A turnaround (TA) by definition is a
planned, periodic event during which one or more processing/production units
are removed from service temporarily. In the manufacturing sector, different
industries use different terminologies to connote this concept. Some use the
term “turnaround,” some use “shutdown,” while still others use the term
“outage.” In some industries, the duration and scope of the event determines
the particular vernacular used
Regardless of the terminology your
industry uses, this event might occur individually or in conjunction with an
entire plant shutdown. The purpose of the event typically is to perform
maintenance such as equipment inspection and repair. It’s also an opportunity
to replace worn out or broken process materials and equipment that have reached
their useful life. Both these activities restore the asset base’s life cycle
and ensure the safe and efficient operations between TA events. Often this work
can be performed only when the processing/production units aren’t in service.
Phases
of a turnaround
There are five distinct phases
associated with a turnaround. Each consists of key elements that must be
executed to perfection in sequential order. It’s crucial to develop formal
processes for each element of each phase. If formal processes aren’t in place,
shortcuts tend to happen, best practices and lessons learned get lost, and,
more importantly, key steps or procedures can get skipped completely.
Phase
1: Definition/scoping
The definition/scoping phase is the
foundation for a turnaround. It’s in this phase that the initial planning,
scoping and organization occur. Remember, TAs aren’t stand-alone events, but
are high-cost, high-impact events, which represent the execution of the company
strategy over a period of many years.
It’s important to build a strategy
during this stage addressing how and when TAs are to be executed. Each
turnaround should have a business case to justify the event. It should include
the key drivers, such as cost reduction or overall equipment effectiveness
(OEE), that make it a necessity and link it to overall company goals.
Senior management must view
turnarounds as an important element in its strategy and should form a steering
committee consisting of upper level managers who take responsibility for
executing the long-term strategy for turnarounds. Give a TA manager full
control of the TA thru every phase so as to develop and manage the organization
and resources associated with the turnaround. The TA manager also works with the
steering committee to develop the key performance indicators (KPIs), or a set
of measures focusing on those aspects of performance that are most critical for
success. Typical KPIs for a TA focus on safety, cost, schedule, labor hours,
overtime and task completion.
During this phase you should develop
the work list, a repository of every conceivable item that should be considered
for execution and populated from every level in the organization. Some work
list items are mandatory, as dictated by corporate and regulatory entities.
Others are improvement-based, as part of an overall strategy to improve cost or
market position. Still others come from inspections conducted to improve mean
time between failure (MTBF) and equipment life cycle. Use data analysis to find
items “below the surface” that degrade processes.
The CMMS is the final destination or
repository for items generated from the elements on the work list. Any item
submitted for the work list must go through due diligence. The fundamental
criterion for items on the work list is work that can be performed only when
the unit/process is down.Finally, develop a preparation plan to identify the
cost estimate, schedule, work list, constraints and resources needed to execute
the TA. The TA manager and the team prepares the preparation plan and submits
it to the steering committee for approval and distribution throughout the
organization.
Phase
2: Preparation
Phase 2 preparation begins
immediately after the preparation plan is approved. This phase develops plan
details before TA execution. Develop environmental, health and safety plans to
promote workforce health and welfare. Develop logistics plans for reception,
storage, protection, issue and demobilization of every item of material,
equipment, services, accommodations facilities and utilities the TA requires.
Write plans for quality assurance and quality control. Quality assurance is a
program for systematically monitoring and evaluating the various aspects of a
TA task, service or equipment/material to ensure standards of quality are being
met. Quality control measures inspection, testing and engineering, which are
used to oversee and improve the quality of work executed.
The work list developed in Phase 1
must be validated and narrowed. Develop detailed work packages for the
finalized work list. The work package includes the job scope, number of
craftsman, labor hours to execute the tasks and task scheduling. It also
includes a standard job plan, detailing the operational steps needed to execute
the tasks with precision. Safety steps, permitting, drawings and photos are
part of a detailed work package.
“Some use the term “turnaround,”
some use “shutdown,” while still others use the term “outage.””
After completing the detailed work
packages, decide which work is to be executed with internal resources and which
are to be done with external resources. Tasks to be executed with external
resources must be scoped properly and sent out for bids. Develop plans as to
how these external contractors will be managed.
Tasks on the final work list must be
thoroughly vetted for risk and contingency plans prepared for worst case
scenarios. Pre-shutdown work such as prefab, specialty and piping, must be
identified and executed. Capital project work to be executed concurrently with
the TA must be fully integrated into the plan at this time. Once Phase 2 items
are completed, you should have a final work list, a revised schedule and a cost
estimate accurate to within 10% of the allocated budget. Once again, Phase 2
packages should be approved by the steering committee and communicated to the
organization upon their approval.
Phase
3: Execution
Execution in Phase 3 begins
immediately upon equipment shutdown. You prepared diligently in Phase 2 for the
known items to be executed. While you prepared diligently for known items to be
executed, address the unknown items that will become apparent as the TA begins.
For example, scope changes or a request to change the agreed scope and
objectives that weren’t originally defined to be part of the TA will arise as
work begins. When developing a TA work list, it’s virtually impossible to
predict the things that need to be done. No matter how good the history, or
inspection process, or data analysis that can be done early, there’s no substitute
for inspecting the asset base when the equipment is down. However scope change
and add–on work can be costly and affect the TA critical path. Each should be
carefully scrutinized before proceeding, and there must be a process in place
to stay on schedule and at budget.
