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Integrated Service Approach Results in Significant Cost Savings

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Hydrocarbon Engineering,

A major operator needed mechanical, inspection, and heat-treating services to support a large integrated hydrocarbon processing complex turnaround effort during peak season when resources were strained.

TEAM was hired due to its ability to supply the highest level of service through long established processes and procedures, allowing for greater efficiencies related to executing services. The company’s initiative from the onset was to perform services with cross-trained personnel and to provide savings for the operator with centralised coordination of services for the scope of work.

Prior to commencing work, a TEAM planner came on site pre-shutdown to participate in pre-meetings on scope and to evaluate additional equipment that may be required. TEAM strategically placed equipment on site to increase productivity based on site layout knowledge.

During the turnaround, skilled line-isolation technicians helped on synergistic tasks. High level line-isolation technicians were cross-trained to assist high level heat-treatment technicians and high level line-isolation / weld-test technicians were cross-trained to assist multi-certified NDE technicians.

This approach ensured highly-specialised technicians were not sitting idle waiting on other vendors to complete a task or service but instead were fully utilised. One TEAM technician provided services traditionally performed by 2 or 3 individuals. Utilising cross-trained and certified personnel for multiple tasks played a key role in minimising manpower levels.

Analysis of a 15 sequential cut pipe job utilising the blended crew during the turnaround project compared to traditional multi-contractor crews revealed:

  • Reduced durations and man-hours due to single accountability and communication / direction
  • Fewer overhead / indirect hours required, therefore reducing the daily / shift headcount
  • 75% lower overhead / indirect costs versus using multiple vendors based on a punch list review

Additionally, the operator realised a reduction in labour costs associated with shared resources under one contract for the following positions:

Safety – Total savings per Shutdown US$167 081.00
Tool Crib – Total savings per Shutdown US$119 290.00
QA/QC – Total savings per Shutdown US$202 565.00
Clerk – Total savings per Shutdown US$22 942.50

TEAM also utilised equipment supervisors to maintain equipment on site and in the company’s local shop without cost to the operator. All in all, utilising an integrated service approach, man-hours were significantly reduced and TEAM helped the operator realise a total cost savings of US$535 607.97 during its turnaround.

Author: TEAM, Inc.

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