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Industrial Maintenance Roundtable

February 1998

SHUTDOWN, TURNAROUND MANAGEMENT

A report by the Shutdown, Turnaround Common Interest Work Group concerning: · · · · · · contract management, scoping, planning and scheduling, financial control, execution reporting, safety, execution management and KPIs.

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SHUTDOWN, TURNAROUND MANAGEMENT

A Report Prepared for the Industrial Maintenance Roundtable by the Shutdown, Turnaround Common Interest Work Group February 1998

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Brian Olver Bob Rosevear Dirk Schroor Steve Thorsby John Tonkes Ed Tuazon Don McGillivray Tony Grassi Noel Hardie Lawrie Morzenti Frank Taranto Stephen Peach Graeme Wigg Stan Kodric Spiro Marinakis Geoff McConnell Bill Charters Terry Davis Roger Krueger Joao Santos Paul Steinhardt Fabian Erle David McCleane Jamie Collis Dennis Drentin Michael Kearny Jim Arthur Bill Holmes

Ampol Refineries Ampol Refineries Ampol Refineries Ampol Refineries Ampol Refineries Ampol Refineries BHP HBI BP Kwinana BP Kwinana BP Kwinana BP Kwinana BP Bulwer Island Esso Huntsman Chemical Co Huntsman Chemical Co Huntsman Chemical Co Kemcor Kemcor Kemcor Kemcor Kemcor Mobil Refining Australia Mobil Refining Australia Shell Shell Shell Strategic Industry Research Foundation Strategic Industry Research Foundation

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TABLE OF CONTENTS

1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0

Executive Summary Contract Arrangements Scoping, Planning and Scheduling Financial Control Turnaround Execution Reporting Turnaround Execution Management Turnaround Safety Key Performance Indicators

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APPENDICES

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 BP Oil - "Turnaround Best Practices" Ampol - "Contract Trend (Industry)" BP Oil - "Contract Strategies" Ampol - Turnaround Management Process Kemcor - Turnaround Philosophy Statement BP Oil - Scope Change Procedure BP Oil - Cost Control Structure Kemcor - Cleaning Standards Kemcor - Cleaning Inspection Procedure Kemcor - Valve Repair Procedure Shell - Shutdown Execution Management Mobil - Take 5 Program Mobil - Checklist for Identifying Hazards BP - Job Safety Analysis Worksheet BP - Permits Ampol - Incident Report and Turnaround Safety Statistics Ampol - Operating Procedures Kemcor - Turnaround Information Booklet Mobil ­ Safety Evaluation Questionnaire Turnaround Schedule

Note: These are available upon request from SIRF

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1.0 EXECUTIVE SUMMARY

Elements of Best Practice Turnarounds

Contract Management · Relationship between contractor and principal is built on trust · A common goal is required between principal and contractor Planning and Scheduling · Planning commences 12-18 months prior to turnaround · Teams are established · Cut off date for work is fixed · Definition of work to be included · Information systems established · Ownership of turnaround by all in the organisation Financial Control · Financial management system reports costs within 48 hours of expenditure · Budget for emergent work is 10% Turnaround Execution Reporting · Computer based reporting systems accessed · S charts to plot progress · Meetings at least daily between principal and contractor to report progress and plan future work Execution Management · Effective pre-turnaround planning · Labour force working as a series of teams · Utilise simple tools such as sign-off sheets and tagging · Establish cleaning standards Safety · Ownership of safety by all on site is essential · Risk analysis and job safety analysis lead to a safer turnaround KPIs · KPIs in place to track: · Environment, health and safety

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· · · · ·

Schedule and progress Costs Additional work Lost time and delays Reliability

Recommendations

1 An industry wide induction training program be developed to cover the common elements of induction training so that contractors need only company specific induction prior to the commencement of each turnaround.

2

An industry wide training program for breathing apparatus and confined space entry be developed to avoid repetition of training where it is not required. The safety managers from each organisation meet to discuss the differences and commonalities of rescue procedures.

3

Narrative

This document provides an overview of the techniques used by leading companies to manage shutdowns and turnarounds. The emerging trend in the management of large contracts is towards "alliance" partnerships between the principal and prime contractor. These partnerships are built on "trust" and are formulated to ensure that both principal and prime contractor are driven towards common goals. Characteristics of this style of contract are provided. Comparisons are made of the way that contract management is evolving at organisations represented in this Common Interest Work Group. A detailed description of the evolution of contract management at one organisation is included as Appendix 2. Appendix 3 contains an example of a reward scheme that links contractor profit (or loss) with the principal's business goals.

