Turnaround Scope Management Workshop - Doha, Qatar 2011

Below is the ouline for the "Turnaround Scope Management Workshop"
I had the fortune to facilitate this past November in Doha, Qatar.

Thank you all for your attendance, support and passion.

Topic: Turnaround Scope Control

Duration: 4 hrs

Audience: Gulf Energy representatives and Facility Turnaround colleagues.

General Purpose: To demonstrate the benefits of establishing a robust Turnaround scope management methodology reinforced with processes, tools, guidelines and metrics to realize the value of effective scope control.

Thesis:  In order to achieve reliable performance objectives, focus on Turnaround Management Methodologies is essential. Within the Turnaround Management framework sits Scope Management which is a significant driver influencing performance in all key areas of any Turnaround. The single best payoff in terms of success comes from having a defined scope early. Then establishing a clearly defined scope baseline is the next essential step to realizing and controlling Turnaround performance metrics and achieving success. Once the baseline has been reconciled with the Schedule and Budget Baselines all added work must be follow the integrated change order process. By endorsing proactive Scope Management strategies risks that impact Safety, Budget, Schedule and Quality performance can be qualified and quantified to enable objective resolution to priority management.

Expected Outcome:

1.     To enable the activist in you to be an agent of change, challenging at least one component of your current Scope Management Plan

2.     To take a different look at the value of being prepared and how it influences risk

3.     Evaluate the traditional constraints of Scope, Schedule and Budget and the relationships with Quality, Expectations and Stakeholder Alignment

Structure

Purpose: To discuss and develop key components of Scope Management often overlooked when planning and establishing the Turnaround framework.  Also introduce real life experiences that impact scope variances including added work, found work and scope creep. Then propose methods and tools to manage and control scope to enable a successful outcome to each Turnaround event.

Scope Definition, Planning and Verification

1.      Process Development

1.1.   Establish Late Work process, protocol and guidelines

1.1.1.      Reason for the process

1.1.1.1.      Coding Late Work in CMMS

1.1.1.2.      Tracking of Late Work

1.1.2.      Define communication process for Late Work

1.1.2.1.      Who can initiate?

1.1.2.2.      Approval process (Qualify)

1.1.2.3.      Approval / denial communication process

1.1.2.4.      Distribution lists

2.      Creation of the Turnaround Charter

2.1.   What is the purpose?

2.2.   What is included?

2.3.   How does this document relate to Scope Management?

2.4.   Creation of the Work Breakdown Structure

2.5.   Establish ROM budget (by asset history in CMMS)

2.6.   Establish Organizational Breakdown Structure – Planning Team

2.7.   Develop Responsibility and Communication Management Plan

3.      Planning Stage: Scope Development and decomposition

3.1.   Defining Scope

3.1.1.      Engineering, Inspection and reliability scope – drivers (create WO’s)

3.1.2.      Gather Corrective and Preventative Maintenance Work Orders (CMMS)

3.1.3.      Code Work Orders in CMMS (TA)

3.1.4.      Assign Work Orders to functional discipline owner

3.1.5.      Prioritize Work Orders (CMMS)

3.1.6.      Work Order Validation process - Work Order Review Meetings (WORM)

3.1.7.      Establish scope freeze date and communicate to all stakeholders

3.1.8.      Develop detailed Work Plans (bottom up estimate)

3.1.9.      Complete Planning Readiness Review

3.1.10.  Schedule Baseline

Body:

Group Activity

Realizing the effects of Planning – Hands on Activity, prizes and discussion

Scope Management

4.      Found Work Process

4.1.   Approval process (Qualify)

4.2.   Creating a plan and input into CMMS

4.3.   Coding Found Work in CMMS

4.4.   Tracking Found Work

4.5.   Develop budget

4.5.1.      Add an addendum to Budget

4.6.   Adding Activities to Turnaround Schedule (What if?)

4.7.   Rebaseline schedule

4.8.   Consider cutting Priority 2 scope

4.9.   Update Baselines

5.      Scope Creep

5.1.   Who identifies Scope creep?

5.2.   How is it recognized?

5.3.   What are the key methods to discover?

5.4.   How can it be managed?

6.      Productivity Creep

6.1.   Aligning all stakeholders

6.2.   Identifying and managing productivity creep

6.3.   Context - hours worked, conditions, culture

6.4.   Setting realistic expectations

Closing

Turnaround Manager will have a scope and cost baseline set including known scope, anticipated repairs and contingency. The key to successful scope and cost control in a Turnaround is execution control and scope management.

