OPERATIONAL READINESS WITHOUT DEL AY

Training & Development Systems, Inc. (TDS)

16902 El Camino Real, Suite 2B • Houston, Texas 77058
800-480-1128
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What is Operational Readiness?

A quick Internet search for “Operational Readiness” (OR) will uncover a …The biggest challenge for these
range of industry examples including many from the military and spe- projects is to bring them online,
cifically from NASA where “Mission Operations Readiness” or MOR was on-schedule and within budget
a primary focus leading up to each shuttle launch, particularly after the despite shifting resource availabili-
Challenger disaster. ty, supply chain uncertainties and
As major capital projects in the oil and gas and chemical industries have a broader lack of operational
become increasingly larger and more complex, operational readiness readiness that inevitably delays
has also become a key focus of program directors and megaproject startup.…
managers worldwide. The biggest challenge for these projects is to bring
them online, on-schedule and within budget despite shifting resource
availability, supply chain uncertainties and a broader lack of operational
readiness that inevitably delays startup. Larger project size and invest-
ment also mean that any delay has a correspondingly larger financial
impact on the owners and supply chain providers.

Because project delays cascade from inception to completion, acceler-

ating operational readiness early in the project is a proven approach to
help avoid delays during commissioning and startup. Such delays are
often caused by, or increased by, improper or insufficient mechanical
completion, inadequate operator training and poor procedures.

This paper explores the workforce development challenges to achieving

operational readiness and focuses on key opportunities to accelerate
that goal by developing key workforce performance tools (procedures Developing key workforce
and training) early in the project lifecycle. Effective and timely training performance tools, like
and accurate procedures have been shown to affect the project from procedures and training,
early stage commissioning through final acceptance testing and full early in the project lifecycle
production. These tools are also a primary line of defense to prevent can help accelerate
incidents and near misses – more than half of which occur during plant operational readiness.
startup, shutdown and other nonroutine operations.

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Megaprojects present Mega-challenges

Large capital projects and megaprojects directly impact the bottom-line
of an organization during construction and for many years after the plant
is on-line and making product. Despite the enormous cost of capital
projects, an Ernst & Young Study of 365 global oil and gas megaprojects
found that 64% faced cost overruns and 73% experienced schedule
delays.1
64%
faced cost overruns
and 73% experienced
These cost and schedule overruns delay unit startups further adding to
schedule delays.
the overall project costs. Accenture Research found that startup delays
resulted in approximately $700,000 of lost cash flow per day for a new Source: 1Ernst & Young Study
North American ethylene cracker in 2011.4

The new reality for capital expansion projects is:

1. Increasingly larger scales and technical complexity

2. Uncertain regulatory requirements
3. Challenging geographic locations – resource skill base, supply
chain risks, political instability
4. Constant workforce fluidity – staff changes
5. Urgent market pressures to produce

For a megaproject manager, this new

reality creates the necessity to plan
and deliver earlier in the project life-
Proportions of Projects Facing
cycle than perhaps ever before. From Schedule and Cost Overruns
design, construction and supply chain
53%
management to regulatory compli- Average project budget overruns 69%
41%
ance and resourcing, the project focus 70%

must be on readiness for commission- 78%

Proportion of projects facing 79%
ing, startup and operation. schedule delays 50%
68%

As shown in Figure 1, no segment of Proportion of projects facing

65%
62%
64%
the industry is exempt from schedule cost overruns 67%
and cost overruns and therefore the
0% 20% 40% 60% 80% 100%
benefits of an operational readiness
Upstream Refining Pipeline LNG
focus apply equally to refineries and
Source: EY Research & Analysis1
ethylene crackers, deep-water oil
and gas platforms, pipelines and LNG
facilities. Figure 1

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Reduce delays through Operational Readiness

Schedule and cost overruns can be attributed to a range of complex
variables related to failure to integrate engineering, construction and
operations effectively leading to an ultimate lack of operational readi-
ness. Recent Deloitte case studies found that up to 30% of the potential
value of a major program can be destroyed as a result of operational
30%
of the potential value
readiness failure.2 Many of these failures result directly from the com- of a major program
plex interplay between technology, infrastructure, people and process. can be destroyed as a
result of operational
Often, the ‘people’ side of achieving operational readiness presents the
readiness failures.
greatest challenge. How can these challenges be overcome? Accelerat-
ing operational readiness is one way. Source: 2Deloitte Case Studies

