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Maintenance Organization in a Fertilizer Complex Jorge Versace( Profertil S.A., Argentina)

I. Abstract

Profertil Maintenance Organization was designed to support the Asset Management of a commodity business with the aim to become a low cost producer. This means to achieve consistently the production levels with the minimum Total Life Cycle Cost (LCC) required by Company Strategic Plan. The development required a cultural change aligned with lean organization principles which take about 5 years. The results were the achievement of a performance level that meets the Maintenance World Class Key Performance Indicators, through a highly professional team.

II. Organization evolution Profertil was a new company developed to produce nitrogen fertilizers in Argentina, owned in the same proportion by YPF and Agrium. Only few key people from the share holders were moved to the new company. The balance was completed by hiring people from the market, with different cultural background. At the project stage that ends with the provisional acceptance of the LSTK, as per contract, Maintenance was responsible to support the contractor needs. During the period between provisional and final acceptance, PF was focused to complete all the pending issues with the contractor, with Maintenance working in a reactive approach. After the final acceptance and with PF Mission and Vision statements as guidelines, the Operation Department set their owns, which trigger a new Maintenance Organization design. It was clear at this time that was required a cultural change which implementation will take between 3 to 5 years. The journey was as per Figure 1.

III. Key values The Organization design was done on the following basis:

• Good systems design

• People trained to perform the systems

• An environment that

promotes people development trough their inherent talent

• Continuous improvement

Aligned with the above was defined a Mission, Vision, Overriding Goal and a Strategy. A set of principles, explicit to all people bring consistency to all the decisions and behaviors, becoming the cornerstone of the culture. All the statements were extremely challengeable, which despite the enormous concern created at the beginning in the people, facilitates the organization alignment. All the decisions since then were taken always looking the long term. The strategy was to follow a set of Industry Best Practices, split in the following chapters.

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1. Maintenance Strategy 2. Leadership and

Organization 3. Maintenance Tactics 4. Planning and

Scheduling 5. Turnaround

Management 6. Information Technology 7. Materials Management

8. Contractor Management

9. Measurement and Benchmarking performance

10. Reliability Analysis 11. Employee

Empowerment 12. Process Reengineering

Figure 1 – Profertil Organization journey

As an example of principles to be followed there is the Lean Management. Lean is a management system with the aim to reduce the waste inherent in any business process.

Following there are some examples on waste reduction, classified as per the traditional lean approach, when it is applied to Maintenance and its area of influence:

Since 2007 in consolidation

StrategicMaintenance

Since 2007 in consolidation

StrategicMaintenance

2005

ProactiveMaintenance

2005

ProactiveMaintenance

Jully 2002

Mission, V

ision, O

verriding Goal

Strategy, P

rinciples

Jully 2002

Mission, V

ision, O

verriding Goal

Strategy, P

rinciples

Per

form

ance

Prog

ress

Per

form

ance

Prog

ress

2003

PlannedMaintenance

2003

PlannedMaintenance

2002

Reactive Maintenance

Start Up

2001 2002

Reactive Maintenance

Start Up

2001

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– Seven deadly wastes • Defects

– Poor Availability (business losses) due Poor Reliability and/or poor Maintainability. – Larger Maintenance and Operational costs due lack or improper practices – Improper Engineering function.

• Overproduction Doing more PM and PdM than what is cost effective. Execution of non value adding tasks • Waiting Waiting spare parts delivery, Waiting for equipment clearance, etc • Transportation Tools not located near the work area. • Processing Poor processes (work order system, repaired techniques, etc) • Inventory Spare parts stock out when required, material obsolescence, etc. • Motion Poor engineering files. Poor shop layout.