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The planning of turnarounds is fundamental to their success. Planning ideally starts 12-18 months prior to commencement of the turnaround. Key issues to address in the planning phase include establishment of teams, managing the cut-off date for projects, defining what work is to be included, establishment of information systems and establishing ownership of the turnaround throughout the organisation. The underlying philosophies of turnarounds developed by Kemcor are included as Appendix 5. Appendix 6 is a change of scope procedure and Appendix 4 is Ampol's turnaround management process. Effective financial control is essential to control costs during turnarounds. Most companies have a tracking system which records expenditure within 24-48 hours of activities being undertaken. The budget for emerging work is typically 10%. Appendix 7 is an example of a structure to control costs during turnarounds. Reporting progress of the turnaround relies on effectively accessing up to date information from teams implementing the turnaround and recording the information. A number of computer based tools are used in addition to S charts to plot progress. Meetings take place on at least a daily basis between to principal and the contractor to record progress and plan future activities. Effective execution of a turnaround requires the management of a large labour force as well as a large number of mechanical activities. Effective execution is a function of pre-turnaround planning, a labour force working as a series of teams and implementation of simple work management tools such as sign off sheets, S curves for tracking work and tagging as a visual tool to monitor progress. Cleaning is a time consuming task during turnarounds and disagreement often arises over if a vessel is sufficiently clean. Establishment of specifications of what is clean rectifies this issue. Appendices 8-11 cover a range of issues associated with execution management. Safety is considered the most important issue during a turnaround. A safe turnaround work environment is dependent on the whole turnaround team wanting to have a safe turnaround. Ownership of safety is achieved through induction programs, on-going safety programs such as Take 5 and the provision of a variety of incentives. Techniques such as Job Safety Analysis and Risk Analysis help reduce the risk associated with tasks and contribute to a safer work environment. Appendices 12-18 cover a range of issues associated with safety.

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Recording and monitoring key performance indicators (KPIs) is essential to monitor progress and performance of a shutdown. They provide regular up to date information. Some KPIs are recorded to measure ongoing progress and provide a management tool in particular areas. Other KPIs are set as targets to indicate desired outcomes from a turnaround. Areas within a turnaround that are tracked through KPIs include Environment Health and Safety, Schedule/Progress, Costs, Additional Work, Lost Time/Delays, and Reliability.

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2.0 CONTRACT ARRANGEMENTS

Developments in the Approach to Contract Management In the past organisations tended to use internal resources to plan and execute shutdowns and turnarounds, with contract resources used to supplement internal resources, particularly the trades labour force. Generally there was little priority placed on involving the contractor in developing or understanding the work plan. Contracts tended to be based on schedule of rates with little attention to contractually binding the contractor's objectives to the business needs of the principal. More recently organisations have tended to use "lump sum" contracts with schedule of rates to handle extra work. These contracts have aligned goals to some extent, particularly in the area of total cost of the lump sum portion of the work. However there were often divergent goals when it came to extra work and to quality of work. The contractor also became more involved in the planning of work not only to better cater for the cyclic nature of the work but also to improve flexibility and efficiency in execution of the work. Currently the trend is towards an alliance partnership. Typically the contractor has costs reimbursed however the contractors potential profit is at risk, and is dependant on performance of the work in a way that satisfies the principal's business goals. Typically the contractor is responsible for planning the bulk of work. Figure 1 shows how the nature of major contracts has changed in the organisations represented on this Common Interest Work Group. Figure 2 is a "fish bone" diagram showing important considerations involved in alliance partnerships. Appendix 2 illustrates in some detail the trend in contracting at AMPOL Kurnell and shows the changes required in philosophy. Appendix 3 provides an example of clauses that might be found in alliance style contracts to specify how contractor's profit is associated with the principal's goals.

