Sharing success annual 2013

Improve

Our improvements, innovations and ideas

Sharing Success

WorleyParsons Improve Relationships Australia and New Zealand 2013

Welcome Note from Ivan Welcome to Sharing Success, our regular opportunity to share our best ideas, innovations and improvements across our relationships and customer sector groups.

I am pleased to be introducing the 3rd annual publication of the Sharing Success magazine. When we launched this initiative, I made the point that adding value to our customer’s businesses was critical to our success as an organization. This imperative is stronger than ever, particularly as many of our customers continue to struggle through difficult times in their industries and in particular manufacturing and processing in Australia and New Zealand is beset with the challenges of strong Australian and New Zealand currencies, increasing costs and depressed commodity prices. We will only continue to maintain these relationships with our customers if we continue to create value for them. It is an imperative not an option.

Through these difficult times, we continue to see how people have taken the challenge, delivered innovative approaches and have been leaders in many ways in their relationships with their customers. We share these in this publication.

We have chosen the Shell Todd Oil Services (STOS) team in New Zealand as this year’s overall winner and the HSE winner as well; their story is exceptional. They have just achieved two remarkable safety milestones. Considering that this is a team working in an integrated fashion with STOS and providing EPC Maintenance and Project services support (including blue collar execution through a number of sub-contractors), to achieve 5 million work hours LTI free and to also achieve a TRCFR of zero, is an outstanding result. In addition, the integrated team has also achieved bankable maintenance savings of AUD 6 million thus delivering long term cost value-add as well. Great work to the team.

A highly commended award goes to the Exxon-Mobil team from the Altona Refinery for their fine work on the Kerosene Service Project. This project commenced in January 2012 as a Fast Track High Priority for Mobil. Careful planning and flawless execution allowed the E1102 to be successfully commissioned within 11 months and 15% under budget with a total installed cost of AUD 1.2 million. ExxonMobil has also recognized the team for their great delivery of this project.

Well done.

There are many other great examples of value-add in this publication and I encourage you to read them. Please continue to share your successes with the rest of the Improve community. We commend all of you for the great work being undertaken and continue to encourage you all to challenge yourselves and your teams to continuously improve our delivery performance and add value to our customer’s businesses.

Ivan Cauley Regional Improve Director ANZ

If you have an idea, innovation or achievement you would like to share with your colleagues through this publication please contact: sharingsuccess@worleyparsons.com Publication Produced by

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Sharing Success Welcome note from Ivan

WorleyParsons Marketing & Research Group, Australia

Editor Kim Nguyen Improve Marketing & Research Kim.Han.Nguyen@worleyparsons.com

Contents Sharing Success Overall Winner and HSE Winner 2013

4

Highly Commended, E1102 into Kerosene Service Project

6

Special Mention, Planned Pohokura Shutdown Assurance Steps

8

Silver Excavation Methodology

9

Innovating to Improve Productivity

10

Betterways Digs Pipeline Plan

11

Zinc Plant ‘C’ Packed cooling tower refurbishment

13

Lilly’s Bridge Life Extension

14

Flakt Duct Failure

16

LEAN Workshops

17

Portfolio Management, Reducing Construction in Progress Funds

18

Material Management Improvement

20

Re-rate Calculation Productivity Improvements

21

Live Project Cashflow Review Process

22

Condenser Partial Re-Tube

24

Learning from Lessons Recorded

26

Demineralisation PLC Upgrade

27

Milestone in Safety

29

Risk Management Process Key to Transformer Delivery and Assembly Success

30

Contents Sharing Success

3

Overall Winner and HSE Winner 2013 Improvement Journey, STOS Customer

Shell Todd Oil Services Limited (STOS)

Name Location

Shell Todd Oil Facilities Integrated Services Taranaki, New Zealand

What was the need?

Shell Todd Oil Services (STOS) produces about 70% of New Zealand’s natural gas for their joint venture owners.

Through an evergreen Improve Relationship which began in 1993, WorleyParsons provides engineering, construction, procurement and maintenance services for all STOS facilities employing a one-team, integrated approach with our customer. The relationship includes pipeline and loadout facilities, three offshore platforms, three onshore production stations, nine remote well sites and three tank farms.

Safety and caring for the environment are the top priority for STOS. The challenge for our customer on these facilities is resource security, facility know-how and technical competence in keeping with their safety and environmental focus.

What did we do?

We have a long standing relationship, deploying complete asset management solutions to STOS. Working integratedly with our customer, the contract team draws on existing WorleyParsons joint ventures for support in the execution of this integrated services contract. We employ global expertise from both parent companies to support portfolio delivery and implementation.

The team operates offshore in the Taranaki Basin and onshore around the Taranaki region. The maintenance teams comprise of mechanical, instrument and electrical technicians as well as scaffolders, riggers, insulators and painting crews. Construction engineers provide support to customer managed maintenance activities. Project teams include project managers/engineers, designers, engineers, commissioning and project support staff in addition to trade crews.

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The team has achieved bankable maintenance savings of USD 6M since contract inception.

Sharing Success Value over life of the contract

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What was the outcome and how much value did we add?

STOS has been established as a ‘Best in Class’ asset integrity system, as assessed by Shell Global Solutions.

The customer’s facility has been benchmarked within Shell’s Top 200 global contracts.

The team has achieved bankable maintenance savings of USD 6M since contract inception.

There has been an 80% HSE improvement since 1998.

To date our team has delivered over 5 million work hours since the last lost time injury to the contract team, which includes 30+ subcontractor organizations. This performance highlights our ability to work with our customers, contractors and vendors in a consultative and collaborative way to deliver the Zero Harm vision. The current Total Recordable Case Frequency Rate (TRCFR) is 1.9 per million work hours. This is a significant achievement on our journey towards Goal Zero.

Since 2010 the relationship, which includes 270+ contractors, has reduced its TRCFR rate from 8.6 to 1.9 per million work hours on a rolling 12 month basis and has recently achieved a TRCFR of zero.

Who was involved?

Stephen Sandifer (Improve Relationship Manager) and the WorleyParsons and STOS integrated team: John Pitman (STOS Project Manager, Special Projects), Paul Taylor (Pohokura Projects Manager), Phil Moore (STOS Manager of Projects/ Programme Change Manager) and Kerry Williamson (STOS Maintenance Engineering and Project Delivery Manager).

What did we learn?

HSE leadership and persistence can transform a team’s culture. HSE ownership has become real throughout all levels of the team with leadership becoming increasingly supportive, visible and active in pursuit of Goal Zero and perfectly aligning with STOS’ safety and environmental priorities.

During 2013, the integrated team celebrated an injury free period of 270,000 work hours, showing each company’s ongoing level of commitment toward operational HSE excellence.

Maui Production Station, image courtesy of Shell Todd Oil Services Limited

“We are proud of the improvements made within this relationship and are working together with our customer towards further improvements in keeping our integrated team free from harm.�

- Steven Sandifer, STOS Relationship Manager

Value over life of the contract Sharing Success

5

Highly Commended E1102 into Kerosene Service Project Customer

ExxonMobil (Mobil Refining Australia)

Name Location

Mobil CME Alliance (Construction, Maintenance and Engineering) Mobil Altona Refinery, Victoria

What was the need?

