ered Oe Strategy and Planning Peet er) | Organization and People omen ] 10 19About the IAM The Institute of Asset Management (the 1AM) is a not-for-profit, professional body. We are owned and controlled by our members and committed to remaining independent from commercial and trade associations. We exist to advance the discipline of asset management, not only for people and organizations involved in the acquisition, operation and care of physical assets but also for the benefit of the general public. Our priorities are to promote the generation and application of knowledge, training and good practice and to help individuals become demonstrably competent Copyright All copyright and other intellectual property rights arising in any information contained within this document are, unless otherwise stated, owned by The Institute of Asset Management Ltd or other companies in The Institute of Asset Management Ltd group of companies. No part of this publication may be reproduced in any material form (including photocopying and restoring in any ‘medium or electronic means and whether or not transiently of incidentally) without the written permission of The Institute of Asset Management Ltd Shutdown and Outages Strategy and Management Disclaimer The IAM publishes this document for the benefit of its members and the public. This document is for guidance and information only. The IAM and ‘their agents, servants or contractors do not accept any liability for any losses arising under or in connection with this information. This limit on liability applies to all and any claims in contract, tort {including negligence), misrepresentation (excluding fraudulent misrepresentation), breach of statutory duty or otherwise. This limit on liability does not exclude or restrict lability where prohibited by the law nor does it supersede the express terms of any related agreements. Acknowledgments This Subject Specific Guideline (SSG) has been produced by the Institute of Asset Management (IAM) through the significant efforts of many individuals and organizations. The Institute would like to ‘thank the following in particular for their contributions. Development Team Mick Saltzer - Saltzer Consulting (UK) Dougie Park — Sellafield (UK) Stuart King ~ Sellafield (UK) Alex Thomson ~ TWPL (UK) Imad Khan — AMCL (Canada) Keith Rimmer ~ IAM (UK) Derek Ramlal - Manitoba Hydro (Canada) ‘Anthony Kauenhowen - Manitoba Hydro (Canada) tal Burry - Newfoundland & Labrador Hydro (Canada) {© Copyright he rte of Ava anagere 2022, right eensShutdown and Outages Strategy and Management Version 1 July 2022 The Scope of Asset Management i i : liver elabilty Engineering eer ge Management incident Response en Se) Cor at ore) cle Value Real (© Copyigh The hte of Ase Managemen 2022. Argh een, ulYN pus) om i pas) Cc e) wy Shutdown & Outages Strategy & Management Version 1 January 2022 Acknowledgements 1 INTRODUCTION 1 12 13 14 Purpose of the SSGs The SSG's in Context SSGs and the Issue of Complexity Versus Maturity Further Reading 2 APPLICABILITY AND SCOPE OF THIS SSG 24 22 23 24 Purpose of this SSG ISO 55001 and the AM Landscape The Asset Management Life Cycle Navigating and Using this Document 3. WHAT IS A SHUTDOWN/OUTAGE a4 32 33 High Level Definition of the SSG Topic Area Terminology Shutdown/Outage Strategy, Optimization and Management 3.3.1 Shutdown and Outage Strategy and Optimization 3.3.2 Shutdown/Outage Management 4 CONCEPTS, PRINCIPLES AND KEY FACTORS 4a 42 43 4a 4s Concepts Principles Key Factors for a Shutdown/Outage Shutdown/Outage Classification Overview of Shutdown/Outage Phases 5. SETTING THE STRATEGY 5a 5.2 53 54 5S 56 87 58 Why Have a ShutdewrvOutage Strategy? Developing a Shutdown/Outage Strategy Alignment with Strategic Asset Management Plan Governance Risk Management Quality Asset Strategy Shutdown/Outage Optimization 5.8.1 Select Shutdown Critical Tasks 5.8.2 Shutdown Interval Optimization 5.8.3 Residual Tasks 5.8.4 Unplanned Shutdowns 6 INITIATION PHASE 62 63 6a Safety, Health and Environment (SHE) 6.2.1 Safety and Health Management 6.2.2 Environmental Management Performance Management Cost Management 29 30 30 ” 32 32 1 Copyright he sie of Ase Managere 2022, ght een,Shutdown & Outages Strategy & Management Version 1 January 2022 7 PLANNING AND PREPARATION PHASE 34 7.2 Work Preparation 37 7.3 Logisties and Infrastructure 37 7.4 Planning and Scheduling 37 7.5 Capital Work Integration 38 7.6 Supply Chain 39 7.7 Readiness and Review 39 8 DELIVERY PHASE (EXECUTION) a 8.1 Work Management and Control an 8.2 Types of Work an 8.2.1 Capital Engineering 43 8.2.2 Testing and Inspection 43 8.2.3 Maintenance 43a 8.3 Process Commissioning a3 8.4 Resource Management 43 8.5 Selection and Management of Contractors 44 86 Production/Operational Alignment 