Smarter Shutdown, Turnaround, Outage Management
93% of STOs Are Late or Over-budget. Why?
STOs Are Not Like Traditional Projects
All too often, STO (Shutdown, Turnaround, Outage) managers lack access to timely, reliable data which frequently resides in multiple, standalone and unconnected systems of record. They are forced to make time-sensitive decisions based on intuition and limited information.
Furthermore, STOs are not traditional projects and cannot be successfully managed using typical project management tools and techniques. They need a holistic approach suited to high-VUCA (Volatile, Uncertain, Complex & Ambiguous) environments.
The Root Cause: High VUCA
The identification of VUCA environments originated in military operations and industries. But as STOs become more and more complex, they too are typified by the definitions of VUCA environments.
Volatility
Rapid, frequent and large-scale changes
Uncertainty
Rapid, frequent and large-scale changes
Complexity
Rapid, frequent and large-scale changes
Ambiguity
Rapid, frequent and large-scale changes
Why Do STOs Continue to be Late and Over-Budget?
As high-VUCA environments, STOs are fundamentally different to any capital or routine maintenance project. The majority exceed their KPIs because they cannot be successfully planned, managed and executed using age-old “tried and tested” project management tools and techniques.
To date, there has been no holistic solution that by design addresses the root cause and unique management challenges associated with high-VUCA environments.
STO Success Factors
The success of any STO is dependent on five main factors:
Volatility
Uncertainty
Complexity
Ambiguity
Ambiguity
The Impact of VUCA on STO Success Factors
Volatility
Uncertainty
Complexity
Ambiguity
Scope
Volatility
Multiple stakeholders & found work drive change
Uncertainty
Scope only fully understood after opening & inspecting equipment
Complexity
Many tasks to complete in a very short timeframe, with competing priorities & constraints
Ambiguity
Lack of unified view & transparency limit optimization of scope
Cost
Volatility
Limited time & available data raise cost of inevitable changes
Uncertainty
With multiple unknowns & changing scope, cost uncertainty is high
Complexity
Inefficiencies associated with poor ability to manage complexity raise cost
Ambiguity
Ambiguous scope & contractor unfamiliarity result in greater contingency and higher estimates
Schedule
Volatility
Directly impacted by scope changes & limited ability to identify most effective use of resources
Uncertainty
Lack of real-time visibility & poor agility related to re-scheduling decisions
Complexity
Many interdependent tasks require harmonious operation of labor, material & equipment for successful execution
Ambiguity
Delayed/absent field data & historical analysis result in outdated &/or inaccurate schedule, & reliance on historical estimates & excessive buffers
Quality
Volatility
Quality is impacted by time and cost pressures, as well as contractor familiarity
Uncertainty
Challenges enforcing accountability & lack of transparency reduce quality
Complexity
Complex activities require multiple crafts & contractors, generating ownership & coordination issues that reduce overall quality
Ambiguity
Poorly communicated quality standards and expectations result in highly variable results and rework
EHS
Volatility
Rapidly changing work environments are inherently dangerous
Uncertainty
Assumptions, poor controls & lack of accountability can create EHS risks
Complexity
Time pressures, inadequate resources & craft-to-craft dependencies can lead to serious EHS incidents
Ambiguity
Unfamiliarity & poorly documented processes & procedures generate reliance on “tribal knowledge” & risks
Learn more about what MobideoSTO can do for your Turnaround.