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Fig 1. Trends in Contract Management for Shutdowns and Turnarounds

AMPOL

In house planning Lumps sum for major P work A · Timesheets for "extra" S work T · · ·

BP KWINANA

Planning - close cooperation between in house & contractor · Prior to 1996, Target manhours, lump sum. · In 1996 included performance rewards · · · · · ·

ESSO offshore

In house maint. plans maint. work and projects plan projects work · 70% Lump sum · 30% schedule of rates · Used an internal contractor group · · · ·

HUNTSMAN

In house planning In house management Schedule of rates for labour hire

MOBIL

Evolved over the years. Typically; · In house planning · Lumps sum for major work · Timesheets for "extra" work · Performance reward based on KPIs · Alliance · Planning - integrated effort by in house and contractor · Reimbursable labour at cost · Fixed management fee · Profit (risked reward) based on performance KPIs ·

SHELL

In house planning with contractor for detailed planning · Lumps sum for major work · Timesheets for "extra" work ·

· Planning 80% P contractor, 20% in house R on critical work E · Lumps sum for major S work E · Timesheets for "extra" N work T · Management fee · Safety bonus to charity

F U T U R E

· · Planning 80% contractor, 20% in house on critical work · Fixed management fee with profit at risk based on KPIs. · Schedule of rates to cover labour, supervision and defined resources ·

Planning - close cooperation between in house & contractor Alliance contract Target manhours, no lump sum Schedule of rates to cover labour, superv'n & resources Profit based on performance KPIs Safety bonus to charity Continue to perfect current strategy

In house maint. plans maint. work and projects plan projects work · External contractor · Mostly fixed price · Extras by schedule of rates

Large Turnarounds · Contractor plans · Agree on fee · Contr'r manages · Extras by schedule of rates Smaller Turnarounds · In house planning · Fixed price · Extras by schedule of rates

In house planning with contractor for detailed planning October 96 Geelong · Fixed management fee · Reimbursable hours · Bonus on KPIs Clyde · Fixed price · Extras by schedule ·

·

As for present but with a · Continue to perfect current strategy shift to alliance relationship

·

Continue to perfect current strategy

Not yet defined

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Fig 2. Characteristics of Alliance Contracts - The Emerging Trend in Turnaround Management

Understand each others business Management fee Reimbursement of costs Long term minimum 3 years Profit at risk based on KPIs eg. duration, quality, reliability, safety The principal formulates sub contracts, but the sub contracts are managed by the prime contractor (ie the alliance partner) Quality Duration Safety Profit Sufficient work in the contract to make the arrangement desirable for both parties Common procedures for planning and execution of work Periodical review of systems and procedures to streamline for the benefit of both parties Shared software and planning systems

Common accounting procedure

Effective communication of engineering standards

ALLIANCE

Flexibility to have procurement where it fits best. Eg. with the principal for inventory stock, with the contractor for non inventory. Payment, cash flow strategies to keep the costs down Clear definition of roles. Eg. who places orders, expedites, inspects, receives, preserves, etc. Clear definition of roles No them and us Understand each others jobs No duplication Best person for the job Build on success Team building exercises Trust is an all encompassing, underlying requirement Time is required to develop the understanding between the partners Periodic review

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3.0 SCOPING, PLANNING AND SCHEDULING

Effective scoping, planning and scheduling of is recognised as a critical element of successful turnarounds. Ideally for major turnarounds, this process should start 12-18 months prior to the commencement of the turnaround. Many companies consider insufficient elapsed time is normally allocated to this task. Insufficient time for planning and new work "cut off" dates that are too close to the turnaround are major causes of time and cost over-runs. One major difficulty experienced during the planning phase is identifying all projects to be undertaken by the set cut off dates. This is a function of issues such as staff ownership of projects, staff understanding of the turnaround process and work priorities. There will always be a certain number of tasks that will be identified during the turnaround itself. Turnarounds are becoming less frequent at individual sites as statutory requirements have changed. In many instances this has resulted in less experienced personnel participating in the turnaround. The key elements critical in the planning phase of a turnaround are captured in the "fish bone" diagram, Figure 3. Additional issues for consideration with turnaround planning are: · · Identifying issues not captured in the planning phase. Preparation activities prior to the turnaround are often not as well planned as the work is in the turnaround. Compatibility of systems and tools between principal and the contractor, such as: financial information planning tools (the contractor may use a different planning tool to the principal).

·

·

Documented post-mortem to be prepared for use with the next turnaround. Turnaround teams are often disbanded prior to post mortem.

