example, if the steam demand is around 250
t/hr and the power demand is 18 mw, the boiler configuration shall be 4 nos of 100 t/hr each in
parallel operation. Steam turbine may be around 3 nos of 10 mw capacity each. The configuration
is such, that at any point of time 3 boilers and two turbines are always available. A typical
configuration is shown
HP Steam Generation
100 t/hr 100 t/hr 100 t/hr 100 t/hr
Boiler I Boiler 2 Boiler 3 Boiler 4
DSH
TG1 TG2 TG3
MP Steam 250 to 300 t/hr to Power output 20 to 30

process mw

Section 6
Maintenance Shutdown & Turnaround
9 Stages

Stage 1 Introduction and Overview
 Introduction
 Critical characteristics
 The Turnaround as a rational process
 Logical level of business
 Business influences
 Turnaround business strategy
 Turnaround objectives
 A Model of excellence for Turnarounds
Stage 2 Safety Issues
 Introduction
 Turnaround Hazard Profile
 The Safe System of Work
 Developing a Turnaround Safety Plan

 The Hot Spot Inspection
 Permit to Work Considerations
 Safety Awareness and Briefings
 Auditing Safety on Turnarounds
 Conclusions
Stage 3 Quality Issues
 Introduction
 The elements of quality
 Integrated SHEOQ Management system
o ISO 9000
o EN ISO 14001: 2004-Environmental Management
o OHSAS 18001- Occupational health and safety

o TQM
o Management Audits
o Legislation and Regulation
 Quality Assurance
 Quality Control
Stage 4 Designing the Organization
 Introduction- Factors affecting organization design

 Organizational combinations
 Two different organization
 The preparation team
 The execution team
 The execution organization
 The question of competence
 Single point responsibility
 Turnaround team building issues
Stage 5 Planning and Scheduling
 Introduction
 Second level planning
 Effective work scope control
 The planning process
 The work pack
 Scheduling
 Pre – shutdown work
 Shutdowns-Maintenance Types
 Modern Shutdowns
 Definitions used in a Shutdown
 Planning the control of the event & Conclusion
Stage 6 Using Contractors
 Introduction
 Optimising the contract model
 Spread of contract types
 The Turnaround contract
 Being commercially aware

 Contractor selection
 Using contractors
 Contracting issues
 Conclusion
Stage 7 Cost Estimating, Reporting and Control
 Introduction
 Total business impact
 Waste- the hidden cost
 Cost reporting
 The cost estimate
 Volume and value
 Modelling expenditure
 Incentives
 Conclusion
Stage 8 Site Logistics
 Introduction
 Planning and logistics
 The elements of logistics
 The complexity of logistics
 Marshalling bull work
 The plot plan
 Conclusion
Stage 9 Executing the Turnaround
 Introduction
 The stages of the turnaround
 Delay – the silent gremlin
 The power of routines
 Mechanisms for control
 Starting the plant up
 Recording and reviewing performance
 conclusions

Section 6-Part 1 INTRODUCTION & OVERVIEW- Shutdown & Turnaround
Contents
1.1 Introduction
1.2 Critical characteristics
1.3 The Turnaround as a rational process
1.4 Logical levels of business
1.5 Business influences
1.6 Turnaround business strategy
1.7 Turnaround Objectives
1.8 A Model of excellence for Turnarounds

1.1 INTRODUCTION
Around the world there are many tens of thousands of manufacturing, processing
and generating plants. All of these plants need to be maintained to one degree or
another.
In order to maintain some of the items of equipment in these plants the plant must
be shut down.
The maintenance event that takes place during the period of time that the plant is
shut down is variously called a Shutdown, Shut, Overhaul, Outage, Revamp etc.
For the purposes of this course the event will be referred to as a Turnaround
(probably derived from the American phrase “turning the plant around” – meaning
to overhaul plant equipment to the extent that returns the plant to a reliable state)
It is interesting to note that for such a highly complex, hazardous and, at times,
technically difficult undertaking that affects so many companies and engages so

many people at all levels of the company, there is currently (2004) such a dearth of
information, books or training courses on the subject of Turnarounds when
compared with the wealth of information available on general maintenance
subjects. Much of what does exist seems to be built around planning and
scheduling (important as these are) and tend to ignore the business approach to
Turnarounds.
When we consider the fact that a bad decision made by management at the
beginning of the Turnaround planning and preparation phase can adversely impact
everything that comes after it, this seems a strange omission.
The purpose of the course is to present a Model of Excellence for Turnarounds that
has been developed and refined over a 30 year period by many hundreds of people
working in different industries around the world.
Defining a Turnaround
We will start with a very basic definition of a Turnaround, i.e.
“A turnaround is an engineering event during which new plant is installed, existing

plant overhauled and redundant plant removed”
This is the briefest definition that captures the three types of general activity that
are performed:
 Projects – to improve the plant in some way

 Maintenance – to return existing plant equipment to a reliable (SCALE) state

 Demolition – to get rid of plant that is no longer reliable
The balance between these three activities will be determined by the company’s
current business decisions. At one end of the spectrum some Turnarounds are
purely reliability driven while at the other they are driven by demolition and
improvement projects, with just about every combination in between.
In order to bring out as many of the characteristics of Turnarounds as possible, this
module will deal primarily with large events. However, as will be seen later on in
the module, even for small events, consideration must be given to all of the
elements of the Model of Excellence that forms the central concept of the Module.
In some cases the result of the consideration will be to discard the elements as not
necessary for a particular Turnaround in a particular company. That is the function
of management. What is unacceptable is not to consider the elements at all and fail
through either ignorance or sloppy thinking.
We will now consider some of the business issues surrounding Turnarounds
The Turnaround as a Project

A turnaround has all the elements of a project. It has a beginning and an end, as
opposed to a continuous process like manufacturing which lasts for an indefinite
period determined only by the market pull for the particular product or the life of
the plant.
As with other projects the Turnaround needs to be conceived, justified, designed,
planned, scheduled, executed and reviewed. Having said that, it is also necessary to
point out that the Turnaround as a project is unique. What makes it unique includes,
but is not limited to the following:

1 In other types of project any uncertainty is imposed by the environment such

as late delivery of materials or by an ineffective planning process that
underestimates the work required. A Turnaround, as well as being prone to
all of these environmental and process uncertainties has uncertainty at its
heart because, no matter how friendly the environment or how effectively we
plan, we do no know what the actual workscope will be until we open the
plant up and inspect it. Worldwide, the estimated range of growth in
Turnaround workscope due to uncertainty is 5 – 15%.
2 In other types of project something new is being created. In turnarounds, we

overhaul and repair equipment that has lost its geometric integrity due to
corrosion, erosion, wear and tear, damage or any of the many other failure
mechanisms. This can lead to increased hazard and/ or unpredictable
technical difficulties.
3 In many other types of project the execution phase may be as long as, or
longer than, the planning phase. Turnarounds, especially large ones, take
many months to plan but are normally executed in a few weeks during which
a large number of people perform a large volume of work in a limited space
often under time pressure.
1.2 CRITICAL CHARACTERISTICS
Due to the above factors (and others too numerous to mention here), a
Turnaround can appear very confusing to the untrained eye (See Figure 1.1).

Many things seem to be happening in a random or unrelated manner and there

seems to be a lot of hustle and bustle.
It would be comforting to state that this is appearance only but the hard fact is
that many companies do not perform Turnarounds very effectively – so that,
although a great deal of effort may be put into the executing the event, the
results are unsatisfactory.

One “Murphy’s Law” for Turnarounds states that:
“Turnaround planning effectiveness is inversely proportional to the number of

radios required on site during execution”
The point being that the less effective the planning is the more need there will
be for on-site coordination and fire fighting on the day (with its need for high
volume and frequent communications – hence the radios). This is needed to
compensate for all of the details that were not properly planned. The author
once audited a Turnaround where there were more than 60 radios in operation!
If we are to extract an rational approach from all this complexity that will
assure, as far as is possible, excellent performance, we need to understand the
key relationships that influence the planning and execution of the Turnaround,
identify the critical elements that need to be managed and then integrate those
elements into a rational model.
The first step to understand the complexity of Turnarounds is to identify critical
characteristics that, above and beyond planning and managing the work, add to
the complexity of the event. The Turnaround manager and his team must deal
with issues including but not limited to the following (See Figure 1.2):

Unfamiliarity
This may involve such issues as: performing work or using work processes for
the first time or using people who have not worked on the plant before and
therefore are an unknown quantity. Also, those people will be unfamiliar with
the plant and its systems. The antidote to unfamiliarity is good training, briefing
and supervision.
Uncertainty
This has already been discussed – the fact that we are not certain that the work
we have planned will be the actual workscope on the day. Nor can we be certain

of the impact any emergent work will have on the day. The antidote to
uncertainty is contingency planning.
Complexity
The magnitude of complexity in a system is determined by the number of parts
in the system and (equally if not more important) the relationships between
those parts.
A turnaround involves many systems, processes, tasks, people, materials,
equipment, services and facilities. These “parts” and the relationships between
them need to be planned, organised and coordinated to enable a relative large
number of people to effectively perform a significant volume of work in a very
short period of time in a limited space, often working under time and financial
pressures and still produce safe, timely, cost-effective, high quality result. This
makes a Turnaround highly complex. The antidote to high complexity is
effective planning and preparation.
Increased Hazard and risk

Many of the work processes and practices used on Turnarounds are inherently
hazardous. On the one hand we have processes such as welding, grinding and
burning and on the other we have practices such as working at height, working
in confined spaces and use of dangerous chemicals and gases. What adds greatly
to the hazard is that so many of these processes and practices are performed
simultaneously, with people working above and below each other or adjacent to
each other. This interaction significantly increases hazard and risk. The antidote
to this is effective safety systems and management.

Impact on business
Turnarounds are expensive events and the money used to perform them comes
straight from the profit margin of the company. But more than this, we must
consider the profit lost when the plant is off line and not producing. In some
industries this loss of revenue can dwarf the cost of the event. The impact
increases if the event overruns on duration or overspends. The antidote to this is
effective financial management of the Turnaround and a high degree of
integration between technical and financial planning.
Financial pressure
Because of the above, business managers may put pressure on the Turnaround
Manager to minimise Turnaround costs. This is acceptable so long as it does not
lead to “cutting corners” on either work or quality. The antidote to financial
pressure is effective cost estimation, reporting and control and buy-in from the
senior management to the objectives of the Turnaround.
Time pressure
The requirement should always be to complete the Turnaround in the shortest
possible time commensurate with safety and good workmanship. It may be that
business managers want it even shorter than that. Again, this is acceptable so
long as it does not compromise safety or quality. The antidote to time pressure
is buy-in by the senior management to the objectives of the shutdown.
Multiple interfaces

On a large overhaul there can be 30 or more different client, contractor and

specialist companies involves. The interfaces between them must be effectively
managed to avoid conflict or confrontation. The antidote to the effects of
multiple interfaces is good organisational design.
To effectively manage the above critical characteristics, the Turnaround

manager and his team have to be effective facilitators (people who take action to
enable other people to perform their work effectively) and must insure that
information is shared with the people who need it at any given time.
1.3 THE TURNAROUND AS A RATIONAL PROCESS

The Textbook that accompanies this Module “Turnaround Management” is a
detailed study of the whole Turnaround Process from beginning to end and contains
a lot of very detailed information on how the process is advanced, stage by stage.
Earlier in this section it was stated that the Turnaround was a “project” unlike the
“continuous process” of production. However, viewed from another perspective the
Turnaround can also be regarded as a process in that it consists of “a logical
sequence of rational activities performed to gain a specific outcome”. Rational
simply meaning that there is a reason underlying each activity.
Figure 3 demonstrates this in outline. The model of the process originally had only
4 phases. The 5th phase was added to incorporate the principle of continuous
improvement – and, paradoxically, transformed the business of Turnarounds (as
opposed to the single event) into a continuous process, so that individual
Turnarounds are seen as links in a chain that continues for many years rather than
as single events that that are separated by time.

1.4 LOGICAL LEVELS OF BUSINESS

The logical relationship between different business levels can be seen in Figure 1.4;
the “task” is at the centre of the Turnaround and is carried out by resources whose
interest is in maintaining components. Their activities are controlled by the larger
frame of the Turnaround that is concerned with completing the work scheduled for
the event. The Turnaround is, in turn, controlled by the larger frame of
Maintenance whose concern is maintaining the plant function in order that

production (larger frame) can maintain the quality and though put of its product,
allowing the business (largest frame) to maintain business effectiveness. This
indicates the impact that the Turnaround can have on business because if its outputs
are ineffective than all of the frames above it will be adversely affected.
1.5 BUSNIESS INFLUENCES
On the other side of the coin, technical drivers and business issues can have an
impact on the Turnaround. Figure 1.5 shows this as it applies to the timing and
duration of the Turnaround. In this example the timing and duration is strongly
influenced by the sales cycle. Obviously, from a business point of view, the best

time to perform the event is when profit from sales is at its lowest and duration
needs to be minimised to prevent lost production. The dip in the sales cycle
generates a window of opportunity and the business can then decide on the optimal
start date for the event and the ideal length. If other circumstances or requirements
prevent the Turnaround being performed during this time then the business
managers must search for alternative windows of opportunity.
1.6 TURNAROUND BUSINESS STRATEGY
The above interactions between business and the Turnaround generate the need for
a business approach to Turnarounds, where the management makes rational and
comprehensive decisions about Turnarounds that will minimise their impact on

business while maximising their contribution to plant reliability. In order to do this

the management must understand Turnarounds on two different levels and then
integrate those levels by fostering a healthy relationship between them (See Figure
1.6).
This generates a number of issues that are the business of, and can only be
processed by, the senior management. Figure 1.7 shows the main considerations.

The Business Level

First and foremost, the ultimate goal of the management should be to totally
eliminate Turnarounds, whether by design out or use of improved processes. This
goal may seem like a pipe dream to some but the idea behind it is to keep
everyone’s eye on the far horizon of maintenance and to constantly question the
relevance of Turnarounds as a maintenance strategy.
Consider the improvement that has been made in many “plants” in the past thirty
years. One example is automobiles. If someone had suggested thirty years ago that
manufacturers should be able to give three or five year warranties with their cars
and only service them every 15000 to20000 miles they would have been branded as

fools. And yet is has come to pass through improvements in materials, design and
manufacturing processes.
Granted, the above case has not totally eliminated the need for “servicing” but it
has gone a long way towards it. Similarly, many companies that used to shut their
plant down every year to overhaul the equipment have increased that cycle
(through similar means to the automobile industry) to once every two or three years
– and some even longer than that. Our success at eliminating Turnarounds is
limited only by our belief in the possibility of doing so.
Next the company needs to align the Turnarounds with their business strategy,
giving it the same consideration as other business elements (production, sales etc)
so that they compliment each other rather than conflicting – or at least minimising
the magnitude of the conflict.
A broad business view is required that considers the issues that drive us to perform
Turnarounds (legislation, plant performance etc) and those elements that constrain
us when we do them (QQTMS) so that they are balanced in such a way as to
resolve conflicts between them so as to optimise safety, cost effectiveness, duration
and quality of workmanship.
In addition, those companies that are most effective take a long term view, seeing
succeeding Turnarounds as links in a chain where each successive link can be
improved to make it better than the preceding one by feeding forward lessons
learned on each event to the next one. Otherwise the company is at risk of suffering
the effects of corporate amnesia (especially where the gap between events is 3

years or more) because it “forgets” how it did the last event. This segues neatly into
Lenahan’s “law of repeatability” which states that events that are repeated should
get less expensive each time they are done. This is significant because the author
has polled a large number of companies and asked them the question “how much of
the work you do in one Turnaround is merely a repeat of work that you did in
previous Turnarounds. The answer lies in a band between 65 and 90%!
Finally, there is a need for the management to understand the total business impact
of shutdowns – which balances all of the various losses and expenditures against
each other.
Consider the case of a company that did not understand the principle of total
business impact and which kept the lost profit sustained due to loss of production
strictly segregated from the actual cost of the Turnaround. The Turnaround
Manager approached his manager to request an increase of £35K in the
Turnaround budget (of £1.2M) to allow for extra resources and equipment hire.
The potential payback would be a reduction of 2 days in the duration of the
Turnaround. The offer was refused as the manager’s remit was to minimise the
direct cost of the Turnaround. What was missed because of the
compartmentalisation of costs was the fact that two days production was worth
£160K. A return of approximately 360% on the £35K investment. Is that good
business?

Figure 1.8 goes a little deeper into the subject by showing the next level of detailed
management consideration of the business level.

The event level
This level concerns the issues that the Turnaround manager and his team need to
consider (See Figure 1.9). First, Turnarounds are costly events and require tight
control to minimise the impact on company profits. Next, the complexity of the
event caused by the many elements that have to be integrated added to the fact that
as an engineering event it will require planning and preparation, including safety
planning and systems because it is also a hazardous event. Reliability needs to be
taken into account because that is the whole purpose of the Turnaround. Finally it
needs to be recognised that, in many industries there are mandatory legal
requirements imposed on maintenance and these must be fulfilled.

Figure 1.10 shows more detailed considerations and these will be discussed at
length during the remainder of this module.
Effective relationships between elements in a system are as important as the

elements themselves. In the business of Turnarounds one of the most crucial
relationships (See figure 1.11) is the one between the senior management (who set
the policy for the Turnaround) and the Turnaround Manager (who turns the policy
into action). Unfortunately, in some companies there exists no such relationship

and the senior management abrogate their business responsibilities and devolve
them upon the Turnaround Manager – only seeming to take an interest if the event
overruns, overspends or is blighted by accident or incident. In the worst cases their
interest seems to be directed towards fixing the blame on some hapless manager;
blame that rightfully belongs with themselves.
1.7 TURNAROUND OBJECTIVES
All business enterprises require objectives to measure their performance against

and Turnarounds are no exceptions. Figure 1.12 lists the objectives for

Turnarounds. This may seem straightforward but often when there are a number of
objectives they may clash so that meeting one can often result in failing to meet
another. Principle among the conflicts between Turnaround objectives are the
following:
Safety Vs productivity
One category of underlying causes of accidents is entitled “inappropriate
motivation” and what it means, quite simply, is putting productivity before safety.
Whether this is generated by the management or by the workers themselves

(especially if they are on an incentive bonus) it can lead to a very undesirable

outcome.
Reliability Vs Workscope
In a situation where there is a lot of pressure to minimise the amount of work done
in the Turnaround it is possible to convince oneself that a particular task is not
really necessary, only to find when the plant comes back on line that the direct
result of the task not being done is a reduction in plant reliability.
Workscope Vs Cost
This is an example of “money for work Vs work for money” in action.
Cost Vs Duration
See again the case study in section 1.5.
Duration Vs Quality
If unreasonable pressure is put on people to “hurry up and get the job finished” in
order to minimise duration, there is a risk that they will cut corners to speed the job
up and, in consequence, not complete the work properly.
A case in point is of a fitter who was being pressurised by his supervisor (who was
in turn being pressurised by his manager) to hand over a heat exchanger to
production after the bundle had been pulled, inspected and replaced. The fitter
informed the supervisor at the end of his dayshift that the end cover was back on

(this normally signified the completion of the job). Later that night the production
team pressured up the cooling system and the heat exchanger leaked atrociously.
The plant was taken off line again (causing a delay of 12 hours). When the studs
were inspected it was found that the nuts were only finger tight. The following day
when the supervisor took the fitter to task over this the fitted replied “I only told
you that the end cover was back on – I didn’t say the nuts had been torqued up”. In
his haste to get the job done, the supervisor hadn’t made the proper checks and the
consequence of his action was to extend the Turnaround by 12 hours – the exact
opposite of what he was actually trying to accomplish!
Managing these potentially conflicting objectives can be a series of fine balancing

acts. Many of them can only be resolved by senior management – which is why it
is imperative that they are centrally involved in setting the policy and objectives for
the event.
1.8 A MODEL OF EXCELLENCE FOR TURNAROUNDS
There are thirteen crucial elements to the basic model and each has a guiding
principle to focus everyone on the critical requirements of the Turnaround. They
are
Element Guiding principle
1. Organisation Professional “One team” design”

This is concerned with the people who will plan, prepare and execute the
Turnaround and is based on two fundamental tenets, 1) that the organisation be
designed to suit the requirements of the job – rather than patched together from
available people, and 2) that all of the disparate organisations involved are
integrated (so far as is possible for an ad hoc team) into “One Team” so that
everyone has common objective.
2. Planning Rational “task centred” work control

The task is at the centre of the Turnaround and task requirements generate every
one of the Turnaround requirements (cost, manpower, methods, materials,
machines). There must be a good reason why any task is on the worklist and the
worklist needs to be stringently controlled.
3. Contractors Focused “Win – Win” relationship.

Once again the issue of relationships rears its head. The requirement is to reach a
position where the client is getting value for money and the contractor is making a
reasonable profit. This implies mutual respect and close cooperation based on each
party understanding the needs of the other.
4. Costs Aggressive “Value for Money” strategy

The Turnaround manager is given stewardship of the company’s money and it is
incumbent upon him to ensure that the company gets value for the money it spends
and that, as far as is possible, all activities that waste money are aggressively
hunted down and eliminated.

5. Logistics Dynamic “Right – Right – Right” approach

At its most basic level, logistics concerns getting the right thing in the right place at
the right time. In order to achieve this a dynamic approach is required where there
are people in the organisation whose sole responsibility is the procurement,
reception and distribution of all materials, equipment, services and facilities
required to perform a Turnaround
6. Execution Streamlined “Results oriented” approach

Taking all actions necessary to find the shortest and simplest path from the
beginning to the end of the event and keeping everyone focussed on the end result.
This involves a great deal of coordination. There is a saying that “no plan ever
survives the first day of execution”. Effective execution is about responding to
reality and taking what actions are necessary to hold to the spirit of the plan even
when the substance changes.
7. Termination Serving the wider system

Once the scheduled (and emergent) work is completed we ensure two critical things
happen. The first is that the plant is handed back to production or operations team
in a fit condition so that the return to full production can be accomplished in the
swiftest and smoothest means. The second is that we must capture all of the
learning form the event and feed it into our “Improvement through Repeatability”
program.
8. Safe system of work Putting safety first last and always

Turnarounds are inherently hazardous undertakings and it is incumbent upon

management to provide the highest level of safety to safeguard the health and
safety of people and the protection of the environment. Only through a managed
safety program can this be accomplished.
9. Total quality approach Getting it right first time

To be successful the shutdown process requires inputs that are fit for purpose. In
computing terms there is an acronym “GIGO” which means Garbage in > Garbage
out. If we do not procure the right people, materials, equipment and services then
we cannot expect to achieve the objectives of the Turnaround. Quality has two
aspects – Quality Assurance which involves actions taken
10. Communication Strategy Say what you mean what you say
Effective communication is absolutely crucial to the success of the Turnaround. We
promote good communications by establishing a strategy that allows us to specify
what information is required, who will receive it, by what means and when it will
be transmitted.
11. Audit Program Inspect what you expect

We learn most by auditing what we do (when we are doing it), analysing the
findings of the audit and making recommendations for improvement as we go
along. Audits are best carried out to examine the proposed management strategy for
the turnaround, the systems to be employed on the turnaround and people’s
compliance with the systems provided.
12. Improvement via repeatability Continuous improvement

Closely allied to audits is the review stage of the turnaround where we collect,
collate and analyse the comments of those who were involved in the event. When
we understand what went well and what didn’t, and the root causes for inadequate
performance we can the record our findings and use them as the basis for an
improvement program that will be fed forward into future turnarounds, ensuring
that we improve continuously.
13. Management overview Integrated business strategy

Management is the only level that can have an overall view of Turnarounds and it
is only by understanding the events in a business context and continuously
challenging how we perform them that the company can reap the full benefits from
all of the effort that is put into planning and managing a Turnaround.
Figure 1.13 shows how these elements are integrated into a single model and
identifies a specific objective for each. Note that the continuous improvement
principle is incorporated into the model.


Figure 1.14 represents the Model in more Detail. The remainder of this Module will
be dedicated to the workings of the Model of excellence.