– 5 S – Sort – Working areas ordered supporting Quality jobs and EH&S

IV. Maintenance structure

A- Organization Structure The organizational structure promotes a proactive mindset. In all cases there are only 5 levels in the command chain from the CEO to the workers and 3 levels in Maintenance. The three management functions reporting to the Maintenance Manager are (separately) provided for:

a- Planned work preparation

1. Supervisor: 1 Engineer) 2. Normal maintenance

Planning (1Planner) 3. Normal Maintenance

Scheduling (2 Schedulers)

4. Planned Turnaround Planning and Scheduling (Special team)

5. PM/PdM Plan Management (1 Engineer)

6. Static Equipment Inspections (3 Inspectors)

b- Work execution (Mechanical,

Pipefitting, Electrical, Instrumentation and General Services)

1. Supervisors: 5 2. Crew:36 3. Clerical employee

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c- Reliability Engineering

Reliability Team i.Supervisor: 1

1. System Engineer (1) 2. Instrument Engineer (1) 3. Electrical Engineer (1)

ii.Sr.Mechanical Engineer (1) iii.Sr. Rotating Equipment

Engineer (1) Overall average Span of control is 1/5, with 1/ 9 on the workers crew. B- Employee empowerment

People working with procedures and trained to work within them, with all the complementary technical and generic competencies, have empowerment. That means they work autonomously. The supervision and management role is to lead the team through coaching, people development, creating an environment where people talent can emerge, developing and/or improving the systems and making the existing ones work, aligning Area/Sections Vision and Goals to Company Strategy and to follow the progress. The key concept is that mistakes came from wrong systems which are manager’s responsibility, not worker’s responsibility. So the way to do the right things right, is only through good systems and with people trained on them. By focusing the organization in a systems continuous improvement, we enter into a

virtuous circle that produces better and better results. People at any level role is to work within Systems looking for opportunities to improve them, to set personal Vision and Goals, aligned with Area/Section Vision and Goals and to have a personal development plan to close the gaps between the required and actual performance on their Generic Competencies and Technical Competencies. Simultaneously the criticality level of the different positions disappears and no heroes are any more needed. Understanding the above, people have the empowerment to work autonomously at any level and in teams as needed. As an example in the workers case, they receive the schedule tasks for the week, with the spare parts kitting delivered by warehouse as per the planning jointly with the special tools from the crib. They pick up the procedures from the CMMS through different computer terminals spread in the shops. They analyze the job risks through appropriate checklist, request the equipments to operations through work permits, execute autonomously the jobs, checking the quality through the procedure checklists, they fill through computers terminals all the appropriate information requested to close the work order into the CMMS, including elementary RCA when is requested by criteria set in work order process procedure.

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V. Equipment database

All maintenance equipment is included in the database with information concerning the equipment. The Data structure is organized according ISO 14224 (Petroleum and natural gas industries Collection and exchange or reliability and maintenance data for equipment), bringing basis for the collection of reliability and maintenance data to be applied in – Reliability, e.g. failure events

and failure mechanisms – Availability/Efficiency, e.g.

equipment availability, system availability, plant production availability

– Maintenance, e.g. corrective and preventive maintenance supportability

– Safety and environment, e.g. equipment failures with adverse consequences on safety and/or environment

A hierarchy according ISO 14224 is used resulting in the following – Equipment class (414

classes defined) – Equipment unit (2114 main

equipments) – Subunit (10487 auxiliary

equipment) – Maintainable items

We keep the numbering system criteria establish in the original Project engineering. In addition to the above, equipments criticality was evaluated taking into account the following:

1. Safety 2. Environment 3. Product Quality

4. Product Quantity 4.1. Production 4.2. Equipment Repair Time 4.3. In-Line Spare. Reliable spare with required capacity

That task was done by a multidisciplinary team composed by operation supervisors, Process Engineers, H&S Specialist, Maintenance engineers, Inspectors and logistic supervisor In order to evaluate near 12600 Equipments registered in our CMMS, they were divided in the following way: • Main equipment: are those

evolved directly in the processes, i.e. Cooling Water Pump (near 2100 Equipments).

• Auxiliary equipment: are those auxiliaries for the Main Equipment, i.e.: lubrication oil pump, monitoring instrument for Cooling Water Pump.

The Main Equipments were evaluated by the multidisciplinary team and the Auxiliaries ones taking into account the criticality of the Main Equipment, with the following results: Main Equipment (2114)

• Critical: 500 (24%)

24 %

• Medium: 301 (14%) • Low:1313 (62%)

76 %

Auxiliary Equipment (10487)

• Critical:1915 (18%)

18 %

• Medium: 709 (7%) • Low:7863 (75%)

82 %

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The criticality is used in Reliability Engineering for appropriate PM/PdM Plans design. The objective is to put focus where lever efficiently the overall results, within the lean management concept.

