Operations Turnaround Leadership and Integrated Turnaround Planning

1. Operations Turnaround Leadership and Integrated Turnaround Planning A. Bobby Singh, President Project Assurance, Houston, Texas

2. Presentation Focus • Importance of Operations Turnaround Leadership • Recent Case Studies • Common Operations Pitfalls • Work Scope Development and Management • Integrated Turnaround Plans • Operations Turnaround Excellence - Solutions

3. What is World-Class?Clues and SignsWhen a Company is NOT Managing World-Class Turnarounds Achieving World-Class Turnarounds

4. TOP TEN LISTWhen a Company is NOT Managing World-Class Turnarounds Contractor Alignment and Team Building Sessions are conducted after the turnaround completion. Achieving World-Class Turnarounds 10

5. TOP TEN LISTWhen a Company is NOT Managing World-Class Turnarounds Turnaround scheduling staff are frustrated due to the planning software’s limitation to schedule only 1,000,000 activities. Achieving World-Class Turnarounds 9

6. TOP TEN LISTWhen a Company is NOT Managing World-Class Turnarounds When operations adds more work scope in the first week of the turnaround than what they identified in 12 months before the turnaround. Achieving World-Class Turnarounds 8

7. TOP TEN LISTWhen a Company is NOT Managing World-Class Turnarounds Expedited and long-lead materials are found under contractors’ trailers after the turnaround completion. Achieving World-Class Turnarounds 7

8. TOP TEN LISTWhen a Company is NOT Managing World-Class Turnarounds Sole criteria for selecting qualified contractors is the number of their memberships to golf clubs, burlesque bars and invitations to hunting and fishing trips. Achieving World-Class Turnarounds 6

9. TOP TEN LISTWhen a Company is NOT Managing World-Class Turnarounds Planning, Inspection and Safety staff are laid off to save turnaround costs and improve bottom-line profits. Achieving World-Class Turnarounds 5

10. TOP TEN LISTWhen a Company is NOT Managing World-Class Turnarounds WBS, MOC, PSSR and HAZOP are perceived as the new Cable TV Channels on the information super-highway. Achieving World-Class Turnarounds 4

11. TOP TEN LISTWhen a Company is NOT Managing World-Class Turnarounds Company’s turnaround vision, goals and KPI’s are written by professional speech writers. Achieving World-Class Turnarounds 3

12. TOP TEN LISTWhen a Company is NOT Managing World-Class Turnarounds Progress status, schedule updates and cost forecasts are performed by local psychics, astrologers and tarot card readers. Achieving World-Class Turnarounds 2

13. TOP TEN LISTWhen a Company is NOT Managing World-Class Turnarounds When a Turnaround Manager saysthat he has not read Bobby Singh’s latest book World-Class Turnaround Management. Achieving World-Class Turnarounds 1

14. Units shutdown and turnover took 18 days vs a plan for 10 days Shutdown Sequence of units changed during turnaround Different groups had separate blind lists for same work Inexperienced operators needed directions during shutdown Two chemical cleaning contractors with conflicting plans Operations shift schedule different than the maintenance Recent Turnaround ResultsOperations Performance

15. 35-40% work scope growth after freeze date Budget and work scope conflicts LOTO conflicts and excessive permit delays Shutdown and start-up timelines not fully defined Operations had limited resources to support planning Departments working in silos with conflicting agendas Turnaround Capability AssessmentDisturbing Results

16. Operations Pitfalls • Poor communication between different departments • Operations inability to assign qualified staff • LOTO requirement are more complex during implementation • Constantly changing blind lists • Shortage of experienced operators • Operations not fully accountable for the turnaround budget

17. Operations Pitfalls • Working from different turnaround work lists • Operations planning group working in isolation • Operations execution group not familiar with shutdown plans • Shutdown sequence not synchronized with critical path • Operations activities not included in turnaround schedule • Operations shutdown plans not resource optimized • Operations plans are invariably optimistic

18. In 3 out of 4 turnarounds the turnarounds teams did not have sufficient operations staff to plan the turnaround.

19. We have met the enemy and the Enemy is us.

20. Turnaround Work Scope • Establish a Work Scope Leadership Team to develop work scope. Assign an Executive Sponsor • Each work scope request should be critically reviewed, prioritized and work details fully defined • Turnaround work scope (80% +) should be identified at least 15-18 months before the turnaround • Develop contingency plans for potential work scope additions based on equipment history and inspections • Inspection recommendations and work scope growth should be critically reviewed before approval for execution

21. Success of a turnaround is directly proportional to the early and active participation by operations’ dedicated and qualified staff to support the turnaround planning process.

22. Operations Turnaround Excellence Solutions Turnaround Team Leadership should be shared by a senior operations person from the plant

23. Operations Turnaround Excellence Solutions • Get full time, dedicated, experienced and senior operations staff to lead the operations’ turnaround planning effort: • Get staffing commitment from plant management • Clearly establish the job responsibilities of all key operations positions and ensure right staff is assigned

24. Operations Turnaround Excellence Solutions Improve team communication by locating the Area Turnaround Teams and all participating departments and their staff in the same work area.

25. Operations Turnaround Excellence Solutions Training of operators in the operations shutdown and start-up plans should be spread over 2-3 months prior to the turnaround.

26. Operations Turnaround Excellence Solutions Facilitate several Turnaround Dry Runs so that all participants can demonstrate their full understanding of execution plans and resource requirements for the safe and planned shutdown and start-up of units.

27. Operations Turnaround Excellence Solutions Assign Operations Manager as an Executive Sponsor to guide all activities related to operations planning and execution

28. Integrated Turnaround Plans Solutions Establish shutdown and start-up sequence by units, operating systems and sub systems which fully supports the turnaround critical path.

29. Integrated Turnaround Plans Solutions • Jointly develop integrated turnaround schedule with all operations shutdown and start-up activities: • Decide the level of activities and sequence early • Do not expect operations to be P-6 experts

30. Integrated Turnaround Plans Solutions Unit clearing / decontamination execution plans and their field requirements are clearly established at least 6-9 months before the turnaround.

31. Integrated Turnaround Plans Solutions Complete turnaround plans / schedules that includes operations activities at least 3 months prior to the start of the turnaround. Share Optimize Rehearse and Implement

32. Question and Answers A. Bobby Singh Project Assurance, Houston, Texas excel@projectassurance.com