1
Managing Commissioning- Start-Up- Shutdown
Conclusion
This section analysed some of the critical characteristic Of Turnarounds and
reviewed business strategy and the business issues that influence it. We than
explored the relationship between senior management and the Turnaround
Manager and his team. Finally the section laid the foundation for the
remainder of the module by introducing in outline the Model of Excellence
for Turnarounds.
Prepared by JMW- Training Purpose Only 1

2.1
INTRODUCTION
In Most countries, industrial companies must to conform to safety
legislation. In the UK for instance, legislation is imposed by the “Health and
Safety at Work Act” that obliges the management of companies to take all
reasonable and practicable steps to ensure the health and safety of their
employees, and the “Environmental Protection Act” that obliges them to
take all reasonable and practicable steps to protect the environment.
Many companies have very well developed safety plans that cover all known
eventualities during normal production. It is not within the scope of this
module to discuss the company’s normal safety systems.
Purpose
The purpose of the module is to consider the differences between
Turnarounds and normal production that change the hazard profile of the
plant and generate the requirement for additional (and in some cases
different) safety measures and then to discuss the approach required to
match the increased hazard profile.
Contrasting Hazards
If we first consider the hazard profile of a plant during normal production
(See Figure 2.1) we find that the plant is doing what it was designed to do -
making money (or should be!) because it is operating in a steady state
condition where one day’s operation is much like the next. The working

routines for operating and maintaining the plant are well defined and
familiar to the production/ maintenance team because they are normally
experienced in handling the plant and have a wealth of local knowledge not
only about the operating behaviour of the plant but the known existing
hazards on the plant. The normal safety system should be adequate to cover
this situation.
Contrast this with the situation that pertains during a Turnaround, firstly, the
plant is not doing what it was designed to do - it is losing money because all
or part of the plant is shut down and has been taken apart. This introduces
hazards of a kind not normally experienced during normal production
(moving plant and cranes, confined space entries, huge increase in the

number of people working on the plan etc). In place of the steady state there
is a constantly changing hazard profile – the hazards present during the plant
shutdown differ from those during the performance of the scheduled work
and differ again from the hazards during start up (and of course there are the
unexpected changes generated by emergent work).
In place of familiar working routines there may be unfamiliar tasks –

maintenance tasks that no one of the current team has experience with, and
project work. In place of the relatively small team of operators and
maintainers who are familiar with the plant there is the use of contractors
some of whom may never have been on the plant before, none of whom may
have the same commitment as permanent employees, and their use of
inherently hazardous processes that induce hazards that are not normally
present on the plant.
The crucial safety question

With all of the above differences between normal production and
Turnarounds the one crucial question that should be asked (but often is not)
is
“Are our normal safety procedures adequate to cope with a Turnaround?”
If the answer to that question is NO, and except for very small events or very
simple plants it is almost certain to be no, it then follows that something
needs to be done to compensate for this lack or we risk putting health, safety

and the environment at risk. It is as simple as that. If we are ignorant of the

risks then that are poor or sloppy management but if, we know there are
risks and we then do nothing about them, then that is nothing short of
criminal.
2.2 THE TURNAROUND HAZARD PROFILE
In order to deal with the hazards generated by the Turnaround we first must
understand the parameters of the situation that causes them. There are a
number of issues that generate hazard, some of which may be outside of
normal awareness and only come to be known though bitter experience.
Figure 2.2 shows the main issues. There are many more but we have limited
space and will concentrate on the main issues.

Volume of Work
A turnaround normally involves a large number of different types of tasks
performed in a limited working area. Another layer of hazard is added by the
fact that, although each of the tasks may have been risk assessed
individually, the interactions between them may not have been. When time
pressure is added to this it only serves to increase potential hazard.
Large Workforce
During a Turnaround many different disciplines are used (inspectors,
radiographers, fitters, electricians, instrument technicians, civil workers,
welders, plumbers, riggers, scaffolders, laggers, water washers, cleaners
and many specialists) all of whose work carries its own individual potential
hazards as well as hazard that may be generated by interactions with other
disciplines and which must be interlocked into a single schedule.
The people involved may be supplied by a number (sometimes a large
number) of different organisations – all with their own individual objectives
that may conflict with each other’s and the client’s objectives
Unfamiliarity

Contractors may be unfamiliar with the client’s safety systems. It is though,

interesting to note that up till about five years ago a universal judgement of
clients was the contract companies’ safety standards and performance was
inferior to the clients. With the advent of CDM (Contract Design and
Management) the situation, in some cases has been reversed and it is now
the contractor who judges the client’s safety standards and performance to
be inferior. Some of the work done on the Turnaround may be unfamiliar
because no one has actually done it before and the hazards are not plainly
known. Another shortcoming of using contract labour is that they are not
familiar with the inherent hazards on specific plants (and do not spend
sufficient time on the plant to ever become familiar with them)
Intrinsic task hazards

Many tasks have hazards inherent in them whether by the nature of the task
itself (disassembling a structure that might suddenly move in an unexpected
way), the location of the task (working at height or in confined spaces), or
the processes used to perform the task (welding – risk of “flashing”, grinding
– production of sparks etc). Also the heavy equipment used to support the
task may introduce its own hazards (consider the use of a large crane to lift a
heavy object over an area where people many people are working!)
Proximity working
When people doing one task are working in the same are as other people
doing another task; or when one team of workers is working above another
team of workers, there is an increased potential hazard, even if the
interactive hazard has been risk assessed. This is because people are not

always as aware of the dangers inherent in a situation as we might like them

to be. Awareness is a developed skill, not an inherent trait in human beings.
Environmental issues
This refers to the immediate working environment. This may be produced by
the weather (wind, rain, snow, low or high air temperatures) or generated by
the work that is being done (pollution from product emissions, noise from
engineering equipment or dust produced from disassembling equipment).
Whatever the source, it all adds to the hazard.
Business pressures
This is a more subtle issue and can be generated by pushing the work-crews
unreasonably due to time or financial pressures. If the management has
unrealistic expectation on costs or duration this can exert pressure on those
doing the job and this can increase hazard.
Emergent work
If work emerges during the event that was not planned it can often cause a
change of intent.
For example the relatively simple task of inspecting the welds inside of a
vessel is complicated if cracks are found. Now the relatively simple job
becomes complex and the hazards change: the cracks have to be ground out
(sparks and noise) repair welded (naked flame and fumes) and then
radiographed (risk of radiation), all in a confined space. A new risk
assessment must be carried out and new permits to work issued. If the task

happens to be on the critical path so that a delay will extend the duration of
the Turnaround, people tend to go into “fire fighting” mode which is
notorious for increasing the hazard.
2.3 THE SAFE SYSTEM OF WORK
In order to combat the above layers of hazard we need to have a system for
working that ensures, as far as is humanly possible, the health and well
being of the people who actually do the work on the Turnaround. This is,
and can only be, achieved by managing safety. Management are in control of
the Turnaround and are therefore responsible for the safety performance.
Good management requires a system.
The concept of the “Safe System of Work” was designed to envelop the
worker in a notional “safety bubble” by a process very similar to Quality
Assurance by asking the question required by the Law of requisite variety:
“Can we identify all of the potential hazards likely to threaten the

Turnaround and take action to eliminate them or, if elimination is not
viable, guard against them?”
The basic system is founded on 6 critical principles. They are
1 A work control system

2 A safe working environment
3 A safe workplace
4 A safe Task
5 A safe worker

6 Safe materials and substances
Looking at the 6 elements in more detail (See Figure 2.3) we get:

The work control system

This has been defined as the worker’s last line of defence against accident or
incident. It involves the isolation of the equipment (whether electrically or
physically) and the issue of permits to allow people to perform the task and
these activities need to be performed by responsible persons who are
qualified to do them.
The work control system should be based on risk assessment - the

requirement that those planning the task must identify the existing hazards
inherent in the plant equipment upon which the task is to be carried out,
specific hazards that may be induced by the task itself, and specify the
precautions that need to be taken to eliminate or guard against the hazards.
Above all, the system should be as simple as possible to make it user
friendly. There have been many cases where a spot check has revealed the
fact that the worker on the job did not, for instance, understand the permit –
that is, if he had seen it at all.
The Safe environment

Ensuring that the worker is protected against all of the environmental hazard
through the use of such items as weather protection (including the secession
of work if the weather becomes to inclement); extractors and filters to
control dust and heaters/ driers to control damp; control systems to prevent
the uncontrolled emission of any substance.
Safe workplace
Ensuring the there is adequate and safe access to the work place and, should
it be necessary, safe egress. This is of special importance when people are

working in confined spaces or locations with difficult access (underneath

gratings etc). In addition we must guard against any unavoidable hazards
such as hot pipe-work or moving parts in the work area. And finally, the
subject that probably causes more grief than any other on Turnarounds –
Housekeeping. Workers must be trained, briefed and encouraged to keep
their work-places tidy and free from any object or substance that could cause
someone to slip, trip, become tangled in or bump into anything.
Safe Task
The object of planning should be not only to find the most cost effective and
technically feasible method for performing a task but also the safest method.
In fact, safety should override other considerations. If the job cannot be
made safe then it should not be done! This applies to the interactions
between jobs as well as the individual jobs themselves. This may require a
number of ancillary plans such as Lifting Plans (for heavy or awkward
loads) individual safety plan (for extremely hazardous tasks) and rescue
plans (especially for confined space entries). The worker should not be put at
risk by the task he is performing.
Safe worker
As to the workers themselves, they need first and foremost to be competent
at their job because incompetent workers can injure themselves and others
simply by doing the job in the wrong way. They must also have “safety
awareness” that comes only through safety education and briefing backed up
by experience on the job. Workers who have not worked on a Turnaround
before should be heavily supervised to ensure that they are aware of their
situation and are complying with the safety rules. Finally, it is incumbent

upon companies to ensure that the workers (including contract workers) are
provided with serviceable tools to perform the work, Worn, damaged or
badly calibrated tools and instruments are intrinsically dangerous.
Safe Materials and substances

We use many different materials, proprietary items, gasses and chemical
substances on Turnarounds and, once again it is management’s
responsibility to ensure that there are adequate systems to ensure that they
are safely used, handled, stored and transported. For chemical substances
companies are obliged by law to comply with COSHH Regulations (Control
of Substances Hazardous to Health).
3.4 DEVELOPING A TURNAROUND SAFETY PLAN

Having recognized the hazards generated by the Turnaround and having
formulated the 6 principles of the safe system of work to cope with them and
erect the safety bubble around each individual, we now need to formalise our
approach to safety by means of a safety plan. Some companies choose to
write a specific safety plan for Turnarounds and other choose to “write in”
codicils to the existing safety plan for normal operation. These are normally
identified as “Applicable to Turnarounds only”. Either method is acceptable
so long as it conforms to the 6 principles and to the Law of Requisite
Variety.

We will now consider a process that can be used to arrive at a workable

Turnaround safety plan. It includes the fallowing 5 developmental stages
(See Figure 2.4):
1 Define safety drivers
2 Specify safety issues
3 Consider Safety Capabilities
4 Formulate a Safety Policy
5 Generate a Safety Plan
And, looking at these in more detail, gives us:

Define Safety drivers

Put simply, what are the things that drive us to strive for a safe event? These
can be divided into two categories. At the business level, high level drivers
such as the legislation that covers maintenance work; the company’s desire
to be seen in public as a company that cares for its people and the
environment; and the culture within the company that demands “safety first,
last and always” At the event level, the actual hazards existing on the plant
or induced by working process – especially unavoidable hazards. In addition
to these is the issue of unfamiliarity that permeates many Turnarounds the
needs to be addressed. The drivers indicate what has to be done; what
hazards have to be addressed

Specify safety issues

Once we know what we have to do we must address the “how”. First, we
need to set our safety objectives. The uncompromising approach to safety
drives us towards zero tolerance on accidents and incidents. We must also
create an approach to safety that is consistent (same rules for everybody:
client and contractors), based on educating people to raise their awareness;
considers whether initiatives would help to raise the profile of safety on the
Turnaround and lastly, provides a means of monitoring safety performance
to ensure compliance, and a means of rectifying any shortcomings.
Consider Safety Capabilities

Ask the question:
“Do we have the ability, as we stand, to operate the safety system

effectively?”
And consider three critical aspects
1 What has been our past safety performance on Turnarounds.

Satisfactory? Accident free? Or were there shortcomings that led to an
unsatisfactory outcome. And, if we did not do it well in the past, what
is there to indicate that we will do any better this time.
2 Looking at the present, what capabilities do we have now to organise
and run a safe system of work on a Turnaround and are there any
shortfalls we can identify.

3 If we do identify shortfalls what options do we have to compensate for

them? Training of existing people? Engagement of new people?
External assistance? And what, if any, level of improvement do we
need to achieve to render us capable of running the safe system of
work effectively.
Formulate a safety policy

Once having brought our level of capability up to the required level, we need
to communicate to everyone what is expected of them, when they work on
the Turnaround, in the way of obligations for ensuring safe practice,
standards and specifications that must be achieved, procedures that must be
complied with etc. It is important that the policy is clear and specific so that
the last stage in the process can be effectively developed.
The safety plan

This is the culmination of all the effort. The safety plan is a statement of
intent that responds to the safety policy. This is the “how” component of the
safety system. It lays out in detail how the Turnaround manager (who may
be a client manager or a contractor manager) intends to fulfil the safety
obligations, what standards he is going to impose and what specific
procedures he will use. Many contractor companies have well developed
Turnaround safety plans based on CDM principles.
At the other end of the scale there are client companies who do not feel it is
necessary to write a specific safety plan for a Turnaround. They seem to be
ignorant of the adage “failing to plan is planning to fail”. Imagine the

reaction if you made the statement –“we plan the work, we plan the costs,
we plan the logistics but we don’t plan safety!
In detail, the plan deals with every aspect of safety on the turnaround. Figure
2.4 lists some of these but the exact list of issues covered by any safety plan
would depend upon the hazard profile of a particular Turnaround.
2.5 THE HOT SPOT INSPECTION
Some of the issues covered by the safety plan will be generated by the
condition of the plant itself. In order to ascertain the condition of the plant a
“Hot Spot” inspection is carried out. What we are looking for is any
evidence of hazard.
The inspection takes place prior to the Turnaround and audits the plant
condition; visually inspecting the plant and looking for the types of fault or
condition detailed in Figure 2.5.

The inspection is based on the safety management principle that if the

company is prepared to put people into situations that are inherently
hazardous in order to perform work it should be equally prepared to do all
that is practicable to eliminate any existing hazards. Permits to work only
deal with hazards generated by specific tasks and it is therefore necessary to
carry out a general safety “hot spot” audit of the plant. Note too that the
audit actually takes into consideration the Permit system itself.
2.6 PERMIT TO WORK CONSIDERATIONS

The permit system needs to deal with two basic types of hazard; those that
are pre-existing on the plant and those that are induced by the nature of the
work that is to be carried out. In addition Figure 2.6 indicates 14 separate
issues associated with the issue of permits on a major Turnaround.
Underlying all of these is the sheer impact on the Permit issuers, especially
on day one of the Turnaround when many more Permits are required than is
normal.
Remember, we are not seeking here to design a permit system for normal
operations. That has already been done. What we are doing is to test the
existing system to find out if it is adequate for a Turnaround, because if we
do not, and it is not, then we are guilty of breaking the first rule of permit
systems; that they should be based on risk assessment. The permit system
obliges us to risk assess the job to be done; the requirements of Turnaround
management oblige us to risk assess the permit system itself to ensure that it
is adequate.
To ensure an effective approach we need to apply some rules to the

Turnaround permit system (See Figure 2.7) to ensure that it is as effective as
we can make it and to reduce some of the load on the permit issuers on the
day.

There is one issue worthy of more explanation; the phrase “Block out”.
Permits basically contain of two types of information 1) critical safety

information (hazards isolations and precautions) and 2) administrative
information (plant and task details). During normal production the permit
would be written on the day the task was to be performed because the issuer
must inspect the work site immediately prior to signing the permit.

During a Turnaround, when hundreds of permits may be required, writing a

large number on the day could lead to massive delays. To overcome this, the
permit for each job is “blocked out” (all of the information filled in) before
the Turnaround starts and all that is required on the day is the workplace
inspection and signature, unless anything has changed in the period of time
since the permit was written, in which case a new permit would be required.
2.7 SAFETY AWARENESS AND BRIEFINGS
Before the Turnaround starts, the level of safety awareness among the
people who will perform the work is largely unknown to the Turnaround
manager. It cannot be taken for granted or assumed that the level is
adequate, therefore everyone involved in the Turnaround needs to be briefed
on the general site safety rules and the specific safety requirements of the
event.
The briefing should ideally be done immediately before the start of the
Turnaround. Some companies actually use the morning of the first day of the
Turnaround to perform the briefings, while some large contractors carry out
their own briefings prior to bringing their work crews on site.
Whichever way it is done, specific people should be appointed to carry out

the briefings: they should not be left to chance. Figure 2.8 details the main
types of issue that would be covered in a basic briefing. In some companies
the briefing is not only on safety but includes any combination of the
elements shown on Page 151 of the Textbook. The idea behind this is that

the more aware people are of what is going on around them, the safer they
will be.
2.8 ADITING SAFETY ON TURNAROUNDS

Having created the Turnaround Safety System and briefed all of the
personnel involved in the Turnaround, the final requirement is to audit
performance on the day. This is achieved by using two types of inspection
The General Inspection

This is carried out daily by key personnel and makes a “horizontal” scan of
the total plant (or a significant portion of it), looking for unsafe acts, unsafe
conditions and the standard of housekeeping.
The spot check

Sometimes referred to as the “Job Freeze”, this inspection is carried out on a
random basis, again by key personnel and involves the audit of a single job
(usually a large, complex, technically difficult or hazardous job). The audit
is termed “vertical” because it drills down into the detail of the job by
monitoring the systems, measuring the supervisor’s control over the job and
the awareness and compliance of the men performing the work.
Figure 2.9 shows this in graphic form and page 135 of the Textbook
provides a detailed procedure for both types of inspection.

2.9 CONCLUSION
Providing a safe system of work for a Turnaround requires detailed and

accurate risk assessment. It requires also written procedures that people can
follow. Further, it requires the ability to regularly audit the system for
adequacy and people for compliance. But above all, it requires an attitude of
mind that refuses to compromise on safety. In most if not all companies,
even if you brought the Turnaround in on time, under budget and with a fault
free start-up, all of this would be negated if you had one serious accident or
a fatality. The Turnaround would be regarded, and rightly so, as a failure.
To see how one company improved its safety performance (and profitability)
by using a Turnaround Safety Plan, go to:
http://www.insulation.org/articles/article.cfm?id=IO010302

Section 6 –Part 3 – QUALITY ISSUES – Shutdown & Turnaround
Contents
3.1 Introduction
3.2 The elements of quality
3.3 Quality Assurance
3.3.1 Quality assurance for Turnarounds
3.3.2 Typical Turnaround quality assurance issues
3.4 Quality control
3.4.1 Quality control for Turnarounds
3.4.2 Typical Turnaround quality control issues
3.5 Integrated SHEQ Management system

3.5.1 ISO 9000
3.5.2 ISO 14001: 2004- Environmental management system
3.5.3 OHSAS 18001 - Occupational health & safety management
3.5.4 Legislation/ Regulation
3.5.5 Management audits
3.6 Conclusion

3.1 INTRODUCTION
A with safety, most companies have their own approaches to quality. This
short section will deal with quality only as it pertains to the effective
planning and execution of Turnarounds. Also, the elements of quality will be
defined in a specific way to differentiate them and make them more
approachable.
A lot has been written over the last thirty years about Quality. It has been
analysed and presented from many different viewpoints. Take these three
ideas of quality from three different perspectives
a) Behaviour - Quality means “conformance” to requirements
This implies that the people providing the “inputs” to a system or process
need first to know what is required of them via roles and responsibilities,
standards and procedures etc. imposed by someone – normally management,
and then act in such a way as to conform to them.
b) Products - Quality means “fitness for purpose”
This means that the product (or “output” of our system), should be capable
of performing to the specification set for it. E.g. if a pump is rated to work
continuously for 15000 hours at a certain flow and it does so then it can be
considered to be a quality product. It is no great stretch to translate this into
“conformance to requirements.”

c) Psychology - Quality is an “attitude of mind” that drives us always to

do our best
This is a more subtle but also much more powerful definition and describes
the real basis of a true quality approach. For example, in a) above, we would
conform because we were “required” to by some external influence (the
management?), whereas in this example we would conform to requirements
because of an internal drive – to meet the values (requirements?) we set for
ourselves. This attitude has been referred to as “Quality People”
Many companies have found to their cost that having a quality system and
procedures without the buy-in of their employees can generate a futile and
costly exercise in bureaucracy.
Regarding the three examples above, at first glance they may seem pretty
diverse but they are, in fact, inextricably linked.
For example, if our Turnaround is to be “fit for purpose” (by achieving its
QQTMS objectives) then those people who plan and execute the event need
to understand the Turnaround requirements and conform to them, and the
people most likely to conform effectively are those who have the internal
drive to do so.
3.2 THE ELEMENTS OF QUALITY

For the purposes of this module we will define two elements of quality that
are necessary to achieve success on a Turnaround. If we look at the most
basic level of a work process, we get

INPUTS > WORK PROCESS > OUTPUTS
And if we remember the GIGO principle (garbage in – garbage out) that

states that no matter how good your work process is, if your inputs are
substandard then your outputs will be substandard. This also exposes two
fundamentals of quality
1 We must have some way of guaranteeing our inputs are

adequate
2 We must have some way of guaranteeing that our outputs
adequate.
This is the essence of this module. We will deal with the two elements:

QUALITY ASSURANCE – Action taken before the event to eliminate

faults, and
QUALITY CONTROL – Actions performed after the event to expose and

rectify faults
The systemic connection between Quality Assurance (QA) and Quality

control (QC) is that the measures and techniques to be used for QC are
determined by QA requirements and the learning form the actual QC
performance is fed back to the QA requirements to improve them
continuously.
For example, if QA requires a Class 1 weld but sets the inspection

requirement at “dye-penetrant testing”, QC would find it impossible to meet
the requirement because a Class 1 weld must be free of porosity and dye-
penetrant testing cannot determine this, therefore QC would feed back to
QA the information that the weld inspection needs to be “Radiography”, so
that in future all Class 1 welds would be radiographed.
Both QA and QC are required on Turnarounds because of the hazardous

nature of the production processes that need to be accounted for when
looking at the reliability of the plant (high pressure, high temperature etc.)
We will now look at QA and QC in more detail.

3.3 QUALITY ASSURANCE
Quality Assurance is where the majority of value lies. The effort expended
before the event to eliminate faults will be repaid many times over during
the event and, as part of the pay-back, will render QC simpler and easier to
perform.
3.3.1 Quality Assurance on Turnarounds
To apply them to Turnarounds (See Figure 3.2) we need only fill in the
requirements for the event and then check each of them to “assure”
ourselves that they are “fit for purpose” because their fitness will determine
the output of the Turnaround process (GIGO rule applies). Figure 3.2 shows
only a sample of the many issues that need to be covered by the QA system
to ensure quality.

3.3.2 Typical Turnaround Quality assurance issues
Figure 3.3 shows a sample of the many activities required during the
planning and preparation of a Turnaround to assure that all QA aspects have
been organised to eliminate faults from inputs.
Material Traceability
Some Material (using it in 1ts general sense to include raw materials,
proprietary items and consumables), because of its critical nature, may

require evidence of source in the form of certification or guarantee. This

must be obtained before the material is installed in the plant.
Calibration Traceability
If tools and instruments that require to be calibrated are used then we must
a) ensure that they are correctly calibrated, b) ensure that the equipment used
to calibrate them has been calibrated and c) ensure that such calibration is
traceable back to a national standard. Otherwise we cannot guarantee that
the setting for the tool or instrument is correct.
Case in point – the author once audited a company who were using pressure
gauges on their high pressure testing of vessels and pipe-work on a
Turnaround. They were asked how they guaranteed that the gauges were
correct. They stated that they “tested” their gauges by connecting them to a
“pressure tester” in groups of three. If all three gauges read the same
pressure then all three were used. If one read a different pressure from the
other two then it was discarded and the other two were used. It does not
take much analysis to discover the flaw in this logic!
Remember, if a calibrated tool, let’s say a torque wrench, is incorrectly

calibrated then every fastening tightened by that wrench will be wrong.
Accuracy of documents
On large aging plants that have undergone a number of “reorganisations”,
undergone many “modifications with out the drawings and documents being
amended, and updated their CMMS facilities a number of times and “lost”
data in the process. This issue can assume nightmarish proportions. The

drawings and documents are the specifications of our plant. If they are
wrong they are the garbage in GIGO. They must be carefully checked to
ensure that either they are up to date or there is some responsible person on
the plant who will vouch for their accuracy – in writing.
Weld Quality
Welders are almost unique among tradesmen in that they have to constantly
“prove” their competence by passing welder qualification tests on a regular
basis and, in some cases, before every project. We must ensure that the
qualification teats are adequate. It is also important that the weld procedures,
which describe how the weld is to be done, are adequate and that the
inspection techniques set to check the weld against the standard is the
correct type.
Pressure test control

Pressure testing, especially at high pressures is a potentially hazardous
process. The potential for hazard increases greatly if we are using pneumatic
testing. This is because of the simple fact that unlike water (used for
hydraulic testing) which is not compressible, and does not store energy, gas
is compressible and does store energy.
This means that if the item being tested fails the pressure test and breaches
(causing damage to the item); the outcome for hydraulic testing would be a
leak whereas the outcome for pneumatic testing would likely be an
explosion. This is why pneumatic pressure testing is so rarely used.

Due to the hazardous nature of pressure testing we must ensure that the
equipment we use is serviceable and that the standards and procedures we
use are written and approved.
Task control
The actual tasks that we carry out on the Turnaround must also be subject to
QA because the information contained in them is the primary input into the
Turnaround process. We must ensure that the job specifications are validated
before planning starts, the work packages are validated on completion of
planning, and the schedule (which will be used to control the progress of the
event) is validated before we commence work.
Design verification
Where projects to improve plant performance are included in the
Turnaround worklist, they normally constitute a modification to the plant.
We must therefore ensure that they are e approved under a safe modification
system and are technically feasible (at least the installation phase.
Quality plans
The difference between a normal job method and a quality plan is that the
latter is written for technically critical jobs and incorporates “hold points”
where inspection must be carried out before the job is allowed to proceed to
the next activity. At each hold point the level of inspection needs to be
specified (client inspection or independent inspector etc).

