accenture energy apas core maintainingrefineryasset
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7/27/2019 Accenture Energy APAS Core MaintainingRefineryAsset
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Maintaining Refinery Assetsfor High Performance
An Accenture point of view for the downstream refinery sector
Accenture Plant andAutomation Solutions
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Across the downstreamrefinery sector, Accenture seestwo main factors affectingproduction and overalloperations performance.First, day-to-day costs formaintaining assets in apetroleum refinery continueto rise. The challenge forexecutives is to reducemaintenance costs and sustainthose cost reductions in aneffort to improve razor-thin profit margins without
jeopardizing futureproduction plans.
Second, many refineriesoperate with originallyinstalled equipment datingback two or more decades.While some componentshave been updated, theheavy use of aging assets
has brought the issue of asset reliability to the fore.This urgency is due notonly to production loss andincreased operating expenses,but also to the potential toadversely affect the healthand safety of employeesand local communities (andthereby damage a company’sreputation) in the event of anasset failure.
Accenture has identified
three leading practicesfor maintaining assets forreliability and, ultimately, highperformance:• Develop equipment-specificstrategies to focus oneffectively addressing failuremodes.• Improve maintenanceefficiency to ensure all work
(whether proactive or reactive)is executed effectively.• Enhance support effortsto better enable, accelerateand sustain equipment-specific strategies andmaintenance efficiency.
Rising maintenance costs and agingassets hamper quality production
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Each refinery likely will have a differentstarting point on its journey to improving assetmaintenance and reliability. For example, somefacilities may require full improvement initiatives,while others may require only a re-evaluation of existing operational strategies, or a reinforcementof the processes necessary for the sustainability of performance improvements (see Figure 1).
Stage 2
Maintenance improvement
activities under way
What steps can a refiner
take at this stage?
• Evaluate supply chain
support to reduce working
capital and further improve
productivity.• Implement a program to
manage deployment of
improvements across
facilities.
Stage 3
A focus on continuous
improvement
What steps can a refiner
take at this stage?
• Investigate optimal systems
and technology
enhancements to better
enable the continuous
improvement program and
drive for root-cause
problem solving.
• Ensure full life-cycle
approach to asset
performance by integratingcapital-replenishment
and supply chain
considerations with
refining strategies based on
obtained performance.
Stage 1
Maintenance improvement
initiatives required
What steps can a refiner
take at this stage?
• Develop equipment-specific
strategies to improve
efficiency of planned work.
• Implement an analysis of
root causes to solve
repetitive problems.
• Begin to monitor
performance and develop a
proactive culture.
Figure 1. The journey to maintenance excellence.
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Leading practice No.1:Develop equipment-specific strategies
The primary objective of developingequipment-specific strategies is toimprove the reliability of each asset
over its life cycle. These strategies canhelp maximize an asset’s cost-benefitratio as defined by routine “proactive”maintenance plans. Before developingequipment-specific strategies,Accenture recommends considering:• What are the critical assets of your
refinery?• Based on risk, how do different
activities reduce the probability of failure for each asset?• How are the strategies for specific
pieces of equipment leveraged and
applied to other assets?
Each refinery’s processing unithas its own compressors, pumps,exchangers, tanks, piping network,instrumentation and valves. Theseare all necessary for production.But can engineers pinpoint whichfactors cause each asset to failand determine the impact of thesefailures? What actions, if any, should
be taken to mitigate the causesof failure? Maintenance strategies
are most effective when refinersunderstand equipment failure modesand the benefits that may be realizedthrough alternative mitigation measures.
Accenture believes that developingequipment-specific strategies isthe first step in achieving leadingpractices for refiners. Once acomplete understanding of assetcriticality is developed, a risk-basedanalysis of failure modes and theireffects is used to define the righttasks and actions to implement perasset and failure mode. This processcan help engineers understand whathappens if they continue with currentmaintenance plans or apply differentstrategies. For example, would astrategy such as vibration monitoringbetter mitigate an asset’s failure?
An analysis of each asset can helpfacility managers identify the mostappropriate techniques for predictive
maintenance and operator carepractices. In some cases, developingan equipment-specific strategymay reveal that repeat failure iscaused by a misapplication of anasset and a redesign is required to“refit” a machine for its “purpose.” Inaddition, operating and maintenanceprocedures may require adjustment to
further address the causes of failure.
Regarding maintenance costexpenditures, the rank order of assetsand equipment failure rates can helpsenior management understand therelationship between cost and anasset’s criticality. For example, if anasset is not available, how well canthe refinery produce? What is the
impact on production, safety andthe environment with a functionalfailure? Based on the risk analysis,
management can better understandinvesting in mitigation measures.This analysis supports a life-cyclemanagement approach toasset performance.
Analyzing critical assets from A to Zmay seem like a comprehensive plan,but that type of step-process requiresa lot of time, cost and labor. In themeantime, asset failures continue andmaintenance costs keep rising.
