Read about how IBM's Turnaround Optimization can help companies convert turnarounds into opportunities that will give them a competitive advantage.

1. IBM Global Business Services
IBM’s Turnaround Optimization
Maximize asset value through efficient turnaround management

2. 2 IBM’s Turnaround Optimization
Turnaround Optimization Turnarounds: An optimization hot spot
Turnarounds put a grinding halt on Chemical and Chemical and Petroleum companies regularly have to shut
down the production on plants and facilities due to preventive
Petroleum production and profitability. Downtime
and corrective maintenance activities, modifications of the
is no vacation for those companies looking to win in plants, and tie-in of new equipment. These may be planned or
a volatile market. With a new approach from IBM, unplanned, be driven by inspection or certification
companies can stop spinning their wheels with requirements, be vendor driven overhauls, or capital projects to
Turnarounds, and instead make them opportunities improve performance. In all cases, turnarounds represent a
for competitive advantage and effectiveness. departure from the business as usual.
When Chemical and Petroleum companies need to shut down In addition to being costly in terms of direct cash expense,
valuable assets or plants for modifications or maintenance (the opportunity cost (lost production) and new investment, they
facility turnaround) they experience perplexing disruptions. also represent an activity that is seldom optimized in terms of
Turnarounds cost money to execute, they lose money while the process improvement and operational excellence. Only needed
asset is down, and their complex execution doesn’t always on a periodic timescale, the turnaround is a fundamentally
create optimal improvements in future operations. What’s different business activity from daily oil or chemical
worse, they represent a departure from “business as usual”, production, and requires different skills, different processes,
often making them a challenging, ad-hoc chore instead of a and different tools to get the job done right.
purposeful, value-driven activity.
Most Chemical and Petroleum companies rely on their
Imagine flipping this reality on its head, where turnarounds are seasoned experts to make critical turnaround planning and
planned and executed optimally, where their frequency is execution decisions. Unfortunately, much of this competency
optimized, where down time is shortened, and more may be locked away in the intuition and gut feelings of an
opportunities for operational improvements are implemented. aging workforce. Turnaround activities may differ from
IBM has a vision and solution for Turnaround Optimization that location to location, and the efficacy of the turnaround activity
gives Chemical and Petroleum decision-makers new analyses is more often the product of local know-how and heroism than
and knowledge to make better turnaround decisions and one of formal best practice and technological knowledge.
execute them more effectively. The result is an improved
bottom-line: lower cost turnarounds; more production revenue Making the turnaround more complex is the fact that multiple
realized; and improved asset value and operations going groups of individual contractors may be assigned to each work
forward. package. Offshore turnaround planning is typically constrained
by weather conditions, the availability of skilled personnel,
transport of spares, personnel and materials, offshore berths,
offshore storage capacity, and available workspace. The typical
turnaround must be planned at least 18 or more months ahead.
The decision-making process becomes too large and too
complex in today’s world for even the most tenured
practitioner working on intuition.

3. IBM Global Business Services 3
Our Vision for Turnaround Optimization Knowledge and intelligence driven decisions: New fact-
Chemical and Petroleum companies would benefit if based decision-making generated from site and planning data
turnarounds were: replaces or augments traditional “intuition” based decision-
making. Knowledge is analytical and technology based,
• Less frequent or avoided - the time between them was longer, making it consistent and available across decision-makers,
and occurrence of unplanned turnarounds was lessened. workforces, and sites.
• Faster to complete - the downtime was minimized.
• Less Costly - the resources and investments needed to execute Sophisticated longitudinal viewpoints: Turnarounds must
the work were optimized, with less overrun exposure. be planned over different timescales: for the immediate
(i.e., execution), the short-term (i.e., planning), and long-range
• Better coordinated - critical maintenance and other beneficial
(e.g., five to 20 years) to provide an optimized turnaround and
tasks were conducted during both planned and unplanned
shutdown strategy. Longer timeframes can create improved
turnarounds.
longer range equipment management planning and production
• Less risky - few overruns, fewer Health, Safety &
forecasting strategies. This also makes it possible to evaluate
Environment (HSE) risks, better asset security.
the effect modification and Capital Expenditure (CAPEX )
• More opportunistic – improvement and maintenance projects have on future turnarounds.
opportunities were exploited when turnarounds/shutdowns
were forced because of dependencies. Risk awareness and proactive risk planning: Decision-
makers must be aware and ready to deal with risk, such as
Achieving these goals requires a new approach and vision for understanding which assets require maintenance shutdowns,
Turnaround Optimization. This new mode has several operating calculating production loss associated with both planned
characteristics that are different from most typical current state turnarounds and unplanned shutdowns, and understanding
operations, including: HSE and operational risks.
A holistic, enterprise view and visibility: Decision-makers Optimized preparation and execution: When executing
can adopt new views and greater visibility into facilities that turnarounds, teams have information about specific equipment
may be all linked together in a complex production systems, their current condition, associated inspection
infrastructure that comprises every stage from wells to market, programs, mean-time to repair and risk profiles, and the
including views of multiple sites, offshore and onshore duration and cost of the repairs required if a failure occurs.
locations, interdependencies, and is based on your specific asset Thus they are able to use sophisticated optimization
environment. techniques to manage schedules, assets, resources, and
milestones to execute the project optimally. Risks and
performance driven by interdependencies is planned and
managed.

