Case 1: Strategy makes the difference?
Case 2: Leuna TA world class?
Case 3: Likens a TA an Everest expedition?
Case 4: Real life example
Strategy makes the difference?
June 2002, SPX was commissioned to audit the preplanning and
preparations for the Turn Around (TA) 2004 project of Shell DEA
Heide refinery in Northern Germany. At SPX?s headquarters Sittard,
the Netherlands, SPX proprietary questionnaires, and tools were
tuned towards clients requisition and specific audit goals. On site,
SPX consultants audited with ?Cold Eyes? in approximately 20 Q&A
sessions, with a cross section of the TA staff involved, the status
quo of the project.
The fact that an owner, 2 years in advance of executing a Turn
Around, invites an independent auditor to evaluate the project is
clearly an example of ?Best in Class? strategic planning. Of course,
in this example, we are not entitled to elaborate on the results of
the audit but we like to share our methodology with you.
SPX uses its OARA? (Observe, Analyze, Recommend, Act) auditing
technique to balance the Q&A sessions and to feedback its findings
and recommendations not only to Refinery Management but to all
By adopting transparency in scanning and analyzing strengths,
weaknesses, opportunities, and threads in the TA project, the pace
is set for improvements and team building. SPX consulting practice
typically sees owners repeat these audits on a regular basis as part
of their strategic plan, to close the loop in every stage of the
An initial audit at the start of the TA project will be followed by:
? Set the Value Added Work List (prune the job list / incomplete
scope of work)
? Check on Readiness (all planning steps taken)
? ?Go ? No Go? for Execution (all execution partners aligned)
? Lessons Learned (what went well vs. what went wrong)
? Benchmark (where do you stand vs. the competition)
If a client is interested to have a second opinion or ?Cold Eyes? on
all, or on just one of these stages, SPX will be happy to execute
such an assignment. We invite you to get in touch with one of our
Leuna TA world class?
Early 2001 SPX was selected amongst a number of consultancy firms
to assist the project management of the new German MIDER refinery at
Leuna in its mission to execute a world class Turn Around in 2002.
The refinery was built in the late nineties as part of the
Leuna-2000 project, and for most of the refinery units, it was the
first statutory (T?) inspection ever. These units were amongst
others Primary Distillation, Vacuum Breaking, Fluidised Cat Cracker,
Hydrogenation, and Sulphur Recovery etc.
In first instance the Turn Around project was set up as kind of EPC
project with only one Main Contractor. This model is often seen in
the USA but does not find much appreciation and support in European
Turn Around projects. Consequently, the model of establishing an
owners Turn Around project management team with ?Unit Contractors?
for executing some 250.000 planned direct man-hours was set up. This
?Block Strategy Model? as SPX calls it, requires the management of
scope and job preparation, material requisitioning and ordering,
selection of contractors and making reservations for contractor
management, supervision and craftsman, developing shut down and
start up planning etc. by the owner.
The overall project management was in hands of the Leuna refinery
management and steering committee.
Contract Management, Quality Assurance, Safety Planning, Contractor
Guidance and Control including cost management of ?add-ons? were
tasks of the independent SPX experts in the owner?s team.
The TA execution phase started by the end of August and was
successfully completed mid October 2002. SPX expert staff, in key
positions in the preparation, planning and execution phase of this
TA project did help the Leuna project to become a success.
?Something to be real proud of!? as one of SPX site staff members
recalls. ?A real World Class Turn Around project, on time and within
Since company market entry SPX experts have been involved in several
?virgin? Turn Arounds.
In ?virgin Turn Around ?cases there is no ?TA-memory?. You have to
build strategy, team, methods, best practices, and procedures,
scope, planning, contractor selection etc. from scratch.
If you are being confronted with the first ever TA on your site or
if you would also like to execute World Class Turn Arounds feel free
to talk to some of our professionals at SPX. We invite you to get in
touch with one of our experts.