At the end of a turnaround, the final scope of the execution usually encompasses several categories of work

6.5.   Known scope

6.6.   Anticipated repairs

6.7.   Unanticipated repairs

6.8.   Unauthorized work

6.9.   Cancelled work

Turnaround Scope Management Presentation - Doha, Qatar 2011

Dear colleagues,

This past November I had the opportunity to visit Doha Qatar and experience the country from three perspectives.  

From a cultural aspect I found the visit to be both profound and enlightening. Then to connect with subject matter experts through professional exchange of ideas and learning's was a part of a maturity process that will last for some time. Finally, to experience the physical environmental landscape was inspiring.

For this I am grateful.

Below is the outline of the "Turnaround Scope Management Presentation" I facilitated on Day 2 of the conference.

Topic: Turnaround Scope Control

Duration: 1 hr

Audience: Gulf Energy representatives and Facility Turnaround colleagues

General Purpose: To demonstrate the benefits of establishing a robust Turnaround scope management methodology reinforced with processes, tools, guidelines and metrics to realize the value of effective scope control.

Thesis:  With increased focus on long term stable operational reliability the demand for effect management of Turnaround events is essential when considering business repercussions. Therefore opportunities to limit downtime must be exploited. The business impact constitutes increased considerations regarding how Turnaround scope is established, planned, scheduled, monitored and managed.

Expected Outcome:

1.     To enable the activist in you to be an agent of change, challenging at least one component of your current Scope Management Plan

2.     To take a different look at the value of being prepared and how it influences risk

3.     Evaluate the traditional constraints of Scope, Schedule and Budget and the relationships with Quality, Expectations and Stakeholder Alignment

Structure

Purpose: To discuss and develop key components of Scope Management often overlooked when planning and establishing the Turnaround framework.  Also introduce real life experiences that impact scope variances including added work, found work and scope creep. Then propose methods and tools to manage and control scope to enable a successful outcome to each Turnaround event.

Introduction: Short introduction and review of my level of experience and roles within the Turnaround environment

Ø       How many of you have been involved in a Turnaround in the past 5 yrs that has been completed on time and on budget?

Ø       How many of you truly believe that Scope Management is a critical function for realizing Turnaround success?

How to deal with work after the Worklist cut-off date: When it comes to managing and dealing with proposed work after the scope baseline has been defined a good preventative maintenance program must first be established. The program will identify criteria, validation and communication process of Late Work leading into the Planning phase. It is the development of this consistent methodology with standardized practices and tools for approving Late Work that enables performance objectives to be realized.

