Description
Improved margins have illuminated turnarounds as an opportunity…not a liability.
!"#$"%&'%( *+# ,-"%&#$.-&
/0#-$#+0-1( $-1 2$3'"$4 5#+6%7"(
8+99: ;'7<'7<
AsseL Þerformance neLworks
vÞ of 1urnaround Consulung
PousLon, 1x
1echnlcal Sesslon: 8MC-14-82
=$>'1 ?%--'%
Shell
1urnaround/Þro[ecLs Manager
ueer Þark, 1x Complex
ÞresenLauon CuLllne
1. lnLegraLed 1urnaround LvenL Þerformance
2. MosL Crlucal lnLegrauon lacLors
3. Shell's lnLegrauon lramework
4. Concluslons
2
ÞresenLauon CuLllne
1. lnLegraLed 1urnaround LvenL Þerformance
2. MosL Crlucal lnLegrauon lacLors
3. Shell's lnLegrauon lramework
4. Concluslons
3
CurrenL SLaLe of Lhe lndusLry
" #$%& ' ()$*'$%)*+, -%.*( %# /.01
! lmproved marglns have lllumlnaLed Lurnarounds as an
opporLunlLy.noL a llablllLy
o CaplLal pro[ecL acuvlLy has reLurned, and more of lL ls belng
execuLed durlng Lhe Lurnaround wlndow
o 1urnarounds are parL of sLraLeglc buslness plannlng, resulung ln
challenglng performance LargeLs (especlally durauon)
! lncreaslng regulaLory compllance requlremenLs
! Plgh proñle lnluauves compeung for $ and people
! lndusLry-wlde decllne of Lurnaround experlence and capablllLy
2%$ &'*34 ()$*'$%)*+ -0$#%$&'*50 5%*6*)0, (% 70 ,)7-'$
4
10. CuallLy lssues aL sLarLup
9. lmproper managemenL of conLracLor resources
8. SlgnlñcanL scope growLh
7. uelayed deconLamlnauon and unlL handover
6. Lack of resources for opumum preparauon
3. lncompleLe adherence Lo Lurnaround work process
4. lnadequaLe/lncapable execuuon organlzauon
3. lneñecuve Lurnaround SLraLegy and/or SLeerlng 1eams
2. Inab|||ty to |ntegrate w|th cap|ta| pro[ects
1. unreallsuc LargeLs for Lurnaround success
1op 8easons lor 1urnaround lallure
3
1urnaround ÞredlcLablllLy Þerformance
.', ' #)*56%* %# 8 9'-.(': ;$%<05(,
Source: AÞ-neLworks 1urnaround uaLabase
6
lnLegrauon lndex
"., ' :0'+.*= .*+.5'(%$ %# 0/0*( 5%,(>,5?0+):0 -0$#%$&'*50
0
10
20
30
40
50
60
70
80
CosL Cverrun °
Schedule Sllp °
Integration Index
,-10("#:
@>%#$&%
@($%*= A*(0=$'6%* A*+0B +$./0, 70C0$ 0/0*( -0$#%$&'*50
7
CuLllne
1. lnLegraLed 1urnaround LvenL Þerformance
2. MosL Crlucal lnLegrauon lacLors
3. Shell's lnLegrauon lramework
4. Concluslons
8
SLraLegles Scoplng
ueLalllng
Lxecuung
1. Adherlng Lo ºCollaborauve" Work Þrocesses
"'*+ -$%+)5.*= ?.=? D)':.(3 +0:./0$'7:0,
! Map ouL ma[or lnLerfaces (or mllesLones) beLween Lhe
caplLal pro[ecL and Lurnaround work processes ln a way LhaL
assures Lhey are ºcollaborauve"
9
Work Þrocess Compllance urlves 8eadlness
E)$*'$%)*+ $0'+.*0,, ., ' F03 :0'+.*= .*+.5'(%$ %# %)(5%&0,
10
C
o
s
t
&
S
c
h
e
d
u
|
e
I
n
d
e
x
(
I
n
d
u
s
t
r
y
A
v
e
r
a
g
e
=
1
0
0
)
80
100
120
Schedu|e
Cost
140
1urnaround kead|ness Index
Sub opnma| 8order||ne Cpnma|
Compeuuveness
C
o
s
t
&
S
c
h
e
d
u
|
e
V
a
r
|
a
n
c
e
¼
0¼