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· · ·

Rigorous analysis of all data gathered. Safety. Just-in-time delivery of parts is being promoted for financial reasons. This has implications for equipment that requires testing (and in some cases repairs) prior to installation.

Appendix 4 is Ampol's turnaround management process. Appendix 5 is an example of a philosophy statement prepared by Kemcor which addresses many of the underlying issues when preparing for turnarounds. Appendix 6 is a procedure developed by BP for change of scope.

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4.0 FINANCIAL CONTROL

In order to prevent blow outs in the cost of a turnaround, accurate and frequent financial reporting is essential. Without reporting systems in place to capture the cost of additional work the costs cannot be monitored and controlled. Most companies have reporting systems in place capable of capturing the costs within 48 hours of expenditure. Authorisation for additional work, including unexpected work, in most companies comes from the Turnaround Manager. Within the USA some of the smaller independent petrochemical complexes place a ceiling on the maximum cost on a turnaround prior to commencement. There is no ability to undertake additional work if this cost is to be exceeded. Ampol in Brisbane have established a partnership approach to work with contractors during turnarounds. There is no financial supervision of the contractor, however, a system monitoring costs which contains up to date information is in place. Figure 4 tabulates how each if the Common Interest Work Group member companies approach financial control. Appendix 7 is an example of the structure BP has put in place to control costs.

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Figure 4

Comparison of Turnaround Financial Control Practices

Company

Budget for emergent work1

10% 10% 15%

Time to achieve 100% accuracy cost control (including man hours and variations)

Costs captured against

24 Hours

48 hours

1 week

1 month

3 months Equipment and work order. eg. cleaning costed to the vessel.

Ampol (Qld) Ampol (NSW) BP (Qld) BP (WA) Huntsman Kemcor

Yes Preliminary costs Preliminary Final

6 work categories. Final Contractor labour and variations Summary of costs Variations Equipment and work order. Overall accounting groups. Overall accounting groups and large pieces of equipment such as a vessel. A single entry for all valves and another for all cleaning. Procurement costs against "units" or operational areas. Labour costs against equipment such as vessel or tower.

10% 10%

Materials and internal labour Contractor labour

Shell

10%

Summary of costs

1

Allocated % of total budget

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5.0 TURNAROUND EXECUTION REPORTING

Execution of a turnaround is a team activity. The teams undertaking the work are formed for relatively short duration's, and comprised of a combination of contractors and on-site personnel. Reporting mechanisms need to be in place to allow the efficient flow of information from fitters up to the Turnaround Manager and the turnaround manager down to fitters. There is one or several daily meeting(s) meeting between the Turnaround Manager and the managers of various aspects of the turnaround, including contractors. Some companies meet first without the contractor and then meet with the contractor, whilst others have only a single meeting. Work is generally distributed to managers or supervisors prior to the commencement of the turnaround. These managers and supervisors are responsible for the day to day implementation against the plan. Progress of the turnaround is monitored S on charts and other wall charts. Computer software such as primavera, MS Project, Excel, Artemis and Open Plan are also used to track work. Figure 5 tabulates how each of the Common Interest Working Group member companies manage execution reporting.

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Fig 5 Comparison of Execution Management and Reporting Practices

Company Management structure and meetings Management tools How work is distributed How emergent work and scope changes are addressed Who signs off additional work Work 7 days per week on critical path1 Take day Can you see off per history on week on your non Computer critical Maintenance path2 Management System

Yes No

Ampol (Qld)

A single team meets once per day for 10-15 minutes. Meeting comprised of 2 Ampol staff and 15 contractors, no differentiation between contractor or Ampol personnel. Meet twice each day for 30 minutes at 8:00 and 5:00 with a team comprised of Ampol and contractors. Meeting focused on critical path and safety. Meeting attended Turnaround Manager, Contractor Manager, Safety Manager, Area Manager and project managers and planners.

Software - Excel - Primavera - MS Project. A wall chart provides feedback to planners. Separate S curves for each area.

Driven by budget which is set at start of turnaround and supervisor organises work on a daily basis.

Formal written procedure.

Shutdown manager for all variations.

No

Ampol (NSW)

Shutdown manager for all variations.

Yes

Yes

BP (Qld)

Software - Artemis 7000 with additional software. Wall chart - pert chart - sign off on wall Separate S curves for each area

Work identified on plan and managed by area supervisor.

