Successful Integration of

Turnarounds
and Capital Projects

Drivers of Turnaround Excellence

Course Roadmap
Measuring Success and
Failure
Overview of Turnaround Work
Process

Turnaround Integration

Importance of Clear
Objectives
Turnaround Front-End Loading
Components
Team Effectiveness

Integration of Turnarounds
and Capital Projects

Turnaround FEL
ICAT Index
Turnaround Integration
Phases

Contracting

Safety
The IPA Institute - a Division of IPA, Inc.

Module 7 - 2

CONFIDENTIAL

What Is Integration?

Integration is..

Communication
Cooperation
Coordination

The IPA Institute - a Division of IPA, Inc.

Module 7 - 3

CONFIDENTIAL

The Rate of Success at Integrating

Projects and Turnarounds
Most Sites Do Not Have
What It Takes
Successfully
Integrated:
41%

Dysfunctional:
59%

The IPA Institute - a Division of IPA, Inc.

Module 7 - 4

CONFIDENTIAL

Drivers of Turnaround Excellence

Course Roadmap
Measuring Success and
Failure
Overview of Turnaround Work
Process

Turnaround Integration

Importance of Clear
Objectives
Turnaround Front-End Loading
Components
Team Effectiveness

Integration of Turnarounds
and Capital Projects

Turnaround FEL
ICAT Index
Turnaround Integration
Phases

Contracting

Safety
The IPA Institute - a Division of IPA, Inc.

Module 7 - 5

CONFIDENTIAL

Components of TFEL
Project Input Is Required for Those in Red
Scope
Definition

Execution
Strategy

Planning
Status

Turnaround
goals

Roles and
responsibilities

Turnaround
date

Stakeholder
buy-in

Contracting
strategy

Availability of
resources

Worklist for
maintenance,
inspections,
and capital
projects

Schedule
development

Materials
deliveries

Risk mitigation
and
contingency
planning

Shutdown,
startup, and
operations
procedures

Incorporation
of lessons
learned

Detailed plans

Scope control
measures
Work orders /
engineering
packages

TFEL
Index

Job plans
Rigging
plans
Scaffolding
plans

The IPA Institute - a Division of IPA, Inc.

Module 7 - 6

CONFIDENTIAL

Project and Turnaround Process Phases

Capital Project Process

FEL I

G2

FEL II

G3

FEL III

Detailed
Engineering

Pre-TAR
Construction

Timing (and overlap with TFEL phases) of project

phases varies with size
Requires discipline to authorize small projects
early
G1

Definition

G2

Preliminary Planning

G3

Turnaround Execution

G1

Detail Planning

IPA Turnaround Process Phases

The IPA Institute - a Division of IPA, Inc.

Module 7 - 7

CONFIDENTIAL

Integration Starts Early

Capital Project Process

TFEL 0

FEL I

Strategic
Integration

G2

FEL II

G3

FEL III

Detailed
Engineering

Pre-TAR
Construction

Strategic integration takes place

independent of individual projects and
turnarounds, but has a major effect on the a
sites ability to successfully integrate

G1

Definition

G2

Preliminary Planning

G3

Turnaround Execution

G1

Detail Planning

IPA Turnaround Process Phases

The IPA Institute - a Division of IPA, Inc.

Module 7 - 8

CONFIDENTIAL

Strategic Integration Requires

Gated turnaround and project development process
Established near-, medium-, and long-term turnaround
plans for the site
Timing and key milestone dates identified for each
turnaround

Collection of project ideas and potential projects before

loading into the portfolio
Strategic leadership body with decision criteria to
initiate or defer a project
Site manager; technical, maintenance, and operations
directors; and business must have challenge capability to
check vested interest
The IPA Institute - a Division of IPA, Inc.

Module 7 - 9

CONFIDENTIAL

Drivers of Turnaround Excellence

Course Roadmap
Measuring Success and
Failure
Overview of Turnaround Work
Process

Turnaround Integration

Importance of Clear
Objectives

Turnaround FEL

Turnaround Front-End Loading

Components
Team Effectiveness

Integration of Turnarounds
and Capital Projects

ICAT Index
Turnaround Integration
Phases

Contracting

Safety
The IPA Institute - a Division of IPA, Inc.

Module 7 - 10

CONFIDENTIAL

Integration Effects Outcomes

Of Both Turnarounds and Capital Projects

Turnaround
FEL

Turnaround
Outcomes

Integration
ICAT
Practices
Index

Capital Projects
Outcomes

Capital Projects
FEL
The IPA Institute - a Division of IPA, Inc.

Module 7 - 11

CONFIDENTIAL

Project and Turnaround Integration Practices

Improve Effectiveness and Predictability
Outcomes
Integrated
Practices

Cost
Performance

Cost
Growth

Schedule
Performance

Schedule
Slip

Team
Development

Scope of
Work
Execution
Plan
Execution
Control Plan

Turnaround
The IPA Institute - a Division of IPA, Inc.