When startup occurs without issues, full production is achieved more

quickly and overall cost-to-deliver is reduced. Focusing early attention
and tracking key performance indicators (KPIs) on issues that drive oper-
ational readiness may be one of the most powerful tools in the project
management toolkit. Any incremental investment in operational readi-
ness resources or tools is far outweighed by reduced schedule and cost
delays. Operational readiness improves the transitions from engineering
to construction to producing asset. As mentioned earlier, these benefits
grow as the projects become increasingly larger.

Adopt Operational Readiness best practices

Creating an operational readiness focus for major capital projects and
accelerating operational readiness are best practices of high performing
organizations. To achieve these, high performing organizations:

• Plan early for startup and operations - consider production issues

earlier in design phases, involve operations stakeholders in the
design phases
• Verify and establish consistency and appropriateness of opera-
tions and maintenance procedures in advance of delivery …Develop procedures during
• Develop procedures during construction to ensure accurate reflec- construction to ensure accurate
tion of as-built information reflection of as-built information…
• Involve operations in determining skills required to startup and
operate the facility
• Prepare training programs during construction phases
• Begin operator training in parallel with final construction phases

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Figure 2 illustrates the recommended timing to begin working on key

human performance factors like procedures and training.

Feed

Detailed Design Develop Operating Procedures

Develop Operator Training
Construction
Conduct Operator Training
Commissioning

Startup

Operation
Figure 2

Focus on Workforce Development early

Gains from reduced delays related to design, procurement and con-
tracting can be lost quickly if human performance factors impede timely
and safe commissioning and startup of the new processes. During these
phases, the accuracy of information and the competency of the opera-
tions workforce executing the tasks are paramount.

Since being prepared to operate requires accurate and relevant in-

formation, receiving inconsistent sets of procedures from equipment
suppliers, EPCs and subcontractors can create even further delays. Each
of these suppliers has their own approach to developing system infor-
mation and procedures that may not align with the owner’s operations
culture. In addition, the system information is often based on a ‘stan- …engage professionals in proce-
dard design’ that does not accurately reflect the site-specific design. For dure and training manual de-
these reasons, it is important to establish requirements for content and velopment to ensure that your
format early in the process and engage professionals in training manual operations team receives exactly
and operating procedures development to ensure that your operations what they require…
workforce receives exactly what they require and can use from day one.

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Ensuring the accuracy of drawings, technical information and proce-

…it is vital that the training team
dures should come naturally to most major project teams. However,
be well-versed in regulatory re-
aligning and integrating that information into a front-end strategy that
quirements, technical terminology,
will train and assure the competency of operations and maintenance
operational concepts, technical
personnel is a project often assigned to resources who may have more
disciplines and job roles…
availability than experience. Since training can include a wide range of
topics from safe work practices and permitting, to mandated regula-
tory topics to equipment-specific vendor training and simulation, it is
vital that the training team be well-versed in regulatory requirements,
technical terminology, operational concepts, technical disciplines and
job roles. These are necessary, in addition to a practical understanding
of instructional design, gap assessment, competency assurance and the
integration of procedures into pre-startup training programs.

Evolving Regulatory Environment

Just as preparing the operations workforce for commissioning and
startup is an important driver for effective and accurate training and
procedures, so are the various regulatory requirements that can risk
being overlooked with a focus on “first oil” or “startup.” Regulations like
BSEE’s Safety & Environmental Management Systems (SEMS) for up-
stream, DOT Operator Qualification (OQ) for midstream, OSHA Process
Safety Management (PSM) for downstream, among others, all require Critical Human
that the workforce be trained and competent and have accurate proce- Performance Issues…
dures to ensure personal and process safety. Any non-compliance with • Complete and accurate
these regulations present major hurdles to on-time and safe startup and drawings
operation. • Complete and accurate
In fact, an Accenture survey of major capital projects in the utility in- procedures
dustry6 found that 54% of respondents felt that regulatory compliance • Procedures compatible
was the greatest challenge and the primary cause of schedule and cost with operations culture
overruns for major projects. This challenge is further complicated in an • Training based on as-
evolving and uncertain political and regulatory environment. Inevitably, built conditions
prior requirements will be replaced with new requirements, and mid- • On-time training of op-
stream oil and gas projects will need to adapt and adjust their training erations personnel
or procedures to accommodate the new mandates.

