Copyright© 2008 all right reserved 1 Establish an Effective Turnaround Management Process World-Class Future Vision

Copyright© 2008 all right reserved 2 Introduction 1999 – 2004 Maintenance Management Consulting - Venezuela 1985 – 1995 Routine Maintenance Planner / Turnaround Planner 1978 – 1985 Industrial Maintenance Instrumentation / Electrician  1995 Incorporated Lister Management Inc.  2003 Published “Successful Change Management” Developed Turnaround / Routine Maintenance Training Materials Present Maintenance Consulting Delta / Jacobs Catalytic - Alberta Petro-Canada - Alberta Gulf – Indonesia Hibernia – Newfoundland Sable Offshore – Nova Scotia Husky – Alberta Suncor - Alberta Instruct Workshop Seminars Calgary Houston Edmonton Sarnia New Orleans Venezuela New Brunswick  2008 Established STO Navigator™

Copyright© 2008 all right reserved 3 Overview The Change Management Model™ How-to, identify improvement opportunities How-to, develop a defined process How-to, successfully implement best-practices The Turnaround Management Model, process-on-flow Support resources and associated responsibilities Proven results – a case-study of enhanced turnaround performance Workshop Agenda

Copyright© 2008 all right reserved 4 Overview Contracting Planning Execution Safety Materials Technical Engineering Logistics Project Cost Controls Scheduling Effective Turnaround Management is dependent on performance from all Functional Areas and Stakeholder Departments Your collective-knowledge, materials and management tools need a home Your Turnaround Manager is a Driver, not a Chauffeur, she needs a roadmap, even though she’s not afraid to ask for directions Accurate project status in real-time - good, bad, under or over, you need to know where you are, where you should be, and where you are going! Administration / Resources Process Operations Workscope Optimization Capital Work Routine Maintenance

Copyright© 2008 all right reserved 5 Overview Where are we going? Where are we? Where should we be?

Copyright© 2008 all right reserved 6 Benefits of Establishing an Effective Turnaround Management Process Controllable Definable Assignable Measurable – therefore, improvable Consistency – in an every-changing human resource and software environment Corporate Owned – policies and procedures

Copyright© 2008 all right reserved 7 Workshop Focus for Effective Turnaround Management Performance Management Change Management Project Management

Copyright© 2008 all right reserved 8 Turnaround Management Focus Execution Planning Management

Copyright© 2008 all right reserved 9 Turnaround Performance Recognition (Performance) Responsibility Accountability

Copyright© 2008 all right reserved 10 Design Identify The Change Management Model™ PLANNING PHASE Establishment Methodology Roll-out Orientation and Training Continuous Improvement Control and Coaching DEVELOPMENT PHASE IMPLEMENATION PHASE MANAGEMENT PHASE CHANGE MANAGEMENT PROCESS MODEL™

Copyright© 2008 all right reserved 11 Successful Change Management Requirements Case for Change VisionSkillsIncentivesResourcesMethodology Status Quo Results VisionSkillsIncentivesResourcesMethodology Case for Change Confusion SkillsIncentivesResourcesMethodology Case for Change Anxious VisionIncentivesResourcesMethodology Case for Change Moderate Change VisionSkillsResourcesMethodology Case for Change Frustration VisionSkillsIncentivesMethodology Case for Change VisionSkillsIncentivesResources False Start

Copyright© 2008 all right reserved 12 How-to, identify improvement opportunities Control Identify Manage Learned Opportunities Turnaround Closure Reports Assessments

Copyright© 2008 all right reserved 13 Turnaround Management Process assessment results Program Development Business Needs T/A Identification Goals & Objectives Management Plan Work Scope Identification Work list Development Work Scope Approval Planned Job Packages Closure Criteria Report Resources Management Execution Management Follow-up & Update Change Management Control Report Criteria Work Closure Continuous Improvement Data Management 0% 100% 80% 60% 40% 20% 10% 80% = World Class 45.3% = Assessment 68% = Average

Copyright© 2008 all right reserved 14 Ability to Influence Performance TURNAROUND PROJECT DURATION FINISH LOW PERFORMANCE INFLUENCE FACTOR HIGH START ASSET MANAGEMENT STRATEGIES 21% WORK IDENTIFICATION 14% WORK PLANNING 10% SCHEDULING PROCESS 20% EXECUTION PROCESS 13% UPDATE AND CONTROL PROCESS 12% CLOSURE PROCESS 8% LEARNED OPORTUNITIES 2% 100% 25% 50% 75%

Copyright© 2008 all right reserved 15 Management Methodology Control Define Assign Objectives Goals Strategies

Copyright© 2008 all right reserved 16 How-to, develop a defined process Guidelines and Procedures Workflow Diagram Reference Manual

Copyright© 2008 all right reserved 17 Management Methodology Define the Process Institutionalize the Process Implement the Process Workflow Process Implementation Plan Orientate Employees Training: 4Fundamentals 4Guidelines 4Tools Coaching “on the job” Promote Champions Activities Execute Work Management using the Defined Process Control Expected Results Continue Improving Assess to verify if Process is: 4Understood 4Implemented 4Effective KPI´s-Improving Trends Learned Opportunities WFER’s Guidelines

