The Perfect Storm

Navigating the Perfect STOrm
Presented by Ej (Ted) Lister
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The Perfect STOrm
The Perfect STOrm in nature is a weather phenomenon where three systems
converge on each other over the ocean to create havoc, making it nearly
impossible for ocean-going vessels to navigate.
Since our primary focus is on navigating complex, risky and expensive
projects, it’s only fitting that we use this concept to demonstrate how to
avoid, or manage The Perfect STOrm when it arises.
The Perfect STOrm cannot be managed solely by Technology and People. A
Methodology must be established as a guide, which is the primary key to
executing a successful STO project, no matter what the conditions are.
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What makes The Perfect STOrm on a Shutdown, Turnaround or Outage?
Many will tell you that it’s a lack of planning; or poor weather conditions; or
incompetent contractors, to name a few. But the truth is, there are 3 major
forces that come together to create the perfect STOrm more than any other
on a Shutdown, Turnaround or Outage project:
• Scope Creep
• Work approved after the Workscope/Budget Cut-off Date
• Discovery Work
• Work found when assets have been opened for inspection or overhaul
• Rework
• Work created from non-conformance to QA/QC standards
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4
Scope Creep
• Scope Creep is work approved after the Worklist/Budget Cut-off Date and
before Feed-out
• Scope Creep is a result of:
• Maintenance requirements (unavoidable since the process unit is
operational up to Feed-out)
• A lack of a RAMP (Reliability Asset Management Program) Team using a
formal Risk/Cost Benefit Analysis Program
• Scope Creep can be avoided by:
• Establishing a RAMP Team and using a formal Risk/Cost Benefit Analysis
Program
• Accepting that Outage Work is an OPEX or CAPEX (project) expense

5
Discovery Work
• Discovery Work is when additional Activities or longer durations are
added to an existing Work Order Task
• Discovery Work can be expensive, but it should not affect the scheduled
Feed-in date
• Discovery Work is a result of:
• Poor planning or estimating
• Lack of history
• Challenging shutdown plans
• Day-to-day operation
• Discovery Work can be reduced by:
• Strategic ‘what-if’ planning
• Pre-shutdown scanning

Rework
• Rework is costly, and in some cases it can delay start-up
• Rework is a result of:
• Poor communication
• Time constraints
• Incompetent workers
• Incorrect material specifications (Quality Assurance)
• Insufficient information/instructions
• Lack of Quality Control
• Rework can be avoided by:
• Training workers
• Establishing QA/QC strategies prior to procurement and contracting
• Creating effective ITP’s (Inspection & Test Plans)
• Creating detailed Planned Job Packages (PJP’s)
• Implementing a Flange-Management Strategy
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Definitions
Establishing standard industry terminology will help to make sharing
knowledge more beneficial:
• Shutdown (STO budget)
• Non-regulatory, process integrity (molecular process systems)
• Turnaround (STO budget)
• Regulatory, asset integrity (piping, pressure vessels, PSV’s, etc.)
• Outage (OPEX / CAPEX budget)
• Maintenance/Project Work Orders requiring systems or equipment to
be off-line
• Maintenance (OPEX budget)
• Maintenance Work Orders that do not require systems or equipment to
be off-line
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The Destination
Many will tell you that the destination (goal) of a STO project is to execute it
On-time and On-budget; that’s not as impressive as it sounds. A STO project
is scheduled in order to support these three manufacturing principles:
• High Process Availability
• Operating at nameplate design with quality, conforming product to
meet customers’ needs
• High Equipment Reliability
• Ensuring equipment can meet its intended purpose when needed
• Low Risk/Cost
• Managing risk (effectiveness) and controlling costs (efficiency)
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Process Availability
100% Process Availability is only achievable if everything is spared; and at a
high cost, which makes it impractical. The balance between required process
availability losses and equipment reliability at the lowest risk/cost requires
the adaptation of a Reliability Asset
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Management Program Team made
up of:
• Operations,
• Maintenance, and
• Technical
The RAMP Team is accountable for
High Process Availability and High
Equipment Reliability at the Lowest
Risk/Cost

