1. 1 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Presentation Agenda Day One Introduction and Course Objectives The Turnaround Management Process and KPI’s Workscope Optimization and Risk/Cost Benefit Analysis Planning / Scheduling Presentation - Planning / Scheduling Pitfalls Establishing the Turnaround Team Creating a Budget

2. 2 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages STO Navigator™ Vision Our vision is to be the paramount source of world-class project management tools and services for Shutdowns, Turnarounds and Outages… Mission Our mission is to enjoy a mutually supportive and profitable relationship with our clients… Implementation Training Coaching Project Excellence

3. 3 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Workshop-Seminar Course Objectives Objective The objective of this workshop-seminar is to transfer our expert level knowledge of turnaround management best-practices to you to significantly reduce the risk of executing complex projects Vision Safely and reliably operate a production or manufacturing facility for [a pre-determined] run duration Mission Plan, Manage and Control all aspects of the Turnaround Project following a defined Turnaround Management Process to meet or exceed the established Key Performance Targets Resource Management Cost Management Schedule Management Project Controls

4. 4 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages The Asset Management Model The focus of this presentation is here in the Operating and Maintaining Phase associated with facility outage turnarounds Facility Outage Turnarounds are one of the largest expenditures risks in the oil and gas production and manufacturing sectors The opportunity to improve asset and resource performance here is tremendous

5. 5 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Data Management Hazard Identification Determine Consequence Risk Assessment Document Learn, Plan Determine Failure Frequency Risk-Based Program The AMT (Asset Management) Team A partnership between the Leaders of three, equally important, Stakeholder Departments with Risk Management at the root Technical (Inspection/Engineering) Operations, and, Maintenance The AMT will form the Turnaround Management Team The AMT will approve and prioritize all work orders and work list items The AMT will be responsible for establishing the budgets required for OPEX and TAEX

6. 6 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages The Turnaround Management Process

7. 7 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Work Management Work Management Process Work = execution of defined activities to accomplish something Grown-ups invented work so they could keep playing together Resource = source of energy or commodity required to execute defined activities Finances People Equipment Spare parts Tools Materials Procedures Business Management Work Management Resource Management Performance Excellence

8. 8 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Work Management Work Management Process Work = Effectiveness Determine ‘what to work on’ Resource = Efficiency Determine ‘how’, ‘when’, and ‘who’ to execute the work Don’t manage people – manage work Use a defined work order management system to manage work activities based on priority and resource capacity planning Control Processes, procedures, policies, guidelines, tools input output Customer -Satisfaction -Timing -Quality you – or – supplier -Information quality -Information timing -Data management activity result ?task

9. 9 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages The Turnaround Management Process

10. 10 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages 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 6% UPDATE AND CONTROL PROCESS 12% CLOSURE PROCESS 8% LEARNED OPORTUNITIES 9% 100% 25% 50% 75% Ability to Influence Performance

11. 11 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages 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 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 The Turnaround Management Process

12. 12 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages The Turnaround Management Plan Overview A Turnaround Management Plan is a high-level process that leads the management of all turnaround activities The Turnaround Management Plan spans the three stages of the turnaround project Planning Execution Closure Each stage of the Turnaround Management Plan is supported by eight modules Risk Cost Benefit Analysis Turnaround Strategy Plan Worklist Management Materials Management Work Package Planning Scheduling Contracting Resource Management

13. 13 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Planning Stage ClosureExecution Stage 18171615141312111098765432103691215181234 Turnaround Management Plan Planning Execution Closure Planning Schedule – Months / WeeksExecution Schedule – Days / Shifts Turnaround Strategy Plan (Safety, Operations, Execution, Inspection, Logistics, Cost) Scheduling Worklist Management Materials Management Resource ManagementContracting Work Package Planning Risk Cost Benefit Analysis Worklist Cut-off Date ____________Feed-out Date ____________ 3 Stages 8 Modules

14. 14 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Measurable – therefore, improvable Consistency – in an ever-changing human resource and software environment Corporate Owned – policies and procedures Implementing a Turnaround Management Process

15. 15 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Design Identify PLANNING PHASE Establishment Methodology Roll-out Orientation and Training Continuous Improvement Control and Coaching DEVELOPMENT PHASE IMPLEMENATION PHASE MANAGEMENT PHASE CHANGE MANAGEMENT PROCESS MODEL™ Successful Change Management Model ™

16. 16 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Successful Change Management Requirements

17. 17 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Key Performance Indicators Key Performance Targets Safety / EnvironmentZero (nothing hits the ground) Budget Based on direct planned wrench-hours and indirect cost estimates) Schedule Duration Based on the longest job or series of jobs with zero float QualityZero rework, zero leaks Worker Performance5.5 hours of direct wrench-time in a 10 hour shift