Schedu|e
Cost
-20¼
-40¼
20¼
40¼
80¼
60¼
+1 SLd. uev
Average
-1 SLd. uev
1urnaround kead|ness Index
Sub opnma| 8order||ne Cpnma|
ÞredlcLablllLy
G'(0 +0H*.6%* '*+>%$ #)*+.*= %# -$%<05(, ., 5$.--:.*=
2. ueñnlng Lhe Þro[ecL Scope.Larly
E%% %I0* A29 -'5F'=0, H*.,? 'I0$ ,5%-0 #$00J0
0° 10° 20° 30° 40° 30° 60° 70°
1 monLh or less
2 Lo 8 monLhs
9 monLhs or more
Þercentage of 1urnarounds
M
o
n
t
h
s
A
h
e
a
d
o
f
1
u
r
n
a
r
o
u
n
d
S
t
a
r
t
Industry Issuance of Last IIC Þackage
11
Scope Ireeze nm|ng
Source: AÞ-neLworks 1urnaround uaLabase
IIC = Issued Ior Construcnon
0%
5%
10%
15%
20%
25%
0 1 2 3 4 5 6 7 8 9 10
D
e
v
i
a
t
i
o
n
f
r
o
m
P
l
a
n
Months Before Oil Out That All Drawings Are Complete
Cost and Schedule Variance Relative to IFC Date
CosL CrowLh
Schedule Sllp
llC Þackages are a key Þro[ecL uellverable
"'*+ ?'/0 ' ,.J'7:0 .&-'5( %* ()$*'$%)*+ 0/0*( %)(5%&0,
K.=?:3 5%&-:0B 0/0*( 1.(? '/0$'=0 ELA '*+ .*(0=$'6%*
Source: AÞ-neLworks 1urnaround uaLabase
12
3. uocumenung an LvenL lnLegrauon Þlan
"$0D).$0, 0'$:3 +0H*.6%* '*+ 5%&&.(&0*(
! 1he LvenL lnLegrauon Þlan ls ºLhe conLracL" beLween
Lurnaround and pro[ecLs deñnlng Lhe whaL, how, when, and
who deLalls of lnLegrauon
! ldeally developed ln a faclllLaLed workshop ~2 years prlor Lo
feed-ouL, lL ls an exLremely enabllng documenL
! ln deLall, lL addresses Lhe followlng areas:
o Crganlzauon
o SLraLeglc Þrocesses
o Þreparauon Þracuces
o Lxecuuon SysLems
13
4. LsLabllshlng an Lñecuve SLeerlng 1eam
"H(, 1.(?.* (?0 ()$*'$%)*+ 0/0*( &'*'=0&0*( ,($)5()$0
14
Senlor ÞlanL Leadershlp
Mld Level (or Llne) MgmL
lndlvldual ConLrlbuLors
SLraLegy 1eam
SLeerlng 1eam
Core 1eam
LxLended 1eam Members
SLeerlng 1eam Lñecuveness
"+$./0, +0,.$'7:0 $0,)
, '*+ ., ' ,.=*.H5'*( +.M0$0*6'(%$
! SLeerlng 1eams are responslble for drlvlng º8
3
S"
! 1urnaround evenLs led by SLeerlng 1eams drlve dramaucally
favorable ouLcomes
o 1urnaround 8eadlness lndex (18l)
o SlgnlñcanLly beuer CosL and Schedule Þerformance
13
3.6
18l
3.6
2.3 lndusLry Average
21%
-5%
18%
-3%
-10° -3° 0° 3° 10° 13° 20° 23°
CosL Schedule
Lñecuve SLeerlng
1eams
CuLllne
1. lnLegraLed 1urnaround LvenL Þerformance
2. MosL Crlucal lnLegrauon lacLors
3. Shell's lnLegrauon lramework
4. Concluslons
16
1he Shell lramework
N0,( -$'5650 #%$ .*(0=$'6*= ()$*'$%)*+, '*+ 5'-.(': -$%<05(,
Turnaround Premises
Integrated
Organization
Accountability
Integrated
Schedule
Planning
Deliverables
Execution and
Contracting Strategy
Well Integrated Turnarounds and Projects
Prorates
Cost
Controls
Representation
in Work Process
Communications Trust Barriers
Project Premises
Leadership
Commitment
17
1he Shell lramework
A*(0=$'6%* 70,( -$'5650 0:0&0*(,
Accountability
Integrated
Schedule
Deliverables
Leadership
Commitment
18
! SlLe leadershlp musL esLabllsh Lhe evenL as a mlsslon crlucal
