Quaker Process Industry Maintenace Performance Improvement

Maintenance Optimization Planning
&
Upgraded Performance Solution
Contractor and Company Perfomance Improvement Program
Routine Maintenace, T/A’s and Small Projects
April 2013
Bob Snell
MOP UP Solution

Agenda
2
• Quaker Group Introductions
• Quaker Group Relevant Qualifications
• Maintenance Optimization & Performance Upgrade (MOP UP)
– Integrated Performance Discussion (Reliability & Planning)
• Quaker Group Site Diagnostic & Improvement Plan
– Approach
• Quaker Group Maintenance Performance Improvement
– Sustainability Discussion
• Quaker Group Maintenance Performance Improvement
– Productivity Discussion
• Quaker Group Maintenenace Improvement
– Implementation Discussion
• Operations, Maintenance and Engineering (O.M.E.) Interface Analysis
• Quaker Unit Rates & Unit Rate Contracts
• Quaker Application of Unit Price
– Contracting Solution
• Appendix
– Process Maps

Bob Snell - Quaker Group Partner
 Management consultant to the global oil and chemical industry for
20 years in the areas of:
– Strategy
– Operations
– Organization
 Operating background in the petroleum industry has covered:
– Process engineering
– Marketing
– Line management positions
 Functional experience with Exxon Company U.S.A. and Exxon
Chemical Americas in:
– Operations
– Supply Coordination, Economics and Planning
– Marketing
– Process and project engineering
 BS in Chemical Engineering, MBA and JD
Introductions
4

Larry Lester - Quaker Group Senior Consultant
 Over 30 years ExxonMobil Baytown (largest US refinery)
operations experience
– Top tier Solomon site in all categories
 ExxonMobil Work Management Second Level Manager and Site
Advisor
– Participated on a Team to write ExxonMobil worldwide
maintenance best practices for Planning, Scheduling and
Executing day-to-day routine maintenance jobs
 Member and Leader of ExxonMobil North and South America Work
Management Network
– Wrote, sponsored and implemented at least 15 Best Practices
to improve Planning, Scheduling and Execution
Introductions
5

Introductions
Larry Lester - Quaker Group Senior Consultant (Continued)
 ExxonMobil Area Maintenance Second Level Manager
– Responsible for managing day-to-day maintenance for 50% of
the Baytown Refinery
– Supervision of 13 First Line Supervisors and 200 field
technicians
 Designed and implemented Peer Assists to other sites on how to
implement Work Management practices and tools.
 BS and MS (Stanford) Electrical Engineering
6

Andy Callegari - Quaker Group Partner
 Dr. Andy Callegari Quaker Group Partner. Andy is a Partner in the
Energy practice of The Quaker Group and is based in the
Washington, DC area. Andy has 27 years of ExxonMobil experience
as a manager in Research and Engineering Technology focused on
the Refining and Supply businesses. As a manager with ExxonMobil
he has developed strategies aligned with key business drivers. Andy
has managed the development and deployment of a wide range of
technologies leading to competitive advantage at ExxonMobil. Some
of these initiatives include: plant optimization; process control;
reliability and maintenance; and analytical and
equipment technologies.
7
Introductions

8
Introductions
Andy Callegari - Quaker Group Partner (Continued)
 Specific examples of Andy’s experience as leader for major multi-
year initiatives at ExxonMobil Corporation include:
 Implementation of Global Systems for Energy Management (GEMS)
 A global Reliability and Maintenance program for upstream,
downstream and chemicals
 Providing R&D and technology management in global margin
improvement program involving industry leading molecule
management initiative (MMP)
 Andy has led, managed and executed numerous global programs for
ExxonMobil Corporation. He has managed world-wide engineering
divisions of 125-150 engineers and scientists as direct reports. Andy
has also led applications of technologies to change management
initiatives involving functional leadership for thousands of employees
across all global regions.

9
Introductions
 These initiatives have involved an integrated approach to
deploying management systems for global hydrocarbon
businesses. The majority of change management initiatives have
been comprised of best practices, technology and leadership
components.
 Andy also has in-depth experience working with vendors and has
led the development of vendor alliances at the president l level.
One of these vendor alliances led to the de facto standard for
refinery process control technology. Andy’s experience spans
executive leadership from roles in fuels research in the laboratory
to leading technology applications and processes in oil refineries,
chemical plants and upstream facilities.

10
Introductions
 Andy has a strong combination of management and
leadership experience and the ability to work with senior business
management and plant personnel. Andy’s background in Applied
Mathematics provide a solid base for technical understanding and
analytical skills in leading and executing global initiatives in a very
large, complex industry leading organization.
 Prior to joining Exxon Andy held several academic positions in
Applied Mathematics and Applied Science at New York University in
New York City, as well as the State University of New York. Prior to
Andy’s 27 year Exxon career he was a consultant to the US Navy,
NASA and the US Department of Energy. Andy holds a BS., MS,
PhD – Applied Mechanics & Math.

Gil Marmol - Quaker Group Partner
Gil is a Partner in the Energy practice of The Quaker Group and is
based in Dallas. Gil was a McKinsey & Co. Director (Senior Partner)
that worked in the Chicago and Mexico City Offices before moving to
Dallas in 1983. Gil specializes in Performance Improvement in the oil
and gas and chemicals industries. Gil was a leader in McKinsey’s
organization and business process redesign practices.
 Provides advisory services and investment capital to early stage
technology companies.
 Worked with leading private equity firms in the 2002 acquisition of
an Indian based business process outsourcing company – taken
public in 2006- and a US based physician practice outsourcing
company.
 Part of the executive management team that led the EDS
turnaround that restored growth-profitability and generated share
price performance at twice the peer group average. 11
Introductions

Gil Marmol - Quaker Group Partner (Continued)
 Designed and implemented a market focused organization and
supporting management processes with both geographical and
industry dimensions
 Led major performance improvement projects with major profit
impact including S G & A expense reduction of over $100 million in
2006
 Led the acquisition of MphasiS which extended the EDS foot print in
India and the divestiture of AT Kearney
 Developed the business process outsourcing strategy and
architected the Excellerate Human Resource Outsourcing joint
venture with Towers Perrin
 As CEO and Director, developed the concept for and led the
creation of Luminant, one of the largest firms in the Internet
professional services industry.
12
Introductions

 Identified the opportunity to use a consolidation strategy to create a
nationwide firm.
 Conducted a nationwide review of the private firms in the industry,
selected best candidates and reached acquisition agreements with
eight firms.
 Created Luminant in a September 1999 IPO that both funded the
acquisition of the eight private companies and provided working
capital for Luminant.
 Integrated the acquired firms into a single operating entity and
achieved a profitable revenue run rate of $160 million/year in the
second quarter of 2000.
 Secured funding in September 2000 to provide growth capital for
Luminant’s second year of operation.
13
Introductions

 As Vice President and Chair of the Operating Committee, held a
variety of senior management positions. Grew sales from $350
million in 1995 to $1 billion in 1998 and laid the foundation for its
February 1999 IPO.
 Chaired the operating committee, which managed the operations of
the company.
 Developed the strategy for, and negotiated key long-term contracts
with major clients, including the $200 million/year, ten-year strategic
alliance with UBS.
 Held key operating roles - head of the technical infrastructure
organization (data centers and networks) and chief financial officer.
 Completed several acquisitions, including the purchase of a leading
technology organization specializing in digital commerce, and a
consulting firm specializing in payment systems.
14
Introductions

 Served on the board of directors of SYSTOR, the largest Swiss
technology services company, jointly owned by UBS and Perot
Systems.
 As McKinsey & Company Director (Senior Partner) worked in the
Chicago and Mexico City Offices before moving to Dallas in 1983.
Drove the Dallas Office through 10-fold growth in the 1983-1995
period.
 Over a 10-year period, a major consumer goods company increased
operating profits by two and one-half times, and market share to
over 50 percent. All major domestic competitors exited or
retrenched. Internationally, businesses were built in Europe, Latin
America, and the Pacific Rim, with dominant competitive positions.
15
Introductions

 Over a five-year period, a major US railroad increased its net
income by nearly 100 percent and tripled its market value. Through
a major acquisition, the competitive structure of the US industry was
reshaped and the company increased its revenues and profits by 50
percent.
 Over a five-year period, a leading energy company established a
leadership position in two of the largest US energy markets.
 Over a two-year period, a large but troubled diversified industrial
conglomerate regained a sound financial base and reshaped its
entire portfolio of businesses.
 Leader of the organization and business process redesign practices.
Completed a study of high performing organizations; this work was
reported in the Wall Street Journal and underpins McKinsey’s
organizational work around the world.
16
Introductions

 Published articles in The McKinsey Quarterly on information
technology management and on issues in the insurance industry in
Best’s Review.
 Member of the personnel committee that makes senior partners
election decisions.
Community and Education
 Member of the board of the Center for a Free Cuba in Washington
DC.
 MBA, With Distinction, From The Harvard Business School – 1978
 BA, Magna Cum Laude, in Engineering and Applied Physics from
Harvard College - 1975.
 Fluent in Spanish.
17
Introductions

ExxonMobil Baton Rouge Planning Improvements
 Evaluated maintenance planning practices and designed site specific solutions
 Conducted on site training for approximately 30 planners using estimating standards
 Implemented Planner assessments and grading process
 Developed end of job sustainability model for site
 Conducted 3 day onsite Planner Training
Gulf Coast Planner Training Conference
 Conducted offsite planner training for several refineries and chemical plants
 Trainining included real world assignments with industrial pictorials
 Received very high course ratings
 Several sites have requested additional on site support
Recent Projects
19

Case Experience: Competitive
Assessments & Strategy - Energy
20
Client Business Context The Quaker Group Approach and Outcome
Casework Credentials
European
National Oil
Company
 Led an engagement that
identified least cost
competitive clean product
suppliers as well as a robust,
market based basis for
make-or-buy refined product
economics.
 For an Eastern European National Oil Company provided a
competitive analysis of potential clean product suppliers to
meet indigenous demand. The analysis included modeling over
100 Western European, Eastern European, Mediterranean, and
North African refineries to determine potential least cost clean
product netback suppliers.
 The analysis formed the basis for discussions regarding joint
ventures, strategic alliances, and toll processing arrangements.
Large
international
Integrated Oil
Company
 Performed a rigorous
analysis of the impact of US
EPA Clean Air Act
Amendment mandated limits
on US gasoline BTX levels.
The analysis led to a rational
basis for intra-company
transferring pricing between
the refining and chemicals
business units.
 For a major U.S. Oil Company provided a strategic competitive
assessment of their North American hydrocarbon solvents
business. The scope of the work included an analysis of the
break-even economics associated with benzene, toluene, and
xylene (BTX) supply and demand in a post reformulated
gasoline (RFG) environment in the U.S. and Canada. Refinery
modeling, gasoline blending, and BTX transportation logistics
were the primary quantitative aspects of this work.
Examples –
Not Exhaustive