VI. Computerized Maintenance Management System (CMMS)

Maintenance processes was fully mapped as we progress in the cultural change, with several revisions to optimize them. The existing CMMS at this stage followed the process map progress. Once we complete this step, the company decided to move all the administrative systems to SAP, in order to satisfy information integrity required by different Stock Exchanges. As standard SAP Maintenance module did not fit PF processes and requirements, was decided to fully customize the SAP to meet and / or improve what was in place. The customization took an important effort for about one year for the all the team. It is important to highlight that company prioritize to preserve the success of the Organization progress by following the existing systems and processes, rather than impose a can system divorced with was already in place. The CMMS has a Standard Operating Procedure, which supports the lean concept to move as much as possible the activities and decisions to the lowest levels. Aligned with that, authorizations are defined for each user role Discipline to use the system appropriately is in place and maintained through audits to preserve timing and quality of data loading All users are effectively trained. As an example, each Worker completes all the job information to

the system within the work process, including elementary RCA, before the job is considered finish.

VII. Measures of effectiveness Profertil establish a set of KPI aligned with well known World Class KPI, benchmarked with consultants, general literature and fertilizers and petrochemical companies. The metrics are used to monitor performance. The metrics are not objectives. Organization is focused to accomplish the Mission, Vision and Goals. The metrics only measure the performance. Following Table 1 the main KPI used by the organization

Indicator World Class Target

Avg 2005-2007

Maintenance Cost/Replacement Asset Value

• Top 1st < 1.4 %

• Mid 1st < 3.1 % • 2 %

Emergencies • < 5 % • 1.6 %

Proactive maintenance

• > 60 % • 75%

Observance of Proactive Maintenance Schedule

• > 95 % • 95 %

Scheduled activities • > 80 % • 93 %

Accomplishment of schedule

• > 90 % • 94 %

Overtime • < 5 % • 2.3%

Back Log • 3 to 5 weeks • 4.1 weeks

Training • > 5 % • 5.5 %

Maintenance works covered by WO

• > 90% • 100%

Table 1

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The maintenance cost to Asset replacement value index is fully aligned with the definition of SMRP (Society for Maintenance and Reliability Practitioners). It takes into account in the Maintenance costs all the capital costs associated with Maintenance. The number showed of 2 % average for the period included significant equipment replacement costs which will refer later in the Reliability Engineering section. The asset replacement value was calculated by international independent engineering companies accepted by bank communities. The year 2008 was not considered, due high noise from many problems we experienced with gas supply shortages and its consequences, that were overcame in 2009.

VIII. Maintenance task and procedures

a- General tasks and procedures Profertil has an Integrated Management System qualifying ISO 9001, ISO 14001 and OSHA 18001, that supports Maintenance activities. Jobs execution results are essentials for the long term performance. Quality is a tool that maintenance has to support Reliability, avoiding practices than can degrade it. Keeping in mind that we must rely on the systems and train the people to perform and improve them, PF oriented maintenance activities toward a Procedure Base Organization. This means that all the relevant activities are executed through procedures that include check lists, which are the quality assurance plan. With the aim to do the right things right, people should know why and how to do the job, controlling that they was

done it right, by on line inspections, with objective information that supports the quality, to be delivered to the CMMS. a- Work System - Procedures The procedures are the way used by the organization that helps the people to work within the systems. The procedures are written by the people that perform the jobs like workers, supervisors, engineers, whichever is responsible for the work execution, containing sufficient detail to ensure consistency. They work on them with the guidelines of the Original Equipment Manufacturers (OEM), inputs from our Engineers, lessons learned, EH&S, Inspectors, Supervisors, and Manager. The technical procedures are reviewed by the supervisors and approved by the applicable engineering discipline. Quality control and EH&S are part of the procedures. c- Maintainability Down time is a function of Maintainability that affects the Availability. Once failures fix require down time, the way to reduce it, is to work on the systems to optimize them. All the areas where subject to a Maintebility analysis, looking for processes, procedures, facilities, tools and whatever is needed to perform a faster, safer and quality job, that restore as fast as possible the function of the system. This approach reduces wastes coming from business losses as well as Maintenance costs, improving the Total LCC. d- Preventive and predictive tasks (PM/PdM)

