The refining industry has struggled to execute large, highly complex turnarounds on budget and on schedule. Our data indicate that more than two-thirds of turnarounds exceed their planned cost and schedule by 10 percent or have a trip after startup. Forty percent of turnarounds experience a cost overrun or schedule delay of more than
Turnaround outcomes are directly impacted by a number of factors. These factors can be categorized into three types of drivers: inherent risks, scope, and level of readiness. Key factors—including turnaround risk elements, turnaround readiness elements, and organizational capabilities—are quantifiable and can be used by leadership to not only identify problems before they occur, but
Turnarounds are critical events within the maintenance framework of refineries. Today, many industry turnarounds are executed in conjunction with one or more large capital projects. Experience and data show that the inclusion of greater than 30 percent capital project work into a turnaround execution window severely heightens the complexity of the event. The interface
Maintenance Turnarounds are major events for refineries and petrochemical facilities. They typically cost large sums of money to execute. But the cost of executing the turnaround is often dwarfed by the “opportunity cost” of production lost while the facility is shut down. Hence, historically, the development of accurate estimates and strong cost controls has
Many industry turnarounds are executed in conjunction with one or more large capital projects that serve to heighten the complexity of the event. The interface between the capital project and turnaround teams has historically been one of the most difficult to manage and is even more critical when large projects are involved. Case studies
This article examines the allowances and contingencies that are needed in Turnaround estimates, the different methods used for calculating them, and how much money is typically allocated and required. From this, it provides some “rule of thumb” benchmarks for turnaround estimators to use. It then will discuss how the benchmarks might be refined, the
Approximately 1 in 4 turnarounds are considered to be total “train wreck” failures, and nearly 80% of all turnarounds do not meet established goals. Organizations with best in practice processes and procedures can find themselves mired in failure. The reasons for these failures can be complex, subtle and rooted in an organization’s fabric. As
A compelling case will be presented for aggressively driving towards an optimum state of readiness by showing industry data relationships between turnaround readiness and outcomes. The paper will describe the preparation practices that are critical for achieving optimal readiness. The paper will also focus particular attention to the key deliverables and interfaces of operations,
It examines the current state of cost estimating techniques in the field of process facility maintenance turnarounds and offers suggestions on how to improve cost estimate accuracy, by adapting ideas from the capital project world. Download the PDF
This article discusses the importance of turnarounds to the bottom line, the special challenges associated with Oil Sands turnarounds in Alberta, and the practices that can lead to superior performance. The data presented are based on an industry dataset of recent (past 5 years) turnarounds in the industry. The dataset contains more than 500