Formal written procedure.

Sign off required from a series of managers, with final sign off by Turnaround Manager.

No

Yes

Yes

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BP (WA)

Job cards issued to project manager at the commencement of the turnaround.

Huntsman

Kemcor

Shell

A single daily meeting focussed on safety and general issues. Stork provides an area supervisor and planners. Huntsman provides a Turnaround Manager. 2 teams (principal and contractor) prior to turnaround. Becomes a single team during turnaround. Kemcor meet at 10am and meet with contractor at 11am. Meet again with contractor at 4pm to discuss priorities for next day. 2 teams which work from 1 office. 4 meetings a day attended by Shutdown, Engineering and Contract Managers and planners. 30-60 minute meetings. (Morning and evening handovers and split by north and south site).

Software - Primavera Wall chart Single S curve for the turnaround Open plan Wall chart - sign off as complete Separate S curves for each area

All work distributed at Mainly verbal approval with some supporting the commencement of paper work. the turnaround and managed by supervisor. Report against weekly and daily schedule. All work distributed at the start of the turnaround in work booklets. Managed by area managers. Formal written procedure.

Engineering Manager can sign off scope changes to approx 150 hours. Above this Turnaround Manager approval required. Turnaround Manager.

Yes

Yes

Yes

No

Yes

No

Yes For operations, initial sign off required by turnaround coordinator, followed by turnaround manager.

Yes

No

Software - Open plan Wall charts - sign off as compete Separate S curves for each area

Daily milestones are reported to supervisor.

Formal written procedure.

Shutdown engineer can approve 50 hours or less. Shutdown manager can approve 100 hours or less. Overall site manager approves greater than 100 hours.

Yes

Yes

No

1 2

Do you plan to work 7 days per week on critical path Do you take a day off per week on non-critical path

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6.0

TURNAROUND EXECUTION MANAGEMENT

Maintaining effective teams is essential for a successful turnaround. These teams perform best when they have been formed prior to the commencement of the shutdown and stay together for the entire turnaround. The teams need to include inspectors. A single turnaround hut in which the turnaround team is based helps coordination and team work. Work during the turnaround is recorded on sign off sheets. Tagging is used for visual identification such as: · · · · to manage cleaning, testing, repairs for inspection acceptance to indicate when a particular team can commence work to ensure equipment such as valves are installed at the correct location

Tagging may also be used to track work on the minor work list. Cleaning has caused problems in a number of turnaround, particularly in deciding on how clean is clean. This has led Kemcor to develop standards for cleanliness which are included in Appendix 8. Kemcor's cleaning inspection procedure is attached as Appendix 9. Regulations on cleaning also change between turnarounds. Meeting acceptable levels for benzene is a common problem. Ampol is trialing Zymeflow, a chemical cleaner which dramatically reduces cleaning times.

Company Ampol BP Huntsman Kemcor Shell Purging Practice Fresh water flushing, steam, chemical, Zymeflow with steam Fresh water flushing, nitrogen, steam, acid clean Fresh water flushing, steam, nitrogen Fresh water flushing, nitrogen, steam, chemical cleaning Fresh water flushing, nitrogen, steam

Turnarounds are labour intensive activities. Companies are continually striving to reduce the elapsed turnaround time. Companies typically work two 10 hour shifts, 6 days per week and 7 days per week on critical path. The seventh day is usually used as a catch up when progress falls behind schedule. Night shifts are usually used to undertake activities such as cleaning, NDT and welding. Figure 6 is a "fishbone" diagram illustrating the key elements of successful shutdown and turnaround execution.

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Appendix 8 is an example of Kemcor's cleaning standard. Appendix 9 is Kemcor's cleaning inspection procedure. Appendix 10 is Kemcor's valve repair procedure. Appendix 11 is a copy of Shell's presentation of shutdown implementation.

