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BASF´s MODEL of EXCELLENCE for TURNAROUND SCOPE MANAGEMENT

BASF´s MODEL of EXCELLENCE for TURNAROUND SCOPE MANAGEMENT. Raúl Sánchez Martín BASF SE. Scope Management. Raúl Sánchez on duty. More than 15 years experience at BASF in Europe (Spain – Belgium – Germany) in Capital Projects, Maintenance & TAR Management

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BASF´s MODEL of EXCELLENCE for TURNAROUND SCOPE MANAGEMENT

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  1. BASF´s MODEL of EXCELLENCE for TURNAROUND SCOPE MANAGEMENT Raúl Sánchez Martín BASF SE

  2. Scope Management Raúl Sánchez on duty More than 15 years experience at BASF in Europe (Spain – Belgium – Germany) in Capital Projects, Maintenance & TAR Management Since 2009 harmonizing Turnaround Management Process at BASF

  3. Scope Management BASF at a glance • BASF is the world´s leading Chemical Company • Offers intelligent system solutions and high-value products for almost all industries • The unique Verbund concept is key to our strategy • Petrochemicals are the heart of the Verbund • Their major role is to provide reliable and secure supply for the most important value chains of BASF • Products used in all BASF divisions apart from Oil&Gas 3

  4. Scope Management BASF at a glance 4

  5. Scope Management BASF´s Verbund principle • BASF is the world´s leading Chemical Company • Offers intelligent system solutions and high-value products for almost all industries • The unique Verbund concept is key to our strategy • Petrochemicals are the heart of the Verbund • Their major role is to provide reliable and secure supply for the most important value chains of BASF • Products used in all BASF divisions apart from Oil&Gas 5

  6. Scope Management “They pump in natural gas, oil and salt at one end, make everything and the byproducts are recycled. There is very little actual waste.” The Times, Nov. 1998 BASF´s Verbund principle 6

  7. BASF´s Scope Management process Turnaround scope management types Key to improve: Ownership Common mistakes & other challenges Scope Management Presentation focus 7

  8. Scope Management The Matrix Columns: 6 TAR Phases Rows: 10 TAR Themes Strategic Planning Conceptual Planning Basic Planning Detail Planning Execution Post-SD Fundamentals Scope Mgmt Plan Scope Criteria Scope Collection Scope Dev. Scope Synchr. Scope Challenge Scope Freeze Scope Change Mgmt SD Scope Mgmt Remaining Work Scope Management >100 Items Scheduling Cost Management EHS-Q Management Kick-Off Meeting Milestone Plan Scope Freeze Detail Work Planning and many more... Organization Communication & Meetings Logistics Procurement Work Execution 8 8 8 TAR@CP INTERN

  9. Scope Management BASF´s Scope management process 9

  10. Scope Management Scope criteria Unacceptable environmental impact Unacceptable safety impact Unacceptable reliability impact Unacceptable financial impact if not performed 10

  11. Scope Management ScopeCollection Scope Owner Scope list format & responsible Standard for Scope description Preliminary Scope list 11

  12. Scope Management Scope Development & Challenge Scope Overview & Benchmark Scope items classification Validity of defined Scope criteria Check mandatory Scope Justify non-mandatory Scope Scope Challenge results Documentation Scope Challenge Meetings for Scope discussions Scope evolution Experience & best practices Techniques to optimize Scope Master Scope list 12

  13. Scope Management Scope Freeze Date depending on Scope Type 8 to 12 months in advance It is frozen but still alive 13

  14. Scope Management Scope Change Management Late Scope, Additional Repairs and Discovery Work Balance: flexibility and control Different authorization levels Scope Change ≠ Change Order Agility: Crash Team 14

  15. Scope Management BASF´s Scope Management process CHANGE MGMT CRITERIA SCOP SCO SC S SCOPE FREEZE COLLECTION CHALLENGE 15

  16. Scope Management Turnaround Scope management types 16

  17. Scope Management “I want it all” 17

  18. Scope Management “One vision” 18

  19. Scope Management “Under pressure” 19

  20. Scope Management “We will rock you” 20

  21. Scope Management “We are the champions” 21

  22. Scope Management But, are we the champions? 22

  23. Scope Management And what about you? 1. Scope Criteria approved and communicated? 2. Clear definition of how detailed the scope should be to allow the planners to know what to do? 3. Method to challenge in a open and objective way in accordance with approved criteria? 4. Early Scope Freeze to enable the work preparation to be completed in due time? 5. Procedure to add scope during execution: late scope, discovery work, additional repairs? 23