21
Regional
Integrated US
Oil Company
 Identified best case liquid
hydrocarbon transportation
business opportunities that
led to incremental crude
supply sources at
competitive netback prices..
 For a major international West Coast oil company provided a
strategic assessment of liquid hydrocarbon transportation
business opportunities in Latin America. The scope of the
engagement included current and projected crude oil, clean
product, and natural gas liquids supply and demand.
 The strategic assessment included current and projected
barriers to foreign participation in each business sector along
with the current and projected competitive environment. The
client objective was to leverage core competencies in liquid
hydrocarbon transportation with potential Latin American
partners in order to access new crude oil supply sources.
Regional US
West Coast
Refiner and
Marketer
 Identified most probable,
highest netback markets for
marginal clean products
production for a US West
Coast Refinery and Marketer
that led to an uplift in
tributary spot market
petroleum product price
realization.
 For a major West Coast refiner and marketer developed an
Asia Pacific business entry strategy for their downstream
businesses. The scope of the analysis included individual
country characterizations of the current and projected
investment climate, competitive environment, economic and
fiscal factors, and regional refined product price forecasts. A
critical aspect of the analysis included Asia Pacific price setting
mechanisms and trade projections.
Examples –
Not Exhaustive

Case Experience: Operations
Performance Improvement - Energy
22
European
National Oil
Company
 Provided rigorous
assessment of national oil
company’s distribution
network that led to a
consolidation of terminal
assets and transportation
costs leading to a cost
reduction of up to 30%.
 Provided consultation to a Central European National Oil
Company regarding the rationalization of clean product
distribution assets. The engagement involved training and
mentoring local consulting staff as well as the client team. The
deliverable involved development of an LP model for all of the
country’s clean product transportation and storage assets and
subsequent recommendations leading to a reduction in fixed
and variable costs of up to 30%.
Large
international
Integrated Oil
Company
 Performed an analysis of a
large national oil company’s
refining and marketing
downstream assets that
identified cost and yield
enhancements leading to
margin improvement of up
to 35 cents per barrel.
 Completed and presented a Benchmarking study of the Saudi
Arabian Marketing and Refining Company’s wholly owned and
joint venture refineries. The scope of the study included
opportunities for continuous improvement in the areas of
operating cost reduction, yield enhancement, asset protection,
inter-divisional and intra-divisional interfaces and human
resource management.
Regional
Integrated US
Oil Company
 Identified and implemented
best practice operations
performance evaluation
processes that led to top
quartile operating cost and
normalized high value
products yield.
 For a Canadian independent refiner and marketer developed
enhanced unit-level reporting and operator performance
measures for a 200,000 BPD top-quartile refinery. Collected
information on a unit level (such as feeds, energy consumption,
catalyst, yields, etc.) and trained operators to utilize such
information to make daily and hourly decisions to uplift the unit
or reduce costs.
Examples –
Not Exhaustive

Performance Improvement - Energy
23
Eastern
European
National
Petrochemical
Company
 Provided operations
improvement advice to a
company emerging from
communism into a free
market system. The work led
to increases in free cash flow
and a higher capitalized cash
flow valuation in a public
equity offering.
 For an Eastern European National Chemical Company
provided a benchmarking analysis and valuation on the basis of
capitalized cash flow to identify areas for profitability
improvement. The purpose of the study was to improve the
profitability of this national petrochemical company prior to
privatization through the issuance of foreign equity capital.
Regional US
Refiner and
Marketer
 For the executive committee
of a niche U.S. refiner and
marketer provided business
formation assistance to
maximize shareholder value.
 The assessment included potential joint venture or strategic
alliance partners to form separate companies that would allow
for the spin-off of underperforming assets without raising the
company’s cost of capital. The scope of work included
characterizations of all West Coast refiners and marketers on
the basis of supply security and competitive retail position in
various geographic areas.
Examples –
Not Exhaustive

Improvements - Oil and Gas
24
Large regional
US
Refiner/Chemic
als
 Led a team of Engineers,
First Level Supervisors and
Programmers to design and
implement site operations
and maintenance
improvement practices.
Reduced overall costs by
15% to 30%.
 Evaluated existing practices and identified productivity and cost
gaps. Designed , implemented, trained and coached
organization on how to install new practices and capture cost
savings. Realized a 15% to 30% savings across all operations.
 Achieved 1st Quartile Solomon performance.
Large regional
European
Refiner
 Conducted diagnostic and
peer assist to reduce
maintenance costs by
streamlining processes.
 Conducted a benchmarking analysis of the maintenance
functions for a major European refining company,
recommended Work Selection, Planning, Scheduling and
Execution improvements along with 20% staffing reductions.
Large
integrated US
Oil and Gas
 Managed maintenance for
half of the site operating
facilities and realized
improved Safety and cost
reductions.
 Provided leadership to execute maintenance using
improvement techniques. Trained direct reports to become
better leaders and expect improved performance from their
field crews.
 Set new Safety expectations and led group to a 7 year string
without a recordable injury.
Examples –
Not Exhaustive

Improvements - Oil and Gas
25
South America
Oil and Gas
Refiner
 Conducted a site peer assist
and diagnostic to reduce
operating costs.
 Evaluated existing Planning , Scheduling and Execution
practices and recommended organizational, system and work
process changes to reduce field staffing by 30%.
 Recommended changes to improve safety performance.
Americas Oil
and Gas
Refiners
 Led Network of Maintenance
Second Level Managers to
design improvement Best
Practices.
 Designed and implemented majority of Best Practices being
used by all sites to achieve maintenance efficiencies and
staffing reductions.
Americas Oil
and Gas
Refiner
 Solomon Rankings
Improvement – Mass
Balance
 lead an effort to improve their overall refinery boundary material
balance from a “lowest quartile” Solomon ranking. This effort
determined and corrected the factors leading to a 98.5%
balance and improved it to a 99.8% balance overall without
significant cost requirements. The main drivers were finding
and correcting major errors in the calculations as well as
making sure that the data was correct and verifiable.
Produced guidance for on-going correction of unit to unit
material balance to correct as much as +/- 40% unit imbalance
to provide a targeted +/- 1% balance. Taken in total, this has
been identified to result in potential savings of greater than
$100MM annually.
Examples –
Not Exhaustive

26
European
National Oil
Company
 Led an engagement that
identified least cost
competitive clean product
suppliers as well as a robust,
market based basis for
make-or-buy refined product
economics.
 For an Eastern European National Oil Company provided a
competitive analysis of potential clean product suppliers to
meet indigenous demand. The analysis included modeling over
100 Western European, Eastern European, Mediterranean, and
North African refineries to determine potential least cost clean
product netback suppliers.
 The analysis formed the basis for discussions regarding joint
ventures, strategic alliances, and toll processing arrangements.
Large
international
Integrated Oil
Company
 Performed a rigorous
analysis of the impact of US
EPA Clean Air Act
Amendment mandated limits
on US gasoline BTX levels.
The analysis led to a rational
basis for intra-company
transferring pricing between
the refining and chemicals
business units.
 For a major U.S. Oil Company provided a strategic competitive
assessment of their North American hydrocarbon solvents
business. The scope of the work included an analysis of the
break-even economics associated with benzene, toluene, and
xylene (BTX) supply and demand in a post reformulated
gasoline (RFG) environment in the U.S. and Canada. Refinery
modeling, gasoline blending, and BTX transportation logistics
were the primary quantitative aspects of this work.
Examples –
Not Exhaustive

27
Regional
Integrated US
Oil Company
 Identified best case liquid
hydrocarbon transportation
business opportunities that
led to incremental crude
supply sources at
competitive netback prices..
 For a major international West Coast oil company provided a
strategic assessment of liquid hydrocarbon transportation
business opportunities in Latin America. The scope of the
engagement included current and projected crude oil, clean
product, and natural gas liquids supply and demand.
 The strategic assessment included current and projected
barriers to foreign participation in each business sector along
with the current and projected competitive environment. The
client objective was to leverage core competencies in liquid
hydrocarbon transportation with potential Latin American
partners in order to access new crude oil supply sources.
Regional US
West Coast
Refiner and
Marketer
 Identified most probable,
highest netback markets for
marginal clean products
production for a US West
Coast Refinery and Marketer
that led to an uplift in
tributary spot market
petroleum product price
realization.
 For a major West Coast refiner and marketer developed an
Asia Pacific business entry strategy for their downstream
businesses. The scope of the analysis included individual
country characterizations of the current and projected
investment climate, competitive environment, economic and
fiscal factors, and regional refined product price forecasts. A
critical aspect of the analysis included Asia Pacific price setting
mechanisms and trade projections.
Examples –
Not Exhaustive

Case Experience: Organizational
Restructuring - Energy
28
Large regional
refiner and
marketer
 Led the an engagement that
consolidated the distribution
and retail operations of a
large regional refiner and
marketer.
 Reviewed alternative organizational models for consolidating
distribution and retail operations of a large regional refiner and
marketer, enhancing customer retention, reducing costs, and
improving service.
Large regional
European
refiner and
marketer
 Reduced refinery
maintenance cost by as
much as 40% for a large
European refiner.
 Provided a benchmarking analysis of the maintenance
functions for a Northeastern European refining and marketing
company, recommending a staffing reduction of 40% and
outsourcing of non-core activities.
Large
integrated
European
national oil
company
 Performed a benchmarking
and restructuring
implementation plan for an
integrated downstream oil
company that included
refining, distribution,
marketing and shipping
supply chain segments.
 Provided organizational restructuring analysis that focused on
Refining, Distribution, Marketing, and Shipping Divisions for an
East Asian National Oil Company, identifying areas for
improvement and cost reduction; as well as a road map for
implementation.
Examples –
Not Exhaustive

Quaker Group
Maintenance Optimization
& Performance Upgrade
(MOP UP):
Integrated Performance
Concept Discussion
29

• The Optimum
Maintenance Strategy Will
Comprise A Mix Of:
– Preventive
– Predictive
– Reactive Tasks
• All Activities Will Be
Targeted According To
Equipment:
– Criticality
– Failure Mode
Consequences
• The Impact Of This Is To :
– Increase
Maintenance
Efficiency
– Enable Reduced
Costs
– Improve Equipment
Performance
Equipment Performance
Impact Of Increasing Maintenance Efficiency
Total
Business Cost
Operations &
Maintenance Cost
Consequential Cost
Improved Efficiency
Optimum Point Moves To Lower Life Cycle Cost & Higher Equipment Performance
Original
Optimum
New
Optimum
$
30

Streamline Processes & Services
• Capital Program Optimization
• Strategic and Tactical Operations &
Maintenance Planning
Years
Project
Cash
Balance
+ ve
- ve
Good
Average
Poor
Life of the Investment
The Quaker Group Focus on
Value Improving
Practices That Deliver
Investment Performance
~ 15-25% Cost Reductions
FEL Delivery Operation
31