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While the primary intent of these regulations is accident prevention,

compliance will also support smoother and faster startups with minimal
trips or upsets. The tools developed to ensure that workers can safely
and effectively perform their jobs are the same tools that will increase
operational readiness and reduce time to production.

Changing Workforce Demographics

For any major project, assessing and hiring experienced and qualified
resources has always been a challenge. Today’s workforce is more dy- Today’s workforce is
namic than at nearly any time in the last 50 years. The aging workers are more dynamic now
approaching, and often choosing, retirement just as new workers enter, than at nearly any
often with little operations experience or technical training. This “brain time in the last
drain” has been discussed and debated for many years, but the effects
are becoming more apparent in all segments of the industry. While 50 years.
many of the older, experienced workers have re-entered the workforce
to run major projects, there is little chance they will remain once the
assets are operational. This means their knowledge must be captured
in training and procedures, and transferred to the younger operations
crews.

This dynamic also impacts the way in which technical information should
be delivered. Increasingly, training and technical instructions are pre-
sented in smaller chunks and are delivered in “YouTube-like” videos or
simulation scenarios that resemble video games. Blended learning tech-
niques apply a range of learning styles using mixed media that might
include a short on-line video segment followed by an interactive simula-
tion and culminating in a hands-on exercise using a process simulator.

New learning methods and performance support technologies will

continue to impact the way in which information is delivered during all
phases of a capital project. From web-based training modules for poli-
cies and mandated topics to self-study manuals, hands-on sessions and
process simulations, as well as operating and maintenance procedures
to support operational readiness in a major project will often require an
extended performance solutions team with broad training expertise.

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Prepare and provide training that delivers

Training program manuals, facilitator guides, exercises and evaluations Choose a Procedures
and Training Provider
should reflect the process and equipment accurately and should apply
Who Has:
sound instructional best practices. It is vital that training development
isn’t just an adjunct assignment for a project or design engineer. For
• In-Depth Procedure
training to deliver results, it should be developed by qualified training
Experience
professionals working in conjunction with the operations and equipment
• Solid Operations Ex-
experts. Training that applies blended learning methods including self-
perience
paced, web-based, walkdowns and simulations will reach the broadest
• An Instructional Sys-
audience and will deliver the best results in terms of comprehension,
tems Design (ISD)
competency and confidence.
Training Philosophy
Since new projects will require a combination of equipment vendor • A Proven Track Record
and site-specific training content, it is vital that the training developers in the Industry
understand how to best integrate various sources into a logical and • Field-Proven Formats
fit-for-purpose learning experience. The foundation of most programs
will lie in the system training manuals that document critical information
including the purpose, equipment, operating sequences, parameters,
hazards and consequences of deviation for each major system. This
information, whether electronic or printed, will provide a resource for a
range of training to support process operations and maintenance.

Effective training development requires access to all technical drawings

including process flow diagrams (PFDs) and piping and instrumentation
drawings (P&IDs), in addition to the process and equipment descriptions
and manuals provided by the various vendors and EPCs. This includes
major components, process skids and major system packages. Some-
times, the EPC may consolidate much of this information into a single
repository that is delivered as part of the design and construction pack-
age. It is vital to incorporate accurate and complete operating proce-
dures into the training since these procedures provide a framework for
training on the sequence for process startup, monitoring, troubleshoot-
ing and shutdown.

Training and operating procedures development can occur in sequence

or in parallel depending on project schedules, resource availability
and budgeting, but it is important to integrate these efforts to ensure
accuracy, continuity of information, ease of management of change, and
ultimately the logical comprehension and competency of process oper-
ators. Training for process systems should follow a logical sequence that
progresses from a process overview to detailed equipment descriptions

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to specific actions and precautions. The following is a typical outline of

essential operations training topics for new or existing processes:

Process Description
• urpose of system and major products
P
•
•
Process overview
Inputs and outputs General
• Key processes (reaction, compression, etc.)
• Process chemistry (hazards, materials)

Major Equipment
• Component types and function
• Key operating considerations

Startup Sequences (Procedures)

• I nitial, normal/routine, startup following maintenance
• Special procedures**
• Initial conditions
• Utilities and support systems
• Key valve alignment
• Precautions

Operating Parameters (Procedures)

• M onitoring critical variables
• Operating limits/alarms
• Consequences of deviation

Shutdown Sequences (Procedures)

• N ormal/planned shutdown
• Emergency shutdown

Process Troubleshooting
• Alarm management
Specific
• Major equipment

**For initial commissioning and startup training, there will be additional “special” procedures
to be addressed including flushing, nitrogen purging and pressure testing.