Ability to Influence STO Performance
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Effective and Efficient
The RAMP Team is responsible for Work Scope, Budget and Strategic
Planning (Effective), while the STO Project Controls Team is responsible for
Planning, Scheduling and Execution (Efficiency)
• Scope Creep is an Effective opportunity
• Discovery Work is an Effective and Efficiency opportunity
• Rework is an Efficiency opportunity
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Strategic Planning Phase
Planning & Scheduling Phase
Execution Phase Closure Phase

Key Performance Indicators (KPI’s)
The RAMP Team will establish the KPI’s and their related Targets. Navigating
the STO project will be aimed at achieving the KPI Targets.
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Key Performance
Indicators
Key Performance Targets Phase
Budget / Workscope Based on Risk/Cost Benefit Strategic Planning
Duration Based on Shutdown/Start-up and Longest-path
Planning and
Scheduling
Safety / Environment Zero Incidents Execution
Quality Zero rework, zero leaks Execution
Direct Wrench-time 55% Execution

The potential for a Perfect STOrm to arise on a Shutdown, Turnaround or
Outage is always a concern. Often you cannot avoid it. But you can learn to
navigate around, or through it by establishing these 3 high-performance
principles:
• Methodology
• Navigational road map
• Technology
• Navigational aids
• People
• Navigators
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Methodology
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Methodology
A navigational road map [business process] designed to convert data input
into a product or service output, efficiently. The methodology is supported
by tools, forms, standards, policies, procedures [best-practices], guidelines,
templates, checklists, controls, tracking, and KPI dashboards.
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Methodology (Navigational Road Map)
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Strategic Planning
Strategic Planning ensures that each Stakeholder [Discipline] contributes to
the achievement of the established KPI Targets for the Execution Phase:
Safety, Quality and Worker Efficiency.
Strategic Planning is accomplished by using a standard template in
conjunction with a Strategy Workshop.
Lesson-learned and Best-practices are the feedstock for each Strategic Plan.
When Safety, Quality and Worker Efficiency Targets are met, your STO
project will be the executed in the shortest duration at the lowest cost.
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Planning & Scheduling
Planning & Scheduling ensures that the STO Project Control Teams has
everything it needs to achieve the established KPI Targets for the Execution
Phase: Safety, Quality and Worker Efficiency.
Planned Job Package (PJP) must be assembled and reviewed by each Key
Stakeholder: Operations, Technical, Safety, Contractor/Execution, etc. to
ensure sufficient information is available to meet the established KPI Targets
for the Execution Phase.
Dynamic Schedule Management (DSM) must be implemented using a
defined Methodology, supported by Technology and competent People.
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Execution Strategy
Execution performance is a result of following a formal Methodology
supported by the best Technology and the most Competent People.
When all Strategic Plans are established, and Planned-Job-Packages are
developed, they combine to create the overall Execution Strategy.
Only then can a Plan be created and optimized to ‘Drive’ the STO project
with a STO Project Controls Team
• Planning & Scheduling
• Cost Management
• Execution Coordination
• Logistics
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Navigating your STO Project
STO projects are dynamic, ever-changing events. You must navigate by
driving, not by monitoring
The most fatal mistakes a STO Project Organization will make are:
• Not having a RAMP Team (model)
• Not following a formal Methodology
• Not implementing Strategic Planning
• Relying too much on Technology and People
• Not optimizing the Plan
• Using Look-ahead Schedules
• Trying to stick to a Plan
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Cost
Duration Man-hours
Optimize
the Plan

The Competency Matrix
People must not only be certified,
but qualified as well
Training & Coaching is vital to
ensure People are competent to
perform their assigned
responsibilities
Training & Coaching cannot exist
in the absence of a formal
Methodology, supported by the
best Technology
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Questions?
Ej Lister
Co-creator STOworx®
www.stoworx.com
ejlister@stoworx.com
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The Perfect Storm

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