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Shutdown readiness review
The document outlines the Shutdown Readiness Review (SDRR) process, which is a systematic evaluation of preparedness for a shutdown event involving multiple stakeholders to meet defined objectives. It emphasizes the importance of conducting SDRRs at different lifecycle stages to mitigate risks related to scope, cost, quality, and safety. The document also details the specific elements involved in the SDRR process, including initiation, planning, execution, and the requirements for effective reporting.
Shutdown readiness review
- 1. Shutdown Readiness Review ANIL KUMARMALIK InternalInternal
- 2. Contents • Shutdown Dimensions •What is SDRR • Why SDRR • When – Numbers and timeline • SDRR 1 Elements • SDRR 2 Elements • How to conduct SDRR? • Who is should conduct SDRR? • SDRR Reporting • Conclusion InternalInternal
- 3. Shutdown Dimensions Shutdown isa major event with high stakes Cost Production Loss HSE Objectives : Scope, Cost, Duration, Quality, HSE InternalInternal
- 4. Shutdown Readiness Review(SDRR) • The systematic and independent review of readiness and alignment of all stakeholders to meet shutdown objectives. • Conducted at appropriate time of turnaround lifecycle and can be done more than once based on complexity of shutdown. Internal
- 5. Why - SDRR •There will be risk of NOT meeting one or more objectives - Scope, Cost, Duration, Quality, HSE if we don’t assess the readiness. • May have further negative consequences on revenue, reputation (not meeting customer commitments), HSE loss, penalties, low morale, plant integrity and reliability. • Informed stakeholders • Gated Process InternalInternal
- 6. How Many &When to do SDRR? • Will depend on complexity : Scope / manhours, duration, organization & team maturity, technology, competing events (Projects, TA, operation) • Typically done two times Internal Initiation Detailed Planning Pre-Execution Execution Scope Selection / Definition Close-out Internal SDRR-1 Initiation Alignment to business plan (production, customers, projects), Steering committee, budget authorization, High level objectives SDRR-2 End of Planning Phase Before starting pre-execution / execution – Readiness of scope, definition, detailed planning, documents (quality, HSE, workpacks etc), manpower and resources.
- 7. SDRR-1 Elements (endof Initiation phase) • Alignment to business plan (production, customers, projects) • Stakeholders identification and alignment • Leadership : Steering committee ◦ Appointment ◦ Terms of Reference • Driver and major riding activities • Budget authorization • KPI setting • Planning Team appointment • Milestones and timeline • Long lead materials procurement • Shutdown Charter approved and communicated InternalInternal
- 8. SDRR-2 : Elements(almost at the end of planning phase) InternalInternal Project Management Scope Management • Frozen List • Late Worklist Control • Completeness • Accuracy • Well Defined Risk Management • Risk Register updated • Remaining risk acceptable • New risk identification and mitigation Steering Committee • Composition • Authorities and responsibilities • Terms of Reference • Effectiveness • Alignment Planning & Execution Teams • Composition • Roles and responsibilities • Alignment • Capability Assessment and Development
- 9. SDRR-2 : Elements(continue) InternalInternal Supply Chain Management Materials Management • Materials list against scope • Tracking • Status • List of materials NOT expected to arrive Contracts Management • Contracts against scope • Contracts awards status • Key persons • Client-Contractors- SubContractors alignment Project Controls Schedule • Integrated including shutting down and start- up • Conflicts identified and resolved • Critical path 1st , 2nd & 3rd • Resource loading Cost Management • Cost Breakdown Structure • Cost Monitoring • Controls control • Change Approval Work Packs • List • Completeness • Approval • Distributed • Understood
- 10. SDRR-2 : Elements(continue) InternalInternal Execution Infrastructure and Resources • List • Completeness • Approval • Distributed • Understood Preparation • Tagging • Scaffolding • Pre-fabrication Shutdown & Start-Up • Procedures • Schedule • Systems sequence • Communication • Handover / Takeover Documentation • Execution Packs • Checklists
- 11. SDRR-2 : Elements(continue) InternalInternal Engineering Capital Projects • Scope integration • Schedule Integration • Part of TASC and Planning teams • Alignment Small Projects • Scope integration • Schedule Integration • Part of TASC and Planning teams • Alignment Quality • Quality Management System • Scheme of Examination • Inspection and Test Plan • Non-conformance management • Documentation HSE • HSE Management • Compliance Audit • Workforce Vs Safety Officers • Safety Culture • PTW Strategy Quality HSE
- 12. How to conductSDRR • Formal Appointment of SDRR Team • Prepare agenda & Plan for review • Review Checklist • Conduct review • Agreement on Strengths, Gaps and opportunities • Sharing of experiences • Opportunity to improve internal alignment InternalInternal Review Methodology Interviewing Document Review Observation / Physical verification
- 13. Who : SDRRTeam • By team : Not by single person • External : ◦ Must NOT be from Steering committee OR Planning & preparation team ◦ External consultant OR external to team (based on complexity and maturity of organization) • Competent : Experienced, trained, having interviewing, analytical, auditing, report writing skills. InternalInternal
- 14. SDRR Reporting • Comprehensivereport : Must cover all areas • Expected Vs Actual : Provide reference / basis documents • Share experiences : Lessons Learnt • Must have Gaps and proposed “Action Plan” • Agreement with auditee team lead • Present and agreement with Steering Committee • Must be presented to higher management InternalInternal 0 2 4 6 8 10 Project Control Project Management Execution Supply ChainEngineering HSE Quality SDRR Report Planned Actual
- 15. Possible Outcomes ofSDRR Go Minor gaps No major impacts Planning Team can close the gaps Go : Conditional Gaps observed which can impact TA objectives However, actions by TASC / Management / Planning Team can be taken Another “Review” to be done ONLY on gaps, and final decision to e taken later Internal NO Go Serious Gaps observed which can almost surely impact TA objectives The gaps can’t be closed to meet TA timeline. TA dates to be revised Internal
- 16. Conclusion • Effective ShutdownReadiness Review (SDRR) is MUST • Advisable to have at least two numbers of SDRRs • Must be done by independent with organization or by external consultant • Improves alignment with teams and contractors • Results in better predictability of SD outcomes • Improved SD performance InternalInternal
- 17. Internal About presenter Anil KumarMalik is post graduate in Mechanical Engineering and holding Project Management Professional PMP certificate. He is an accomplished professional with 23 years of experience in shutdown & turnaround management, maintenance system development, operational excellence and strategy development in multi- cultural multi-nationalities environment. He had participated, led and delivered over 40 large-scale and complex turnarounds projects in energy and petrochemical industries. He has presented in various international conferences on shutdown and turnarounds in Australia, Europe, Far-East, Asia and Middle East. He is involved in capability developed. Anil can be reached at anilkm132103@gmail.com Internal
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