45 9 CLOSE-OUT PHASE 46 8.1. Managing Knowledge 46 10. NEW AND LEADING TECHNOLOGY aa 11. CASE STUDIES 50 11.1. Case Study 1 Shutdown Optimization Poly Carbonate Plant 50 4144.1 Inveducton 50 14.1.2 Shutdown Interval Optimization in Bergen op Zoom 50 11.1.3 Project Methodology 51 11.1.4 Analysis of incvidual Tasks 52 11.1.5 Optimizing Bundles of Tasks 53 11.16 Next Steps 55 11.17 Lessons Learned 55 11.2 Case Study 2 56 11.3 Case Study 2 56 (© Copyigh The hte of Ase Managemen 2022. Argh een, v1 Introduction This Subject Specific Guideline (SSG) is part of a suite of documents designed to expand and enrich the description of the asset management discipline as summarized in the |AM’s document “Asset Management - an anatomy’ (referred to throughout this document as ‘the Anatomy’ 1.1 Purpose of the SSGs This document provides guidance for good practice asset management. Ibis part of a suite of Subject Specific Guidelines that explains the 39 subject areas identified in “Asset Management — an anatomy’, also published by the Institute of Asset Management. These subject areas are also acknowledged by the Global Forum for Maintenance and Asset Management as the "Asset Management Landscape". PASSS and ISO 55001 set out requirements which describe what is to be done to be competent in asset management, however they don't offer advice on how it should be done. The $SGs are intended to develop the next level of detail for each subject in the Anatomy. They should therefore be read as guidance; they are not prescriptive, but rather intended to help organizations by providing a consolidated view of good practice, drawn from experienced practitioners across many sectors. The SSGs include simple as well as complex solutions, together with real examples from different industries to support the explanatory text because itis understood that industries and organizations differ in scale and sophistication. In addition, they ate at different stages, of asset management; some may be relatively mature while others are at the beginning of the journey. Accordingly, there is flexibility for each organizations to adopt their own ‘fit for purpose’ alternative practical approaches and solutions that are economic, viable, understandable and usable. The underlying requirement for continual improvement should drive progress. Shutdown and Outages Strategy and Management 1.2 The SSGs in Context The SSGs are a core element within the JAM Body of Knowledge and they have been peer reviewed and assessed by the IAM Expert Panel. They align fully with the IAM's values and beliefs that relate to both the development of excellence in the asset management discipline and provision of support to those who seek to achieve that level of excellence, 1.3 SSGs and the Issue of Complexity Versus Maturity It is important to understand and contrast these terms. Put simply: = The complexity of the business will drive the complexity of the solution required; and + The maturity of the organization will determine its ability to recognize and implement an appropriate solution. ‘Avery mature organization may choose a simple solution where a developing organization may think that a complex solution will solve al is problems. In truth, there is no universal best practice in asset management only good practice that is appropriate for the operating context of any particular organization. What is good practice for cone organization may not be good practice for another. For example, an organization that is responsible for managing 100 assets, all in the same location, could Use a spread sheet-based solution for an Asset Register and work management system, This s arguably good practice for that organization. However, for a utility business with thousands of distributed assets, this is Unlikely to represent a good practice solution. ‘When reading the SSGs, the reader should have a view of the complexity and maturity of the organizations and interpret the guidance that is offered in that context, 1.4 Further Reading The Anatomy provides a starting point for development and understanding of an asset management capability and the $SGs follow on to support that further. However, the opportunity doesn't end there; the IAM provides a range of expert and general opinion and knowledge which is easily accessed by members through the IAM website, {© Copyright he rte of Ava anagere 2022, right eensShutdown and Outages Strategy and Management Version 1 July 2022 2 Applicability and Scope of this SSG 2.1 Purpose of this SSG This $SG has been developed in recognition that the most significant cost across the life cycle of an asset occurs through the maintain and operate phase To ensure assets continue to maintain their function the optimum maintenance and inspection strategy must be