A good deal of resources also will
be dedicated to inspecting the equipment while it’s down. Items will be found
during these inspections and decisions need to be made whether to execute
corrective actions. As in scope changes, a process must be in place to stay on
schedule and at budget. It’s a tremendous task to manage the internal and
external resources associated with a TA. The detailed schedule prepared in
Phase 2 is one of the best ways to manage resources
Update the schedule daily so
resources assigned to items that finish early can be shifted to items that are
behind. Highlight items that can delay the overall schedule (critical path
items) and give them special attention. The TA schedule indicates the status of
each task to be executed. It’s equally important to track the cumulative affect
of the TA tasks. Use the KPIs developed in Phase 1 to do this. Items such as TA
cost (actual vs. budget), planned vs. actual labor hours, overtime labor hours,
overtime percentage are examples of metrics to track TA progress. These can be
represented graphically as well. KPI information is critical and useful as the
TA comes to an end. As the majority of the TA tasks are completed, the same
number of resources is no longer required. The KPIs are an excellent tool to
determine when to downsize the workforce for maximum cost and efficiency.
After completing each task on the
schedule, testing must validate readiness to return to operation. Testing
equipment after it has been touched in some way by turnaround activities is a
critical process before startup can begin. Testing activities might be
performed by maintenance electricians or instrumentation technicians, process
control technicians, vendors or even operations personnel. Finally, after the tasks
are completed, the asset base must be returned to as good or better state as it
was before the TA.
Phase
4: Startup/turnover
Startup/turnover, the last step of
the execution phase, begins after testing is completed. A final inspection
occurs when operations personnel, maintenance and specified third parties
evaluate assets for readiness for service. A hand-off to the operations group
should occur when the agreed-upon TA work has been completed, punch-list items
have been reconciled and no outstanding factors affecting startup remain.
Hand-off is a process that ensures
that outstanding matters affecting the startup have been addressed. Startup is
essentially an operational function. However, it should be coordinated closely
with the TA team to ensure proper support resources are available.
After equipment is operational,
ramp-up can begin. Ramp-up is the interval between startup and normal operating
run rates and capacities. It’s an opportunity for adjustments and to observe
equipment that has been installed or touched in some way during the TA. Ramp-up
is a critical phase and the one most apt for a failure to occur after TA work
is complete. Develop the final TA punch list when ramp-up is complete and the
operation has stabilized.
The punch list is a forum for all
parties associated with the TA (contractors, maintenance, operations) to walk
down the equipment one last time and mutually agree on the items that need to
be corrected. It would be ideal if all the items on the punch list could be
completed. The reality is that TA budgetary constraints might prevent
completing all items on the list, but it’s a good start for the next TA.
Phase
5: Evaluation
Phase 5 begins when the tasks
associated with the TA are complete. Demobilization begins immediately
following this completion and includes activities and costs for transporting
personnel, equipment and supplies not required or included in the turnaround. This
includes the disassembly, removal and site clean up of offices, buildings and
other facilities assembled on the site specifically for this TA. Review Any TA
activity that varies significantly in cost, schedule or technical performance
using formal root cause analysis (RCA) methodology.
Conduct a post-mortem meeting to
review the turnaround in its entirety. The agenda should include EHS review,
KPIs/metrics, cost, schedule, punch lists, contractor management,
shutdown/startup/ramp-up, critical path and major tasks review and best
practices/lessons learned. A best practice is a technique, method, process or
activity regarded as more effective at delivering a particular outcome than any
other technique, method or process. The idea is that with proper systems,
processes, checks and testing, a desired outcome can be delivered consistently
with fewer problems and unforeseen complications.
At the end of Phase 5, reconcile the
outage costs. Close or cancel purchase orders, work orders and service
contracts. Apply any vendor/supplier/storeroom credits for returned materials
and equipment. Log returned quantities in CMMS for future planning purposes.
Apply the credited amount to the overall outage cost in the respective area.
Write a financial report that details costs associated with the outage, broken
down by category — labor, materials, parts — so actual numbers can be compared
to plan. This provides the opportunity to analyze cost horizontally and
vertically across the system.
Conduct a final audit to assess the
performance of each element in each phase of the TA process. Once completed,
prepare a final report summarizing every phase of the turnaround. This document
should be the basis for updating the turnaround strategy and the developing a
business case for the next TA. In addition, review major equipment availability
and performance before the next outage as a measure of the effectiveness of the
previous outage. Typical general topics covered in the turnaround report
include safety, quality, logistics, work scope, financial, TA metrics,
contractor performance, organization and TA schedule.
A turnaround can be an overwhelming
undertaking if managed as a single, stand-alone event. However, if the event is
broken down into various phases with detailed, formal processes in each phase,
it can be managed successfully each and every time. Consistency and
repeatability are key in managing a long-term TA strategy. Resources are
constantly on the move. It’s not reasonable to assume that the same TA team
that managed last year’s event successfully will be available for next year’s
TA. However, with good detailed processes in place, the effect of turnover can
be minimized substantially.
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