focus for Lhe faclllLy
! 1hrough Lhe SLeerlng 1eam, Lhe Lurnaround and pro[ecL
groups are [olnLly accounLable for dellverlng Lhe evenL
! 1here wlll be only CnL fully lnLegraLed evenL execuuon
schedule
! 1he Lurnaround and pro[ecLs work processes wlll be
lnLegraLed ln order Lo drlve Lhe umely compleuon of all
pro[ecL dellverables
1he Shell lramework
A*(0=$'6%* 70,( -$'5650 0:0&0*(,
Integrated
Organization
Planning
Execution and
Contracting Strategy
Prorates
19
! 1here wlll be only CnL fully lnLegraLed organlzauon for
preparauon and execuuon of Lhe evenL
! 1he meLhodology for deLalled plannlng shall follow proven
Lurnaround pracuces and be performed ln CnL sysLem
! 1he sLraLegles for conLracung and execuuon shall be done Lo
dellver CnL fully lnLegraLed approach
! Shared evenL cosLs (over and above Lhose requlred for Lhe
Lurnaround) wlll be proporuonally shared by pro[ecLs
1he Shell lramework
A*(0=$'6%* 70,( -$'5650 0:0&0*(,
Cost
Controls
Representation
in Work Process
Communications Trust Barriers
20
! ldeally deslgned as CnL, Lhe evenL conLrols plan and sysLems
wlll be deñned collaborauvely and early
! Þro[ecL Leams shall paruclpaLe ln all premlse semng,
allgnmenL, and Leam bulldlng workshops
! 1he meLhods for communlcauon wlll be formally
documenLed, Lurnover of pre-Lurnaround work ls essenual
! Crganlzauon ls commlued Lo proacuvely clarlfylng, deñnlng,
and addresslng all lssues LhaL could creaLe a LrusL barrler and
ulumaLely lnhlblL Lhe Leam's eñecuveness
1he Shell lramework
N0,( -$'5650 #%$ .*(0=$'6*= ()$*'$%)*+, '*+ 5'-.(': -$%<05(,
Turnaround Premises
Integrated
Organization
Accountability
Integrated
Schedule
Planning
Deliverables
Execution and
Contracting Strategy
Prorates
Cost
Controls
Representation
in Work Process
Communications
Trust Barriers
Project Premises
Leadership
Commitment
21
Well Integrated Turnarounds and Projects
CuLllne
1. lnLegraLed 1urnaround LvenL Þerformance
2. MosL Crlucal lnLegrauon lacLors
3. Shell's lnLegrauon lramework
4. Concluslons
22
Concluslons
! 1he amounL of caplLal execuLed durlng a Lurnaround...
! lncreases boLh Lhe Lurnaround evenL rlsk and complexlLy
! negauvely lmpacLs Lhe ablllLy Lo predlcL evenL ouLcome
! A leadlng lndlcaLor meLrlc LhaL correlaLes Lhe level of
lnLegrauon wlLh Lurnaround evenL ouLcomes ls avallable
! LsLabllshmenL of a formal lnLegrauon lramework ls an
emerglng besL pracuce
! 1here are 4 key componenLs LhaL drlve beuer lnLegrauon:
! 1lmely deñnluon of caplLal scope
! lmplemenung (and followlng) collaborauve work processes
! LsLabllshlng SLeerlng 1eams LhaL drlve 8
3
S
! ueñnlng a robusL Lurnaround and caplLal lnLegrauon plan
23
Cuesuons
24
doc_882236479.pdf
Improved margins have illuminated turnarounds as an opportunity…not a liability.