Asset Contribution Benefits from
Streamline Processes
Plan
Operate
Create
Output
Increased Asset
Contribution
Increased Asset
Performance
Lower Total
Life Cycle
Costs
Plan
Operate
Create
Output
The Quaker Group products
and services deliver
improved asset contribution
by assisting clients in
streamlining their processes
throughout the assets life
cycle.
32

Whole Life Cycle Asset Management
Policy and Strategy Consulting
Best Practice Assessment And Benchmarking
Technical Services – ARM, FMECA, TPM
Etc.
Turnarounds
ERP / CMMS Implementation
Training,Support&
KnowledgeTransfer
Procurement Optimization
33

Plan
Operate
Create
Output
Introduction –
Asset Contribution and Output
Plan
Operate
Create
Output
Enhanced Asset Performance
Increased Plant
Productivity
Increased Plant
Reliability
Improved Output
Quality
Controlled by
• What you do
Increased
Output
What you do – Determined by Maintenance and Asset Optmization
34

Plan
Operate
Create
Output
Introduction – Asset Contribution and
Operating Costs
Plan
Operate
Create
Output
Improved Asset Performance
Improved Process
Control & Efficiency
Improved Delivery Of
Opex
Reduced Contractor
Costs
Controlled By
• What You Do
• How You Do It
Reduced
Costs
Improved Procurement
& Contracting
Improved Staff
Competency
What You Do – A Function Of Asset Confirguration And Optimization
Based N Market Demands
How You Do It – A Function Of Processes And Capabiltities Leverged By
Technology
35

Current
Operator &
Maintenance
Activity
Maintenance
Optimization
Process
HF-4
Operator
Checks
Maintenance
CM Activities
Etc.
BTFE
Operator
Checks
Maintenance
CM Activities
Etc.
Pipestill 8
Operator
Checks
Maintenance
EHS Activities
Etc.
Optimized
Maintenance
Plans
Plant History and staff
Knowledge
Delivery Processes and Benchmarking
Internal
Resource
Contractor
Resource
Skills &
Competency
Work
Planning &
Control
Tools,
Technologies &
Support
Contracting
Strategies
Improved
Productivity –
Output Driven
Right First
Time
Improved Productivity
Processes For Resource
36

Internal
Resource
Contractor
Resource
Skills &
Competency
Work
Planning &
Control
Tools,
Technologies &
Support
Contracting
Strategies
Improved
Productivity –
Output Driven
Right First
Time
Current
Operator &
Maintenance
Activity
Maintenance
Optimization
Process
HF-4
Operator
Checks
Maintenance
CM Activities
Etc.
BTFE
Operator
Checks
Maintenance
CM Activities
Etc.
Pipestill 8
Operator
Checks
Maintenance
EHS Activities
Etc.
Optimized
Maintenance
Plans
Knowledge
Current
Operator &
Maintenance
Activity
What You Do
37

Current
Operator &
Maintenance
Activity
Maintenance
Optimization
Process
HF-4
Operator
Checks
Maintenance
CM Activities
Etc.
BTFE
Operator
Checks
Maintenance
CM Activities
Etc.
Pipestill 8
Operator
Checks
Maintenance
EHS Activities
Etc.
Optimized
Maintenance
Plans
Knowledge
Internal
Resource
Contractor
Resource
Skills &
Competency
Work
Planning &
Control
Tools,
Technologies &
Support
Contracting
Strategies
Improved
Productivity –
Output Driven
Right First
Time
How You Do It
38

Etc.
Turnarounds
Training,Support&
KnowledgeTransfer
39

Asset Contribution Benefits from
Streamline Processes
Plan
Operate
Create
Output
Increased Asset
Contribution
Increased Asset
Performance
Lower Total
Life Cycle
Costs
Plan
Operate
Create
Output
The Quaker Group Products And Services Deliver Improved Asset
Contribution By Assisting Clients In Streamlining Their Processes
Throughout The Assets Life Cycle.
Align
Accountability
with
Controllability
40

Plan
Operate
Create
Output
Introduction –
Asset Contribution and Output
Plan
Operate
Create
Output
Enhanced Asset Performance
Increased Plant
Productivity
Increased Plant
Reliability
Improved Output
Quality
Controlled by
• What you do
Increased
Output
What you do – Determined by Maintenance and Asset Optimization
41

Plan
Operate
Create
Output
Introduction – Asset Contribution and
Operating Costs
Plan
Operate
Create
Output
Improved Asset Performance
Improved Process
Control & Efficiency
Improved Delivery Of
Opex
Reduced Contractor
Costs
Controlled By
• What You Do
• How You Do It
Reduced
Costs
Improved Procurement
& Contracting
Improved Staff
Competency
What You Do – A Function Of Asset Configuration And Optimization
Based N Market Demands
How You Do It – A Function Of Processes And Capabilities Leveraged By
Technology
42

Etc.
Turnarounds
Training,Support&
KnowledgeTransfer
43

Quaker Group KPI’s
• Align Practice with Culture
• Normalized For
• Asset configuration
• Organizational
structure
• Reporting
relationships
• Inter and intra
company
stakeholders
• Available enabling
technology
• Contractor mix
• Regional skill availability
• Internal / external
resources
Illustrative Asset Management
Objectives – Quaker Deliverables
44

• To Achieve An Average Of 97% Plant Availability Over The
Financial Year 2010-2011
• Achieve Availability Targets At A Minimal Life Cycle Cost And In
A Safe And Sustainable Manner
• Commissioning Of New Facilities And Enhancement Projects,
Fully Compliant With The Reliability & Maintainability Programme
• Manage The Engineering Opex Spend To Reduce 5% Year On
Year Over 2009-2012
• Incur No More Than 2 HSE Incidents Over The Financial Year
2010-11
45

Policy and Strategy
Objective 1
Business
Drivers
Business
Objectives
Objective 2
Objective 3
Operations
Drives Effective Communication
Ensures Activities Are Linked To Business Drivers
AssetManagementInitiatives
Asset
Management
Objectives
Objective 1
Objective 2
Objective 3
Objective 4
AssetManagementPolicy&Strategy
Cost /
Price
Supply /
Demand
Competition
Regulation
Refinery
Chemicals
On-Shore
Off-Shore
Extraction
• Synfuels
• Tar Sands
• Mining
• In-Situ
46

Output Policy And Strategy Structure
Asset
Management
Framework
Senior
Management
Document / Output Target Audience
Brief
AM Policy
External
Organizations
& People
Full
AM Policy
All Site
Management
& Staff
Overall AM
Strategy
All Site Management
& Staff Associated
with AM
Discipline / Function Specific AM
Strategy
Management
& Staff Associated with
Discipline
BP 1
BP 2
BP 3
BP 4
Quaker Proprietary Best
Practice Library
Current Asset Management Policy and Strategy
47

Etc.
Turnarounds
Training,Support&
KnowledgeTransfer
48

23 22
24
24
2323
23
17
15
10
17
12
15
17
14
13
23
4
2.8
7.5
7
6
3
5
8
5
1
8
Objectives (QuakerReview)
Planning (QuakerBPR)
Systems (QuakerMOP)
Condition Monitoring (In-House)
KPI Including HSE (Quaker
Becnhmarks)
Resource Efficiency Management
(MOP)
Team-Building (QuakerTraining)
Minimize Life Cycle Cost (MOP Life-
Cycle)
Training (Quaker1st Line)
12 Months 6 Months
Asset Management
Quaker Group Best Practice Assessment
Overall Objectives
• Align Asset
Management
Improvement With
Business Objectives
– Discretionary
– Non-Discretionary
• To Identify Areas Of
Best Practice And
Opportunities For
Improvement
• To Provide A Costed
Plan With Projected
ROI For Improving
Maintenance
Productivity And
Operational Efficiency
Benchmark Results
(Log8 Scale)
49

Asset Optimization Best Practice
Assessment
Overall Objectives
• To Align Asset Management Improvement With Business Objectives
• To Identify Areas Of Best Practice And Opportunities For Improvement
• To Provide A Costed Plan With Projected ROI For Improving Maintenance
Productivity And Operational Efficiency
Achievable
Goals in Next
3 to 5 Years
Current
Status
Score
Quaker
Methodology
Action Plan
Results Radar
Best Practice Audit
Planning Best Practices
50

• Maintenance Objectives
& Policy
• Maintenance Planning
• Stores and Spares
Management
• Systems and Data
Management
• Condition Based
Maintenance
• Key Performance
Indicators
• Maintenance
Optimization
• Team-Building
• Training
• Life Cycle Costs
• Safety
• Environment
Asset Management Best Practice
Diagnostic
Quaker Group Asset Management Best Practice Assessment
Detailed examination across 12 key enablers: Achievable
Goals in Next
3 to 5 Years
Current
Status
Score
Quaker
Methodology
51

Etc.
Turnarounds
Training,Support&
KnowledgeTransfer
52

• Originated From Aircraft Industry In 1960’s
• RCM Is Zero-based Approach Which Requires A Team To Complete Analysis
• While Very Effective For Complex And Mission Critical Systems Can Be Very Time Consuming And Resource Hungry
• Many Industrial Organizations Have Started RCM Programs Only To Abandon Them For A “Lite” Version Or Abandon
The Initiative All Together
Reliability Centered Maintenance
Maintenance Optimization Process –
RCM and REM
Decreasing
Failure Rate
Constant
Failure Rate
Increasing
Failure Rate
Run In
Phase
Useful Life Phase
Wear Out
Phase
53

Maintenance Optimization Process
– RCM and REM
• Developed in 1980’s as an industry focused optimization process which is benefit and production centric
• Utilizes real operational experience to focus on root-cause analysis
• Achieves the majority of the benefit from RCM more rapidly with significantly less investment (typically 30-50% of the
effort for RCM)
Review of Equipment Maintenance
54

Overview: Upgraded Performance
Solution (UP)
171
Set Charter,Agree
Future State Etc
On-going Leadership Of The Improvement Program
Global
Review
Final
Issue
Localise
Communicate Policy & Strategy & Ongoing Use Of KPIs
Establish
Maintenance Task
Optimisation (RCM,
FMEA Etc)
Create Standard Process
For Mnce Strategy
Development
Equipment Criticality
Ranking
Roll-out Of Optimized Maintenance
Plans In MOP UP
Workstream 1 :
Steering Committee
Workstream 2 :
Policy & Strategy
Draft Policy,
Strategy & KPI
Documents
Agree
Schedule &
Processes
Ongoing Audit & Continuous Improvement Process
Audit Framework
Based On
Manaus Audit
Workstream 3 :
Audit Framework
Workstream 4 :
CMMS
Workstream 5 :
Reliability
Improvement
Workstream 6 :
Stores & Workshop
Workstream 7 :
Training & Skills
Workstream 8 :
Work Management
6-12m3-6m0-3m
Issue Resolution
System Confg &
Data Transfer
On-going Support & CI
Develop URS
Implement Work Management SOPs
Implement Planning & Control SOPs
Critical Spares
Specify
Requirements,new
Working Practices
Identify &
Agree New
Locations
Migrate To New
Locations
Adopt New Stores & Workshop
Working Practices
5S In
Existing
Stores
Quaker
Training
Review &
Establish Staff
Training Plan
On-going Training & Skills Management
Identify Training
System
On Going Continuous Improvement Of ProcessesDevelop Sops
Site Data Preparation
Quaker
Training
Quaker
Training
Quaker
Training
Maintenance Review,
55