This list is not exhaustive and many industries have their own unique QA
requirements. Each should be treated with the same care and attention to
“assure” the inputs into the Turnaround process.
3.4 QUALITY CONTROL

Again, earlier modules have already dealt with the principle of QC. Figure
3.4 is very similar to the QC figure in M00.

3.4.1 The need for Quality Control
The overriding issue regarding the need for quality control on Turnarounds
is that there is so much of it going on at the same time (pressure testing,
radiography, MPI. Visual inspections, physical measurement, leak testing,
etc). It all has to be organised and executed in the same planned manner as
the scheduled work.
3.4.2 Typical Turnaround Quality Control issues
Figure 3.5 shows some of the QC actions that need to be performed during
the event to expose and rectify any faults that have occurred during the
execution of the work, i.e.

Pressure testing
To ensure the structural integrity of vessels and pipe-work
Weld inspection
A number of different techniques to ensure that the any faults in a weld are
within and acceptable pre-determined standard
Alignment checks
On rotating machines, to ensure that, for example, the rotors have been
installed correctly within predetermined limits. The traditional method of
“shims and feeler gauges” has, in many cases been replaced by Laser
Alignment.
Joint Inspection
Especially in the process industry where there may be thousands of joints
broken and re-made during a shutdown. Some of these with be critical e.g.
on pipe-lines carrying flammable or toxic materials, and require extra layers
of inspection to ensure they do not leak.
Configuration check
To ensure that an item has been installed the correct way round. It may seem
hardly credible that an item could be installed the wrong way round but there
have been occasions, known to the author when pumps have been installed
that were pumping against the flow of product!

Hold point inspection

This needs to be organised on the day, so that it is carried out without delay
to the job, and at the correct level.
End of shift calibration checks

This is to ensure that the calibrated tool or instrument used during the shift
has the same readings at the end of the shift as it did at the beginning.
Hand-over Quality checks

This refers to any checks that production personnel need to carry out on
work done before they accept the handover of equipment from maintenance.
Self assessment exercise
In the calibration example above, what would you do if the end of shift
check on the torque wrench that had tightened up over 60 fastenings showed
that it was out of calibration?

3.5 Integrated SHEQ Management systems
3.5.1 ISO 9000: 2000 Standards

The ISO 9000: 2000 Standards consist of four primary standards:
 ISO 9000: Quality Management Systems – Fundamentals & Vocabulary
 ISO 9001: Quality Management Systems – Requirements
 ISO 9004: Quality Management Systems – Guidance for Performance
Improvement
 ISO 19011: Guidelines on Quality and Environmental Auditing
ISO 9000 provides definitions of key terms. ISO 9001 provides a set of minimum
requirements for a quality management system, and is intended to demonstrate
compliance with recognised quality principles to customers and third party
certification.
ISO 9000 defines standards as documented agreements containing technical

specifications or other precise criteria to be used consistently as rules, guidelines or
definitions of characteristics, to ensure that materials , products, processes, and services
are fit for their purpose. The standards were created to meet five objectives:
1. Achieve, maintain, and seek to continuously improve products quality (including
services) in relationship to requirements.
2. Improve the quality of operations to continually meet customers and
stakeholders stated and implied needs.
3. Provide confidence to internal management and other employees that quality
requirements are being fulfilled.
4. Provide confidence to customers and other stakeholders that quality
requirements are being achieved in the delivered product.
5. Provide confidence that quality system requirement are fulfilled.

ISO 9000-2000 Standards Structure

The standards structure has 21 elements broken into four major sections:
 Management responsibility.
 Resource Management.
 Product Realization.
 Measurement, Analysis and Improvement.
ISO 9000: 2000 Requirements

1.Scope.
2.Normative references.
3.Terms and definitions.
4.Quality Management Systems.
5. Management Responsibility 6. Resource Management

5.1 Management Commitment 6.1 Provision of resources
5.2 Customer focus 6.2 Human Resources
5.3 Quality policy 6.3 Facilities
5.4 Planning 6.4 Work environment
5.5 Administration
5.6 Management Review
7. Production Realization 8.Measure,analysis & improvement plan

7.1 Planning of realization processes 8.1 Planning
7.2 Customer – related processes 8.2 Measurement & monitoring
7.3 Design and/ or development 8.3 Control of non-conformity
7.4 Purchasing 8.4 Analysis of data
7.5 Production and service operations 8.5 Improvement
7.6 Control of measuring and monitoring
devices

3.5.2. ISO 14001: 2004 Environmental management systems
National Forward
This British standard is the official English language version of EN ISO 14001: 2004.It is
identical with ISO 14001:2004. It supersedes BS EN ISO 14001: 1996 which is now
obsolescent.
Requirements with guidance for use:
1. Scope
2. Normative reference
3. Terms and definitions
4. Environmental management system requirements
 4.1 General requirements
 4.2 Environmental policy
 4.3 Planning
 4.4 Implementation and operation
 4.5 Checking
 4.6 Management review
For this exercise we shall look at 4.3.1. Environmental aspects.

This Standard requires that an organization shall establish and maintain procedures to
identify the environmental aspects of its activities, products or services that it can control
and those over which it can be expected to have an influence, in order to determine those
which have or can have significant impacts on the environment. This planning also

includes new developments, activities, products or services. Influence refers really to

suppliers and customers.
A: Site History
1. Previous known site activities (and dates/periods)?
2. Are you aware of any site EMS practised by the previous owners?
3. Are there any records of previous environmentally – specific complaints?
4. Are there any recorded incidents (spills, etc) whether reported or not?
5. Has the site ever been used for landfill? What was deposited?
6. Where was this disposed of?
7. Are there any records of materials used on-site by previous operators such as:
- Heavy metals
- Asbestos
- PCB
- Heavy oils?
B: Organization –Wide Management issues
Regulatory Bodies, Legislation
1. What are the regulatory regimes the site is subject to? (UK- is the site subject to Local
Authority Air Pollution Control (LAPC)
2. Have any conditions been set for these authorizations?
3. Are the conditions monitored?
4. What planning consents apply to the site? Who keeps these?
5. Are there any restrictions applying to
- Processes that can be operated?
- Visual Aspects? Waste Management? Site drainage? Air emissions?

- Hours of work? Access? Noise? Lighting? Dust?, Any other?

6. Have you had any spills incidents, whether notified, recorded or otherwise?
7. Have there been other instances of non-compliances? And any prosecutions/violations
C: Departmental – Specific Management Issues
1. Are there any Standards or code which you comply with?

2. Are there any industry- sector codes which you should comply with?
3. Have you made any planning applications which required environmental impact
assessments?
4. Calibration
5. Investment
6. Financial Control
7. Insurance
8. Buildings
9. Site Landscape
10. Purchasing
11. Waste Management
12. Energy Usage
13. Air
14. Water
15. Noise/Vibration/Smells
16. Research
17. Design
18. Engineering design
19. Packaging
20. Storage& Handling
21. Transport
22. Paper/Copying
23. Furniture

24. Cleaning
D: Emissions ( gases, particulate, liquid, solids)
1. General
2. Plant
3. Dust , Odour
4. Water
5. Waste Management
6. Storage etc
7. Tanks
8. Drums and other stocks of liquids
9. Use of specialists chemicals
10. Geology- underlying Water and contamination
E: Site contamination surveys and remediation
1. Contamination
- What contamination was found?
- Where was this?
- How much?
2. Remediation
- By whom?
- Where on-site?

3.5.3. OHSAS 18001 - Occupational Health and Safety Management
The Occupational Health and Safety Assessment Series ( OHSAS) guideline provides
generic advice on the application of OHSAS 18001.
OHSAS 18001
1. Scope
This Occupational Health and Safety Assessment Series ( OHSAS ) specification gives
requirement for an occupational health and safety ( OH&S ) management system, to
enable an organization to control its own OH&S risks and improve its performance. It
does not state specific OH&S performance criteria, nor does it give detailed
specifications for the design of a management system.
This OHSAS specification is applicable to any organization that wishes to:
a) Establish an OH&S management system to eliminate or minimise risk to employees
and other interested parties who may be exposed to OH&S risks associated with its
activities.
b) Implement, maintain and continually improve an OH&S management system.
c) Assure itself of its conformance with its stated OH&S policy.
d) Demonstrate such conformance to others.
e) Seek certificate/registration of its OH&S management system by an external
organisation; or
f) Make a self-determination and declaration of conformance with this OHSAS
specification.
This OHSAS specification is intended to address occupational healt and safety
rather than product and services safety.

OHSAS 18001:
2. Reference publication.
OHSAS 18001- 1999 Occupational health and safety management system
BS 8800: 1996, Guide to OHSAS
ISO 19011: 2002, Guidelines for quality and/or environmental management systems
auditing.
3. Terms and definitions
OHSAS 18001 Terms and Definitions
3.1 Accident
3.2 Audit
3.3 Continual improvement
3.4 Hazard
3.5 Hazard identification
3.6 Incident
3.7 Interested parties
3.8 Non-conformance
3.9 Objectives
3.10 Occupational health and safety
3.11 OH&S management system
3.12 Organisation
3.13 Performance
3.14 Risk
3.15 Risk assessment
3.16 Safety
3.17 Tolerable risk

4. OH&S management system elements
1. Continual Improvement
2. OH&S policy
3. Planning
4. Implementation & operation
5. Checking and corrective action
6. Management review

4.1 General requirements
b) Intent
c) Typical Input
d) Typical output
4.2 OH&S POLICY
Management Review
Audit POLICY feedback from
Planning

OHSAS 18001 REQUIREMENT
There shall be an occupational health and safety policy authorized by the organization’s
top management, that clearly states overall health and safety objectives and a
commitment to improving health and safety performance. The policy shall:
a) Be appropriate to the nature and scale of the organization’s OH7S risks;

b) Include a commitment to continual improvement;
c) Include a commitment to at least comply with current applicable OH&S
legislation and with other requirements to which the organisation subscribes;
d) Be documented, implemented and maintained;
e) Be communicated to all employees with the intent that employees are made aware
of their individual OH&S obligations;
f) Be available to interested parties; and
g) G be reviewed periodically to ensure that it remains relevant and appropriate to
the organization.

3.5.4 Legislation/ Regulation
OHSAS 18001 from ANSI ( American National Standards Institute) is an auditable

management system.
1. Control of Substances Hazardous to Health Regulations 1999 (COSHH)
Seven Steps to COSHH
 Work out what hazardous substances are used in your work place and find
out the risks from using these substances to people’s health
 Decide what precautions are needed before starting work with hazardous
substances.
 Prevent people being exposed to hazardous substances, but where this not
reasonably practicable control the exposure.
 Make sure control measures are used and maintained properly.
 If required, monitor exposure of employees to hazardous substances.
 Carry out health surveillance where your assessment has shown that this
indeed is necessary or COSHH makes specific requirements.
 Make sure employees are properly informed, trained and supervised.
2. Chemicals( Hazards Information and Packaging for Supply ( CHIP)

Regulation 2002. European Commission Directive 2001/59/ec of 6 th August
2001
3. Asbestos “ Control of Asbestos at Work” Regulation 2002
4. Lead “ Control of Lead at Work” Regulation 2002
5. Radioactive substances per se Radioactive Substances Act 1993
6. Explosives Dangerous Substances and Explosive Atmospheres Regulation
2002.
Registration, Evaluation, Authorisation and Restriction of Chemicals ( REACH)

EC Regulation 1907/2006, 18 December 2006
ISO 14001 – Regulation/Legislation Environmental System
Regulatory Structure
Controls Requirements
National government
Department
Accreditation Body Operates

in accordance
with ISO/EC
Guide 66 and
IAF Guidance
Performs Certification Body Operates to its

audits procedures agreed
with the
accreditation body
Performs Individual Author Operates to

audits certification body
procedures

This European Standard was approved by CEN on 13 th November 2004 (ISO

14001:2004)
3.5.5 Management Audits
The aim is a continual process of review and assessment, to verify that the system is
working as it’s supposed to, find out where it can improve and to correct or prevent
problems identified. It is considered healthier for internal auditors to audit outside their
usual management line, so as to bring a degree of independence to their judgements.
Under the 1994 standard, the process could be adequately addressed by performing
“compliance auditing”:
 Tell me what you do ( describe the business process)
 Show me where it says that ( reference to the procedure manual
 Prove that that is what happened ( show evidence in documented records)
The 2000 standard uses the process approach. While auditors perform similar functions,
they are expected to go beyond mere auditing for route “compliance” by focusing on risk,
status and importance. This means they are expected to make more judgements on what
is effective, rather than merely adhering to what is formally prescribed. The difference
from the previous standard can be explained thus:
 Under the 1994 version, the question was broadly “ Are you what the manual
says you should be doing?”, whereas under the 2000 version, the question is
more “will this process help you achieve your stated objectives ? Is it a good
process or is there a better way?”
 The ISO 19011 standard for auditing applies to ISO 9001 besides other
management systems like EMS ( ISO 14001) etc.
3.6 CONCLUSION
Turnarounds require many QA and QC activities to be carried out to ensure
that first, as many as possible faults are eliminated prior to the event and

then such faults as do occur are exposed and rectified. Only the twin
application of QA and QC is adequate to meet Turnaround requirements
Section 6- Part 4 – DESIGNING THE ORGANISATION - Shutdown
Contents
4.1 Introduction -Factors affecting organisation design

4.2 Organisational combinations
4.3 Two different organisation
4.4 The preparation team
4.5 The execution organisation
4.6 The question of competence
4.7 Single point responsibility
4.8 Turnaround team building issues

4.1 INTRODUCTION
Of all the elements involved in a Turnaround, the most complex is people.
The purpose of this section is to look at the critical activities required to
ensure, as far as is humanly possible, that the teams put together to plan and
execute the Turnaround will be effective.
The first consideration is that the Turnaround organisations are Ad Hoc. This
means that they are designed for one purpose; to plan and then to executes
the Turnaround, after which the people who comprise the Organisation
return to their day jobs and it may be a number of years, if ever, that they are
called upon to work on another Turnaround.
The second is that, because most companies do not carry sufficient full time
employees with the necessary skills to tackle a Turnaround there is the
almost universal need to engage contract companies to perform some or all
of the required work (the subject of contractors is more fully explored in
Section 6 of this module).
This generates a number of important issues that need to be managed, among

them:

1 The task of forming people from disparate organisation into an

effective working team is more difficult than normal team building
efforts
2 The task of balancing the disparate objectives of the different
organisation can be difficult. In the worst cases failure to do this
has resulted in litigation.
3 Gaining commitment from men on the tools for whom the
Turnaround will represent only a few weeks work.
The third consideration is that the Organisation will almost certainly

comprise of the people who are available at the time. This goes against the
first principle of effective team building which states that selection of the
correct people is crucial to the success of the team. The Turnaround manager
very rarely has this luxury.
Given the above constraints (and they are only the main ones) it is vital that
the Turnaround Manager designs the best possible organisation. This is
achieved by the following process.
1 Interrogate the workscope to ascertain the nature of the upcoming

Turnaround.
2 Design an “empty box” organogram (no names at this stage – only
numbers and roles). This defines every one of the functions that
are required to effectively perform that particular Turnaround.
3 Assess the suitability and competence of the available people (both
client and contractor)
4 Fill the names in the boxes in the “empty box” organogram

5 Risk assess the organisation to reveal the strengths and weaknesses

and manage the risk by either recruiting other people to strengthen
the organisation or reassigning existing people to cover the
weaknesses.
Two results are generated by this approach. The first is that we have the
strongest organisation possible given the people available and the second is
that, even if there are shortcomings in the organisation, we know what they
are and can do something to compensate for them. This process will be
discussed in greater detail in the remainder of this section.
Before getting into the mechanics of organisation design we need to

recognize the fact that in any organisation the design is going to be affected
by the “cultural frame” that operates in the company. This is based on a
number of elements that will influence the design (See Figure 4.1). The
main elements are:
Fig 4.1

Previous Experience
Do we learn from our previous experience or not? How well have
turnaround organisations performed in the past. If they were not very
successful but we intend to use the same formula, what are our chances of
success this time?
Corporate insanity has been defined as “doing the same thing you have
always done but expecting different results!”
Desire for control

This desire often affects a company’s ability to deal with contractors. They
want the contractor to do exactly what they are told but do not want to give
them any measure of autonomy to accomplish it. The company needs to
control its destiny and does not trust the contractor to act on its best behalf.
When a representative of the US Company, Milliken, was asked at a seminar

what was the most difficult thing about forming their very successful
alliance with their contract companies he replied “Learning to trust them”
Present Capability
People do not stay in the same jobs for ever. Some are promoted, some leave
the company and some are made redundant. If the gap between two
Turnarounds is three years or more then it is possible, in the extreme case,
that none of the key people involved in the previous Turnaround are
available for the next one
This is what makes the Turnaround organisation truly Ad Hoc. The need to
create a brand new team each time we do the Turnaround.
Event characteristics
The type of Turnaround will determine the type of people we need to form
the Organisation. If it is a maintenance and refurbishment task then it will be
heavily populated by maintenance personnel. If, on the other hand there are
a large number of improvement projects then a higher level of project and
technical engineering may be required
Contractor Capability

In an age of the “lean and mean” company and in the face of falling skill
levels as older tradesmen retire and there are fewer younger men to take
their place, there is more and more dependency on contract companies. The
issue for the clients is that, in many cases, not only do they not know the
capability of the contractors before the event but the only way they will
discover it is by putting them to work.
The whole idea behind client’s forming partnerships and alliances with
contractors is to try to get to know them and guarantee their capability over a
long period of time.
Environmental Influences
As with all systems, the environment will influence the Turnaround
organisation. The last paragraph dealt with the necessity to use contractors –
but what if even contractors are not available? For instance, if you are a
medium sized company planning a 2 week Turnaround and there is a much
larger company in the area who will be shutting down at the same time as
you but for 6 weeks – who is going to attract the men?
Larger Frames
Within the company there may be business strategies being worked out that
we are unaware of that will influence the design of our Turnaround
organisation. Many companies have reduced the number of contractors they
deal with to an “approved contractor” list – usually large contract
companies. This may be financially rewarding for the company as a whole
but poses a problem for the Turnaround manager who is denied the use of

small local contractors who know his plant well and have always given him
good service.
An even larger frame is the long term policy of the company, that may
dictate that all turnarounds (and in some cases, all maintenance) shall be
outsourced because it is economically advantageous to do so and will also
simplify the company’s accounting systems – no more need to deal with
pensions, sickness or the welfare of staff.
In this case, some companies retain the role of Turnaround manager but his
role is drastically transformed from “work manager” to “contracts manager”.
4.2 ORGANISATIONAL DESIGN COMBINATIONS

Given the rich tapestry of manpower that is available (or not) the
Turnaround Manager must weave an organisation that suits the need. Figure
4.2 defines the three critical questions that need to be answered in order to
allow this to happen:

Fig 4.2
Who manages the event!

In most cases the company will select one of their own managers, engineers
or supervisors (for small events) to manage the event. Where this is not
possible or desirable there are two other sources. The first is a consultant
manager hired form a company that specialises in this type of business. The
second is to appoint a manger form one of the contractor companies, usually
the main contractor, to manage the Turnaround.
This is a crucial appointment. The turnaround will stand or fall on the

Turnaround Managers ability.

Who will perform the work?

There are a number of combinations as shown in Figure 4.2. The exact
combination will depend upon all of the considerations dealt with in Figure
4.1.
What will be the relationship between them?

Once again, the Turnaround Manager comes to the fore. Because the
manager leads the team, everyone else will take their lead form the manager.
The relationships that are formed will depend crucially on the manager’s
ability to manage and understand the dynamics of the as hoc team. Will it be
an authorative approach? Dictatorial? Flexible? Whatever it is it will
generate the performance of the team.
Fig 4.3

Figure 4.3 shows an actual example of a company’s attempt to decide upon

what type of organisation would suit their particular culture. The different
organisational combinations were listed vertically and the cultural issues
listed horizontally to form a matrix. A panel of managers then held a session
where they debated and agreed upon an aggregate score for each of the
elements in the matrix.
Two combinations were immediately identified as “not feasible” because a)

the company did not have enough people to perform the Turnaround
themselves an b) there we not enough time before the event to cultivate an
alliance relationship. As the cultural issues were all posed in the form that
the higher the score the less desirable it was for the company, it followed
that the lowest score would be the most desirable combination. The option
that was favoured was to put together a team from client, contractor and
vendor personnel – selecting always the individuals most capable of
performing the work.
The resulting organisation successfully carried out the Turnaround.
4.3 TWO DIFFERENT ORGANISATIONS

So far we have discussed the “Turnaround Organization” but, in reality,
there are two organisations or “teams” associated with the event (See Figure
4.4). There is first the relatively small core team that plans and prepares the
event and, second, there is the relatively large team (which often
incorporates the core team) that executes the event.

Fig 4.4

The “Preparation” team that plans and prepares the event is responsible for
acquiring data from many sources and processing that data to form plans and
schedules that will enable others to execute the work during the event.
4.4 THE PREPARATION TEAM

In order to work effectively, the preparation team must know what data they
require and where to get it from. Not only this but those people who have the
data required by the team need to be made aware of their responsibilities for
providing the data. The amount of planning that goes into this phase of the
organisation will ultimately determine the success of the Turnaround.
Fig 4.5

As an example form the real world, Figure 4.5 shows a communication

pathway diagram that was formulated by an offshore oil company. They first
split the organisation into three parts:
The core team.

This was a small full time team consisting of the Shutdown Manager,
an onshore planner who would be responsible for creating the
schedule for the event, and a cost engineer who would produce and
estimate for the event as well as a reporting system for tracking
expenditure.
The offshore support team

This was a larger part time team who would spend a number of hours
each week processing and supplying information regarding all aspects
of the workscope to the onshore planner.

The onshore support team

This was made up of the department heads of the various departments
within the company and selected engineers and other staff. Their role
was to provide the shutdown managers with data concerning their
requirements for the shutdown.
The diagram shows the large number of information pathways and the type
of communications that were expected along each one, whether it be
inputting data, provision of packaged work etc.
The great advantage of this exercise was that it specified precise

requirements and everyone in the organisation know exactly what was
required of them.
For practical purposes the diagram was then refined and reduced to the main
communication elements and key players. This is shown in Figure 4.6.
Each of the roles is defined in outline and a set of requirements is defined to
ensure that everyone understands their roles and responsibilities during the
preparation phase.

Fig 4.6
Without this level of understanding, people get confused about what they are
supposed to be doing, many items of data are overlooked or are never
generated in the first place and the planning of the event suffers as a result.
An overwhelming majority of the shortcomings experienced during the

execution of the Turnaround and instances of resultant fire-fighting can be
traced back to faulty planning. The faulty planning can usually be traced
back to someone not doing something that they should have during the
preparation phase and this, in turn, can normally be traced back to a lack of
understanding brought about by ineffective briefing on roles and
responsibilities

(A good example of a causal chain?)
4.4 THE EXECUTION ORGANISATION

The organisation that will execute the Turnaround needs to be designed with
the same care and attention as the preparation organisation. For every
function in the organogram there must be a set of roles and responsibilities
so that everyone knows exactly what they have to do.
This may seem a very obvious statement to make but the plain fact is that a
large majority of companies the author has worked with have not been in
possession of roles and responsibilities for Turnarounds
Fig 4.7

Figure 4.7 shows the “chain of command” for a Turnaround organisation. It

shows the different organisational levels involved, the responsibilities for
each level and (most importantly) the upward and downward links between
the levels. The structure is hierarchical and, in order to work there needs to
be four capabilities at each level:
 Delegation of work to lower levels

 Monitoring of work at that level
 Problem solving at that level
 Reporting to the level above

Irrespective of how large the organization is or how many levels there are in
the hierarchy, two requirements are immutable, first, everyone needs to
know what they are supposed to be doing and second the links between the
levels must be known and used to allow the flow of information between
levels to be effective.
Figure 4.7 shows the basic responsibilities in bullet form. The following
paragraph is an actual example of a more extended form of the Turnaround
manager’s role.
Role of the Shutdown Manager (Example)
The Shutdown Manager has overall responsibility for the planning,

organisation and execution of the shutdown activities. He will undertake
the following activities:
1. Agree the timing and nominal duration of the shutdowns so as to

minimise the impact on profitability of the platforms.
2. Agree and communicate the shutdown objectives to all parties
involved in the preparation and execution of the shutdown.
3. Develop a HSE plan for the shutdown to minimise the risk to
personnel and impact on the environment.
4. Critically review and agree the scope of the shutdown activities to
ensure that the shutdown objectives are achieved
5. Arrange for a plan to be prepared to ensure the shutdown activities are
completed in an optimum manner.