4. 4 IBM’s Turnaround Optimization
IBM Turnaround Optimization Solution: At the heart of this solution is a new toolset that enables
Making Turnaround Optimization a decision-making, risk analysis, and execution planning with an
integrated view of the turnaround. More than just technology,
Reality
this solution requires new competencies, processes, and
Turnaround Optimization is ambitious and requires new
information strategies that change many of the fundamental
procedures, tools and training to enable the decision-makers
activities in planning and executing turnarounds.
and the support chain. IBM has developed a solution that
combines custom analyses, best practices, and powerful
The IBM Turnaround (commonly known as “TAR”)
technology assets that enable Chemical and Petroleum
Optimization Solution is comprised of three core components:
companies to transform their turnaround operations. Most
aspects of the field are well established and include practices
• TAR Performance Monitors
such as linear programming, integer programming and
nonlinear programming, derivative, and derivative free • TAR Performance Analyzer
methods. Our solution extends these concepts, by leveraging • TAR Optimizer
the detailed information made available to use latest
optimization techniques, thereby enabling the further
reduction of production losses.
TAR Optimization Solution
Decision-making intelligence and processes
TAR Performance Monitor TAR Performance Analyzer TAR Optimizer
View teams, assets,and Manage TAR frequency,
Understand and manage
key metrics to make duration, and effects on
asset interdependencies
critical TAR decisions production targets
TAR Planning and Execution

5. IBM Global Business Services 5
The TAR Performance Monitor TAR Preparedness Monitor – measures the team’s planning
Insight into Turnaround Preparedness and Performance preparedness for the turnaround and is time-linked to key
For More Effective Turnarounds milestones leading up to the point of turnaround execution.
The TAR Performance Monitor makes it possible for The milestones cover areas such as work order generation
Chemical and Petroleum companies to standardize the way and approval, long lead purchase orders, job safety plan
they set up, monitor, and benchmark turnarounds across their development, and other key factors.
facilities, to discover and evaluate the effects of possible
performance problems prior to turnaround execution, and to Standard Job Package Descriptor – creates standard packages
compare the performance of their turnaround projects. It of work that are carried out in turnarounds (e.g., vessel
enables companies to monitor the progress of ongoing inspection, turbine overhaul, pipe work inspection) and includes
turnarounds, assess shutdown preparedness, identify possible risk profile data and resource requirements for the work.
delays, and evaluate the consequences of delays on production
efficiency. TAR Key Performance Indicator (KPI) Dashboard –
measures the turnaround execution performance through a
The Performance Monitor measures and plans for turnaround series of specific KPIs aligned to the corporation’s KPI tree.
preparedness. Turnaround preparedness is evaluated against a This module measures loss factors (or availability targets),
set of predefined measurements, such as the number of work turnaround duration, scope growth, budget, and HSE
orders finished at the various milestones; the time it should performance.
take to shut the facility down; and the production lost during
the down period. The planned metrics are then benchmarked
against actuals during the execution phase. This ultimately
enables analysts to understand and estimate the effect of
preparedness as well as measure how to utilize unplanned
shutdowns opportunistically, such as performing maintenance
activities.
The TAR Performance Monitor consists of the following
modules:
TAR Management Assistant – captures data about the
turnaround description, project team and manning resources
required to execute the turnaround.
Facilities & Infrastructure Database – captures data about
the asset, its production profile, logistical information
associated with the asset and asset dependencies.

