KIP\'s for Shutdowns, Turnarounds and Outages...

1. KPI’s for Measuring & Controlling STO Projects E.J. (Ted) Lister Lister Management Inc.

3. Definitive Definitions

4. The 4+ Key Performance Indicators

5. Measuring Performance

6. Trending, Forecasting

8. Slide 4 Project Controls / Project Management Overview – cont’d… Establish Project Controls at project kick-off Work-list / Work-scope Budget What-if scenarios / Risk Management KPI’s and Targets Project Management begins at Work-list cut-off Work Management (Direct) Resource Management (Indirect)

9. Slide 5 Definitive Definitions Planned Value Estimate of Wrench-hours for an activity Earned Value % complete of a planned activity based on field status Actual Value Cost measurement; also used to measure worker performance Longest Job Zero-float, determines the duration of the outage Not to be confused with critical path, which accounts for risk

10. Slide 6 Definitive Definitions – cont’d S-Curve Chart of values distributed along wrench-hour/time x y axis Baseline A snapshot of the initial plan/schedule before feed-out Performance Earned vs. Planned, Actual vs. Earned, Actual vs. Planned What-if Scenarios Leveling a programmed plan to determine the best case scenario based on cost, schedule duration, and wrench-hours

15. Indirect (115% of Direct) = $21.5M

17. Slide 10 The 4+ Key Performance Indicators Worker Performance… Set realistic direct wrench-time for worker performance No more than 75% Remember, once you determine direct wrench-hours all indirect resources and logistics are based on this number If you don’t use strategic planning to support this number your chances of achieving this target will be diminished Use productivity factors based on: season, location, worker experience, resource availability (inspectors, cranes, etc.)

18. Slide 11 The 4+ Key Performance Indicators Schedule… Establish a schedule in your planning software with a clearly defined WBS (Work Breakdown Structure) and Phase The WBS is a vertical hierarchy of physical locations The Phase is a horizontal section of work types Use What-if Scenarios to determine the longest job (series of planned activities with no float) Control the longest job; manage the remaining tasks

19. Slide 12 The 4+ Key Performance Indicators Cost… The cost is based on Work-scope + Indirects + Contingency = Budget Costs can only be controlled through Work-scope changes Costs are managed, not controlled, through performance Costs need to be measurable based on direct and indirect; found and added; WBS and Phase

20. Slide 13 100% Or Total Planned Man-hours Original Man-hour Overrun Schedule Slippage STATUS = % COMPLETE or MHRS Schedule Variance New Scheduled Man-hours New schedule affected by activities not completed as per schedule plus added and extra work Original Baseline Scheduled Man-hours Earned Man-hours Original Target Current Day New Target Focus on Work Ahead History TIME Measuring Performance Project Performance S-Curve… Baseline Planned Earned Value - WP Actual Value - $ Found/Added Work Historical Trend Forecast

23. Slide 16 Measuring Performance Updating – cont’d… No uncompleted work can ever appear behind the status date line Use earned value % complete; do not try to capture actual start and finish times

26. E.J. (Ted) Lister Lister Management Inc. akaboreese@hotmail.com