6. Develop an organisation for the shutdown preparation and execution

phases which clarifies the roles and responsibilities of the various
groups and individuals involved.
7. Develop a quality plan for the shutdown which defines the level of
quality assurance and control required to achieve shutdown objectives
8. Determine and arrange for all necessary resources to be available to
complete the shutdown workscope
9. Determine and arrange for the necessary logistics to be available to
allow the shutdown workscope to be completed.
10.Ensure that a procedure and plan is developed for shutting down and
restarting production so as to minimise production losses.
11.Determine the estimated cost of the shutdown and establish
appropriate processes for collection of cost data to allow effective
reporting and control of costs.
12.Ensure that any modifications to be included in the shutdown are fully
engineered, approved and resourced.
13.Ensure that suitable arrangements are in place with contractors and
vendors to enable them to support the completion of the shutdown
workscope.
14.Coordinate the efforts of all departments involved in the preparation
of the shutdown workscope including holding regular meetings and
expedite the completion of all outstanding actions.
15.Hold such meetings as are required to ensure that plant actions in
support of the shutdown preparation are progressed
16.Direct the shutdown activities and provide other support to Plant
Management in the execution of the shutdown.

17.Establish and issue reports on the progress of the shutdown

preparation, execution and close out.
We should never assume that people, even experienced people,

automatically know what they are supposed to be doing. We need to ensure
that all roles are specified and all responsibilities clearly defined.
Finally, Figure 4.8 shows a generic template that was used by a

petrochemical company as a guide to the basic elements required for an
execution organisation. The actual organogram would be built using the
generic template and modifying it to suit particular events. It indicates the
importance of cooperation between the Turnaround manager, the Plant
manager and the Technical manager and defines the area of responsibility
for each.
Fig 4.8

4.5 THE QUESTION OF COMPETENCE

Having created the organogram showing all of the functions required to
effectively perform the event, it as then necessary to choose the individuals
to put into each of the “empty boxes” to make it a live organisation.
Having defined the roles and responsibilities we must then ask the two part
question:
“Who is available to fill this role and are they competent to do so”
The answer to that question will depend on how well the company knows
the individual.
At one end of the spectrum there could be a supervisor who has worked for
the company for fifteen years, has worked on seven Turnarounds and has

always performed above average, and at the other end a contractor

supervisor who has never been on the site before has not worked on a
Turnaround before and whose competence record is unknown.The question
is, how do we find out how competent an individual is if we have no direct
knowledge of him or her?
Before we answer that question let us first define competence. Figure 4.9
represents the Lenahan competence model and shows the five requirements
to promote competence. Here we are concerned with the one of the human
factors. Important as attitude may be, we are concerned here with aptitude –
the physical and mental ability to perform a specific task.
Fig 4.9

If we are selecting from among our own staff then we need first of all to
differentiate between the skills that we require and the skills that the
individual possesses. Figure 4.10 shows the principle of gap analysis with
respect to competence. If we can first define the specific skills we need for a
particular role in the Turnaround organization and then overlay on that the
actual skills that an individual possess than we can determine if there is a
“skills gap” between what we need and what we have got.
Fig 4.10
In the question of competence there is also the question of “who does what”.
If you take the traditional definition of a job, say mechanical fitter you will
find that the “job” is made up of, and defined by, a number of individual
skills (See Figure 4.11).

Fig 4.11
The skills can be stacked in order of technical difficulty or specialisation

with the most mundane skill on the bottom of the stack and the most critical
at the top. If you do this with most traditional jobs you will find that skilled
tradesmen are carrying out many tasks that could be carried out by semi
skilled or unskilled people.
For example, the most common task on a shutdown in the processing

industry is the breaking and making of flanged joints. It is a straightforward
task for which there are clear procedures. The work does not require any
special “skill” and yet it takes up thousands of hours of valuable fitter’s time

because, traditionally, it is regarded as part of that “job”. Perhaps a

redefinition of work categories could go a long way to easing the problems
currently being caused by skill shortage.
Having broken the “job” into its component skills it is then possible to set up
a matrix with the skills recorded horizontally and the individuals performing
that job recorded vertically as in Figure 4.12. That shows the basket of skills
required for a turnaround planner in one particular company.
Fig 4.12
Once the matrix has been set up each individual can be rated either by peer
review, by the supervisors or managers they work for, or both. Once the

rating is completed we have a much more detailed and useful indication of

an individual’s competence than the crude judgement that so-and-so is either
a good of a bad planner. We not only know the individual’s overall
capability but the aspects of the job where he is strong, average or weak.
This allows a number of things. First it allows supervisors to use “horses for
courses” so that the most suitable individual is used for a specific task.
Second, it indicates how many of the individuals need what kind of training
to improve their performance. Third, it shows us which individuals are best
at what skills (giving us the opportunity to download the skills and
knowledge from them and pass it onto others) and lastly, it provides a
grading sheet on which we can record improvements at any skill for any
individual so that as they improve their score increases.
If the person who is charged with managing or supervising the work crews
has this information it will improve the chances of assuring competence on
the Turnaround.
Contract personnel
When it comes to using contract personnel the task is not so straightforward
but there are means whereby we can improve the chances of acquiring
competent personnel from contract companies.
The Turnaround Manager negotiates with Contract companies to procure
named individuals and/ or ensure the competence of contractor personnel by
any of the following means:

 Employ contractor personnel who have been employed by the

company in the past and have proved their competence.
 Apply for references to other companies who have employed
the contractor’s personnel.
 Require the contractor to provide evidence of training and
qualification of their personnel and a record of their experience.
 Require contractor personnel to undergo qualification tests if
they are to be engaged on critical work.
Like everything else in shutdown planning it is attention to detail that will

bring the best results.
4.6 SINGLE POINT RESPONSIBILITY

We have discussed the question of the hierarchical structure of the
Turnaround organisation and some of the means for securing competence at
all levels. There is one more principle that permeates excellent performance
on Shutdowns and glues all of the above together – single point
responsibility.
The idea behind this is that, on a Turnaround, someone should be

responsible for every single task at any given time during the execution of
that task so that it is covered “cradle to grave” (See Figure 4.13) This
ensures that the task is properly progressed at all times and at no time is left
untended, wasting time. This is especially important for tasks that are on or
near the critical path where wasted time results in overrun on duration and a
reduction in revenue due to loss of production.

Fig 4.13
Controlling a task will be the responsibility of different people at different

times during the life of the task (which may last for days or weeks). In a
way, it is like a relay race with a responsible person receiving the baton
(handover) from the person responsible for the preceding step, running his
part of the race (task) and handing the baton onto the person responsible for
the succeeding step. Figure 4.13 shows the four steps for ensuring this.
4.7 TURNAROUND TEAM BUILDING ISSUES

We now complete the loop by returning to the issue first discussed at the
beginning of this section, namely that a Turnaround organisation is Ad Hoc.

This throws up some particular issues that have to be resolved by the

Turnaround manager.
Figure 4.14 defines some of the issues that differentiates the Turnaround
Organisation from, say, a production team where the team is built up over a
number of years and the individuals in it are trained and developed to form a
competent team that uses familiar procedures to perform work that is by and
large the same one day as it is the next.
Fig 4.14
A Turnaround organisation, on the other hand is a temporary affair typically

made up from the people who are available at the time who may have skills
that are similar to those required but not the same. Those people may resist
new or different approaches to working and will be, in any case, of differing
(and sometimes unknown) competence levels. They are not always available
full time because they have their “day jobs” to do and, even if competence

deficiencies are known there may be little opportunity to send them for the
necessary training to enhance their skills.
The Turnaround manager, in many cases, has to work with the people he is
give and it is the test of his/ her competence to form them into a successful
organisation.
4.8 CONCLUSION
This section has discussed the importance of the teams of people who are
charged with planning and executing the Turnaround, the role that hierarchy
plays in providing the structure and critical links in the organisation and the
crucial requirements for competent people who have been briefed on their
roles and responsibilities. Bearing in mind the resulting complexity it is only
rational to assert that the Turnaround Organisation needs to be carefully
designed if it is to contribute to excellent performance.

Section 6- Part 5 – PLANNING AND SCHEDULING- Shutdown
Contents
5.1 Introduction
5.2 Second level planning
5.3 Effective workscope control
5.4 The planning process
5.5 The work pack
5.6 Scheduling
5.7 Pre- shutdown work
5.8 Shutdowns- Maintenance Types
5.9 Modern Shutdown Procedures
5.10 Definitions used in a Shutdown
5.11 Planning the Control of the event & Conclusions

5.1 INTRODUCTION
A Turnaround is a complex technical and logistical event. As such it requires
planning and scheduling of the highest order. Exactly because many of the
tasks in the event will be performed simultaneously (as opposed to day-to-
day maintenance when they are performed individually), and often in the
same area, we not only have to plan the individual jobs and integrate them
into a time based schedule, we have also to plan the interactions between
tasks.
In systems terms, the individual tasks are the elements of the Turnaround
and the interactions are the relationships between them. Both need to be
accurately planned if the event is to be successfully executed.
A Task centred event

A turnaround is a “task centred” event. That is to say, the task lies at the
centre of planning and generates all other Turnaround elements; costs,
resources, materials etc. Turnaround planning deals only in information and
conforms to the GIGO rule so that quality of the information gathered and
processed will determine the effectiveness of the plan – which will in turn
determine the success of the event (another causal chain!).
The purpose of this section will be to look at the process of planning, from
the collection and collation of basic data through the creation of work packs
for individual jobs, to the generation of a time based schedule for the
Turnaround.

However, before we start planning the work there is another form of

planning, planning of a higher order that needs to be performed.
5.2 PLANNING THE PLANNING

Given that a Turnaround is a complex event, we may sensibly ask the
question:
“Is the planning of a Turnaround a complex process?”
The answer to this question will determine how we approach the process of
planning. Some companies think it is not. In fact they believe it is so simple
that they do not even produce written plans but simply rely on the past
experience and the intelligence of their people to get them through the event.
Their performance is usually characterised by overrun and overspend (that is
if they have set any kind of duration or cost targets to measure against –
often they don’t)
The process of planning a Turnaround is a complex process. Therefore, it

must be planned!
This type of planning – planning the planning – is called second order

planning because it is one level above normal planning. It has two purposes.
First to allow us to understand the complexity of the planning process by
defining all of the planning elements required and the relationships between
them, and second to define the order and sequence that planning activities

are to be carried out (complete with dates for their completion) so that we
achieve a rational approach to planning.
Figure 5.1 is an actual preparation network, produced by a company, that

shows the different streams of planning (there are 15 of them in this
example), how they are all generated by the worklist, how they progress and
interact through time and how they all come together at some point before
the start of the event. Each line of the network is, in itself, a rational
sequence of events.
Fig 5.1
Above the mid line, the activities are concerned with logistics – the
procurement, reception, storage and distribution of materials, equipment,
services and facilities. The midline itself defines the various stages in the

technical planning of work. Below the midline are all of the other activities
required by that company to plan and prepare the event- safety, quality, costs
etc.
The bubbles in the diagram are to allow them to enter the date by which each
of the activities is to be complete to ensure that all is ready before the start of
the event
Note! Although the diagram may look like a critical path diagram it is not.
In a critical path diagram earlier activities must be completed before later
activities can be started. This is not the case in this diagram.
For example, on the top line the Activity 1 is “Specify pre-shutdown work”
and Activity 2 “Schedule pre-shutdown work”. On a critical path activity 1
would need to be completed before activity 2 could be started. In the
network shown in the diagram, specifying and scheduling are performed
simultaneously – the important point being that activity 1 must be completed
by the date in the bubble.
Remember, Figure 5.1 represents the diagram generated in a particular

company. It reveals the aspects of planning that they have identified as being
critical. The network from another company in another industry might
contain some different elements but the principle remains the same. Second
order planning is concerned with identifying the critical elements of
planning and organising them in a rational manner so that everyone involved
can plainly see what has to be done, the order that it has to be done and the

dates by which each activity must be completed. Some companies prefer to

present the key activities and dates for preparation on a Gantt chart.
If we combine the above with the principle of the designed organisation

where everyone has the required level of competence, knows their roles and
responsibilities, and knows who they report to and who reports to them, we
can begin to discern the sort of structure that will engender “Excellence”.
5.3 EFFECTIVE WORKSCOPE CONTROL

Having “planned the planning” it is now time to consider the business of
planning itself.
If we are correct in asserting that every other element of the Turnaround is
generated by the “task” then, working on the principles of Quality
Assurance, we need to ensure that the workscope, which is the collection of
tasks required for the Turnaround, is properly controlled at all stages. Once
again, to do this, we need to understand what the workscope is, where it
came from and why we are doing it – all this before we decide how we are
going to do it.
Fig 5.2

Sources of Turnaround tasks

We start by analysing the workscope to ascertain the sources that generated
it. Figure 5.2 represents the normal sources of turnaround tasks. The first
three are the normal combination of corrective maintenance (some items that
break down or malfunction can only be corrected when the plant is offline),
preventive maintenance (some routines generated by PM programs can only
be performed when the plant is offline), and predictive maintenance
(although, in truth, the task itself will be a either a corrective task or a
preventive task- the point is that it is generated by the predictive
maintenance program and can only be done when the plant is offline).
Tasks generated by statutory requirements are legally enforced unless a

deferment can be obtained. It is as well to remember that if we fail to carry
out a statutory inspection or other task then we are breaking the law. Work
will also be generated by plant condition - where systems or items

equipment are deemed to be obsolete for example, and need to be replaced

or modified. Process difficulties can also drive a Turnaround, especially
when the product tends to foul up the equipment or damage it in some way.
Some tasks that appear on the worklist do not qualify as maintenance tasks
but are rather improvement tasks - work that is carried out to enhance the
performance of the plant. Finally the company may be engaged in safety or
quality initiatives. In the process industry over the past decade there have
been safety programs to replace asbestos gaskets with more environmentally
friendly materials, and quality initiatives to upgrade gaskets from simple
fibre to engineered gaskets (e.g. spirally wound).
Effective Workscope
Having defined where the tasks come from, the next question - and it is one
of the most crucial questions in Turnaround planning - is:
“How do you know that the work you do will maximise plant
reliability?”
This question is based on the principle of the “ideal workscope” (See Figure
5.3) that states that there is a theoretical ideal worklist which would
guarantee the reliability of the plant from a maintenance point of view
(remember – we cannot control what the operations or production people
may do to the plant). In reality we have the actual workscope that has been
generated from all the sources discussed above. The second question is –
how closely does the actual worklist match the ideal worklist. We are once
more involved in gap analysis, i.e. the gap between the actual workscope and

the ideal workscope. The problem is that because the ideal worklist is
theoretical we cannot know directly what it is. However, we can approach it
by asking intelligent questions.
Fig 5.3
The way we approach an answer is by realising that, in our actual workscope

there may be two categories of work that will differentiate it from the ideal.
1 There may be unnecessary work on the worklist that clogs up the

worklist and wastes time and effort. Nice to do work is work that is on
the worklist because it is easier to do when the plant is shut down or
someone on the plant thinks that it “should” be done (with no
objective evidence). Dumped work is preventive work that was
planned to be done during normal production but, for one reason or

another, did not get done and so has been dumped into the Turnaround
workscope.
The remedy for this is good worklist analysis to ensure that every job
on the worklist is justified – i.e. some responsible person is taking
responsibility for each task that is requested.
Fig 5.4
Figure 5.4 is an actual example of a “gate” system a company used to

filter out unnecessary work (even major tasks) by putting each task
through a series of gates. As can be seen, if the answer to any of the
questions is “No” then the task passes through the gate to the next
gate. If the answer to any of the questions is yes then the worklist
team would consider eliminating the task form the worklist

2 More seriously is the case of necessary work that is not on the

worklist. If there is a task that needs to be done to guarantee the
reliability of the plant until the next Turnaround and it is not done,
then the consequence could be that the plant will malfunction or break
down at some time before the next Turnaround, causing loss of
production and profit. This happens more frequently than you might
imagine.
The remedy for this is carefully analysis of the plant’s performance in

detail to ascertain if there is any evidence of reduced or restricted
production levels or reduction in product quality in any part of the
plant at any stage in production that could be caused by
malfunctioning equipment.
Also we need to monitor the plant to discover any equipment that is

exhibiting pre-failure symptoms that could develop into malfunction
or breakdown over the medium term (this over and above any formal
condition monitoring that is carried out)
So, the only way you will know if the work you do will maximise
plant reliability is to validate your workscope by sifting out
unnecessary work and ensuring that all necessary work has been
included.
The following is an actual routine performed by a company to try to

ensure that all necessary work is on the worklist

NECESSARY WORK ANALYSIS
1 Have all “risk based” programs been completed and “minimum

required” work-lists been generated?
2 Has a detailed plant survey been carried out to expose any
shortcomings in plant performance that need to be rectified, including
but not limited to the following:
a) Product throughput restricted due to blockages or equipment
malfunction.
b) Product quality affected by contamination or equipment
malfunction.
c) Equipment that is unreliable and requires rectification.
d) Chronic problems that require root cause analysis to eliminate
them
e) Any containment problems that need to be resolved.
f) Any control problems that need to be resolved
3 Are there any opportunities to “design out” any chronic equipment or
production problems?
4 Is there any item of equipment that is not on the work-lists that has
caused problems on previous Shutdowns when the plant was being
started up – if so, should it be included on the current work-list
5 Are there any opportunities to “design out” future Shutdowns
Any issues identified by the above review should be appropriately actioned

and recorded e.g.
~ Inclusion on the worklist
~ System/ item performance testing.
~ Refer to technical support team
Input of information
In addition to the worklist there is a large volume of information required to
plan the turnaround. It is derived mainly form two sources; technical input

by the engineering team (could be “maintenance team” or “technical team”)

and the process input by the operations team (could be “production team)
Technical input (See Figure 5.5)

This input consists of all those technical details required to allow the
planners to produce credible plans. They include the technical standards to
be worked to during the Turnaround; back-up documentation such as
drawings etc.; historical plant data; existing additional information on the
tasks on the worklist; detailed inspection requirements; information on “bad
actors” – equipment that has chronic problems; information on any planned
plant improvement projects and an agreed validation routine to ensure that
when plans are produced they are validated by the person requesting them.
Fig 5.5
Process Input (See figure 5.6)

This input consists of all the plant based information that needs to be
integrated into the Turnaround plan. This includes procedures and programs
for shutting the plant down and starting it up again; details of the permit to
work system to be used; isolation procedures to ensure the safety of the plant
(electrical or physical); details of the tagging system to be used (if any); any
process problems currently being experienced; any process improvements to
be carried out during the Turnaround; and, once again, a validation system.
Fig 5.6
This information comes in a continuous stream during the planning phase (if
it doesn’t, the planners need to go out and find it!). The information is then
collated and processed to create task work packs.
5.4 THE PLANNING PROCESS

The process of planning a Turnaround is often misunderstood. This leads to

difficulties during execution. One of the most serious misunderstandings is
based on the erroneous belief held by many people that computers are
capable of planning – they are not. Computers are blind donkeys that will
follow where a human leads them. They may be very powerful and efficient
at what they do but what they do is not planning!
Planning is, and must be, done by human beings. Computers work on
internal machine logic that will generate the best solution according to their
programming. They are a very powerful and useful tool in planning, but that
is all they are – a tool. They know nothing of the real world and planning is
a real world activity.
Fig 5.7
Figure 5.7 lays out the planning process that shows the amalgamation of
“man and machine in harmony” each doing what it does best. The planning
process has 6 basic stages.

Information gathering
It is worth stating again that if the basic information is wrong than the plan
will be wrong. This is the point of maximum value in the planning process –
ensuring that the incoming information is correct.
Human Processing
The planners take the information provided and process it to generate plans.
The important point here is how the information is processed and that
depends upon whether the planner relies on facts (testable and provable),
estimates (extrapolations or interpolations from known data), norms
(previously calculated values) guesses (based on experience), or assumptions
(based on values and beliefs). The further away from facts we stray, the less
likely our plans are to be effective.
Computer processing
The planner first dictates the operating parameters to the computer and then
inputs planning data into the computer – this saves countless hours of
manual processing as the computer processes the data very rapidly and
efficiently and presents it in a readily usable way. However, not being in
contact with the real world it is not so effective at producing a credible
schedule.
For example - this was demonstrated by a schedule produced on a computer

that showed a manpower requirement of 290 people on days 1 and 2, 140
people on day and 220 on day four – this may reflect the precise number of
men needed but in the real world it is not possible to hire 290 men to carry

out the work, get rid of 150 of them on day three and then go out and re-hire
70 on day 4
Human processing
Credibility is brought to the schedule by the planner reviewing what the
computer has produced, testing against what he perceives to be the real
world situation and manipulating the parameters and constraints to optimise
the schedule.
Taking the previous example – to get rid of the peaks and troughs in the
resource curve, the planner would smooth the curve by “capping” resources
at a figure derived by dividing the total number of hours to be expended in
the Turnaround (say 58,000) by the total number of hours available on the
shutdown (say 21 days at 12 hours per day = 252). That would give a
capped resource figure of around 230. The planner would then input this
constraint into the computer and re-run the schedule. Obviously the capping
would cause the schedule to shuffle jobs about and the planner would need
to go though the iterative process of manipulating the resource numbers and
the work sequence until an optimum solution was achieved
Plans and schedules

Once the plans and schedule have been generated they are presented to those
who will execute the work and they represent a statement of intent – this is
how the job will be done.
Execution of the work

This is when the plan is tested in the real world. If the plan does not
sufficiently match reality it will fail.
The planning process can guide us through the steps that have to be carried
out but only human competence will determine if the plans thus produced
are effective.
The phases of planning (See Figure 5.8)

This figure shows an actual planning breakdown structure used by a
company for training its planners. This presents a more detailed (though still
outline) step by step process for planning and runs the process all the way
through execution to final review. It sometimes surprises people that
planning continues during the Turnaround and beyond.
Fig 5.8
Planning Levels
Figure 5.9 represents the fundamental requirements of planning and
differentiates between large complex tasks and small simple tasks. The two

require different levels of planning but the quality of planning must be the
same.
Fig 5.9
The Challenge approach to planning

Before we proceed to the actual mechanics of planning we should stop and

think about the kind of people we want to carry out our planning – the
planners, and ask the question,
“What separates an excellent planner from an ordinary planner?”
The answer is that the excellent planner has a set of presuppositions built
into his thinking processes that is different from the ordinary planner (See
figure 5.10).
Fig 5.10
The essence of excellence stems from the ability to go beyond the norm, to
push the boundaries back, to push planning beyond its limit so that you
know where the limit is, and then to find ways of extending that limit.

Look at the list of presuppositions (which were the output of a seminar

involving some 40 Turnaround planners). Consider the difference in the
approach of a planner who had these presuppositions installed in his thought
process against another planner who didn’t.
Remember, presuppositions are not “truth” – they don’t need to be “true”

they only have to be useful. It is enough that the person believes them
because our beliefs guide our action. If we believe that the way we do the
job today is the best way we will never be motivated to improve, but if we
believe there is always a better way to do it we will be continually searching
for improvements – and we will surely find them.
To cite this principle in another field of endeavour – it is this type of

thinking – the belief that there is always a better and faster way - that has
allowed Formula 1 racing pit teams to reduce the time for removing and
replacing four wheels on a car to under 8 seconds. I timed myself the last
time I changed one tyre. It took me just over eight minutes.
The urge to improve is always preceded by dissatisfaction with the current

situation. If we are satisfied with our standard of planning we will never be
motivated to improve. We must engender dissatisfaction in planners in order
to extract the best from them. If a good planner plans a job that will take
twenty hours to do and you simply ask him to improve on that time you may
or may not get a reduction in the time - probably not. If, on the other hand,
you set a time limit of ten hours before he plans the job you will very likely
get a time significantly less than twenty hours.

Thinking about time

While we are on the subject of time, we need to be sure that we know what
we mean when we talk about “planning time” and the “duration”. Both of
these concepts are man-made, they have no reality of their own. A human
being makes a guess as to how long a job will take. We even call it an
estimate. The dictionary defines the term “estimate” as “an approximate
judgement.” Yet when a plan is completed and approved the time to do the
job is treated as if it was carved in stone. Accurately and honestly judging
the time it takes to do a job can be a difficult thing to do so we rely on
“experience”.
Whose experience?
The people who have done the job before? Who have used the methods that
have been used for years – while techniques and technology have moved on
at a rapid pace? We need to think seriously about where these times come
from.
During a consultancy project to improve Turnaround effectiveness, the

author interviewed a planner who talked about “a little bunce”. This was
his term for the little bit of extra time he added to every plan because he
knew that “something always goes wrong and we have to cover ourselves”.
He estimated that he added only about 5% to the times i.e. if his original
estimate was 20 hours he would add 1 hour of bunce. Doesn’t seem a lot
does it?
The problem was that he was in charge of the planning a Turnaround that
exceeded 80,000 hours and took 25 days (his time), so how much was his
little 5% bunce costing?