Maintenance Optimization Program
Maintenance
Review
Initiation
Objectives, KPIs
Current Improvement
Strategies & Plans
Prioritize work
Optimized Maintenance
Plan For Each Item
Plan input into MOP UP
Smoothed, Efficient
Work Packages
Suitable For MOP UP
Facilitate Roll-out And
Buy-in
1 Maintenance Review
2MaintenanceOptimization
Contract Management System
MOP UP
Establish Contracts
Transition To New Model
Buy-in
Facilitate roll-out and
buy-in
buy-in
3 Resource Management
Establish Equipment
Criticality
Develop Quaker Equipment
Maintenance Best Practices
Populate MOP UP With
Maintenance Plans
Create Optimized
Schedule
Roll-out To In-house &
Contractor Workforce
Improved Work Planning &
Scheduling Processes
Contracting Strategy
Equipment Specific
Strategies
56

Maintenance
Review
Initiation
Objectives, KPIs
Current Improvement
Strategies & Plans
Prioritize work
Plan For Each Item
Smoothed, Efficient
Work Packages
Suitable For MOP UP
Buy-in
MOP UP
Establish Contracts
Buy-in
buy-in
buy-in
Establish Equipment
Criticality
Maintenance Plans
Create Optimized
Schedule
Equipment Specific
Strategies
57

Maintenance
Review
Initiation
Objectives, KPIs
Current Improvement
Strategies & Plans
Prioritize work
Plan For Each Item
Smoothed, Efficient
Work Packages
Suitable For MOP UP
Buy-in
MOP UP
Establish Contracts
Buy-in
buy-in
buy-in
Establish Equipment
Criticality
Maintenance Plans
Create Optimized
Schedule
Equipment Specific
Strategies
58

Maintenance
Review
Initiation
Objectives, KPIs
Current Improvement
Strategies & Plans
Prioritize work
Plan For Each Item
Smoothed, Efficient
Work Packages
Suitable For MOP UP
Buy-in
MOP UP
Establish Contracts
Buy-in
buy-in
buy-in
Establish Equipment
Criticality
Maintenance Plans
Create Optimized
Schedule
Equipment Specific
Strategies
59

Maintenance
Review
Initiation
Objectives, KPIs
Current Improvement
Strategies & Plans
Prioritize work
Plan For Each Item
Smoothed, Efficient
Work Packages
Suitable For MOP UP
Buy-in
MOP UP
Establish Contracts
Buy-in
buy-in
buy-in
Establish Equipment
Criticality
Maintenance Plans
Create Optimized
Schedule
Equipment Specific
Strategies
Maintenance Review : Objectives
The Principal Objective Will Be To Create A Framework For Achieving
Maximum Plant Performance At Minimum Maintenance Life Cycle Cost.
This Will Be Achieved Through The Following :
• Provide An Objective View Of The Current Practices And
Performance Of The Maintenance & Engineering Departments When
Compared To Industry Best Practices
• Identify A Plan For Management & Functional Improvement
• Create A Unified Set Of Objectives For The Departments That Are
Fully Aligned With The Overall Business Objectives Of The Company
• Provide A Coherent Set Of KPIs That Match And Drive The Required
Actions in Meeting The Site / Enterprise Objectives
60

Challenges Regarding Asset
Management Objectives
Examples
• Rising Costs Of Materials And Labor
• Shortage Of Skilled Labor
• Restricted CAPEX Budget
• Ageing Assets
• Pressures From Regulatory Bodies
• Asset Complexity
• Contractor Mix
• Available Skill Levels
• Retirement
• Training
61

Benefits
Maintenance
Review
Initiation
Objectives, KPIs
Current Improvement
Strategies & Plans
Prioritize work
Plan For Each Item
Smoothed, Efficient
Work Packages
Suitable For MOP UP
Buy-in
MOP UP
Establish Contracts
Buy-in
buy-in
buy-in
Establish Equipment
Criticality
Maintenance Plans
Create Optimized
Schedule
Equipment Specific
Strategies
Typical Benefits Achieved By The Quaker Groups Maintenance
Optimization Program In The Process Industry Sector:
• Increase In Maintenance Efficiency (Increase In Wrench Time)
 20-50%
• Reduction In Re-work Due To Poor Quality Maintenance
 20-80%
• Reduction In Equipment Downtime Due To Spares Stock-outs
 50-80%
• Reduction In Equipment Down-time Due To Breakdowns
 10-50%
• Overall Reduction In Maintenance Life Cycle Costs
 10-30%
• Reduction In Supply Chain Costs
 10-15%
62

Asset Management Case Study –
Typical Maintenance Mix
Illustrative
63

Continuous Improvement Initiatives:
Time on Tools Productivity Metric
0%
10%
20%
30%
40%
Scheduledjobsbuttasksnotidentifiedonjobscope
ScheduledorEmergencyworkonactivitiesinfulfilment
ofassignedtaskinprocessunits/onsite
Workshopoperationsinfulfilmentofassignedtasks
ScheduledorEmergencyworkonactivitiesthatare
administrativeandindirectinnatureandrequiredpriorto
orfollowingdirecttasks
ScheduledorEmergencyworkonactivitiesthatare
indirectinnatureandrequiredforfulfilmentofjobstasks
inprocessunitsoronsite
Processinterruptedduetomissingmaterial
ProcessinterruptedduetoOperationalissues
Processinterruptedduetooperationalsequence
Worknotinitiatedperschedule
Workpermitinitiatedbutpersonnelnotonsite
Time-on-Tools Administrative Time Lost time due to inefficiencies Unknown
Total
Illustrative
64

Quaker Group
Site Diagnostic & Improvement Plan
• Approach
• Illustrative Solution Elements
65

Quaker Site Diagnostic
Assess ActAlign
Phase I
Map Overall Asset Related
Business Objecitves
Objective
Align Asset Management
Issues With Overall Business
Objectives. Prioritize Asset
Management Issues With
The Greatest Inpact On
Overall Business Objectives
Phase II
Site Assessment & Review
Objective
Review All Areas Of The
Maintenance Function With
The Greatest Impact On The
business. Identify Key Areas
Linked With Overall Busienss
Objectives. Develop A Gap
Analysis Agianst ‘Normalized’
Ebst Practices.
Phase III
Improvement Plan
Objective
Develop And Deliver A
Coherent Improvement Plan
Identifying Opportunities For
Improvement, Required
Resources And Activities,
And Return On Capital
Employed.
66

Site Objectives – Key Words
MOP UP
MOP UP
A AAlign
67

Phase I
Map The Overall
Business Objectives To
The Asset
Management
Challenges
Complete A
Management Alignment
Workshop With Site
Management Team To
Develop An
Understanding Of:
• Business Drivers And
Objectives
(Corporate Level)
• Asset Management
And Maintenance
Challenges
• How These Interact
And Contribute To
Each Other
Quaker Site Diagnostic – Phase I
A AAlign
68

OPR
Labor
$3b
Materials
Equipment
OPR
Labor
$4.5b
Materials
Equipment
$5.8 Billion $7.5 Billion
Typical Areas Of Cost Creep
Main Area Of Growth Risk
Illustrative Site Economics
A AAlign
69

Maintenance Strategy – Current
vs. Best Practice
Source : Quaker Group Analysis
Breakdown
45%
Planned
37%
On-condition
17%
Design Out
1%
Current Status
Breakdown
12%
Planned
32%
On-condition
45%
Design Out
11%
Typical Process Industry Best Practice
REM
A AAlign
70

Creating the Optimum Model
Organizational Strategic Plan
Planning
• The Optimum
Model For An
Organization
Includes:
– Defining The
‘As-is’ Position
• Subsequent
Creation Of A
Specific
Customized ‘Vision’
Of The Future
Organization
Asset Management Plan
A AAlign
71

Asset Management Improvement –
Benefits
Typical accretive benefits from The Quaker Group’s asset Maintenance
Optimization Processes and Upgrade Program (MOP UP) include:
• Increased plant reliability
• Reduced risk of plant failure through the correct application of maintenance
efforts
• Improved operational efficiency and increased tool time
• Reduced maintenance costs and parts inventory
• Reduced reactive maintenance
• Reduced scheduled maintenance activity
• Truly integrated approach to maintenance
The actual mix of benefits attained depends upon:
• The requirements of the business
• The operational requirements and context
• The starting point for the operating assets
Typically organizations achieve a 5 to 10 times return on investment
through delivering an integrated improvement program
A AAlign
72

Process Upgrade (UP) Asset
Improvement – Benefits
Typical Benefits That Accrue From Asset Management Improvement Include:
• Increased Plant Reliability
• Reduced Risk Of Plant Failure Through The Correct Application Of
Maintenance Efforts
• Improved Operational Efficiency And Increased Tool Time
• Reduced Maintenance Costs And Parts Inventory
• Reduced Reactive Maintenance
• Reduced Scheduled Maintenance Activity
• Truly Integrated Approach To Maintenance
The Actual Mix Of Benefits Attained Depends Upon:
• The Requirements Of The Business
• The Operational Requirements And Context
• The Starting Point For The Operating Assets
. . . Organizations Achieve A 5 To 10 Times Return On Investment Through Delivering
An Integrated Improvement Program
A AAlign
73

Mapping Asset Management Challenges
& Business Objectives
• Maintenance Optimization
– Overall Quaker Program
• Availability Of Resources
– MOP UP Scheduling
• Effective CMMS
– MOP UP Unit Rate Contracts
• Increasing Plant Availability
– Quaker Asset Lifecycle
Optimization
Quaker’s Matrix Analysis Process Is Used To Determine
Asset Management Challenges With The Biggest Impact On
Business Objectives:
A AAlign
74

Reliability Metrics
A AAlign
75

Criticality Analysis
A AAlignCriticality Analysis
Typically Use A Criticality Algorithm
E.G.: CR = Fr X Cf
Where:
Fr = Frequency Of Failure In Failures Per Year
Cf = Consequence Of Failure
= Lost Prod. X Labor Cost X Spares Cost X Waste
Materials X Customer Impact
76

Cost / Benefit Analysis
A AAlign
Percentage of Recommendations Against Score
Percent
77

Mapping Asset Management Challenges
& Business Objectives
• Safety
• Meet Customer Requirements
• Effective Team Performance
• Meet Budget
• Increase Profit
Quaker’s Matrix Analysis Process Is Used To Determine The Business
Objectives That Will Be Most Impacted By Addressing The Asset Management
Challenges:
A AAlign
78

