Turnaround Risk Workshop

AP-Networks was enlisted to help a recent turnaround team identify and manage their risks in a more pro-active and systematic fashion. The turnaround was over 500,000 direct field labor hours and included a significant amount of capital work. The previous turnaround at the site did not perform well and one of the key lessons learned was the need for better risk management. The AP-Networks team started the process by facilitating a risk brainstorming session that included all key disciplines. The APN senior consultants helped drive the conversation by using the unique APN database of turnaround risks . Once the risks were identified, a scoring system was established to rate both the severity of the risk and the likelihood of it occurring. Risk owners were assigned and response plans defined for the most severe risks. A risk register containing the details of each individual risk and the action plans were provided to the team as a key deliverable.

Upstream Project System Review

AP-Networks was brought in by Gazprom, the Russian oil & gas firm to act as Gazprom’s representative and Subject Matter Expert (SME) in an audit of project systems and procedures. The audit was for the Sakhalin Energy Investment Company (SEIC) in which Gazprom is a Joint Venture partner. SEIC carries out oil & gas production and exploration in the Sea of Okhotsk, off the east coast of Sakhalin Island, Russia. The audit team included members from SEIC and Shell.

Upstream Project – Setting Business Priorities

AP-Networks was brought in by an international client to assist in the decision making regarding whether/how to proceed with the development of a marginal gas field in the Norwegian Sea. The project was in the early appraisal stages and AP-Networks role was to facilitate and guide the discussion between commercial, technical and production teams to help them evaluate various options for development of the field. AP-Networks was able to assist the teams in reaching a clear view of the project objectives and viability.

Upstream Project Cost Estimate and Schedule Risk Analysis

AP-Networks was brought in by an international client to carry out a cost estimate risk analysis (CERA©) and associated schedule analysis on an investment project. The project was for an offshore field development in the Gulf of Thailand. The development included manned and unmanned platforms, as well as floating storage. Using its specialized, in-house CERA & SERA tools, AP-Networks was able to provide advice to the client on the probability of the project hitting certain key milestone dates, as well as advice on the contingency required in the cost estimate and the accuracy range to assign to the estimate.

Turnaround Assist Program (T-AP)

AP-Networks has recently conducted two T-APs for a large Canadian oil company. AP-Networks offers the basic T-AP process in three separate stages prior to shutdown: T-AP 1 (Alignment), T-AP 2 (Challenge), and T-AP 3 (Readiness). For this particular company, a Challenge Session (T-AP2) was first conducted, followed by a Readiness Session (T-AP3). During the Challenge Session, the client’s Turnaround Readiness Index was well below that of industry turnarounds of like size and complexity. Our estimates suggested the client’s Startup Schedule would have overruns of more than 40% and Cost overruns of 35%. Several recommendations were proposed by our consultants to manage and mitigate these potential risks. A few months later when AP-Networks’ staff returned to conduct the Readiness Session (T-AP3), it was evident the client had implemented many of our suggestions. Their Turnaround Readiness Index was substantially above that of their industry peers, and their potential Startup Schedule and Cost overruns had improved to 15% and 10%, respectively. With more than 800 turnaround engagements under our belt, the practices and methodologies we use have consistently generated measurable results for our clients.

Downstream Integrated Review

AP-Networks has recently conducted the first stage (T-AP 1) of our downstream integrated review for a large Canadian oil company. The review was conducted at Canada's largest oil refinery which produces 300,000 bpd. Recently, AP-Networks piloted an extension of our basic T-AP process to better address the risks arising from large capital projects (>$500 MM) executed during the shutdown window. This new process is what we refer to as the integrated review. Like the basic T-AP process, the integrated review is conducted using the identical T-AP stages: T-AP 1 (Alignment), T-AP 2 (Challenge), and T-AP 3 (Readiness). This client has requested our services for all three of these stages. Beyond utilizing our consulting services, this company has also licensed Turnaround Network and recently completed a Risk Based Scope Review (RBSR).

Biofuels Project Readiness Assessment

AP-Networks recently conducted a Project Readiness Assessment on a new Biofuels plant, in Europe, for a major chemical company. The project utilized cutting edge technology to demonstrate the viability of using a new feedstock which could lead to the beginning of an innovative and sizeable market. The engagement ensured that there was alignment on the key business drivers, project objectives, and performance standards (KPIs) prior to project execution. In addition, the review identified some key gaps in the definition process that could potentially jeopardize meeting key project objectives. AP-Networks' consultants worked closely with the project team to establish a plan to minimize these gaps and keep the project on track.

NaviTrack Customizations

Since the 4^th Quarter of 2008, AP-Networks has been working closely with a number of our clients to customize and develop their turnaround work process and bring it to life through the use of NaviTrack. NaviTrack dramatically improves the likelihood of achieving optimum turnaround readiness by applying knowledge and experience gained from analyzing our database of more than 800 turnarounds worldwide. Customization of NaviTrack allows the world's best turnaround practices, in conjunction with each company's particular work process, to be assembled into one "plan-to-plan" that is automatically generated for the complexity of your turnaround. AP-Networks has completed the customization process for three major oil companies, and in the next couple of months will have completed this process with another three clients.

Upstream Integrated Review

AP-Networks has recently conducted an upstream integrated review for an oil production facility off the western coast of Africa. The review was done during what we term the mid-execute phase. This engagement was completed over the course of two different meetings, one in November and the other in December, held during the detailed engineering and early construction phases of the turnaround and capital project. The meeting in November took place in Houston and primarily focused on the capital project. The second meeting took place in western Africa where we focused our efforts on the turnaround while tying in the findings from the capital project meetings to ensure alignment of all stakeholders and teams going into shutdown.

