BP Whiting Refinery Capital Projects Group

“Implementing Lean Construction Methodsat the Whiting Refinery”

LCI CongressOctober 24, 2013

The Whiting Refinery

•City of Chicago

BP Whiting Refinery

Our daily environment…

• Process over 400,000 barrels of crude per day

• Annual Capital Investment approximately $400 million

• Majority of our construction is “revamp” on live operating units

• 20+ active construction job sites

• 700 – 1000 craftsmen on site each day

Big place…difficult environment…many reasons to perform poorly!

Our problem…

• Historical construction delivery extremely inefficient

• On average it would cost our site 38% more to deliver a project versus peers within petrochemical industry

• No pre-planning occurred

• Construction Planning was “ad-hoc”

• Repeated start/stop cycles for work crews

• Capital Projects Group had not hit annual spend target in over five years

We had to do something different!

What did we do? Our Lean journey begins…

• Began researching “LEAN” in 2010• Sought buy-in from BP leadership and stakeholders• Sought buy-in from contractor partners • Attended LCI Congress in 2011• Constructability involvement early in design• Started using “make work ready” tool and weekly work plans

on all construction projects in 2012• Pull Planning was missing…added this element in 2013• Measure performance through PPC and Earned Value

Our goal is to set a new industry benchmark!

Pull Plan Meeting

Pull planning output example…

Work crews using pull planning output in the field

Measuring performance… (Weekly One-Pager)

Earned Value

PPC

Seeing results across the board…

• Capital Projects Group hit spend target in 2012 and on track to hit it this year!

• Since implementing Last Planner System we have seen approximately 17% improvement in Schedule Performance Index

• Seeing average PPC’s of 74%

The following project examples tell the story…

Process sewer install: $4M estimate; $2M actual

Process sewer install: $4M estimate; $2M Actual

Piping revamp on Cat Cracking Unit ($26M TIC): dramatically behind schedule until pull planning

Location of F33 & F57 Vessels

F33 Vessel

F57Vessel

Piping revamp on Cat Cracking Unit ($26M TIC): dramatically behind schedule until pull planning

Piping manifold project ($32M TIC): Early constructability input changed design

Piping manifold project: Early constructability input changed the design

Piping Manifold Project: One of 14 Pre-Fabricated Modules…

New Fire Station Building ($24M TIC): Our first IPD Project

New Fire Station Building ($24M TIC): Our first IPD Project

So what’s the big deal?

• Established consistent approach for every job

• Paradigm Shift - overcome “the old way of doing things”

• Selling Lean to internal stakeholders requires diplomatic education

• World Class Safety Performance OSHA RIF = 0.20

“A well planned job is a safe job!”