Maintenance Review Program Scope
Activity
Duration On
Site
Output
Initial Workshop
Setting Of Project Expectations
Agreement On FO Business
Objectives, Draft Maintenance & Eng
Objectives
Maintenance &
Engineering Review
Initial Findings Against Selected
Functional Enablers
Presentation Of Initial
Findings
Draft Report & Presentation/Review
Objectives & KPIs
Workshops
Finalization Of Objectives & KPIs
Maintenance Review
Report
Report Detailing Objectives, KPIs,
Maintenance Review Findings And
Prioritized Plan For Achievement Of
Objectives
Functional Enablers
• Maintenance Objectives &
Policy
• Maintenance Strategy
(Planned, Predictive,
Reactive)
• Maintenance Planning
• Stores And Spares
Management
• Supply Chain & Contractor
Management (MOP UP)
• Systems And Data
Management
• Key Performance Indicators
• Team-working (MOP UP)
• Training
• Life Cycle Costs
• Health, Safety And
Environment
A AAlign
79

Success Factors
• Scoping Study To Identify Business & Engineering Requirements
• System Design & Configuration To Meet Requirements
• Clear Focus On Ultimate Objectives And Delivery Of Real Benefits
• Focus On KPI’s & Return On Capital Employed / Invested
• Integration Of Maintenance Process Improvement As Part Of The
Project
– Work Planning & Management
– Stores Optimization
– PM Frequency Optimization
• Project Team Comprised Top Down & Bottom-up Approach
• Configuration Of User-friendly System
– An Aide To Day To Day Working - Not A Hindrance
A AAlign
80

Typical Work Efficiency Improvement
Results
• Improved Efficiency & Productivity
– Approx 20% More Planned Work Delivered With Same
Team
– Much Higher Improvements In Many Cases
– Reduced Reactive Maintenance
• Increased Routine Maintenance Completion Rate
– Improved Reliability
• Visibility Of Resource Utilization
• Smoothed Long Term Plan (Actual Versus Plan)
• Increased Service Factor
• Lower Specific Maintenance Cost
A AAlign
81

Improving Maintenance Work
Efficiency
Initial Diagnostics Typically Highlight A Number Of Key
Issues :
• Low ‘Time On Tools
– Typically 25-50%
• Poor Planning
– Operations & Maintenance
• Reactive Versus Proactive Approach
• Planned Maintenance Completion Rate Low
• Poor Interface Between Production & Maintenance
Case Study : 6,000 Person Industrial Site
A AAlign
82

Identifying Business Objectives & Asset
Management Challenges
Quaker Planning Performance Optimization Workshops Identified The
Following Business Objectives & Asset Management Challenges
Challenges XOM (Sanitized)
A AAssess
83

Typical Findings / Issues
• Need To Develop Clear Maintenance Strategy & KPIs
• Maintenance Plan Non-existent / Out Of Date – Need To
Conduct Maintenance Optimization
• Maintenance Not Targeted According To Plant Criticality
• CMMS Not Delivering Against Maintenance Strategy /
Objectives
– Seen As A Cost Not A Benefit
• Spares Stocking Not Matched To Requirements
• Isolated Examples Of Best Practice But Not Disseminated
• Fix-it-quick Culture Results In Rework And Repeated Failures
• Difficulties In Planning Lead To Reactive Approach And Low
‘Wrench Times’
A AAssess
84

Optimize Maintenance Tasks – Streamlined
Reliability Centered Maintenance (RCM)
• FMECA at the heart of the analysis for
determining the optimum maintenance
tasks
• Non-Zero Based as utilizes:
• Existing maintenance routines
• Existing maintenance history
• Experience of on-site operating and
maintenance personnel
• Completed through Quaker consultants
with discussions with site personnel
• Root cause orientated around
operational experience
• Design-out of root causes a priority as
opposed to a last choice
• Can use Spreadsheet driven process
or supporting software – MOP UP
CMMS / Tiger / MOP UP
Review of Equipment Maintenance
A AAssess
85

Compare (Where Applicable) :
• Existing Activities
• Benefits
• Optimum Plan
• Gaps
Existing Maintenance Schedule
Traditional Maintenance
Labor costs per year:
$6600 K / yr
Streamlined RCM - Outputs
A AAssess
86

Compare Existing Activities (Where Applicable) And Benefits From Optimum Maintenance Plan
Building Services
Service Schedule
Air Handling Unit
Site:___________________ Contract No:_______ Equipment: ________
Location: _______________ Page: 1 of 1
Manufacturer's Name:Luke AC Pty Model No:80-200 Serial No:N/a
Impellor size: Various KW 22,15,12.75
Pump Service Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec M/Hrs
Check Motor Bearing M 0.05 0.05 0.08 0.05 0.05 0.08 0.05 0.05 0.08 0.05 0.05 0.08 0.72
Check Fan Bearing + A37 M 0.05 0.05 0.08 0.05 0.05 0.08 0.05 0.05 0.08 0.05 0.05 0.08 0.72
Check Vee Belts and tension as req'd M 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.6
Ensure Belt Guard fitted and secured M 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.6
Check filters cleaned M 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.6
Pressure drop across filters M 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.6
Record space temp H 0.15 0.15 0.3
Check operation of condensate trays M 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.96
Clean heating and cooling coils Y 0.5 0.5
Clean Fan blades and cowling Y 0.5 0.5
Lube and adjust damper linkages H 0.25 0.25 0.5
Check op of dampers O/A, R/A, E/A M 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 3
Check op of heating and cooling valves M 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 1.2
Check elec connections Y 0.5 0.5
Check calibrate and controls H 0.25 0.25 0.5
Check air flow switch operation M 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 1.2
Check time clock setting M 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 1.2
Serviceman Man-hours 0.93 0.93 0.99 0.93 0.93 1.64 0.93 0.93 0.99 0.93 0.93 3.14 14.2
labor costs per year: $15,000,000 / yr
A AAssess
87

Improve Work Planning & Scheduling
• Create Optimized Maintenance Plan Based On Criticality And Using Streamlined
(Lite) RCM
• Review CMMS Data
– Resources / Cycle Length / Hours / Necessity / Plant Area
Establish KPIs & Reporting
• Group Maintenance Activities
– Maintainable Groups/Align Disciplines
• Set Start Dates
– Smoothed Profile / Resource Availability / Operational Constraints
• Introduce Weekly Maintenance Schedule
• Set Work Prioritization Method
• Establish Production/Maintenance Co-ordination Process
• Measure Performance And Initiate Continual Improvement
Improving Maintenance Work Efficiency
A AAssess
88

Introduce Weekly Maintenance
Schedule
A AAssess
89

Implement Work Request & MOP UP
Scheduling Optimization System
Enhanced Capabilities Over
Pirmavera:
• Ease Of Use
• Data Interface With SAP And
MOP UP
• Pre-defined Work Group
Make-up
• Automatically Interfaces With
SAP And Contract SW
• Heuristic Capabilities Allow
For ‘Evergreen’ Improvements
• Friendly User Interface
• No Re-entering Of Data
• Better Data Integrity
• Links With Other Planner
KPI's Seamlessly
Quaker Group Scheduling Optimization
Priority Action Definition Examples
 P1
 Progress
Immediately
 Threat to safety of people
 Threat to safety of plant
 Immediate threat to
primary manufacturing
process
 Fault on Safety Mechanism
 Suspended load on crane
 Exposed live electrical conductors
 Purge pumps – Loss of either fast or slow purge pumps
 Bayou discharge Treatment and Recirculation pumps –
Total loss of function, both duty and standby failed.
 Sampling System – Loss of function
 Multiple defective emergency lights in one area (see
P3)
 Dangerous Chemical or Refrigerant release
 P2
 Schedule into
current Work Plan
(Break Schedule)
 Significant threat to
primary manufacturing
process
 To prevent significant
disruption to the Weekly
Maintenance Schedule
 Recirculation Pump – Loss of duty pump in
summertime, standby still operational but unacceptable
increase risk to control of pond temperature.
 Loss of backwash and Jet pumps
 Differential pressure fault on Universal Vessels (SR)
 Poly-electrolyte system – loss of performance
 P3
 Next Available
Opportunity
 Minor threat to primary
manufacturing process
 Maintain optimum
performance of
manufacturing equipment
 Pump running with defect – seal failure or noisy
performance
 Single defective emergency light in one area (see P1)
 General Normal Plant breakdown
 Sea Discharge Pump failed but Stand-by healthy
 P600  Next Available  Improve efficiency of the  ERP / MOP UP Data Check
A AAssess
90

Establish Coordination Meetings
Area Manu/Eng
mtg to co-ordinate
local plant
availability &
discuss work
request priorities
Draft Weekly
Mntce Schedule
Update Weekly
Mntce Schedule
Finalize Weekly
Mntce Schedule
Resource
Planning Mtg to
resolve any
conflicts with
resources & plant
@ MER level
Shared resource availability
All Area
Schedules
Prepare MER plan
& Key work
forecast
Manu Weekly
Planning Mtg to
discuss plant
availability &
agree plan
Eng Weekly
Planning Mtg to
review & agree
plan
FinalizeMER plan
& Key work
forecast
Friday Monday Tuesday WednesdayThursday
Deliver the Plan
Monday
Planned WeekMinus 1 weekMinus 2 weeks
Add P2 Work Requests
Wednesday
BRR Issue
Schedules
BRR Issue List of
P3/P600 Work
Requests
Last weeks schedule
performance
Last Weeks
Schedule
Performance
A AAssess
91

Site KPI Analysis
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
January 27, 2009 February 16, 2009 March 8, 2009 March 28, 2009 April 17, 2009 May 7, 2009 May 27, 2009 June 16, 2009
SCHEDULE COMPLIANCE and EFFECTIVENESS (WEEKLY)
% ReactiveWork % Actual Starts v Scheduled Actual Finishes vScheduled % Job Duration vEstimated
% ReactiveWork % Actual Starts v Scheduled % Actuals Finishes v Scheduled % Job Duration vEstimated
Weekly Schedule Compliance & Effectiveness
A AAssess
92

Quaker Asset Review Outputs &
Deliverables
• Benchmark Of Current
Performance
• Identification Of Key Risks
– Opportunities For
Improvement
• Prioritized Plan For
– Maintenance Management
– Functional Improvement,
– With Cost Benefit Analysis
• Objectives & KPIs Aligned With
Business Strategy
• Optimized Supply Chain
Strategy
Project Economics
(Illustrative)
NPV (4% APR): $5.5MM
IRR: 340%
Efficiency Ratio: 8.2
Breakeven Date: 2H09
Payout Time: 8 Months
Net Cash Gen: $1,000MM
A ActA
93

Labor Costs Per Year: $2500K / Yr
Savings For Failure Modes Not
Detected Previously:
No Of Units In Asset Base: 25
Total Savings From
Low High
$13500K $164090K
Optimized Maintenance Plan
Optimized Planning Results
A ActA
94