Likens a TA an Everest expedition?
Methanor at the AkzoNobel chemical park in the province of
Groningen, the Netherlands, commissioned SPX in the spring of 2002
to manage the Turn Aound project of its M#2 methanol plant.
This project combined three separate sub-projects:
1) The statutory inspection stop,
2) The execution of a PRIME capex project,
3) The execution of a control room and DCS revamp.
Every sub project was managed by a separate project team under the
umbrella of the overall TA-management team reporting to the steering
The execution strategy was to keep the TA execution period as short
as practically possible. Product demand was strong and the marketing
planning window for the TA was set for half October / end of
November 2002. In August many activities started already on site and
equipment, piping, steel structures, package units, E&I cabling etc.
were installed in a running plant environment under high alert
After the scheduled shutdown of the plant, Contractors and
inspection teams started with their jobs and the revamp commenced.
In a 24/7 schedule, the team progressed more than 100.000 man-hours
?Not everything went smooth,? reflects the TA-manager, one of SPX?s
senior consultants. ?We encountered quite some difficulties! A fall
gale with hurricane force and results of inspections in some of the
boilers set us back several days on our early completion schedule.
Moreover, the revamp of one of the furnaces was complicated due to
the limited working space available and high alloy steels to be
welded?. He continues: ?In parallel to top sports, the project
looked like a Mount Everest expedition. We prepared the team well in
advance, but when the execution phase has been started, you have to
continue to work and to improvise the best as you can, to control
the damage, to cope with stress and exhaustion, weather and wind
etc. Finally, when you set foot on the top, the most difficult part
of the expedition starts: to descent and bring back alive the entire
team to the base camp.
We have made it!
All TA-activities were executed without Lost Time Injuries and the
plant was brought back into operation?.
If you have multiple projects to integrate and execute in your Turn
Around and you would like to learn from our experience dealing with
such complex projects, we invite you to get in touch with one of our
Real life example
European Petrochemical Production Company.
Ethylene Plant production capacity > 500.000 t/a. Replacement value
> 500.000.000 EURO.
Develop a work process and implement a so called "Cold Eyes Review"
on the Scope Definition of a Steam cracker Shutdown / Turnaround in
order to optimize the Scope of Work.
|Order of magnitude Shutdown Cost exclusive capital investment
|Duration of the ?Cold
||several days spread over a 2 month period
Total client cost:
of pocket lump sum EURO 16.000/=
|Total client savings:
|Internal rate of return (IRR):
|Pay Out Time (POT):
||less than 1 year!
Provide Turn Around management consultancy services, inclusive
seconding SPX experts in the owners project team, to manage ?on name
and behalf of? the client the preparation and execution phases of
the TA with the ambition to complete a Word Class Turn Around.
The SPX consultants developed a customized Project eXecution Plan
PXP, set up the organisation with SPX consultants in key roles,
guided and controlled the preparation, contracting and execution of
The turn around was a great success, on schedule and within the
budget. No lost time injuries. Schedule reduction from 5 weeks prime
to prime to 4 weeks enabling the plant to operate 7 days longer
before the plant was actually shut down.
By appointing SPX experts in the drivers seat marketing gained EURO
5.000.000 in additional revenues.
Turn Around projects can be executed by the maintenance
organisation of a client. Technical expertise is most of the time
available no doubt. Setting however aggressive but realistic targets
is more difficult because this is not the ?nature? of the
maintainers. Execution of a large scope of work, every body wants to
have a gold plated revision, within a time frame with a lot of slack
and a high budget, 5-10% of replacement value, is often seen in the
business, especially when the product is doing extremely well in the
marketplace and revenues are high.
For more challenging and ?Value Added? execution of Turn Arounds you
need looking for consultants. If a client is interested to have its
Turn Around project scope valued by independent consultants and / or
to look at the possibility of hidden slack in your TA-schedule and
to set a sound TA execution planning base get in tough with one of