18. 18 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages The success of any project is based on the ability to measure performance in real-time What to measure is determined by the project team The key indicators for facility and unit outages are generally identified as: Establish a Vision for each project (purpose, reason, benefit and risk of executing the project) Establish a Mission for each project (the outcome of the project itself) Establish Key Performance Indicators for every project Safety / Environment (responsible care) Cost Outage Duration Quality Worker Performance Establish Goals, Objectives and Strategies for each Key Performance Indicator (it does no good to say you’re going to do something and not have goals, objectives or strategies in place to indicate how you intend to meet or exceed them) Key Performance Indicators

19. 19 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Key Performance Indicators must be established by the Project Leaders Team and agreed to by the Project Core Team or Steering Committee Key Performance Indicators must have realistic targets (don’t pretend you’re going to get 5.5 hours of direct wrench-time when the entire industry is measuring 3.5) Communicate all project performance statements, indicators and targets to everyone involved in the project (this includes contractors) During project execution update each Key Performance Indicator daily with current data to measure performance, trend and forecast outcomes, take corrective action and offer recognition Key Performance Indicators

20. 20 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Questions Why are projects coming in over budget? Why are project commissioning dates being delays? What priority would you put on the Key Performance Indicators? What is the average direct wrench-time in Alberta on Turnaround Projects? What are the best direct wrench-time you can achieve in a 10 hour shift? Why is wrench-time so low? What can be done about it? Key Performance Indicators

21. 21 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Priorities 1 – Safety / Environment 2 – Quality 2 – Worker Performance 3 – Schedule 3 – Cost If you focus on Safety, Quality and Worker Performance – Schedule and Cost will take care of themselves Key Performance Indicators

22. 22 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Wrench-time availability on a 10 hour shift 7:00 – 7:15 – Safety Meeting 7:17 – 7:30 – Travel to work location, sign-on to permit 9:30 – 9:45 – Coffee Break 12:00 – 1:00 – Lunch 3:00 – 3;15 – Coffee Break 5:00 – 5:30 – Clean up, travel to transportation location Total time not directly working on the wrenches = 2 hours Is this realistic? Key Performance Indicators

23. 23 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Only work that requires a loss of production, or may create an unstable, high risk condition should be considered as outage worklist items Only work that supports the vision of a safe and reliable plant for a pre- determined run length should be considered as outage worklist items (it would be nice to install all new valves, however, if they don’t pose a threat to the vision, they can wait Inspection must determine the regulator worklist items with probability of Found Work A formalized risk matrix must be used by the Asset Management Team to review all worklist items to determine in/out of turnaround Maintenance work orders that need to be executed during an outage are still maintenance items… they should be planned and included as OPEX The Worklist Cut-off Date should coincide with the Initial Budget… following the Worklist Cut-off Date all worklist items need to be risk assessed and cost estimated for approval Workscope Optimization

24. 24 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Risk Matrix Risk/Cost Benefit Analysis

25. 25 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages CONSEQUENCE PROBABILITYLOWMEDIUMHIGHVERY HIGH 3211 HIGH3221 MEDIUM3322 LOW3333 WO Priority Code 3:Normal Priority - Weekly Planning WO Priority Code 2:Urgent Priority - Next Day WO Priority Code 1:Critical Priority - Today Work Order Priority: Probability and Consequence Matrix

26. 26 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages LOSS CATEGORYFREQUENCY (PROBABILITY)CONSEQUENCE (Consider MTBF & MTTR for the Asset) LOW Significant probability that it will not occur within 1 month Safety – Minor Injury Production Loss < 05 Hrs/Yr MEDIUM Significant probability that it will occur in less than 1 month Safety – Medical Treatment / Restricted Duty Production Loss = 05 - 2 Hrs/Yr HIGH Significant probability that it will occur in less than 1 week Safety – Lost Time Production Loss = 2 - 24 Hrs/Yr VERY HIGH Significant probability that it will occur in less than 24 hours Safety – Fatality or harm to Public sector Production Loss > 24 Hrs/Yr Work Order Priority: assessing the criticality of Work Orders and carrying them out accordingly Work Order Priority Management

27. 27 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages PRIORITYDEFINITIONTARGET PRIORITY 1 (CRITICAL) Work Type (Unscheduled Corrective Maintenance) (Do Today) Immediate Loss of Production or SHE Incident  Loss of asset availability causing production loss  Hazardous safety condition  Condition that seriously affects the environment 5% of total Maintenance Man-hours PRIORITY 2 (URGENT) Work Type (Scheduled Corrective Maintenance) (Do Tomorrow) Potential Loss of Production or SHE Incident  Potential loss of asset availability that will cause production loss  Potential hazardous safety or environmental condition 15% of total Maintenance Man-hours PRIORITY 3 (NORMAL) Work Type (Scheduled Preventive and Corrective Maintenance and Standing Work Orders) (Weekly Planning) No Loss of Production or SHE Incident  Corrective work that does not have a significant impact on production availability  No hazardous safety or environmental impact  Scheduled based on Start Date and resource availability (Backlog Management) 80% of total Maintenance Man-hours Work Order Priority Code Definitions and Targets