Quaker Program Success Factors
• Establish, Document And Disseminate Structured Processes For All
Work Planning, Scheduling And Execution
• Ensure That Maintenance Management Systems Are Configured To
Make All Tasks As Simple As Possible (‘As Easy As Using Google Or
Checking Emails’)
• Ensure That The Maintenance Management System Provides A
Dynamic Planning Scheduling And Work Management Tool (Note :
Add-on Tools Are Available To Achieve This With SAP, Maximo Etc)
• Don’t Under-estimate The Value Of A Hard-copy Weekly / Daily Plan
• Commitment To Culture Change
• Many Of The Barriers To Improvement Are
– People Related
– Resistance To Change
– Status Quo, i.e., Experienced And Credible Facilitators Are
Needed.
A ActA
95

Work Management Network -
Deliverable
Base Case - Existing Situation:
– High level (up to 50%) of maintenance emergency work
– Inconsistent work planning
– High level of maintenance backlogs
– Maintenance and Operations management frustrated with
inability to control backlogs and complete maintenance work in a
timely fashion
– Ineffective maintenance work scheduling and low schedule
attainment
– Low morale of crafts as a result of inability to complete
scheduled work
– Maintenance work force comprised of a mix of contractor and
company personnel
– Craft wrench time 20% to 30% as measured by Time on Tools
Specialist
A ActA
96

Key Challenges & Objectives
• To Improve Operating Margins Of ExxonMobil Through Improving
Asset Performance And Increasing Maintenance Efficiency.
• Achieved Through A Maintenance Optimization Process Aligned With
The Operations Integrity Management System (OIMS) Initiative:
• An Asset Management Strategy Which Is Aligned To The Business
Needs.
• A Preventive Maintenance Plan That Is Targeted According To Plant
Criticality And Has An Optimal Mix Of Predictive, Preventive And
Reactive Tasks
• Reduction In Re-work Through Elimination Of ‘Quick-fix’ Culture
• Increase In Manpower Productivity Through Increased ‘Wrench-time’
• Identification And Dissemination Of Best Practice
• Strategy For The Most Cost-effective Procurement Of Maintenance
Resources
A ActA
97

Typical Findings / Issues
• Need To Develop Clear Maintenance Strategy & KPIs
• Maintenance Plan Non-existent / Out Of Date
– Need To Conduct Maintenance Optimization
• Difficulties In Planning Lead To Reactive Approach And Low
‘Wrench Times’
• Maintenance Not Targeted According To Plant Criticality
• CMMS Not Delivering Against Maintenance Strategy / Objectives
• Opportunities To Improve Cost Effectiveness Through Optimized
– In-house / Outsourced Ratio
– Improved Procurement Models
• Isolated Examples Of Best Practice But Not Institutionalized
• Fix-it-quick Culture Results In Rework And Repeated Failures
– Not Sustainable
A ActA
98

Quaker Group KPI’s
• Align Practice with Culture
• Normalized For
• Asset configuration
• Organizational
structure
• Reporting
relationships
• Inter and intra
company
stakeholders
• Available enabling
technology
• Contractor mix
• Regional skill availability
• Internal / external
resources
A ActA
99

Quaker Group Maintenance
Performance Improvement
Sustainability Discussion
100

Target Manpower Utilization
Direct
65%
Travel
10%
Idle At Job Site
1%
Obtain Tools / Mat
5%
Receiving Instructions
3%
Late / Early
1%
Personal Time
2%
Breaks/Relief
10%
Coordination
Delay
3%
Quaker
Group
Best In
Class
101

Technical Services: ARM, FMECA, TPM Etc.
Training,Support&
KnowledgeTransfer
Turnarounds
102

Quaker Group Technical Services
The Quaker Group Can Either Educate And Train Staff To
Complete These Activities Themselves Or Provide
Resources To Assist In The Following Technical Areas:
• Arm Analysis – Availability, Reliability, And Maintainability
Analysis Completed As Part Of Front End Design Work,
Or Ongoing Improvement Programs For Built Assets
• FMECA And RCA – Failure Mode, Effects, And Criticality
Analysis, And Root Cause Analysis
• TPM And OEE – Total Productive Maintenance
(Continuous Improvement Techniques, 8d, Autonomous
Maintenance, Etc.) And The Implementation And Use Of
Overall Equipment Effectiveness
• Asset Verification – Where A Client Has A Large And
Diverse Asset Base We Assist Them With The
Verification Of The Physical Assets And The Subsequent
Population Of The Asset Information Within The ERP /
CMMS System.
• Condition Monitoring – Working With Technology
Partners We Are Able To Provide Fully Outsourced
Condition Monitoring Services That Utilize Advance
Web-delivery Systems To Ensure Up To The Minute
Information Display. 103

Unit Rate Advantage
OPR
MATERIAL
COST
LABOR
COST
$ x Ft2
Work Unit
Rate / Activity
Schedule Of Rates
Labor Cost Per Ft2
Material Cost Per Ft2
Overheads / Profit / Risk
104

Unit Rate Benefits
Unit Rate – 2” CS Sch 40 Butt Weld – ~1.5 Hrs
Site A
Site B
Site C
Contract Factor x 1.5
Contract Factor x 1.7
Contract Factor x 1.2Best In Class *
*Identify What Makes ‘Best In Class’ And Apply Learning To Other
Sites Using MOU To Assist Continual Improvement At All Sites
105

Unit Rate Benefits
MOP UPMOP UP Enables Normalized
KPIs:
• Which Is Productivity Driven
• Which Can Be At Activity
Level Right Through To Site
/ Contractor Level
• Uses Standard Base Data
For
• Accurate And Cost
Independent Assessment
• Aligned Objectives For All
Stakeholders
• Contract Transparency
• Reduced Transaction Costs
• Credible Cross Fertilization
Of Best0in-class Processes
• MOU Continuous
Improvement
106

MOP UP Description
• Is A Web Based Transactional Tool That
Supports
 Planning
 Scheduling
 Estimating
 Procurement
 Transactions
• Can Be Used To Estimate And Manage
CAPEX And OPEX
• Is A Support Platform That Is Able To
Manage 3rd Party Contracts, e.g. Unit Rate,
Lump-sum, Turnkey, Etc.
• Enhances Visibility And Transparency Of
Cost Across Maintenance Activities And
Projects
• Provides An Objective Basis For Aligned
Internal And External Stakeholder Objectives
And Motivations
 Transparently
 Normalized
 Across Business Units & Regions
MOP UP
Estimate Approval and Payment Process
Approve
Estimate
Reject
Estimate
Estimate Approval
and Payment Process
Do
work
Apply for
Payment
Audit
Payment
Approval
Complete
Revise
Estimate
On
Hold
Reject
Additional (+/-)
Work
Update Estimate
108

PM
MOP UP And The Asset Lifecycle
PLAN CREATE OPERATE
Originate
Concept
Options
Development
Approve Handover
What to Operate
How to Operate
MOP UP supports the best-in-class maintenance planning, estimating, construction and procurement, and contract
management associated with all aspects of the asset lifecycle
WBS
Equipment
Design
Materials
Labor
Construction
HSE
OHP
Aspen Icarus Quaker Group MOP UP
ROCE
109

MOP UP and the Asset Lifecycle
PLAN CREATE OPERATE
Equipment
Estimating Systems
Planning
Systems
ERP
Systems
OPEX
Systems
Super-composites and
Experience Can Be Fed-back
Into Optimized Work Systems
MOP UP:
• Can Be Used At All Stages Of The Asset Lifecycle
• Interfaces With Relevant Systems At All Stages Of The Asset Life-cycle And Is Able To Import / Export Required Information
• Enables Efficiency Gains Through The Creation, Use, And Re-use Of Super-composites (Templates) For Programs Of Work
• Is A ‘Live’ System That Uses Heuristics To Update SAP Data To Continuously Improve And Validate Planning Estimates
MOP UP
MOP UP
MOP UP
110

Legacy Approach – Plan Phase
Contractor AProject 1
Uit Rates
&
Estimates
Estimating
Process B
Project 1
Planning
Estimate
Initial Estimate 1
Project Estimating
System
Conceptual
Design
Package
Contractor B
Project 2 Estimating
Process T
Project 2
Planning
Estimate
Initial Estimate 2
Project Estimating
System
Conceptual
Design
Package
Historical Process:
• Three Data Transfer Stages
• Inital Design Egineering And Planning
• Process Unit Estimating System
• Equipment Based Estimating System To The Project Contractor’s Estimating System
• This Introduces Inefficiency And Lack Of Consistency Of Process
• Differing Engineering Contractors Will Use Thier Own Data Sets And Differing Estimating Processes
Leading To Inconsistency And Increased Risk
• All Knowledge And Data, e.g., Unit Rates Are Developed And Retained By Engineering Contractors
Within Their Own Systems
Client – Project Engineering & Routine Maintenance Project & Maintenance Planning / Estimating
Turner
Brand
Unit Rates
&
Estimates
111

Quaker MOP UP Approach – Plan Phase
Craft
Estimating
System
Project 1
Initial Estimate 1
Conceptual
Design
Package
Project 2
Initial Estimate 2
Conceptual
Design
Package
Work / Project Planning
Equipment Estimating
System
+/- 40% +/- 10%
MOP UP
Standard Estimating
Process
Contractor A
Unit Rates
&
Estimates
Estimating
Process B
Project 1
Job
Estimate
Contractor B
Estimating
Process T
Project 2
Job
Estimate
Routine Maintenance / T/A’s / Small Projects
Turner
Brand
Unit Rates
&
Estimates
MOP UP
Unit Rate
Job
Estimates
112

MOP UP Approach – Plan Phase
MOP UP Approach:
• MOP UP Is Used Both For The
Creation Of The Initial Estimate And
By The Field Contractor For The
Detailed Estimate.
• Reduced The Number Of Data
Transfer Stages From 3 To 2 –
Improving Efficiency.
• Both Client And The All Contractors
Are Using The Same Base Data Sets
Ensuring Consistency, Accuracy, And
Standardization Of Output.
• The Knowledge Is Grown
(Heuristically) And Retained Within
The Client’s Mop Up System
Delivering Internal Knowledge Growth
And Improved Efficiency Of Operation
As Well The Ability To Normalize &
Benchmark
• MOP UP Is Unique In That It Includes
A Seamless Scheduling Optimization
Function And Interface
113

MOP UP Methodology – Create Phase
Planning
Systems
ERP
Systems
MOP UP
MOP UP Drawings and
Specifications Contractor
Estimates
Work Instructions
Local Contracts
Key Performance
Indicators
Estimates
Work Instructions
Local Contracts
Key Performance
Indicators
Plan Create
Paper
E-Mail
Work Package
114

Legacy Contract Management
Methodology – Create Phase
Contractor
Client
Work Package
Contract
Corporate
Regional
Site
Uit
Drawings
Iso / P&ID
/ Etc.
KPI’s
Internal /
External
Inter /
Intra
Work
Order
Legacy Contract Create
Process
• Following The Design
Work – The Client Work
Pack Will Be Issued To
The Contractor In A
Variety Of Forms:
– Via E-mail
– Via Hard Copy
– Via Verbal
Communications
• This Introduces In-
efficiencies And Potential
For Error And
Unnecessary Non-value
Add Activities
Spreasheet
Based
Tools
Third Party
Scheduling Tool
ERP / CMMS
System
Client
Systems
Interface
Other
Misc.
Public
Literature
‘Norms’
Paper
Plan Create
E-Mail
Verbal
115