The management of the company were horrified when they saw the figures.
The planner had, for years, been considered the expert in Turnaround
planning and had planned a total of five Turnarounds using his “little
bunce” method.
To overcome this type of thinking, many firms now use Norms. Figure 5.11
is an extract from a book of Norms, (normal times to do specific jobs).
These have been developed over the years and look very rational and
scientific. But once again we must ask the question “developed by whom?”
To the author’s certain knowledge, many of the Books of Norms used in the
UK have been derived from one Book that was developed in the mid 1980s
in a large petrochemical company.
Fig 5.11

The example in 5.11 shows the times allowed (and booked) for the breaking
or making of 16 stud flanges after a company followed the author’s
recommendation to review their Book of Norms. The time of 6.25 hours to
break a 24” joint might still seem excessive to some but the figure before the
review was 13 hours! If your company uses norms it would be advisable to
review them.
The worst example of inflated norms was a rigging norm of 142 hours to rig
a tube bundle, transport it to a washing area then return and re-install it.
This was on a 9 day shutdown being worked on a twelve hour shift.
When it was pointed out to the planner that the time he had allowed
exceeded the total duration of the shutdown, he was embarrassed.
When the job was timed and it actually took a total of 28 hours, he was
mortified.

5.5 THE WORK PACK

In order for the supervisors to organise work and tradesmen to carry it out
they need a package that contains all of the information required for the task.
This allows for rational execution of the task and saves time being wasted on
the day, hunting for information. We will now review some of the
documents in the work pack
Job Control Sheet

Figure 5.12 is an example of a common type of job control sheet used in the
UK. It was originally designed so that it could be used by someone who had
never been on the plant before – to cover all eventualities. It has a number of
interesting features.
Fig 5.12

Plot plan
This is a map to show the person doing the task where on the plant the job
location is.
Digital Photograph
This is a photograph of the actual item of equipment to be worked on so that
the person can recognise it when he reaches the location.
Services suite
At the top left hand of the sheet there are a number of tick boxes where the
planner records his service requirements. If any box is ticked then a copy of
the sheet goes to the person responsible for providing that service to allow
them to plan for it.

Job activity steps

This is what most people think of as planning, a sequence of every activity
required to complete the task (often referred to as “natural job steps”),
written out to allow the job to be carried out in a logical manner from start to
finish. It includes all permit requirements (the Job Number is also cross
referenced on the permit) and, in the bottom right hand corner of the sheet,
specifies the type of isolation required (“pull the fuses”)
The job activity steps are best formulated by the planner visiting the site and
mentally “walking through the job”, noting any constraints or difficulties
that may be experienced and then tabulating the activities – usually on a
computer.
Also notice in activity one the instruction “carry out Take Time”. This refers
to a safety inspection that is required to be performed by the work crew
immediately before starting work to ensure that the job area is safe and
nothing has been changed since the permit was signed (which may have
been some hours before).
Trades
This column specifies the trades that will be required for each activity (F =
Fitter, E = Electrician etc)
Hours (HRS)
This column specifies the time allowed to carry out each activity. If there is
more than one person in the trades column then the time is multiplied by the
number of people to derive the total hours for the job.

Technical Information
This is supplied at the bottom of the sheet and represents all of the
information required by the various people involved in the work. The bottom
line is interesting. The first box (FITTER’S NAME) is there because there
are flanged joints to be broken and remade on this particular job and, in this
company, every fitter must “sign” for the joints he makes.
The reason for this is that, a number of years ago there were a significant
number of leaks when the plant was started up after a Turnaround and,
when the Turnaround Manager tracked down who had made which joint by
interviewing the supervisors and getting them to remember which fitters had
been allocated which work, they found that the vast majority of the leaking
joints had been made by only two fitters. So they added this box to the sheet
to make identification simpler in the future.
The second box on the bottom line requires the supervisor to sign off the job
as complete (single point responsibility at work!) and the third box requires
a member of the operations staff to check the work done and sign it off as
acceptable.
The Job Control Sheets has two great advantages:

1 It covers all aspects of the work and forms a complete set of
instructions – all on one sheet (or maybe two for larger jobs)
2 Once it has been created it can be reviewed and used every time
the job is done – saving many planning hours in the future.
Bulkwork Control Sheet

Some companies plan every job, no matter how small, on a job control sheet.
Other companies batch smaller tasks (Referred to as Bulkwork) together on
a Control sheet.
Figure 5.13 shows an example of this. If a control sheet is to be used then
there needs to contain sufficient information to allow effective execution.
Fig 5.13
Isolation register sheet

Figure 5.14 is an example of another important planning document in the
Work Pack – the Isolation register sheet. The example is from the chemical
industry and shows the most extreme form of physical isolation, known as
“Physical Disconnection” or just PD.
Fig 5.14

This involves removing sections of pipe work (known as spools or bobbins)

from all pipelines connected to the equipment so that there is “fresh air”
between the equipment and any source of energy or hazardous fluid
The sheet supplies all of the information needed to safely isolate the
equipment. One thing of particular note for Shutdown planning – isolation
“F” is identified as a “Boundary Isolation”. That indicates that will form part
of the isolation for more than one task. It is extremely important that all
tasks involved are cross referenced and that this isolation is not removed
until all the tasks are completed
Fig 5.15

Job safety analysis

In order to plan safely, it is necessary to understand the hazards associated
with the task. Figure 5.15 shows an example of a simple, but very effective
technique to identify, evaluate and deal with the hazards. The process has
four activities
1 Write down each of the natural job steps involved in the task
2 For each job step, identify any hazard associated with it – this will
normally require a visit to the plant to view the job site.
3 Define the potential loss to people or the environment associated
with the hazard
4 Specify precaution to be taken to either eliminate the hazard or, if
that is not possible, to guard against it.
Using this technique effectively in planning work reduces the risk of

accident to a minimum.

Other documents required to carry out the task in the work pack include
but would not be limited to:
 BOM (bill of materials)

The planner specifies all of the materials needed to perform the
task. In some companies the material is broken down into four
“Bins”. Not all bins are required for all tasks. They are:
Bin 1 – Materials required to isolate the equipment

Bin 2 – Materials required to carry out the task (spares etc)
Bin 3 – Materials required testing (e.g. pressure testing)
Bin 4 – Materials required for de-isolating and boxing up
 Drawings
 Technical specifications
 Line diagrams
 Pressure test procedures and test sheets
 Radiography request forms
 Inspection request forms
The work pack allows the supervisor to:
 “Walk through” the job activity steps before the event to ensure that
they are feasible;
 Identify interfaces with other work in his area and take action to
prevent any potential hazards
 Analyze logistical requirements and organise all aspects of the job:

 Report any errors in the work pack to the planner before the event so
that they can be corrected
 Ensure that all documents, materials, equipment and services required
for the task will be available on the day.
5.6 SCHEDULING
The contrast between Turnarounds and other Projects

In The introduction it was stated that a Turnaround was unique because there
were differences between Turnarounds and other types of Project. One of the
differences is the approach used to plan and schedule the two.
A normal project start off with the project definition (Let’s build a bridge).
Then, using a technique called “work breakdown structure” the definition is
broken down into smaller more manageable chunks (Fabricate bridge
structure, dig foundations etc) and then into even smaller chunks (For bridge
fabrication – formulate a design, procure materials, set up a fabrication
facility etc), The chunks are then scheduled on a time line and then they are
broken down into individual tasks.
By contrast, on a Turnaround we start off with an undifferentiated worklist

of individual tasks which we validate and then using the reverse technique –
a “work build up structure”, we plan the tasks and construct a schedule from
the individual tasks. Only then can we define the project in any credible
way.

This may be one of the reasons why a number of experienced project

managers (including the author) struggled when managing their first
Turnaround.
The Planning Sequence

In order to plan effectively we need to understand the sequence of events
that take place between shutting the plant down and starting it up again and
ensure that the plans and schedules match the actual sequence.
Figure 5.17 is an example of a templated planning sequence for a vessel on

a chemical plant. It lists first the outline stages of the sequence (above the
line) and then breaks these down into smaller activities (below the line) in
the manner of the work breakdown structure.
Fig 5.17

Each step is linked to the preceding step and the succeeding step in a
continuous sequence so that when we allocate each activity a time and add
those times together we get the duration for that particular task. There may
be some overlap between some of the activities and that would be taken into
consideration.
From here we can go two ways: we can either break each of the activities
down into its natural steps to create a job method or we can combine the
whole task with other tasks to create a schedule for the Turnaround.
These days, most companies create their Turnaround schedules on computer.

There are a number of software packages available. The two main packages
used in the UK are Microsoft Project and Primavera P3. As has been
previously pointed out, care must be taken not to be seduced by the power
and accuracy of the software into believing that all we need to do is input the
data and the computer will do the rest.
One of the problems of using computers is that it has generally reduced

understanding of what critical paths are and how they are put together. It is
often left to the software to do this and sometimes it doesn’t do it very well,
despite what the manufacturers claim.
We can only minimise the duration of a Turnaround if we understand how

the critical path that determines the duration was put together; understanding
how each of the activities are linked to each other and by being able to see it.
Reliance on computers denies us this insight.

It is not within the scope of this course to discuss or compare the relative
merits of different software packages. Information regarding them is readily
available on the internet.
Fig 5.18
Figure 5.18 shows part of an event schedule with the basic information that
would be provided by the computer. Each activity is coded, defined clocked
and timed and a graphic representation is provided showing the connection
between the activities. In this example, the critical path runs through code
numbers S100 – S135, S173 – S185.

5.7 PRE SHUTDOWN WORK

There is a golden rule in effective Turnaround management – get as much
work as you can done before the event starts. This is known as pre-shutdown
work and, as shown in figure 5.1, should be specified, scheduled and carried
out before the event. The types of task normally carried out are as follows
Organise materials and services

Ensure that all materials, equipment and services that can be are positioned
adjacent to the job-site before the event.
Install site infrastructure

Install and if necessary test any required temporary power, water and
telephone lines etc before the event so that there are no hold ups on day one.
Carry out preparatory work

Build scaffold platforms, remove insulation, clean equipment and remove
any part of the structure or equipment that can be safely removed.
Create lifting and other special plans

Ensure the plans are ready and have been walked through by the supervisors
to iron out any wrinkles in the plans. Build large cranes and position other
cranes and lifting devices. If necessary, load test lifting gear and slings.
Establish facilities and accommodation

Position any temporary cabins, washrooms, toilet blocks etc and identify
who will inhabit each cabin. Ensure there are sources of refreshment and
food available.
Make the site safe for working

Remove any hazardous items and obstructions. Erect safety barriers and nets
etc
All of the above will save time on the day, cut down the number of journeys
people have to make and make the Turnaround a simpler and safer event.
5.8 Shut Downs- Maintenance Classifications
There is practically no system on earth, which can continue to

function efficiently without interruption, throughout the year. Starting
from human health to a big building / machinery, there are always
problems major or minor leading to interruption of it’s service. In human
system, we call it as sickness. In the case of machines, this is called break-
down or failure. The extent of damage varies from a minor level to a
major extent, depending on the type of failure / shut down. Industries are
cost intensive and operate on a variety of parameters ranging from low
pressure / low temperature to high pressure / high temperatures.
If the equipments are not designed to meet these parameters
effectively, equipment failure and shut downs are imminent.
Shut downs may be classified into the following types.

 Planned shut down

 Unplanned shut down
 Emergency shut down
 Mandatory shut down
Planned shut down :
Planned shut down refers to the advanced planning process of

shutting down a complete process unit / equipments to achieve a desired
task. The task may be to repair / replace the damaged parts / sections /
components of the equipment, whose performance during the operation
shows signs of deterioration. In some organizations, annual turn around
policy may warrant that the unit / units may be shut down over a stipulated
period to improve the condition of the plant and machinery, so that the unit
runs without any interruption.
Here the question arises as to when to plan the shut down of the unit
(s) once a year or once in two years or once in three years etc. Shut down
planning is based on the unit historical data on failures / performance. Shut
down plan again varies with the type of industry. In case of units having
parallel blocks, the shut down may be staggered as shown below.
Unit I
Down Stream Products
Unit
Unit II

Finished
Feed
Intermediate Product
Storage
Feed Storage Storage
Recycle
The figure shows two parallel primary units I & II of identical

capacity whose products are processed in a single down stream unit from
where the finished products are routed to finished product storage.
The facility comprises feed storage, intermediate storage and finished

product storage sections. This configuration has the advantage that the shut
down of unit I or II will only marginally affect production, whereas shutting
down the downstream unit will affect the production adversely.
This effect may be overcome by organizing the operation as follows.
 Plan the shut down of unit I & downstream unit simultaneously and
route product from II to intermediate storage.
 Commission Downstream unit and process feed from unit II plus
intermediate storage product.
 Shut down unit II and commission unit I
 Operate unit I and Downstream unit, with feed from intermediate
storage.
 Commission unit II after turn around and go normal.

Unplanned shut down:
Unplanned shut downs are forced shut downs due to a number of

reasons such as
 The non availability of feed stock
 Non availability of power and other utilities
 Lack of demand for the products produced
 Lack of / shortage of key man power to run the plant
 Limitations in storage capacity and /or
 Government stipulations.
When an unplanned shut down takes place, the planning section must have a
knowledge of how long the shut down will continue. Preparations may be
made to execute the planned jobs, taking advantage of the downtime
available.
Emergency shut down:

Emergency shut downs are imposed due to a number of emergencies such as
 Plant break downs / equipment/ instrument failures
 Toxic emissions
 Fire / Explosions / Accidents
 Leakage & soil contamination
 Bomb threats etc
Though emergency shut downs are not within the control of operations
and maintenance departments, it is possible to foresee and forecast a failure
from the historical data and reliability studies conducted on total plant.

Using statistical and mathematical models, it is possible to foresee the

failure of an equipment from inspection records.

Section 6-Part 6 USING CONTRACTORS – Shutdown & Turnaround
Contents
6.1 Introduction
6.2 Optimising the contract model
6.3 Spread of contract types
6.4 The Turnaround contract
6.5 Being commercially aware
6.6 Contractor selection
6.7 Using contractors
6.8 Contracting issues
6.9 Conclusion

6.1 INTRODUCTION
Most company’s have a well defined contracting strategy for the general
use of contractors and it is not within the scope of this section to try to
deal with such a wide subject. The purpose of this section is to explore
the main issues that are considered when engaging contractors to work on
a Turnaround
In an ideal world, a company would employ sufficient experienced,

dedicated, creative staff to perform its Turnarounds. However, we do not
live in an ideal world and, the further the company moves away from the
ideal to deal with the reality of its resourcing needs, the more it will need
to rely on outside help to perform its Turnarounds.
In modern business the “lean and mean” public image that companies
promote sometimes hides a “lean and ill” private reality. In a drive to cut
visible costs, many companies offload as many of their permanent
employees as possible and outsource as much of their business as they
believe they can get away with. If it works then the company will no
doubt prosper. If it doesn’t – and this has been the experience of a
number of companies – then the company will pay for it. So, effectively
handling contractors becomes ever more vital.
But what is a contractor? Certain parallels can be draw between the

modern contract worker and another category of men who hired their
skills out.

In the ancient world, when the main business of states was war,
“professional soldiers”- with varying degrees of fighting skill - who did
not serve any particular state would hire themselves out to the highest
bidder. The were called Mercenaries. They fought for money – they did
not worry themselves about the causes espoused by the states they fought
for. The simply fought the battle, took their money and moved on. Often,
if they were offered more money by the leader of another army – even
when they were already in the pay of one army – they would de-camp
and join the other army.
Today, the main business of companies is manufacturing (in our specific
case Maintenance and Turnarounds) and there is a similar breed of men
known as contract workers. They are not permanent employees of any
company. They work for money - they have no interest in the business
objectives of the clients they work for. They simply perform the work,
take their money and move on. If, during a contract, they are offered
more money to work on another contract some of them will leave without
notice and go to work on the other contract. They could be regarded as
the modern industrial equivalent of the mercenaries.
This is a fact of life. Client companies have to come to terms with the
additional fact that, though they may form good relationships with the
managements of contract companies – it is the contract worker who
actually does the work, and he is often not even an employee of the
contract company but is “picked up” for a particular project.
On the other side of the coin, modern industry would be all but paralyzed
if it were not for the availability of contractors. This is especially true in

the case of Turnarounds because, normally, they are relatively infrequent

events that typically require more resources than the modern company
tolerates on a day to day basis.
6.2 OPTIMISING THE CONTRACT MODEL

For most companies, the use of contractors is unavoidable and for each
company, taking into consideration the company culture as discussed in
Section 4, the question must be asked:
“What is the optimum approach to contracting out Turnaround

work?”
The answer to that question will dictate the company’s approach to

contracting.
What are the limits of outsourcing work for any individual company?
Limits are partly forced on the company by circumstances (e.g. the
company has 150 employees but the Turnaround requires the use of 800)
and partly by company culture (it may in some cases be more economic
to use a contractor for a particular task but the company does not “trust”
outsiders with particularly sensitive work).
Figure 6.1 shows the opposite ends of the contracting spectrum. At one
end the company plans and executes its own Turnaround with no outside
help (the ideal case).
At the other end the company outsources the total Turnaround package –
planning and execution – to a contract company, in this case, all that the

client does, in principle, is to provide the contractor with a worklist at the

beginning and pay the money at the end.
In practice it is often quite different. Again, although the client senior

management may decide that outsourcing the total Turnaround package
(planning and execution) to a contractor is the best way forward, the line
managers, due to their lack of trust, impose one or more of their own
people to monitor the contractor.
In the most extreme case the number of client personnel involved in

monitoring is so large that it constitutes a “shadow” management team.
The additional interactions make the organisation more complex and
unwieldy and can generate difficult interfaces.
There are many contractor combinations between the extremes shown in

Figure 6.1 and the client must understand that each has its benefits and
drawbacks and each must be handled in a different manner.
Figure 6.1 poses five crucial questions that need to be asked to find out
what the company’s approach will be to contracting out similar to the
matrix used in section 4 - Figure 4.3, although here we are not concerned
with organisational design but with the more fundamental question of
how far we go from the ideal case.
How do we get from here to there?

What is the methodology we have to use to achieve the optimum
approach for our company – this is especially cogent if we are seeking to

change our approach. We have to be sure about what we are going to do

and plan it out carefully.
Why would we want to go there?

This is a philosophical question that forces us to think about the purpose
of our action. Are we considering the use of contractors because we are
driven to it by circumstances: or because we believe it will be easier to
handle contract personnel than it is to handle our own personnel; or
because we think it will be less expensive?
How far do we want to go?

This is a reflection of the organisational issue but it is also about
relinquishing knowledge. Consider, if we hire contractors to plan,
schedule and execute our Turnarounds then we are allowing corporate
knowledge to leave our system and exist in our environment.
How much trust will it take?

For many years, clients and contractors engaged in Turnarounds have
looked on each other with some measure of suspicion, fuelled by the
different financial imperatives. The contractor, who wanted to maximise
his profit often felt that the client was trying to get work done on the
cheap and the client, who wanted to minimise costs often felt that the
contractor was padding the price to make hidden profit. Not a very sound
foundation on which to build an effective relationship.

Trust only comes when the two parties understand each others drivers
and constraints and work together to find a resolution that will suit both
parties (commonly known as the win-win situation)
How will we actually benefit from it?

In a rational world all action and all change is (or should be) performed
to obtain a benefit. If we are going to use contractors we need to be sure
that the benefit we are looking for actually exists. Some companies
engage contractors to avoid the problems they have with their own
employees but, in the experience of the author, outsourcing work often
merely trades one set of problems for another.
Unless we ask these questions and answer them honestly, companies are
in danger of stumbling into a contracting situation that they cannot
control and they become victims of circumstances of our own creation.
Critical Relationship
There is also a critical relationship defined in the diagram. Using the
normal process concept we would represent the relation ship between
contractor and client as:
Input Contractor Output/ Input Client Output
but in the case of the contractor/ client relationship on Turnarounds, the

input and output lines bend to form a circle because the contractor is
relying on the client to supply high quality specification of work and the

client is depending on the contractor to supply high quality work (which

he can only do if he gets good specification – completing the circle to
form a causal loop). This loop can create a virtuous or a vicious circle,
depending on the quality of the inputs and outputs.
Influences
It is also necessary to consider the kinds of factors, apart from the client’s
attitude, that influence the selection of contractors? Figure 6.2 shows six
main factors:
The size of the client’s organisation - as already mentioned, this might

force the use of contractors.
The scope of work and how it is packaged – this would influence what
type of contracting company or companies we need to used, especially if
it is highly specialised work that the company does not have the
capability to perform.
The design of the organisations - and how the contractors fitted into
that design, would influence what type of contract personnel we would
use (e.g. tradesmen only or tradesman and supervision?)
The type of contract to be awarded - (e.g. fixed price or day-work)

would determine the companies we would choose

The area of the world in which the client operates – this can be crucial
as, in some parts of the world there is a shortage of skilled labour and
specialist companies.
The availability of funds for the Turnaround - if the company is

operating on a shoestring then the number of contractors will be held to
an absolute minimum.
These have to be known and taken into consideration when deciding

upon a contracting strategy.
The Upside and downside of contracting
Figure 6.3 lists some of the positive aspects of using contractors,

covering the issues of insufficient client numbers and expertise; the
dependence on the contractors greater experience in Turnarounds and
their ability to perform specialised tasks (e.g. compressor overhaul) as
well as hazardous tasks (e.g. inert entries) and mundane tasks (e.g.
cleaning and de-fouling)
Figure 6.4 on the other hand, lists some of the shortcomings experienced
with some contractors such as unavailability (not there when you need
them); their quality of work (not to the standard the client requires); the
fact that their objectives may conflict with the client’s (maximising profit
versus minimising cost) and the additional factor that this may lead to
confrontation and, in extreme cases, litigation.

Awareness of the influences and issue involved in hiring contractors will

lead to higher quality outsourcing of work.
6.3 SPREAD OF CONTRACT TYPES

There is a whole spectrum of contract types. For the purposes of this
course we will discuss three types, two of which lie at each end of the
spectrum and the third which lies approximately in the middle; Fixed
Price, Management Fee and Reimbursable man-hours, and Daywork (See
Figure 6.5).
Fixed Price
In this type of contract the price for the contractor’s Turnaround
workscope is agreed and fixed before work starts. This requires that
the client knows beforehand exactly what work he wants carried out
and then accurately specifies the work to allow the contractor to
calculate and accurate cost. Also this approach needs to be
accompanied by a robust system for handling variations to contract
(due to delays, change of intent or emergent work) – because there
surely will be variations unless the specification is perfect.
The benefits of this approach is that the cost is fixed and known and
the onus is on the contactor to perform, i.e. he has to absorb any
increased expenditure due to inefficient working etc.
The drawbacks is that the client has to pay for any lost time due to
delays and, because the reasons for this are never very clear cut, the
relationship with the contractor can become confrontational.

Management Fee and reimbursable hours (against targeted man-

hours)
The client pays the contractor a fixed fee to manage the event and
reimburses the Contractor for every hour spent on the job. This is not
very effective unless the client and the contractor agree on the
estimated number of hours the job will take and set targets for
achievement – these are often accompanied by cash incentives. The
work should still be accurately specified but does not need to be to the
extent required by a fixed price. Any additional work can be agreed
and paid for using the same hourly rates as for the contract.
The benefits are that the management fee is known and the
reimbursable hours are targeted – but with inbuilt flexibility, it
therefore does not need such a stringent variation system as a fixed
price contract.
The drawback is that the actual cost of the planned event is not known
beforehand (only estimated) and it is the client’s responsibility to
monitor the performance and progress of the contractor to ensure
value for money.
Daywork
This consists of the hiring of bodies to do work. It requires neither
detailed work specification nor a variation system.

The benefits of this system are that no planning is required and

manpower is very flexible – the client can alter the number of men
needed at short notice and have sub-standard resources replaced.
The drawbacks are that this approach is the most expensive one as it is
characterised by low productivity and it requires the client to provide
very close supervision of the works.
The requirement is for the client to optimise the contract strategy, given
the current circumstances and the knowing the factors that are
influencing contract choice. The company must choose the contract, or
combination of contracts that is most suitable for its needs.
6.4 THE TURNAROUND CONTRACT

The vast majority of commercial companies have their own contract
department or function and it is not within the scope of this course to
consider the general subject of contracts. However, the Turnaround
Manager and his team should understand the mechanisms of a contract
and, for that reason; this section will touch on the eight general clauses of
a contract.
Figure 6.6 shows the clauses that an effective Turnaround contract

should have to ensure that all issues have been addressed. They are
1 Memorandum of contract
This is the legally binding agreement signed by both parties where
one party (the contractor) promises to perform specified works in

return for the payment of a specified amount of money by the other

party (the client)
2 General conditions of contract

This sets out the liabilities, both contractual and legal on each of
the parties and specifies action to be take if either of the parties
brakes the contract or in the case of force majeure, (a French term
that literally translates as “superior strength”) and refers to
irresistible or unforeseen events beyond either party’s ability to
control making the contract impossible to complete.
An example of this is that of a large project the steel for which was
to be delivered from Kobe in Japan. Unfortunately for the good
people of Kobe there was a large and ferocious earthquake which,
among other things levelled the Kobe steelworks. The client could
not supply the steelwork to the contractor and Force majeure was
invoked to cancel the contract. This was accepted by the
contractor because the earthquake was beyond the client’s ability
to control.
3 Supplementary conditions of contract

This specifies requirements that are specific to the Turnaround in
question and are often quite different in different companies and
different industries. It is the client’s responsibility to specify these
conditions, as failure to do so could result in the justifiable claim
by the contractor for extra payment due to having to work under

conditions that make the work more time consuming, technically

difficult or hazardous.
4 Specification of the works

This specifies, as precisely as possible, the work that the client
requires the contractor to perform in return for the payment. The
one exception to this would be day work where the client does not
specify the work but merely hires bodies to do the work under
client supervision.
5 Schedule of the works

This specifies the contractors terms and conditions and all
information associated with his charges, such as hourly rates of
pay, shift patterns, normal working day hours, overtime rates etc.
6.Measurement, valuation and incentive

This specifies how work performance and progress will be
measured and evaluated during the event and what specific
incentives (if any) will be used to encourage the contractor to
finish the works safely, within the specified time and cost, and to
the specified level of quality.
7.Schedule of contractor’s statements

This details the contractors on-site and HQ organisations, methods
and procedures of working, specific quality plans and other
documents that explain his intentions for managing and executing
the works.