Capital Project
Module 7 - 12

CONFIDENTIAL

The ICAT Index

Integration of Capital Projects And
Maintenance Turnarounds

Team
Development

Integrated
Scope of
Work

Execution
Plan

Execution
Control
Plan

ICAT

The IPA Institute - a Division of IPA, Inc.

Module 7 - 13

CONFIDENTIAL

ICAT: Team Development

Capital Project Process

FEL I

G2

FEL II

G3

FEL III

Detailed
Engineering

Pre-TAR
Construction

Identify a steering team

Identify the turnaround team members

TFEL 0

Include operators on the team

Team
Development

Turnaround philosophy
Clear objectives and trade-offs
Define individual roles and responsibilities
Identify a single overall turnaround lead
G1

Definition

G2

Preliminary Planning

G3

Turnaround Execution

G1

Detail Planning

IPA Turnaround Process Phases

The IPA Institute - a Division of IPA, Inc.

Module 7 - 14

CONFIDENTIAL

PRACTICE: Integrated Scope of Work

Capital Project Process

FEL I

G2

FEL II

G3

FEL III

Detailed
Engineering

Pre-TAR
Construction

Identify equipment/maintenance worklist

TFEL 0

Capital project scope

Pre- and post-TAR project scope identified

Integrated
Scope of
Work

Risk assessment of scope

Operational procedures
Engineering packages
G2

G1

Definition

Preliminary
Planning

Scope
Freeze

G3

Turnaround Execution

G1

Detail Planning

IPA Turnaround Process Phases

The IPA Institute - a Division of IPA, Inc.

Module 7 - 15

CONFIDENTIAL

PRACTICE: Integrated Scope of Work

IFC Drawings at Scope Freeze Are Critical
Capital Project Process

FEL I

G2

FEL II

G3

FEL III

Detailed
Engineering

Pre-TAR
Construction

TFEL 0

IFC Drawings
Issued-for-construction (IFC) drawings
represent capital projects turnaround
scope
Issued to turnaround team

Integrated
Scope of
Work

G2

G1

Definition

Preliminary
Planning

Scope
Freeze

G3

Turnaround Execution

G1

Detail Planning

IPA Turnaround Process Phases

The IPA Institute - a Division of IPA, Inc.

Module 7 - 16

CONFIDENTIAL

PRACTICE: Execution Plan

Capital Project Process

FEL I

G2

FEL II

G3

FEL III

Detailed
Engineering

Pre-TAR
Construction

TFEL 0

Single integrated schedule

Safety plans/job plans

Execution
Plan

Contracting strategy
Labor analysis
Density analysis
G2

G1

Definition

Preliminary
Planning

Scope
Freeze

G3

Turnaround Execution

G1

Detail Planning

IPA Turnaround Process Phases

The IPA Institute - a Division of IPA, Inc.

Module 7 - 17

CONFIDENTIAL

PRACTICE: Execution Control Planning

Capital Project Process

TFEL 0

FEL I

G2

FEL II

G3

FEL III

Detailed
Engineering

Pre-TAR
Construction

Cost and schedule control plans

Cost estimate development
Change order procedures
Contingency planning
Identify shared costs
Long-lead equipment control
Pre- and post-turnaround cost control

Execution
Control
Plan

G2

G1

Definition

Preliminary
Planning

Scope
Freeze

G3

Turnaround Execution

G1

Detail Planning

IPA Turnaround Process Phases

The IPA Institute - a Division of IPA, Inc.

Module 7 - 18

CONFIDENTIAL

The ICAT Index

Integration of Capital Projects And
Maintenance Turnarounds

Team
Development

Integrated
Scope of
Work

Execution
Plan

Execution
Control
Plan

ICAT

The IPA Institute - a Division of IPA, Inc.

Module 7 - 19

CONFIDENTIAL

Drivers of Turnaround Excellence

Course Roadmap
Measuring Success and
Failure
Overview of Turnaround Work
Process

Turnaround Integration

Importance of Clear
Objectives

Turnaround FEL

Turnaround Front-End Loading

Components
Team Effectiveness

Integration of Turnarounds
and Capital Projects

ICAT Index

Turnaround Integration
Phases

Contracting

Safety
The IPA Institute - a Division of IPA, Inc.

Module 7 - 20

CONFIDENTIAL

Three Integration Phases for Planning

Maintenance Turnaround and Capital Projects
Integration Phase I:
Turnaround
Definition
Form team
Establish objectives,
priorities & trade-offs

Integration Phase II:

Preliminary Planning
Integration Phase III:
Detailed Planning

Develop integrated
Worklist
Contracting
Safety plan
Control plan

Finalize detailed
integrated schedule
Complete risk mitigation

Develop preliminary cost &

schedule estimates

Revise procedures as
needed
Finalize cost & schedule
estimates

20

18

16

14

12

10

Hold final
reviews,
walkdown
jobs,
training

T/A

Number of Months Before Average Size T/A

The IPA Institute - a Division of IPA, Inc.

