Refinery Goes from Fourth-Quartile Turnaround Performance to 905k USD Increase in Net Margin

CASE STUDY

Refinery Goes from Fourth-Quartile Turnaround Performance to 905k USD Increase in Net Margin

Solomon’s detailed critical path review drastically reduces turnaround duration, revealing significant cost savings.

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CHALLENGE

A refinery was experiencing consistently longer turnarounds than its peers and wanted to significantly improve its performance.

SOLUTION

Solomon performed a detailed review of the refinery’s turnaround plans, identifying duration reductions across three units.

RESULTS

The turnaround reductions resulted in a net margin increase of 905k USD.

TURNING AROUND TURNAROUNDS

A refinery was experiencing turnarounds that, due to their scale and complexity, were consistently lengthier and more costly than those of the refinery’s peers. As a result, the refinery’s performance levels had dwindled from the third to the fourth quartile. Recognizing a need for change, the refinery engaged Solomon to perform a detailed review of its turnaround planning and scheduling. Because of the magnitude of the turnarounds, this project assessed work plans for only three of the refinery’s process units.

Figure 1. Existing Workflow Process

^{Scheduling constraints}
^{Manpower loading}
^{Equipment constraints}
- ^{Bundle pullers}
- ^Cranes
- ^{Power requirements}
- ^{Other tools and vehicles}
^{Material staging and laydown areas}
^{Personnel schedules}
- ^{Night shift}
- ^{Coffee breaks}
- ^Meetings
^{“Day 1” workload}
^Process

Solomon’s review covered work execution methods, salaried and contract labor, work schedules, logistics support, and the refinery’s mobile equipment plan. It also examined how the refinery’s current work plan integrated all aspects of the turnaround, including:

Maintenance work, including blinding and deblinding
Project (capital) work
Operations shutdown and startup plans
Inspection plans
Mobile equipment plans
Small tool logistics
Safety permitting and staffing
Environmental logistics

Solomon also assessed equipment preparation procedures for gas freeing, steaming out, chemical cleaning, and equipment turnover prior to the start of and upon completion of maintenance. Pre- and postturnaround plans were reviewed to determine whether they affected the overall turnaround schedule, and Solomon also examined how effectively personnel time was used, looking at meeting schedules, agendas, attendees, communication assets, etc.

FINDING EFFICIENCY, UNCOVERING DOLLARS

Solomon identified process unit turnaround duration reductions that were agreed upon by the refinery’s cross-functional team and are listed below in Table 1. Table 2 goes on to illustrate the results of the turnaround engagement — a 905k USD increase in net margin due to production time gained from those reduced turnaround durations.

Table 1. Process Unit T/A Duration Reduction

Table 2. T/A Review Net Margin Increase Summary

The reduced critical path for each process unit resulted in reduced turnaround cost. Changes in maintenance work procedures made a significant impact on cost, though the full reduction in turnaround cost was not determined in the review due to a limited assessment of three units.

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Refinery Goes from Fourth-Quartile Turnaround Performance to 905k USD Increase in Net Margin

Refinery Goes from Fourth-Quartile Turnaround Performance to 905k USD Increase in Net Margin

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