Who was involved?

The Mobil Altona Refinery wanted to increase jet fuel production to meet the growing demand from Melbourne Airport.

Slade Davis (Project Executive), Alex Zeltsvas (Project Manager), David Sinclair (Chief Mechanical Engineer), Travis Milgate (Lead Mechanical Engineer), Scott Mansfield (Mechanical Engineer), Greg Wittison (Lead Structural Designer), Anil Verma (Lead Process Engineer), Aldo Madrusan (Project Accountant), Lucas Young (Senior Piping Designer), Eloise Gordon & Nadia Kosta (Senior Civil/ Structural Engineer), Lata Kompella (Senior Instrumentation & Control Engineer), Kamal Gattu, Steve Maheras and Scott Pritchard (Construction Management).

The customer identified that the E1102 (heat exchanger in the Light Virgin Gas Oil [LVGO]) train) was underutilised and could be used to alleviate a kerosene cooling constraint.

Implementing the project was provided an estimated 20% increase in jet fuel production.

What did we do?

The project commenced in January 2012 as a Fast Track High Priority Project for Mobil.

Work included; heat exchanger configuration, thermal performance of heat exchangers, flow balancing, hydraulics for kerosene rundown, sampling point, provision for CSO valves, HAZOP, instrument data sheets, waivers, installed stopples and pipe stress analysis.

Structural fireproofing was required for each pipe support and the team also designed and installed thermowells, a temperature indicator and a temperature transmitter.

Stopples and the hot tap were conducted by Furmanite Australia and spring supports were supplied by Tyco and manufactured in Germany.

What was the outcome and how much value did we add?

The E1102 was successfully commissioned within 11 months and was 15% under budget with a Total Installed Cost of AUD 1.2 million.

The team delivered a flawless execution and commissioning with no personal injuries or process safety issues.

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Sharing Success E1102 into Kerosene Service Project

What did we learn?

The team ensured that weekly engineering design and construction progress meetings were held. These were arranged by WorleyParsons and approved by Mobil. With the time spent together the team developed a strong bond and a clear understanding of the task at hand. This was particularly evident between the WorleyParsons Project Manager/Mobil Project Executive/Transfield Construction team.

WorleyParsons engineering coordinated work to provide continuity between disciplines and supported each other to complete the work in the dedicated timeframe.

Main: 2-Crude Distllation Unit, Insert: Hot tap installation arrangement

E1102 into Kerosene Service Project Sharing Success

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Special Mention: Planned Pohokura Shutdown Assurance Steps Customer

Shell Exploration New Zealand Limited (SENZL)

Name Location

Pohokura Shutdown Northern Taranaki, New Zealand

What was the need?

Partial or total shutdowns are always carefully planned to make sure all necessary projects and actions are strictly delivered within the shutdown timeframe. Shell Exploration New Zealand Limited (SENZL) was preparing for a planned, full plant shutdown. As part of this planning, our customer needed to ensure absolute integrity in documentation and flow-of-work for their Pohokura hydrocarbons processing plant at all times.

SENZL required a process to coordinate the preparation and execution phases of a 26,000 work hour, 14 day, 24/7 shutdown at Pohokura.

Pohokura, in Northern Taranaki is New Zealand’s largest natural gas resource producing about 40% of the country’s natural gas and a significant quantity of condensate. SENZL operates the field and makes safety and caring for the environment their first priority on behalf of joint venture partners.

What did we do?

Our people worked integratedly with SENZL to develop innovative tools to effectively manage the preparation and execution planning phases of this full plant shutdown. Our team knows most systems work best if kept simple rather than complex. With that in mind they generated a visible colour coded gated work pack system to hold all work documentation. Each workpack would only move to the next coloured gate after successful completion of the current stage.

Along with this, an Andon (visual signal) board, typically used in manufacturing was used. This recorded agreed actions for the day/week and provided everybody with an overview of the project. At a glance you would see the status of work and any issues flagged. Visual boards were also adopted in the pre-works and execution of events on site. Contractors were bought in early so they understood the process and work to be undertaken during the execution phase.

1)

What was the outcome and how much value did we add?

The customer’s plant was brought back on line 20 hours ahead of schedule despite losing two days due to bad weather.

Collaboration of the process and tools between the customer, shutdown planning team and contractors were very positive.

The shutdown planning was carried out by a smaller team than previous shutdowns and this engaged team provided a positive culture to the process when moving into the execution phase.

The use of visual tools meant the contractor workforce was accountable and engaged in the process. All KPIs (HSE, schedule, quality, cost) were met, making for very happy customer and contractor workforce. These learnings have since been distributed into other areas of the business.

Who was involved?

John McDonald (SENZL Pohokura Tank Farms Activity Manager) Paul Brown (SENZL Pohokura Operations Engineer), Craig Moles (Shutdown Coordinator), Duncan Fraser (Maintenance Supervisor), Duncan Scott, (Senior Mechanical Engineer), Phil Smith, (Shutdown Manager Pohokura) and Mark Newsome (Construction Manager).

What did we learn?

Communication is key and having everything visible for all to see meant there was no hiding; accountability and ownership of tasks and activities set was very empowering to all involved. The team culture was established during the planning phase, which moved straight into the pre-shutdown and execution works.

Structured pre-shutdown planning meant all permits and Job Hazard Asssessments were reviewed by SENZL’s operations department. This enabled additional checks and balances to take place pre-shutdown, reducing risk during execution. Visual boards were placed at the work front so the day’s activities could be discussed between all contractors making it possible for conflicts to be resolved before the work was started.

3)

1) Pre-shutdown Andon 2) Pre-shutdown Gated Board 3) Execution Gated Board 8

Sharing Success Planned Pohokura Shutdown Assurance Steps

2)

Silver Excavation Methodology Customer

Nyrstar Port Pirie

Name Location

Nyrstar Port Pirie Alliance Adelaide and Port Pirie, South Australia

What was the need?

The Precious Metals Refinery (PMR) building that was built in the 1930s was demolished as part of the New Silver Plant Project. Due to old silver extraction methodology, silver was found to have leaked through the floor and into the ground underneath this old building. Nyrstar believed it would be beneficial to demolish the building and excavate the site to extract all the lost silver accumulated over the decades. The project involved the demolition, excavation and re-surfacing of the old building. The scope included demolition of the 3m high perimeter concrete wall, brick walls between each column, demolition of the building walls and roof, relocation of services that were mounted on walls and roof, removal of all cell house equipment such as gold slimes and 88 x cells, installation of structures to ensure building stability, and cleaning of the site.

What did we do?

WorleyParsons developed an excavation methodology to undertake the works. The methodology had three main stages of work: (1) pre-outage, (2) outage & (3) post outage.