1.      Process Development

1.1.   Establish Late Work process, protocol and guidelines

1.1.1.      Determine process mandate

1.1.2.      Establish Communicate and Train Key Stakeholders

1.1.3.      Define communication process for Late Work

1.1.3.1.      Approval process (Qualify)

1.1.3.2.      Approval / denial communication process

1.1.3.3.      Distribution lists

1.1.4.      How does the CMMS fit in

1.1.4.1.      Coding

1.1.4.2.      Prioritization

1.1.4.3.      Planning (Cost Estimating)

1.1.4.4.      Tracking

1.1.4.5.      Escalation

2.      Stakeholder alignment:

2.1.    Develop the Late Work Process early – TA Charter

2.2.    Obtain buy-in - Sell the process to Steering, Core and Planning Teams

2.3.   Establish Scope freeze date -  Hard on the process and easy on the people

3.      Late Work Process

3.1.   Create Work Order

3.2.   Complete Late Work Form

3.3.   Code Work Orders in CMMS (NW)

3.4.   Assign Work Orders to functional discipline owner

3.5.   Develop detailed Work Plan with resource and cost estimate

3.6.   Validating as TA Scope - Work Order Review Meetings (WORM)

3.7.   Schedule Impact review

3.8.   Prioritize Work Order (CMMS)

3.8.1.      Priority 1 or 2 (RAM)

Development of a Quick Action Work Package framework: Despite all the effort compiling data, risk base analysis tools Found Work are a serious factor that can compromise performance objectives.  Unlike projects events Turnaround are extremely constrained by time, resources, materials, equipment which severely increase the need for an efficient, standardized Found Work Process. A major component of this process is establishing a Quick Action Work Package and estimate protocol along with trained and dedicated subject matter experts to be available when the inevitable becomes reality. The Found Work Quick Action Plan then becomes a valuable tool to assist in the validation process and prioritize the effort required to ensure only true, essential work is approved for execution.

4.      Requirements to enable manageable results include:

4.1.   Stakeholder buy-in

4.2.   Who can initiate Found Work Process?

5.      Found Work Process

5.1.   Emphasis importance of having a clearly defined public process that defines protocol to authorize Found Work

5.2.   Initiates Found Work Planner to develop Work Plan, create Work Order, Plan, budget

5.3.   Initiates Schedule impact (What If?)

5.4.   Authorizes Schedule Re-baseline – if it is perceived the Found Work will impact critical path

6.      Role of the Turnaround Execution Planner

6.1.   Execute Found Work Plans

6.1.1.1.      Act as a subject matter expert gathering detailed requirements to develop Found Work Plan

6.1.1.2.      Complete CMMS requirements

6.2.   Perform HSE Audits

6.3.   Reconcile Schedule update performance

6.3.1.      Identify possible scope creep – uncontrolled changes to work package scope

6.3.2.      Identify possible productivity creep – worker productivity

Measures for accurate evaluation of resources, productivity and time: Measuring, reporting and evaluating scope, budget and schedule baselines is essential to assess current performance, anticipate potential risks and set plan to manage opportunities and threats. The key objective of measuring and reporting status is to enable communication keeping all stakeholders on track and focused on exceeding performance objectives.

7.      Schedule Status Reporting

7.1.   Steering Committee Dashboard Report

7.1.1.      S-Curve graph

7.1.2.      Milestone Variance Report

7.1.3.      Actual Start/ Finish Dates

7.1.4.      Schedule Forecast - anticipated Milestone completion dates

7.1.5.      Change Orders initiated with status and risk

7.1.6.      Major activities completed or in progress

7.1.7.      Schedule Variance Report – based on predetermined conditions and thresholds

8.      Evaluation of Resources

8.1.   Resource Leveling and schedule management tools

Productivity:

9.      Role of Productivity

9.1.   Owner and Contractor alignment

9.1.1.      Set rules of how ancillary downtime is managed such as visiting, cigarette breaks, extended coffee and lunch breaks etc…

9.2.   Quantifying productivity utilizing SPI and CPI

Balancing the unprecedented impacts the original scope: Having an established scope management framework to provide a foundation for progress measurement is an essential component of effect Turnaround control. There are many ways to measure progress however we cannot underestimate the value of the level of maturity within the Turnaround Management Team (Steering Committee).  As tools is simply only a method of extracting and promoting objective decision making.

10.   Balancing subject matter objectivity and the utilization of tools

10.1.                    Stakeholder Alignment

10.2.                    Turnaround Charter

10.3.                    Scope, Budget, Schedule Management Plans

10.4.                    Priority Management

Turnaround Scope Management - Simple?