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PM / PdM tasks are considered the most important maintenance work in the facility. For this reason PF target is to devote 30 % of work force to PM & results (15/15 %) and 50 % of work force to PdM & results (15/35 %) The tasks are developed using an RCM/PMO basis as will see with more detail in the Reliability Engineering section. The appropriate PdM technologies are used where cost effective justified. Most of the well known state of the art technologies are in place like continuous vibration and data collection, ultrasonic, tomography, NDTs, etc. The results of the program are monitored, evaluated and adjustments are made as needed

IX. Maintenance Planning and Scheduling

Planning and Scheduling Section primary objectives are:

1. Optimal support of the operation production plan by improving maintenance in broadest sense, considering both the technical aspects and service provided to the internal customer. In order to have a clear understanding of the provisions committed customer – supplier service agreements are in place

2. Completion of maintenance work when it is needed, in a safe and efficient manner at the most effective (optimal) cost

3. Minimization of the loss production due to maintenance process

4. Optimize utilization of maintenance labor and materials through effective planned and balanced schedules

5. Equitable resource allocation based on understood the criteria and varying business needs of the internal customers supported

6. Minimization of labor delays and idle time through effective coordination of all participating functions, including internal customers.

The Planning and Scheduling system takes into account: A- Normal Planning The work is professionally planned and programmed. Tasks history is used for planning and scheduling Labor estimates are reasonably accurate (within +/- 10 %) and applied to all backlog jobs (3 weeks < backlog< 5 weeks) The Planning function is not involved in emergency work Scheduling is done jointly with Production on a weekly base. Weekly Schedules are not broken except in extreme cases (E<2 %; U< 8%) Weekly schedule compliance is measured and trended (> 90 %) It is important to highlight that more than 80 % of the jobs are originated from maintenance PM/PD or the findings coming from both systems.

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B- Medium and Long term planning Planning is responsible for two strategic plans called 18 months Plan and 5 years Plan. The first one covers the activities foreseen in the next 18 months and is rolled each 6 months. The second includes the activities foreseen in long term and is rolled yearly. Both are used for overall planning and budgeting, supporting the Maintenance Vision, aligned with the Company Strategic Plan. C- Turnaround A Planned Turnaround (PT) process is in place and establishes the following steps

1. Phase I - Strategic Planning and Budget – Start after a PT and finish in July of the year previous to the PT

2. Phase II - Detail Planing – Ends 6 months ahead the date of the PT

3. Phase III - Scheduling - Ends 45 days ahead the date of the PT

4. Phase IV - Execution – Within the Schedule

5. Phase V - Continuous improvement - Finish one month later of the end of the PT

D- Unplanned Turnaround The approach to unplanned turnarounds follows the criteria of “Run while you can”. After a shutdown you may afford different problems than the one cause the shutdown. But when you must shutdown, you must take advantage on the opportunity window. In order of that:

1. An identification process for jobs that require shutdown is in place

2. This jobs are planned and scheduled just in case Plant must shutdown by any reason.

3. Based on the characteristics of an unplanned shutdown, the basket of jobs is screened and the ones that can fit in the downtime are launched

4. The balance will remain pending for an appropriate future opportunity

X. Work Control A formal work order process is in place and used by all site personnel. All the maintenance processes are mapped through flow diagrams and are used as a training tool No maintenance work is done outside of the work order process and all the personnel understand their responsibilities in the work process. Routine audits of the Work Process and Quality are done. As a reference the work sampling shows Avg. 2009 a wrench time 59.3 % as well as full compliance of the Work Process. The manpower effectiveness measured as actual hrs/planned hrs, is also controlled showing an Avg. 2009 of 104 % Safety audits are continuously performed with compliance > 97 %.