28. 28 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Worklist Management and Optimization 102 – Work Package Flow Chart Worklist 2006 Management Bruce G. Empac Work Request Work Order Customer Phone/Radio Personal Risk/Cost Benefit Analysis Status Routine Cancel Yes Defer No Worklist 2010 Management Bruce G. Cut-off Date Nov 1, 2007 Planner Estimate Develop Work Package Estimate Accepted ? Yes No Coordinator Electronic File Work Package Filing Coordinator Update Work Package Status Planning Team Complete Work Package Cover Sheets & File Planning Team Gather Stakeholder Data / Info Yes Lead Planner Enter Estimate into WO Lead Planner Create Work Orders if Required Coordinator Approve Work Packages with Signatures Work Package Approved ? Yes No Administration Copy Work Package into Field Binders 4 Weeks Prior to Decommissioning June 10, 2008

29. 29 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Workscope Optimization / Worklist Management Tool Worklist Management Tool Work is approved and controlled by authorized users Notes are added to establish scope of work for each line item (Task)

30. 30 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Planning / Scheduling The Planning and Scheduling Function Planning and Scheduling is a function, not a position The person responsible for the Planning and Scheduling function must not only be knowledgeable and experienced in each function, they must have sufficient authority to ensure compliance Traditionally, the function of Planning and Scheduling was given to a, so called, Planner/Scheduler There is no certified position as Planner/Scheduler, no institute or means of certification Therefore, qualification is difficult to achieve In the absence of certification and qualification a position does not enjoy the authority, respect or compensation necessary to perform at an excellence level

31. 31 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Planning / Scheduling Planning versus Strategic Planning Planning Planning is the establishment of activities that need to be executed based on a defined task Strategic Planning Strategic Planning is the determination of activities that might need to be managed based on ‘what-if’ Strategic Planning relies on the ability to determine probability and consequence The Turnaround Readiness Assessment must be conducted in a way that allows the Auditor to assess strategies, not just plans Planning Risk Analysis Strategy

32. 32 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Planning / Scheduling Planning versus Scheduling Planning Planning consists of breaking down a task into a network of logical and executable activities with estimates for duration and resources Always use benchmark estimates… don’t pad man-hours or factor in friction time, i.e., travel, permits, meetings, lunch, etc. Scheduling Scheduling is a technique used to program the scheduling software to establish a dynamic plan (sometimes referred to as programming) Always apply productivity factors prior to scheduling the plan Coordinating Coordinating is a field responsibility where activities, equipment and resources are managed to execute the planned activities scheduled for each shift, i.e., forklift, safety equipment, pickers, etc.

33. 33 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Planning / Scheduling Planning versus Strategic Planning – Contactor Tower Planning - Task – Clean and Inspect – 48 hours Activities Blind, Clean, Open, Vent, Inspect, Close, Deblind Strategic Planning – Task – Clean and Inspect – 68 hours Activities Blind, Clean, More Cleaning, More Cleaning, Open, Vent, More Venting, Pick Up Tray Pieces, Install Lighting, Install Internal Scaffolding, Cut Bolts, Order Tray Parts, Inspect, Make Repairs, Re-inspect, Resurface Man- ways, Replace New Gaskets That Got Damaged, etc… Remember! It’s the ‘What-ifs’ of strategic planning that determine the readiness for action…

34. 34 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Best-Practices – Planning Strategic Planning is established by the Core Team during the Milestone Schedule project phase Detailed Planning begins following the approval of the Worklist Items and the Workscope / Budget has been defined (Worklist Cut-off Date) Planners / Schedulers are assigned to manage Work Packages Field Planners are assigned to estimate activities, durations and resources Each stakeholder department lead (Core Team Member) is responsible to ensure their input into the Work Packages is completed Work Packages are managed and tracked using the Worklist Management Tool Presentation – Planning / Scheduling

35. 35 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Planning / Scheduling Plans Typically Breakdown (fall-apart, change, run-amuck) 4 hours into the shutdown (in the absence of a well-defined shutdown plan) In the absence of detailed job planning When developed in isolation (ie, by Planning, as opposed to Planning, Operations and Execution) In the absence of a daily shift report When 3 day look-ahead shift reports are issued When activities are not properly statused and updated (lack of communication between Planning, Execution and Operations) When schedules are rigid and not dynamic and flexible In the absence of effective project management skills In the absence of buy-in by contractors or stakeholders When scheduling software is under, or over, utilized When Planners/Schedulers are viewed by the rest of the organization as non-essential, overpaid, a waste of time, useless, etc…etc… When extra or added work is identified (scope growth)

