While turnaround maintenance can be a expensive, messy affair, it is essential to asset performance. They have rarely been a focus of companies from a cost or value creation perspective. In today’s post-pandemic world, as companies struggle to cope with the new normal, effective turnarounds can be a strong source of cost savings, quality, and uptime improvement and risk management, providing an unbeatable source of competitive advantage to companies.
Recent events only enforce this viewpoint. For example, global specialty chemicals production was no fewer than eight percent below pre-pandemic levels for almost all of 2020. Maintenance excellence can be upheld through an overall maintenance strategy, one that takes preventative, corrective, predictive, and turnaround maintenance into consideration.
Here are ten best practices that are guaranteed to get the most out of your turnaround:
- Design a decade-long schedule
For oil and gas companies aspiring to optimize facility and portfolio planning, creating and pursuing an all-plant turnaround maintenance schedule for the coming 10 years would be prudent. Plants are capable of operating for multiple decades, and their typical timeframes for investment and deterioration are not compatible with limited timeframe plans. A 10-year maintenance schedule will also ensure companies benefit from insights concerning inefficiencies and optimization opportunities.
2. Ensure multi-year budgeting horizon
Under normal circumstances, budgets are approved for expenses incurred in the following year. However, this timeframe is not actionable for turnaround maintenance, inevitably driving cost rises and procurement delays. Companies should ensure the budget approval process is altered in a way that budget projections are secured one year before real-time turnaround maintenance. This approach must take the 10-year plan into consideration, which will facilitate advanced budgeting and longer lead time approvals.
3. Plan ahead for a smooth closeout process
For years, post-turnaround maintenance activities have been somewhat neglected, and firms should improve the post-turnaround maintenance process to ensure a hassle-free closeout and preparedness for future projects. A structured process revolving around three key periods is recommended, namely ahead of restarting the plant, within two weeks to one month of the restart date, and up to three months following the restart.
4. Implement a rigorous stage-gate scope challenge process
Companies can address numerous scope-related problems through a stage-gate decision process, one with transparent process flows and criteria.
5. Introduce a champion and challenger process
Formalizing champion and challenger roles to ensure high demands are met along the turnaround maintenance planning and scope process is another imperative. Identifying the right challengers can be done from within the company or externally and they may be dedicated turnaround maintenance experts, specialists in specific technologies or systems, or people brought in to fill other skill gaps like major project management. They can provide an objective and unbiased point of view across the turnaround maintenance process, timelines, critical paths and resources, and an independent assessment of readiness, informing the final Go or No-Go decision 6 months before the turnaround maintenance. For the best possible outcomes, scope challenges deployed with the challengers must be deployed before the scope freeze.
6. Optimize maintenance and operations organizational structure to promote accountability
Turnaround maintenance organizational structure must promote focus and accountability on a case-by-case basis and ensure correct load balancing. Moreover, it must adhere to best practices, with personnel capable of carrying out their respective roles. Full visibility is essential, and teams and hierarchy members must be adequately equipped with all activities accounted for.
7. Continuously build technical expertise
Companies should implement a capability-building program to augment technical team skills. It is important to note that reliance on general maintenance people is often ineffective and not without risk. Therefore, companies should strive to build capable technical teams that boast turnaround maintenance experiences.
8. Create suitable KPIs to drive ownership
Correct KPIs are key to heightened collaboration, driving collective responsibility, and regulating the turnaround maintenance process. Furthermore, they can offer exclusive oversight, accountability, and ensure objectives are aligned. As such, every project member should share joint KPIs for the cost and duration of turnaround maintenance, as well as those for scope freeze, schedule amendments, and other performance areas.
9. Abide by a plant-specific optimization philosophy
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) margins must not be overlooked, and companies should define specific optimization philosophies based on the margin of each plant.
10. Embrace next-generation planning tools and technologies
Companies should unify existing tools and new technologies, which will boost the overall turnaround maintenance process. The complexity that comes with turnaround maintenance shutdowns means advanced planning and scheduling tools are critical to several areas, including tracking tasks, milestones, timing, staffing, procurement, and interdependencies.
At present, the ongoing pandemic-driven turbulence has no expiration date, while there is no standout route towards economic resurgence and recovery. As such, now is the time for heavy manufacturing and processing companies to proactively enhance processes and boost their profitability. Turnaround maintenance represents an opportunity to reap the rewards of success in both these areas. The approach outlined can help companies towards realizing their aspirations.