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XI. Personnel Development An effective training program is in place for all people called PDI that means in Spanish Individual Development Program. It covers technical and general competencies and is three years rolling every year The development program is “customized” for each individual:

• A general and technical competencies assessment is performed • Required general and technical competencies are identified • The gap between actual and required competencies is measured • A plan to close the gaps is issued

Appropriate financial commitment to training is made. We devote 3 % of the pay roll for general training. Specific training expenditures related to tools or software, are treated outside the training budget. Average training is > 5 % of working time and > 40 hs/ people It covers all people from workers to engineers. As result of the program we have workers certified with levels 1 and 2 of NDT, Vibration, Ultrasonic, Thermograph as well as Engineers certified Safety Systems (SIS & SIL), NDT, SRMP, Welding; etc. The training is composed by formal training, mentoring, books and articles reading; special tasks and projects, RCAs, experience shared, on-job training, e-learning, etc.

XII. Spare Parts Inventory An effective spare parts catalog system is in place and materials are purchased through the integrated company computer system (SAP) The inventory stocking decisions are based on risk with Maintenance input (RCS – Reliability Center Spare system in place)) Effective materials kitting process is in place. The warehouse delivers the materials to the different shops at least the day before are needed for the jobs execution. The inventory is managed by the SAP system and the stock out is bellow the 1%.

XIII. Reliability Engineering A- Introduction to reliability The level of reliability of a system is established at the point in the life cycle where production begins (Start Up) and called As Built Reliability (ABR). It is influenced by the project different stages as shown in Figure 2. Maintenance Organization can do nothing rather to fix problems that came from these stages and that impact in the Total LCC. PF has many objectives evidences of this assessment. As an example, a failure in the Syn gas converter second catalyst bed center screen, produce economic losses which Total Cot estimated in 115 MMU$S. The problem was originated on weld failures between the different screen rings due lack of penetration.

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Figure 2

The starts up and shutdown during the life of the plant, particularly in 2007 and 2008 due shortage of gas, led to a fatigue process that broke the weak welds. The breakage allowed catalyst leaks that end through all the syn gas section plugging many exchangers and driving to many shutdowns to clean equipment until we were prepared for the center screen replacement. We still have a couple of exchangers partially plugged that require its replacement to get normal Plant capacity in a next turnaround.

Figure 3

The figure 3 shows the arrows indicates broken welds due lack of penetration in the welds and the figure 4 shows Broken center screen after being replaced by a new one, under the inspection of the insurance company. There may be opportunities for reliability growth through redesign, but there are always threats for degradation as a result of many factors. (See figure 5)

Figure 4

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Figure 5 The only way to improve As Built Reliability is through a change in the design. ABR is the limit impose to Operation and Maintenance Organization in assuring Reliability. In the scenario where optimum Operational and Maintenance practices are in places at the time of the Start Up and designed throughput has been achieved, reliability cannot be improved by Operation and Maintenance. The conclusion is that actual reliability is a function of the following factors:

• Engineering who sets the ABR or its growth through redesign.

• Operations who can degrade

ABR by Operational Practices

• Maintenance who can degrade ABR by Maintenance Practices

• Management decisions that can degrade ABR.

So the maximization of the actual reliability is a result from a joint effort coming from Engineering, Operation and Maintenance, supported by Management decisions. We will refer next specifically on the Maintenance Organization contribution to the Reliability. B- Reliability Engineering team The Reliability Engineering team is responsible to support the Company Strategic Plan, through Maintenance Physical Assets Policy the Plant Availability (Reliability and Maintainability) and Utilization within the minimum Total Life Cycle Cost. The Plant Availability jointly with the Plant Utilization brings the basis for the Production levels. We must remember that Availability (A) is: A= MTBF/ (MTBF+MDT)

Act

ual R

elia

bilit

y M

aint

enan

ce C

osts

Reliability Growth Potencial zone (redesign)

As Built Reliability ( Operational & Maintenance limit)

ReliabilityDegradationPotencialZone

Management Decisions

Life Cycle

Operation Practices

Maintenance Practices

Start Up

Act

ual R

elia

bilit

y M

aint

enan

ce C

osts

Reliability Growth Potencial zone (redesign)

As Built Reliability ( Operational & Maintenance limit)