Careful planning and care was exercised during the excavation process beneath and along the perimeter wall to avoid damage to the unidentified electricity power supply buried 1 meter under the road surface as well as other utility services including optical fibre, gas, water, sewer, telephone, permanent survey marks and irrigation lines.

What was the outcome and how much value did we add?

The demolition and excavation works were completed on time and budget and ensured soil enriched silver excavated material could be exported by a targeted shipping date. This resulted in a very high revenue return to Nyrstar.

Over the life of this project, approximately AUD 100 million worth of silver nitrate was returned to Nyrstar.

Who was involved?

Dario Novak (Improve Relationship Manager) and the Nyrstar Alliance Team.

What did we learn?/Customer Comments?

The team ensured all forms of safety works and risk assessments were delivered early in project planning. All contractors were briefed and trained to adopt WorleyParsons HSE standards and towards zero harm. The contractors who had inexperienced operators were asked to have adequate supervision at all times.

As built drawings were used but not solely relied upon for dimensional accuracy during this process, instead all measurements and dimensions were confirmed before work began.

Below: Excavated site, Right: Old precious metals refinery

Silver Excavation Methodology Sharing Success

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Innovating to Improve Productivity Customer

Our Australian, New Zealand and Canadian customer bases

Name Location

Leading Practice Network – Led by industry, for industry Brisbane, Queensland

What was the need?

Strongly focused on building stronger customer relationships, our Leading Practice Network connects cross-industry peers for sharing, learning and discussing innovations that deliver increased business and project performance.

The customer-led steering committee regularly meets face-to-face to set the focus for the network each year and to help find solutions to common challenges and issues. Committee members are leaders drawn from our key customers within each of our industry sectors.

Established in 2001 by WorleyParsons and Transfield Services, this network acts as a hub and producer of leading practices in areas such as safety, productivity, resourcing strategies, people, cost and project management and operational excellence.

Improvements across industry sectors and within individual customer companies are achieved through events and tools that connect members, giving them access to international and subject matter experts.

What did we do?

The Leading Practice Forum is an annual event that fosters sharing, networking and learning of leading practices related to industry-chosen themes and topics. Held in Brisbane May 2013, the network successfully delivered the 12th annual Leading Practice Forum - LPF13. Themed “Innovating to Improve Productivity”, this forum was structured around more than 25 leading practice solutions, delivered over two days to more than 160 delegates representing oil and gas, power, mining, manufacturing, rail, roads and transmission and distribution industries.

Stand-outs for delegates were the following papers: • Syncrude’s presentation, on how their Canadian engineering services alliance, Cosyn, developed and implemented the I3 model (pronounced “I Cubed”), a continuous improvement process to create an innovative and collaborative work environment • Lean Delivery master class facilitated by Sarah Bordas, Manager Engineering at WorleyParsons Canada Delegates connected with peers, local leaders and international experts through discussions, networking events and sessions.

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Sharing Success Innovating to improve productivity

What was the outcome and how much value did we add?

Feedback was strong and positive. Delegates found LPF13 beneficial through various opportunities such as: networking with peers, cross-industry application of topics, leading practices and connection to local and international experts.

The theme of innovating to improve productivity was as relevant to our oil and gas guests as it was to those in the rail industry.

Who was involved?

LPF13 Steering Committee comprised operations leaders drawn from: BlueScope Steel, Aurizon, Ergon Energy, Boyne Smelters, ExxonMobil, Alcoa, Rio Tinto, Refining New Zealand, Nyrstar, Sydney Water, OneSteel, Sandvik, BHP Billiton and Origin Energy.

LPF 13 Organizing Committee comprised: Philip Baker, Alex Arthur, Dan Heinrich, Hayley Sutton, Melanie Riding and Sam Goldsmith.

What did we learn?/Customer Comments?

Feedback from our customers was strong, some examples are: BLUESCOPE STEEL: “An excellent topic, ‘Innovating to improve productivity’, took us to a new level of delivery.

Aspects of innovation came out that I had no anticipation of prior to the forum.”

QENOS: “The entire conference provided a real chance to discuss and network talk topics of mutual interest. A great opportunity to exchange knowledge.”

ALCOA: “Excellent. Great mix of big picture and lower level picture issues. Good opportunity to mix with peers between sessions.”

What next?

Planning is already underway for the next LPF, planned for later this year, again Brisbane.

Betterways Digs Pipeline Plan Customer

ExxonMobil (Mobil Refining Australia)

Name Location

Mobil CME Alliance (Construction, Maintenance and Engineering) Mobil Altona Refinery, Victoria

What was the need?

The Mobil Altona Refinery has a number of underground pipelines that the maintenance team had to maintain which required going through a number of steps: 1. Excavation 2. Removing pipe sleeves/insulation/wrapping/coatings 3. Inspecting for any corrosion 4. Repair, if required The process was time consuming and had safety concerns with digs being open for long periods leading to the: • Dig-site constantly filling with water • Tankfarm bund integrity needed to be maintained

What was the outcome and how much value did we add?

The review of the pipeline maintenance method has provided a safer more cost effective process.

Replacing pipes, rather than undertaking ongoing maintenance has provided significant time savings.

Typically once the site is prepared, a pipe can be cut and replaced within one week.

This initiative has identified cost savings of ~$500K against the 2012 plan. This is a 50% cost reduction and an ongoing savings for the site.

• Site road closures

Who was involved?

• Constant resource drain on operations to permit the dig site

Transfield Worley Relationship team, Saunders International and Mobil Reliability & Operations.

This prompted the project team to look for a more efficient approach.

What did we do?

The maintenance team conducted a cost review and identified that it was more efficient to cut and replace the pipe section rather than inspect and repair. By cutting and replacing, the size of the excavation site is reduced and the use of pre-prepared lines minimizes final in field pipe coating works.

What did we learn?

This initiative highlights the benefits of working collaboratively towards a common customer-focused goal.

The project team brought structure, planning plus an understanding of the cost base of this program, which led to the implementation of a number of project improvements.

Currently the team is reviewing the identified remaining dig locations to determine appropriate executions windows so that a five year plan can be compiled.

The project team then worked with the refinery to determine an execution plan factoring tanks currently under maintenance.

Mitigating pipeline risks by this method has significantly reduced maintenance time and achieved cost savings for the refinery.

Betterways Dig Pipeline Plan Sharing Success

11

1) State of the internal packers during the clean out

2) State of the eliminators before repair

3) Removing damaged fiberglass panels

4) Installing new timbers, repaired eliminator in the background

Zinc Plant ‘C’ Packed cooling tower refurbishment Customer

Nyrstar Port Pirie

Name Location

Nyrstar Port Pirie Alliance Adelaide and Port Pirie, South Australia

What was the need?

Beginning in 2006, the Nyrstar Alliance is responsible for working with Nyrstar to develop concepts, undertake feasibility studies, detail engineering requirements, procurement, site construction, fabrication, commissioning and handover. In August this year the Nyrstar Worley Parsons Alliance was asked to refurbish the ‘C’ Packed cooling tower in the zinc plant as this tower was performing poorly and was leaking. This task was taken on and the project mobilization got underway in early September after funding approval.