Accenture recommends approachingequipment-specific strategies withoutmaking them major undertakings.Where possible, leverage developed
strategies across asset classesand focus on critical assets first.For example, take the bulk of thedefined work (i.e., the understandingof each asset’s failure modes) andleverage that information acrosssimilar equipment in all areas andprocess units. While one centrifugal
compressor may act uniquely in adifferent production environment,failure modes typically are similarfrom one process unit to the next;some are simply more prevalent inone process environment than inothers.
To help refiners achieve the lowestpossible cost for repairs and activitiesin proactive and reactive work,Accenture recommends applying
Lean Six Sigma principles. This groupof methodologies is widely used indiverse manufacturing industriesbecause it addresses processefficiency and quality. Many facetsof Lean Six Sigma should be appliedthroughout a refiner’s organization,beginning with improvements in theplanning and execution of the work.
Leading practice No. 2:Improve maintenanceefficiency
Lean Six Sigma is an importantmethodology to help drive operationalexcellence in a company. Accenturedefines operational excellence asthe integration of a set of strategieswith excellence in execution so that
new sources of growth, optimizedprocesses and balanced costs aredelivered with minimal complexity,maximum speed and effective changemanagement. The Accenture High
Performance Business researchinitiative has found that the pursuitof high performance—includingoperational excellence—is not only aworthy enterprise, but practicaland necessary.
A refiner’s objective is to increasethe “wrench time” percentage of itscraft personnel (i.e., the actual timecraft personnel are at work, usingtools, in front of jobs), completingmore work with the same resourcesby eliminating waste and non-value-added activities. Based onour experience, we have seenimprovements in craft utilization andwrench time translate to an increasein craft capacity. Examples of wasteor inefficiencies can include:
• Excessive motion to find parts,materials or information about a job.• Disorganized work environments.• Poor communication of needs,timing and scope for the work.
The ability to increase workerefficiency and productivity comesby enhancing the planning andscheduling process—not only forthe internal workforce, but alsofor contractors who augment the
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staff. If a refiner can determine thecorrect timing (when nonemergencywork should be completed toavoid unacceptable risk), then themaintenance department can be givenenough time to plan and organizethe work in order of priority. Thisprioritized scheduling can help reducethe costs associated with the repair—
for example, by avoiding overtime,expediting material/equipment supplyand reducing the need for additionalcontractor resources.
Leading practice No. 3:Enhance support efforts
Asset maintenance and reliabilitycannot be improved in a vacuum.Enhancing support efforts is critical
once transformational activitiesare under way. “Support” refersto anything required (but outsidethe core maintenance function) toexecute the processes previouslydescribed. The procurement,warehousing and supply of materials,parts and services is of primaryimportance in this area. The effectivemanagement of the supply chainefforts can be an advantage forrefiners. For example:• Improving the reliability of materials
supply can contribute to lowerongoing maintenance costs.• Materials can be stored onsite orpurchased as needed—whichever ismore cost effective.• Packaged materials can bewarehoused and “staged” forscheduled, cost-effective deliveries.In addition to the use of hard-good
materials, the use of contractorservices is an important partof support efforts. Based onour experience, a refiner’s bestopportunity for efficiency is tointegrate contractors seamlesslyinto an overall maintenance effort.Regardless of the company logo ontheir work uniforms, in-house experts
and contractors should function asone workforce.Often, refiners assign personnel toa job, but their plans lack sufficientdetail. To specify the full extent of a resource’s activity sequence, theexact resources (e.g., electricians,pipe fitters, etc.) and where they arecoming from (internal or externaltalent) need to be determined.Without predefined work plans,
we have seen many companiesend up planning as they go along.
This approach takes longer andis inefficient. When contractors
participate in inefficiently plannedprojects, their services can end upcosting more due to the terms andconditions of their contracts.
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Sustain improvements to assetmaintenance
In our experience, we have
seen some refiners approachimprovements to assetmaintenance and reliability, butthen lose focus or get boggeddown with the other time-consuming efforts that do notproduce early wins.
The value of improvementinitiatives can get sapped if management does not governthe new processes and leading
practices:
• Efficiency and cost gains can
be lost over time if there is alack of adherence to the newmethodology.• A lack of knowledge transfercan hamper implementationefforts if external resourcesare added.• Insufficient development of skills can create a scenarioin which the organizationcannot replicate the efforts andgains made during the initial
improvement period.
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To allow for a refiner's assetimprovement program to be sustainable,Accenture recommends refineries:
Institute a governance andperformance review processIn reality, this is the make-or-breakelement that determines whether anorganization will be successful andsustain its improvements. A goodgovernance process includes:• Requirements for the leadership in
directing and supporting the ongoingeffort.• A structure of defined roles,
responsibilities and accountabilitiesacross the organization that givesclarity on process details andrequirements, resulting in enhanceddecision-making.• A process for managing the
performance of each facility’smaintenance effort and everyoneinvolved in it, from the corporatelevel to the shop floor. This includesthe continuous improvement aspectof taking necessary actions to furtherenhance performance in light of theinformation being monitored.
