1. BASF´s MODEL of EXCELLENCE for TURNAROUND SCOPE MANAGEMENT
Raúl Sánchez Martín
BASF SE

2. Scope Management
Raúl Sánchez on duty
More than 15 years experience at BASF in Europe (Spain – Belgium – Germany) in Capital Projects, Maintenance & TAR Management
Since 2009 harmonizing Turnaround Management Process at BASF
Sales 2009: €50,693 Million
Employees at year-end 2009: 104,779

3. BASF at a glance BASF is the world´s leading Chemical Company
Scope Management
BASF at a glance
BASF is the world´s leading Chemical Company
Offers intelligent system solutions and high-value products for almost all industries
The unique Verbund concept is key to our strategy
Petrochemicals are the heart of the Verbund
Their major role is to provide reliable and secure supply for the most important value chains of BASF
Products used in all BASF divisions apart from Oil&Gas
Sales 2009: €50,693 Million
Employees at year-end 2009: 104,779 3

4. BASF at a glance Scope Management 4 Sales 2009: €50,693 Million
Employees at year-end 2009: 104,779 4

5. BASF´s Verbund principle
Scope Management
BASF´s Verbund principle
BASF is the world´s leading Chemical Company
Offers intelligent system solutions and high-value products for almost all industries
The unique Verbund concept is key to our strategy
Petrochemicals are the heart of the Verbund
Their major role is to provide reliable and secure supply for the most important value chains of BASF
Products used in all BASF divisions apart from Oil&Gas
Sales 2009: €50,693 Million
Employees at year-end 2009: 104,779 5

6. BASF´s Verbund principle
Scope Management
BASF´s Verbund principle
Advantage* Lu of 500 Mio €/a:
Logistics: 300 Mio €/a
Energy integration: 150 Mio €/a
Infrastructure: 50 Mio €/a
* Compared to 70 single sites with same production
Verbund provides competitive advantages because it represents more than simple integration. It represents entire interlocking value chains, from chemical building blocks produced primarily for BASF use to cyclically resilient specialty and fine chemicals that offer higher returns.
Linking production plants, research units, customers and the environment is the central principle of the Verbund. Its six Verbund sites make BASF worldwide competitive. Ludwigshafen is BASF's biggest Verbund site
Production site: since 1865
Production area Ludwigshafen site: 10 sq km
Plants: more than 160 production plants, two steam crackers, 3 CHP power plants, 1 wastewater plant
Sales: 8.5 million metric tons of sales products per year
Daily site traffic: 21,000 vehicles on Ludwigshafen site
Buildings: approx. 2,000
Products: inorganics, petrochemicals and chemical intermediates, human and animal nutrition, raw materials for cosmetics, aroma chemicals, pharmaceutical and agricultural products, plastics, performance chemicals and polymers
Storage capacity: 100,000 metric tons packaged chemicals (8- fold handling/year) in Europe’s most modern chemical logistics center
Handling capacity: approx. 300,000 containers per year, the region’s most efficient intermodal transport terminal
Overground pipes: 2,000 km (from Ludwigshafen to Seville)
Cables: 3,900 kilometers
Road: 115 km (from Ludwigshafen to Strasbourg)
Rail: 213 km (from Ludwigshafen to Bonn)
Riverbank facilities along the Rhine: 6 km
Inland port of Ludwigshafen North: BASF handles more than 40 percent of total goods here
Anknüpfung Chemikalien: Verwerten und Versorgen – Schließen von Stoffkreisläufen zur Maximierung der Wertschöpfung
-> Spezielles Beispiel: Steamcracker
“They pump in natural gas, oil and salt at one end,
make everything and the byproducts are recycled.
There is very little actual waste.”
The Times, Nov. 1998 6

7. Presentation focus BASF´s Scope Management process
Turnaround scope management types
Key to improve: Ownership
Common mistakes & other challenges 7

8. The Matrix Columns: 6 TAR Phases Rows: 10 TAR Themes >100 Items
Scope Management
The Matrix
Columns: 6 TAR Phases
Rows: 10 TAR Themes
Strategic
Planning
Conceptual
Planning
Basic
Planning
Detail
Planning
Execution
Post-SD
Fundamentals
Scope Mgmt Plan
Scope Criteria
Scope Collection
Scope Dev.
Scope Synchr.
Scope Challenge
Scope Freeze
Scope Change
Mgmt
SD Scope Mgmt
Remaining Work
Scope Management
>100 Items
Scheduling
Cost Management
EHS-Q Management
Kick-Off Meeting
Milestone Plan
Scope Freeze
Detail Work Planning
and many more...
Organization
Communication & Meetings
Logistics
Procurement
Work Execution 8 8 8
INTERN
INTERNALINTERNAL

9. BASF´s Scope management process9

10. Scope criteria Unacceptable environmental impact
Scope Management
Scope criteria
Unacceptable environmental impact
Unacceptable safety impact
Unacceptable reliability impact
Unacceptable financial impact
if not performed 10

11. Scope Collection Scope Owner Scope list format & responsible
Scope Management
Scope Collection
Scope Owner
Scope list format & responsible
Standard for Scope description
Preliminary Scope list 11

12. Scope Development & Challenge
Scope Management
Scope Development & Challenge
Scope Overview & Benchmark
Scope items classification
Validity of defined Scope criteria
Check mandatory Scope
Justify non-mandatory Scope
Scope Challenge results
Documentation Scope Challenge
Meetings for Scope discussions
Scope evolution
Experience & best practices
Techniques to optimize Scope
Master Scope list 12

13. Scope Freeze Date depending on Scope Type 8 to 12 months in advance
Scope Management
Scope Freeze
Date depending on Scope Type
8 to 12 months in advance
It is frozen but still alive 13

