1. Scheduled Shutdown
Maintenance
What Drives (or
Justifies) a Shutdown?
Prepared By:
John Parfett
Maintenance Manager
Alberta Envirofuels Inc.

2. Best Practices
General
• Shutdown timing is in alignment with companies
business plan.
• Commit the appropriate resources to the
planning phase.
• Develop a Change Management Process to
control the work preformed and the shutdown
costs.
• Ensure that all services required are in place and
under contract if required.

3. Best Practices
Planning
• The Shutdown Planning team has
representatives from all departments.
• The only work performed during the shutdown is
work that cannot be done while the plant is
running.
• Plan for all activities associated with the
shutdown, not just work identified on the worklist.
• Develop detailed plans for the following:
– Health, Safety, and Environment.
– Service Contracts.
– Material Management.
– Facilities Management.

4. Best Practices
Scheduling
• Schedule based on Equipment availability
vs. Resource availability.
• Use Milestone Scheduling with Milestones
set up as measurable activities.
• Develop a Work Breakdown Structure
consistent with the Cost Control Structure.

5. Scheduling Philosophies
• Scheduling parameters, controls and reporting
requirements must be identified prior to work
package and schedule development to enable
scheduling of work on a per shift basis and
provide enough information to make effective
decision regarding schedule
• Each job must have its own schedule
independent of the other work taking place in the
shutdown

6. Scheduling Philosophies
• Include step for potential repair work and
assign no time
• Maximize pre and post shutdown activities
• Schedule must be equipment driven and
prioritized by system (which equipment
needs to be returned to service first as
defined startup sequence), equipment type
and potential for additional work

7. Scheduling Philosophies
• Schedule key resources (e.g. Safety
Watch, Inspectors, plot space etc.)
• An inspection window will be assigned for
activities like x-ray
• Schedules will be reviewed with major
contractors to achieve buy in and realistic
targets

8. Scheduling Philosophies
• The shutdown coordinator is responsible
for the overall schedule and controlling the
float
• Minimize overtime where practical
• Schedule the pre-shutdown work,
operation’s shutdown work, the execution
phase mechanical work, operation’s
startup work, and post shutdown work.

9. Shutdown Drivers
A task required to support your
operational goals that can only be
executed while the process is down. This
will most likely be the Critical Path job.
Categories of Shutdown Drivers:
–Reliability
–Legal
–Health, Safety, Environment
–Business

10. Shutdown Timing
Earliest date Shutdown
Date it drives us Duration
Issue available to IMPACT / Risk of delaying
to shutdown (Days)
shutdown Slowdown
Flare Tip - To be
ASAP Enviro Shutdown 20 Exceedance to Operating Liscence
Nozzle determined
Flare Tip - Reliability Loss of steam to flare and severe damage to
Unknown ASAP Shutdown 23
Damage / Enviro flare tip
To be
DCS Unit 20 determined- level DCS Controller lock up. Loss of control to
September Safety /
Subsystem of risk Shutdown 13 operate the plant and make changes in a
1st, 2005 Reliability
Speed acceptance at timely manner
AEF
BA-2004
Steam Non compliance - ABSA restrains us from
Fall 2006 ASAP Legal Shutdown 12
Generating operating the equipment
Coil
Unit 30 Non compliance - ABSA restrains us from
Fall 2006 ASAP Legal Shutdown 23
Inspections operating the equipment
Non compliance - ABSA restrains us from
Other Plant
Fall 2006 ASAP Legal Shutdown 20 operating the equipment / requirement for
Inspections
Operations on-line inspection planner

11. Shutdown Timing
Option 1 Option 2 Option 3
Spring Summer Fall
Market Conditions •Bad timing for product •Possibly poor timing for •Good timing for product
market product market market
Weather •Not a significant factor •Could be an HSE issue if •Freezing weather conditions
temperature >25°C
Contract Resource •Resources available – one •No competing shutdown •Many large turnaround
Availability competing shutdown •Summer holidays may limit scheduled in September
resource availability •No competing shutdowns in
October
•“Tired” contactor labour
pool – Safety Risk
Company Resources •Work complete before •Summer holiday season – •After holiday season
summer holiday season Family Opportunities
Productivity •Optimal •Effect on productivity if •With cold weather,
temperature >25°C anticipate 40% reduction in
productivity based on
regional labour history &
25% additional cost
Reliability •Earliest opportunity to fix •Steam outage required or
the equipment temporary flare system
•Potentially no work to steam
or condensate systems

