Professional Documents
Culture Documents
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ExistingMaterialClassification
Figure 3: RasGas Criticality matrix
Generally, for materials to be in the most critical category,
three elements must exist:
1. Risk. The failure scenario must fall within a
consequence I or II of the RasGas risk matrix.
2. Mitigation. The spare part is required to mitigate
the scenario.
3. Availability. The spare part is not routine. This
means that the material is not readily available off
the shelf from a local supplier.
Materials which have the highest criticality rating must be
reviewed and stewarded closely. KPIs should track the
management performance of these parts highlighting any
specific issues (e.g. stock outs).
Other parameters that were taken into account to
determine minimum stock levels were:
Cost of the item
Mean Time Between Repair (MTBR)
Potential production loss associated with
equipment failure
Supplier delivery time (Existing Company data)
Required service factor/level
Potential environmental and safety impacts
Number of like equipments in the plants (Installed
Base)
Reparability
Previous consumption history
Companys Equipment Maintenance Strategy
Companys Sparing Philosophy
Parts commonality
Shelf life
9.1 Minimum Stock level Acti vities
Software was used to evaluate stock requirement for
capital, critical and normal operating spares inventory.
Contractor developed a list of Capital spares.
Capital spares are repairable items generally used
to replace parts of assets undergoing repair,
refurbishment, maintenance or servicing. These
spares are high cost, long lead time, low demand
but critical to plant operations. Examples include
gas turbine rotor, compressor bundle,
transformers, circuit breakers etc.
Contractor provided a list for all relevant material
items, with Maximum, Minimum (Reorder Level)
and Safety Stock Level. Wherever consumption
history was not available, MTBF approach was
used.
The first two steps are relatively easy. Once all
required information was obtained, the information
was entered into the Contractors in-house
software tool and recommendations were provided.
The difficulty and challenge was with the analysis
and evaluation of all this data. RasGas adopted the
approach that only items where there was a
significant difference between existing minimum
levels and proposed new minimum levels (either
positive or negative) for each SKU was reviewed.
A RasGas cross functional team was set up to
review the Contractors recommendations. The
team consisted of a Reliability Engineer, who
facilitated the meetings, a SME, a Supply
Department representative and a Maintenance
Representative. The review lists were broken down
8/9
by discipline to help with the review and to ensure
the correct personnel were involved in the decision
making process. The teams met as required to
review the proposed stocking levels and come up
with the final stock level recommendations.
9.2 Minimum Stock Level result
Currently at the time of writing this paper, RasGas has
received the Contractors review for Helium and Trains 1
through 5. This accounts for approximately 60% of the
SKUs to be reviewed.
The initial perception prior to the project was that RasGas
was under stocked in many different areas. However from
the initial results received this may well prove to be not
the case. Only 30% of the SKUs have had any
movement within the past four years. This means that
there may well be a high potential for eliminating obsolete
or dead stock. The review has identified as many as 30%
of SKUs should have increased minimum stock levels.
As many as 40% of SKUs on the other hand could have
minimum stock levels reduced. These results will be
reviewed by the cross functional teams over the next few
months.
9.3 Minimum Stock Level challenges
Without doubt, the major challenge faced in this phase of
the project was data quality. Many different variables
influence the ultimate and final stock level figures.
Obtaining key data or suspect critical data was both
time consuming and received mix results. Lead times and
price information were the two key fields that created
most issues.
Parameters with insufficient or erroneous data in SAP
were:
Lead Times (Both internal and external)
Price (typically no price or prices that were older
than five years)
Consumption patterns.
Incorrect Repairable data
MTBF data
Parts criticality
Another challenge was the resources required to review
the recommendations proposed by the software.
Engineers and technicians spend a significant amount of
time on a weekly basis reviewing the results.