14. Scope Change Management
Scope Management
Scope Change Management
Late Scope, Additional Repairs and Discovery Work
Balance: flexibility and control
Different authorization levels
Scope Change ≠ Change Order
Agility: Crash Team 14

15. BASF´s Scope Management process
CHANGE
MGMT
CRITERIA SC S
SCOPE
SCO
SCOP
FREEZE
COLLECTION
CHALLENGE 15

16. Turnaround Scope management types16

17. Scope Management
“I want it all” 17

18. Scope Management
“One vision” 18

19. Scope Management
“Under pressure” 19

20. Scope Management
“We will rock you” 20

21. Scope Management
“We are the champions” . 21

22. But, are we the champions?
Scope Management
But, are we the champions? 22

23. And what about you? 1. Scope Criteria approved and communicated?
Scope Management
And what about you?
1. Scope Criteria approved and communicated?
2. Clear definition of how detailed the scope should be to allow the planners to know what to do?
3. Method to challenge in a open and objective way in accordance with approved criteria?
4. Early Scope Freeze to enable the work preparation to be completed in due time?
5. Procedure to add scope during execution: late scope, discovery work, additional repairs? 23

24. Key to improve: Ownership
Scope Management
Key to improve: Ownership 24

25. Scope Management
Scope Owner 25

26. Evaluating Risks Wrong IN the scope Right OUT the scope
Scope Management
Evaluating Risks
Wrong IN the scope
Right IN the scope
Right OUT the scope
SCOPE …
Wrong OUT the scope 26

27. Risk Assessment Matrix
Scope Management
Risk Assessment Matrix 27

28. Scope Change Gatekeeper
Scope Management
Scope Change Gatekeeper 28

29. Scope Change Management
Scope Management
Scope Change Management 29

30. Opportunity to add value
Scope Management
Scope Changes Impact
Decreasing Opportunity
Planning
Execution
Opportunity to add value
Increasing Cost
Cost to Change 30

31. Common mistakes & other challenges
Scope Management
Common mistakes
& other challenges 31

32. Scope Management
Pre-SD Scope Overflow 32

33. Uncontrolled Project Scope
Scope Management
Uncontrolled Project Scope 33

34. Improvisation paradox
Scope Management
Improvisation paradox 34

35. Communication breakdowns
Scope Management
Communication breakdowns 35

36. Scope Management
In a nutshell… 36

37. … don´t forget that SCOP S SCOPE SCO SC CHANGE MGMT CRITERIA FREEZE
Scope Management
… don´t forget that
CHANGE
MGMT
CRITERIA
SCOP S
SCOPE
SCO SC
FREEZE
COLLECTION
CHALLENGE 37

38. Scope Management
… and to 38

39. Scope Management
Any questions? 39

40. Thanks for your kind attention
Scope Management
Thanks for your kind attention 40

41. Raúl Sánchez Martín
BASF SE

42. Some very good references
Scope Management
Some very good references
and other stuff 42

43. Biblio, Video & Audiography
Scope Management
Biblio, Video & Audiography
To read:
Turnaround Shutdown and Outage Management, Tom Lenahan, Elsevier, 2006
Managing Maintenance Shutdowns and Outages, Joel Levitt, Industrial Press, 2004
World-Class Turnaround Management, A.Bobby Singh, Everest Press, 2000
Proven turnaround practices, R. J. MOTYLENSKI, Hydrocarbon Processing, April 2003
To watch:
To listen:
I want it all (1989, The Miracle, written & produced by Queen)
One vision (1985, A Kind of Magic , written & produced by Queen)
Under pressure (1981, Hot Space, written & produced by Queen & D.Bowie)
We will rock you (1977, News of the World, written by B.May, produced by Queen)
We are the champions (1977, News of the World, written by F.Mercury, produced by Queen, assisted by M.Stone) 43

44. Image´s sources Scope Management 44 Raúl Sánchez
BASF - The Chemical Company
Alexis O’Connor (Flickr - Creative Commons)
Patrick Hoesly (Flickr - Creative Commons)
Estampa Tamarindo
pfctdayelise (Flickr - Creative Commons)
roblisameehan (Flickr - Creative Commons)
richard winchell (Flickr - Creative Commons)
MinilmalistPhotography101.com (Flickr - Creative Commons)
MP Bumsted, Biocultural Science & Management (Creative Commons)
Dricker94 (Flickr - Creative Commons)
Queen (
BluEyedA73 (Flickr - Creative Commons)
migothlaundry (Flickr - Creative Commons)
robert van der Steeg (Flickr - Creative Commons) 44

45. Image´s sources Scope Management 45
Sam Beebe / Ecotrust (Flickr - Creative Commons)
zimpenfish (Flickr - Creative Commons)
Iiz west (Flickr - Creative Commons)
Raúl Sánchez
Johnathan Nightingale (Flickr - Creative Commons)
Brenda Clarke (Flickr - Creative Commons)
BASF - The Chemical Company
Estampa Tamarindo
Christian Köberl (Flickr - Creative Commons)
El Bibliomata (Flickr - Creative Commons)
Nicu Buculei (Flickr - Creative Commons)
The National Guard (Flickr - Creative Commons)
Technoloic (Flickr - Creative Commons)
Steffen Zahn (Flickr - Creative Commons)
A.Ruesga (Flickr - Creative Commons)
Colin Kinner (Flickr - Creative Commons)
Tambako The Jaguar (Flickr - Creative Commons)
Herry Lawford (Flickr - Creative Commons) 45

46. Raúl Sánchez Martín
BASF SE