How Most Companies Are Struggling with Their Shutdown Turnaround Optimization Programs

Shutdown Turnaround Optimization Programs are critical in manufacturing, oil and gas, and power generation industries. These programs are intended to optimize equipment maintenance and repair schedules and minimize downtime. Yet, despite the best intentions, many companies need help implementing, resulting in costly delays and operational inefficiencies. In this article, we explore the challenges companies face, along with real-world examples, and support our discussion with relevant data.

The Importance of Shutdown Turnaround Programs

Shutdowns and turnarounds are among asset-intensive industries’ most expensive and labor-intensive activities. An effective program ensures minimal operational downtime while maintaining safety and compliance. However, many companies need help optimizing these programs, leading to increased costs, extended timelines, and sometimes even safety incidents.

A study by Aberdeen Group found that 82% of companies had experienced unscheduled downtime in the last three years, with 70% citing equipment failure as the cause. Furthermore, the average cost of unplanned downtime across industries was estimated at $260,000 per hour, highlighting the financial risks of inadequate processes.

Common Challenges in Shutdown Turnaround Optimization

1. Inadequate Planning and Scheduling

One of the biggest obstacles is poor planning and scheduling. Many companies must allocate more time for detailed planning, often underestimating the complexity and time required to inspect, repair, and replace equipment.

For example, in 2018, Valero Energy Corporation experienced a 35-day turnaround at its Houston refinery, nearly double the originally planned 20 days. The company cited inadequate initial assessments of the scope of repairs needed as a critical factor in the delay.

2. Lack of Skilled Workforce

Skilled labor shortages are another significant hurdle. Industries like oil & gas and manufacturing often need help finding experienced maintenance and reliability professionals who efficiently execute complex turnaround tasks.

According to a survey by Petrochemical Update, 62% of refinery operators reported difficulties in sourcing skilled workers for turnarounds, with labor shortages contributing to project delays and inflated costs. Shell Oil encountered this issue in 2020 when a lack of qualified personnel during a planned maintenance shutdown at their Convent refinery led to delays and cost overruns.

3. Poor Communication and Collaboration

Successful turnaround programs require coordination across multiple departments—engineering, maintenance, procurement, and safety teams. However, poor communication often leads to misalignment, redundant work, or safety hazards.

A case in point is the Chevron Refinery in Richmond, California. During a 2012 turnaround, poor communication between the planning and maintenance teams resulted in missing parts, repeated task rescheduling, and several safety concerns that nearly led to accidents.

4. Overreliance on Outdated Technology

Many companies still need to rely on updated tools, such as spreadsheets, for scheduling and tracking progress during shutdowns. This lack of real-time data hampers decision-making and delays project adjustments, contributing to inefficiencies.

Research by McKinsey & Company showed that companies using manual methods for turnaround planning experienced up to 20% longer project durations than those utilizing advanced planning tools, such as AI-based scheduling software.

Strategies for Successful Shutdown Turnaround Optimization

Despite the challenges, companies can take steps to improve their shutdown turnaround optimization efforts:

1. Advanced Planning Tools: Implementing digital tools for real-time planning, scheduling, and tracking can significantly enhance project efficiency. For instance, Dow Chemical reduced turnaround times by 30% after implementing digital solutions that provided real-time tracking and predictive analytics.
2. Training and Workforce Development: Investing in training programs to upskill workers and partnering with external specialists can help address labor shortages and improve the quality of work during turnarounds.
3. Collaborative Planning: Establishing cross-functional teams early ensures better coordination between departments. This collaborative approach has helped companies like BP improve their turnaround efficiency by 15% across their refineries globally.
4. Predictive Maintenance: Leveraging predictive maintenance tools can help companies address equipment failures before they escalate, reducing the likelihood of unscheduled downtime during shutdowns. General Electric (GE) implemented predictive maintenance across its manufacturing facilities and reported a 25% reduction in equipment-related downtime.

Conclusion

While shutdown turnaround optimization programs are crucial for operational efficiency, many companies continue to need better planning, labor shortages, and outdated technologies. However, as more companies embrace digital solutions, predictive maintenance, and collaborative planning, the potential to reduce downtime, improve safety, and lower costs becomes increasingly achievable.

By adopting best practices and learning from industry leaders, companies can transform their STOP strategies and turn challenges into opportunities for growth.

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References

• Aberdeen Group: Data on downtime and cost implications.
• Valero Energy Corporation: Example of turnaround challenges.
• Petrochemical Update: Survey on skilled labor shortages.
• Chevron Refinery: Example of poor communication impacting turnaround success.
• McKinsey & Company: Impact of technology on turnaround times.
• Dow Chemical: Example of successful turnaround improvements using digital tools.
• BP: Turnaround efficiency improvements through collaboration.
• General Electric (GE): Success with predictive maintenance in reducing downtime.