Copyright© 2008 all right reserved 18 Change Improvement Project Phase 1: Work Scheduling, Logistic, Historical Review, Management Meetings Assessment Development and Gap Determination Processes Development and Implementation Plan Definition Processes Implementation and Early Gain Processes Follow Up and Institutionalize Continuous Improvement JFMAMJJASONDJFMAMJJASONDJFMAMJJASOND Phase 2: Phase 3: Phase 4: Phase 5: Phase 6:

Copyright© 2008 all right reserved 19 Four Phases Thirteen Process Elements Flowchart Design and Activity / Event Mapping Work Flow Event References (WFER’s) Associated Best-practice Guidelines and Procedures Accessible though Corporate Intranet Basis for Training / Reference Revised through Continuous Improvement The Turnaround Management Model, process-on-flow

Copyright© 2008 all right reserved 20 The Turnaround Management Model, process on flow STRATEGIC PLANNING PHASE Worklist Management WORKSCOPE DEVELOPMENT PHASE EXECUTION PHASE CLOSURE PHASE TURNAROUND MANAGEMENT PROCESS MODEL™ Strategic Planning Plan Planning Process Scheduling Process Contracting Process Materials Management Strategy Status and Update Execution Change Management Learned Opportunities Close-out Report

Copyright© 2008 all right reserved 21 Turnaround Management Key Elements 4Information Consolidation File Structure 4Standards & Codes System Development 4Equipment Library Development 4Database Implantation 4Define Access & Security of Data 4Worklist Electronic System 4Worklist Optimization Philosophy 4Approval & Prioritizing Processes Establishment 4Define Goals & Objectives 4Project Culture Development 4Milestone Event Schedule 4Responsibilities Matrix 4Define, Assign & Control Methodology Establishment 4Development Strategies & Plans By Functional Area 4Adequately Assign Resources 4Assign Turnaround Leaders 4Using Activities Planning Parameters 4Planned Job Packages Development 4Specify Scheduling Details 4Control Report Standardization 4Information Handbook 4Specialists Contracting Classification 4Ensure Contractor Involvement 4Technical Specifications 4Technical Specification Review By all Departments Involved 4Technical Support to Execution Group 4Status & Update Culture Implementation 4Apply Strategies of Execution By Phase 4Establishing Workscope Change Management Culture 4Critique Meeting Methodology 4Learned Opportunities & Best Practices Identification 4Define Continuous Improvement Plan DATA MANAGEMENT STRATEGIC PLANNING PLANNING & SCHEDULING EXECUTION & STATUS WORK IDENTIFICATION MANAGEMENT STRATEGIES CONTRACTING CLOSURE PROCESS

Copyright© 2008 all right reserved 22 Turnaround Management Process Phases Planning Resources Planned Job Package Execution Strategies Operation Strategies Work Execution Program Report Structure Update & Follow Up Strategy Strategy Planning Management Plan Execution Plan Execution Communications Plan Cost Collection Plan Planning & Scheduling Plan Inspection / QA / QC Plan Administration Plan SHE Plan Materials Plan Logistics Plan Continuous Improvement Plan Change Management Plan Business Needs Risk/Cost/Benefit Scope Approval Goals & Objectives Responsibilities Matrix Turnaround Organization Work Breakdown Structure Milestone Event Schedule Mobilization Pre-Turnaround Scope Feed Out Turnaround Scope Start Up Post Turnaround Scope Demobilization Closure Next Turnaround

Copyright© 2008 all right reserved 23 Stakeholder integration for enhanced performance Maintenance Operations Technical Planning Materials Technical Execution Administration Operations Contracting Safety Management Scheduling KPI’s 100 % InputOutput InputOutput InputOutput InputOutput InputOutputInputOutput InputOutput InputOutput Input Routine Turnaround Projects

Copyright© 2008 all right reserved 24 Workshop Exercise Planning Materials Technical Execution Administration Operations Contracting Safety Management Scheduling KPI’s 100 % InputOutput InputOutput InputOutput InputOutput InputOutputInputOutput InputOutput InputOutput Input Worklists Workscope Technical Data Safety Data Contracting Data Operations Blind Lists Special Procedures Planned Job Packages Material Requirements Services / Equipment / Tools Resource Requirements Potential Work Logistics Cost Estimates Permitting Design (map) the Materials Management Stakeholder Department key activities in workflow process style List input criteria requirements List output deliverables Determine milestones and activity durations

Copyright© 2008 all right reserved 25 Functional department integration for enhanced performance Planning Materials Technical Execution Administration Operations Contracting Safety Management Scheduling KPI’s 100 % InputOutput InputOutput InputOutput InputOutput InputOutputInputOutput InputOutput InputOutput Input Worklists Workscope Technical Data Safety Data Contracting Data Operations Blind Lists Special Procedures Planned Job Packages Material Requirements Services / Equipment / Tools Resource Requirements Potential Work Logistics Cost Estimates Permitting All Functional Departments are inter-dependent Each department is responsible to execute established activities and events as mapped out on the Turnaround Management Process and Project Milestone Schedule Input data and information is required for timely and accurate output