Quaker MOP UP – Creation of an Estimate
Unit Rate / Crew Make-Up Basis Estimate Detail
MOP UP:
• Estimates Are Created From The MOP
Up Unit Rate Proprietary Data Base To
Provide The Basis For The Planning &
Scheduling Estimates As Well As The
Contract Form.
• Each Estimate Can Be Saved As A
Template And Be Used To Create
Composite Estimates Shared Globally
(See Slide).
• Estimates Can Be Single Or Multi-
discipline And Be Of Any Size Or
Complexity And Can Be Re-used Any
Number Of Times For Different Projects
/ Activities At Other Sites
• MOP UP Has Unique Capabilities To
Perform The Scheduling Function Once
The Detailed Estimate Is Complete And
Interfaces Seamlessly With The
Detailed Plan.
• Crew Make-up, Crew Size And Time
And Material Estimates Provided By
Mop Up Provide A Benchmark For
Identical Or Similar Activates Globally.
116

Quaker MOP UP – Job Estimate Benefits
MOP UP Methodology:
• Provides A Transparent Data Set Accessible
As Defined For All Project And Job Data:
• Estimates
• Crew Make-up / Crew Size
• Work Packages (WBS)
• Local / Regional Contracts
• Selling Rates
• Absolute Benchmarks
• Key Performance Indicators
Incentives Include:
• Improved Communication
• Standardization
• Reduced Duplication Of Effort
• Improved Transparency And Accuracy
• Cost Clarity By Exception
• Can Be Used For All Types Of Routine And
CAPEX Work From Major Projects To Minor
Maintenance Using A Pre-agreed Activity
Based Contracts And KPI's
117

MOP UP Methodology – Operate Phase
Planning
Systems
ERP
Systems
MOP UP
MOP UP Drawings and
Specifications Contractor
Estimates
Work Instructions
Local Contracts
Key Performance
Indicators
Estimates
Work Instructions
Local Contracts
Key Performance
Indicators
Paper
E-Mail
Work Package
OPEX
Systems
118

Legacy Contract Management
Methodology – Operate Phase
Contractor
Client
Work Package
Contract
Corporate
Regional
Site
Uit
Drawings
Iso / P&ID
/ Etc.
KPI’s
Internal /
External
Inter /
Intra
Work
Order
Legacy Contract Operate
Process
• Same Issues As For The
Legacy Approach To The
Create Phase
• The Work Packages And
Instructions Are Smaller
And More Numerous
Providing
• More Opportunity For
Gains In Efficiency Of
Process
• Standardized Work Crew
Size / Make-up
• Standradized Sheduling
And Execution
• Heurisitc Capabiity To
Futher Develop Site-
specific KPI’s For
Routine And Project
Activities
Spreasheet
Based
Tools
Third Party
Scheduling Tool
Client
Systems
Interface
Other
Misc.
Public
Literature
‘Norms’
Paper
Plan Create
E-Mail
Verbal
ERP / CMMS
Systems
Routine Maintenance &
Inspection Systems,
e.g., Tiger, Etc.
OPEX SystemsTransaction Systems
119

MOP UP Approach – Operate Phase
MOP UP Approach:
• Provides The Same Benefits As The
Create Phase
• Other Benefits Include:
– MOP UP Contract KPI’s Incent
Improved Contractor
Performance
– Improvements in standardizing
Work Packages 9Crew Size,
Etc.) And The Monitoring And
Payment For Work Completed.
– Client / Systems Interfaces
Enable Improved Transparency
And Efficiency, e.g.,
Authorization And Payment For
Work Completed Per Contract
Terms.
120

Work Estimate Breakdown –
Legacy Compared to MOP UP
MOP UP Approach:
• Equipment Cost Estimate Still Based Upon The
Knowledge Of The Equipment Packages, But The
True Composite Materials Costs And Labor (Including
OHP) More Accurately Estimated Through MOP UP
• Estimates For Non-equipment Costs Not Based On A
Fudge “Factor” Ensuring Improved Accuracy Of
Estimate
• MOP UP Separates Composite Materials Costs, Labor
Costs, And OH&P, Ensuring Increased Transparency
And Improved Accuracy Of Estimate
• Provides A Common Approach For All Parties
Reducing “Surprises” And Reducing Client Risks
Associated With The Final Estimates
Equipment
Costs
Composite
Costs
Labor &
OH&P
Costs
Equipment
Estimating
System
Equipment
Costs
Labor &
Composite
Costs
Factor
Legacy MOP UP
Legacy Approach:
• Estimate Built Upon Knowledge Of Equipment
Packages And Using A “Factor” To Estimate The
Composite Materials And Labor Costs
• Reduced Accuracy And Certainty Due To Limited
Knowledge Of True Composite Costs And Labor Costs
• Overhead And Profit (OH&P) Hidden And Not
Recognized Within The Estimate
• No Consistency of Allocated OH&P between or among
sites or regions or contractors
MOP UP
Equipment
Estimating
System
121

MOP UP Local Site Implementation
Readiness
Review
Systems
Processes
Competency
Gap analysis &
Implementation.
Plan
System
Configuration
User
Configuration
System
Interface
Configuration
User Training
& Support
Preparation Implementation Support
Readiness Assessment
Full Implementation Plan
Fully Customized &
Configured System
Ongoing
Support
User Manuals,
Training Materials,
Level 1,2,3 Support
MOP UP
122

MOP UP Interfaces
Maintenance
Planners
Maintenance
Contractors
In-House Project &
Engineering
Staff
In-House
Maintenance
Staff
Plan Create
Operate
ERP SystemsPlanning
Systems
Equipment
Estimating
Systems
OPEX
Systems
MOP UP
123

Quaker Group Maintenance
Performance Improvement
Productivity Discussion
Close Gaps Found in Diagnostic
124

Solution – Unit Rate Productivity:
Craft Management
125

Maintenance Contract Change Plan
Using Unit Rates (MOP UP) To Improve Performance
Unit Rates 2009
YR 2 Target Contract Factor
SITE D
Existing Contract Strategy
Contract Factor at Contract Award
Quaker
Best Practices
Target Performance
MOU Enabled
SITE A
SITE B
SITE C
Solution – Unit Rate Productivity:
Craft Management
Quaker Group Spend Map
“As Is – To Be” Gap Analysis
Transparent Corporate
Contract
MOP UP Transactional Web -
Based Platform Solution
Continuous Improvement
Process
Industry Specific Unit Rates
For All Disciplines
Client Benefits
MOP UP Unit Rates
Institutional
Knowledge
126

Unit Rate Planning, Scheduling And
Contracting
127

Asset Optimization Best Practice
Assessment
Overall Objectives
• To Align Asset Management Improvement With Business Objectives
• To Identify Areas Of Best Practice And Opportunities For Improvement
• To Provide A Detailed Plan With Projected ROI For Improving
Maintenance Productivity And Operational Efficiency
Achievable
Goals in Next
3 to 5 Years
Current
Status
Score
Quaker
Methodology
Action Plan
Results Radar
Best Practice Audit
Planning Best Practices
128

Target Manpower Utilization
Direct
65%
Travel
10%
Idle At Job Site
1%
Obtain Tools / Mat
5%
Receiving Instructions
3%
Late / Early
1%
Personal Time
2%
Breaks/Relief
10%
Coordination
Delay
3%
Quaker
Group
Best In
Class
Activity Metrics & Crew Size Standards
129

Building Services
Service Schedule
Air Handling Unit
Site:___________________ Contract No:_______ Equipment: ________
Location: _______________ Page: 1 of 1
Manufacturer's Name:Luke AC Pty Model No:80-200 Serial No:N/a
Impellor size: Various KW 22,15,12.75
Pump Service Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec M/Hrs
Check Motor Bearing M 0.05 0.05 0.08 0.05 0.05 0.08 0.05 0.05 0.08 0.05 0.05 0.08 0.72
Check Fan Bearing + A37 M 0.05 0.05 0.08 0.05 0.05 0.08 0.05 0.05 0.08 0.05 0.05 0.08 0.72
Check Vee Belts and tension as req'd M 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.6
Ensure Belt Guard fitted and secured M 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.6
Check filters cleaned M 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.6
Pressure drop across filters M 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.6
Record space temp H 0.15 0.15 0.3
Check operation of condensate trays M 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.96
Clean heating and cooling coils Y 0.5 0.5
Clean Fan blades and cowling Y 0.5 0.5
Lube and adjust damper linkages H 0.25 0.25 0.5
Check op of dampers O/A, R/A, E/A M 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 3
Check op of heating and cooling valves M 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 1.2
Check elec connections Y 0.5 0.5
Check calibrate and controls H 0.25 0.25 0.5
Check air flow switch operation M 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 1.2
Check time clock setting M 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 1.2
Serviceman Man-hours 0.93 0.93 0.99 0.93 0.93 1.64 0.93 0.93 0.99 0.93 0.93 3.14 14.2
labor costs per year: $15,000,000 / yr
130

Site KPI Analysis
45%
55%
65%
75%
85%
95%
February11,2009 March3,2009 March23,2009 April12,2009 May2,2009 May22,2009
ScheduleComplianceEffectivness (Weekly)
%Actual Starts v Scheduled
ActualFinishes v Scheduled
%Job Duration v Estimated
%Reactive Work
%Actual Starts v Scheduled
%Actuals Finishes v Scheduled
%Job Duration v Estimated
Weekly Schedule Compliance & Effectiveness
• Enables Site KPI
Comparisons
• Compare Regions
• Compare Global
Performance
• Company &
Contractor
Performance
• Normalize Planning
Performance For Site
/ Region
• Facilitates Rational
Contract
Performance
Management
131

M
O
P
U
P
M
O
P
U
P
M
O
P
U
P
Maintenance Performance Processes
 What is
planning? PM
 How do we
plan? PM
 How do we
estimate? PM
 How do we
assess? LL
 ↓ Rework!
Planning
1
Scheduling
2
Execution
3
 What is
worked?
 Resource
loaded
schedule?
 Optimized
resources?
 ↓ Rework!
 What is
Supervising?
 How is work
assigned?
 How do we
complete jobs?
 How to assess?
 Minimum Break-
in Work?
 ↓ Rework!
Process
HR Function – KPI’s / Performance Stewardship / Craft Avails
IT Function – MOP UP SAP / Tiger / CCES / Primerva
Business Support – Controllers / Purchasing / Contracts / Legal
Culture
Process
People
KPI’s
People
KPI’s
Work
Selection;
What work
to release
from
Operations
?
Culture
132