36. 36 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages This is a Plan, not a Schedule Planning / Scheduling

37. 37 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Planning / Scheduling What does the Turnaround Team expect from the schedule? Ability to Manage Pre-Scheduled and Post-Turnaround Activities Independently Perform Extensive Turnaround Simulations Immediate Response to Changing Conditions Capable of Integrating Workscope Additions and Deletions in Real-time Improved Resource Utilization – wrench-time Realistic, Specific Shift Reports Schedule Workforce, Tools, Materials, Permits “Drive The Turnaround vs Monitor The Turnaround”

38. 38 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Scheduling Methodology by Phase

39. 39 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages 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 and Schedule Cost / Schedule Optimization Meeting Facilitator Execution Re-scheduling Resource Management and Control Schedule Analysis Management Resource for Project Controls Planner Competencies and Profiles Planning / Scheduling

40. 40 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages What constitutes a Turnaround Team? Asset Management Team (Leaders Team) Accountable to Senior Management to meet Key Performance Targets Part-time commitment Assigns Project Manager Project Manager (Turnaround Manager) Accountable to Asset Management Team Core Team (Steering Committee) Accountable to Project Manager (Turnaround Manager) to meet Milestone Schedule Targets Stakeholder Department Leads Part-time commitment Planning Team (Project Controls) Accountable to the Lead Planner (Stakeholder Department Lead) Responsible for planning, scheduling and project controls Full-time commitment with support from Operations and Technical Establishing the Turnaround Team

41. 41 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Establishing the Turnaround Team Best-Practice Turnaround Management Organization

42. 42 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Establishing the Turnaround Team Communication

43. 43 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages The Asset Management Team is responsible for establishing budgets for day-to-day operations, maintenance repair and overhaul, process outage shutdowns and unit / facility turnarounds in a five year plan format Facilities Engineering is responsible for establishing budgets for CAPEX projects (including indirect support / resources) The Leaders Team (Senior Management) is accountable for the budgets The turnaround budget is comprised of OPEX, TA and CAPEX commitments The turnaround budget will be established, modified and frozen during various phases of the turnaround management process Five Year Plan Asset Integrity Process Integrity Turnaround Kick-off (18 months prior to feed-out / aligned with Cut-off Date / contingency added for Late Work – 20% including indirects) Planned Maintenance Work Orders Inspection Worklist Process Cleaning / Filters / Catalyst Indirects Purchase Orders Creating a Budget

44. 44 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Working Budget During Worklist Management and Planning Process Work is cancelled or added to the Worklist (Late Work) Found work considerations are planned into the work package Budget fluxuates +/- Control Budget Two weeks prior to Feed-out 10 percent contingency for New Work Budget is frozen as the Key Performance Indicator (Cost) Target The Control Budget is determined by: Planned / estimated direct wrench-hours Purchase orders Materials Indirects (based on percentage of man-hours, or fixed price) Safety Scaffolding Supervision Administration Mobilization Accommodations / Trailers / Washrooms, etc Creating a Budget

45. 45 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Budget Matrix including Indirect Percentages Creating a Budget

46. 46 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Workscope and Budget Calculator The Workscope and Budget Calculator can assist with establishing the Initial Budget Categorize work Regulatory Asset Integrity Process Integrity Number of assets By type Benchmark man-hours Estimate indirects Estimate materials Determine Planning Resources Determine amount of time required to prepare Planned Job Packages prior to Feed-out

47. 47 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Workscope and Budget Calculator

48. 48 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Presentation Agenda Day Two Worklist Management and Control (Late Work Cut-off) Managing the Milestone Schedule Managing Planning Resources Presentation (Terrance Trail) – Venezuela Establishing Contracts

49. 49 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Best-Practices Worklist Items should be managed in conjunction with the Work Order system There can only be one Worklist (not multiple copies of Excel Spreadsheets or reports) Use a controlled and protected Worklist Management Tool Assign assess to no more than three people to manage the Worklist Worklist Management and Control (Late Work Cut-off)

50. 50 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Worklist Management and Control (Late Work Cut-off) Worklist Management Tool Work is managed by category, classification, type of work, status, etc Worklist is controlled by authorized users only

51. 51 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Managing the Milestone Schedule Best-Practices A Milestone Schedule must be established by the Project Manager (Turnaround Manager) immediately following the establishment of the Initial Budget A Responsibilities Matrix must be used to determine the assignment of Milestone Schedule activities to the Core Team Members A weekly project management meeting must be established where members of the Core Team meet for one hour to review their assignments and update Milestone Schedule activities The Milestone Schedule activities must support all the activities identified on the Turnaround Readiness Assessment Tool The Milestone Schedule must be updated weekly and progressed to demonstrate performance and trending The Milestone Schedule weekly meeting must be attended by each member of the Core Team (or Alternate) Failure to show up for two consecutive meetings means you’re off the team