With an effective governance
structure in place, refiners cancontinuously monitor and act uponresults, long after the spotlight is no
longer shining on the effort.
Manage change efforts andcommunicationsAs refiners start the journey toimplement the leading practicesdescribed here, managing thechange effort and the necessarycommunications is essential to garnerbroad acceptance and support forthe change that is taking place. Forexample, within one organization
there can be myriad culturalbackgrounds, skills and requirements.It is critical to engage personnel earlyand often so they can understandthe changes and what they meanto them. By keeping the lines of communication open, managementcan keep employees involved andfoster acceptance of the program.
Keeping senior management awareand supportive of the achieved gains
can help assure competing initiativesand strategies do not derail theeffort before this new way of doingthings becomes institutionalized.Without information, stakeholders
can lose focus on your initiatives and
reallocate funding elsewhere.
Build skills and capabilities Changing the guidelines of whatis expected and required is a maincause of stress for employees, if theyare not given the right skills andcapabilities to do their jobs withinthese guidelines. In any changemanagement effort, it is essentialto have a formal training approachto align the right skills with theright role and enhance individualprofessional development.
Managing talent resources anddeveloping individual capabilities doesnot only refer to technical issues,(such as how to repair a compressor);it is equally applicable to managerialand organizational improvementareas (e.g., how a program shouldbe led, what are the organizationalaspects for planning and how problemsolving assists root-cause analysis andcontinuous improvement.) Buildingindividual skills and capabilitiesimproves the success potential for
employees, which benefits thebroader organization.
Make effective use of toolsand technology to best enablethe improvements IT tools and systems make theperformance information of an assetmore readily available to personnel,which allows for more timelycorrective actions. By incorporatingdata and information from ongoing
activities and analyses, refiners canbetter accelerate the maintenanceand reliability improvements withinan organization.
Accenture has collaborated withstrategic vendors and developedan integrated predictive analyticsproduct. This solution provides moretimely information on an asset’scondition while providing a seamlessdashboard of all pertinent information
(including commercial) with whichto make better decisions on whereto focus corrective and improvementactions. With leaner organizations
and the ever-increasing pressuresto reduce costs while enhancingproduction, this product provides theclarity and speed of information tomeet these challenges and ensure
continued improvement. Moreover,this is an area of improvement thatcan benefit refiners who are earlyin the maturity of their reliabilityperformance as well as those lookingto distance themselves from
the competition.
In Accenture’s view,leading practices aresuccessful only if theyare sustainable. Theongoing maintenanceand reliableperformance of assetscan help your refineryon its journey to highperformance.
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High Performance Delivered are trademarks of Accenture.
About the author
Patrick Scullin, senior director—Manage-ment Consulting & Integrated Markets,Process & Innovation Performance
Mr. Scullin has more than 25 years of experience working with chemicals, energy,utility, forest products, metals and min-ing companies. As part of Accenture’s
Process & Innovation Performance serviceline, he is particularly focused on plantsand asset management and helps clientsconceptualize, design and implement pro-cess improvements. In addition to earningan MBA from the University of Houston
and bachelor’s degree in mechanicalengineering from the University of Texas,Mr. Scullin is a Certified Maintenance &Reliability Professional. Mr. Scullin can bereached at [email protected].
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To learn more about the Accenture Energy
industry group, visit www.accenture.com/energy.
To learn more about Lean Six Sigma and theProcess & Innovation Performance serviceline, visitwww.accenture.com/Global/Consulting/Process_and_Innovation_Performance/default.htm.
About Accenture
Accenture is a global managementconsulting, technology services
and outsourcing company, withmore than 181,000 people servingclients in more than 120 countries.Combining unparalleled experience,comprehensive capabilities acrossall industries and business functions,and extensive research on the world’smost successful companies, Accenturecollaborates with clients to help thembecome high-performance businessesand governments. The companygenerated net revenues of US$21.58billion for the fiscal year ended
Aug. 31, 2009. Its home page iswww.accenture.com.
About Accenture Plant andAutomation Solutions
Accenture Plant and AutomationSolutions is a suite of offeringsdesigned for asset-intensivecompanies across industries such asmetals and mining, chemical, pulpand paper, oil and gas, and utilities.Our offering comprises solutionsfor engineering, project and datamanagement; core plant operations;environment, health and safety;enabling services; and, industrial andautomation capabilities. We combine
our extensive industry experience
with our innovative, vendor-neutralsolutions to help you build andoperate plants and assets in a reliable,safe and cost-effective manner.