Project Challenge Workshop

AP-Networks performed a Project Challenge Workshop for a major Canadian oil refinery. The goal of this large-scale revamp was to significantly expand the capacity of the refinery and to meet the planned shutdown window which was constrained by an aggressive schedule. AP-Networks' consultants worked closely with the project team to fully understand the schedule slippage risks, to establish a detailed response plan for the most serious risks, and to provided the team with a risk register to track progress.

Pyxis licensed by Canadian company

A large Canadian oil company recently licensed Pyxis, a web-based risk analysis and management tool for capital projects and turnarounds. Derived from the Greek word for compass, Pyxis helps teams easily navigate the risk management process. It provides a means of identifying risks, assessing their impact, and tracking risk response actions on a real time basis. Pyxis can be used at all stages in the life cycle of a project or plant turnaround. Originally, Pyxis was primarily used as a risk analysis and management tool for capital projects. This company, however, has primarily used Pyxis in association with turnarounds and outages. Their license speaks to the value of Pyxis and shows that whether a company is undertaking a mega-project or a routine turnaround, risks exist that must be managed and mitigated.

Project Risk Workshop

AP-Networks was enlisted to help a recent project team identify and manage their risks in a more pro-active and systematic fashion. The project estimate included more than a million direct field labor hours, and included a significant amount of environmental and operational risks. The previous project at the site did not perform well, and one of the key lessons learned was the need for better risk management. The AP-Networks team started the process by facilitating a risk brainstorming session that included all key disciplines. The AP-Networks’ senior consultants helped drive the conversation by using our proprietary database of the most common project risks. Once the risks were identified, a scoring system was established to rate both the severity of the risk and the likelihood of it occurring. Risk owners were then assigned, and response plans defined for the most severe risks. A risk register containing the details of each individual risk and the action plans were provided to the team as a key deliverable.

Capability Development Program Support

In 2005, AP-Networks began supporting the design, development, and delivery of a super major's capability programs including a corporate "college" and several residential learning programs. Our world-renowned experts leveraged AP-Networks' capability in automation and processes, and applied them to learning and organizational development. After successfully delivering and continuously managing (to the present date) the corporate project management college, AP-Networks was engaged by the super major to design, develop, and deliver a managing operations college, which has successfully launched in early 2010.

Risk Based Scope Review

In 2005, AP-Networks developed a risk-based scope methodology aimed at optimizing turnaround scope to ensure reliability and to minimize cost and other risks. As is the unique and powerful practice with all AP-Networks solutions, the application of the risk-based scope methodology consists of a Risk Based Scope Tool (RBST), along with on-site, face-to-face expert Reviews (RBSR). Over the years, RBSRs have proven to show tangible and significant monetary results, substantially increasing requests for this type of review by our clients. Recently, AP-Networks conducted RBSRs for two separate companies. One of the companies, operating a large oil refinery producing 500,000 bpd, saw scope reductions valued at over $2.3 million. The second company, a much smaller oil refiner producing 80,000 bpd, also saw significant scope reductions, currently estimated at $1.7 million. Regardless of size or complexity of a particular refinery's turnaround or project, RBSR engagements have continued to add value by positively impacting a company's bottom line.

Enterprise Risk Management Application for Super Major

AP-Networks has recently developed and customized an enterprise risk management application for one of the world’s largest and most prominent energy companies. This particular engagement took a two pronged approach. The first step involved further development and refining of a fledgling risk management process. The second step took the refined and robust process and provided software development services to create a fully developed, web-based, enterprise risk management system. Our consultants further provided implementation and adoption assistance to ensure our client was effectively brought up to speed from a user standpoint. Currently, there are over 3,900 individual users with more than 20,500 risks in this application. In addition, the system has more than 15,400 risk response plans with over 800 unique risk registers (120+ Business Units, 130+ Programs, and 570+ Projects). AP-Networks’ risk management and software development expertise combined with a collaborative approach to meet our client’s needs generated a system that has proven to add value to our client’s everyday work.

Work Process for Alternative Energy Company

In late 2005, an existing AP Networks’ client, an integrated super-major, announced plans to make a substantial investment in alternative energy and formed a global Gas, Power and Renewables business unit. The client proceeded aggressively to assemble a management and project development team from across the industry to identify, acquire and develop significant wind power generation. AP-Networks was engaged by the client to document the current project development process for Wind Power Projects, within the client’s North American Wind and Thermal Business Unit. AP-Networks documented the process and identified significant gaps and mis-alignments with the client’s established corporate governance process for representing, evaluating, and approving resource commitments.

Upstream Turnaround Assist Program

For the past two years, AP-Networks has worked with a major oil company to implement a turnaround assurance program for its North Sea offshore facilities to improve performance and minimize lost production. The program included the implementation of Alignment, Challenge, and Readiness Workshops at key points prior to the summer shutdown season. The company also licensed the AP-Networks’ Upstream Turnaround Readiness Pyramid to measure the status of planning and team alignment. The individual turnaround teams relied on the Turnaround Readiness Index (TRI) as the key leading indicator to track progress. The program helped the company achieves its best ever overall turnaround performance in terms of schedule, safety, and operability during the 2008 season.

Project Design Development Procedures Review

In 2009, AP-Networks worked with a leading international general services contractor to review their pharmaceutical project design development procedures and provide advice on areas for improvement.

Project Cost Estimating Procedures

In 2009, AP-Networks worked with a major BioPharmaceutical firm, providing consulting advice on development of cost estimates and the design package detail required at each estimate level.