10 best practices to reimagine turnaround maintenance
While turnaround maintenance can be a expensive, messy affair, it is essential to asset performance. They have rarely been a focus of companies from a cost or value creation perspective. In today’s post-pandemic world, as companies struggle to cope with the new normal, effective turnarounds can be a strong source of cost savings, quality, and uptime improvement and risk management, providing an unbeatable source of competitive advantage to companies.
Recent events only enforce this viewpoint. For example, global specialty chemicals production was no fewer than eight percent below pre-pandemic levels for almost all of 2020. Maintenance excellence can be upheld through an overall maintenance strategy, one that takes preventative, corrective, predictive, and turnaround maintenance into consideration.
Here are ten best practices that are guaranteed to get the most out of your turnaround:
For oil and gas companies aspiring to optimize facility and portfolio planning, creating and pursuing an all-plant turnaround maintenance schedule for the coming 10 years would be prudent. Plants are capable of operating for multiple decades, and their typical timeframes for investment and deterioration are not compatible with limited timeframe plans. A 10-year maintenance schedule will also ensure companies benefit from insights concerning inefficiencies and optimization opportunities.
2. Ensure multi-year budgeting horizon
Under normal circumstances, budgets are approved for expenses incurred in the following year. However, this timeframe is not actionable for turnaround maintenance, inevitably driving cost rises and procurement delays. Companies should ensure the budget approval process is altered in a way that budget projections are secured one year before real-time turnaround maintenance. This approach must take the 10-year plan into consideration, which will facilitate advanced budgeting and longer lead time approvals.
3. Plan ahead for a smooth closeout process
For years, post-turnaround maintenance activities have been somewhat neglected, and firms should improve the post-turnaround maintenance process to ensure a hassle-free closeout and preparedness for future projects. A structured process revolving around three key periods is recommended, namely ahead of restarting the plant, within two weeks to one month of the restart date, and up to three months following the restart.
4. Implement a rigorous stage-gate scope challenge process
Companies can address numerous scope-related problems through a stage-gate decision process, one with transparent process flows and criteria.
5. Introduce a champion and challenger process
Formalizing champion and challenger roles to ensure high demands are met along the turnaround maintenance planning and scope process is another imperative. Identifying the right challengers can be done from within the company or externally and they may be dedicated turnaround maintenance experts, specialists in specific technologies or systems, or people brought in to fill other skill gaps like major project management. They can provide an objective and unbiased point of view across the turnaround maintenance process, timelines, critical paths and resources, and an independent assessment of readiness, informing the final Go or No-Go decision 6 months before the turnaround maintenance. For the best possible outcomes, scope challenges deployed with the challengers must be deployed before the scope freeze.
6. Optimize maintenance and operations organizational structure to promote accountability
Turnaround maintenance organizational structure must promote focus and accountability on a case-by-case basis and ensure correct load balancing. Moreover, it must adhere to best practices, with personnel capable of carrying out their respective roles. Full visibility is essential, and teams and hierarchy members must be adequately equipped with all activities accounted for.
7. Continuously build technical expertise
Companies should implement a capability-building program to augment technical team skills. It is important to note that reliance on general maintenance people is often ineffective and not without risk. Therefore, companies should strive to build capable technical teams that boast turnaround maintenance experiences.
8. Create suitable KPIs to drive ownership
Correct KPIs are key to heightened collaboration, driving collective responsibility, and regulating the turnaround maintenance process. Furthermore, they can offer exclusive oversight, accountability, and ensure objectives are aligned. As such, every project member should share joint KPIs for the cost and duration of turnaround maintenance, as well as those for scope freeze, schedule amendments, and other performance areas.
9. Abide by a plant-specific optimization philosophy
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) margins must not be overlooked, and companies should define specific optimization philosophies based on the margin of each plant.
10. Embrace next-generation planning tools and technologies
Companies should unify existing tools and new technologies, which will boost the overall turnaround maintenance process. The complexity that comes with turnaround maintenance shutdowns means advanced planning and scheduling tools are critical to several areas, including tracking tasks, milestones, timing, staffing, procurement, and interdependencies.
At present, the ongoing pandemic-driven turbulence has no expiration date, while there is no standout route towards economic resurgence and recovery. As such, now is the time for heavy manufacturing and processing companies to proactively enhance processes and boost their profitability. Turnaround maintenance represents an opportunity to reap the rewards of success in both these areas. The approach outlined can help companies towards realizing their aspirations.
Related