6. 6 IBM’s Turnaround Optimization
The TAR Performance Analyzer Standard Job Package Analyzer – isolates an equipment
Optimize Turnaround Frequency and Duration to system (such as a compressor) and analyses the inspection and
Drive Production repair program that is defined in the maintenance management
The TAR Performance Analyzer helps Chemical and 5 or 10 year plan. The analyzer then defines the most optimum
Petroleum companies plan turnaround frequency and duration timing of turnaround required to carry out inspection or repair
for a specific facility that gives the lowest production loss, and activity. This module is designed to optimize the number of
set realistic production efficiency (i.e., regularity) targets for turnarounds required over a five to ten year period with the
their facilities. For example, a facility might have a production aim of optimizing the number of turnarounds required thereby
efficiency of 91%, but evaluation with the TAR Performance increasing plant availability over time and reducing the
Analyzer indicates that a more a realistic target is 92%. The probability of unplanned plant failures or shutdowns.
Optimizer might indicate changes that would make a 94%
target possible. The TAR Optimizer
Understand and Manage Dependencies Across the
The TAR Performance Analyzer also helps companies identify Asset Portfolio
the key performance drivers within the system, such as which The TAR Optimizer helps synchronize turnaround plans
piece of equipment should be replaced, bolstered, or monitored across assets or fields. This helps Chemical and Petroleum
more efficiently for unplanned shutdowns to be avoided. The companies avoid situations where one facility that has recently
TAR Performance Analyzer along with the TAR Optimizer been shut down for a turnaround is shut down again shortly
offers tools for real-time evaluation of various turnaround after due to interconnects with another facility. This is
scenarios and supports selection of the scenario that has the particularly important to companies with dependencies
overall lowest production loss, enabling the decision-maker to between their fields, such as dependencies due to third party
use more facts and less “gut feeling” in the process. processing, power delivery services, gas processing,
transportation, or blending services. The TAR Optimizer
The modules include: contains tools for developing test/evaluation scenarios and
simulations to help determine the optimal path forward. It
Risk Profile Database – collects information about specific then facilitates the definition of work/job packages that support
equipment systems, their current condition, their associated optimal execution of the turnaround. It is driven by trying to
inspection programs and program status, mean-time to repair, minimize the number of days of lost production due to
and failure profiles. The data used in the database is used to turnaround/shutdowns.
feed directly into the risk analyzer module.
The overall solution has been designed using an integration
framework that allows automated collection of key data from
Enterprise Resource Planning (ERP), maintenance, and
planning systems and to complement existing functionality
found in typical ERP packages. The solution may also be
extended with asset management functionality and connectivity
using Enterprise Asset Management tools such as IBM’s
Maximo.

7. IBM Global Business Services 7
About IBM: The right partner for a • Establishing new, flexible and iterative approaches that only
changing world IBM can offer through our unique combination of skills,
IBM’s unparalleled ability to collaborate with you in bringing experience and capabilities.
together deep business insight, advanced research, and • Leveraging the proven frameworks, approaches, software,
innovative technology will give your company a distinct hardware, infrastructure, and resources we have successfully
advantage in today’s increasingly connected world. deployed with our clients in over 15 industries.
• Applying IBM’s global expertise and local capabilities through
Every day, the world becomes exponentially more our unique global delivery network combined with our teams
interconnected, digitized and data-aware. The world is getting in over 170 countries.
smarter, triggering unprecedented change. Yesterday’s models • Providing our clients with an integrated approach to business
no longer equip organizations to capitalize on this change. design and execution, turning strategies into actions.
At IBM we partner with you to deliver real business value by: These strengths applied to business issues and opportunities
give our clients not only the ability to anticipate change, but
• Enriching business consulting with advanced research, also take advantage of new possibilities.
analytics and technology.
• Teaming with you on all phases of engagement to plan, build,
invent, and implement business solutions.

8. © Copyright IBM Corporation 2010
IBM Global Services
Route 100
Somers, NY 10589
U.S.A.
Produced in the United States of America
January 2010
All Rights Reserved
IBM, the IBM logo and ibm.com are trademarks or registered trademarks
of International Business Machines Corporation in the United States, other
countries, or both. If these and other IBM trademarked terms are marked on
their first occurrence in this information with a trademark symbol (® or ™),
these symbols indicate U.S. registered or common law trademarks owned by
IBM at the time this information was published. Such trademarks may also
be registered or common law trademarks in other countries. A current list of
IBM trademarks is available on the Web at “Copyright and trademark
information” at ibm.com/legal/copytrade.shtml Other company, product
and service names may be trademarks or service marks of others.
References in this publication to IBM products and services do not
imply that IBM intends to make them available in all countries in which
IBM operates.
Please Recycle
GBB03058-USEN-01