52. 52 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Weekly Project Management Status and Update Meeting Responsibility Matrix Project Milestone Events Schedule Managing the Milestone Schedule Project Management – Planning Milestone Schedule

53. 53 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Managing the Milestone Schedule Weekly Meeting Preparation and Agenda Each member of the Steering Committee (Core Team) is issued a controlled binder with the appropriate tabs which correspond to the electronic filing system Binders are audited monthly to ensure all documents and revisions are up to date Every strategy and plan document created must have a file-path and revision number before being passed out at each meeting and filed in the Core Team Binders in the appropriate section Use encouraging ideas like the one below to ensure Core Team Members and their department personnel review the binder documents on a regular basis

54. 54 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Managing the Milestone Schedule Weekly Meeting Preparation and Agenda – continued All Strategy and Plan documents are added to the Orientation and Training Program Guide Agenda (1 hour weekly meeting) Attendance (sign-in, verify everyone has their binder) Review scope of work/number of planned job packages/worklist items Update Milestone Schedule activity status for each Core Team Member Establish corrective action session for any Core Team Member who does not complete their assigned activity as scheduled (you can’t keep putting 5% and pushing off the date) Review Milestone Schedule status and re-schedule activities as required Distribute completed Strategy and Plan documents to all Core Team Members Schedule Strategy Workshop meetings Identify issues and concerns (schedule resolution meetings) Adjourn meeting

55. 55 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Strategic Planning Phase Worklist/Planning Phase Execution Phase Milestone Schedule (Project Management – update weekly) Execution Schedule (Turnaround Management – update each shift) Milestone Schedule / Execution Schedule

56. 56 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Managing Planning Resources Planned Job Package Development Program Tool

57. 57 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Best-Practices A Lead Planner must occupy a chair on the Core Team (Steering Committee) The Lead Planner is accountable for the control of Planned Job Packages The Lead Planner develops a Planning Team which consists of: Field estimators (all disciplines as required) Schedulers Project Controls administration personnel Logistics personnel The Lead Planner is responsible to ensure all Work Packages are reviewed by Inspection, Safety, Operations and Contractors as required Managing Planning Resources

58. 58 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Planned Job Package Status Graph Work Package Completion is tracked on a weekly basis using the data from the Worklist Planning Tool and the Status Graph Managing Planning Resources

59. 59 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Best-Practices Assign the Field Planning Role to experienced craftspersons with supervisory experience Assign Field Planners by Work Breakdown Structure, i.e., Area, Unit Field Planners will be responsible for the completion of the Planned Job Packages assigned to them Use a standard Field Planning Form Establish each Field Planner as an Execution Coordinator for their assigned Area, Unit during the Execution Phase of the Turnaround Consider using and independent Scaffolding Planner Track the progress of each Planned Job Package on the Worklist Tool and progress status weekly Complete all Planned Job Packages one month prior to Feed-out Have Field Planners assist with establishing the Execution Organization Chart Managing Planning Resources

60. 60 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Best-Practices - continued Use Planning Tags for each Worklist Item and hang them as close to the work location as possible Provide Field Planners with labour support one month prior to Feed-out to prepare laydown areas, hang blinds, Operations support, temporary lines, drains, etc. Establish night-shift Field Planner/Execution Coordinators Allow Execution Coordinators to overlap shifts, i.e., 13 hour shift schedule Managing Planning Resources Planning Tag

61. 61 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Turnaround Management Implementation Project Forth largest oil producer Project consisted of: Establishing best-practice strategies for Turnaround Management Implementation through training and coaching Establishing Equipment Network Libraries Assisting with Turnaround Execution Significant improvement were recognized in: Reduced risk (Workscope Optimization) Increased Worker Performance Quality Schedule Duration Most significant factors: Dynamic Schedule Management Methodology Detailed Planning and Estimating (Work Packages) Tools SAP Primavera / CASP Presentation - Venezuela

62. 62 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Establishing Contracts Establishing contract parameters and scope of work Attachment ‘A’ Provides a list of typical services that are required during a turnaround, what contract type may be appropriate, who typically issues the contract for services (Prime Contractor or Owner) and who should manage the day-to-day activities of the service provider Attachment ‘B’ Provides a list of facilities, utilities and equipment that are required for the turnaround and who typically is responsible to provide them

63. 63 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Utilize a Contracting Plan that defines specific responsibilities relating to: Planning, Supervision, Payment, Time Sheets, Change Management, Field Change Order System and Cost Monitoring Determine which work items to contract out, who should issue the contract and who should manage the day-to-day activities Define who has the coordination role for Progressing Status Monitoring Performance, Quality, Cost and Safety Prepare Work Scope Definition Decide on contract type Cost Plus Fixed Price Target Price Reimbursable Unit Rate Service Contract Blanket Order Prepare Standard Terms and Conditions Integrate Contractor’s Schedule with Turnaround Schedule Establishing Contracts

