Costing, Budgeting & Control for Turnarounds and Shutdowns

A turnaround or shutdown is a major event for refineries and chemical plants, among others. Many companies struggle with the successful execution and start-up of a plant shutdown, while the impact on costs and lost revenues can be enormous. Especially in times when plants are getting older, it is a necessity to improve the predictability and controllability of turnarounds.

This unique two-day course provides participants with insights into budgeting, budget creation, and outsourcing and control. The course will cover multiple real-world case studies and issues, from creating conceptual budgets in an incomplete scope, to determining and reporting on turnaround status and performance.

The following insights obtained in the course can be put into practice immediately after completion:

• Gain knowledge of what is involved in completing a turnaround on budget and on time.
• Gain better control over turnarounds and shutdowns by preparing budgets faster and more accurately.
• Become familiar with processes such as Earned Value Management and Field Change Management

Part 1: Establishing the right budget and preparing for sound cost control

• The economic impact of a turnaround on a company
• Budget classes and methodologies for more accurate budgets
• Case study and examples: creating conceptual and detailed budgets for turnarounds
• Selecting the right form of contract
• Outsourcing work and selecting the right contractors
• Case study and examples: conducting a commercial bid evaluation
• The link between budgeting, planning and cost control
• Planning of budgeted activities and resources
• Case study and examples: determining and optimising the critical path during execution

Part 2: Actively controlling the implementation

• What is cost control and how is it correctly implemented?
• Case study and examples: Drawing up and following up the cost report
• Determining the progress of the preparation and execution of the turnaround
• How can information from the field be used for cost and time management?
• Earned Value Management: a handy set of tools for management to steer
• How to deal with large flows of information and more/less work during the execution: Field Change Management
• Role playing: assessing, negotiating and settling additional work
• Close-out and benchmarking: improve future turnarounds by capturing risks, trends, cost information and more.
• Systems integration and the digital age: streamline processes and safeguard knowledge.