Schedule vs. Cost Management Earned vs. Burned Hours (Tracking) Field Change Orders Turnaround Warehousing Practices
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2 Agenda Introductions Project Overview What is a Turnaround? Turnaround Solution Concepts: Schedule vs. Cost Management Earned vs. Burned Hours (Tracking) Field Change Orders Turnaround Warehousing Practices Lessons Learned Can the Turnaround Solution Help Me?
3 Placid Refining Co., LLC Independent & Privately Owned Refinery located in Port Allen, Louisiana Produces: Unleaded Gasoline, Diesel Fuel, Commercial Jet Fuel, Military Jet Fuel, Heavy Fuel Oil, & Liquefied Petroleum Gas Processes 56,000 BPD of crude oil (over 98% of current capacity) Is in a constant cycle of improvement and is currently being expanded to increase the capacity of the refinery to 80,000 BPD Awards: Principal Financial Group s 10 Best Companies in US OSHA Voluntary Protection Programs (VPP) "Star Level Multiple Distinguished Safety Awards from the National Petroleum Refiner's Association Past winner of Independent Supplier of the Year Award presented by the Petroleum Marketers Association of America
4 EDI Florida Corporation Based Out of St. Petersburg Founded in 1999 Specialists in: Maintenance Process and Technology Consulting EAM Implementations Asset/Facility Walkdowns and Data Collection IBM-Certified Training Center Designers of Custom Maximo Add-Ons: Turnaround Management EDI SuiteReq
5 What is a Turnaround? Shutdown of an entire plant or section of a plant for the purpose of executing: Inspections Preventive Maintenance Deferred Corrective Maintenance Capital Projects Goal: Achieve as much work as possible in tight time window to minimize impact to lost production.
6 Turnaround Challenges Managing a large number of outside contractors and temporary labor. Making effective use of Rental equipment. Managing new, unplanned work that arises from inspections during the Turnaround. Managing the tremendous amount of materials that are needed in a short amount of time.
7 Turnaround Phases Pre-Execution: Physically preparing work-site and equipment. Planning work activities. Defining the schedule. Procuring Parts, Labor & Equipment Execution: Physically executing the work. Reporting progress and actuals. Creating/planning follow up work. Managing Schedule and Cost. Post-Execution: Physically disassembling work-site and activating equipment. Actuals data reconciliation. Invoice payments. Material reconciliation.
8 Schedule vs. Cost Management Two major management concerns during a Turnaround: Schedule Cost Allocation/Tracking Managers must be able to easily manage a single schedule of all activities, but still track the separate cost roll-ups of individual funding sources.
9 Schedule vs. Cost Management Solution Features: Enhanced Cost Management Application to Included GL-Account Functionality. Work Order inherits GL from Capital Project associated If no Capital Project assigned, GL comes from Location or is set manually. New App (Turnaround Tracking) Created for Viewing WO Hierarchy to 4 Levels on 1 Screen.
10 Schedule vs. Cost Management
11 Earned vs. Burned Hrs. Tracking The most critical metric for day to day management of a Turnaround is Earned Value vs. Burned Hours. Earned Value: Percent of Work Completed x the Budgeted Cost of that Work. (WO Plans) Burned Hours: Actual Cost to Complete the Work. (WO Actuals) Required for management to quickly see where schedule slips or scope creep is jeopardizing budget or timeline.
12 Earned vs. Burned Hrs. Tracking Solution Features: Percent Complete attribute was added to Work Order tasks to be updated as actuals are reported. Reports were created to utilize percent complete, along with planned costs, for calculating Earned Value and comparing with Actual Costs.
13 Earned vs. Burned Hrs. Tracking
14 Field Change Orders One of the largest risks in Turnaround management is the impact of unplanned work that is discovered during a Turnaround. These Field Change Orders must be integrated into the project plan, but still identifiable separately so their impact on schedule and budget can be monitored. The cost/time associated with these WOs must supplement the Earned vs. Burned analysis.
15 Field Change Orders Solution Features: Checkbox added to Work Orders for marking as Field Change Order. All other aspects of these Work Orders are handled identical to other TAR work. Reports created that allow the user to roll-up Field Change Order costs and analyze them along with Earned vs. Burned metrics.
16 Field Change Orders
17 Turnaround Warehousing A Turnaround puts incredible strain on both the Physical Warehouse and Warehouse Management. An organization must have the ability to track the incredible in-flux of parts in a short amount of time without jeopardizing steady state operations. At end of TA, all inventories for Turnaround should be 0 or easy to identify and integrate back into central stores.
18 Turnaround Warehousing Solution Features: Created separate virtual warehouse specifically for Turnarounds. Inventory procured for TA isolated from steady-state inventory. All standard Inventory processes still apply to these parts. Bins for each temporary storeroom/yard. Reorder points set to -1 Created Pick Ticket application for creating storeroom reservation requests (regardless of WO status.)
19 Turnaround Warehousing
20 Summary of Solution Benefits Ability to Manage Cost and Schedule Concurrently. Ability to Track Earned vs. Burned Hours Ability to Track Field Change Orders and Their Impact on the Turnaround Ability to Effectively Manage Turnaround Inventories
21 Lessons Learned During Implementation Data Dependencies! Tremendous data collection and organization effort All metrics based off structured data which needs to be kept up-to-date in real time Training! Elegant solutions are only as good as the people using them Early identification and involvement of all affected parties during implementation
22 Could the Turnaround Solution Work For You? Do You Manage Large Shutdowns or Overhauls Without an Effective Management/Tracking System? Do You Have Difficulty Managing Complex Projects With Dependent Tasks and Multiple Funding Sources? Do You Have Peaks in Your Workload and/or Inventories During Predictable Time-Periods? If Yes, you might benefit from the Turnaround Solution.
23 Questions?
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