Why Shutdowns, Turnarounds, and Outages (STO) Often Fail

Shutdowns, turnarounds, and outages (STOs) are critical processes in the lifecycle of industrial facilities, particularly in sectors such as oil and gas, manufacturing, and power generation. These events are designed to maintain, upgrade, or repair equipment and systems to ensure safe and efficient operations.

However, despite stringent planning, a staggering 90% of STO projects fail to meet their objectives, with many experiencing significant cost overruns and schedule delays.

From the above backdrop, this blog will explore the reasons behind these failures and suggest strategies for improvement.

Shutdowns, Turnarounds, and Outages (STO)

What is STO?

STO refers to planned events where a facility is temporarily taken offline for maintenance or upgrades. These events can involve extensive activities ranging from routine inspections to major overhauls.

For example, an oil refinery may experience a turnaround every few years to replace aging equipment, upgrade technology, and ensure compliance with safety regulations. In the course of such an event, thousands of tasks may need to be completed within a tight timeframe to minimize downtime and financial losses.

Top Reasons Why STOs Fail

Now that we know what STO comprises of and its significance in the maintenance lifecycle, let’s explore some top reasons why STOs fail:

1. Poor Scope Management

One of the most common reasons for STO failures is scope creep, where additional tasks are added after the project scope has been defined. This can cause considerable delays and budget overruns as teams struggle to accommodate new work that was not initially planned.

2. Improper Planning

Many STO projects suffer from insufficient planning. A lack of detailed procedures and contingency plans can result in unexpected challenges that derail the timeline. Studies indicate that three out of four shutdowns go off schedule within the first week, often due to overlooked details.

3. Unplanned Emergency Tasks

Unplanned issues often crop up during inspections that require immediate attention. While some urgent work may be unavoidable, failing to anticipate potential problems can lead to significant disruptions in the planned schedule.

4. Poor Communication

Effective communication is crucial throughout the STO process. Miscommunication among team members can lead to misunderstandings about roles, responsibilities, and progress updates. This results in delays and increased costs.

5. Labor Shortages

Currently, every industry faces shortage of skilled labor and issues related to timely procurement of parts. This becomes a major challenge for teams to seamlessly collaborate and execute their plans effectively. Additionally, due to these issues, it becomes difficult to respond promptly to unexpected problems during an outage.

Also Read: How to Improve Asset Maintenance Strategy

Key Strategies to Handle These Failures Effectively

Let’s assume you have a big industrial facility, say a cement plant where you have planned an STO activity to ensure your equipment is up and running, while complying with the necessary security protocols. To mitigate the risks associated with STO failures, you can adopt the following strategies:

1. Plan in Advance

Invest time in detailed planning that includes risk assessments and contingency measures for potential emergent work. Historical data should guide estimates for duration and resource allocation.

2. Implement strict scope management practices

Implement strict scope management practices to prevent scope creep. Establish clear guidelines for what constitutes necessary work during an STO and adhere strictly to these parameters.

3. Improve Communication

Foster an environment of open communication among all stakeholders involved in the STO process. Regular updates on progress should be shared across teams to ensure everyone is aligned.

4. Leverage Technology

Leverage advanced technologies such as digital twins or integrated management software that offer real-time insights into project status and resource availability.

5. Invest in Training Programs

Invest in training programs for staff to ensure they are equipped with the necessary skills and knowledge to handle their responsibilities effectively during an STO.

Explore: How AI Is Transforming Industrial Plant Maintenance

Role of STO Software in Implementing Best Practices

The use of specialized STO software has become increasingly vital in managing shutdowns effectively. The key takeaways that you can accrue by adopting such a software solution include:

  • Centralized management: This solution offers a single platform for managing all aspects of an STO event—from planning through execution. This ensures that your team members have access to the same information.
  • Data Analysis Capabilities: Advanced analytics tools help your organization to track historical performance data, identify trends, and make informed decisions based on past experiences.
  • Improved Visibility: Real-time dashboards allow managers to monitor progress against timelines and budgets, facilitating quicker adjustments when issues arise.
  • Resource Optimization: By integrating with your existing enterprise resource planning (ERP) systems (Oracle or SAP), STO software helps optimize resource allocation. This way the right personnel and materials are available when required.

Based on the above takeaways, look for a solution that meets your specific organizational requirements, while providing a seamless platform to efficiently manage your STO activities. For instance, a mobile enterprise asset management (EAM) solution offered by Propel Apps ticks all the right parameters to meticulously plan, organize and collaborate your STO activities effectively.

This mobile EAM solution transforms plant maintenance and asset management operations using Oracle EAM, SAP Plant Maintenance, design thinking, and enterprise mobile implementations. To know more about this solution and how it can help enforce best practices in your STO process, schedule a free demo with us.

Final Words

The complexities involved in STO make them inherently risky endeavors for any organization. However, by understanding the common pitfalls—such as poor scope management, inadequate planning, emergent work challenges, poor communication, and labor shortages—companies can implement strategic measures to enhance their chances of success.

Embracing technology through dedicated STO software can further streamline processes and improve outcomes significantly. Ultimately, with better management practices in place, organizations can achieve substantial improvements in safety, cost efficiency, and operational reliability during their shutdowns and turnarounds.

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