10.0 Spare Parts Philosophy
The spare parts philosophy document was developed to
guide the decision making process of personnel across
the entire RasGas organization involved in the
management of spare parts. The purpose of this
document is to:
1. Describe the need for carrying inventory, the
criteria for what items should be held and not
held in inventory and list the responsibilities of
key personnel within the process.
2. Provide guidance on the quantity of stock to
carry and the methodology on how to calculate it.
3. Ensure sound inventory management principles
are followed to guarantee high service
level/inventory turnover rates, limited instances
of stock outs and limited surplus or excess stock.
4. Establish fundamental benchmarking guidelines
in order to make certain the right spare parts are
physically available when they are required to
guarantee safe operation, plant reliability and
smooth maintenance practices.
Furthermore, the document defines the different types of
inventory at RasGas and their subsequent treatment.
The objective of the Spare Parts philosophy document is
to drive quality stocking policies, processes and
execution to:
Prevent excessive purchase of materials
Improve timeliness of availability of materials
Ensure the right spares are available when
required
Reduce the level of obsolescence and write offs
To improved plant reliability and availability
through reduced downtime
11.0 Conclusion & Key Success Factors
If we look back on the three years of the Asset
Verification and Spare Parts Optimization project, many
lessons can be learned. Undoubtedly, the project has
been a valuable experience for the people involved. This
type of project is typically executed infrequently if at all
during the lifetime of a facility.
Phase 1 of the project (Trains 1-5) is nearing completion
and Phase 2 is on budget and on schedule to be
completed by mid 2011. The project has achieved an
excellent safety record without a single recordable injury
or Lost Time Incident.
Some of the key metrics achieved as a result of the
project were as follows:
150,000 on site hours injury and incident free
90,000 additional Equipments uploaded in
CMMS
55,000 additional MMs created
4,000 Unique BOMs developed
50,000 MMs had Stock levels changed (up and
down)
1,500,000 data points added or updated in
CMMS
The following are some of the key success factors that
took the project from an idea through to field
implementation:
Management support. It is vital to have a high-
level sponsor who, throughout the project,
emphasizes its importance to all relevant people.
At RasGas, the sponsors belief and persistence
helped the project surpass its difficult initial
stages. The Sponsor was the Operations
Manager, who reported directly to the Managing
Director
Appropriate resources. A dedicated core staff
and adequate facilities ensured consistent
progress throughout the project. It is
recommended to have succession plans in place
9/9
as no doubt the project will loose some key
people over a period of 3 years.
Committed Contractor. A Contractor that shares
the same vision and expectations was
undoubtedly one of the keys to success. The
Contractor was only happy if RasGas was
happy.
Integrating the Contractor into RasGas way of
life. The Contractor became very self sufficient
once appropriate access to key resources and
business tools was obtained. This was identified
in the early stages of the project.
Quality resources. This was a labour intensive
project and the results were only as good as the
effort (both internal and external) that was
invested.
Phasing of project. This enabled small
celebrations each time minor milestones were
achieved and kept the team and stakeholders
happy and enthusiastic all the way.
Contracting Strategy. RasGas adopted the
approach of In-house management and
outsourced execution. Using this strategy,
RasGas experience was embedded into the
project and ensured the quality that was
expected. Lessons learnt from previous
Contractor experience was utilized to the full.
A close relationship with the Contractor was key.
Re-work was kept to a minimum but when it was
required, the costs were shared so there was a
win-win situation for both the Contractor and
RasGas. RasGas personnel were open to
suggestions and ideas on project execution from
the beginning.
Business controls. Business controls are
essential for this type of project, which may be
huge in size and spread over multiple years.
Without a continuous focus on business controls,
this project would not have come to a successful
end.
Success seemed distant at the beginning of the project,
but by pursuing excellence, it came within our reach. In
spite of all the unexpected obstacles, the RasGas Asset
Verification and Spares Optimization project is close to
completion, achieving a remarkable result that will
position RasGas in the future with the realization of its
mission.