Copyright© 2008 all right reserved 26 Turnaround Management Process management tools and techniques Weekly Project Management Status and Update Meeting Responsibility Matrix Project Milestone Events Schedule

Copyright© 2008 all right reserved 27 Turnaround Management Process – Project Management 90 Days 0 Worklist Items Facility Teamwork (Strategic Planning) 6 Months Cut Off Date 4-2 Months WORK SCOPE DEVELOPMENT (Planning & Scheduling) Contracting T/A 8-4 Weeks 2 Weeks Closure Pre T/A Post T/A Initial Work List Feed-OutFeed - In Added - Extra – Canceled Work Normal Work 1 Month Contractor Integration Milestone Worklist Items Approval Normal Work Late Work 6 Months Teamwork Assign

Copyright© 2008 all right reserved 28 Position Titles Roles and Responsibilities (Workflow Activities) Qualification, Certification and Training Requirements Contract versus In-house Responsibility Matrix Activity / Task Identification (Milestone Schedule) Best-practice Guidelines and Procedures Accountability – Weekly Project Management Meeting Project Management Software Resource performance assessments, daily, weekly, based on activity completion – quantity and quality Support resources and associated responsibilities

Copyright© 2008 all right reserved 29 Turnaround management with teamwork & communication strategy FACILITY MANAGEMENT PLANNING & SCHEDULING Operations Technical Execution Contracting Materials Safety Engineering Turnaround Project Status Key Performance Reports

Copyright© 2008 all right reserved 30 Planner Competencies and Profiles Senior Planner / Scheduler Junior Planner / Clerical Intermediate / Field Planner Field Planning Materials Requisitions Execution Strategy Report Creation Execution Updates Execution Resource for Operations / Technical and Execution Supervision Document Control Data Entry Report Generation Planned Job Package Development Construct Coffee Master Plan & Schedule Cost / Schedule Optimization Meeting Facilitator Execution Re-scheduling Resource Management and Control Schedule Analysis Management Resource for Project Controls

Copyright© 2008 all right reserved 31 How-to, successfully implement best-practices Change Management Methodology Control Assign Define Coaching Orientation Training Implementation and Training Plan

Copyright© 2008 all right reserved 32 Implementation Plan ASSET MANAGEMENT PLAN PERSONNEL Planners Executors Maintenance Operators Technical SYSTEMS SAP Project Knowledge Community P3 TECHNICAL ASSISTANCE Consulting Facilitators ELEMENTS Processes Guidelines WFER´s OBJECTIVES A) Management Implementation Milestone Event Schedule Worklist Planned Job Packages Execution Technology Closure Process B) People Development Training Coaching C) Cultural Acceptation Elements Acceptation Visual Profits Potential Profits INDICATORS A)% Compliance% Compliance B)Number of People TrainedNumber of People Trained C)Acceptance LevelAcceptance Level D)Cost Decrease LevelCost Decrease Level X Processes & Guidelines Orientation X Management Orientation X Training & Coaching l X Areas Assessment X Process Implementation X Pilot Project X ISO 9000 Certification ACTIONSSTATUS

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Copyright© 2008 all right reserved 34 Change Improvement Project – M3P Assess Turnaround Management Process – 2000/2001 Develop Turnaround Management Process – 2001/2002 Implement Turnaround Management Process and associated Management Templates and Tools Flexi-Coker Turnaround 2002 Amuay Refinery, Paraguana, Venezuela Key Performance Indicators / Targets Safety Quality Duration / Schedule Cost Process Availability Proven results – a case-study of enhanced turnaround performance

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Copyright© 2008 all right reserved 36 Proven results – a case-study of enhanced turnaround performance Flexi-Coker Turnaround, Amuay Refinery, Paraguana, Venezuela 600,000+ Barrels / Day Production Historical Duration Comparison Days % 4 MM$ of Benefit by Early Start-up Year

Copyright© 2008 all right reserved 37 Proven results – a case-study of enhanced turnaround performance Flexi-Coker Turnaround, Amuay Refinery, Paraguana, Venezuela 600,000+ Barrels / Day Production Historical Safety Comparison - 57 %

Copyright© 2008 all right reserved 38 Proven results – a case-study of enhanced turnaround performance Flexi-Coker Turnaround, Amuay Refinery, Paraguana, Venezuela 600,000+ Barrels / Day Production Historical Cost Comparison % Cost in Bolivars Year

Copyright© 2008 all right reserved 39 Defined Turnaround Management Process Orientation / Training / Coaching Best-practice Guidelines Best-practice Procedures World-class Planning & Scheduling Software Incentive Based Contracting Strategies Reasons for successful target completion

Copyright© 2008 all right reserved 40 Turnaround Performance 25% 50% 75% 100% Maintainability Process Availability Asset Reliability Key Performance Indicators Process Availability = % ThroughputProcess Availability = % Throughput Asset Reliability = CostAsset Reliability = Cost Maintainability =Maintainability = Safety Safety Quality Quality Man-hours Man-hours Indirects Indirects Materials Materials Schedule Schedule