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Planned shutdowns

Planned shutdowns represent both a high direct cost, and a large opportunity cost due to the associated lost production.

If poorly executed they can:

• be a significant source of injuries
• reduce operational stability and campaign length.

PIP’s work with mining and industrial clients shows that a rigorous focus on the factors that drive shutdown performance can lead to big reductions in costs and downtime.

Most of the work required to improve shut performance can be implemented quickly, and then perfected over a number of shuts. PIP’s approach is to focus on four key levers:

1. Reducing the frequency of planned shutdowns
   The greatest potential benefits are often in reducing the frequency of planned shutdowns. PIP has four approaches for reducing shut frequencies and these, combined with PIP’s execution rigor and experience often lead to reduced frequencies in the range of 30-40 percent.
   
   

   
   
   

2. Reducing the duration of the critical path for these shutdowns
   The second key lever for improving performance is reducing the duration of the critical path for planned shutdowns. Here we apply PIP’s CPR methodology (based on Lean principles) and this work often results in reductions in the critical path by some 25-35 percent.
   
   

   
   
   

3. Improving shut ‘wiring’
   It is also important to work on the ‘wiring’ of the shuts on site - the systems, processes, accountabilities, skills procedures, habits, norms and behaviours that determine how the shuts run. Here we work on all these elements with your people to leave behind an organization that is hard wired to deliver well planned, disciplined, actively managed shuts - that come in safely, on time, on budget. This work includes work on (amongst other things):
   - the shut planning and processes
   - accountabilities, roles and KPIS
   - reporting and reviews
   - escalation processes and simple decision making tools
   - collection and collation of data
   
   Establishing these processes ensures that shutdown performance can be sustained and that improvements continue to be driven over time.
   
   
   

   
   
   

4. Reducing the direct costs of planned shutdowns.
   In PIP’s experience, there are two primary methods for reducing direct shutdown cost.
   
   a) Reducing the number and frequency of equipment repairs required in the shut (i.e. eliminating unnecessary shut activities, as discussed above)
   
   b) Reducing expenditure on external services, including labor and equipment. This involves:
   • Reducing the contractor hours worked in the shutdown through critical path reduction, supervisor training in active supervision and contractor incentives. These are supported by disciplined contractor management processes.
   • Reducing and managing contractor unit prices through means such as supplier consolidation and detailed analysis of supplier costs and margins. We also put considerable focus on the economics and incentives of the contract overall to ensure the contractor’s interests are aligned with the client’s total economics.

Through a close focus on these four critical levers, PIP helps its clients achieve significant improvements in their shutdown performance – substantially reducing downtime and the overall cost of shuts, and improving safety and plant efficiency. For further information, please contact us at info@pipint.com.

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