8.Appendices
This contains copies of any document that the contractor will use to
plan, manage or execute the work, such as sample planning sheets/
work packs; control sheets; run down graphs etc
Over the years is has become apparent that, although contracts may be
enforceable in law (a reactive action) they can be difficult to enforce on
the day. Here we will cite one factor, namely:
The “letter of the contract” versus the “spirit of the contract”

The contract is a written document but much of the mechanism
required to operate it is unwritten. The letter of the contract refers to
the fact that legally, both parties have to do exactly what is written in
the contract. This in itself can cause difficulties not even thought of by
those who drew up the contract.
For example - the letter of the contract might state that the
contractor shall not carry out any extra work unless the client has
signed a “variation order” detailing what is to be done and an
agreeing an estimated cost. However, what would be the
consequences of trying to enforce this if the need for extra work was
discovered at one o’clock in the morning on the critical path job. In
the worst case half a day could be lost because the “variation order
might not even be started until seven o’clock when the Turnaround
Manager arrived for work and then there would be the time to specify

the work, estimate the cost and get the necessary approvals – so the
indirect bill for enforcing the letter of the law would be a half day’s
lost production and disruption of the schedule because of the knock-
on effect of the delay.
This is where the spirit of the contract operates. The contractor and
the client agree beforehand to show “good faith” which means that, in
the above case, the contractor – to serve the client’s best interest -
would proceed with the work without any written authorisation to do
so (breaking the letter of the contract) and the client would fairly
recompense the contractor after the event.
The problem here is that the client and contractor may get involved in
a dispute after the event as to what was or what was not genuine extra
work and what is or what is not a fair price. So, there are also
consequences for operating the spirit of the contract. In the worst
case it can lead to litigation. This is why so many contracting
companies have professional “Claims Engineers”
So, the Turnaround manager must strike a balance between letter and
spirit of the contract in order to keep the event on track. There are two
elements that can greatly assist him in this. They are “commercial
awareness” and “pre-qualification”
6.5 BEING COMMERCIALLY AWARE

As was stated previously, the more we outsource work, the more
Turnaround Management becomes Contract Management. If this is so,

then the company should ensure that, by training and experience, the
person filling the Turnaround Manager role is commercially aware (See
Figure 6.7).
Commercial awareness has a number of elements:
Pre-qualification audits to test suitability

The Turnaround Manager or his nominee should audit any contractor
that has not previously been used by the company to ensure that they
are fit for purpose and can fulfil the minimum requirements for the
Turnaround. Section 6.6 will deal with pre-qualification in more
detail.
“Variation to contract” control and adjudication

The manager should have an sound working knowledge of the
contract variation system and be able to decide when specific work
constitutes a variation; negotiate with the contractor on the term and
conditions of the variation and have the ability to adjudicate any
variation dispute.
Awareness of “ethics and fraud”

Ethics is defined as “a set of moral principles” and refers to the need
for the contractor (and the client) to make their best effort to work
within the letter and the spirit of the contractor.
The reverse side of the coin is fraud, which is defined as “criminal
deception” and refers, for example, to a contractor claiming money for
something that was not done. Fortunately, the majority of contractors

are ethical in their practice and the reputation of contractors is sullied

by the few who act unethically (often referred to as “cowboys”)
The effective Turnaround manager must be aware of the possibility of

fraud and be aware enough to spot it when it occurs.
Effective Contractor/ client relationship principles

In order for the event to be managed effectively, a good relationship
needs to exist between the Turnaround manager and contractor
representatives. This involves getting to know the contractors and
their systems and ways of working; of agreeing beforehand how
certain aspects of the event will be handled – emergent work,
monitoring and reporting for example - and talking the work through
during table top exercises and plant visits so that there is a common
understanding of how things should be done, before the event.
Education and practice in contract management

Contract management is not a natural or inherent skill. Turnaround
managers need to be trained in the requirements of contract
management and allowed to practice their skills in order to manage
Turnarounds effectively using a professional approach that matches
the contractor’s.
Timely cost data capture

There are two ways that costs can be treated for a Turnaround. The
first is to spend the money during the event without any kind of

control and simply tot the costs up after the event (which may take
many months and then you may be in for an unpleasant surprise).
The second is to exercise control during the event so that costs are
recorded as they are committed, to allow the manager, at any time
during the event, to know with reasonable accuracy how much has
actually been spent as opposed to how much expenditure was
estimated at this stage of the event.
The best cost control software packages provide an “Anticipated Final

Cost” for the event based on the spending pattern to date, which lets
you know where your costs are likely to end up if you keep spending
at the current rate. This allows the Turnaround Manager to take action
to bring costs back within acceptable limits.
Awareness of the letter and the spirit of the contract

This has been dealt with in detail. The point here is that an effective
manager needs to know when to operate the letter of the contact and
when it is best to relax the rules and operate the spirit of the contract
Line managers’ responsible for cost control

If cost control is to be exerted on the Turnaround then the Line
Managers – The Turnaround Manager and any other “managers”
nominated by him will be made responsible for the control of
expenditure.
Control tasks specified in roles and responsibilities

If someone is to be made responsible for controlling contract costs

then their duties must be specified in their roles and responsibilities
and they may need to be trained in cost control to ensure they are
effective.
Contract monitoring to test compliance

Once the event has stared, it is incumbent upon the client to monitor
the contractor’s performance and progress to ensure that the contract
is being met and also to have a recovery plan to get things back on
track if necessary.
The above constitute only the basic requirements but, armed with them, the
Turnaround Manager has much better chance of controlling the Turnaround.
Without them he is liable to become a victim of circumstance.
6.6 CONTRACTOR SELECTION

Much writing on contractor selection starts where the contractor’s bids
have been received. The normal procedure is for each of the contractors
to submit a sealed bid in two separate parts, the technical bid and the
commercial bid.
First the technical bids are opened (while the commercial bids remained
sealed) and analysed to test them against a set of criteria that judges the
contractor’s technical ability to execute the scope of work.
Once the contractors have been ranked in order of technical ability then
the commercial bids are opened. The general rule that is supposed to be
applied in business is that where two or more contractors have equal

technical ability then the contractor submitting the lowest price will be
awarded the contract.
There are other factors that may be taken into consideration – experience
of the contractor; contractor’s knowledge of the clients industry or plant
etc., but in general the above rule should apply. Where things can become
difficult is when the company enforces the rule that the contractor
submitting the lowest price – irrespective of comparative ability – is
awarded the contract. The Turnaround manager may be left to manage an
unsatisfactory situation, and may be left to take the blame if the event is
not successful.
Selection should start mush earlier than this with “pre-qualification” (as
per element one of commercial awareness). The turnaround manager
(often in collaboration with other key players) draws up a shortlist of
contract companies who will be invited to bid for the Turnaround
contract (may be for the whole workscope or a specific part of it).
The Turnaround manager than pre-qualifies each company (See Figure
6.8). This usually takes the form of inviting each of the contractors to site
for a plant tour (so that they can get a feel for the Turnaround) and a pre-
qualification meeting.
At the meeting the client explains the plant situation and any difficulties
what exist (difficult access to certain jobs, restrictions on permit etc);
outlines the targets and requirements that the contractor will have to
meet; defines any interfaces that will occur between the client and
contractor and with other contractors so that any difficulties can be

exposed (for example two contractor performing different work in the

same space at the same time); explains the general conditions of the
contract; outlines sub-contractor engagement policy (will they be haired
by the client or the contractor?) and goes through the detail of the
supplementary contract clause – defining all of the special requirements
and restrictions for this specific event.
The contract or is allowed and encouraged to ask questions for

clarification.
Once this part of the meeting is complete, the contractor then defines for
the client such details as the contractor management structure both on site
and at HQ that will handle the contract (CVs for key personnel may be
submitted at this stage); working patterns and pay scales (the client can
make a comparison at this stage as to the relative potential cost of each
contract); sub-contractor engagement and how it will be organised; the
contractor’s health safety and environmental policy for Turnarounds;
their quality assurance and control systems and their systems for
controlling work.
This information together with the contractor’s references can then be

weighed up and a decision made as to which of the short-listed
contractors shall be invited to bid for the contract.
At this point, some contractors may disqualify themselves on the grounds
that the contract is not suited to their company. The Turnaround manager
(and his team) can also disqualify unsuitable contractors.

This means that when the later selection is carried out there is a greater
chance of the contractor who is chosen being suitable for the work.
6.7 USING CONTRACTORS

If the Turnaround is going to be successful there are three fundamental
requirements that must be observed as far as contractors are concerned
(See Figure 6.9).
Contractor Mobilisation
The first is to ensure that the event starts on time and in the correct
manner. Part of this is ensuring that each of the contractors is on site
at the time they are required, fully briefed and fully equipped to start
their work at the correct time, and that nothing is done by the client to
hold the contractor up or prevent him from carrying out the works..
Delays at this point can put unbearable pressure on everyone and, in
the worst case, guarantee that the event will overrun even before it has
started.
Contractor Monitoring
When the work starts it is vital that, at any given time, within half a
day, the Turnaround Manager knows the contractors’ level of
performance and progress against the schedule. This may be done by
active monitoring by client personnel during the working day (usually
agreed beforehand with the contractor to avoid conflict); written
reports submitted by the contractor on a daily basis and attendance by
the contractor at the daily control meeting where verbal reports on

progress, performance and problems are submitted for consideration

and, if necessary, action to recover.
Contractor Demobilisation
Contractors cost money so they should always be demobilised at the
earliest feasible date.
There is an old saying that “the first 90% of a contract represents

90% of the cost and the last 10% of the contract represents the other
90% of the cost.
This is a recognition that contracts such as Turnarounds can tend to

drag on at the end and that costs can mount, sometimes at an alarming
rate. This is normally due to poor planning and preparation or poor
monitoring of the situation during the event.
The effective Turnaround Manager will ensure that the “last 10%“
costs are held to a minimum by demobilising the contractors early.
6.8 WHY CONTRACTS FAIL

It takes a lot of effort to get two different organisations working in
harmony towards a common objective. If the effort is not put in then the
result could be that the contract fails and both parties walk away feeling
that they have been badly done by. Most contract failures, when they are
analysed, can be tracked back either to something that someone did that

they shouldn’t have done or something they didn’t do that they should
have. The most common faults as listed on Figure 6.10 are:
Lack of management commitment

The management of the client company takes neither the time nor the
effort to ensure that the Turnaround contract is properly set up and
administered. Often they delegate this to a junior person who does not
have experience in managing contracts and the result is the contract
goes badly for the client. (Remember the GIGO rule)
Unrealistic expectation
Where either party expects something from the other party, who is
either unwilling or incapable of giving it. The client management may
demands that the event be completed in 21 days but if the critical path
determines that it will take 23 days, this expectation will not be met.
Worst case for both parties is if the contractor pretends he can
complete within 21 days and it takes 23 – this is the case where an
inevitable fact of life is translated into a failure by stupid people.
Unclear objectives
When the client does not clearly specify to the contractor what he
wants, sometimes because the client only has a vague idea or does not
provide the means whereby the contractor can achieve the objective,
or has no means of monitoring performance to ascertain if the
objective is being met.

Ineffective contract strategy

Where the client decides upon a contract strategy that does not suit the
Turnaround requirements. For example, agreeing to a fixed price
against an unclear workscope means that there will be a large number
of claims for extra payment form the contractor.
Hidden agendas
When either side hides a pertinent fact from the other, so as to further
their current agenda. A Turnaround manager fails to inform a
contractor of a circumstance on the plant that will make the work
more difficult in order to keep the price down at the planning stage.
The consequence is that when the contractor discovers the difficulty
he will demand extra payment. However, the Turnaround Manager
records this extra cost as “emergent work” and retains the illusion that
the initial contract price was accurate given the state of knowledge
that was extant at the time the contract was drawn up.
Poor work specification

The excuse most often cited for this is that “there was not enough
time” which is unacceptable because if the company had an effective
Turnaround Policy the time (and resources) would be made available.
The road to excellent performance is characterised by attention to
detail and accurate calculation.
Unfamiliarity with Turnarounds

Unfamiliarity is the greatest enemy of good performance because

there is no previous experience or procedure to rely on. Whether it is
the client or the contractor who is unfamiliar the client will, in the
end, pay for it either by the occurrence of accidents, wasted time and/
or wasted money.
Underestimation of costs or complexity

This is the triumph of confidence over competence. The naïve
expectation that “everything will be all right on the night” In a
contractor it is regrettable. In a client it is inexcusable.
Ineffective control of the event

If the Turnaround Manager does not know what the contractor’s
current performance or progress is then the event can get out of
control.
For example - the author was called in to arbitrate on a post

Turnaround situation where the planned 26 event had taken 33 days
and cost 20% more than the estimate. The client and the contractor
were blaming each other for the delay. What was discovered (after
only a half day investigation) was that at no time, from day one, did
either the client’s Turnaround Manager or the contractors Event
Manager know where the Turnaround was in terms of progress or
performance. This was because they had not agreed beforehand on
the monitoring criteria to be used to control the event.

Emergent work and other “unknowns”

This at least, you might say, is no one’s fault – being almost force
majeure - but the sad fact is that a great deal of “emergent” work
could have been predicted before the event and changes of intent
could be avoided if the planning of the event had been of the
necessary quality.
6.9 CONCLUSION
Working with contractors can be very rewarding or extremely frustrating.
It all depends upon the effort that both client and contactor are willing to
put in at both the planning and the execution stages to ensure that the
contract succeeds. Some client companies bemoan the fact that they have
to use contractors and treat them with the minimum of respect or trust,
but the reality of modern business dictates that contractors are a fact of
life and, if present cost reduction trends continue they will become more
and more a fact of life. The Intelligent Company will embrace this reality
and change their culture to one that understands and cooperates with their
contractors.

Section 6- Part 7 – COST ESTIMATING, REPORTING AND

CONTROL
Contents
7.1 Introduction
7.2 Total business impact
7.3 Waste –the hidden cost
7.4 Cost reporting
7.5 The cost estimate
7.6 Volume and value
7.7 Modelling expenditure
7.8 Incentives
7.9 Conclusion

7.1 INTRODUCTION
The purpose of this section is to explore the issues of Turnaround costs both
direct and indirect. In order to control costs we must first define them. We
need to understand why and how money is expended before we can attempt
to regulate that expenditure with a view to minimising the cost of
Turnarounds and contribute positively to of the company’s business strategy.
The fundamental function of commercial business is to generate gross profit

which is defined as the residue of money left over when we subtract the cost
of production, distribution and administration from the revenue generated by
sales.
The cost of production is made up basically of plant operating costs and

asset management costs. Turnarounds are as asset management cost because
their work-scopes are usually a mixture of corrective and preventive
maintenance to maintain the plant’s reliability (asset care) and capital
projects aimed at enhancing plant performance in some way (asset
improvement).
Turnarounds are paid for from company profits, if this source of revenue is
available, or by money borrowed from the banks – in which case it will draw
interest charges, making the Turnaround even more expensive.
The term “Turnaround Costs” has many interpretations. Some companies

only include contractor costs, material costs and any unique expenditure,

regarding the salaries of their own personnel to be part of the normal

production costs. Other companies include all direct costs (including the
salaries of their own people).
The cost model presented here goes much further by posing the fundamental
question:
“What is the total impact of a Turnaround on the business?”
Another way to ask this question is:
“If we did not do the Turnaround, how much money would we

save?”
In order to answer either of those questions we must first know what we

spend on planning and executing a Turnaround.
7.2 TOTAL BUSINESS IMPACT
Figure 7.1 represents the main costs associated with a Turnaround.
Event Costs
The first of the small frames represent the direct costs of the Turnaround –
money spent on planning and preparation and then on the man-power,
materials, equipment and services used to execute the Turnaround.
Preparation costs need to include every hour spent by any person in planning
or preparing for the Turnaround.

For example, if an engineer, as part of his daily work, spends six hours
writing a specification for a Turnaround task - where should the costs be
assigned? The model dictates that they should be booked against the
Turnaround. If we hide Turnaround costs among normal day to day costs
this will lead the company to believe that normal production is more
expensive than it really is and Turnarounds are less expensive than they
really are. This false knowledge will seriously undermine the company’s
ability to control either normal production/ maintenance costs or
Turnaround costs.

Potential Costs
The second small frame represents the potential costs that may be added to
the planned cost because of such factors as emergent work; the cost of the
event overrunning – which can throw the company’s marketing plan into
chaos; the cost of overspending on the event to get the planned work done;
any loss of profit due restrictions on product throughput or low product
quality caused by a poor plant start up.
Again, in many companies, revenue lost to poor start up is hidden in
production costs when it is really a cost associated with the Turnaround
Production Costs
The larger frame represents costs to production. First there are the fixed
costs for the day to day operation of the plant even though it is offline. Then
there are the down time salaries for production staff who are paid to produce
but are prevented from doing so because the plant is shutdown.
There also may be on-costs associated with need to buy in product for re-
sale to customers in order to retain the right to supply those customers. Then
there may be the costs of disposing of effluent – this is becoming more and
more expensive as the environmental laws are drawn tighter around industry.
Another cost to be taken into consideration is interaction cost – generated by

any effect the plant shutdown has on any other part of the company or its
environment.
Business costs

In the largest frame there are the costs to the business (apart form the direct
event costs). The major actual cost to the business is loss of profit – this can
sometimes dwarf the direct costs, e.g. a company that makes £400,000 per
day profit shuts down for sixteen for a Turnaround that has a direct cost of
£1.2M., compared with lost profit which amounts to £6.4.
The other costs in this frame are potential losses that could be sustained
owing to the event overrunning and the company either losing market share
or customers or even the reputation of being a reliable supplier, because it
could not deliver product on time.
Then there is the potential threat of legal action if HSE standards are
breached during the shutdown by way of accident or pollution of the
environment.
The business impact is thought to be so serious by some of the larger

companies in the UK that they actually inform the stock market, and put an
article in the Financial Times when they are about to carry out a major
Turnaround.
The example in Figure 7.1 shows the difference in one particular company
between what was originally calculate to be the cost of a Turnaround (before
they used the model) and the total costs exposed (approximately four times
the direct cost) after they used the model.

When the business managers saw these figures it brought home to them just
how large an impact a Turnaround had on business profitability. This caused
them to absorb Turnarounds into the main business strategy.
As well as knowing the detail of the total costs of Turnarounds we need to

look at the costs over a period of time and consider the other impact that the
Turnaround has – on plant reliability.
Figure 7.2 shows a long term Turnaround business plan laid out along a
seven year rolling timeline. The blocks on the top of the diagram represent
the company’s Turnaround pattern – a major Turnaround every three years
and a small interim turnaround in each of the intervening years.

Note also that, in the last three years there have been four unplanned
shutdowns - three of which have occurred within two months of the planned
shutdown.
The top half of the table shows the planned costs for each of the seven years
and actual amounts for each of the planned and unplanned Turnarounds for
the last three years. It also includes the cost of asset replacement and asset
improvement projects.
The bottom half of the table shows the production targets and the actual
production achieved in each of the last three years as well as the cost penalty
in the form of lost profit associated with the under-achievement. The plant
has been underperforming and, if reliability is the aim, then the reasons for
the under-performance must be discovered and, if it is related to any aspect
of the Turnaround, eliminated
7.3 WASTED TIME – THE HIDDEN COST

We pay for inefficiency in Turnarounds. Anything that wastes time costs
money. Waste can cost a great deal of money. The problem is that the
money lost is an accumulation of thousands of small amounts of lost time
due, once again to the fact that either someone did not do what they were
supposed to do or did something they were not supposed to.
Figure 7.3 shows some of the issues that lead to lost time during a
Turnaround but, like an iceberg, over 90% of the factors that waste time and

cost money are hidden under the surface of apparently effective planning
and preparation. We expend a lot of time, effort and money on planning and
scheduling the work and yet we pay little attention to the issues that cost us
so much money. Maybe the very fact, taken singly, none of them costs very
much blinds us to the fact that, taken together, they generate substantial
costs.
Wasted time can be only be eliminated by having effective procedures,

complying with the procedures and giving attention to detail at the planning
stage.

7.4 RATIONAL COST REPORTING MODEL

Cartographers make detailed maps of geographical regions of the world so
that travellers can navigate their way through those regions and not get lost.
In a similar fashion the Turnaround Manager needs to have a “Map” of his
costs so that, in principle, he has an estimate beforehand of where every
penny will be spent.
“Cost Mapping” consists of first analysing expenditure patterns to

understand how and when costs are generated: by breaking down the cost
structure of the Turnaround into specific and recognisable features and
putting a value against each. The detailed cost map should be capable of
evaluating the cost of every task on the Turnaround because every task is
given a unique job number and all costs associated with the task should be
booked against the job number.
This is the ideal model. The further the company moves away from the ideal
model, the less accurately it is able to map costs in the present, and the less
able it is able to estimate costs in the future.
One company that had a crude way of estimating in “blocks”, e.g.

scaffolding was always estimated as a block of approximately £175,000. The
actual figure was always higher – due to “unforeseen requirements”. The
cost was 10% of the total event cost. Analysis revealed that the company
planner would show the scaffolding representative all of the sites where
scaffold was needed. The rep would then work out how many “gangs” he

would need to complete the work, multiply this by hours and hourly rate and
present the “estimate” to the company.
A quantity surveyor was employed short term to look at the Turnaround cost
structure and he advised that the costing approach for scaffolding be
changed. He negotiated a “unit cost” for scaffolding that generated a cost
for each individual scaffold based on its size and height. The actual cost for
the scaffold that year was £134,000, a saving of £31,000+ on the estimate
that represented a reduction of 18%. The QS also took a photograph of each
scaffold once it had been erected and produced a catalogue of Turnaround
scaffold requirements with a picture and a detailed cost for each scaffold.
This cut future planning costs drastically.
The second strand of cost mapping is to discover how effectively work is

controlled during the planning and execution stages of the Turnaround by
using the concept of the “rational cost report”
Figure 7.4 shows a time based cost map. There are four key dates in the cost
map; the date the event is initiated; the date that worklist is closed; the date
the event starts and the date it finishes. Costs are mapped throughout the
three periods defined by the four dates as follows:
Period One – Planned Work

This represents the workscope agreed at the worklist closure date and on this
the control estimate for the event is calculated. The important fact is that
performance should be measured against this figure.
Period two – Late work

This represents work that is added to the worklist after the worklist closure
date. It defines the company’s ability to control work. Rather than just
complain about the late work – which many companies do, seeing it as a sad
fact of life, the cost mapping model measures it and its effect on Turnaround
planning and costs. All work requested after the closure date must be
requested on a “Late work authorisation” form that requires the requester to
define the work, estimate the cost and then answer two questions:
1 “Why was this job not on the initial worklist/”

There may be a good reason – a defect that has just been discovered, but in
many cases the answer to the question is difficult. Think of the possible
responses – “I forgot”? – I was too busy”?
These responses give the company a starting point to discover and eliminate
the root causes for late work requests.
2 “What would be the consequences of not doing this work?”
This eliminates “nice–to-do” work. If there is a good reason why the job
needs to be done it will be done but sometimes people try to sneak work
onto the worklist that is unnecessary, merely because it suits their purpose to
get it done during the Turnaround..
Finally, the work has to be approved, in writing, by the most senior manager
on the plant.
The work is then priced separately from the planned work and identified as
“Late work costs”
The purpose of this exercise is to impose discipline on the work request

system so that we can first measure and then eliminate late work. One
company which was dogged by late work introduced this system and late
work was reduced form 132 requests in the year it was introduced to 4 the
following year. It seemed that once through the late work authorisation was
enough for most people.
Period 3 – Emergent work

Once the event starts, work will start to “emerge” that needs to be done on
top of the planned and late work. It is thus therefore defined as “Emergent”
work. Again, in line with the concept of cost mapping, emergent work is
broken down into three categories:
Extra work
Defined as work that is generated by an existing work order. For
example the initial work order is for changing the bearings on a pump
rotor but when the pump is opened up the seals are found to be
damaged and now have to be replaced.
Additional Work
Defined as work that is generated by a new work order to cover
unforeseen work. This can happen for instance when an item that was
operating perfectly well before the event and was not therefore on the
event worklist, fails when the plant is started up and has to be
replaced.
Late work
Even after the start of the event, work may be added to the worklist
that should have been on the initial worklist.
All requests for emergent work need to be investigated to discover why they
were necessary.
On one plant when corrosion was found inside an item, one of the plant
supervisors remarked “That happened the last time we opened this up!” He

was asked why he had not given this information to the planner at the
planning stage when it could have been incorporated into the plan. His
response was to shrug and say “I forgot about it”. Good de-briefing would
have picked this up on the previous event.
The above three categories constitute work that must either be covered by a
contingency fund which is set aside form the main budget, only used if it is
necessary and returned if it is not, or the company makes no provision for
emergent work and “takes the hit” if it occurs. The model recommends the
contingency fund.
Figure 7.4 shows how reporting costs can be made more rational by using
the cost model. In the first example – because only a crude estimating and
reporting system was used all that could be reported was that the planned
costs were $4.5M and the actual was $5.6M. This was only reported after the
event. The reaction from the senior management can be easily imagined.
In example two the cost is broken down to show that the Planned work took
$4.3M (less than the planned cost) and the impact of late work and emergent
work were $0.4M and $0.9M respectively. This would be backed up by a
detailed breakdown of late and emergent costs. Because the late costs had
been reported before the event and the emergent costs during the event as
they increased, the management were mush more sanguine about the final
report.
Figure 7.5 Shows an actual outline cost map generated by a company using
the cost model. The plant was broken down into three system (each of which

was then sub-divided down to individual job level). For each system there
was a further break down of costs into preparation, scheduled work, late


work and emergent work costs (also sub-divided down to individual job
level). Projects also had provision for emergent work. Finally there was a
general contingency fund to cover all emergent work on the plant (it was set
at 12% based on previous experience – the actual expenditure was 8.5%) so
the remaining 3.5% was returned to the company.
One last point that is worth making regarding the reporting element of cost
mapping, it needs to be based on committed costs. To clarify this, refer to
Figure 7.6 which designates the three different stages of cost.