1
Business & Management; Track 1
Asset Verification & Spare
Parts Optimization Project
By,
Anton Moore
RasGas Company Limited
Qatar & RasGas
Project Overview
Project Journey
Challenges
Solutions
Achievements
Key Success Factors
Agenda
State of Qatar
Peninsula of 11,500 km
2
Located in Persian Gulf
Borders Saudi Arabia,
Bahrain & UAE
3
rd
largest reserves of
LNG in the World
Leader in LNG Industry
Milwaukee
Doha
7
1
0
0
M
ile
s
The North Field
Worlds Largest Natural Gas
Field
Covers 5,000 km
2
Gas reserves of 900 trillion
standard cubic ft
93 Offshore wells
Gas transported onshore via
pipeline
RasGas Company Limited
Facilities for Extraction, Storage, Processing & Export
Fleet of Q-Flex & Q-Max LNG Tankers
Key Customers in Korea, India, Italy, Spain, Belgium,
Taiwan and USA
Employees from 56+ Nationalities
Liquefied Natural Gas (LNG)
Natural Gas becomes Liquid
at 260 F
LNG is odourless, non toxic,
non corrosive liquid
LNG occupies 1/600
th
the
volume of Natural Gas
LNG burns more cleanly
than oil and coal
RasGas Plant, Ras Laffan, Qatar
7 LNG Trains
2 Domestic Gas Trains
1 Helium Plant
CMMS Profile
260,000 Equipment Tags
17,000 Unique BOMs
100,000 Material Masters
70,000 MMs with SOH
SAP & Meridium EAM
Systems
Integrated Asset Management Model
Reliability Leadership
Operator Care
Plan
Asset Verification
CMMS Optimization
Equipment
Strategy
Spares
Optimization
Maintenance
Plan
Duty Standby
Plan
Spares
Preservation
Plan
Execution
Reliability Optimization
Leading Indicators
Bad Actor Elimination
RCFA
There were Concerns
Not all assets in CMMS
BOMs not accurate or Consistent
Inventory levels never seem right
Too many stock outs
Too many Open Work Orders waiting for
Materials
RQ to receipt takes too long
No Integrated Spares Philosophy
Document
Sound Familiar??
Project Description
1 Field Asset (Equipment) Verification
2. Bill of Material Review
3. SAP material Master Data clean up
4. Review of Stock Levels
5. RasGas Sparing Philosophy Document
Project Estimated 2-3 yrs duration
- Resource intensive
- Outsource to specialized Company
1 Field Asset (Equipment) Verification
2. Bill of Material Review
3. SAP material Master Data clean up
4. Review of Stock Levels
5. RasGas Sparing Philosophy Document
Project Estimated 2-3 yrs duration
- Resource intensive
- Outsource to specialized Company
Reliability
Target
Equipment
Strategies
Integrated Spare
Parts Philosophy
Document
Updated SAP
Equipment Master
Increased Plant
Reliability
Updated Bill of
Materials
Updated Stock
Parameters
(Minimum Stock)
The Vision:
Right Spares available at the right time
Input
Desired Outcome
Preparation
Independent External Audit
Project Charter Developed
Charter Agreed & Signed by
Cross-Departmental Senior Management
Development of Partnerships
Project Scope of Work developed
But there were Challenges
How much would this project cost?