!"#$"%&'%( *+# ,-"%&#$.-&
/0#-$#+0-1( $-1 2$3'"$4 5#+6%7"(
8+99: ;'7<'7<
AsseL Þerformance neLworks
vÞ of 1urnaround Consulung
PousLon, 1x
1echnlcal Sesslon: 8MC-14-82
=$>'1 ?%--'%
Shell
1urnaround/Þro[ecLs Manager
ueer Þark, 1x Complex
ÞresenLauon CuLllne
1. lnLegraLed 1urnaround LvenL Þerformance
2. MosL Crlucal lnLegrauon lacLors
3. Shell's lnLegrauon lramework
4. Concluslons
2
ÞresenLauon CuLllne
1. lnLegraLed 1urnaround LvenL Þerformance
2. MosL Crlucal lnLegrauon lacLors
3. Shell's lnLegrauon lramework
4. Concluslons
3
CurrenL SLaLe of Lhe lndusLry
" #$%& ' ()$*'$%)*+, -%.*( %# /.01
! lmproved marglns have lllumlnaLed Lurnarounds as an
opporLunlLy.noL a llablllLy
o CaplLal pro[ecL acuvlLy has reLurned, and more of lL ls belng
execuLed durlng Lhe Lurnaround wlndow
o 1urnarounds are parL of sLraLeglc buslness plannlng, resulung ln
challenglng performance LargeLs (especlally durauon)
! lncreaslng regulaLory compllance requlremenLs
! Plgh proñle lnluauves compeung for $ and people
! lndusLry-wlde decllne of Lurnaround experlence and capablllLy
2%$ &'*34 ()$*'$%)*+ -0$#%$&'*50 5%*6*)0, (% 70 ,)7-'$
4
10. CuallLy lssues aL sLarLup
9. lmproper managemenL of conLracLor resources
8. SlgnlñcanL scope growLh
7. uelayed deconLamlnauon and unlL handover
6. Lack of resources for opumum preparauon
3. lncompleLe adherence Lo Lurnaround work process
4. lnadequaLe/lncapable execuuon organlzauon
3. lneñecuve Lurnaround SLraLegy and/or SLeerlng 1eams
2. Inab|||ty to |ntegrate w|th cap|ta| pro[ects
1. unreallsuc LargeLs for Lurnaround success
1op 8easons lor 1urnaround lallure
3
1urnaround ÞredlcLablllLy Þerformance
.', ' #)*56%* %# 8 9'-.(': ;$%<05(,
Source: AÞ-neLworks 1urnaround uaLabase
6
lnLegrauon lndex
"., ' :0'+.*= .*+.5'(%$ %# 0/0*( 5%,(>,5?0+):0 -0$#%$&'*50
0
10
20
30
40
50
60
70
80
CosL Cverrun °
Schedule Sllp °
Integration Index
,-10("#:
@>%#$&%
@($%*= A*(0=$'6%* A*+0B +$./0, 70C0$ 0/0*( -0$#%$&'*50
7
CuLllne
1. lnLegraLed 1urnaround LvenL Þerformance
2. MosL Crlucal lnLegrauon lacLors
3. Shell's lnLegrauon lramework
4. Concluslons
8
SLraLegles Scoplng
ueLalllng
Lxecuung
1. Adherlng Lo ºCollaborauve" Work Þrocesses
"'*+ -$%+)5.*= ?.=? D)':.(3 +0:./0$'7:0,
! Map ouL ma[or lnLerfaces (or mllesLones) beLween Lhe
caplLal pro[ecL and Lurnaround work processes ln a way LhaL
assures Lhey are ºcollaborauve"
9
Work Þrocess Compllance urlves 8eadlness
E)$*'$%)*+ $0'+.*0,, ., ' F03 :0'+.*= .*+.5'(%$ %# %)(5%&0,
10
C
o
s
t
&
S
c
h
e
d
u
|
e
I
n
d
e
x
(
I
n
d
u
s
t
r
y
A
v
e
r
a
g
e
=
1
0
0
)
80
100
120
Schedu|e
Cost
140
1urnaround kead|ness Index
Sub opnma| 8order||ne Cpnma|
Compeuuveness
C
o
s
t
&
S
c
h
e
d
u
|
e
V
a
r
|
a
n
c
e
¼
0¼
Schedu|e
Cost
-20¼
-40¼
20¼
40¼
80¼
60¼
+1 SLd. uev