First there are estimated costs.

These are costs that are predicted before the placing of the order. These
individual estimates are accumulated to form the control estimate for the
event.
Second, there are committed costs.

These are costs that are recorded when the order is placed. In the case of
manpower, the costs are committed on a daily basis even though the bill for
the manpower may not be submitted for some weeks or months after the
event
Third there are expended costs.

These represent the money paid on receipt of the invoice (or sometime
thereafter).
If we are going to track costs effectively during the event we need to do it on

committed costs because we will not know the expended costs until some
time after the event is over.
7.5 THE COST ESTIMATE

The dictionary defines an estimate as “a price specified as that likely to be
charged for work done”. The uncertainty lies in the word “likely” which
determines that we are dealing with probability. We do not know the cost for
certain so we make a prediction based on whatever level of knowledge and

experience we have. If we do not map costs and analyse them then that
“knowledge and experience” may be of a very low level, and that lack could
cost the company a great deal of money (remember the scaffolding!)
There are three phases to producing an effective cost estimate for a

Turnaround (See Figure 7.7), the ball park estimate, the refinement phase
and the control (or final) estimate.
The Ballpark estimate

The ballpark estimate is produced as far in advance of the event as possible.

In reality it is usually between 3 and 9 months before the event, depending
upon the size of the Turnaround and the time allocated for planning. It is put
together using whatever data is available at the time together with rough
estimates for the work that does not have any indicative price. This is put
together in an estimate that has an accuracy of no better than plus or minus
20% - that is all the accuracy we require at this time.
The estimate is reported to the Steering Group to give them early warning of
the likely cost of the Turnaround. Where money has been allocated for the
Turnaround in the maintenance budget, it can be compared with the ballpark
figure to ensure they are “in the same ballpark”. If they are not, then the
steering group needs to take action to resolve the differences. Usually they
are three options.
Refining the estimate

Between the times the ballpark estimate is presented and the production of
the final estimate there is a period of time when the estimate is refined as
more and more hard information on prices becomes available. This
culminates in the generation of a draft estimate that should be accurate to
within 3 - 5% and be ready 4 -6 weeks before the event.
The control estimate

Once the draft estimate has been produced it is analysed and risk assessed by
the steering group and, based on their findings either approved or modified.
When agreement is reached on the final form of the estimate it is published

as the control estimate for the Turnaround, usually 2 weeks before the event
is due to start.
7.6 VOLUME AND VALUE

To work effectively we need to differentiate between the volume of cost and
the value of the money that is spent.
The volume
Once we have a cost model including a rational way of reporting costs we
can begin to analyse the patterns associated with the volume of committed
cost as it is accrued for the whole event (from initiation through to
termination). Referring to Figure 7.8 - during the planning phase there is a

low weekly cost accrued over a long period of time (can account for up to
10% of the total direct costs), this is followed by the an increase in the
volume of cost during the build-up stage when the bulk of the pre-shut down
work is carried out (typically about 8% of the total). The event itself
accounts for some 80% of the volume of cost and there is normally a
residual cost (Approximately 2%) involved in the termination of the
Turnaround and the plant start up.
The value
Figure 7.9 shows the same pattern but it is now considered from a point of
view of value rather than volume. The value curve is almost the opposite of
the volume curve because the highest value lies in the decisions that are
taken by the steering group right at the beginning of the planning phase,
when very little money is expended. If the decisions are effective (for
example use of unit pricing for scaffolds) they can minimise costs, whereas
if they are ineffective (just hire gangs of scaffolders) they can add cost to the
Turnaround.
The next highest value is the planning phase. The same principle holds good.
The planning only accounts for 10% of the cost but if it is effective it will
minimise costs and if it is not it will generate wasted time that will drive up
costs.
The third phase is next highest in value because if we get all the necessary
pre-shutdown work completed before the start of the event then that will
simplify and speed up the event itself but, if we do not, then we will be
trying to complete the pre-shutdown work while we were tying to carry out

scheduled work – complicating the event and wasting time (which is

money).
The event itself, which represents the highest volume of cost represents the
lowest point on the value curve because when we start the event the vast
majority of decision have been made and the plans are in place. Also, if
anything goes wrong at this point in time there is no time to recover.
7.7 MODELLING EXPENDITURE

The ultimate payback for all the work that we put into cost mapping is the
generation of an estimating model that helps us to predict, at a very early
stage, how much our Turnaround is going to cost.

Figure 7.10 shows one form of estimating model based on the cost range of
the Turnaround and broken down into key elements. Using this we can find
out the percentage costs of the elements based on an approximate idea of the
cost range. For example if we estimate that the turnaround cost is going to be
in the £2 - £5M range – say £3.5M, then we can read off the percentage
costs of the different elements, e.g. Main contractor costs 35% of the total
(£1.22M). And, from the opposite direction, if we can put a value on one of
the major elements of the Turnaround then we can extrapolate the likely
price of the whole event.

Figure 7.11 shows a different approach. This model is a graphical

representation of the percentage costs of the elements but the range is now in
man-hours rather than money. The model has been smoothed out and was
used over a number of years by a company with a proven accuracy of plus or
minus 6%. The percentages are read off by choosing the likely man-hours
for the event and then reading the coincident percentages off of the graph for
each element.
The above models were refined over a number of years using data form
some thirty Turnarounds. Each time a new set of Turnaround data were

available they would be “plugged into” the model and refine the graph. Early
on the graph oscillated but it later settled down to the figures and the curves
shown.
Caution – remember that, for the purposes of the course, these models are
indicative only. They were created in a particular industry at a particular
time and my not be applicable to other industries at other times, but the
important point is that the model works providing the data that is put into it
is high quality and detailed
The comparison model

This model allows the company to compare not only the planned costs
against the actual costs but also against the cost profile that the model
predicts. Figure 7.12 shows a comparison graph. For example, element two
“Sub-contractors” shows that the actual costs were in line with what the
model predicted but the estimated cost was low. This gives us an indication
that there was probably some fault in the estimate or some unusual
circumstance. Either way we can then investigate that specific element to
expose the reason for the difference.
The more information we have on cost estimating and expenditure patterns

the more control we can exert over how much money is spent and what it is
spent on.

7.8 INCENTIVES
This is a somewhat controversial subject which is why it was left till last.
The controversy is rooted in company culture and specifically in their
attitude towards contractors. The question is:
“When we use contractors should we offer them incentives to

perform or should we expect them to perform for the contract
price”

If the company’s answer is the latter then there is no more to be said. If

however the company favours incentives to perform then some model is
required to calculate the magnitude of the incentive against the effectiveness
of the performance.
Incentives are usually paid for four categories. The level of the contractor’s
safety performance; the quality of work; the number of man-hours expended
and the duration of the event.
Example 7.13 shows a particular type of incentive scheme known as

“reward and penalty”

In order for the incentive to work, the contractor must declare his profit
margin. The contractor puts his profit into a pot and the client matches that
amount. If the contractor betters the incentive target he gets a percentage
reward and if he overruns the target he pays a percentage penalty
The horizontal axis of the graph represents the Turnaround duration in days
in the following manner. If the Turnaround is planned for 21 days and is
completed in 21 days then the achievement is set at Zero and no incentive is
paid. If the event is completed in 20 days then, reading off the graph, the
contractor’s reward would be a 20% increase in profit. If however it is
completed in 22 days then the contractor pays a penalty equal to 20% of his
profit.
Some companies set “reward only” incentive schemes and others try to
enforce “penalty only” regimes.
If the company considers using incentives then it must negotiate very

carefully with the contractor and ensure that both are talking the same
language.

7.9 CONCLUSION
Generally the quality of costing Turnarounds is at a pretty low level. Some
companies never know what their events costs them and others think that
they do but don’t. If we remember that the function of business is to generate
profit then we must also realise that every penny we waste on Turnarounds
comes straight of the bottom line. To avoid this we must first understand
costs and then manipulate them to our advantage, in order to minimise the
price we pay for Turnarounds.

Section 6- Part 8 – SITE LOGISTICS – Shutdown & Turnaround
Contents
8.1 Introduction
8.2 Planning and logistics
8.3 The elements of logistics
8.4 The complexity of logistics
8.5 Marshalling bulkwork
8.6 The plot plan
8.7 Conclusion

8.1 INTRODUCTION
The purpose of Logistics is to organise the procurement, reception, storage
and distribution of all materials, equipment, services and facilities required
to perform a Turnaround.
If we analyse the above statement we can discern an outline process, i.e.
PROCURE > RECEIVE > STORE > DISTRIBUTE
And an outline set of elements that the process acts upon, i.e.
MATERIALS
EQUIPMENT
SERVICES
FACILITIES
In outline, there is not much more to be said about logistics. In outline it is

very simple and straightforward. In Logistics, the devil lies in the detail!
If we think of the organisation of work (specifying, planning, scheduling etc)

as the “Technical Plan” we can think of Logistics as the “Non-technical
Plan”. Both are crucial to the success of the Turnaround.
For instance, it is no use getting the right people to the right place at the
right time with the right information if the material for the job does not turn
up or the tools that have been provided are not fit for purpose.

Much time and effort is put into the technical plan. The non-technical plan
requires the same effort, care and attention if the Turnaround is going to be a
success.
8.2PLANNING AND LOGISTICS

There is a very strong relationship between planning and logistics that must
be implemented and maintained throughout the planning and execution
phases of the Turnaround.
Figure 8.1 demonstrates this relationship. Planning determines what

materials etc. are required. The planner will specify what is required for each
individual task. This information must be transmitted to the people
responsible for logistics. It must be accurate information and it must be
transmitted early enough to allow it to be procured.

Logistics organises the procurement, reception, storage and distribution of

the items and the logistics co-ordinator (whoever he/ she may be) needs to
feed back information on the current disposition (where is it now?) of the
items. This is to alert the planner that the items will be available when they
are required or, in the worst case, knows beforehand that there is a problem
with availability.
8.3THE ELEMENTS OF LOGISTICS

Basically there are three elements in logistics (See figure 8.2) and they are
identified by the following three questions:
Item identification – “What is it?”

At the planning stage, the items required for each task are identified,
specified and the information is transmitted to those responsible for
procurement. At the top of the list in Figure 8.2 the term “Proprietary Items”
refers to items that are bought off the shelf – valves, pumps, motors etc.
Current Disposition – “Where is it?”

If we are going to retain control of the many items that are procured we need
to have some process for identifying where each item is at any given time.
The specific list detailed in Figure 8.2 arose from recording the most
frequently asked questions regarding procured items and was organised into
a logistics process:
ORDER > EXPEDITE > RECEIVE > STORE & PROTECT > ISSUE >
DISPOSE OF

In addition, the need to record the current disposition was identified and
implemented to make logistics an auditable process.
Infrastructure – “How do we organise it?”

During the event we require an infrastructure that will control the storage
and movement of items around the site. We identify where we will locate
everything we need and how and when we will move it to where it needs to
be. The visual means of doing this is to draw up a plot plan and later in this
module we shall review the plot plan in detail

8.4 THE COMPLEXITY OF LOGISTICS

Complexity is the “devil in the detail”. At the detailed level, Logistics is not
as straightforward as it might at first seem and, when you add to this the fact
that it is often the least well organised aspect of the Turnaround, it is not
difficult to see why, in a substantial number of Turnarounds that fail to meet
duration, the root cause is poorly organised Logistics.
Figure 8.3 shows the main factors of complexity in Logistics. Remember

too that all of these factors are intertwined (or, in systems terms,
interconnected). The factors are:

Materials and equipment

These include not only the materials (spares) required to perform the task
but any and all items required to prepare the task. In some industries the
latter may be negligible whereas in others it may be substantial.
Example – in the oil industry a straightforward internal inspection of a

vessel (no spares required at all) may require the application of a dozen or
more “isolation plates” to render the vessel safe for entry. These have to be
specified at the planning stage and organised by the logistics co-ordinator.
Also, in the above example, if the inspection exposed a fault in the sidewall
of the vessel that needs to be repaired, then materials and equipment that
was not in the original plan might be required.
Procurers
Due to timing and other factors, the required items may be procured by a
number of people. Commonly, long delivery items are ordered even before
the planning for the Turnaround commences. Some items will be identified
by the planner and procured via the procurement department. If there are
projects involved in the Turnaround then the items for these are typically
procured by the project engineers. Whatever the source, if logistics is to be
effective, the reception, storage and distribution needs to be organised.
Delivery

Even if long delivery items have been ordered and promised for a certain
date, one cannot merely make the assumption that they will arrive on that
date.
Such items, especially those with a delivery date on or near the start date of
the Turnaround, should be expedited to ensure that they arrive on time. This
is especially true of items that are being manufactured, and even more so if
they are one off special items.
There is also the issue of “free issue” materials. Again, the assumption
cannot be made that they are in the stores. They must be checked to ensure
that there is the correct quantity and that they are fit for purpose.
For a large Turnaround, it is possible that there will be many hundreds of

items being delivered in a relatively short space of time from a large number
of suppliers. All of these must be received on site (if necessary subjected to
goods inward inspection) and stored safely until they are needed
Storage
Once the items are delivered, each must have a designated storage area,
whether it be in the main stores (in which case they need to be clearly
marked as Turnaround items), or in a specially prepared Turnaround store.
Large items may need to be stored in the open air in specially designated
areas. Once in their storage location, they must be protected to ensure that

they are not mishandled, or allowed to deteriorate, to ensure that they are fit
for purpose when they are required.
This brings up the question of who is put in charge of the Turnaround

materials in stores. It is often non-skilled personnel who may understand
how the stores run but are not technically competent to handle some of the
more delicate items.
Example – a 2 meter diameter steel gasket was delivered to the stores in a

flat pack (in order to protect the integrity of the gasket). The problem for the
store man was that it took up more than four square meters of the floor
space in the store and, because it had a label on it which said “do not stand
upright” he could not lean it up against the wall. He solved the floor-space
problem by unpacking the gasket and hanging it up on the wall on a nail.
When the fitter came to withdraw the gasket from the stores he found that
there was a kink in it where it had been hanging on the nail – in order to
solve a stores problem the store man had transformed a very expensive
gasket into a piece of scrap!
Timescale
Different items are required at different times during the Turnaround. Some
are required early on (isolation plates and padlocks etc.), some are required
mid term (spare valves, pumps etc for change out.) and some are required
late on (special plates and gear for pressure testing etc).

All of these items have to be organised so that they can be delivered to the
workplace when they are needed, or before.
Example – on process plants, in the week leading up to the Turnaround,

isolation plates required for the turnaround are batched and fork-lifted to a
location as near to the work site as possible.
Emergent Materials
These have been mentioned before but it must be remembered that the very
fact that materials are required for emergent work means that, in all
probability, they will not be available on site because the work was not
planned for.
This means that they need to be procured on an emergency basis. This can
prove costly, delivery can be difficult due to the short timescale required and
there may be quality issues attached.
For example, if the item turns up on site without its certificate of

conformance – should we use it straight away and run the risk that it is not
fit for purpose, or should we wait until the certificate arrives and waste time.
Heavy plant
The main issue with heavy plant is cost – large cranes can be very expensive
to hire and people tend to overestimate requirements for items such as
welding rectifiers, compressors, generators etc. Also, for diesel driven items
it provision must be made for regular refuelling.

The plant needs to be mobilised early enough so that it is ready when

required – large cranes can take up to three days to erect and test before they
can be used.
At the other end of the event, demobilisation needs to be organised because

it is not unknown for people to protect themselves “just in case something
goes wrong” by holding on to hired plant after the plan says it should have
been demobilised – which may be good for them personally but costs the
company money.
Site clearance
When a Turnaround is completed the site can be very untidy due first top the
amount of work that has been done and second due to the refusal of people
to follow a good housekeeping policy.
The site needs to be cleared of all debris, scrap, spills and contamination
before it is handed back to the plant or production team. Also, any item that
was withdrawn from the stores but not used should be returned to the stores.
The idea behind site clearance is that the plant should be handed back to the
production team in a condition as good as, if not better than, the condition it
was in before the Turnaround started.
Logistics can be organised in two different ways (See Figure 8.4)

The first is the segregated approach where a number of different people

(sometimes a large number) are made responsible for different aspects of
logistics and there is no centralised co-ordination of activities.
This can work on small events and even on medium sized events where there
is a very experienced crew who are used to carrying out the routines without
supervision. However, if the event is large or the crew is inexperienced,
central coordination is vital.

There will still be a number of people performing the logistics activities but
they should report to one person who has overall responsibility for ensuring
that “the right thing gets to the right place at the right time”
8.5MARSHALLING BULKWORK
Bulkwork refers to the many small plant items that need to be repaired or
replaced during the shutdown. The complexity here lies in the numbers
involved and the different ways the individual items are treated.
Figure 8.5 shows a block diagram plot plan for the movement of valves
during the Turnaround. In this particular example the valves are removed
from processing plant and due to the fact that they are contaminated with
product they need to be cleaned before they can either be worked on or
disposed of.

Each valve may be handled in one of three ways (identified in the figure as
A, B and C)
Valve A is a rotational change out where the existing valve is replaced by an

overhauled or new spare and is sent to workshops after the turnaround to be
overhauled so that it can be used as a spare on the next Turnaround.
Valve B will be sent to the workshop to be overhauled during the

Turnaround and re-installed in the plant.
As an example, its path is; remove from plant > transport to cleaning bay >
decontaminate > transport to clean item bay > transport to workshops>
overhaul/ repair and test > transport to overhauled item bay > transport to
plant and reinstall.
Valve C is a valve that has reached the end of its useful life and will
scrapped and replaced by a new valve

On a major turnaround where there could be over 500 valves of various types (control,
isolation, non-return, safety relief etc) some will be changed out, some overhauled and
some repaired. In addition the valves may be sent to a number of different workshops
some of which may be a substantial distance from the plant.
To complicate things further, each valve will have a particular date by which it must be
returned to the plant in order that it can be installed within the duration of the event.
Then, to all of this, add in pumps, electric motors, flow meters, bursting discs, orifice
plates and all of the other items of bulkwork and we can begin the appreciate how
complex organising bulkwork can be.
Bulkwork needs a rational systemised plan to ensure that all of the items involved are
under control at every stage of their journey.
8.6 THE PLOT PLAN

The plot plan is a very useful visual aid for Turnarounds. Most plants have a plan of the
plant that shows all of the main permanent features of the plot. To this is added an
overlay for the Turnaround that shows all of the temporary features that will be installed
on the plant during the event.
Figure 8.6 is an example of a simple plot plan showing the main features of the plant; the
temporary Turnaround features; the location for large cranes; vehicle and pedestrian
routes (these should be segregated where possible for safety reasons); fire assembly
points (FAP) and even the direction of the prevailing wind (very useful information to
have in the event of a toxic release.
The plot plan is used to control the site on a day by day basis. It is also
useful, as part of a safety briefing, to show everyone where everything is –
thus reducing unfamiliarity.

8.7CONCLUSION
Our aim in this short module has been to focus on the critical aspects of
logistics and to try to give a flavour of the complexity involved. Logistics is
not rocket science; it is attention to detail coupled with good coordination
and organisation. If the non-technical plan is effective then it will serve to
support the technical plan and ensure that work is carried out on time with
the right material

Section 6 Part 9 – EXECUTING THE TURNAROUND- Shutdown &
Contents
9.1 Introduction
9.2 The stages of the turnaround
9.3 Delay – the silent gremlin
9.4 The power of routines
9.5 Mechanisms for control
9.6 Starting the plant up
9.7 Recording and reviewing performance
9.8 Conclusion

9.1 INTRODUCTION
In the months and weeks leading up to the Turnaround, all of the planning
and preparation have been focused on ensuring, as far as is possible, that the
event itself goes without a hitch.
Now that the execution stage has arrived, planning and preparation are
largely replaced by organisation and coordination. It is one thing to state
how you are going to execute the Turnaround (talking the talk) it is quite
another to actually do it (walking the walk).
Some people find that implementation is the most difficult part of any
project – this difficulty is multiplied on a Turnaround because of the short
time scale. If something should go wrong there is almost no time to recover
from it.
If duration is critical, everything is done at an increased pace against the

background of performing many tasks in a limited amount of space using a
large number of people. These people come from different organisations
that employ inherently hazardous work processes (welding, grinding,
burning etc) and work in inherently hazardous situations (working at height,
working in confined spaces, and working on equipment that is corroded or
damaged etc.).
Complex as this may seem it is only part of the complexity of a Turnaround.

Many other factors and issues need to be controlled. During the execution of

the Turnaround, as well as executing the work, we are also testing every
aspect of planning and scheduling and any flaws in either will very soon
become apparent when work starts and they will cause problems; for
example if a task takes longer to execute than planned, this not only makes it
more expensive but also has a knock-on effect on the rest of the Turnaround,
delaying the start of some work that depends upon the completion of the
current task and other work that required the resources that have been
delayed.
If the task is on the critical path then duration may be affected and the
manager may be forced to take contingency measures to meet duration, such
as deleting some work from the worklist – and this could lead to reliability
problems when the plant is up and running again.
It is therefore vital that the manager and his team understand not only what
is going on but the nature of turnarounds, so that they can pre-empt
problems that might occur or, if problems do occur, know what the best
course of action will be to resolve them.
At the most basic level this involves understanding stages of a turnaround,

what they comprise of and how they interconnect.
9.2 THE STAGES OF THE TURNAROUND

Figure 9.1 is a graphic representation of the stages of the Turnaround event.
There are three distinct stages, each of which require a different approach
and have their own particular issues. The three boxes in the figure represent
the three stages and the typical activities for each are listed.

The plant shutdown

Basically this consists of turning off plant systems, disposing of any
remaining inventory, cleaning and pacifying the plan and then
installing isolations (electrical or physical) to ensure that the plant is
free from any hazard posed by any source of energy.
This activity is almost exclusively performed by the plant or

production team though they may use members of the Turnaround
team to carry out specific activities under their direction.
If problems arise during the shut-down and time is lost, it immediately

puts the Turnaround team under time pressure and, despite their best
efforts, they may never make the time up and the duration target has
been missed at the very start of the event. For this reason, the
shutdown plan should be as detailed and accurate as the planned work
schedule.
While it is recognised that in some industries “shut-down” may be as
simple as throwing a switch, the example from the chemical industry
is used to demonstrate the main steps in the process of a plan
shutdown. On larger plants the process may last for a week or more.
Scheduled work
During the scheduled work period (sometimes referred to as the
“mechanical duration”) period, all of the planned tasks are carried out
as scheduled by the various members of the Turnaround organisation.

The biggest cost risk during this stage is emergent work – work that
was not planned but only discovered (or emerged) when the plant was
opened up and inspected. In the worst case where the emergent work
happens on a task that is on or near the critical path time may be lost
that can never be made up, and now the risk is to duration as well as
cost.
Plant Start-up
This may be the riskiest stage in the shutdown, for two reasons. The
first is that if there are any delays to the start up (leaks that necessitate
shutting the plant down again in order to fix them, or tasks taking
longer than planned) that time can never be made up because there is
no time left. The other risk is to safety. Whereas the shutdown phase
comprised of reducing flows and energy and pacifying the plant, the
start up comprises of reintroducing inventory and generally activating
the plant. Also, there is usually an amount of testing that goes on
during the start-up and this must be effectively scheduled to prevent
further potential delays.
There are two different ways to organise the phases of a Turnaround.
Segregated
The first is to completely shut down the plant, clean it and isolate it
before handing it over for maintenance. Similarly, at the end of the
scheduled work all work is signed off and all permits withdrawn
before handing the plant back for start up. This is the safest way to do
a Turnaround because there is no interaction between the three stages,

for this reason it is also the easiest to plan, but it leads to a longer
duration and it is the most expensive approach.
Integrated
The second way is to start scheduled work on plant systems as they
become available so that there is an effective overlap between shutting
down work and scheduled work. This is more hazardous because of
the interaction and it requires more complex planning to integrate the
three stages, but it leads to shorter durations and can provide
substantial savings on cost.
The approach used will depend upon company culture. The latter approach
could be regarded as a “Risk based Turnaround”
9.3 DELAY – THE SILENT GREMLIN

Before we start considering the detail of managing the event it is worth
giving some time to considering the subject of delay.
Delay wastes time and costs money but, in many cases it is so insidious that
it is not readily perceived or, if it is, it is regarded as part of the fabric of the
Turnaround. It is not! The vast majority of delays occur because someone
somewhere did not do their job properly.
The other problem with delay is that it not affects the delayed task but
radiates out to affect other jobs and other aspects of the event. It can even
have consequences that reach beyond the Turnaround.