Resources Everyone already had a day job
CMMS/MM data not always available
1. Field Asset Verification
Methodology
Physically check all equipment in the plant
Collect Name Plate details
Also collect other useful Maintenance data
P&IDs used as reference and starting point
Results of Field work cross-checked with SAP
Company Technicians assigned full-time
Field Unit Operators used for unable to locate
Equipments
Field Asset Verification Challenges
Missing name Plates
Corroded or damaged name plates
Hot weather
Some Equipments not accessible
Some Equipments cannot be verified unless
shutdown
Equipments at height; required scaffolding
Offshore Wellhead Platform schedule
P&ID not always updated
Field Asset Verification Results
90,000 Additional Equipments Added
All Maintainable Equipment
Majority C&D Critical
Low rate of Unable to locate Tags (0.8%)
Some Duplicate Tags identified (1,200)
Scaffolding erected for Approx 2,000 Tags
2% of Tags could not be verified
Over 1,500,000 data points added or updated in
CMMS
2. BOM Review & Standardization
BOMs inconsistent across different trains
Review BOM completeness, compare SAP and cross
sectional and other drawings
CSPL vs. RSPL
Identify Parts Commonality
BOM Review Challenges
Most BOMs were 2yrs Operating spares and not
life cycle parts
Not all Documents and drawings available
Difficulties getting Equipment data from OEM
Many MMs Floating and not attached to BOM
Supporting documents not always with installed Qtys
Vendor master not updated for some OEMs
Original purchase not always with OEM
BOM Review Results
4,000 Unique BOMs created
70% of existing BOMs updated
55,000 new Material Masters created
Un-linked Materials identified for Obsolesce review
3. Data Clean Up in SAP
Duplicate MMs identified and removed
Material Descriptions updated & standardized
Short Text
PO Text
Maintenance Centric Text added
And the Challenges
Data constantly changing
PO Text rules changed leading to rework
PO Text with incomplete details
4. Stock Level Optimization
Required to ensure Minimum Spares needed to
support critical plant equipment
Contractor Software
SAP & Non SAP data
Consumption & MTBF based Analysis
Results reviewed by SME's
Across Departments: Engineering, Maintenance
& Supply
Criticality Matrix developed
Criticality Matrix
A EC EC HC MC
B EC HC HC MC
C HC HC MC LC
D MC MC LC LC
A B C D
Extreme Critical High Critical Medium Critical Low Critical
Color
Legend
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Existing Material Classification
Stock Level Review Challenges
Insufficient/Incorrect SAP data
Consumption Patterns
Lead Times
Prices
Repair Costs
MTBF Data
Parts Criticality
Results require significant effort to analyse
Engaging SMEs to take responsibility
Cross Functional responsibility & turf war
Funding for new items identified
Stock Level Optimization Results
For MMs with Previous Consumption History
23% of MMs Increase to Minimum Stock level
16% of MMs No Change
61% of MMs Reduction in Minimum Stock level
For MMs with No Previous Consumption
42% of MMs Increase to Minimum Stock level
28% of MMs No Change
29% of MMs Reduction in Minimum Stock level
Overall
36% of MMs Increase to Minimum Stock level
24% of MMs No Change
40% of MMs Reduction in Minimum Stock
Stock Level Optimization Results
Roles & Responsibilities
Use of OEM Vs Non OEM
Material Definitions
Inventory decision process
Stock Optimization & MRP
Specific material strategies
Signed off by
Maintenance Management
Engineering Management
Purchasing Management
Warehouse Management
5. Spare Parts Philosophy Document
RasGas Company Limited
___________________________________
Spare Parts Philosophy
Document
August 2010
Rev 1.0
______________________
150,000 On Site Hours with No Safety Incident
Project on Budget
Project Creep 25% extra work
90,000 additional equipments uploaded in CMMS
55,000 additional MMs created
4,000 Unique BOMs developed
Over 1,500,000 data points added/updated in CMMS
50,000 MMs had Stock Levels changed
Summary
Management Support & Commitment
Resourcing; Internal & External
Committed Contractor
Integration of Contractor into RasGas Daily Life
Internal Partnerships
Shared Vision
Contracting strategy
and lots of Persistence
Key Success Factors
Purchase of Identified spares
Removal/Disposal of obsolete Inventory
Continue with cultural change
Teamwork/Partnerships
Shared responsibilities
Communication with Asset Teams
Imbed learning's into base business
Identification of Inventory Optimization Tool
Next steps
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RasGas Company Limited 2010
www.rasgas.com
Thank You. Questions?