Note: Available on request from SIRF

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7.0 TURNAROUND SAFETY

Safety is considered the issue of highest importance when conducting a shutdown. Safety needs to be owned by all participating in the shutdown but overall responsibility lies with the Turnaround Manager. Providing a safe work place is also a legal requirement. Training is a key element leading to safe turnarounds. Induction training commences at the start of each shutdown for all contract personnel. In some instances company personnel undertake the induction training too. Specialised training is also undertaken for personnel who need to use breathing apparatus and enter confined spaces. Within Victoria four facilities access a pool of around 500 contractors. If in a single year these contractors were all employed on each of the sites, and a common induction program was in place, industry savings of around $750,000 could be made. (Assumes 3 x 1 day inductions not required and the cost per contractor is $500/day). The Shutdown Turnaround CIWG recommend that: Recommendation 1 An industry wide induction training program be developed to cover the common elements of induction training so that contractors need only company specific induction prior to the commencement of each turnaround. An industry wide training program for breathing apparatus and confined space entry be developed to avoid repetition of training where it is not required. The safety managers from each organisation meet to discuss the differences and commonalities of rescue procedures.

Recommendation 2

Recommendation 3

Practices which have led to safer work places include programs such as Take 5, Job Safety Analysis and a work permit system. Various incentives have been offered to employees and contractors to increase commitment to safety such as bonuses, prizes for questions, rewards for good practices, donations to charities and a family day out. A comparison of turnaround safety performance between companies is presented in Figure 7.

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Figure 7 - Turnaround Safety Record Site Incident Target Rate (per million hours)

0 17 0 33 0 0 0 0 -

Actual Rate (per million hours)

0 8 500 20 0 32 284 0 10 946 0 50 433 0 16 48 10 185 -

Ampol NSW

BP WA

BP QLD

Huntsman

Kemcor

Mobil

LTI MTI First Aid Near Miss LTI MTI First Aid Near Miss LTI MTI First Aid Near Miss LTI MTI First Aid Near Miss LTI MTI First Aid Near Miss SI1 First Aid Near Miss SI = LTI + MTI

0 -

1

Figure 8 is a list of practices which lead to safe shutdowns. Commonalities and differences between companies are identified.

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Examples of individual programs aimed at improving safety performance are listed in the appendices: Appendix 12 Appendix 13 Appendix 14 Appendix 15 Appendix 16 Appendix 17 Appendix 18 Mobil - Take 5 Program Mobil - Checklist for Identifying Hazards BP - Job Safety Analysis Worksheet BP - Permits Ampol - Incident Report and Turnaround Safety Statistics Ampol - Operating Procedures Kemcor - Turnaround Information Booklet

Note: Available on request from SIRF

Figure 8 Key Issues for Providing a Safe Work Environment During Turnarounds

General Safety Issues · Safety is a shared responsibility. · No job is so important that safety is ignored. · There is a legal requirement to provide a safe work environment. · Shutdown safety has different elements to day to day operations. · Medicals - Huntsman require contractor to provide information that people are fit to do the jobs. - BP WA sights medicals for confined space and BA tasks. - Mobil relies on contractor to provide suitable personnel through alliance. - Kemcor relies on contractor to provide suitable personnel through alliance. Job Safety Analysis (JSA) · Mobil and BP prepare JSA standards for each work practice and procedure. The first task undertaken is to prepare a hazard matrix. · Ampol Qld utilise JSA where there is no standard procedure. · Ampol NSW do not have separate JSAs. · Mobil use JSAs as a guide. They are flexible and can be changed. JSAs are attached to permits. At Mobil the JSA is undertaken by a team comprised of an operator, contractor and safety officer. The JSA represents procedures not generic tasks. · Kemcor utilise risk analysis instead of JSA. Job procedures and permits cover most of the information on a JSA form. Training · Confined space and breathing apparatus tasks must comply with Australian Standards. · Different amounts of induction training are undertaken by different companies. · Kemcor are now putting more effort into site specific induction such as hazard