64. 64 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Cost Plus - Payroll or Actual Cost Plus Fee Fee could be: overhead and fee overhead and sliding scale fee fixed overhead and fee overhead and fee tied to incentives Fixed Price - Lump sum for defined scope plus mechanism to deal with additions and deletions to scope Target Price / Reimbursable - Contractor agrees to control estimate, schedule, safety, milestones, etc Contractor reimbursed for payroll or actual costs Fee based on estimate % or all of fee forfeited on target overruns % of incentive received on target underruns Unit Rate - Rate includes direct cost plus additions to cover overheads, fees, tools, supervision, clerical, etc Service Contracts - Rates, terms and conditions established on a “Continuing Service Basis” or “Spot Basis” over a long term Contract Types Blanket Orders – Rates, terms and conditions established for materials and / or repair work for a fixed period of time

65. 65 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Presentation Agenda Day Three Developing Stakeholder Strategies and Plans Shutdown / Start-up Plans Blinding Performance Reporting Project Controls The Three Amigos Questions and Answers Demobilize / Socialize

66. 66 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Strategies and Plans must be developed for all Stakeholder Departments: Operations Shutdown/Start-up Permitting Blinding Cleaning/Catalyst/De-coke Maintenance Rotating E/I Stationary Inspection/Technical QA/QC/Corrosion/Erosion Testing Materials Management Contracting/Procurement Safety/Environment Engineering Administration Developing Stakeholder Strategies and Plans

67. 67 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Strategies and Plans must be developed for all Functional Areas: Logistics Mobilization/Demobilization Trailers/Janitorial/Garbage/Transportation/Plot Plans/Parking Communications Meetings Radios Stationary Execution Shift Schedules Consumables/Free Issue Planning/Scheduling Training Project Controls Cost Collection Time Keeping Security Leak Detection Developing Stakeholder Strategies and Plans

68. 68 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Strategies and Plans must be developed for all Functional Areas: Developing Stakeholder Strategies and Plans

69. 69 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Strategy Workshops Schedule Strategy Workshops during the Strategic Planning Phase The Project Manager / Turnaround Manager or Turnaround Coordinator must facilitate each Strategy Workshop A schedule of Strategy Workshops should be added to the Milestone Schedule A formalized agenda and process must be followed during the facilitation of Strategy Workshops A list of attendees critical to the Strategy Workshop must be established Each Strategy Workshop should be no longer than 4 hours in duration Any activities identified during the Strategy Workshops must be added to the Milestone Schedule All Strategy Workshop documents must be distributed and filed accordingly Developing Stakeholder Strategies and Plans

70. 70 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Strategy Workshop Exercise Develop a strategy / plan for Safe Work Permits Form a group and delegate a facilitator Use the formal Strategy Workshop Form Identify the Key Deliverables (Goals) Determine the Objectives (How to achieve the Goals) Establish the Strategy Tasks ( How to achieve the Objectives) Take up to an hour to discuss and complete the Strategy Workshop Form Record your results Developing Stakeholder Strategies and Plans

71. 71 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Shutdown (decommission) Best-Practices The strategy to decommission, isolate, evacuate and decontaminate Process Units must consider and manage the following issues: Sequence all shutdown activities using a documented, systematic work breakdown structure to ensure all items are addressed and provide the structure for the job safety analysis, Prepare a written plan / schedule of all shutdown activities using critical path method (sequence, duration, resources) to provide Operations with the opportunity to develop and achieve reasonable schedule targets, Integrate the shutdown plan into the master plan and control the schedule using the Daily Shift Report, Define the communication method that will be used between Maintenance and Operations and for Operations turnover between shifts to eliminate any miscommunication, risk and hazards associated with these critical activities, Identify all activities requiring Maintenance support to Operations to ensure resources are allocated during mobilization planning without effecting other scheduled activities Shutdown / Start-up Plans

72. 72 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Shutdown (decommission) Best-Practices – continued The Shutdown – Feed / Oil Out Plan must identify: The process system that is being prepared, The Area and Unit where the process system exists, Any sub-systems, The Equipment related to the system, The activities required to prepare the process system for inspection and maintenance activities, All tools and related materials required to perform the activities, All Maintenance support manpower requirements, All support services ie nitrogen trucks, vacuum trucks, etc Shutdown / Start-up Plans

