B. Benomar, Contributor, Ottawa, Canada
Planned shutdowns (SDs) are critical events that can significantly impact production and expenditures. Poor planning and preparation can directly affect the success of any SD, making attention to detail imperative. A successful SD plan requires familiarity with assets, maintenance activities and relevant processes. It must also cover SD objectives, scope and resources, and develop contingencies to address potential risks to optimize SD duration, enhance reliability and uptime between SD cycles.
Over the past few decades, the management of SDs has evolved appreciably, with some organizations establishing comprehensive SD management systems and stringent processes, while others manage SDs through the short-term appropriation of SD routines and principals without long-term strategies and objectives.
This article will fill this gap and provide a step-by-step approach to SD planning and execution for organizations to adapt to their specific requirements. This article is presented in two parts. Part 1 addresses effective steps to prepare and plan a SD, while Part 2—to be published in the February issue—will examine steps for an effective execution of a planned SD.
Step 1: Enablers for effective SD management. Planned SDs are unique events that—although some are repetitive with cycles ranging from 1 yr–5 yr—are still considered non-routine and are essentially projects that fall within the ISO 21502-2020 definition of projects. Therefore, they should be managed like projects with the necessary enablers to guide, organize and manage successful SD planning and execution:
The LTSD plan includes information pertaining to maintenance jobs and projects to be executed once the plant is in SD conditions. The LTSD plan is a dynamic plan and should be regularly updated and presented to the SD steering committee for review and endorsement. Individual SD plans are generated from the LTSD plan as each SD opportunity is confirmed and more information becomes available.
Step 2: SD initiation. Individual SD planning should start as early as possible to accommodate anticipated impediments, such as the SD scope’s magnitude and complexity, the availability of planning resources, the plant’s location, and supply chain for spare parts, materials and services, among others.
Each SD is assigned a code number and a budget number, and a database is developed to record and track the jobs identified by their work order (WO) numbers in the computerized maintenance management system (CMMS). The database can be in the plant’s CMMS or built on Excel or other suitable applications.
SD drivers. The drivers that set the critical path and duration of the SD vary from plant to plant (FIG. 2), but in general, they fall under the following categories:
SD objectives. Many intentions and expectations determine the success of the SD. They can be expressed in terms of measurable indicators such as zero loss time injury (LTI), no job to be executed outside the drivers, no extension of duration, budget within 5%–10% and no rework, among others.
Timeline, timing and duration. The duration of the SD is set according to past experiences but should be adjusted according to the extent of the scope freeze, the complexity of the jobs and the critical path. The timing of the SD and the set date are based on many factors—primarily the plant’s geographical location and weather conditions—to avoid periods and hazards associated with weather conditions like rain, heat, cold and wind, operational requirements and production stock levels.
There is no defined timeline to start planning and preparation. Some organizations have dedicated planners that work year round on planning an SD. The planning phase can range from 6 mos–24 mos before the scheduled SD. However, history and how well or poorly the organization performed previous SDs will be the reference and measuring stick, as well as considering the vulnerability of supply chains for spares, materials and services that are dependent on external factors. FIG. 3 provides an overview of the timeline for SD preparation, including the start of the planning phase, JP preparation, scheduling, execution and closeout.
Step 3: Scope identification. The initial scope of the SD is defined by the list of jobs and requests developed by the planner from information obtained from affected departments. To ensure the effectiveness of this exercise, it is essential that the concerned departments assign experienced representatives. The scope identification exercise is the foundation of the SD, and it is essential that all stakeholders are aligned to propose and include only those jobs that can be performed if the plant is in SD condition. The list of jobs should be challenged with due diligence, keeping the SD objectives in mind.
The sources of the initial list include:
The initial list should provide sufficient information, justifications, documents and reports to assess scope, duration, cost and SD requirements. To achieve this, the planner should organize kickoff meetings to align the different departments with the SD objectives and criticality of the initial list, as well as ensure that all concerned departments are consulted and represented. This timeframe also includes the opportunity to identify jobs with unusual or complex requirements, and jobs with issues like safety risks, logistics, and poor or unclear information, among others. The outcome of this initial scope identification phase is a list of potential jobs that will be proposed for review and validation. The list is formalized in the SD database.
Step 4: Scope validation. This is a decisive step in determining that jobs in the scope cannot be executed without the plant in SD conditions. This is also an opportunity to confirm whether the right and experienced people have been involved in the scope identification and screening process. All jobs should be challenged thoroughly with input from operations, engineering, maintenance and reliability departments.
The validation process involves a series of meetings with the SD steering committee, chaired by the head of planning, with the participation of stakeholder representatives. The objective is to minimize the duration of the SD without compromising the objectives of the SD list. The review should address the following:
All meetings should be documented by the planners, and the outcome should be used to update the SD jobs database, maintaining only the jobs that have been validated and removing those that have not.