Average
-1 SLd. uev
1urnaround kead|ness Index
Sub opnma| 8order||ne Cpnma|
ÞredlcLablllLy
G'(0 +0H*.6%* '*+>%$ #)*+.*= %# -$%<05(, ., 5$.--:.*=
2. ueñnlng Lhe Þro[ecL Scope.Larly
E%% %I0* A29 -'5F'=0, H*.,? 'I0$ ,5%-0 #$00J0
0° 10° 20° 30° 40° 30° 60° 70°
1 monLh or less
2 Lo 8 monLhs
9 monLhs or more
Þercentage of 1urnarounds
M
o
n
t
h
s
A
h
e
a
d
o
f
1
u
r
n
a
r
o
u
n
d
S
t
a
r
t
Industry Issuance of Last IIC Þackage
11
Scope Ireeze nm|ng
Source: AÞ-neLworks 1urnaround uaLabase
IIC = Issued Ior Construcnon
0%
5%
10%
15%
20%
25%
0 1 2 3 4 5 6 7 8 9 10
D
e
v
i
a
t
i
o
n
f
r
o
m
P
l
a
n
Months Before Oil Out That All Drawings Are Complete
Cost and Schedule Variance Relative to IFC Date
CosL CrowLh
Schedule Sllp
llC Þackages are a key Þro[ecL uellverable
"'*+ ?'/0 ' ,.J'7:0 .&-'5( %* ()$*'$%)*+ 0/0*( %)(5%&0,
K.=?:3 5%&-:0B 0/0*( 1.(? '/0$'=0 ELA '*+ .*(0=$'6%*
Source: AÞ-neLworks 1urnaround uaLabase
12
3. uocumenung an LvenL lnLegrauon Þlan
"$0D).$0, 0'$:3 +0H*.6%* '*+ 5%&&.(&0*(
! 1he LvenL lnLegrauon Þlan ls ºLhe conLracL" beLween
Lurnaround and pro[ecLs deñnlng Lhe whaL, how, when, and
who deLalls of lnLegrauon
! ldeally developed ln a faclllLaLed workshop ~2 years prlor Lo
feed-ouL, lL ls an exLremely enabllng documenL
! ln deLall, lL addresses Lhe followlng areas:
o Crganlzauon
o SLraLeglc Þrocesses
o Þreparauon Þracuces
o Lxecuuon SysLems
13
4. LsLabllshlng an Lñecuve SLeerlng 1eam
"H(, 1.(?.* (?0 ()$*'$%)*+ 0/0*( &'*'=0&0*( ,($)5()$0
14
Senlor ÞlanL Leadershlp
Mld Level (or Llne) MgmL
lndlvldual ConLrlbuLors
SLraLegy 1eam
SLeerlng 1eam
Core 1eam
LxLended 1eam Members
SLeerlng 1eam Lñecuveness
"+$./0, +0,.$'7:0 $0,)
, '*+ ., ' ,.=*.H5'*( +.M0$0*6'(%$ ! SLeerlng 1eams are responslble for drlvlng º8
3
S"
! 1urnaround evenLs led by SLeerlng 1eams drlve dramaucally
favorable ouLcomes
o 1urnaround 8eadlness lndex (18l)
o SlgnlñcanLly beuer CosL and Schedule Þerformance
13
3.6
18l
3.6
2.3 lndusLry Average
21%
-5%
18%
-3%
-10° -3° 0° 3° 10° 13° 20° 23°
CosL Schedule
Lñecuve SLeerlng
1eams
CuLllne
1. lnLegraLed 1urnaround LvenL Þerformance
2. MosL Crlucal lnLegrauon lacLors
3. Shell's lnLegrauon lramework
4. Concluslons
16
1he Shell lramework
N0,( -$'5650 #%$ .*(0=$'6*= ()$*'$%)*+, '*+ 5'-.(': -$%<05(,
Turnaround Premises
Integrated
Organization
Accountability
Integrated
Schedule
Planning
Deliverables
Execution and
Contracting Strategy
Well Integrated Turnarounds and Projects
Prorates
Cost
Controls
Representation
in Work Process
Communications Trust Barriers
Project Premises
Leadership
Commitment
17
1he Shell lramework
A*(0=$'6%* 70,( -$'5650 0:0&0*(,
Accountability
Integrated
Schedule
Deliverables
Leadership
Commitment
18
! SlLe leadershlp musL esLabllsh Lhe evenL as a mlsslon crlucal