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The training content outlined above can be developed and delivered in

a variety of formats and methods. The foundation will most often be in Chunking
the form of the system training manual mentioned earlier (sometimes
Training should be
called the operating manual) and should include all the information in
delivered in shorter
the outline. From that basis, specific self-study guides, computer-based
sessions or modules
modules, plant walkdowns and even dynamic simulations can be devel-
rather than a non-stop
oped to facilitate delivery depending on project needs and budgets.
marathon.
Timing for training, especially pre-commissioning training is often
driven by the availability of operations personnel who are also focused
on mechanical completion and acceptance testing. If possible, training
should be delivered in shorter sessions or modules rather than a non-
stop marathon. This “chunking” of the training not only permits time for
the operators to complete other critical assignments but also provides
the opportunity to reinforce training with hands-on experience during
commissioning and startup activities. While this approach extends the
“training” bar on the project schedule, it will pay dividends in a better
prepared workforce and smoother startups.

In the end, true operational readiness requires that individuals who will
startup and operate the process have the knowledge and skills to safely
and effectively bring the plant online. Training based on the foundation
outlined here will satisfy the operational readiness requirement but will
also help ensure safe startup performance and compliance with applica-
ble regulations for hazardous accident prevention.

Develop accurate and effective Operating

Procedures
The need for effective operating procedures has been confirmed in
countless studies related to major accident causes. In fact, an average of
36.2% of incidents resulted from inadequately written procedures in 36.2%average number of
a study covering more than 50 years of data7. During that same period,
operator error was the cause in an average of 26.2% of the events. incidents resulting from
inadequately written
Operating procedures are a pillar of all major regulations for the process procedures.
industries, from OSHA 1910.119, Process Safety Management, BSEE’s
Source: 7Analysis of Past
Safety & Environmental Management Systems (SEMS), the Center Incidents in the Process
for Chemical Process Safety’s (CCPS) Risk-Based Process Safety to the Industries

Department of Transportation’s Pipeline & Hazardous Material Safety

Administration (PHMSA) rules for pipeline operations8/9.

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Because over half of all incidents and near misses occur during nonrou-
…effective procedures are
tine operations like startup and shutdowns, effective procedures are
even more mission-critical
even more mission-critical for new projects.
for new projects...
Effective procedures provide key information the operator needs,
including the:

• Steps required for a given operation and the sequence of step

performance
• Equipment identification and valve line-ups
• Hazards associated with the operation and required personal pro-
tective equipment (PPE)
• Warnings and cautions associated with specific steps
• Control limits, operating parameters, expected ranges and conse-
quences of deviation
• Diagrams and drawings to enhance interpretation
• Checklists to confirm that steps are performed and documented
• Troubleshooting charts

Procedures should be written to cover all phases of process operations

including:

• Commissioning
• Startup
• Shutdown
• Normal Operations
• Temporary Operations
• Abnormal Operations
• Emergency Operations
• Emergency Shutdown

So, is there a “best time” to begin to

Feed
write the operating procedures for a
new process? The answer depends on Detailed Design Develop Operating Procedures

several factors and the availability of Develop Operator Training

Construction
Conduct Operator Training
Issued For Construction drawings.
Commissioning
Figure 3 shows an accepted best
practice for this timing. Startup