In order to achieve reliable performance objectives, focus on Turnaround Management Methodologies is essential. Within the Turnaround Management framework sits Scope Management which is a significant driver influencing performance in all key areas of any Turnaround. The single best payoff in terms of success comes from having a defined scope early. Then establishing a clearly defined scope baseline is the next essential step to realizing and controlling Turnaround performance metrics and achieving success. Once the baseline has been reconciled with the Schedule and Budget Baselines all added work must be follow the integrated change order process. By endorsing proactive Scope Management strategies risks that impact Safety, Budget, Schedule and Quality performance can be qualified and quantified to enable objective resolution to priority management.

Although it may seem redundant, just like planning for execution it is important to establish a mandate and Planning methodology to ensure all objectives of the configuration are achieved. Treating the development and planning stages as a legitimate project will pay significant dividends throughout the Turnaround lifecycle.

Planning for Productivity

The number of hours per work day a resource (Craftsman) spends directly working on execution of the scheduled planned Turnaround, Project or Maintenance activities is directly tied to performance.
With this said, one of the most challenging areas that continues to allude our attention is establishing true understanding of realistic,transparent productivity factors that are endorsed by senior management, benchmarked and applied.
Too often resources burdened with the bias associated with unsatisfactory production and ability. Unfortunately the reality in most cases begins when the logistics associated with indirect activities such as permitting, safety, tools, equipment, materials, labor & non-labor support are coupled with insufficient instructions to execute scope are not satisfactorily expressed and quantified. The output of the isolation between planned work and indirect factors constitutes the Chaos Theory of Turnaround Management. This theory is often artfully expressed at the grassroots level as quoted "Chaos is Cash", which seems to be the underlying motto for many Turnarounds. Although statements such as the  "Chaos is Cash" motto may suggest and endorse the lack of confidence with craft disciplines skillset and work ethic the opposite is true. Without an established Turnaround Management Plan reinforced by best practices, tailored processes, policies and procedures and a mature team of subject matter experts, craft resources will continue to carry the responsibility of unsatisfactory productivity and competency.
By establishing a clearly defined and engineered plan coupled with a high level of accountability for schedule compliance the risks associated with  productivity can be defined, articulated and managed. Variance analysis tools can be effectively utilized exposing legitimate claims that validate real risks. The risks then can be documented to improve current and future dilemmas prior to becoming realized consequences.
In time the understanding of expectations, limitations and constraints will better define productivity and redefine the Turnaround environment.

Managing Variances

As the Turnaround environment evolves many Managers and Sponsors are becoming more aware of the value of Planning, Scheduling and especially project controls. This is leading to a renovation of the expectations of how Turnarounds are monitored, controlled and effectively managed. The Turnaround Manuals of the past are becoming much more explicit Turnaround Management Frameworks. New climate conditions produce a backdrop to better understand risks and opportunities in an dispassionate light.
This leads to the title and the main inspiration of this post.

Those whom are intricately involved in the process of reporting earned value and variances understand the variables and inherent stresses of delivering value added reports that support the plan. However, variances are often misunderstood management tools that have adopted an association with failure. It is somewhat peculiar that little or no variance is often an underlying expectation during Turnarounds. On the contrary, it should be expected and understood that variances are an inevitable certainty. Through this evolution of emotional intelligence and maturity, risks and opportunities can be forecasted, mitigated or dissolved early enough to minimize negative impacts. With environmental development of, truly understanding the performance measurement baseline is measured on the plan and that planning is the best evaluation of the effort and scope of work during the Planning Phase better management practices can be employed. Essentially, management isn't about being perfect and being right, it is more about recognizing and repairing what goes off track. This is where the management part of the Earn Value Methodology is often misunderstood and mismanaged.

Mitigation is therefore a significant factor in the managing the potential ill effects recognized from reporting. Most often variances are a result of insufficient planning, logistics, resource skillsets and training core team personnel and finally not adhering to the baseline schedule all key stakeholders authorized.

The resultant factors of poor planning coupled with insufficient management maturity create a recipe for disaster in the Turnaround environment undermining the effort of the professional people with passion for what they have attempted to accomplish.