Produced by:

BASF´s MODEL of EXCELLENCE for TURNAROUND SCOPE MANAGEMENT

Raúl Sánchez MartínBASF SE

More than 15 years

experience at BASF in

Europe (Spain – Belgium –

Germany) in Capital

Projects, Maintenance &

TAR Management

Since 2009 harmonizing

Turnaround Management

Process at BASF

Raúl Sánchez on dutyScope ManagementScope Management

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• BASF is the world´s leading Chemical Company

• Offers intelligent system solutions and high-value

products for almost all industries

• The unique Verbund concept is key to our strategy

• Petrochemicals are the heart of the Verbund

• Their major role is to provide reliable and secure

supply for the most important value chains of BASF

• Products used in all BASF divisions apart from Oil&Gas

BASF at a glanceScope ManagementScope Management

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BASF at a glanceScope ManagementScope Management

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• BASF is the world´s leading Chemical Company

• Offers intelligent system solutions and high-value

products for almost all industries

• The unique Verbund concept is key to our strategy

• Petrochemicals are the heart of the Verbund

• Their major role is to provide reliable and secure

supply for the most important value chains of BASF

• Products used in all BASF divisions apart from Oil&Gas

BASF´s Verbund principleScope ManagementScope Management

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BASF´s Verbund principle

“They pump in natural gas, oil and salt at one end,

make everything and the byproducts are recycled.

There is very little actual waste.” The Times, Nov. 1998

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BASF´s Scope Management process

Turnaround scope management types

Key to improve: Ownership

Common mistakes & other challenges

Presentation focusScope ManagementScope Management

8 TAR@CP INTERN 88

Rows: 10 TAR Them

es

Columns: 6 TAR Phases

Fundamentals

Strategic

Planning

Conceptual

Planning

Basic

Planning

Detail

PlanningExecution Post-SD

Cost ManagementEHS-Q Management

Organization

LogisticsCommunication & Meetings

ProcurementWork Execution

Scope ManagementScheduling

The Matrix

Scope Mgmt PlanScope Criteria

Scope ChangeMgmt

Scope CollectionScope Dev.

Scope Synchr.Scope Challenge

Scope Freeze

SD Scope MgmtRemaining Work

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BASF´s Scope management process

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Unacceptable environmental impactUnacceptable safety impactUnacceptable reliability impactUnacceptable financial impact

if not performed

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Scope criteria

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Scope Collection

Scope OwnerScope list format & responsibleStandard for Scope descriptionPreliminary Scope list

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Scope Overview & BenchmarkScope items classificationValidity of defined Scope criteriaCheck mandatory ScopeJustify non-mandatory ScopeScope Challenge resultsDocumentation Scope Challenge

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Scope Development & Challenge

Meetings for Scope discussionsScope evolution Experience & best practicesTechniques to optimize ScopeMaster Scope list

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Scope Freeze

Date depending on Scope Type8 to 12 months in advanceIt is frozen but still alive

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Scope Change Management

Late Scope, Additional Repairs and Discovery WorkBalance: flexibility and controlDifferent authorization levelsScope Change ≠ Change OrderAgility: Crash Team

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BASF´s Scope Management process

CRITERIA

COLLECTION

CHALLENGE

FREEZE

CHANGEMGMT

SCOPSCOSCSSCOPE

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Turnaround Scope management types

“I want it all”

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“One vision”

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“Under pressure”Scope ManagementScope Management

“We will rock you”

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“We are the champions”Scope ManagementScope Management

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But, are we the champions?Scope ManagementScope Management

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And what about you?

1. Scope Criteria approved and communicated? 2. Clear definition of how detailed the scope should be

to allow the planners to know what to do? 3. Method to challenge in a open and objective way in

accordance with approved criteria?4. Early Scope Freeze to enable the work preparation to

be completed in due time? 5. Procedure to add scope during execution: late scope,

discovery work, additional repairs?