12. Shutdown Timing
Peak
PLANT Work JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC
Force 6 13 20 27 3 10 17 24 31 3 10 17 24 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 24 1 8 15 22 29
AT PLASTICS
CELANESE
DOW
ENVIROFUELS 500
ESSO STRATHCONA 50
HUSKY ENERGY 700
NOVA CHEMICALS 100
PETRO-CAN 500
SHELL CHEMICAL
SHELL REFINERY 500
SHELL UPGRADER 1500
SHERRITT 500
SUNCOR 3000
SYNCRUDE 2200/300/500
AGRIUM

13. Budgets
Management Perspective
• Fit to the business plan and annual
budgets
• Total cost to the organization
• Business interruption
• Cash flow

14. Business Goals
Strategic Plan
Business
Shutdown Plan
Plan
Department
Plans

15. Estimate / Budgeting
Cycle
Business Plan
Shutdown Estimate
+/- 25% Frozen Worklist
June 2004 December 2004
Shutdown
September 2005
Business Plan Final A/R
Approval +/- 10%
September 2004 January 2005

16. Shutdown Coordinator
Perspective
• Need to have the costs identified
and tracked into areas that make
sense for future reference.
• Work Breakdown Structure
• Benchmarking

17. Realistic Estimating
• Costs broken into areas that make the
most sense.
– Direct
– Indirect
– Routine Maintenance
– Non Routine
– Opportunity Work
– Operational Costs

18. Direct Vs Indirect
• Direct costs include all activities,
routine and non-routine, that are
directly related to the task and
can only be completed when the
facility is shut down.
– Man-hours, Materials, Equipment,
Rentals
• Indirect costs include all
activities, routine and non-
routine, that are not directly
related to the task.
– Supervision, Scheduling, Time
Sheets, Payroll

19. Routine Vs Non-
Routine
• Routine
– Maintenance jobs that are executed on a
consistent cycle (e.g. pressure equipment
inspections, equipment service plans etc…)
• Non Routine
– Maintenance work that are typically 1 of’s that
present themselves in the period between
scheduled shutdowns (e.g. equipment failures)

20. Opportunity Work
• Work that makes business sense to
execute during the shutdown.
– Catalyst change outs that can be done on line,
scheduled for the same year, but require
significant costs to prepare (e.g. purging,
equipment isolation costs).

21. Operational Costs
• All operational costs associated with Shutting
Down and Starting Up the plant.
– Utilities
• Nitrogen
• Natural Gas
• Hydrogen
• Water
• Chemicals
– Operator and Maintenance Overtime?
– Lost Production?

22. Contingency
• Contingency is the amount of money which
must be added to a base estimate to provide
for uncertainties.
– The amount of contingency added is directly
related to the risk of overrun.
• Contingency is not:
– A slush fund or catch all for predictable items such
as escalation.
– Provision for added or extra work
– Provision for unforeseeable circumstances
(process issues / storms)
– A substitute for good Shutdown management

23. Example
Contingency was calculated based on assessing the risk
value and weight associated with each Risk Factor for the
shutdown. Scope Changes and Productivity (Cold
Weather) were identified as having the biggest impact to
the success of this shutdown. The following table
represents the Risk Factors and their contribution to the
overall contingency:

24. Risk Factor Input Risk Value Input Risk Weight Contribution to Overall Risk
Design Variations
New Technology 3 5.00 6%
Scope Changes 3.5 20.00 27%
Execution Variations
Contract Plan 1 5.00 2%
Performance 2 15.00 12%
Economic Variations
Market Activity 2 5.00 4%
Labor Conditions 2 5.00 4%
Estimating Variations
Material Quantities 2 10.00 8%
Pricing 2 15.00 12%
Escalation 1.5 5.00 3%
Productivity 4 15.00 23%
Total Weighted Project Risk Factor
2.58 100%
Overall Contingency 25%
Estimate Accuracy +/-
23%

25. 50/50 Estimate

26. Building From the
Past
• Establish a baseline or benchmark
• Identify the “Heavy Hitters” as areas for
improvement.
• Allow time to adjust work plans and
estimates based on actual values post
shutdown.

27. Cost Control
• Measure Earned Value and adjust
accordingly.
• Manage shared resources
– Scaffolding
– Safety Watch
• Incentive Contracts
• Effective resource scheduling
• World Class HSE Performance

28. Cost Control
• Costs will be tracked, reported, and
managed on a daily basis.
• The number of Purchase Orders issued to
contractors will be minimized.
• A Work Breakdown Structure will be
developed to track and manage costs.
• Plan ahead!

29. The Influence Curve
100
90
Success Factors
80
70
60
50
40
30
20
10
0
1000 900 800 700 600 500 400 300 200 100 50
Days Before Shutdown

30. Summary
• Use Best Practices
• Get the right people involved
• Alignment with company strategic and
business plans
• Plan ahead