73. 73 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Shutdown (decommission) Best-Practices - continued A knowledgeable Operations Planner must be involved early in the Workscope Development Phase to prepare the Shutdown – Fed / Oil Out and Startup – Feed / Oil In Strategy Operations procedures should be available and include: The complete blind lists for unit and equipment isolation (consider common blind locations for isolating multiple equipment and test blinds where necessary), The blind tracking boards and a sign-off process, The definition of the types of Work Permit, Equipment Logic Networks (Critical Path Method) for all Process Unit Shutdown and Startup Procedures The Process Unit shut down work instructions and checklist, The Operations and Maintenance Support required by Process Unit, The disturbed flange tracking control log, The control valve and PSV service status, P&ID Diagrams with marked up blind locations and drain and steam-out connections Shutdown / Start-up Plans

74. 74 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Shutdown (decommissioning) Best-Practices – continued The Shutdown Plan should include: Integrate the Process Units and Utilities Area into the overall plan, Define the work activities in detail (approximately 4 hours duration) Supplemental work instructions can be specified in the notepad feature of the planning software or linked to the Operational Procedure database, Specify the material and tool requirements, Develop detailed Work Packages by system Shutdown / Start-up Plans

75. 75 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Start-up (commission) Best-Practices The strategy to deblind, purge, pressurize, verify system integrity and commission Process Units must consider and manage the following issues: Sequence all startup activities using a documented, systematic work breakdown structure to ensure all items are addressed and provide the structure for the job safety analysis, Prepare a written plan / schedule of all startup activities using critical path method (sequence, duration, resources) to provide Operations with the opportunity to develop and achieve reasonable schedule targets, Integrate the startup plan into the master plan and control the schedule using the Daily Shift Report, Define the communication method that will be used between Maintenance and Operations and for Operations turnover between shifts to eliminate any miscommunication, risk and hazards associated with these critical activities, Identify all activities requiring Maintenance support to Operations to ensure resources are allocated during demobilization planning without effecting other scheduled activities Shutdown / Start-up Plans

76. 76 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Start-up (commission) Best-Practices -continued The Startup – Feed / Oil In Plan must identify: The process system that is being prepared, The Area and Unit where the process system exists, Any sub-systems, The Equipment related to the system, The activities required to prepare the process system for commissioning and startup, All tools and related materials required to perform the activities, All Maintenance support manpower requirements, All support services, i.e., nitrogen trucks Shutdown / Start-up Plans

77. 77 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Best-Practices The blinding phase is a high-risk phase than can impact safety, environment, schedule and cost Establish a formalized process for LOTO management and control Know the policies and regulations regarding Close Vessel Blinding Prepare blind locations by stripping insulation, removing and cleaning studs, hanging blinds, hanging gaskets, erecting scaffolding Educate everyone on the policies and procedures for blinding, lock-outs, seals and deblinding Ensure consistent use of the blind system across all work types, i.e., maintenance, turnaround, projects, etc. Each area is responsible for controlling and tracking the blinding process Blinding Blind Tag

78. 78 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Best-Practices Establish blinding as part of the Planned Job Package Determine which type of blinds are required, i.e., isolation, pressure, testing, etc. Conduct an inventory of blinds on-hand Build unit specific blind racks to store blinds Establish the LOTO strategy, policy and procedure early and ensure sufficient locks and chains are ordered Blinding

79. 79 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Blinding The Blind Sheet by Equipment / Work Type

80. 80 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Best-Practices Use the Milestone Schedule to report performance (Readiness) each week at the Core Team Meeting Report performance every 24 hours during Execution Phase Schedule a daily performance review meeting with Core Team during the Execution Phase Based on the status of each Key Performance Indicator Try to keep all data displayed as visual charts with tabular backup Try to keep all data displayed on one hand-out Save a copy each day for trending Establish trending analysis and run what-if scenarios to determine the best solution to poor performance Increase work hours Decrease work Extend duration SWAT Team Add equipment / resources Performance Reporting

81. 81 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Performance Reporting

82. 82 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Best-Practices Make the Planning / Scheduling responsible for Project Controls Project Controls means real-time data for cost, schedule and resource performance Project Controls means reporting daily to the Project Manager and Leaders Team on the status of each KPI Project Controls means trending data and providing solutions to discrepancies Project Controls

83. 83 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Execution Coordinator Responsible for Resources Responsible for Updates Operations Coordinator Responsible for Assets Responsible for Permits Safety Coordinator Responsible for Safety Resources The Three Amigos are each assigned an Area and a Permit Trailer The Three Amigos have back-to- backs for 24 hour coverage Each group of Three Amigos creates the Shift Report for their back-to-backs The Three Amigos