Step 5: Risk assessment. The risk assessment targets two types of jobs with the objective to ensure that potential risks are identified and mitigated. For this exercise, the organization can use its own methodology, risk matrix and risk assessment process:
Step 6: Scope freeze. Scope freeze is a milestone beyond which no new job will be accepted in the SD scope. For this, the head of SD planning and the planners should initiate preparatory meetings with concerned departments to provide and gather information prior to presenting to the SD steering committee for endorsement.
The challenges and pressures to add new jobs after the scope freeze target date should not be underestimated. Strict leadership, organizational discipline and commitment are required by all to comply with this strategy. However, a stringent procedure should be put in place to allow for a review of justifications for late jobs. Late-identified potential jobs require validation by the planner prior to presenting the plan to the SD steering committee for approval and inclusion in the scope freeze.
Step 7: Budget validation. The budget is refined at the different phases of the planning phase, starting from the original estimate on the LTSD plan to the scope freeze, according to historical data from previous SDs, cost of routine jobs for inspection, recertification of pressure vessels, and first-time extraordinary jobs that require procurement and resources. All jobs that may impact the budget should be identified with their cost estimate for materials, labor and services.
Budget and contingencies in +/– percentages at the different phases (FIG. 4) include:
Step 8: JP preparation. SD planning involves the preparation and development of JPs, including detailed activities, durations, resources, materials, logistics, procedures, and relevant drawings and documents. JPs are vital to the success of a SD and can be prepared using the following approach: prioritize, develop and review, and approve. JPs should be prioritized according to the following criteria (FIG. 5):
JP content. The expectations are to prepare and develop JPs that contain all the necessary information to carry out the work safely and efficiently, with all issues regarding resources, materials and tasks identified and addressed. Whether in a physical or electronic format, the JP is characterized by the following:
To determine exactly what should be included in the JP, develop a checklist, or adapt an existing one, to ensure that the requirements of the JP are fully covered. The checklist, like the one shown in TABLE 1, provides details of typical JP content.
JP review and approval. The planner should distribute the JPs for review and approval by the relevant stakeholders to ensure agreement and compliance with the expectations. The planner is responsible for ensuring that all JPs are endorsed and that all comments are incorporated into the final version.
Step 9: Resources. The following are resources needed for SDs.
Materials. All materials required for the SD are issued and tracked as per the materials procurement plan, which includes requisitions for stock items, purchase requisitions and orders for non-stock items, and contract requisitions for the purchase of equipment and prefabrication work for projects, among others.
Labor. Sourcing, selecting and hiring the right contractors with the necessary skills and experience for a short period of time is one of the most challenging aspects of SD planning. One effective approach for the hiring of contractors and labor requires moving from short-term, rigid service-type agreements to long-term partnership agreements. Many options are available, and each has its merits and drawbacks. The best option is to work within an extended organizational relationship with one or many contractors specialized in different disciplines. This allows for long-term contractual relationships and advanced form integration. This can be done through multiannual, blanket-type contracts with rates for labor, maintenance equipment, prefabrication, etc. The contractual formalities—including the scope of services, terms and conditions, and contractors’ responsibilities—should be detailed to avoid litigations and conflicts. Contracts should be finalized and signed at least 3 mos–6 mos prior to the SD start date to allow enough time for labor screening and selection prior to mobilization.
Logistics. This topic includes the identification of requirements and initiating contracts for hiring materials and labor, and providing services in case these resources are not available in-house for lifting (cranes, lifting gears, specialized manpower), scaffolding (materials and labor), insulation and painting (materials and labor), special equipment and tools (e.g., diesel generators, air compressors, welding machines, hydro-jetting machines, online machining equipment for flanges, leak-sealing equipment for valves).
Takeaway. Planned SDs combine complex arrays of processes ranging from safety, maintenance, inspection, operations and logistics to commercial and contracts. Adopting a step-by-step approach and methodology will bolster the effectiveness of SD planning and preparation. The planning phase can make or break SD execution, and it is in the interest of organizations to act in ways commensurate with their SD strategies and objectives. Poor preparation or not fully considering all the steps for thorough SD planning may have dire consequences during the SD execution phase in terms of safety, duration, and higher production loss and expenditures. HP
Benourine Benomar has more than 35 yr of experience in projects, maintenance management and reliability of liquefied natural gas (LNG), liquefied petroleum gas (LPG) and offshore oil production facilities. He has worked with major oil companies like SONATRACH (Algeria), ADNOC Group (UAE) and Technical Consultant EP2C Energy (Ireland). Presently, Benomar works as a freelance consultant. He earned a BS degree in mechanical engineering from Plymouth Polytechnic in the UK, and an MBA from Nancy2 University in France.