The project included stripping the insides of the tower down completely and removing all the timber packers, repairs to the fiberglass structure of the tower, manufacture of new packers, installation of packers, repairs to eliminators and external steel and concrete repairs.

What did we do?

The team decided to sole source the refurbishment to Gadaleta Steel Fabrication. A local company that had previous experience in refurbishing Cooling Towers and with a reputation of executing these works safely and efficiently.

McMahons and Neptune Fiberglass contractors were also involved in carrying out the associated timber and fiberglass installation works.

The budget for the project was AUD640k. The schedule of works was planned so that the cooling tower would be repaired and back on line as soon as possible. The agreement was that the tower was to be handed back to production as soon as the internals were complete and that the external work could continue while the tower was being used.

What was the outcome and how much value did we add?

The delivery of repairs to the cooling tower was met on time and within budget and the external works are currently being completed as per schedule. No added costs were incurred by Nyrstar as the refurbishment was timed to occur within the Tower’s off line cleaning programme.

In total approximately 1,000 litres of resin and 1,000 m2 of fiberglass matt were used for the tower repair. A further 25m3 of timber was used to manufacture and install new packers in the tower. This was a great effort by all staff and contractors involved as the timing was critical to get the tower repaired and back on line and in production as soon as possible.

Who was involved?

Daniel Alexander was the Project Leader for this project and he was supported by Mick Hancock (Construction Coordinator). The refurbishment contractors were Gadaleta Steel Fabrication, McMahons and Neptune Fiberglass.

What did we learn?

As the project work was awarded to contractors, supervision and training of the contract workers to the alliance’s safety standards was a top priority. Safety is our top priority on site and all contractors need to know and work to our standards, in this way we were able to maintain our safety record on site.

Zinc Plant ‘C’ Packed Cooling Tower Sharing Success

13

Lilly’s Bridge Life Extension Customer

Boyne Smelter Ltd (BSL)

Name Location

BSL Improve Relationship Boyne Island, Queensland

What was the need?

The support piles for Lilly’s Bridge at BSL Haul Road were significantly corroded on the sections exposed to the tides.

Lilly’s Bridge mainly carries haul road trucks for metal delivery to wharf and also pitch tankers. The bridge also carries the site’s natural gas line, the haul road conveyor system and various data and communication cables.

Lilly’s Bridge is a critical infrastructure asset in BSL’s logistics chain. For BSL to continue operations, it was essential for them to refurbish the heavily corroded piles that supported the bridge. Should the bridge structure fall into disrepair or fail, it would severely impact haul road traffic and services.

The project team needed to devise a solution that allowed for the sleeving of piles by welding reinforcing steel plates and other options to be considered during pre-feasibility state that required high capital investment.

What did we do?

After researching a number of the pontoon walkways used in marinas across Australia, Syed Quadri and his team designed a purpose built flotation platform. This flotation platform was designed to give workers a stable area to work which was secured and wrapped around two steel piles at a time, giving workers two work fronts. The design also allowed for the movement of the platform based on tidal changes.

The estimated costs of this option, including the welding of reinforced steel plates, were AUD 195,000 representing a saving in excess of AUD 1 million relative to the other options.

The secondary benefit realised was the use of the flotation platform to fix the deteriorating outer (cathodic) protection layer, and other associated infrastructure, which otherwise would have cost an estimated AUD 20,000 - 30,000.

What was the outcome and how much value did we add?

The successful delivery of this project has extended the life of the bridge by 15 years. This preventative action has eliminated the risk of the bridge becoming unfit for use, with only low cost repairs now needed to strengthen the bridge to its original design. Furthermore, it has avoided BSL having to reduce the maximum axle load on the road truck which would have impacted on their metal transportation. Additional repair costs on the bridge beams and headstocks have been eliminated. Also, BSL now has a maintenance flotation platform for future pile inspections and maintenance works.

Overall, BSL saved AUD 640,000 in 2013 based on downgrading of the bridge capacity.

Who was involved?

Syed Quadri (Project Engineer) and Duncan Moorhouse (Designer).

What did we learn?

It was possible to deliver good value for money to the customer through innovation and research. Without meticulous planning and knowledge of tidal impacts, it would not have been possible to deliver the project within budget and on schedule. Though the work was done at low cost, the safety factors in design were paramount during the detail design phase.

Lilly’s Bridge Floatation Platform, Conceptual Design 14

Sharing Success Lilly’s Bridge Life Extention

Lilly’s Bridge Life Extention Sharing Success

15

Flakt Duct Failure Customer

Nyrstar Port Pirie

Name Location

Nyrstar Port Pirie Alliance Adelaide and Port Pirie, South Australia

What was the need?

The sinter plant main duct to the Flakt precipitator failed and collapsed. This failure shut down the sinter plant. This was the highest priority for the site and risked a shutdown of the blast furnace which would impact on overall production.

NWPA was asked to design and install a new support structure for the duct as soon as possible to allow production to resume.

What was the outcome and how much value did we add?

The principle contractor worked 24 hours a day over this period both on site and in the workshops, employing all resources available within the region. NWPA provided regular updates. The plant was back up and running within six days of the duct collapse.

The design had to be completed in the minimum practical time. The alliance was subsequently awarded the project to design a temporary support structure (design life of six months) and reinstate the duct with the assistance and support of site contactors.

The expansion bellow was removed and a sleeve was installed instead, wrapped with heat resistant material and coated with a high temperature sealant. A high level of detailed planning and coordination was needed as three cranes were used to move and replace the duct.

What did we do?

NWPA and contractors demonstrated exemplary safety leadership throughout the installation of the new section. There were no injuries during this project where approximately 15 personnel per shift were working.

A new duct bridge was designed to adequately support the ducting across the roadway. This had to be designed using materials that were readily available in the region to allow for immediate fabrication and installation.

The expansion bellow was removed and a sleeve was installed instead, wrapped with heat resistant material and coated with a high temperature sealant.

1) Before

Who was involved?

Dario Novak (Improve Relationship Manager), the Nyrstar alliance team: Benjamin Shunmugam (Project Leader), Amilcar Guerra (Senior Civil/Structural Engineer), Ben Fitzgerald (Construction Coordinator), Andrew Ward, Sam Hamlyn, Leith Gulin (Site Health and Safety Advisor), Bryan Jensen (Senior Officer, Contracts), James Spry (Project Manager, Project and Improve Systems), Ervin Milosic (Project Manager, Mechanical), Stephen Finn (Engineering Superintendent), Mike Tregenza (Principal Civil and Structural Engineer), Stuart Johnson (Improve Relationship Manager), Andrew Moulds (Project Manager, Engineering) and Gadaleta Steel Fabrication (Principle Contractor).

What did we learn?

2) After

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Sharing Success Flakt Duct Failure

The team found that Engineering Design Support for 3D layouts such as fabrication drawings, which is easy for the contractor to generate, aided in site planning, installation and was easily understood by everyone.