selected, Often these strategies require the asset to be taken out of service or configured in such 1a way that service is impaired to execute maintenance, replace or upgrade. The requirements will be business and industry specific and driven by the relevant value drivers for the organization at the point in time, The default position would be to identify an asset management strategy that can be deployed that does not require a shutdownvoutage, however due to a range of possible constraints this may not be economically or technically feasible. Furthermore, failure of an asset or identification of a potential failure may result in a decision to force a shutdown or shutdown/outage earlier than originally intended or an addtional shutdownvoutage to implement corrective solution, Thus, an organization must ensure processes for identification, planning, scheduling, delivery and control of work related to shutdowns or shutdown/outages are in place and identify risks and any contingency plans needed. These include policies and processes for the implementation of the shutdown and outage strategy lo ensure the effective management of shutdowns and outages, and to drive a culture of continuous improvement to optimize performance The complexity of a shutdown/outage will be increased when maintenance and inspection activities are combined with capital engineering activities for new/upgraded assets. This will require greater attention to coordination of resources and integration of overall preparation, planning, scheduling and execution activities This $SG has been created to provide guidance to organizations which require shutdowns/outages. This document covers both strategic and tactical elements of shutdown management. Itis intended to mesh with other SSGs, e.g, Relabiliy Engineering,’ and is meant to provide guidance, but is not exhaustive. 2.2 ISO 55001 and the AM Landscape Applying the International standards for Asset ‘Management represents a good path for organizations interested in improving their asset management practices following a recognized and structured framework. 180 55000 describes the four fundamentals, and these are considered in writing this SSG. Value: Assets exist to provide value to the organization and its stakeholders Alignment: Asset management translates the organizational objectives into technical and financial decisions, plans and activities Leadership: Leadership and workplace culture are determinants of realization of value Assurance: Asset management gives assurance that assets will fulfl their required purpose. 150 55001 is the formal standard for the development, implementation and maintenance of an Asset Management System, setting out the minimal requirements an organization would need to meet to gain accreditation to that standard. For any organization or individual wanting to master the discipline, knowledge of ISO 55001 is not the whole picture, As well as the standard and management sys- tem aspects, they need to understand the full breadth and depth of the component parts that make up the landscape of asset management and this is supported through the $SGs. The authors have also considered in this SSG the key components of 50 55001 which are kadership, stakeholder management, planning and performance evaluation, and establishing the required support systems Standards could, therefore, be regarded as ‘what’ is required for an Asset Management System. These SSGs supports the ‘how’ to deliver the component. parts and in its development has tried to cover the range of industry sectors currently associated with the IAM and recognize that differences in levels of {© Copyright The tt of Ava Managemen 2022, Argh ene,maturity and operating contexts exist within those sectors and the organizations within them. To provide additional context these $SGs provide case study examples from different sectors to demonstrate the key points of guidance. However, any document generic enough to be applied to multiple industry sectors must be at a relatively high level of detail Those familiar with ISO 55001:2014 will be aware that this standard itemizes the 71 'Shall’ Statements and 24 requirements for organizations seeking to demonstrate good Aasset management practices. These requirements are a clear foundation for implementing and operating an Asset Management system. They are, however, distinct from the capabilities such organizations need. The Anatomy has been built around six subject groups and 39, subjects (see figure 1) and provide a stable platform on which the IAM can develop Subject Specific Guidance documents. These six subject groups and 39 subjects are also aligned with The Asset Management Landscape 4 (published by The Global Forum on Maintenance and. Asset Management) to facilitate the