Operation

Figure 3

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While accurate drawings and final design decisions are critical for proce-
dure development, there are still many advantages to beginning them Good Operating
even before “final” drawings are issued. Procedures should be…
Both commissioning and standard operating procedures can be written • Compliant with and adhere
in parallel with final mechanical completion and acceptance testing to regulatory guidelines
activities since there is access to equipment not yet in-service that may • Consistent with industry
not be possible during operation. This allows procedure developers and best practices
subject matter experts to walk down systems and verify equipment loca- • Uniform in design and
tions, piping runs and other critical information on the drawings. format
• Concise and suited to the
It is important that the procedures are developed according to industry task
best practices to ensure that they not just meet regulatory require-
• Compatible with procedure/
ments, but provide clear, concise instructions for safely performing oper- document management
ational tasks. Therefore, the format, content and style of the procedures systems
should be determined in consultation with experts in the field. • Comprehensive in hazards
and precautions
The procedure developer should also bring an in-depth understanding of
the technical process that the procedures address. This combination can
save extensive rework to correct technical errors, omissions or issues
with formatting and wording of the procedural steps. Any of these errors
will impact the availability or usability of the final procedures and impact
other downstream aspects of the project including commissioning and
ultimately plant startup.

When determining the best approach, and partner, for developing

operating procedures for a major project, follow similar guidelines to
those given for choosing a training development provider – extensive
procedure expertise and references combined with solid operations ex-
perience and industry-proven formats that can be tailored to the specific
project requirements.

Choosing the right resource to develop the procedures and beginning

early in the overall project, will deliver dividends during plant startup by
accelerating the time to overall operational readiness.

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Summary … On-Time Startup and Operation

Operational readiness drives on-time project delivery. At each phase of
a major project, it is imperative to keep the end in mind and consider
the operational impact of key decisions. Today’s increasingly complex
Is your
projects demand even greater diligence and the assurance that resourc- Workforce
es are prepared and integrated to deliver. Preparing and supporting the ready?
operations workforce with accurate procedures and well-developed
training programs are critical steps to accomplishing this goal.

Developing these critical tools early in the process after detailed de-
sign allows them to include information and images that may only be
accessed during construction, mechanical completion and acceptance
testing. Training sessions conducted during these stages provide a
unique opportunity for operations personnel to see inside equipment,
piping and vessels that will be inaccessible after startup. That knowledge
will add insight to decisions they make during startup and later during
operation.

Developing operations training and procedures earlier can also help mit-
igate the inevitable delays in the project caused by resource availability,
equipment issues and other unforeseen events. Follow the recommen-
dations outlined here and accelerate your project’s operational readi-
ness to deliver on-time startup and production.

Operational Readiness Best Practices…

• Consider production throughout design phases
• Involve operations early in project
• Actively assess, manage and close gaps
• Ensure accuracy and develop procedures during construction
• Develop operator training during construction
• Train operators in parallel with final construction activities
• Use simulation training to expose operators to realistic scenarios
• Complete safety-critical training first

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About the Authors

TDS [tdshou.com] - TDS provides workforce learning and development solutions and has served the oil and gas industry
since 1993. TDS collaborates with companies in the oil and gas, pipeline, petrochemical and refining industry to improve
workforce performance and bring out the best in their most valuable asset – their people. Expertise in the industry, as
well as in adult learning and competency management, provides TDS a keen understanding of your business, and our
flexibility allows us to deliver customized solutions quickly and efficiently. +1 800.480.1128

Sources:
1. Ernst & Young Global Oil & Gas Center, “Spotlight on Oil and Gas Megaprojects,” 2014 EYGM Limited.
2. Deloitte (2012) “Effective Operational Readiness of Large Capital Projects – Avoiding value leakage in the transition from project
execution into operations.”
3. Deloitte Operation go-live! Mastering the people side of operational readiness, 2013 Deloitte LLP.
4. Accenture Research analysis of Muse, Stancil & Co., and ICIS Consulting data, www.icis.com.
5. Achieving Effective Delivery of Capital Projects, Accenture global survey of the chemicals industry, 2013 Accenture
6. Developing Strategies for Effective Delivery of Capital Projects, Accenture global survey of the utilities industry, 2012 Accenture.
7. Analysis of Past Incidents in the Process Industries, Symposium Series No. 154, IChemE 2008, includes “Quantitative Analysis
of Major Hazard Incidents,” I.M. Duguid, 1998, 2001, 2005.
8. Operations & Maintenance Enforcement Guidance - Part 192 Subparts L & M, PHMSA.
9. Procedure Manuals for Operations, Maintenance & Emergencies, 49CFR 195.402.

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