LEAN Workshops Customer

Multiple Customers

Name Location

Multiple Relationships Australia

What was the need?

WorleyParsons Improve understands the need for customers to reduce waste and improve project delivery in their operations.

LEAN exists to adapt and apply the principles of LEAN manufacturing thinking to the challenges of design, engineering and construction of capital facilities. LEAN Project Management borrows from the success of LEAN thinking, exemplified by Toyota, and challenges the basic approaches that engineers typically take for granted in organizing and executing project work.

One of the key reasons for the effectiveness of LEAN within the Improve environment is the fact that a continuous portfolio of projects behaves more like a manufacturing stream than a single large project.

What did we do?

WorleyParsons has delivered LEAN workshops to a number of our customers, project managers and contractors. We are working together with our customers across many of our Improve Relationships to streamline the portfolio management, engineering and procurement functions through LEAN transformation.

Our customers have already used LEAN tools to: • Review front end loading phases and propose process improvements that will reduce project cycle time • Introduce a LEAN information centre on-site to focus on the performance of the portfolio delivery. This visual factory reviews and monitors the KPIs for safety, customer, people and operational excellence Customers have also come back to WorleyParsons asking for LEAN value stream mapping training for their wider team on how to use this process.

Who was involved?

Sarah Bordas (LEAN Implementation Manager), Kelvin Chu (Continuous Improvement Specialist), Improve Project Managers, Improve Customers and Contractors.

What did we learn?

Customers are realizing the value of implementing LEAN based concepts and processes. By sharing knowledge and learnings across contracts, our customers can benefit greatly.

The value created from these workshops will be ongoing.

The initial workshops highlighted the importance of building a culture of stepping back and looking at how to fix problems instead of letting problems become exacerbated. This results in creating a continuous process flow in order to bring problems to the surface and make decisions by consensus, thoroughly considering all options, then implementing those decisions rapidly. This meant that waiting times, rework and overprocessing were reduced.

In many of our Improve Relationships we have already commenced travelling down the LEAN route to Portfolio and Project Management.

PEOPLE LEAN Leadership and Team Building

PROCESS Optimising Workflow

What was the outcome and how much value did we add?

By using a LEAN approach derived from these workshops, one customer’s assets under construction account balance was reduced from over AUD 30 million to under AUD 10 million.

The reduction of the assets under construction account balance is a true LEAN success story that has provided direct financial benefits to our customer.

PURPOSE True Collaboration and Dependable Planning

The LEAN process

Lean Workshops Sharing Success

17

Portfolio Management Reducing Construction in Progress Funds Customer

Tomago Aluminium

Name Location

Tomago WorleyParsons Alliance Hunter Valley, New South Wales

What was the need?

Construction in Progress (CIP) is a term used by Tomago for the value of capital work invested in plant assets during the planning and construction phases. Capitalisation can only occur once the asset is put into operation, and allows the costs associated with the asset to be removed from CIP and depreciated over the life of the asset. Typically, capitalisation did not occur until close-out of a project. If this close out process was delayed, there could be a time difference between the asset going into service, and capitalisation of the costs, resulting in lost depreciation opportunities.

In times of growth the number of active projects can grow and delivery periods extend as resources and priorities change.

Overall portfolios can be burdened with partially complete projects on hold or cancelled projects. This can lead to suspended funds in CIP that are not easily seen or recognised in day to day activity.

The ratio between CIP value and portfolio value can be an indicator of the efficiency of a company’s capital portfolio management. A CIP in the range of 50% to 70% of the yearly portfolio value would generally be the target for a wellmanaged capital system within a rolling portfolio in stable economic conditions. At its peak, CIP value has been 146% of the portfolio value at Tomago Aluminium.

What did we do?

Alliance personnel took on the task of identifying opportunities for capitalization of both Alliance and nonAlliance managed capital projects. This required a review of several hundred projects, liaising with project managers, identification and documentation of costs, and submission of the capitalization details to the Tomago Financial department.

Projects to be cancelled were also identified, with any capital costs being transferred to the operating account, reducing the CIP value. This had the additional benefit of ‘cleaning up’ the project portfolio.

What was the outcome and how much value did we add?

This has added significant value to the customer in the form of increased opportunity for depreciation or, in the case of cancelled projects, reallocation of funds to the operating account.

The hidden costs of maintaining a portfolio with a high proportion of ‘inactive’ projects and high CIP has been significantly reduced. The process also highlighted and facilitated correction of errors in the allocation of costs within the SAP and Project Management system that had occurred over time.

CIP is now used by Tomago as an indicator of the health of a portfolio. With the backlog cleared, additional processes and reporting have been developed by the Alliance, from existing databases, to manage CIP on a monthly basis, resulting in streamlined and improved ongoing portfolio management.

The focused CIP reduction effort and process improvement work was carried out using in-house resources with strong support from Tomago Finance and was done at minimal cost to the Customer.

Who was involved?

Leisa Dolan (Finance Officer), Mark Munnoch (Project Support Manager) and Brian Crossingham (Improve Relationship Manager).

What did we learn?

A healthy portfolio with reduced CIP is an indicator of good project cycle time and returns being optimized. A focused effort to reduce or minimize CIP value can also result in a leaner portfolio of projects through the timely closure or cancellation of older projects. Project reviews, portfolio reviews, cash flow and reporting are now much faster, with the team now able to focus more of their time on active projects.

The visibility of key data is important in providing the delivery team with the opportunity to add more value and make better decisions in their day to day work. By looking innovatively at existing systems and data it is possible, at little or no cost, to establish unique reporting that can add value.

The focused effort, which commenced in May 2012, resulted in CIP being reduced by 54% to date, and is now 66% of the value of the current project portfolio (down from 146%).

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Sharing Success Portfolio Management, Reducing Construction in Progress Funds

160%

140%

120%

Portfolio

100%

CIP Total as a % of Portfolio

80%

60%

40%

20%

0% Aug 2011

Oct 2011

Dec 2011

Feb 2012

Apr 2012

Jun 2012

Aug 2012

Oct 2012

Dec 2012

Feb 2013

Construction in Progress is now 66% the value of the current project portfolio (down from 146%).

Portfolio Management, Reducing Construction in Progress Funds Sharing Success

19

Material Management Improvement Customer

New Zealand Customers

Name Location

Across all WorleyParsons New Zealand relationships New Zealand

What was the need?

The material management component of a supply chain that covers the acquisition of spare parts and replacements, ordering such parts, and the standards involved in ordering, shipping and storing these parts need to be smoothly executed in order to deliver timely projects. It was found that project construction teams were experiencing delays and inaccuracies in receiving project material. This resulted in delays for contractors in fabricating goods for projects.

It then led to subsequent projects electing not to use the project stores and shipping parts direct to the fabricator, affecting many procurement processes and systems.

What did we do?

WorleyParsons worked with Construction and Project Managers to understand the customer experience they received from the stores to identify what was causing the delay. The team, along with HSE, ICT and Improvement teams, visited stores to understand the current reality. We coached and worked with stores personnel to identify the flow of material, visual management and to understand the tools required to carry out the job.