ReliabilityDegradationPotencialZone

Management Decisions

Life Cycle

Operation Practices

Maintenance Practices

Start Up

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Where MTBF (Medium Time Between Failures) is a function of Reliability and the MDT (Medium Down Time) is a function of Maintainability. Their Reliability Engineering main objectives are:

1. To define and review the PM and PdM plans that allows the required Availability at the minimum Total LCC aligned with the Company Strategic Plan through the Physical Asset Policy 2. To improve actual reliability leading the Continuous Improvement Cycle

a. Proactive cycle: FMEA, RBI, RCM and PMO b. Reactive cycle: RCA, Six Sigma and CBM

3. To find and improve PdM techniques 4. To improve reliability through redesign when required for Availability and/ or minimum Total LCC as per Company Strategic Plan 5. To resolve high technical maintenance problems 6. Interface between Maintenance and Project Engineering 7. To perform special inspections 8. To advise Operation Team in Operational Practices that preserve the Mechanical Integrity of the assets, improves actual Reliability towards ABR, and maximize assets Utilization.

C- Maintenance Physical Assets Policy The Maintenance Physical Asset Policy focus to supply an optimum strategy that reduce, eliminate or mitigate the failures and their consequences through a process centered on the criteria of the RCM

(Reliability Centered Maintenance) and the PMO (Planned Maintenance Optimization), aligned with minimum Total LCC requested by Company Strategy and business plan. The figure 6 shows the process follow by the Policy

Physical Asset Policy

PM /PdM

ISO 14224

CMMS

Field WO's

RCM/PMO

CBM RBI

RCA FMEA

Figure 6

In order to understand the policy is important to define the related systems involved.

1- RCM a- RCM Definition The primary objective of RCM is to preserve system function, as oppose to equipment function. RCM is a process used to determine what must be done to ensure that any physical asset continues to do what its users want it to do in its present operating context. b- RCM Process i) What are the asset

functions (what do the users want it to do)?

ii) In what ways can it fail (the failed states)?

iii) What causes it to fail (the failure modes)?

iv) What happens when it fails (the effects)?

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v) In what ways does the failure matter (hidden, safety, environment, operational)?

vi) What can be done to prevent or predict the failure?

vii) If we can’t prevent or predict the failure – then what can we do?

2- PMO

a- PMO Definition PMO is an empirically based approach to RCM which quickly engages those closest to the equipment, the tradesmen and operators. PMO achieves the same analysis outcomes as RCM t at significative less cost and faster than RCM.

b- PMO Process The PMO process has nine steps. i) Task Compilation ii) Failure Mode Analysis iii) Rationalization and FMA

Review iv) Functional Analysis

(Optional) v) Consequence Evaluation vi) Maintenance Policy

Determination

vii) Grouping and Review viii) Approval and

Implementation ix) Living Program

RCM seeks to analyze every failure mode on every piece of equipment within the system being analyzed. PMO generates a list of failure modes from the current maintenance program, an assessment of known failures and by hazard analysis of technical documentation, primarily Piping and Instrumentation Diagrams (P&IDs).

As RCM is analysis intensive, with high effort consumption. Profertil decided based on a cost effective approach, to apply it only to 500 (critical) out of 2114 main equipment through 33 RCM planned to be executed along 10 years starting in 2004. On the other hand PMO, which is faster and with less resources consumption, was applied to 100 % of the equipment. Both methodologies are combined in the way showed in Figure 7.

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Figure 7

The RCM/PMO system has the inputs of four systems: FMEA (Failure Mode and Effect Analysis), RCA (Root Cause Analysis), RBI (Reliability Base Inspection), CBM (Condition Based Monitoring) and the feed backs from the work execution. The feed backs are delivered to the CBM and RCA subsystems. The outputs impact the PM/PdM system as well as the work execution.

