Turnaround, Shutdown and Outage Management To my wife Liz First, last and always, to my sons Julian and Craig our hope for the future, and to my grandsons Jay, Callum and Adam, the fulfilment of that hope Turnaround, Shutdown and Outage Management Effective Planning and Step-by-Step Execution of Planned Maintenance Operations Tom Lenahan AMSTERDAM • BOSTON • HEIDELBERG •LONDON •NEW YORK • OXFORD PARIS • SAN DIEGO •SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO Butterworth-Heinemann is an imprint of Elsevier Butterworth-Heinemann is an imprint of Elsevier Linacre House, Jordan Hill, Oxford OX2 8DP 30 Corporate Drive, Suite 400, Burlington, MA 01803 First edition 2006 Copyright ©2006, Tom Lenahan. All rights reserved The right of Tom Lenahan to be identified as the author of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988 No part of this publication may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London, England W1T 4LP. 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You may also complete your request on-line via the Elsevier homepage (http://www.elsevier.com), by selecting ‘Customer Support’and then ‘Obtaining Permissions’ British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloguing in Publication Data A catalogue record for this book is available from the Library of Congress ISBN-13: 978-0-7506-6787-6 ISBN-10: 0-7506-6787-7 For information on all Butterworth-Heinemann publications visit our web site at http://books.elsevier.com Printed and bound in the UK 06 07 08 09 10 10 9 8 7 6 5 4 3 2 1 Working together to grow libraries in developing countries www.elsevier.com | www.bookaid.org | www.sabre.org Contents Preface vii Acknowledgements ix PART 1 THE PROCESS 1 1 Turnaround overview: context and strategy 3 2 Initiating the Turnaround 20 3 Validating the work scope 44 4 Pre-shutdown work 58 5 Contractor packages 64 6 Planning the Turnaround 74 7 The Turnaround organization 103 8 Logistics 117 9 Cost control 126 10 The safety plan 134 11 The quality plan 149 12 The communications package 162 13 Executing the Turnaround 168 14 Terminating the Turnaround 187 PART 2 THE MODEL OF EXCELLENCE 195 15 Real world application 197 16 Case study 1 – Designing an organization 208 17 Case study 2 – Work list control 215 18 Case study 3 – Contract strategy 222 19 Case study 4 – Cost control 228 20 Case study 5 – Logistics 236 vi Contents 21 Case study 6 – SASOL experiences in cost/risk optimization 242 22 Summing up – a reality check 257 Appendix APT-SCHEDULE 262 Index 267 Preface Part one of this book describes the process of managing Turnarounds. It defines the rational, chronological steps, from initiation to termination. In the Preface to the earlier edition I wrote the following words about the book: ‘I am not arrogant enough nor yet naive enough to believe that it is definitive, but it is a start, a foundation, if you like, upon which others can build.’ At the time I wrote them I didn’t suspect how true those words were. I sus- pected even less how much I still had to learn about Turnarounds and the peo- ple who do them and I had no suspicion at all about how many of my assumptions I would have to overturn in order to make the paradigm shift from someone on the inside looking out (a Turnaround Manager working for one large company with a single approach to Turnarounds) to someone on the outside looking in (as a Turnaround Consultant working with many compa- nies each with a different approach to Turnarounds and, equally important, a different operating context). The root of my paradigm shift was the conversion from the belief that: There is one right way to do Turnarounds, to a much deeper level of understanding that: There are basic principles that should be applied to effectively perform Turnarounds but the method of application will differ from company to company. I am still learning. Almost six years after the earlier edition of this book was published, the quest for excellence goes on. Each time I am called upon to audit, train, coach or consult with a client I invariably learn something that allows me to further hone the focus of the model of excellence. viii Preface Another welcome change that has occurred since the earlier edition was published is that there are now others (specifically Joel Levitt and Michael V. Brown) who have contributed books to the field and increased the general understanding of how these complex enterprises are planned and managed. Isalute them. Finally – looking to the future – the work I have done over the last six years has led me to the conclusion that the next stage in the development of Turnaround methodology, the way forward if you like, will be the application of systems principles to Maintenance in general and Turnarounds in particu- lar – the exploration of the relationships between the various elements of Turnarounds to uncover the complexity, the interconnectivity and the result- ant emergent properties that are generated. Only by understanding these can we truly understand Turnarounds. Tom Lenahan [email protected] Acknowledgements This book is the culmination of a ten-year quest to distil basic principles out of the rich and varied practice of Turnaround management. Many people have, over the years, contributed concepts, insights and suggestions which have added to the sum of my own knowledge and served to clarify the central theme of this book, namely that Turnaround management is a rational, coherent, process. Special thanks first to three people: to Professor Anthony Kelly, Central Queensland University (and Honorary Fellow, Manchester University School of Engineering), who saw enough merit in my work to suggest that it was worth publication, to Simon Smith, who contributed time, materials and the introduction to Chapter 1, and to my son and colleague Julian, who organ- ized the material for the initial draft of the manuscript and added some insights of his own. Many thanks also to John Harris, Manchester University School of Engineer- ing, who edited the complete text of the earlier edition, to Jonathan Simpson of Butterworth-Heinemann, and to the following colleagues for their part in the quest: Earlier edition Barry Stirling of ABB John Billington of Tioxide Eric Scott Ian Adams of Foster Wheeler Chris Greaves of ABB N. Sankara Narayanan of Hofincons India Steve Waugh of ICI Claire Gulliver of ICI Paints New edition The faculty and MSc students at Manchester University who ‘tried out’the Model of Excellence for me.
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