A fundamental part of this work was coaching and providing the necessary support to the stores personnel to improve their performance. The team implemented a flow for goods, signage, and location for goods that identified the current state of the goods. A visual board with current status of goods was set up and improvements were made in the material procurement system to aid information management.

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What was the outcome and how much value did we add?

The turnaround time of requests improved in stores. The turnaround time of 80% of requests was made ready for shipment within one hour instead of the previous time of more than 24 hours. Stores personnel are now engaged, highly motivated and empowered to seek improvement. The improvements also allowed personnel inspecting goods to be able to do so without interrupting stores personnel.

Improvements allowed for greater integrity in inventory management and better use of store space.

Who was involved?

Ian Ricketts (Storeman), Vern Swift (Storeman), Calum Park (Business Improvement Manager), Steve Hallsworth (Procurement Manager) and Audrey Murphy (Business Excellence Team Leader) together with all WorleyParsons employees.

What did we learn?

This improvement initiative increased safety around access to project stores and showcased the benefits in using flow and Visual Management.

The culture and respect of project teams and stores were impacted as it created an appreciation of the reality of what support personnel have to handle. This illustrated the difference that can be made for personnel when provided with necessary support and processes.

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1) Self built quarantine storage 2) Piece parts awaiting inspection 3) Inspection bench with tools 4) Visual management of items in process 20

Sharing Success Material Management Improvement

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Re-rate Calculation Productivity Improvements Customer

Multiple Customers

Name Location

Multiple Relationships Footscray, Victoria

What was the need?

Each refinery or manufacturing plant regularly undertakes hazard and operability studies (a systematic qualitative technique) to identify process hazards and potential operating problems. For each customer, what sometimes results from these studies is the need to review design conditions of equipment items.

Rather than replace the equipment item it is more cost effective to review the design of the item with a view to determining whether it can be used with the new design conditions. If necessary this can be achieved with the replacement of some minor components.

What did we do?

The Mechanical Team, led by David Sinclair at Footscray, has developed an Excel Template for Pressure Vessel Re-rates that greatly simplifies the re-rate calculation process.

Constructed so that calculations are easily adaptable, this template is capable of analysing ASME VIII and AS  1210 pressure vessels, U-Tube Exchangers, Floating Head Exchangers and Air Cooled Heat Exchangers. Being in Excel, the template self-documents the re-rate process and thereby ensures the user is always clear on how input information is being used – something that is, at times, absent in commercial packages.

What was the outcome and how much value did we add?

With this template developed, the team has greatly increased productivity when performing re-rates and has added value to customers by dramatically reducing the time required to complete re-rate calculations. With the development of this template the cost of re-rates has been cut by up to one third.

Who was involved?

The Footscray Mechanical Team.

What did we learn?

Innovation is possible in each step we deliver to our customers. The team originally gave the customer an estimate based on standards that they had previously worked on. However with this new innovation, the team was able to cut costs for several customers and potentially win more work.

Re-rate Calculation Productivity Improvement Sharing Success

21

Live Project Cashflow Review Process Customer

Tomago Aluminium

Name Location

Tomago WorleyParsons Alliance Hunter Valley, New South Wales

What was the need?

At Tomago’s site in the Hunter Valley, review of projects, in particular project cash flow, was ad hoc and time consuming.

There was insufficient information available during the reviews to enable proper assessment of the financial health of projects. This had the potential to negatively impact on project and overall portfolio performance, resulting in sub-optimal outcomes for Tomago.

What did we do?

By integrating data from the Customer’s SAP system, new functionality was added to the Project Controls Database so that relevant information could be accessed and displayed live on a single screen to enable quick confirmation of the current financial status around project plans, budgets, actual commitments and approved and forecast milestone dates.

By establishing regular live project and cash flow sessions with this increased visibility of key parameters, the impact of any changes in cash flow (annual forecast spend, overall forecast spend, etc) can be immediately assessed and validated.

Actions from each review can now also be recorded directly into the database and tracked on a project by project basis and issued to the responsible people at the completion of each session.

What was the outcome and how much value did we add?

Regular review of projects using the new functionality has provided greater visibility of status, and input from the overall delivery team has resulted in early identification of issues and opportunities (financial, technical, schedule etc) allowing more effective, immediate actions which resulted in improved project outcomes.

This also significantly increased accuracy in forecasting individual projects’ monthly, yearly and overall spends and project final cost.

Compilation of all projects within the database has provided similar improved accuracy and visibility in the overall portfolio forecast spending and outcomes.

Holding live reviews with the Alliance leadership and Project teams has also improved team communication, increased knowledge of common project issues and actions to address.

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Sharing Sharing Success Success Live Project Cashflow Review Process

In addition to providing the opportunity for the combined skills of the leadership team to be applied to project delivery and improving outcomes, coaching of individual project managers and development of a team culture has also been enhanced Tomago Aluminium now has a much clearer overview of their portfolio, enabling improved confidence in coordination and prioritization of individual projects and the ability to identify early changes in the portfolio forecast spend. It also allows the team to develop timely strategies to initiate new/standby projects to optimize value add from the available funding.

By applying innovation with existing systems and equipment the Engineering Alliance has been able to develop new processes with significant benefit without investment in new equipment, software or the need to write new programs.

All development work was carried out in-house by Alliance personnel at minimal cost to the Customer.

Tomago Aluminium recognizes this work as an example of meeting the overall challenge across their business of maximizing value at little cost from systems and data that already exists.

Who was involved?

Mark Munnoch (Project Support Manager) and Brian Crossingham (Improve Relationship Manager).

What did we learn?

Review and management of projects is more effective and efficient when the required information is readily available and in a useful and visible format, and the impact of any changes can be seen immediately.

By conducting live reviews with Alliance leadership and specialist personnel and tracking actions, there are advantages in developing overall awareness, team work and coaching opportunities for improved delivery across projects and the entire portfolio.

The ability to make earlier and better decisions regarding the overall portfolio delivery adds significant value.

Opportunities for improvement can be gained from understanding existing systems and processes and establishing ways in which their value can be released for practical use.

Financial Details Cashflow Summary

Milestones

Cashflow Details

Project Actions

A view from the Project Controls Database

Live Project Cashflow Review Process Sharing Success

23

Condenser Partial Re-Tube Customer

Griffin Energy

Name Location

Bluewaters Power Station Collie, Western Australia

What was the need?

Bluewaters Power Station consists of two 230MW coal fired units. The condenser on Unit 2 at the customer’s power station experienced tube failures as a result of ammonia attack, a form of stress corrosion that causes cracks. This affected the availability of the unit. The number of failed tubes that were unplugged was well over industry limits and potentially affected unit generation capacity during summer months. Summer is a peak time for power generation and if the customer’s unit was unable to generate at full capacity, Griffin Energy would probably need to purchase power to meet demand while operating at a loss.