Improving Maintenance Work Efficiency
Initial Audit Highlighted A Number Of Key Issues :
• Low ‘Wrench Time’ : Typically 25-50%
• Poor Planning And Reactive Approach Results In
Inefficient Work
• Planned Maintenance Completion Rate Low
• Poor Interface Between Operations & Maintenance
Case Study : 6,000 person industrial site
133

Typical Work Efficiency Improvement
Results
• Improved Efficiency & Productivity
– Approx 20% More Planned Work Delivered
With Same Team
– Much Higher Improvements In Many Cases
– Reduced Reactive Maintenance
• Increased Routine Maintenance Completion Rate
– Improved Reliability
• Visibility Of Resource Utilization
• Smoothed Long Term Plan (Actual Versus Plan)
• Increased Service Factor
134

The Benefits Of MOP UP
MOP UP:
• Supports Knowledge Growth And Bench-
marking Of Project And Contractor
Performance
• Provides A Uniform Platform For All
Stakeholders, Ensuring Improved Accuracy
For Capex & Opex
• Improves The Efficiency Of The Estimating
And Procurement Process Through The
Provision Of A Unified Platform
• Enables Evergreen Improvements Via
Heuristic Functionality
• Enables Clients To Review Their Contractor
Relationships Based Upon Improved
Transparency Regarding Of Cost And Risk
• Supports Accurate Benchmarking And
Validation Of Estimates
• Provides a Scheduling Optimization
Functionality with Full Integration
135

MOP UP Contract
OptimizationTechnology
• MOP UP Has Been Designed On The Latest Microsoft
ASP.NET Technology, Using C+++ Language And
Sequel Server 2010 Databases.
• MOP UP Is Fully Secure And Is Only Available From
Specific Computers Or Fixed IP Addresses.
• SSI Certificates Have Been Applied As Extra Security.
• All System Data Is Fully Encrypted.
• Log On To MOP UP Is Controlled By A Username &
Password.
• MOP UP Has Multi-Language Capability, With The
Language Settings Being Automatically Picked From
The Computer And The User Profile.
• MOP UP Can Be Hosted And Accessed From
Anywhere In The World With Internet Access.
136

Success Factors
• Scoping Study To Identify Business & Engineering
Requirements
• System Design & Configuration To Meet Requirements
• Clear Focus On Ultimate Objectives And Delivery Of Real
Benefits
• Focus On KPIs & Return On Investment
• Integration Of Maintenance Process Improvement As Part Of
The Project. E.g. Work Planning & Management, Stores
Optimization, PM Frequency Optimization
• Project Team Comprised Top Down & Bottom-up Approach
• Configuration Of User-Friendly System
– An Aide To Day To Day Working, Not A Hindrance
– Evergreen process
– Heuristic Capability
137

Practical Issues Associated With
Maintenance Management Systems
• CMMS Not Delivering Against Maintenance Strategy / Objectives
• Lack Of Clear Measures Of Maintenance And Of CMMS
Performance
• CMMS Acting As A Record Of ‘What Has Been Done’ But Not As A
Live And Dynamic Tool To Manage Plant And Workforce
– KPI’s
– Benchmarks
– Scheduling (Heuristics)
– Crew Make-Up / Size
• System Not User-friendly
• Asset / Inspection Records Incomplete Or Inaccurate
• Lack Of Ownership Of Maintenance IT
• Integration of Planning, e.g., CMMS, and Scheduling, e.g.,
Primavera, Systems 138

Overview: Upgraded Performance
Solution (UP)
139

Quaker Group Technical Services
The Quaker Group Can Either Educate And Train Staff To
Complete These Activities Themselves Or Provide
Resources To Assist In The Following Technical Areas:
• Arm Analysis – Availability, Reliability, And Maintainability
Analysis Completed As Part Of Improvement Programs
For Employed Capital
• FMECA And RCA – Failure Mode, Effects, And Criticality
Analysis, And Root Cause Analysis
• TPM And OEE – Total Productive Maintenance
(Continuous Improvement Techniques, Autonomous
Maintenance, Etc.) And The Implementation And Use Of
Overall Equipment Effectiveness
• Asset Verification – Where A Client Has A Large And
Diverse Asset Base We Assist Them With The
Verification Of The Physical Assets And The Subsequent
Population Of The Asset Information Within The ERP /
CMMS System.
• Condition Monitoring – Working With Technology
Partners We Are Able To Provide Fully Outsourced
Condition Monitoring Services That Utilize Advance
Web-delivery Systems To Ensure Up To The Minute
Information Display.
140

Issues Associated With
Maintenance Management Systems
• CMMS Not Delivering Against Maintenance Strategy /
Objectives
• Lack Of Clear Measures Of Maintenance And Of CMMS
Performance
• CMMS Acting As A Record Of ‘What Has Been Done
– Not As A Live And Dynamic Tool To Manage Plant And
Workforce And Improve Performance
• System Not User-friendly
• Asset Register Incomplete Or Inaccurate
• Engineering Analyses Don’t End Up In CMMS E.g. RCM, RBI
Etc
• Lack Of Ownership Of Maintenance IT
141

Quaker Group
Maintenenace
Improvement:
Project Approach
Discussion
142

 Enhances and supports local site practices; example GAME ME
principles
 Solutions designed, implemented and delivered by experienced
resources
 Full program redesign or Project Specific Options to augment
Client resources
 Solutions focused on Client needs and can be delivered without a
large formal program
 Exxon Pilot Plant Time on Tools with daily/weekly gap closure
recommendations
 Gulf Coast Planner Training designed with short and long term
deliverables
 Shell Deer Park T/A Time on Tools
Maintenance Improvement
Philosophy
143

ExxonMobil Baton Rouge Planning Improvements
 Evaluated maintenance planning practices and designed site specific solutions
 Conducted on site training for approximately 30 planners using estimating standards
 Implemented Planner assessments and grading process
 Developed end of job sustainability model for site
 Conducted 3 day onsite Planner Training
Gulf Coast Planner Training Conference
 Conducted offsite planner training for several refineries and chemical plants
 Trainining included real world assignments with industrial pictorials
 Received very high course ratings
 Several sites have requested additional on site support
Recent Projects
144

Overview of Suggested Project
Approach
Long Term Improvements
and Efficiencies
Improve Reliability and
Reduce Non-productive Time
Existing Maintenance System
Analysis and Diagnostics
 Comprehensively
analyze existing
maintenance systems
 Evaluate Maintenance
HSE (Health , Safety
and Environmental)
focus
 Suggest Best
Practices as
appropriate
 Immediately apply
Best Practices to
realize incremental
improvements and
increased reliability
 Identify gaps in existing
repair systems and
apply Best Practices to
gain long term savings
and efficiencies
 Utilize Pilot program to
confirm success of
long term improvement
strategies
Step 1 Step 2 Step 3
The Quaker Group suggests a 3 step approach . . .
. . . based on an early focus on analysis and change efforts
145

Detailed Project Approach: Step 1
 Review methods being utilized to execute daily maintenance
- Communications between Operations and Maintenance Personnel
- Planning Systems
- Scheduling Methods and Tools
- Execution Practices
 Recommendations to incrementally improve existing maintenance
- Utilize existing computer systems
- Early failure detection allow for planning and timely material delivery
- Job Plans based on work complexity
- Personnel/Resource utilization via Scheduling
- Fix It Right execution repair practices to reduce non productive time
 Immediate application of Best Practices to realize incremental improvements and increased reliability
- Non-productive time saves via PM oil analysis programs
- Spare parts program to reduce wait time
 Recommendations and training for long term
and Efficiencies
146

and Efficiencies
 Institute pump/rotating equipment reliability program
- Equipment Operator rounds to ensure oil levels within specifications
- Oil Sampling and Analysis process for early failure warnings
- Early remedial repairs to prevent catastrophic failures
- Failure analysis and learnings on key impacts to run time
- Transition to Run-Time performance monitoring metrics
 Reduce rig equipment failures
- Implement operating envelopes on key equipment and stay within their limits to realize
maximum reliability
- Analyze failures associated with vibrations, shock, surges and apply long term engineered
solutions to prevent repeat failures
- Early failure detection allow for planning and timely material delivery
- Job Plans based on work complexity; do not over plan
- Personnel/Resources utilization via Scheduling
- Fix It Right execution repair practices to reduce non productive time
147

(continued)
and Efficiencies
 Immediate application of Best Practices to realize
incremental improvements and increased reliability
- Non-productive time saves via PM oil analysis
programs
- Spare parts inventory management to reduce
wait time
 Implement Rework Tracking program to identify and
eliminate repeat failures
 Implement prioritized equipment bad actor program
to focus technical resources on high margin repairs
148

and Efficiencies
 Management leadership
- Decide which work management process to implement
- Transition improvement process to all levels and train everyone on work process
- Hold workers accountable for results and celebrate successes
 Planning, Scheduling and Execution
- Ensure Operations and Maintenance utilize a common repair priority system
- Identify failures early and release to Planning
- Plan work based on job complexity
- Schedule resources to drive efficiencies and lower cost repairs
- Train First Level supervisors on how to set expectations and not overstaff jobs
- Train crews to work safe and utilize work crew assignment sheets
 Implement Long Term Improvements
- Conduct Job plan assessments and grade planners
- Evaluate and grade field execution supervisors
- Conduct Time on Tool Studies
- Finalize inventory management system
- Implement a few key performance metrics (Safety, Cost, Efficiencies,etc) 149

Work Selection
 Common work order & priority system between Operations Maintenance
 Agreed upon return to service dates that allows repairs to be completed when
needed and time for Planning, Scheduling and Execution
Planning
 Formal Planner Training using Equipment planning Standards
 Assess job plans and grade Planners (Excellent, Good, Fair , Poor)
 Measure effectiveness versus final field costs
Scheduling
 Optimized resource and mechanical equipment schedule
 Multi-craft Teams work directed by schedules
Execution
 Formal training and job assessments with individual grades (Excellent, Good, Fair, Poor)
 Technician work crew assignment sheets
 Daily schedule attainment metrics
 Technician self reporting end of day work performed and job delays encountered
 Rework System
 Time on Tools data analysis and gap closure recommendations
Maintenance Improvement Strategies
(Examples)
150

Performance Improvement Hypotheses
Preliminary and illustrative
What work practices and activities, if improved, would bring the biggest benefit?
Hypotheses:
 Having a clear work scope from Operations.
 All parts on hand before work starts.
 Right sizing the crews. Do not overstaff jobs.
 Work practice to tell Operations what next day equipment to prepare for Maintenance
 Execution FLS leadership training on setting expectations and using work crew assignment sheets
 Optimized scheduling practices
 We will prove with Time on Tools monitoring an objective resource.
. . . And remedying these issues typically gets a +/- 25% efficiency improvement.
Preliminary
Not Exhaustive
. . . and the return on this work is immediate with little / no investment and a direct
impact on the bottom line.
Several initial hypotheses emerge immediately with respect to the refinery maintenance
function . . .
151

Quaker Process Industry Maintenace Performance Improvement

Quaker Process Industry Maintenace Performance Improvement

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