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Key to improve: Ownership

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Scope OwnerScope ManagementScope Management

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Wrong IN the scope

Right IN the scopeRight OUT the scope

Evaluating Risks

– … Wrong OUT the scope

SCOPE

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Risk Assessment MatrixScope ManagementScope Management

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Scope Change Gatekeeper

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Scope Change Management

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Scope Changes Impact

Planning Execution

De

cre

as

ing

O

pp

ortu

nity

Inc

rea

sin

g

Co

st

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Common mistakes& other challenges

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Pre-SD Scope OverflowScope ManagementScope Management

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Uncontrolled Project ScopeScope ManagementScope Management

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Improvisation paradoxScope ManagementScope Management

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Communication breakdownsScope ManagementScope Management

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In a nutshell…

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… don´t forget that

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CRITERIA

COLLECTION

CHALLENGE

FREEZE

CHANGEMGMT

SCOPSCOSCSSCOPE

… and to

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Any questions?

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Thanks for your kind attention

Produced by:

Raúl Sánchez MartínBASF SE

raul.sanchez-martin@basf.com

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Scope ManagementScope Management

Some very good referencesand other stuff

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Biblio, Video & AudiographyTo read:Turnaround Shutdown and Outage Management, Tom Lenahan, Elsevier, 2006Managing Maintenance Shutdowns and Outages, Joel Levitt, Industrial Press, 2004World-Class Turnaround Management, A.Bobby Singh, Everest Press, 2000Proven turnaround practices, R. J. MOTYLENSKI, Hydrocarbon Processing, April 2003

To watch:http://www.youtube.com/watch?v=3ID21iNB_UMhttp://www.napofilm.net/en/napos-films/napoepisode?filmid=id_napo_film_14To listen:I want it all (1989, The Miracle, written & produced by Queen) One vision (1985, A Kind of Magic , written & produced by Queen)

Under pressure (1981, Hot Space, written & produced by Queen & D.Bowie)

We will rock you (1977, News of the World, written by B.May, produced by Queen)

We are the champions (1977, News of the World, written by F.Mercury, produced by Queen, assisted by M.Stone)

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Image´s sources2) Raúl Sánchez3) BASF - The Chemical Company4) BASF - The Chemical Company5) BASF - The Chemical Company6) BASF - The Chemical Company7) Alexis O’Connor (Flickr - Creative Commons)8) Patrick Hoesly (Flickr - Creative Commons)9) Estampa Tamarindo10) pfctdayelise (Flickr - Creative Commons)

Estampa Tamarindo11) roblisameehan (Flickr - Creative Commons)

Estampa Tamarindo12) richard winchell (Flickr - Creative Commons)

Estampa Tamarindo13) MinilmalistPhotography101.com (Flickr - Creative Commons)

Estampa Tamarindo14) MP Bumsted, Biocultural Science & Management (Creative Commons)

Estampa Tamarindo15) Dricker94 (Flickr - Creative Commons)

Estampa Tamarindo16) Queen (www.queenonline.com)17) BluEyedA73 (Flickr - Creative Commons)

migothlaundry (Flickr - Creative Commons) robert van der Steeg (Flickr - Creative Commons)

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18) Sam Beebe / Ecotrust (Flickr - Creative Commons) 19) zimpenfish (Flickr - Creative Commons)20) Iiz west (Flickr - Creative Commons)21) www.nba.com/mavericks/playoffs/2011_nba_finals_champions.html 22) Raúl Sánchez23) Johnathan Nightingale (Flickr - Creative Commons)24) Brenda Clarke (Flickr - Creative Commons)25) BASF - The Chemical Company26) Estampa Tamarindo27) Raúl Sánchez28) Christian Köberl (Flickr - Creative Commons)29) Raúl Sánchez30) El Bibliomata (Flickr - Creative Commons)31) Nicu Buculei (Flickr - Creative Commons)32) The National Guard (Flickr - Creative Commons)33) Technoloic (Flickr - Creative Commons)34) http://darmano.typepad.com/35) http://www.napofilm.net/en/36) Steffen Zahn (Flickr - Creative Commons)37) Estampa Tamarindo38) A.Ruesga (Flickr - Creative Commons)39) Colin Kinner (Flickr - Creative Commons)40) Tambako The Jaguar (Flickr - Creative Commons)42) Herry Lawford (Flickr - Creative Commons)

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Image´s sources

Produced by:

Raúl Sánchez MartínBASF SE

raul.sanchez-martin@basf.com