The project team needed to change out 9,600 tubes in areas where previous electrical eddy current testing had shown ammonia attack was likely to occur. This was usually in and around the air extraction zone tube bundles. All tube expansions needed to be subjected to vacuum testing as well as expansion dimension measurements on prescribed tubes.

What did we do?

TWPS provided project management and site management services including quality control. Detailed planning with each of the subcontractors was carried out leading up to the planned outage. A quality management plan was created to make sure all 19,200 tube expansions were completed to the required standard and tested. Several alternative plans were also prepared to allow a reduced scope in case unexpected circumstances make it unfeasible to complete the entire project in the 21 day outage.

What was the outcome and how much value did we add?

The completed works lowered the risk of the unit running at reduced capacity in the summer months. The team delivered the work inside the 21 day planned outage period. This meant working 24 hours a day to complete the project. The recommissioning of the unit was possible without delay, all work was completed and the successful flood test was achieved one day ahead of schedule.

Who was involved?

John Foster (Improve Relationship Manager), Ken Wakeling (Downer Mechanical Engineer), site quality assurance work was carried out by Nam Do (Mechanical Graduate) and Alyssa Nixon Lloyd (Mechanical Graduate).

What did we learn?

This project was delivered successfully due to the attention to detail given to planning tasks and the selection of a highly competent subcontractor. The high level of cooperation and communication between TWPS and Downer Engineering resulted in a motivated site team who understood the challenges and applied the commitment necessary to achieve common project goals of zero safety incidents, return to service ahead of schedule and on budget.

A final flood test was also conducted to demonstrate the integrity of the completed work.

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1) Tube removal operations 2) Quality Control, Alyssa Nixon Lloyd and Nam Do testing expansions 3) Tube removal at night 24

Sharing Success Condenser Partial Re-Tube

Site works team Condenser Partial Re-Tube Sharing Success

25

Learning from Lessons Recorded Customer

Tomago Aluminium

Name Location

Tomago WorleyParsons Alliance Hunter Valley, New South Wales

What was the need?

As a standard part of project delivery, a review was carried out to identify what went well and where there where opportunities for improvement. These are recorded in a Lessons Learnt database. However, there is the potential for these recorded lessons to be forgotten and mistakes repeated, or the failure to repeat good initiatives. The sheer volume of lessons can overwhelm team members when seeking best practice examples. This can result in a negative impact on project outcomes and reduces the value of the Lessons Learnt process.

What did we do?

In order to move from what was a ‘Lessons Recorded’ process to a ‘Lessons Learnt’ culture, regular reviews of the Lessons Learnt Database are carried out to identify high value items, trends and opportunities considering the following: • HSE risk level • Potential cost/schedule impact • Frequency the issue arises • Relevance to current or future projects • Alignment with customer business drivers This review allowed for the clarification of the details of the lessons learnt and distilled them down into the key learnings that will add value and improvement across the portfolio and for wider communication.

The key points of each high value item are then documented on a single page template and displayed on a dedicated Lessons Learnt board in public area. They can also then be reviewed during project reviews, team meetings, tool box talks, etc. The leadership team also deploys and uses these in discussions and project meetings.

What was the outcome and how much value did we add?

The review and communication process proved to be an efficient way of distilling the large amount of information in the Lessons Learnt Database into key learnings and presenting in a way that is meaningful and accessible to the team.

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Sharing Success Learning from Lessons Recorded

Rather than focusing on individual events on individual projects, this process provides for focus on themes and trends in projects which can be easily understood and applied. For example, there were a number of projects where baseline performance of equipment and processes was not understood by the customer and the project team at the start of a project – this made it difficult for the project to determine and demonstrate if improvements actually were made. From these various project reviews and comments, we were able to develop a lesson learned around the need for, and value of, base-lining process information.

The information does not identify specific projects or people, so it is more generic and accepted by the team – it is also suitable for distribution to the customer. This can also facilitate better communication of Lessons Learnt across different WorleyParsons sites.

Who was involved?

Brian Crossingham (Improve Relationship Manager), Andrew Patey-Dennis (Safety Advisor) and Mark Munnoch (Project Support Manager).

What did we learn?

There is no benefit in recording lessons if they are not used effectively and become lessons learnt – they become missed opportunities. Distilling the data recorded into a more general format that does not specifically refer to people or individual projects leads to higher levels of acceptance by the team. This format also opens the opportunity for greater communications across WorleyParsons.

This process also brings the Alliance leadership into closer contact with the detail of delivery of the project portfolio and opportunities for improving overall efficiency – whether in the Alliance team or the customer’s organization.

The real value add of this approach to taking lessons recorded to lessons learnt is in the way it unlocks the data contained in lessons databases and makes it more valuable as information to be applied in delivery.

Continual improvement through the application of lessons learnt that is easily communicated and understood improves project outcomes, adds value to our customers and enhances WorleyParsons reputation as a quality provider of engineering services.

Demineralisation PLC Upgrade Customer

Qenos

Name Location

Qenos WorleyParsons Strategic Alliance Altona, Victoria

What was the need?

At the Qenos Olefins Plant, obsolesce of a Modicon Programable Logic Controller (PLC) necessitated migrating the operation of the Demineralisation Plant to another control system. The project required integration of the PLC program and field instrumentation through a Honeywell High-Performance Process Manager (HPM) controller.

What did we do?

Operational limitations meant that production of filtered water through the Demineralisation Plant during the project implementation needed to be sustained. To achieve the project objectives the following activities were performed: • Online partial cut-overs to HPM controller with minimum disruption to normal process operation • Dividing the plant process into segments via program implementation to allow for better maintainability and execution in the HPM • Transition of field wiring loops (200+) and PLC ladder logic program to the HPM • Balancing power and communications fed to both control systems run in tandem during cut-over

What was the outcome and how much value did we add?

The project team achieved the following outcomes: • No loss to production of filtered water during seamless cut-over

The project team identified the following value add initiatives during the project execution: • Using spare capacity in existing HPM ensured financial and infrastructure cost savings • Comprehensive communication pathway and synergies between the project team ensured design intent was satisfied safely, timely, accurately and simplified complex technical challenges • Strengthened team partnership executed the scope to schedule and within budget through the management practises jointly executed by Qenos, WorleyParsons and Honeywell

Who was involved?

James Balfour (WorleyParsons Project Manager/Engingeer), David Kelly (Qenos Project Manager/Engineer), Kyoung Soo Min (Honeywell Engineer), Rene Wijnen (Qenos Lead Engineer) and Geoffrey Constable (WorleyParsons Alliance Manager).

What did we learn?

For this type of project, it is essential that programming resources are involved early in the design development phase. This helps avoid any reinterpretation and exhausting of budgets. The benefits can be seen when addressing limitations of the control systems, system loading, testing requirements and final product quality.

Openness and effective communication between project members with regards to scope, budget and execution will ensure quality in project objectives is achieved.