Module 7 - 21

CONFIDENTIAL

Identifying Turnaround-Capital Team Leader

Improves Outcomes of Turnarounds and Projects
Capital Projects

Turnaround

No Leader Identified

No Leader Identified

Capital-T/A Leader

Capital-T/A Leader

0%

10%

20%

0.9

30%

1.1

1.2

1.3

Schedule Effectiveness
Index

Cost Growth
(Actual/Estimated)

The IPA Institute - a Division of IPA, Inc.

1.0

Module 7 - 22

CONFIDENTIAL

Three Integration Phases for Planning

Maintenance Turnaround and Capital Projects
Integration Phase I:
Turnaround
Definition
Form team
Establish objectives,
priorities & trade-offs

Integration Phase II:

Preliminary Planning
Integration Phase III:
Detailed Planning

Develop integrated
Worklist
Contracting
Safety plan
Control plan

Finalize detailed
integrated schedule
Complete risk mitigation

Develop preliminary cost &

schedule estimates

Revise procedures as
needed
Finalize cost & schedule
estimates

20

18

16

14

12

10

Hold final
reviews,
walkdown
jobs,
training

T/A

Number of Months Before Average Size T/A

The IPA Institute - a Division of IPA, Inc.

Module 7 - 23

CONFIDENTIAL

Scope of Work Integration

Affects Costs of Capital Projects
Cost Effectiveness

Cost Growth

Did Not Review T/A

Scope

Non Integrated
Equipment List

Integrated Equipment
List

Reviewed T/a Scope

0.9

1.0

1.1

-10%

1.2

10%

20%

Cost Growth
(Actual/Estimated)

Cost Effectiveness Index

The IPA Institute - a Division of IPA, Inc.

0%

Module 7 - 24

CONFIDENTIAL

Three Integration Phases for Planning

Maintenance Turnaround and Capital Projects
Integration Phase I:
Turnaround
Definition
Form team
Establish objectives,
priorities & trade-offs

Integration Phase II:

Preliminary Planning
Integration Phase III:
Detailed Planning

Develop integrated
Worklist
Contracting
Safety plan
Control plan

Finalize detailed
integrated schedule
Complete risk mitigation

Develop preliminary cost &

schedule estimates

Revise procedures as
needed
Finalize cost & schedule
estimates

20

18

16

14

12

10

Hold final
reviews,
walkdown
jobs,
training

T/A

Number of Months Before Average Size T/A

The IPA Institute - a Division of IPA, Inc.

Module 7 - 25

CONFIDENTIAL

Having an Integrated Schedule

Improves Schedule Effectiveness
Turnaround

Capital Projects

Not Integrated

Not Integrated

Integrated

Integrated

0.9

1.0

1.1

1.2

0.9

Schedule Effectiveness
Index

The IPA Institute - a Division of IPA, Inc.

1.0

1.1

1.2

Schedule Effectiveness
Index

Module 7 - 26

CONFIDENTIAL

Summing It All Up
Integration affects all turnaround and project
outcomes
An integrated team is required to guide the
integration effort
Major areas requiring integration include:
Objectives, priorities, and trade-offs
Worklist and work scope

Schedule for execution tracking and control

Contracting strategy
Contingency planning
Safety, controls, and material planning

Timing of integration practices is as critical as the

quality
The IPA Institute - a Division of IPA, Inc.

Module 7 - 27

CONFIDENTIAL

What Can Business Leaders Do?

Clearly identify your priorities and communicate
these to both the capital project and the
maintenance turnaround team members
Do not delay in selecting which projects should be
installed
Support the team leader
Be willing to play a part in conflict resolution when
differences arise between turnaround and capital
project team members
Do not force unrealistic goals on the team, and then
be disappointed when they are missed - listen to the
experienced team members (without allowing
yourself to be bamboozled)

The IPA Institute - a Division of IPA, Inc.

Module 7 - 28

CONFIDENTIAL

The Foundation Blocks of Integration

Integration
Final Integrated
Integrated Plans,
+ Controls, and Schedule
Estimate
Scope Freeze + IFC Drawings

Managing
Structure

Scope
Schedule
+Identification
+ Development

Business Objectives to Turnaround

Goals The Contract

Business Brings Together:

TAR Process &
Long-Term Plans
The IPA Institute - a Division of IPA, Inc.

Project Process &

Portfolio Management
Module 7 - 29

CONFIDENTIAL

Felix Parodi
IPA Senior Project Analyst
Email: fparodi@ipaglobal.com
Phone: +1 703-726-5304
www.ipainstitute.com

The IPA Institute - a Division of IPA, Inc.

Module 7 - 30

CONFIDENTIAL

Successful Integration of
Turnarounds
and Capital Projects