Cases

Case 1: Strategy makes the difference?

Case 2: Leuna TA world class?

Case 3: Likens a TA an Everest expedition?

Case 4: Real life example

Case 1:

Strategy makes the difference?

June 2002, SPX was commissioned to audit the preplanning and preparations for the Turn Around (TA) 2004 project of Shell DEA Heide refinery in Northern Germany. At SPX’s headquarters Sittard, the Netherlands, SPX proprietary questionnaires, and tools were tuned towards clients requisition and specific audit goals. On site, SPX consultants audited with “Cold Eyes” in approximately 20 Q&A sessions, with a cross section of the TA staff involved, the status quo of the project.

The fact that an owner, 2 years in advance of executing a Turn Around, invites an independent auditor to evaluate the project is clearly an example of “Best in Class” strategic planning. Of course, in this example, we are not entitled to elaborate on the results of the audit but we like to share our methodology with you.

SPX uses its OARA® (Observe, Analyze, Recommend, Act) auditing technique to balance the Q&A sessions and to feedback its findings and recommendations not only to Refinery Management but to all interviewed staff.
By adopting transparency in scanning and analyzing strengths, weaknesses, opportunities, and threads in the TA project, the pace is set for improvements and team building. SPX consulting practice typically sees owners repeat these audits on a regular basis as part of their strategic plan, to close the loop in every stage of the project.

An initial audit at the start of the TA project will be followed by:
• Set the Value Added Work List (prune the job list / incomplete scope of work)
• Check on Readiness (all planning steps taken)
• “Go – No Go” for Execution (all execution partners aligned)
• Lessons Learned (what went well vs. what went wrong)
• Benchmark (where do you stand vs. the competition)

If a client is interested to have a second opinion or “Cold Eyes” on all, or on just one of these stages, SPX will be happy to execute such an assignment. We invite you to get in touch with one of our experts.

Email: john.mooren@spx.nl

Case 2:

Leuna TA world class?

Early 2001 SPX was selected amongst a number of consultancy firms to assist the project management of the new German MIDER refinery at Leuna in its mission to execute a world class Turn Around in 2002. The refinery was built in the late nineties as part of the Leuna-2000 project, and for most of the refinery units, it was the first statutory (TüV) inspection ever. These units were amongst others Primary Distillation, Vacuum Breaking, Fluidised Cat Cracker, Hydrogenation, and Sulphur Recovery etc.

In first instance the Turn Around project was set up as kind of EPC project with only one Main Contractor. This model is often seen in the USA but does not find much appreciation and support in European Turn Around projects. Consequently, the model of establishing an owners Turn Around project management team with “Unit Contractors” for executing some 250.000 planned direct man-hours was set up. This “Block Strategy Model” as SPX calls it, requires the management of scope and job preparation, material requisitioning and ordering, selection of contractors and making reservations for contractor management, supervision and craftsman, developing shut down and start up planning etc. by the owner.

The overall project management was in hands of the Leuna refinery management and steering committee.
Contract Management, Quality Assurance, Safety Planning, Contractor Guidance and Control including cost management of “add-ons” were tasks of the independent SPX experts in the owner’s team.

The TA execution phase started by the end of August and was successfully completed mid October 2002. SPX expert staff, in key positions in the preparation, planning and execution phase of this TA project did help the Leuna project to become a success. “Something to be real proud of!” as one of SPX site staff members recalls. “A real World Class Turn Around project, on time and within budget!”

Since company market entry SPX experts have been involved in several “virgin” Turn Arounds.
In “virgin Turn Around ”cases there is no “TA-memory”. You have to build strategy, team, methods, best practices, and procedures, scope, planning, contractor selection etc. from scratch.

If you are being confronted with the first ever TA on your site or if you would also like to execute World Class Turn Arounds feel free to talk to some of our professionals at SPX. We invite you to get in touch with one of our experts.

Email: john.mooren@spx.nl

Case 3:

Likens a TA an Everest expedition?

Methanor at the AkzoNobel chemical park in the province of Groningen, the Netherlands, commissioned SPX in the spring of 2002 to manage the Turn Aound project of its M#2 methanol plant.
This project combined three separate sub-projects:
1) The statutory inspection stop,
2) The execution of a PRIME capex project,
3) The execution of a control room and DCS revamp.
Every sub project was managed by a separate project team under the umbrella of the overall TA-management team reporting to the steering committee.

The execution strategy was to keep the TA execution period as short as practically possible. Product demand was strong and the marketing planning window for the TA was set for half October / end of November 2002. In August many activities started already on site and equipment, piping, steel structures, package units, E&I cabling etc. were installed in a running plant environment under high alert safety supervision.

After the scheduled shutdown of the plant, Contractors and inspection teams started with their jobs and the revamp commenced. In a 24/7 schedule, the team progressed more than 100.000 man-hours on site.
“Not everything went smooth,” reflects the TA-manager, one of SPX’s senior consultants. “We encountered quite some difficulties! A fall gale with hurricane force and results of inspections in some of the boilers set us back several days on our early completion schedule. Moreover, the revamp of one of the furnaces was complicated due to the limited working space available and high alloy steels to be welded”. He continues: “In parallel to top sports, the project looked like a Mount Everest expedition. We prepared the team well in advance, but when the execution phase has been started, you have to continue to work and to improvise the best as you can, to control the damage, to cope with stress and exhaustion, weather and wind etc. Finally, when you set foot on the top, the most difficult part of the expedition starts: to descent and bring back alive the entire team to the base camp.
We have made it!
All TA-activities were executed without Lost Time Injuries and the plant was brought back into operation”.

If you have multiple projects to integrate and execute in your Turn Around and you would like to learn from our experience dealing with such complex projects, we invite you to get in touch with one of our experts.

Email: john.mooren@spx.nl

Case 4:

Real life example

Client:
European Petrochemical Production Company.
Ethylene Plant production capacity > 500.000 t/a. Replacement value > 500.000.000 EURO.

Task1:
Develop a work process and implement a so called "Cold Eyes Review" on the Scope Definition of a Steam cracker Shutdown / Turnaround in order to optimize the Scope of Work.

Data:

Task 2:
Provide Turn Around management consultancy services, inclusive seconding SPX experts in the owners project team, to manage “on name and behalf of” the client the preparation and execution phases of the TA with the ambition to complete a Word Class Turn Around.

Data:

The SPX consultants developed a customized Project eXecution Plan PXP, set up the organisation with SPX consultants in key roles, guided and controlled the preparation, contracting and execution of the TurnAround.
The turn around was a great success, on schedule and within the budget. No lost time injuries. Schedule reduction from 5 weeks prime to prime to 4 weeks enabling the plant to operate 7 days longer before the plant was actually shut down.
By appointing SPX experts in the drivers seat marketing gained EURO 5.000.000 in additional revenues.

Conclusions:

Turn Around projects can be executed by the maintenance organisation of a client. Technical expertise is most of the time available no doubt. Setting however aggressive but realistic targets is more difficult because this is not the “nature” of the maintainers. Execution of a large scope of work, every body wants to have a gold plated revision, within a time frame with a lot of slack and a high budget, 5-10% of replacement value, is often seen in the business, especially when the product is doing extremely well in the marketplace and revenues are high.
For more challenging and “Value Added” execution of Turn Arounds you need looking for consultants. If a client is interested to have its Turn Around project scope valued by independent consultants and / or to look at the possibility of hidden slack in your TA-schedule and to set a sound TA execution planning base get in tough with one of our experts.

Email: john.mooren@spx.nl

References

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