• Retention of existing control functionality through transformation of PLC ladder logic to HPM functional logic points and programming code (CL/HPM) • Improvement to demineralisation process sequencing based on operations experience and plant legacy • Provision for future expansion, modification and refinement through the HPM to the Demineralisation process

Qenos Demineralisation Plant Demineralisation PLC Upgrade Sharing Success

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Vale Goro New Caledonia site 28

Sharing Success Milestone in Safety

Milestone in Safety Customer

Vale Nouvelle Caledonie

Name Location

Vale Nouvelle Caledonie, Integrated Services Relationship Goro, New Caledonia

What was the need?

Safety is paramount in Vale’s large and complex operation in Goro, New Caledonia. The site stretches over 22 hectares on the Goro Plateau and extracts nickel from crushed ore slurry by high pressure acid leaching. Ore is mined adjacent to the refinery site and pumped to the refinery for processing. The final nickel is shipped from the established port facilities at the Bay of Prony adjacent to the refinery.

Transfield Services WorleyParsons New Caledonia (TSWNC) workers deal every day with safety hazards such as vehicle interactions, heat, pressure, chemicals, working at heights, confined spaces and lifting objects. Add to all this the complications of communications in French and English, and it makes for a complex safety challenge.

What did we do?

Our team built a wide range of initiatives into daily operations and encouraged practices to strengthen the site’s safety culture. This included all team members taking five minutes to stop and consider their work situations if there is any doubt or concern about safety; ‘If in doubt, stop and ask!’.

Robust training programs including job-start, stop work authorization cards, mandatory safety rules, a leadership commitment program, skills development plans, internal awareness training on specific risks and implementation of safety processes were all delivered to workers on this site.

All workers were asked and encouraged to look out for one another and actively promote a strong safety culture.

What was the outcome and how much value did we add?

This high commitment to safety allowed TSWNC to reach the equivalent of 500,000 work hours incident free.

As of June, the TSWNC team at Vale Goro’s nickel refinery in New-Caledonia achieved 19 months without a recordable injury which meant zero medically treated injuries and zero lost time injuries. They are currently on target to reach the next goal of two years.

This milestone is proof that our management system is strong and that we are building a safety culture within our teams. The achievement is particularly impressive when considering the challenging work conditions on site. The team is dedicated to working hard to ensure these safety results continue.

Who was involved?

Christian Peytavin (General Manager) and Gilles Sennes (HSER Manager, Vale). The team of 200 made up of 96% local employees includes electrical, instrumentation and mechanical trade people, together with supporting safety, quality, planning and administrative staff. This number also includes three local subcontractor companies for industrial maintenance and scaffolding.

What did we learn?

Achieving such a result is not just an objective, but the first step in achieving no injuries to anyone at any time.

Only a real safety commitment from the customer and our people, inspired and encouraged from top management to field operators can ensure this result. It is important that all parties work together collaboratively. The strong commitment and value coming from both sides and placed on safety is responsible for this great result.

Milestone in Safety Sharing Success

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Risk Management Process Key to Transformer Delivery and Assembly Success Customer

Tomago Aluminium

Name Location

Tomago WorleyParsons Alliance Hunter Valley, New South Wales

What was the need?

Tomago Aluminium had placed an urgent order for a new HV Transformer that was required to provide redundancy in its HV Switchyard. This equipment needed to be transported to site and erected as quickly as possible without delay, incidents, damage and most importantly, done safely.

What did we do?

The Alliance established an integrated team and introduced WorleyParsons risk management processes and procedures to this new scope as a core management tool. A number of works were developed and executed which included: • Review of customers; proposed contractor management strategy and established the risk level and requirements required to ensure a safe outcome from the pre-selected vendors and subcontractors • Development of a total project Risk Management Plan to enable safe delivery of the project. From this plan a central action list was developed for the project and recorded in an electronic action tracking system. This tool was then used to track the progress of tasks including the organization of site inductions, development of safe work method statements and job safety analysis forms and resource planning to cover 24 hour work schedules.

• The risk management process highlighted the contractors engaged by Tomago were new to the site – the team developed construction safety packs to ensure they were appropriately briefed and well prepared to meet Tomago and WorleyParsons site conditions and induction requirements.

• The integrated team completed unloading and placement of a 90 tonne transformer over one weekend involving over 20 personnel that had not been on site before. This included a new method of lifting the transformer that delivered significant time savings.

What was the outcome and how much value did we add?

The transformer was safely delivered to the site, erected within the planned two weeks and made available with no safety issues or damage to plant. The use of a risk management plan and action tracker helped focus the project on the right tasks and was seen by the customer as contributing to the project’s success.

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Sharing Success Risk Management Process

The use of the WorleyParsons Risk management tool and process was a significant factor in team building. The vendor and subcontractors delivered all of their works and showed a willingness both to contribute and to learn from the additional WorleyParsons and Tomago requirements/ experience. This assisted the progress of the works and enabled their personnel to add value to the risk assessment activities undertaken throughout the project. The integrated team also gained experience in new methods and handling techniques introduced by the contractors Key learnings were identified throughout the project and these are now being incorporated in the planning of the next set of HV installation works to be undertaken between June and September of this year. This has also assisted the development of the risk management plans associated with this work and reduced its complexity. Tomago is confident in the Alliance’s ability to safely deliver its large HV portfolio of more than AUD 30 million over the next three years. This has also enabled the customer to rebalance its team members and focus more on other business needs.

Who was involved?

Louis Swart (Senior Engineer, Electrical, Engineering), Mick Byrne (Construction Engineering Manager, Engineering), Andrew Patey-Dennis (Environment Health and Safety Advisor), Ian Moore (Construction Coordinator, Engineering), Charlie Sanders (Electrical Construction Coordinator, Engineering), John Garroway (Principal/Lead Engineer, Electrical, Engineering), John Finch (Safety Advisor, Construction/Maintenance), Leigh Shirley (Principal/Lead Engineer, Mechanical, Engineering), Chris Harper (Electrical Engineer), Ross Alstom (Tomago Project Owner), Edi Payrleitner (Tomago Substation Supervisor), Aaron Arthur (Project Manager, Engineering) and Brian Crossingham (Improve Relationship Manager).

What did we learn?

Using WorleyParsons’ risk management processes and procedures significantly added to both project team building and project delivery. Expertly facilitated risk reviews provide a platform for people to come together with a common aim, and expands project knowledge very quickly. By establishing rigor around this process and focusing on safety and project risks, teams effectively fast tracked projects and delivered successful outcomes. A contractor management strategy is also useful in early phases. It allows contractor risks to be identified prior to order placement and mitigation steps incorporated if required.

The Tomago Project Owner was very involved in this process and commented in his project report: “A project team from Worley Parsons has been engaged to manage the arrival and assembly aspects of the project. They are doing a great job in identifying potential project risks (safety, quality, cost, and timing) and will continue to keep the project on track.�

- Ross Alston , Senior Electrical Engineer, Tomago Aluminium

Risk Management Process Sharing Success

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Improve Sharing Success 2013

If you have an idea, innovation or achievement you would like to share with your colleagues through this publication please contact: sharingsuccess@worleyparsons.com