focus for Lhe faclllLy
! 1hrough Lhe SLeerlng 1eam, Lhe Lurnaround and pro[ecL
groups are [olnLly accounLable for dellverlng Lhe evenL
! 1here wlll be only CnL fully lnLegraLed evenL execuuon
schedule
! 1he Lurnaround and pro[ecLs work processes wlll be
lnLegraLed ln order Lo drlve Lhe umely compleuon of all
pro[ecL dellverables
1he Shell lramework
A*(0=$'6%* 70,( -$'5650 0:0&0*(,
Integrated
Organization
Planning
Execution and
Contracting Strategy
Prorates
19
! 1here wlll be only CnL fully lnLegraLed organlzauon for
preparauon and execuuon of Lhe evenL
! 1he meLhodology for deLalled plannlng shall follow proven
Lurnaround pracuces and be performed ln CnL sysLem
! 1he sLraLegles for conLracung and execuuon shall be done Lo
dellver CnL fully lnLegraLed approach
! Shared evenL cosLs (over and above Lhose requlred for Lhe
Lurnaround) wlll be proporuonally shared by pro[ecLs
1he Shell lramework
A*(0=$'6%* 70,( -$'5650 0:0&0*(,
Cost
Controls
Representation
in Work Process
Communications Trust Barriers
20
! ldeally deslgned as CnL, Lhe evenL conLrols plan and sysLems
wlll be deñned collaborauvely and early
! Þro[ecL Leams shall paruclpaLe ln all premlse semng,
allgnmenL, and Leam bulldlng workshops
! 1he meLhods for communlcauon wlll be formally
documenLed, Lurnover of pre-Lurnaround work ls essenual
! Crganlzauon ls commlued Lo proacuvely clarlfylng, deñnlng,
and addresslng all lssues LhaL could creaLe a LrusL barrler and
ulumaLely lnhlblL Lhe Leam's eñecuveness
1he Shell lramework
N0,( -$'5650 #%$ .*(0=$'6*= ()$*'$%)*+, '*+ 5'-.(': -$%<05(,
Turnaround Premises
Integrated
Organization
Accountability
Integrated
Schedule
Planning
Deliverables
Execution and
Contracting Strategy
Prorates
Cost
Controls
Representation
in Work Process
Communications
Trust Barriers
Project Premises
Leadership
Commitment
21
Well Integrated Turnarounds and Projects
CuLllne
1. lnLegraLed 1urnaround LvenL Þerformance
2. MosL Crlucal lnLegrauon lacLors
3. Shell's lnLegrauon lramework
4. Concluslons
22
Concluslons
! 1he amounL of caplLal execuLed durlng a Lurnaround...
! lncreases boLh Lhe Lurnaround evenL rlsk and complexlLy
! negauvely lmpacLs Lhe ablllLy Lo predlcL evenL ouLcome
! A leadlng lndlcaLor meLrlc LhaL correlaLes Lhe level of
lnLegrauon wlLh Lurnaround evenL ouLcomes ls avallable
! LsLabllshmenL of a formal lnLegrauon lramework ls an
emerglng besL pracuce
! 1here are 4 key componenLs LhaL drlve beuer lnLegrauon:
! 1lmely deñnluon of caplLal scope
! lmplemenung (and followlng) collaborauve work processes
! LsLabllshlng SLeerlng 1eams LhaL drlve 8
3
S
! ueñnlng a robusL Lurnaround and caplLal lnLegrauon plan
23
Cuesuons
24
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