84. 84 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages 14110 – Work Schedule Overview Day Shift 7:00am Start MIDNIGHT 12:00 NOON6:00 AM6:00 PM 3:00 Status Updates – Execution Area Coords 5:00 Issue shift reports to Area Coordinators 6:00 Area Coordinator Handover 4:00 Re-schedule review – Ops Area Coordinators and Safety Coordinators Execution Area Coordinator Update Times AM & PM 1-Inlet – 3:00 2-Process – 3:10 3-Sulphur – 3:20 4-Utilities – 3:30 Ops/ Safety Area Coordinator Reschedule Times AM & PM 1-Inlet – 4:00 2-Process – 4:15 3-Sulphur – 4:30 4-Utilities – 4:45 Bonus 6:00–10:00 pm Day Shift  5:00pmM M Bonus 2:00-6:00pm Night Shift 7:00pm Start Night Shift  5:00amM M M M M M 3:00 AM 9:00 AM 3:00 PM9:00 PM

85. 85 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages The Three Amigos – Shift Report The Shift Report is generated for each Area after a new plan has been scheduled by the Three Amigos The Shift Report is printed on a different color paper each day The Shift Report can be photo-copied by the Three Amigos and distributed as they see fit The only Shift Report to be update and turned back into Project Controls is the colored one Updates are done, and new Shift Reports are created, between 3 – 5 o’clock each shift The Shift Report is generated with a 12 hour look-ahead – NO MORE!!

86. 86 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages The SWAT Team Consider forming a SWAT Team during the Execution Phase Qualified and experienced team of craftspersons Used to execute high-risk activities Used to assist schedule work execution crews with complex jobs Un-scheduled response team with dedicated radio channel Assist with shutdown/blinding and start-up/de-blinding Maybe independents Pay for performance (higher pay than average) Supported by their own safety coordinator and equipment 13 hour shift with cross-over Overtime automatically approved

87. 87 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Performance Management Peak Performers Why are some companies such good performers, while others endure? Why do some individuals enjoy success, while others struggle? People, Processes, and Plans; with Vision and Empowerment = Performance Excellence Results Desire Passion Personal Performance Excellence Results Vision Empowerment Business Performance Excellence

88. 88 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Performance Management Measuring Success Success is measured as a level of satisfaction Satisfaction is determined by your own self-image, or your customer - either internal, or external Your customer has expectations – expectations based on your promise to deliver Your promise to deliver is your mission statement A poor mission statement may affirm: We deliver a nice pizza A good mission statement will affirm: At your door in thirty minutes or it’s free Human Asset Human Liability Human Resource Performance Excellence

89. 89 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Training and Coaching Certification Certification must be formalized by way of formal training programs Various degrees of certification in the form of training program modules can be developed Testing must be conducted to establish certification Qualification Qualification must come from hands-on experience through coaching Qualification must be managed over a period of time determined by the complexity of the assignments Qualification must be phased, or staged, in a way that developed the competency towards a final certified and qualified position Assessment reviews must be conducted to establish qualification

90. 90 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Performance Management Effort versus Impact What should I work on? What is the amount of effort I need to put in? What is the impact to my own success, or my customer’s satisfaction? A business process should determine what to work on; or at least provide a tool for Leaders, Managers and Resources to make a decision Activities should be assessed to determine their impact on business, and the impact on customer satisfaction Only work on those activities that produce the desired results with the least amount of effort If energy, rather than effort, is involved, such as when you perform a satisfying personal or business activity, the impact is always high If effort, rather than energy, is involved, such as when you perform an unsatisfying personal or business activity, the impact is always low

91. 91 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Resource Management Supervision / Management Leadership Effectiveness – what to do Leaders manage upward Leaders should design people (transition resources to assets) Management Efficiency – how to do Managers lead downward Managers should develop people (transition liabilities to resources) They often spend 80% of their time with 20% of the people (problem solving) The other 20% of time is split between resources and assets (18% for resources, 2% for assets) Control Won’t work with resources Inspire, encourage, recognize Recognize Inspire Encourage Performance Excellence

92. 92 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Resource Management Manage work, not people People are not manageable, neither are horses, movie stars or children People have personalities Personalities that are affected by emotions People have passion, desire and free-will People are creative, sensitive, motivated one day, exhausted the next When work is identified as an activity, with an explanation of what to do and how to do it…match it to a resource capable of performing the activity with energy…eliminate work…feel the results Allow people to be creative, spontaneous, satisfied and recognized Measure the quantity of activities being executed Measure the quality of activities being executed Instill continuous improvement into the process of executing activities…this allows people to be creative Treat people as unique resources…let them grow into human assets

93. 93 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages Turnaround Readiness Assessment Program

94. 94 STO Navigator™ - 3 Day Best-Practices Seminar Copyright© 2011 www.stonavigator.com Shutdowns, Turnarounds and Outages 25% 50% 75% 100% Operational & Maintainability Process Availability Equipment Reliability Performance Indicators Process Availability = % ThroughputProcess Availability = % Throughput Equipment Reliability = CostEquipment Reliability = Cost Operate / Maintain =Operate / Maintain = Safety Safety Quality Quality Man-hours Man-hours Indirects Indirects Materials Materials Schedule Schedule Points to Ponder Turnaround Performance Performance Indicators