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management. · Different rescue philosophies have led to different rescue training programs. Investigation and Prevention of Accidents · Reporting near miss accidents may lead to the incidents not being reported. As an absolute measure LTIs may not be particularly good as incidents can be hidden. The process needs to be undertaken in a positive way. · Appropriate levels of investigation are required. A relatively minor incident which had no potential to become life threatening requires less analysis than a more severe incident. · A severity index is utilised by Mobil to assess all near misses in order to assess how severe they were and what the potential would have been for a more major incident. · Feedback on safety to the workers is provided at toolbox meetings and in bulletins which are posted in the huts. · Mobil report only one set of safety statistics for the contractor and company. Emergency Rescue · Different sites have different rescue procedures. Some sites utilise their own specialised team whilst other rely on outside services. - Ampol Qld use emergency services. - Ampol NSW have a specialised in-house group (front line fire group). - BP WA have the a specialised in-house group and bring on site a rope specialist. - Kemcor have found that trial rescues are a slow procedure. Kemcor now place their efforts in stabilising a person and rely on outside help to get person out. Permits · Permits are a mechanism to manage work - what is to be done and when. · If lots of new people are coming on site who may not understand operations, a very rigid permit system is required to ensure safety. · Getting permits is time consuming, there is pressure to reduce time. · Electronic permits have been developed by Ampol. These make re-issue an easy task. There is a reluctance by operators to use the electronic permit system. · Kemcor utilise pre-printed permits. · Blanket or defined area permits are utilised by BP, Kemcor and Ampol for areas when equipment has been isolated. These are not applicable for the alkylation unit due to the presence of acid. · Separate permits are issued for hot work and cold work. BP Qld have no permits for cold work. · Tagging has been successfully used to indicate when a task is complete such as scaffolding. Take 5 · Adopted by Mobil, Kemcor and Ampol

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· Not used by BP and Huntsman · Mobil started using it half way through a turnaround when the number of accidents was beyond anticipated levels. They have found it to be very effective. Blinding and Spading · Line rated blinds are generally used for vessel isolation at all companies. · In some cases spades may be used and special dispensation is generally required. · In some old equipment at Mobil spades are used. · Blinds may be marked by tagging, stamping and with colour to indicate pressure rating. Incentives · Charity donations are in the order of $6-8,000. · Movie tickets are given out by Ampol Qld in recognition for safety. · Ampol NSW have given money to a charity nominated by workers- this accumulates each accident free day. · Huntsman have given prizes which are linked to a bulletin question. · Mobil had a formula where a charity was nominated and a money provided daily but the pool was halved with each accident. This was not effective as a couple of accidents at the end of a turnaround led to a loss of moral associated with the program. · Kemcor have given prizes for answering induction questions - this has proved very popular. · Kemcor has given flowers to wives. · Contractor safety officer gives out lollies - an effective tool. · Mobil have given families a pass to Luna Park and the zoo in recognition for good performance. This allows families to help support the notion of safety. These have been very well received. · Have a break - Mr Whippy, pie truck, BBQ are effective. · New incentives need to be applied with each turnaround.

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9.0 KEY PERFORMANCE INDICATORS

KPI's are developed and used to enable turnaround performance to be monitored and measured on an ongoing basis. They provide up to date information on a daily basis. In turnarounds KPI's have application across several areas: · KPI's are indicators of trends to identify areas where extra effort or focus is required. · KPI's are indicators against which overall performance of a turnaround will be measured. · KPI's are linked to contractor profit in alliance relationships. · KPI's can be used to generate score cards to measure individual and departmental performance. · KPI performance is linked to an individual's pay. · KPI's are used in international ranking of performance such as the Solomon Index. The KPI's used to measure turnaround performance are listed in Figure 9. Mobil have a system where KPI's contribute to a score card value which provides an objective measure of performance in a number of key areas. To ensure that accurate information is being collected and entered into databases, planners undertake spot checks of performance. Extra effort is generally placed on critical path items. Supervisors commonly keep some time "up their sleeves" to cover for time overruns in other tasks, this practice distorts reported KPI's. Near miss injuries are collected but not reported as a KPI measuring overall performance. There is a concern that recording near misses as a reported KPI will lead to non reporting of incidents which would be counter productive. A culture needs to be developed that reporting near misses and other KPI's such as environmental performance will lead to improved performance in the future. A questionnaire developed by Mobil to measure levels of understanding of safety issues is included as Appendix 19. During a large turnaround several questionnaires are required as within a week most people on site will be aware of the questions being asked and the questionnaire no longer becomes an objective measure of safety understanding

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Figure 9 ­ KPIs Used to Measure Shutdown Performance

Turnaround KPI Environment Health and Safety · Serious Injuries (LTI + MTI) · First Aid Injuries · Near Misses · Safety Audits · Environmental Incidents Schedule/Progress · Plan · Actual · Earned (productivity) Costs · Plan · Actual · Earned Additional Work · Plan vs Actual · % Complete · Earned/Variation Lost Time/Delays · Weather · Permits · Industrial Relations Reliability · Discrepancies vs NCR's (non conformance report) · Impact on start up · Number of NCR's Mobil Ampol BP Qld BP WA Kemcor Huntsman