exchange and res ea eure cars Decision-Making a ent Decson: Making een Pe eats, oer 6 & Maintenance Seren pecmeue MMs Shutdown and Outages Strategy and Management oan ee mation S sset Information Standard alignment of maintenance and asset management knowledge and practices. This SSG specifically pertains to shutdown and outage strategy and management which sit, respectively within the asset management decision-making (Group 2) and life cycle delivery activities (Group3) areas of the asset management subject groups. Itis part of a full series of SSGs covering all 39 subjects These are not designed as textbooks or course material bul as reference documents for professionals working in or requiring guidance in this field They provide guidance in reviewing current organizational policies, practices and work management processes to drive consistency. We would expect everybody involved in asset management to have a working knowledge of the 39 subjects, but the degree to which they might need deep or specialist knowledge will depend on the job or task they perform ra Cree ou ane Etesisation 26, Procurement & Sup aa en et Managemen ee oer ee oe ata urna ore ee 7 Cece psd eee Peat Le eer) Punt et Costing & Valuation rea Figure 1: Figure 1: Asset Management - an anatomy - six subject groups, 39 subjects, {© Copyright he rte of Ava anagere 2022, right eensShutdown and Outages Strategy and Management 2.3 The Asset Management Life Cycle The shutdown and outage methodology spans the entire life cycle of an asset and the key phases are illustrated in Figure 2. The red curve illustrating how costs and risks are incurred, the green curve representing asset health and benefits derived from asset utilization Shutdowns and outages are likely to be required in each of the phases of the asset's life cycle + Creation and acquisition including identification of need — business developing shutdown / outage strategy and objectives, and outage for new asset installation or upgrade + Utlize & maintain — upgrade/update/reconfigure/ manage failure + Dispose and or replace ~ renew/recycle/replace The approach to shutdowns and outages will vary across industries but fundamentally the core stages willbe similar. The group developing this SSG considers life cycle as a central component of this document, and this document is based on the assumption that most people who read this SSG will be people who have existing assets, or are in the process of creating or acquiring assets, and are looking at better ways to manage the shutdown and outage associated with them, For this reason, this Creation / Aquisition Aquisition’ f CAPEX utilz Business impact Design Commissioning Normat Purchaser Operation & Construction Maintenance Version 1 July 2022 Utilization and Maintenance Asset health and tion benefits, Nn OPEX, Risks & Minor Changes CAPEX 8G focuses on the “utilization and maintenance” phase of the asset life cycle. However, the decisions made at the creationvacquisition phase of the life cycle will influence the need for and frequency of shutdowns/outages. Likewise, the decisions on asset replacement and/or renewal will influence shutdown work scopes and timing. Shutdowns/outages typically are costly to execute and require large numbers of skilled (and often scarce) resources working within a tight timeframe to complete the work scope. A shutdown Joutage strategy will focus on establishing the strategic approaches to managing key elements and determine the optimal shutdown work scope and frequency. This will lead on to developing processes for managing the work activities effectively, efficiently and safely within the available shutdown/ outage window and require considerable planning and enabling works Dispose / Renew Degradation, obsolescence, demand changes Time New inspection, maintenance & refurbshment needs Renewal Upgrades, decommissioning Figure 2: Life cycle of an asset {© Copyright The tt of Ava Managemen 2022, Argh ene,Purpose of the SSG and how it relates to ISO 55000/55001 and Asset Management Landscape Definitions, scope and overview of management and strategy for shutdowns and outages High level summaty of the important considerations, concepts, principles, classification of shutdown/outage and optimization with strategy and management and phases. Overview of key phases considered as a cycle. Highlights practices and tools to manage through the phases, this is not exhaustive, and competencies may apply across phases. Emphasizes the importance of managing and measuring performance and driving a culture of continuous improvement and indicative KPI's, Some insights into latest approaches to management of, outages and digital technologies Industry examples where management and strategic thinking have delivered improved performance