FMEA FMEA is a systematic method for identification and prevention of failures in equipment/maintainable items (Mode analysis, Causes and failures potential effects) Products and Processes before the occurrence. PF performed FMEA on Class oriented basis (every Object within our CMMS belongs to a predefined Class. Classes definition were made

10487 (100%) Auxilary Equipment (associated)1915 (18%) Auxilary Equipment (associated)

10487 Auxilary Equipment (associated)

RCM/PMO: candidates definition criteria

2114 Main Equipment

Grouped into33 RCM Systems

3.3 RCM Systems/year ⇒ 10 years(2004/2014)

RCM PMO

Selected500 (Critical) ⇒ 24 %

Selected2114 ⇒ 100 %

300 PM’s(existing)

150 PM’s/year ⇒ 2 years(2006/2007)

19%

100%

Affects EveryAsset

EventuallyModifies PMO

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according to ISO 14224, where possible, and 414 were defined). So, each FMEA was developed not considering the Operational Context FMEA was thought to impact on each Class that contains at least, one Critical or Medium Equipment. So, we can say that FMEA covers near 7800 Equipments (Main and Auxiliary), distributed in 175 Classes RCA RCA is a methodological process to identify the physical, human and latent causes of a failure or incident for corrective actions to minimize the Total LCC, keep assets integrity and improve EH&S, supporting the company strategic plan. PF perform RCA on two different ways, which we named as:

• Basic: This method is applied to all the Breakdown Work Orders and it requires the Technician to complete Detected Problem, Analysis and Solutions, plus Failure Mechanism and Failure Cause, both according to ISO 14224.

• Formal: This method is

performed by means of an analysis team, using a formal process

RBI Risk based Inspection (or RBI) is a risk-based approach to inspection in the Oil and Gas industries based on API580.

The purposes of RBI include:

1. To move away from time based inspection governed by minimum compliance with

rules, regulations and standards for inspection.

2. To apply a strategy of doing what is needed for safeguarding integrity and improving reliability and availability of the unit by planning and executing those inspections that are needed.

3. To provide economic benefits such as fewer inspections, shorter shutdowns, longer run length, and less frequent shutdowns.

4. To safeguard integrity.

PF performed RBI on Static Equipment and PSV’s based on their criticality. This means near 170/340 Static Equipment (Main and Auxiliary), distributed in 28 Classes, plus near 100/435 PSV’s distributed in 3 Classes. So, we can say that RBI covers near 270/775 Equipment (Main and Auxiliary), distributed in 31 Classes. CBM CBM is a system which with the inputs of RCM/FMEA, the condition based monitoring, operating parameters and the costs of the failures through Weibull statistical analysis, correlated variables, risk and financial evaluations

• Predict equipment failure. Estimate remaining useful life of equipment.

• Define the mix of preventive replacement & run to failure in order to:

o Optimize costs o Optimize reliability o Achieve the optimum

risk/cost/reliability balance

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PF defined to analyze by CBM system, every physical asset that shows a minimum amount of 6 Failure Mode occurrences (the same one), consistently with one of our RCA candidates definition criteria. This, not only let us to take advantage of the ability of the application to detect correlated variables (in order to help to the RCA, in case the Root Cause were not clear), but also give us back an optimum inspection/intervention period, in case of accepted ware out problems.

XIV. Conclusions

1. Organization design, which was done exclusively by PF team, follow the same rules that any project. Emphasis on conceptual engineering followed by a consistent detail engineering, proper planning and careful implementation were the basis for the success. 2. People commitment at all levels was crucial for the success. 3. A cultural change takes time. Consistency of purpose was kept during the journey in spite of environment changes. The principles guidance supports all the decisions during the process. 4. The design of Profertil organization implies a win - win approach between the Organization and all the stake holders (share holders, internal and external customers, employees, authorities, local community and the society in general). 5. The design leads to a performance which meets World Class KPI. 6. Actual Organization challenges are to consolidate the

level achieved and to sustain a performance that follow the upgrade World Class KPI through a Continuous Improvement Process, aligned with Company Strategic Plans.

The author

Jorge A. Versace is the Technical Manager of Profertil – Argentina. Over the last 37 years he has been involved in Engineering, Project, and Maintenance Management in Chemical and Fertilizers Plant. He also was responsible for the development of the Profertil Project. Jorge A. Versace hold a degree in Electromechanical Engineering from Universidad de Buenos Aires – Argentina and a MBA from IDEA/ Wharton School of Pennsylvania University. He is member of ASME, ASM and SMRP. During 20 years he was professor in Industrial Power System and Economy in Universidad Tecnológica Nacional – Argentina.