T M M M T

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M T M

M M M

M M M

M M

-

T ­ KPI measured and reported against target M ­ KPI measured to monitor performance

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APPENDICES

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 20 21 20 BP Oil - "Turnaround Best Practices" Ampol - "Contract Trend (Industry)" BP Oil - "Contract Strategies" Ampol - Turnaround Management Process Kemcor - Turnaround Philosophy Statement BP Oil - Scope Change Procedure BP Oil - Cost Control Structure Kemcor - Cleaning Standards Kemcor - Cleaning Inspection Procedure Kemcor - Valve Repair Procedure Shell - Shutdown Execution Management Mobil - Take 5 Program Mobil - Checklist for Identifying Hazards BP - Job Safety Analysis Worksheet BP - Permits Ampol - Incident Report and Turnaround Safety Statistics Ampol - Operating Procedures Kemcor - Turnaround Information Booklet Mobil ­ Safety Evaluation Questionnaire Turnaround Schedule

Note: These are available upon request from SIRF

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Turnaround Schedule (30,000 hours or greater) Company Facility City Dates for Turnaround Total Man Hours Start Finish BP Oil Kwinana Perth April 98 May 98 180,000 BP Oil Kwinana Perth Sept. 99 Sept. 99 120,000 BP Oil Kwinana Perth Sept. 00 Oct. 00 70,000 Ampol Kurnell Sydney Feb. 98 March 98 160,000 Ampol Kurnell Sydney May 98 June 98 >30,000 Ampol Lytton Brisbane July. 98 August 98 100,000 Ampol Kurnell Sydney Feb. 99 March 99 160,000 Ampol Kurnell Sydney Feb. 00 March 00 120,000 Ampol Kurnell Sydney March 01 March 01 60,000 Ampol Lytton Brisbane March 01 March 01 60,000 Ampol Lytton Brisbane Aug. 01 Aug. 01 100,000 Ampol Kurnell Sydney Feb. 02 March 02 120,000 WMC KNR Perth March 98 March 98 150,000 WMC KNR Perth March 01 March 01 150,000 Kemcor Altona Melb. Oct. 98 Nov. 98 170,000 Shell Geelong Geelong Oct. 98 Nov. 98 30,000 Shell Geelong Geelong March 99 April 99 100,000 Shell Clyde Sydney Feb. 99 March 99 50,000 Shell Clyde Sydney Feb. 00 March 00 80,000 BP Oil Bulwer Is. Brisbane Jul.99 Oct. 99 153,000 BP Oil Bulwer Is. Brisbane Feb 00 March 00 30,000 Mobil Adelaide Adelaide Sept. 99 Sept. 99 30,000+ Mobil Adelaide Adelaide June 00 June 00 30,000+ Mobil Altona Melb. Aug 00 Aug 00 30,000+ Mobil Altona Melb. July 00 July 00 30,000+ Huntsman Melb. Melb. Nov. 98 Nov. 98 28,000

Schedule Last Updated Nov 97 Nov 97 Nov 97 Nov 97 Nov 97 Nov 97 Nov 97 Nov 97 Nov 97 Nov 97 Nov 97 Nov 97 Nov 97 Nov 97 Nov 97 Nov 97 Nov 97 Nov 97 Nov 97 Nov 97 Nov 97 Feb 98 Feb 98 Feb 98 Feb 98 Nov 97

Contact Details

Ampol Kurnell ­ Ed Tuazon Ph. 02 9668 1302 Ampol Lytton ­ Dirk Schroor Ph. 07 3362 7155 BP Kwinana ­ Tony Grassi Ph. 08 9419 0387 BP Bulwer Island ­ Stephen Peach Ph. 07 3243 7333 Huntsman Chemical ­ Spiro Marinakis Ph. 03 9316 3441 Kemcor ­ Roger Krueger 03 9258 7333 Mobil ­ David McCleane 03 9286 5832 Shell ­ Jamie Collis Ph. 03 5273 8469 WMC ­ Joe Keane Ph. 08 9439 0000 This information is also available over the internet at the address: http://www.sirf.com.au/

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