As an example of the above - any task that is dependent upon the completion
of the delayed task will also be delayed (scheduling problem). Also, the next
tasks planned to be carried out by the men working on the delayed job will
also be delayed or will require the procurement of additional resources
(resourcing problem). In the worst case the delay will extend the duration of
the Turnaround (workscope problem) – unless the manager decides to
cancel work to make up the lost time. This may have an impact on plant
performance once it has been brought back on stream due to the failure of
an item of equipment that should have been worked on during the
Turnaround but was not (reliability problem), and this may result in loss of
production (financial problem)
Delay occurs in one of three ways. Something prevents the task from starting
at the appointed time, something interrupts work during the task or
something causes the task to take longer than planned. The worst case is a
combination of all three.
Analysis of delay factors on a Turnaround over a number of years have

revealed that there are many “somethings” that cause delay. The main ones
are detailed in Figure 9.2.
Permits
Most industries require some form of Permit to Work to be issued
before work can start. If the permit system is ineffective due to poor
organisation, then permits will be late and delays will be caused. One
of the issues specific to Turnarounds is that on the first day of work

there may be many permits required and only a limited number of

people who are qualified to issue permits.
Materials
This issue has been dealt with earlier in this section. If the materials
required, or the accompanying documentation are not available when
required due to poor logistic control, the job will be delayed.
Scaffolding
Scaffolding that has to be built during the Turnaround may take
longer than planned due to interaction with other work in the area that
was not foreseen. Also some scaffolds need to be modified during the
task. If this is not built into the plan then delays will be caused.
Unacceptable Hazard
Sometimes when a task is started it is discovered that the hazard
attached to the work is unacceptably high and the job is stopped while
the proper precautions are put in place. This is normally due to faulty
risk assessment at the planning stage.
Inspection
Inspection and radiography have the potential to hold tasks up because
the time taken to perform them can be uncertain and may take longer
than was estimated. Radiography is usually performed when there is
no one on the plant (lunchtimes or quiet hours) the problem here is
that if, for some reason, the slot is missed, radiography may be
delayed until the next slot, during which time the task lies fallow.

Task complexity
If we underestimate the technical complexity of the task it can take
much longer to complete than we planned.
As an example - the worst case in the author’s experience was the

replacement of an agitator shaft in a large vertical mixing vessel on a
processing plant. The planned installation time was 16 hours (and
this was reckoned to be generous), however, the team doing the job
found it impossible to get the shaft properly aligned, although they
tried many times. Eventually, one of the engineers got hold of the
manufacturers handbook and found in it the recommendation that a
new shaft should be fitted by the makers man as it required a special
technique to achieve true alignment (a classic case of “when all else
fails, read the instructions”). The maker’s man was duly called in and
the alignment of the shaft was completed - 6 days late. The mixer was
originally planned to take two days less than the critical path job so
the Turnaround lasted 4 days longer than planned
Emergent work
Emergent work (e.g. an inspection finds a fault in an item that was not
predicted) will cause delay – sometimes major delay, depending upon
the severity of the fault and the complexity of the repair.

For example, if the fault was a crack in a weld in a confined space the
delay could translate into a whole series of activities, the main ones
being:
 Carry out a risk assessment of the new situation

 Change the permit (to cater for grinding and hot work)
 Position fume extractors and air movers in the vessel
 Install grinding and welding gear in the confined space
 Grind out the crack
 NDT the fault to ensure the crack is fully ground out
 Carry out a weld repair
 Radiograph the weld repair
This would take a considerable amount of time that would be

additional to the planned duration of the task.
Technical Queries
If a fault is found on an item of equipment that needs engineering
input before it can be remedied, application must be made (in the form
of a “technical query”) to the technical department to provide the
necessary design or specification data. If provision has not been made
for the technical department to handle such queries as top priority,
then time can be lost awaiting a reply to the query. This problem is
exacerbated if the remedial work constitutes a modification to the
plant item – in this case, a number of signatures may be required from
“responsible persons” and this can take a considerable amount of
time.

Manpower shortages
Where contractors are being used to supply the bulk of the manpower,
the lack of sufficient competent personnel to perform the Turnaround
work can lead to delay. Even when there are sufficient numbers at the
start of the event this does not guarantee that the same number will
still be there at the end. This issue was dealt with in section 6 of this
module.
Ineffective planning
If the task cannot be performed in the manner it was planned or in the
timescale it was planned or at the time it was scheduled, due to poor
planning, delay will occur and time will be lost.
Large changes may be brought about by innovation but, as in the case of

eliminating delay, change can also be brought about by an accumulation of
small incremental changes which individually may not be all that significant
but taken as a whole can produce a significant saving of time and money. No
dramatic action is required.
What is required before the event is accurate specification, calculation and

estimation coupled with attention to detail in planning. What is required in
preparation is the constant use of the question “what could possibly go
wrong with the plan and what action can we take to prevent it” coupled with
the systematic provision of everything needed to ensure that the tasks are
ready in every respect on the day.

What is required during the event is intelligent management and supervision

guided by the principle of single point responsibility to ensure that a) the
work crews are provided with everything they need to perform the work, b)
the work proceeds in the planned sequence with no delays between tasks,
and c) emergent work is effectively dealt with to minimise its impact on the
Turnaround
9.4 THE POWER OF ROUTINE

The dictionary defines the term “Routine” as
“A regular course or procedure, an unvarying performance of

certain acts”
There is power in routine, in doing the same tasks the same way every time
they are done so that people get to know what they are supposed to be doing
and when. This is why a lot of “improvements” fail. They break the routine
and don’t replace it with another routine.
Familiarity
In work (as in many other avenues of life) people like routine and give their
best performance when they are doing something they have been drilled in
and are familiar with. On the other hand, sudden change - doing something
unfamiliar - tends to upset people’s equilibrium and reduce their level of
performance.
The Turnaround manager’s routine

It is part of the task of the Turnaround Manager to provide daily routine for
the Turnaround and the best place to start is with the Turnaround Manager’s
own routine. Everyone else on the event takes their lead from the
Turnaround Manager and if he is seen to be acting in a logical and rational
manner, this will go a long way to keeping everyone else well within their
comfort zone.
The Turnaround manager’s routine is designed to keep a finger on the pulse
of the event. Some managers choose to direct the event “from the office”
and relay on reports from others to aid them in decision making.
On a dynamic project such as a Turnaround where the whole focus of the

event can change within a few hours, the manager’s role needs to be an
active one, he needs to get around the outposts of his event on a daily basis
and talk to key people in their own environment.
The turnaround manager is the only person who has a view of the total
project; everyone else looks at the project from their own perspective.
Example – The event was split into three “areas” with an engineer running
the work in each area. After 10 days the progress on the areas was: Area A
– 36 hours ahead of schedule; Are B – on schedule; Area C – 20 hours
behind schedule. Area A engineer was very pleased with himself but his
pleasure turned to annoyance when the Turnaround Manager said to him
“Tomorrow I want you to transfer all of your fitters and welders onto Area
C for one day to let them catch up with the schedule” The Area C Engineer
was also very annoyed at being publicly “bailed out”. Both engineers were
annoyed because the were looking at the event from their own perspective

but the manager, who was looking at the event as a whole, took the decision
necessary to get Area C ( and the Turnaround) back on track.
Figure 9.3 shows ten critical activities that the manager performs on a daily
basis to keep abreast of the current situation.
Management Meeting
A second routine that pays dividends is the daily meeting between the
Turnaround Manager, Plant or Production Manager and the Engineering or
Technical Manager. They meet to resolve problems and issues that can only
be dealt with at management level. Figure 9.4 shows the types of issues that
are discussed and resolved at such a meeting.
Another benefit of this meeting is that it cement’s a sound working

relationship between the three managers and promotes joint decisions.
The daily control meeting

The most formal routine is the daily Control Meeting chaired by the
Turnaround manager. Figure 9.5 is an example of a daily meeting from the
Oil Industry. It lays out the requirements for such a meeting.
The meeting takes place at the same time each day and is attended by the
same appointed people to review progress, performance and problems
(which are recorded in an action log together with the names of the people
tasked with resolving the problem and a time by which it is to be resolved).

The routine agenda for the meeting requires that each of the key personnel
present a verbal report to the Turnaround Manager who then sums up the
overall situation and delegates activities to specific people. The meeting is of
the “short sharp” type and does not allow discussion of issues – that is not its
purpose.
Issues are discussed and settled outside of the meeting be specified people
and the resolution is presented to a subsequent meeting. Normally the
meeting will last between 20 and 30 minutes.
The Turnaround program

Another useful routine is a daily Turnaround program (or timetable)
detailing the times that specific activities are to take place and those
involved in the activities. Carrying out the same activities at the same time
every day gets people used to the routine and working comfortably within
well defined boundaries. Of course, there is a time and a place for innovation
and creative action but it is not during the execution of a Turnaround if it
upsets the routine to the extent that it endangers the Turnaround objectives.
Routine simplifies work and builds confidence in the team.
Consider this perspective – there are only two types of activity on a

Turnaround, the routine and the unpredicted. If the routine is nailed down,
we have the time to deal with the unpredicted but if the routine is
unpredictable then the unpredicted could become catastrophic!
9.5 MECHANISIMS FOR CONTROL

In Section 5 – Planning, Figure 5.20 introduced the concept of planning the
control of the event. In the control cycle (Plan > Do > Check> Adjust > Plan

>…………), we are dealing here with the “Check” activity. In this case we
set out to measure the performance of a number of key indicators and then
compare them with a pre-set standard, objective or expectation. In order to
rationalise measurement we must ask and answer four key questions:
What is it? – What are we going to measure?
Who does it? - Who are the people who will carry out the
measurement?
When does it get done? - At what time and how regularly do we

measure?
For what purpose? – Why are we taking the measurements?
Figure 9.6 details the main measurements that can be taken during the
Turnaround and briefly answers the four questions. Once again, the choice
of what to measure will depend on company culture. A company that is very
cost conscious will regularly measure its expenditure in detail whereas
another company that is less cost conscious may not carry out any detailed
measurements of costs at all – at the extreme end of this spectrum there are
those companies who do not know what Turnarounds cost them, and never
will. Four of the above examples will be dealt with here.
Using control sheets

Figure 9.7 shows an example of a Bulkwork Control Sheet for Control
Valves. It involves a time based measurement that recorded the progress of
the items through the process of overhaul, from the time they are removed

from the plant until the time they (or replacements) are re-installed in the
plant.
The sheet is useful on two levels. First, as each activity is completed the
person responsible records it so that the current disposition of any individual
valve can be identified. Secondly it can be used as a management tool by
scanning the sheets and looking for “holes” left by activities that have not
been carried out. In a case where there were several hundred valves, this
allows the manager to take in at a glance the total picture but only
concentrate on the “holes” – thus managing by exception.
Updating the schedule

The next important measure concerns the progress of work against the
schedule – especially the critical path task and any others near the critical
path. The control schedule shows the day by day progress required if the
actual work done is to match the plan. It is updated on a daily basis by the
craft supervisors on the job and their reports are converted into data that is
fed into the computer which then updates the schedule. The example shown
in Figure 9.8 demonstrates what can happen in the real world as opposed to
the plan.
The schedule will show how the work is progressing and predict when the
critical path will be completed (and remember, the critical path may change).
However it will not tell us a lot about the mass balance of hours. That is best
done using a run-down graph.
Tracking achieved hours

In the example shown in Figure 9.9, the planned volume of man-hours was
64,000 and the “planned” curve shows the accumulated number of expended
hours planned for each day of the Turnaround. The “achieved” curve shows
the number of hours completed against the plan on a daily basis reported by
the supervisors. In this example the achieved curve is below the planned
curve.
Calculating Productivity
Many companies calculate productivity (P) by dividing the achieved hours
by the planned hours. In this case, at the end of day 11 it would be 40,000
divided by 48,000 = P = 0.83. However, especially in the case where
overtime is being worked or extra man-power has been brought in, the
“booked” hour curve would be greater than planned and the correct method
of measuring productivity would be to divide the achieved hours by the
booked hours – in this case it would be 40,000 divided by 56,000 = P =
0.71, a much lower (and more realistic) productivity figure.
The situation is further complicated by the hours required to complete

emergent work (which was not in the original plan) shown by the “growth”
curve.
In the example shown, the critical path work was completed on time but
another 1.5 days was required to complete the “non-critical” work that
nevertheless had to be completed before the plant could be brought back on
line.
Estimating manpower utilisation

The final control measure in this section concerns a topic that evokes a good
deal of controversy. It is the measurement of manpower utilisation. The
reason for the controversy is that it resembles the old practice of work
measurement “time and motion studies. These were carried out to measure
specific individuals at work (usually to set bonus rates) and caused a great
deal of bad feeling between management and workers in the 1950s and 60s.
Resource utilisation measurement, on the other hand, is directed at mass
measurements rather than individual measurements and is performed to
measure how well the event is being managed and generate a realistic
productivity figure for p-planning purposes.
Figure 9.10 shows a standard resource utilisation figure. Two sets of

measurements are taken on a daily basis and then aggregated for the whole
event. The first measurement is based on the question “how long do the
men, on average, actually spend in the work place and the second
measurement is based on the question “at any given time, how many men in
the workplace a being gainfully employed.
When these two measurements are known and applied to each other, a
productivity figure for the whole event can be generated. In the example the
working day is set out as a vertical column. The allowed times of absence
from site are recorded – 15 minutes at the start of the shift, 15 minute coffee
break mid morning, 30 minute lunch break and 15 minutes at the end of the
shift.
No allowance for an afternoon break was made because the management had
“bought” the break from the unions.

In the actual column is shown the findings of observers who were posted at
places where they had a good view of the comings and goings of the men
and measured the actual time lost (note that there was, in fact, an unofficial
tea-break in the after noon).
The observers also recorded, at mid session, how many of the men in their
line of sight were gainfully employed and how many were standing still
doing nothing – the activity sample.
In this example the men were available, on average for 5.60 hours and the
aggregate active average was 92%, giving effective total hours of 5.15 and a
productivity figure of 71%.
This information was used to adjust the planned timings for tasks to make
them realistic.
It was also used to investigate how the Turnarounds were managed and
define what managers, engineers and supervisors had to do to improve
resource utilisation.
9.6 STARTING THE PLANT UP

At some point in time when the majority of the work has been completed the
large Turnaround organisation is replaced by a much smaller team – the
Start up Team – that is dedicated to getting the plant back on line. If at all
possible, the personnel chosen for the start up team should be given some
time off so that they can come to the start up fresh and focused.

The start up meeting

On the agreed date the daily control meeting is cancelled and replaced by the
start up meeting which is solely focused on getting the plant back on line in
the shortest possible time commensurate with safe working.
Punch listing
Also, at this point, the schedule (being anywhere between 90 and 95%
complete is no longer of any use as a monitoring mechanism so it is also
suspended and replaced by a punch list that consists of every task that has to
be completed before the plant can be brought back on line – as each task is
completed it is “punched off” the list so that, at some point there are no tasks
left – the plant can then be started up. On an integrated start up this would
happen system by system. Figure 9.11 lists the objectives of the start up
team.
9.7 RECORDING AND REVIEWING PROGRESS

When all of the work has been completed and the plant is back on line, it is
time to take stock of actual performance against planned performance by
recording the product of all of the measurements taken during the event.
Figure 9.12 shows an example of a comprehensive performance review
record sheet, covering safety, cost, duration, hours, efficiency and quality
(the normal objectives for a Turnaround) and a space for recording the
critical factors that contributed to actual performance. Once all of this data is
available we can start to measure, in overall terms, how successful the
Turnaround was.
Reviewing turnaround performance

But this is not enough. The Turnaround manager arranges a number of

debriefing meetings to discover the detail behind the “overall” figures.
Figure 9.13 lays out the process for turning the lessons learned form the
event into an action plan for future improvement. The outcome of these
meetings are then formulated into an improvement action plan and the
product of the action plan is fed back to the Turnaround team, fed upward to
the business managers and, most important of all, is fed forward into the
planning for the next Turnaround. In this way we connect each of the
individual Turnarounds (which may be separated by years) into one
continuous process.
9.8 CONCLUSION
Success in Turnarounds, like success in any other walk of life, depends upon
a number of basic requirements. These requirements have been detailed in
this course: Organisation – are the people competent to due the work, are
they properly organised and are they led effectively; Planning - has the work
been specified, controlled, planned and scheduled to achieve it within the
required duration, and cost. Contractors – are they “fit for purpose”
effectively briefed and properly integrated into the organisation. Costs – do
we know how much the event is going to cost and do we have a plan for
controlling expenditure. Logistics – can we guarantee that the right thing
will be in the right place at the right time? And Execution – do we have the
routines and the control measures to allow us to carry out the work in a
logical and rational manner. Finally do we have the strategy and systems to
complete all of this safely and to the desired level of quality?
If the honest answer to all of these questions is YES, then the Turnaround
has the best possible chance of succeeding.


Section 7
Modern Shutdown Philosophies

Modern Shutdown Procedures
Fig 1.7 Stable Domains of Maintenance
Some management executives are guided by Regressive Maintenance
Reactive maintenance concept lies in allowing the machine to operate

till it fails. They prefer to carry out maintenance at this stage and upgrade the
performance.

In Planned maintenance concept, maintenance is planned before

failure , which is estimated from the historical data of the equipment.
In reliability focused maintenance, the reliability of the critical

equipment is evaluated using failure data mean time between failures and
frequency of component / equipment failures. From the outcome of this
finding, the equipment / component is replaced, so that the reliability of the
system improves and maximum production is achieved.
What is reliability ?
Reliability results in
Turn Down Maintenance – Identifying critical

equipments

PAREO ANALYSIS / ABC ANALYSIS

Pareto analysis (sometimes referred to as the 80/20 rule and as ABC
analysis) is a method of classifying items, events, or activities according to
their relative importance. It is frequently used in inventory management
where it is used to classify stock items into groups based on the total annual
expenditure for, or total stockholding cost of, each item. Organizations can
concentrate more detailed attention on the high value / important items.
Pareto analysis is used to arrive at this prioritization.
Taking inventory as an example, the first step in the analysis is to
identify those criteria which make a significant level of control important for
any item. Two possible factors are the usage rate for an item and its unit
value.
Close control is more important for fast moving items with a high unit
value. Conversely, for slow moving, low unit value items the cost of the
stock control system may exceed the benefits to be gained and simple
methods of control should be substituted. These two factors can be
multiplied to give the annual requirement value (ARV) - the total value of
the annual usage.
If the stock items are then listed in descending order of ARV, the most
important items will appear at the top of the list. If the cumulative ARV is
then plotted against number of items then a graph known as a Pareto curve is
obtained.
The precise shape of a Pareto curve will differ for any analysis but the
broad shape remains similar - following 'the 80/20 rule'. Vilfredo Pareto was

a 19th century economist who observed that 80% of Italy's wealth was
owned by 20% of the population.
In this case, typically, the first 20% of items in the list will account for
approximately 80% of cumulative ARV. For a company with a stock list of
1,000 different items this means that paying more attention to the top 200

items (with a sophisticated stock control system) will give close control of
about 80% of total stock investment.
The next, say, 40% of items, will, typically, account for a further 15%
of cumulative ARV. These can be subject to less precise control methods.
The last 40% of (low value of low usage) items then account for a
mere 5% of ARV and can be controlled with a simple system.
The alternative term ABC analysis stems from

the fact that the first 20% of important items are known as Category A
items, the next, typically 40% are Category B items and the relatively
unimportant, though larger in number, 40% are Category C items.
Other examples
Control of travel costs : again, typically, 20% of journeys will account
for 80% of total travel costs - and should be closely monitored and
controlled.
Quality control :
Failure modes can be prioritized depending on their impact on a system's
performance.
Notes:-
9. Pump or compressor seal blow-out
12. Flare pilot failure

13. Fire
14. Tube rupture in fired equipment
15. Toxic gas release
16. Major leak
17. Spills
18. Sewer explosion
19. Run-away reaction
Process Computer Control Training
1. Introduction to digital computer control

concepts
a) Data collection system
b) Data retrieval system
c) Supervisory control
d) Direct digital control
e) Advanced control techniques
2. Digital control vs. analog control
a) Hardware
b) Software
3. Instruction in micro processor based instrumentation

4. Optimization of the plant
4.3 Progress monitoring and control.
Students will be given an example of a machinery report and will be asked to give an
explanation of what has happened to the machinery.
Example 1
A Cooling Water pump was found shut down, on examination, it was found that the rotor
shaft coupling was broken. What could have caused the damage? Give two reasons.
No. 1………………..………………………………………………………
No. 2…..……………………………………………………………………
Example 2
On a reciprocating compressor it was noticed that the second stage was

overheating. Give a reason why this should happen.
………………………………………………………………………………
Example 3
The vibration on a Cooling Water Fan suddenly increased and some noise
was heard that seemed irregular, what was happening to the fan, and what
would be the consequences if left running.
………………………………………………………………………………
………………………………………………………………………………

Example 4
A reciprocating Fire Water pump was out of service for maintenance, when the
maintenance was completed, the pump was handed back to operations and re-energized.
During the nightshift the pump started for no reason. When the operator was sent to shut
it down, he found that the pump had stopped and that one of the pistons had broken
through the crank casing. Give a reason why this particular incident could have
happened.
4.1 Group discussion on Earned Value Analysis.
Students will discuss what values they have learned from the lessons in the course, what
way they can be improved, highlight what parts of the course they had difficulty in
understanding and how the course could be improved.

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Managing – Commissioning – Start-Up- Shutdown

Managing Commissioning – Start-Up -Shutdown

Prepared By JMW-Training Purposes Only 1

Managing Efficient Commissioning- Start-Up-Shutdown-Troubleshooting

Section1:-Introduction and preparation

 Typical Start up Team Organization

 Plant Start Up sequence

 Plant Start Up Safety Issues

Start Up & Initial Operating Testing

Start Up Safety ~ Step by Step Procedure

Start Up, Commissioning & Control

Overview of Gas Processing Plant –

Process Shutdown – Part-1

Prepared By JMW-Training Purposes Only 2

 Stage 4- Designing the Organization

Process Shutdown –Part 2

 Stage 5- Planning & Scheduling

Modern Shutdown Management

Prepared By JMW-Training Purposes Only 3

1.0 Introduction and Preparation- Commissioning

1.1 Introduction to Process Plant commissioning and start-up including a

1.2 Organization & Roles

1.3 Supplementary Topics

1.4 Cost Estimation including practical exercises in assessing cost

1.5 Spare parts planning, including exercises in planning and managing a

1.1 Introduction to process Plant commissioning and Start-Up

The commissioning, or initial startup, is a period when the plant is particularly at

(1) Organization and personnel:

Prepared By JMW-Training Purposes Only 4

(10) Commissioning problems:

It is important to follow correct procedures in starting up new and overhauled

It is important to have meetings with the Instrument, Mechanical and Operations

1.2 Organization and Roles

It is important to organize the commissioning thoroughly and to provide the

Prepared By JMW-Training Purposes Only 5

It is essential that management allocate sufficient resources to do the job

1.2.1 The Commissioning Manager

Responsibility for the commissioning should rest with a single individual: A

It is necessary that the commissioning manager should be able to command the

The Commissioning Manager reports to:

The preparation of Technical Documents such as Plans, Schedules, Manuals,

Prepared By JMW-Training Purposes Only 6

Technical decisions and re-commendations made at HAZOP Studies, P&ID

Execution of project duties by direction and supervision of operating personnel

Safe execution of all work under his control.

Problem Solving & Decision Making:

The position requires extensive knowledge of process plant commissioning and

Technical & Academic Requirements:

Minimum 15 years technical experience in the petroleum/petrochemical industry

Prepared By JMW-Training Purposes Only 7

Skilled in the preparation of technical manuals, documents and procedures and

Must be able to supervise and motivate others through effective leadership.

1.2.2 The Commissioning Team

1.2.3 Commissioning Specialists

1.3 Supplementary Topics

1.3.1 Commissioning Planning

Prepared By JMW-Training Purposes Only 8

Since plant commissioning is a major undertaking, it needs to be organized

1.3.2 Planning and scheduling

Plant commissioning requires the coordination of a large number of activities

Prepared By JMW-Training Purposes Only 9

The scheduling of the commissioning may be done as a separate exercise. An