  24. Scope Management Key to improve: Ownership 24

  25. Scope Management Scope Owner 25

  26. Scope Management Wrong IN the scope Right IN the scope Wrong OUT the scope • … Evaluating Risks Right OUT the scope SCOPE 26

  27. Scope Management Risk Assessment Matrix 27

  28. Scope Management Scope Change Gatekeeper 28

  29. Scope Management Scope Change Management 29

  30. Scope Management Scope Changes Impact Decreasing Opportunity Planning Execution Opportunity to add value Increasing Cost Cost to Change 30

  31. Scope Management Common mistakes & other challenges 31

  32. Scope Management Pre-SD Scope Overflow 32

  33. Scope Management Uncontrolled Project Scope 33

  34. Scope Management Improvisation paradox 34

  35. Scope Management Communication breakdowns 35

  36. Scope Management In a nutshell… 36

  37. Scope Management … don´t forget that CHANGE MGMT CRITERIA SCOP SCO SC S SCOPE FREEZE COLLECTION CHALLENGE 37

  38. Scope Management … and to 38

  39. Scope Management Any questions? 39

  40. Scope Management Thanks for your kind attention 40

  41. Raúl Sánchez Martín BASF SE raul.sanchez-martin@basf.com

  42. Scope Management Some very good references and other stuff 42

  43. Scope Management Biblio, Video & Audiography To read: Turnaround Shutdown and Outage Management, Tom Lenahan, Elsevier, 2006 Managing Maintenance Shutdowns and Outages, Joel Levitt, Industrial Press, 2004 World-Class Turnaround Management, A.Bobby Singh, Everest Press, 2000 Proven turnaround practices, R. J. MOTYLENSKI, Hydrocarbon Processing, April 2003 To watch: http://www.youtube.com/watch?v=3ID21iNB_UM http://www.napofilm.net/en/napos-films/napoepisode?filmid=id_napo_film_14 To listen: I want it all (1989, The Miracle, written & produced by Queen) One vision (1985, A Kind of Magic , written & produced by Queen) Under pressure (1981, Hot Space, written & produced by Queen & D.Bowie) We will rock you (1977, News of the World, written by B.May, produced by Queen) We are the champions (1977, News of the World, written by F.Mercury, produced by Queen, assisted by M.Stone) 43

  44. Scope Management Image´s sources Raúl Sánchez BASF - The Chemical Company BASF - The Chemical Company BASF - The Chemical Company BASF - The Chemical Company Alexis O’Connor (Flickr - Creative Commons) Patrick Hoesly (Flickr - Creative Commons) Estampa Tamarindo pfctdayelise (Flickr - Creative Commons) Estampa Tamarindo roblisameehan (Flickr - Creative Commons) Estampa Tamarindo richard winchell (Flickr - Creative Commons) Estampa Tamarindo MinilmalistPhotography101.com (Flickr - Creative Commons) Estampa Tamarindo MP Bumsted, Biocultural Science & Management (Creative Commons) Estampa Tamarindo Dricker94 (Flickr - Creative Commons) Estampa Tamarindo Queen (www.queenonline.com) BluEyedA73 (Flickr - Creative Commons) migothlaundry (Flickr - Creative Commons) robert van der Steeg (Flickr - Creative Commons) 44

  45. Scope Management Image´s sources • Sam Beebe / Ecotrust (Flickr - Creative Commons) • zimpenfish (Flickr - Creative Commons) • Iiz west (Flickr - Creative Commons) • www.nba.com/mavericks/playoffs/2011_nba_finals_champions.html • Raúl Sánchez • Johnathan Nightingale (Flickr - Creative Commons) • Brenda Clarke (Flickr - Creative Commons) • BASF - The Chemical Company • Estampa Tamarindo • Raúl Sánchez • Christian Köberl (Flickr - Creative Commons) • Raúl Sánchez • El Bibliomata (Flickr - Creative Commons) • Nicu Buculei (Flickr - Creative Commons) • The National Guard (Flickr - Creative Commons) • Technoloic (Flickr - Creative Commons) • http://darmano.typepad.com/ • http://www.napofilm.net/en/ • Steffen Zahn (Flickr - Creative Commons) • Estampa Tamarindo • A.Ruesga (Flickr - Creative Commons) • Colin Kinner (Flickr - Creative Commons) • Tambako The Jaguar (Flickr - Creative Commons) • Herry Lawford (Flickr - Creative Commons) 45

  46. Raúl Sánchez Martín BASF SE raul.sanchez-martin@basf.com

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